A historic judgment for Government to learn Retrospective lessons.

Accommodation Times Bureau

By Dr Sanjay Chaturvedi

British Prime Minister had specifically called upon Prime Minister Dr Manmohan Singh and shown his government’s concern over Vodaphone Tax matter decided by Supreme Court of India but Government of India wants rules change retrospectively to corner Rs.11000/- crore taxes on deals which under Indian law and various international Treatities do not qualify for any tax in India. Indian Government and various state governments are waking up from hibernation and wants to make good the wrong doing while exchequers lost revenue or did act which were against the law.

Let us see various such cases in Real Estate. Very first forest land issue in Mumbai. What is the fault of Builders and purchasers? The State Government of Maharashtra through its various agencies like Registrar of Assurances who registered documents on such land, Local self Government like BMC who passed planes, various law firm who certified the title of land for housing finance companies and Forest Departments were sleeping for two decades and waited things to happen. Now, Since the forest land needs to be restored all the agencies instead of biting their shoes now transfer the onus on poor property purchaser.

Second case and very recent case in Union Budget. MP Arun Jaitly were filing his objections in Lok Sabha said that Retrospective Provisions of Budget like for opening 16 year old cases overseas will shake the investor’s confidence in India and overseas FII and Hedge Funds will exit without any notices. (Sec 147 & 149)

Delhi High Court came recently with a land mark order in Service Tax implementation for Renting of Immovable properties with retrospective effect from year 2007 and Bombay High Court had also given its verdict that Service Tax is applicable as the Act had provided in the case of Maharashtra Chamber of Housing Industry (MCHI) case. The chamber lost its writ to the mighty will of government to impose taxes. The onus was again on poor property purchasers.

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