Interpretation of Words and Phrases of Taxing Statutes

Description Explore the foundational principles of Interpretation of Words and Phrases of Taxing Statutes by Ram Dutt Sharma, ISBN 9789356037007, is a comprehensive resource published by Commercial Law Publishers. Spanning 440 pages Discover key concepts like statutory interpretation, precedents, and procedural laws. Get valuable insights on tools for interpretation, including internal and external aids, while understanding the significance of special laws and general laws. Learn about the nuances of statutory provisions, definitions, and clauses, and gain clarity on concepts like ejusdem generis and estoppel. Dive into the complexities of tax law with expert guidance on cross-examination, full disclosures, and charging provisions. Gain a comprehensive understanding of judicial discipline, precedents, and constitutional provisions that shape tax law interpretation. Whether you’re a legal professional, student, or enthusiast, Insights Book offers valuable insights into the intricate world of tax law interpretation.” Now available with a 27% discount plus free shipping for a limited time. Content Page Chapter 1. Introduction Foundational principle for a charge under Tax Statutes 1 Purpose of Interpretation 1 Statute must be read as a whole 2 Sources of Rules 2 Particulars in a Statute 3 Tools in interpretation 4 Internal aids to construction vis-a-vis External aids to construction 7 Preliminary Steps before attempting to interpret a given statute: 8 Special Law Overrides General Law 9 Principles of Statutory Interpretation 10 A statute is either perpetual or temporary 17 Undefined words 19 Definitions in other statute 19 Plain Meaning Rule 20 Rules of Language 20 Judicially defined words 21 Chapter 2. Act Which can we Regard as the special Act and which the General ? 23 When both the Acts show non-obstante clauses; therefore, the question which arises for consideration is which Act will prevail 24 Chapter 3. Amendment 26 Chapter 4. An Act to Amend and Consolidate the Law Meaning of consolidation of the law 28 Objective of Income-tax Act, 1961 28 Chapter 5. Annul 29 Chapter 6. Bare Act Literal Interpretation 32 Contents of Bare Act 32 Role of ‘Preamble’ in interpretation of statute 32 Examples of Bare Act 33 Chapter 7. Casus Omissus The casus omissus cannot be supplied by the Courts Supplying ‘casus omissus’ which was not permissible and could 35 only have been done by the Supreme Court in an appropriate case Casus omissus broadly refers to the principle that a matter which has not been provided in the statute but should have been there, 36 cannot be supplied 36 Chapter 8. Caveat Meaning of a Caveat 37 Content to Be included in a Caveat 37 Purpose of a Caveat 38 Where can a Caveat be Lodged? 38 Chapter 9. Charging Provision Charging section should be strictly construed while the procedural sections should be liberally interpreted 40 Chapter 10. Circulars or Instructions Nature of a CBDT circular can be summarised in the words of Hon’ble Supreme Court 42 Binding Nature of Circular/Instruction 43 Chapter 11. Clause Clue to Identify whether a part of section is Clause or Sub-section 47 Chapter 12. Code Chapter 13. Collegium Dispute Resolution Panel (DRP) is an income-tax authority 50 Chapter 14. Cross-Examination What is Cross-Examination? 51 Requests for cross-examination may be denied 51 Types of Evidence 52 Technical Rules of Evidence do not Apply to Income Tax Proceedings 52 Lack of cross-examination & violation of principle of natural justice 52 Chapter 15. Definition Clause (Interpretation) Definitions in other statutes 68 Chapter 16. Deletion 69 Chapter 17. De Novo 70 Chapter 18. Derived From 72 Chapter 19. Dismiss ‘Appeal is Dismissed’ 74 Dismissal of Appeal by Appellate Commissioner 74 “SLP Dismissed” : 74 SLP is Dismissed, however, the question of law is kept open 75 Chapter 20. Ejusdem Generis Need for the Doctrine 77 Essentials of the Doctrine of Ejusdem Generis 78 Chapter 21. Error of Jurisdiction or Lack of Jurisdiction (Excessive Jurisdiction) Nullity when occurs 80 Jurisdictional Error 81 Few Instances: Jurisdictional Error 81 Lack of Jurisdiction (Excessive Jurisdiction) 81 Few Instances: Lack of jurisdiction (excessive jurisdiction) 82 Chapter 22. Estoppels Requirements of Promissory