Retrospectivity in Taxation in India : A Judicial & Constitutional Analysis

This paper seeks to analyze the basis of Retrospective legislation in India focusing specifically on the area of Tax law and seeks to unearth the rich case law on the subject and the sort of constitutional checks placed upon it. The paper will first introduce the concept of retrospective tax and pose questions as to what possible checks and balances can be placed upon it. Then it will move on to the rich case history of retrospective tax statutes and how they have been interpreted by the judiciary to be either constitutionally valid or invalid paying special importance to the considerations that the judiciary had when they examined these statutes. Then we will look at specific instances when a particular retrospective amendment is held to be valid or invalid, noting the specific principles or logic deployed by courts in them. Finally, we will conclude with the current trends with regards to retrospective applications.