Case Law Analysis
|Gauhati High Court
Assessment Year Principle | Tax Amendment Effective April 1 Applies to Prior Year's Income: Gauhati HC Upholds Karimtharuvi Tea Estate Ruling
The Gauhati High Court reaffirmed that a tax amendment effective from April 1 governs the assessment of income earned in the preceding financial year, aligning with the Supreme Court's precedent in Karimtharuvi Tea Estate Ltd. vs. State of Kerala. This ruling underscores that tax liability is determined by the law in force on the first day of the assessment year, not the financial year of income accrual, impacting agricultural income tax assessments under the Assam Agricultural Income Tax Act.