Prospective vs. Retrospective
The cardinal principal of the tax law is that the amendment is to be applied from the date when the amendment comes in i.e. prospectively. The rule applies to the charging section and other substantive provision such as provision imposing penalty and however does not apply to theprocedural law of a taxing statute which are generally retrospective and apply even to the pending proceedings.Thus the amendment which affect to the existing rights or creating new obligations is constitute to be applied prospectively only. The Supreme Court has reiterated the same in VatikaTownship reported in [TS-573-SC-2014-O] , however the above cardinal principal will not apply when it is a beneficial provision and the Supreme Court in Vatika case (supra) has stated that: "Where a benefit is conferred by a legislation, the rule against the retrospective construction is different. If a legislation are confers a benefit on some persons but without inflicting a corresponding detriment on some o