New Delhi, Aug. 2 -- The Gujarat High Court has quashed a reassessment notice issued by the Income Tax Department in a long-running capital gains dispute, ruling that the wider powers introduced under Section 55A of the Income Tax Act through the Finance Act, 2012 cannot be applied retrospectively to transactions that took place before the amendment came into force.

The case involved Late Padmaben Zinabhai Trivedi, who sold 13,626 square metres of land in Bhimpore village, Daman, in 2009 for Rs.92 lakh. While filing her income tax return for Assessment Year (AY) 2010-11, she relied on a registered valuer's report, which estimated the fair market value (FMV) of the land as on April 1, 1981 at Rs.81 per square metre. Using this valuation, ...