Subsequent amendments can’t re-open concluded proceedings; 16 yrs re-assessment time-limit, prospective

Delhi HC quashes re-assessment initiation for AY 1998-99 on assessee-individual (who was non-resident for subject AY), as it was barred by limitation u/s. 149; Relying on assessee’s statement during search that he had settled an offshore trust, AO had issued notice u/s 148 in March, 2015 thereby proposing to tax the amount of US $ 2-3 million contributed by assessee for settling a trust in foreign country; Notes that assessment for subject AY could not be reopened beyond March 31, 2005 in terms of provisions of Sec 149 as applicable at the relevant time; Clarifies that the subsequent amendment by Finance Act, 2012, which extended the limitation to sixteen years, could not be resorted for reopening concluded proceedings (in respect of which limitation had already expired/ lapsed before the date the amendment became effective), further holds the amendment to be prospective in nature; With respect to Revenue’s contention that amendment in Sec. 149 is retrospective as its procedural in nature, HC remarks that “the interpretation proposed by the revenue has the potential of arming its authorities to re-open settled matters, in respect of issues where the citizen could genuinely be sanguine and had no obligation of the kind which the Revenue seeks to impose by the present amendment.”, cites SC rulings in K.M. Sharma and S.S. Gadgil:HC