Estoppel 95 Conditions for application of Doctrine of Estoppel 96 Exceptions to Estoppel 96 Principles of estoppel not apply to Income Tax proceedings 96 Doctrine of Promissory Estoppel is not Applicable Against the State while Exercising its Legislative Power 97 Chapter 23. Exception Exceptions & saving clauses 100 Chapter 24. Exemptions Exemption Clause – Strict Construction 101 Chapter 25. Explanation Object of an Explanation to a statutory provision 106 Chapter 26. For the Removal of Doubts Clarificatory or Retrospective – who decides 110 Chapter 27. Full and True Disclosures What is full and true Disclosure 111 What does full and true Disclosure mean 111 Chapter 28. Includes Chapter 29. Income Inclusion of all sorts of subsidies within ambit of ‘Income’ under Section 2(24) is not unconstitutional 115 Term “income” as defined in section 2(24) does not include “interest” referred to in section 56(2)(viii) or interest received in MACT award 116 Chapter 30. Income Tax Law 119 Chapter 31. Judicial Discipline Assessing Officer is bound to follow High Court ruling given in assessee’s favour even if Department has filed SLP against the decision to Supreme Court 121 An order of High Court does not become inoperative merely because Department filed an appeal or SLP against it 121 Binding nature of order of another bench – Judicial discipline [Article 226] 122 Judicial discipline demands that subordinate authorities shall accept the decisions of Tribunal as binding precedent 122 Chapter 32. Judicial Precedents Meaning of Precedent 124 Definition of Precedent 125 Origin of Precedent 125 Object of Doctrine of Precedent 125 Binding nature of Precedents 126 General Principles 126 Exception to the doctrine of Precedents, i.e., when Precedent ceases to be Binding 126 Legislative Amendment 128 Chapter 33. Law Judges to Apply the Law 157 Meaning of Law 157 “LAW” Defined 158 Generally the term “law” is used to mean three things: 159 Origin of Law 159 Nature of Law 160 Functions of law 160 Rule of Law 161 Role of law in Business 161 Role of law in Society 161 Forbidden by Law mean: 162 Chapter 34. Literal Rule Advantages of the Literal Rule 165 Disadvantages of the Literal Rule 165 Chapter 35. Machinery Provision While interpreting machinery provisions of a Taxing Statute Court should give effect to its Manifest purpose: SC 167 Chapter 36. Mandatory or Directory Difference between Mandatory and Directory provisions 170 Rules for determination of Mandatory and Directory Statute 172 Intention of the legislature: 172 Purpose behind the Statute: 172 Chapter 37. Marginal Notes Definition of Marginal Notes: 176 Limitations of Marginal notes as internal aid to construction: 176 Chapter 38. May or Shall 179 Chapter 39. Means 181 Chapter 40. Mutatis Mutandis 183 Chapter 41. Natural Justice Adjournments 185 Situations of violation of principles of natural justice in taxation laws 185 Rule against Bias 187 “Justice must not only be done, but must be seen to be done” 187 Right to Fair Hearing 188 Chapter 42. Non – Obstante Clauses Non-obstante clause in Section 153A does not exclude Applicability of Reassessment Proceedings 204 Bombay High Court decodes Non Obstante Clause 204 Non-obstante clauses are not always to be regarded as Repealing Clauses nor as clauses which expressly or completely supersede any other Provision of the Law 207 Chapter 43. Nothing Contained In 208 Chapter 44. Notwithstanding Anything Contained In… Distinction between the Expression ‘Subject to other provisions’ and the expression “Notwithstanding anything Contained in..” 211 Chapter 45. Obiter Dicta 212 Chapter 46. Omission 214 Chapter 47. Oral Order or Judgment Oral and Written Judgments 218 What is a Judgment? 