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Under Section 192 of the Income-tax Act, 2025, the tax chargeable on the total undisclosed income of a…

In Commissioner of Income-tax v. Vatika Township (P) Ltd (2014), a Constitution Bench of the Supreme Court held that a proviso imposing a surcharge on tax in block…

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Under Section 192 of the Income-tax Act, 2025, the tax chargeable on the total undisclosed income of a block period in search cases is increased by a surcharge levied by a Central Act. In the Constitution Bench decision in Commissioner of Income-tax v. Vatika Township (P) Ltd (2014), when a proviso was first added to levy a surcharge on tax in block assessments without express retrospective words, what did the Supreme Court hold?

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In Commissioner of Income-tax v. Vatika Township (P) Ltd (2014), a Constitution Bench of the Supreme Court held that a proviso imposing a surcharge on tax in block assessments of search cases (now governed by Section 192 of the Income-tax Act, 2025; formerly Section 113 of the Income-tax Act, 1961) imposed a new substantive tax burden and was therefore prospective in nature, not clarificatory or retrospective, overruling CIT v. Suresh N. Gupta.

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