Budget 2026 - Retrospective mode!

Budget 2026: Amidst certain welcome proposals, retrospective amendments have been proposed to nullify all the major legal issues:

1. Roca/Shelf Drilling;
2. DIN (to some extent);
3. JAO/FAO reassessment controversy;
4. Pfizer issue on limitation period for passing TPO order.

This certainly comes as a retrograde step, essentially changing the goalpost in the middle of the game, when various High Courts were in favour of the assessees.

Further, the trend of taking stands contrary to own circular (DIN), own notification & scheme (JAO/FAO) and own circulars & press releases on treaty eligibility (Tiger Global) raises a big questionmark on the reliability of CBDT notifications/circulars going forward. Routinely disowning its own word flies in the face of ‘tax certainty’.

Perhaps, along with ‘fiscal deficit’, what also needs to be seriously taken care of is ‘trust deficit’.

Nevertheless, it remains yet to be seen whether a retrospective amendment can revive something which originally remained illegal/without jurisdiction and consequently, a nullity in the eyes of the law.

#UnionBudget2026 #Incometax