Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act ss.15880 and 158BE(2)(b) 1961 - Chapter XIV-8 |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Income Tax Act, 1961 - Chapter XIV-B, ss.158BD and 158BE(2)(b) - Recording of satisfaction notes for issuing notice under s. 1588D - At what stage of proceedings under Chapter XIV-B, the assessing authority to record such satisfaction note - the High Court opined that it could only be prepared during the course of the assessment proceedings u/s. 158BC and not after completion of the proceedings, in view of the limitation period prescribed u/s. 158BE(2)(b) - Held: A reading of s. 158BD indicates that the satisfaction note could be prepared by the assessing officer either at the time of initiating proceedings for completion of assessment of a searched person u/s. 158BC or during the stage of the assessment proceedings - But, it does not mean that satisfaction note cannot be prepared after completion of the assessment - The language of the provision is clear and unambiguous - Legislature has not imposed any embargo on the Assessing Officer in respect of the stage of the proceedings during which the satisfaction is to be reached - s. 158BE(2)(b) only provides for the period of limitation for completion of block assessment u/s. 158BD -. It neither provides for nor imposes any restrictions or conditions on the period of limitation for preparation of the satisfaction note u/s. 158BD and consequent issuance thereof - Reasoning of the High Court is contrary to the plain and simple language employed by the legislature u/s. 158BD which provides adequate flexibility to the Assessing Officer for recording the satisfaction - The satisfaction note could be prepared either (a) at the time of or along with the initiation of proceedings against the searched person under Section 158BC; (b} along with the assessment proceedings under Section 158BC; (c) immediately after the assessment proceedings are completed under Section 158BC of the searched person - The matters are remanded to the respective High Courts for deciding the matters afresh in the light of the above-mentioned observations on the scope and interpretation of s. 158 BD. Interpretation of Statutes - Interpretation of fiscal legislation - Literal rule or rule of strict interpretation - Held: The foremost principle of interpretation of fiscal statutes is the rule of strict interpretation i.e. to follow the literal rule - The courts while interpreting provisions of fiscal legislation should neither add nor subtract a word from the provisions of instant meaning of the section - Departure from the literal rule would lead to free play to each Judge to put his own interpretation which would be destructive of the edifice of the fiscal legislations - In taxing statutes, even if the literal interpretation results in hardship or inconvenience, it has to be followed - The language of a taxing statute should ordinarily be read and understood in the sense in which it is harmonious with the object of the statute to effectuate the legislative animation - A common sense approach, equity, logic, ethics and morality have no role to play while interpreting a taxing statute.. |
Judge | N/A |
Neutral Citation | 2014 INSC 186 |
Petitioner | Commissioner Of Income Tax - Ill |
Respondent | M/s. Calcutta Knitwears, Ludhiana |
SCR | [2014] 5 S.C.R. 855 |
Judgement Date | 2014-03-12 |
Case Number | 3958 |
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