Section 144C of Income Tax Act, 1961 – Assessment – A return of income was filed in respect of A.Y. 2007-08, wherein the petitioner claimed various deductions under Chapter VI-A and Section 10B of IT Act, 1961. The assessment was selected for scrutiny. Notice in terms of Section 143(2) was issued. Since the petitioner was covered by the provisions relating to Transfer Pricing in terms of Chapter X of the Act, forwarded a draft assessment order to the petitioner under cover of forwarding letter dated 30.12.2010. The Authority, had, in the draft order of assessment, rejected the claims of the petitioner under Sections 80IA, 80IB and 10B of the Act. The reasoning for rejection under Section 80IA was that the power generated by the Power Plant set up by the petitioner is utilised captively and not by way of sale to third parties and as such cannot be treated as profit derived, as contemplated in terms of Section 80IA. The claim under Section 80IB was concerned, the Assessing Authority took the view that the claim related to the 10th year of the relevant unit and disallowed. The claim under Section 10B was partly allowed. High Court allowed the writ petition holding that:– A substantive right has ensured to the parties by virtue of the introduction of Section 144C, that, bearing in mind the settled position that the law applicable on the first day of assessment year be reckoned as the applicable law for assessment for that year, leads one to the inescapable conclusion that the provisions of Section 144C can be held to be applicable only prospectively, from A.Y. 2011-12 only – VEDANTA LIMITED Vs. ASSTT. CIT [2020] 422 ITR 262 (MAD)