Income Tax Act (XI of 1922)---

----S.26-A [as amended by Finance Act, 1974]---Provision of S.26-A being procedural in nature, amendment made to it by Finance Act, 1974 was remedial and curative in character and was to be given retrospective effect.

Commissioner of Income Tax North Zone, Lahore v. Rippon Printing Press, Lahore (1973) 28 Tax 40 fol.

Waheed Farooqi for Applicant.

Respondent (called absent).

Date of hearing: 5th May, 1992.

JUDGMENT

NASIR ASLAM ZAHID, J: --For the assessment year 1970-71 of the assessee, on the application of the Department, the learned Income-tax Tribunal has referred the following question of law to this Court for opinion under section 66(1.) of the Income-tax Act, 1922 (since repealed):

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in directing the Income-tax Officer to treat and assign to the assessee the status of registered firm for the year under reference in view of the amendment made in section 26A by Finance Act, 1974."

2. We have heard Mr. Waheed Farooqi, learned counsel for the Department. No one has appeared on behalf of the respondent/assessee, who have been called absent.

3. Prior to the amendment of section 26A of Income-tax Act, 1922, by the Finance Act, 1974, every registered firm had to apply each year for renewal of registration. The amendment in section 26A by the Finance Act, 1974 dispensed with the making of application for renewal of registration in case of such firms which had already been allowed registration and there was no change in their constitution. According to the amended section, all such firms were to be treated as registered firms for the assessment years for which they were first registered and all subsequent years for so long as there was no change in the constitution of the Said firms.

4. The only point requiring consideration in the present reference application is whether the amendment made in section 26A of the Income Tax Act by Finance Act, 1974, will have retrospective effect. The Tribunal relied upon a decision of the Lahore High Court in the case of Commissioner of Income-tax, North Zone, Lahore v. Rippon Printing Press, Lahore reported in (1973) 28 Tax. 40 in which it was held that section 26A is a procedural section and the amendment made in that section by the Finance Act of 1974 was to be given effect retrospectively.

We agree with the aforesaid view of the Lahore High Court and are of the view that the amendment made in section 26A of the Income Tax Act by the Finance Act of 1974 was remedial and curative in nature and is to be given retrospective effect, section 26A being procedural in nature.

5. The question referred to us is accordingly answered in the affirmative. There will be no order as to cost.

M.B.A./C-275/K Question answered.