Retrospective Amendment of law not operative on date of order u/s 263 or issue of notice u/s 148

ž  If retrospective amendment of law was not enforceable on the day, CIT exercised its powers u/s 263, order u/s 263 is bad in law[Supreme Court in Max India [295 ITR 282]]. In this case amendment in section 80HHC was brought retrospectively on the definition of profit in FA 2005 while order u/s 263 was passed 5-03-1997

ž  Similarly notice u/s 148 can also not be issued , held by Bombay HC in Rallis India [Para 18] 190 taxman 1. In this case notice u/s 148 was issued on 16-07-2008 and Finance Act 2009 amended the law on S.115JB requiring increase in book profits by provision on diminution in  value of assets w.e.f. 1-4-2001.[Consequent to SC Order in HCL Comet  292 ITR 299 that  provision for bad debts can not be equated with  amount set aside for meeting liabilities]