218 The term ‘Judgment’ has been defined under section 2(9) of the Civil Procedure Code as under: 218 Judges should speak through Judgements and Orders, not issue oral directions: Supreme Court 218 Chapter 48. Per Incuriam A Decision is given per Incuriam when the Court has Acted 220 Tribunal has no Jurisdiction to hold that a Particular Decision of Jurisdictional High Court has been rendered per Incuriam or sub Silentio 222 The Proposition that a decision per Incuriam need not be followed as a Binding Precedent is Well-established 224 Chapter 49. Perversity Perverse 225 Test and Benchmark of Perversity is Far Stringent and Strict 225 Chapter 50. Precedent Doctrine of Precedent in India – a British Legacy 238 Pre-Independence 238 Post-Independence 238 Supreme Court 238 High Courts 238 Lower Courts 239 Precedents 239 Rules for Reading the Precedents 239 Circumstances that Weaken the Binding force of a Precedent 239 Precedent ceases to be a Binding Precedent 239 Circumstances Weakening the Binding force of Precedents 240 Constitutional provisions regarding precedents of the Supreme Court – Scope of Article 141 240 Use of Foreign Decisions 242 Chapter 51. Prescribed Chapter 52. Presumption What is the Presumption of Statutes? 244 Taxing Statute is to be Construed Strictly 245 Presumption against Injustice or Absurdity 246 Chapter 53. Procedural law Meaning of Procedural Law 247 Nature of Procedural Laws 248 Chapter 54. Proceeding 252 Chapter 55. Prohibited By Law What is Meaning of ‘Prohibited by Law’ 255 Duties of an Auditor while Conducting tax audit of a Pharma Company under Section 44AB of the Act 256 Supreme Court’s decision 256 Chapter 56. Prospective Meaning of the Word “Prospective” 259 Prospective vs. Retrospective – Cardinal Principle of the Tax Law 259 Supreme Court provides clarity on Prospective versus Retrospective operation of Tax Amendments 259 Chapter 57. Proviso Proviso (a Condition) : 262 How to know the NUMBER of a Proviso? 263 Chapter 58. Punctuation 265 Chapter 59. Quash What is a Quashing order? 266 Chapter 60. Ratio Decidendi Ratio decidendi (Literally means ‘Reason for Deciding’) 267 Law of Precedents 268 Elements of a Precedent 268 Constitutional Provisions Regarding precedents of the Supreme Court – Scope of Article 141 268 Ratio decidendi : The reason or Grounds of a Judicial Decision 270 Chapter 61. Removal of Difficulty Removal of Difficulty order may be made under a Statute Subject to the following Requirements being met up with: 271 Chapter 62. Repeal Effect of Repeal [Section 6 of General Clauses Act, 1897] 273 Contents xv Section 6A : Repeal of Act making Textual Amendment in Act or Regulation 274 Subordinate Legislation under the Repealed Statutes 274 Chapter 63. Res Judicata For making Res Judicata Binding, Several Factors must be met up with: 276 The Doctrine of Res Judicata is based on Three Roman Maxims: 276 Key Principles of Res Judicata 277 Applicability of Res Judicata 277 Non-Applicability of Res Judicata 277 Purpose of Res Judicata 277 The Nature of Res Judicata 277 Scope of Res Judicata 278 Res Judicata of Foreign Judgement – Execution of Foreign Awards and Decrees in India 278 Chapter 64. Retrospective Meaning of Retrospective 285 Nature of Retrospective Legislation 285 Retrospective Operation Means 286 Clarificatory or Retrospective – Who decides 287 Constitutional Restriction on Retrospective Laws 287 Chapter 65. Rule 320 Chapter 66. Rule Absolute 321 Chapter 67. Save as Otherwise Provided in This Act… 322 Chapter 68. Saving Clauses 323 Chapter 69. Schedule 325 Chapter 70. Section 327 Chapter 71. Sub – Section Sub-section Example 328 Clue to locate a ‘Sub-section’ in a Section 328 Section & Sub-section’ 328 Chapter 72. Set – Aside 329 Chapter 73. Short Title 332 Chapter 74. Stare Decisis 333 Chapter 75. Subject to the Provisions of… Difference between: (a) ‘Non-obstante’ Clause and (b) ‘Subject to’ other Provisions 337 Chapter 76. Sub-Silentio 339 Chapter 77. Substantive Provisions versus Technical Provisions Sequencing of Provisions 342 Contents xvi Chapter 78. Substantive Law Concept of Substantive Law 352 Meaning and Nature of Substantive Laws 352 Nature of Substantive Laws 353 Sources of Substantive Laws 353 Other Sources of Substantive Laws include: 354 Limitations of Substantive Laws 354 Chapter 79. Suo Moto Notable Cases 355 Chapter 80. Sufficient Cause Meaning of the word “sufficient cause” 361 Chapter 81. Tax Definition of Tax: 370 Strict Construction of Taxing Statutes 370 Constitutional Aspects of Taxation 371 Constitutional Provisions Relating to Taxation 371 Taxes are the Price that we Pay for Civilization 379 Chapter 82. Ultra Vires Meaning of Ultra Vires 380 Constitutional Validity 381 Chapter 83. Without Prejudice To… ‘Without Prejudice’ Means 383 Chapter 84. Important Common Legal Terms 385 Chapter 85. Interpretation Act, 2005 394 Chapter 86. The General Clauses Act, 1897 408