Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Finance Act, 2010 (14 of 2010) Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Income Tax Act, 1961 – s.40(a)(ia) and ss.139(1), 200(1) – Amendment in s.40(a)(ia) by Finance Act, 2010 – If retrospective – Respondent-assessee, a partnership firm and a manufacturer and exporter of casting materials, filed its return of income for the Assessment Year 2005-06 – Assessing Officer disallowed respondent’s claim for deduction of export commission charges paid by it stating that the tax deducted at source (TDS) on such commission amount on 07.07.2004, 07.09.2004 and 07.10.2004 ought to have been deposited by the respondent before the end of the previous year i.e. 31.03.2005 to get the commission amount deducted from the total income u/s.40(a)(ia), as it stood then – Respondent’s appeal before CIT (Appeals), allowed – Order of CIT (Appeals) upheld by Tribunal as also by High Court – Held: Finance Act, 2010 relaxed the rigors of s.40(a(ia) to provide that all TDS made during the previous year can be deposited with the Government by the due date of filing the return of income by allowing additional time to the deductors to deposit the TDS so made – Purpose of s.40(a)(ia) is to ensure tax compliance and not to punish the tax payer, thus, it should not be allowed to be converted into an iron rod provision which metes out stern punishment and results in malevolent results, disproportionate to the offending act and aim of the legislation – Purpose of the amendment made by the 2010 Act is to solve the anomalies that the insertion of s.40(a)(ia) was causing to the bona fide tax payer – Amendment made by the 2010 Act being curative in nature is to be given retrospective operation i.e from the date of insertion of s.40(a)(ia), AY 2005-2006 – Tax paid by the respondent on 01.08.2005 is in accordance with law and it is allowed to claim deduction for the tax deducted and paid in the previous year in which the tax was deducted – Finance Act, 2010 – Finance Act, 2008. Interpretation of Statutes – Curative amendments – Nature of operation – Held: A proviso inserted to remedy unintended consequences and make the provision workable, a proviso which supplies an obvious omission in the Section, is required to be read into the Section to give the Section a reasonable interpretation and requires to be treated as retrospective in operation so that a reasonable interpretation can be given to the Section as a whole. |
Judge | Hon'ble Mr. Justice R.K. Agrawal |
Neutral Citation | 2018 INSC 411 |
Petitioner | Commissioner Of Income Tax Kolkata Xiiv. M/s Calcutta Export Company |
Respondent | M/s Calcutta Export Company |
SCR | [2018] 5 S.C.R. 731 |
Judgement Date | 2018-04-24 |
Case Number | 4339 |
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