G.k. Choksi & Company v. Commissioner Of Income Tax, Gujarat

ra.al. daHlWgaus toodcayalHHod, didd!3 0?p,0 27, 2007 [Hall->0, ddols.:p",O.Jne ?J.WH. Hduddd, ra.ra. 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JAMSm4*O>O?ੱ 0OWw?ੱ 0O;0WwGal0LpfaleH.O,.ਲO0;JਂdiamqdHdd TTJ1H,ੱ-?ੱਲSPSLAdd!;Jto/>0> (v) .O,.;,.?/>0:->.>GeH.:0+alTdyldadd?>ਲOcal Hulatet0Lpਲ>-:J.,Add!;J।By-/>0> () fee.?/>0:->0O.?>O>,N0 ',O "aldyld" .O0>ਲ-0>ਲ"*O>O" Add?>ਲOHSI T0LpTdidre.>ਲ>-..ੱ,>;J, PartoGy-/>0> (v) fee, .?/>0:->0OTJਲ>-.:0+ "aldyld" ',OyeAdd?>ਲOATAtol:J.,dd..ੱ,>;J। (*J0> 13) (570-u, aa 561 562 G.K. CHOKSI & COMPANY v. COMMISSIONER OF INCOME TAX, GUJARAT NOVEMBER 27, 2007 [ASHOK BHAN, HARJIT SINGH BEDI AND V.S. SIRPURKAR, JJ.] Income Tax Act, 1961: S.32(1)(iv): Depreciation by way of deduction-Assessee-Firm of Chartered Accountants constructing a building for its employees-Claiming depreciation of 40% in terms of provision u/s 32(1)(iv)-Rejected by ITO on ground that benefit under the provisions applicable to an assessee carrying business and not available to professionals- D Reversed by appellate authority-Tribunal restoring the order of ITO-Confirmed by High Court-On appeal, held, the word business appearing in s. 32(1)(iv) cannot be construed so as to include "profession" as well-In terms of provisions under clause 32(1) legislature intended to restrict the benefit under the provisions to E assessee carrying on business only-Inclusion of profession within the scope of expression business would be doing violence to provisions of the Act-Such an interpretation not permissible in law-Interpretation of Statutes-Legislative intendment-Construing of Words & Phrases: 'Business' and 'Profession '-Meaning of in the context of S.32(1)(iv) of the Income Tax Act, 1961. The question which arose for determination in the present appeal G was as to whether in the facts and circumstances of the case the assessee-appellant, a Chartered Accountant's firm would be entitled to deduction under Section 32(1)(iv) of the Income Tax Act, 1961. (2007] 12 S.C.R. A Appellant-Firm contended that Section 32 of the Income Tax Act relates both to "business" as also "profession"; that the assessee carrying on profession would be entitled to the depreciation under Section 32(1)(iv) though the word "profession" does not find mention in sub-clause (iv); That the words "business" and "profession" are B defined separately under the Act; and the definitions under the Act are subject to the context and can be read interchangeably at least one term carrying on within its fold other term if the context so requires; That, the word "business" appearing in sub-clause (iv) of Section 32(1) in the context clearly refers to both "business" and "profession"; That, the c word "business" is used in the context of employees and is clearly intended to cover both "business" as also "profession"; That Section 32(1) (iv) should be given a purposive interpretation to extend the benefit to the professionals as well; That if two opinions are possible, then the one in favour of the assessee should be adopted and that Barendra D Prasad Ray's case is clearly applicable to the facts of the present case and the High Court has erred in distinguishing the same. Revenue submitted that Section 32(l)(iv) of the Att cannot be made applicable to professionals, as there is no reference in this sub-E [clause ][to ][the ][assessees ][who ][are ][in ][profession; That sub-section ][(1) ][of ]Section 32 lays down general conditions or basic requirements on fulfillment of which an assessee shall become eligible for deduction as provided in the various clauses which follow; That, from the scheme of the section various clauses would operate on further specific conditions F [laid ][down ][in ][each ][such ][individual ][clause(s); ][Thatthough ][Section ][32(1) ]refers to both "business" and "profession", the sub-sections, namely, (i) and (iv) would not be controlled by it; and ThatBarendra Prasad Ray's case has no application to the facts of the instant case since in the said case, this Court was dealing with a situation arising under Section 9 of G [the ][Act ][which ][deals ][with ][income ][deemed ][to ][accrue or arise ][in ][India. ] Dismissing the appeal, the Court HELD: 1.1. Section 32(1) of the Income Tax Act does not help the appellant in any way to construe the word "business" appearing in sub- H [section ][32(1 ][)(iv) ][to ][include ]["profession" ][as ][well. ][The ][legislature ][intended ] 563 1.5.wor.J/>0> 9 (1) ye/>0> 32 ny.K.??:->?>ਂ.J>,.>?ਲJYSIS?ੱ 0J;JWs/>0> 9 (1) .JTyeadtu:.O "aldurdiaASdHS" >,.>ਂ ',OBreygeTST eTਲ>!L0;JਂalliHal />0> 32 (We) (v) .O,.;,,ੱ->ਂ.J:.-,JfeeTJ.p0+>[o/>0> 32 (1) (v) fed;K+?>ਲO"altdyld" >,.fed "*O>>" >>.ਲ;K?O!> ,0O.0*ਰ:>.0O,0>.,0O.0*ਰ:>.0O।aaHcayWeHd, (1981] 2S 693, 0Lpਲ>!L0;JਂHemiTren 1.6. mad.O->!!JfeeWad.J/>0> 28 ,K 43 >>.ਲ;Jraatdyrdai*O>O.O.K0>+Oytਲ>->ਂ0>ਲ:,p/,;J।tial.K;>?0>As]->!>ਂre "atTdyrdai*O>O" ralSadiaTdp;J, *0la?J>,.0Lp "aldyidWy*O>O" rar0;JਂediIPA;J. CGHnH, faa?J.?/>0:->.>Tagra:JTolor.?>O>.>ਲ>-;K?O *ਰ,p/aldyidai*O>O.K?>ਂBu;K+>aicJie;J, SH0O>,.>ਂ.J?0,Kall;J"aldyld+!*O>>" arepel?JPPE Beyਲ>-0Lpaldylgi*O>Osal:J.,add!;J, .?/>0:->0O "aldyld" i "*O>O" >,..J?0,K|;J, apace.,ਲ,;JTa(sAeBeH "alduld" al "*O>O" salਲ>-auger;J, ->?, Hol .L:0O0Lp>>.ਲ0;JਂotalaiedI. [*J0> 17] [571-, ,] 1.7.:->*,AAS.OHeSdd, H.KTt ret:p-?;0, ,>ਂHSA sags!.OJolirfSa0LpWUST MrmPeghen;J. *0, ?0,.>0aHfed.KToye:p-?0;Jਂ;0laBial "aldyld" >,. />0> 32 (1) .J/>0> (v) feed?>*00?>ਲO1H0Lp "*O>O" 0Lp?J>>.ਲalapaHad;J। [*J0> 18] 1.8./>0> 32 (1) (v) feeWaelois?J0;Jਂ;Jra "aTdyrg" >,..Oreuse0Lpbsfee} "*O>O" fee}?J>>.ਲadd.JAMUA!Add];J। " aldylg" >,..JfaythiHeHou "*O>O" fag?J>>.ਲAddpvals]rare;J, rawadyt/>0>?>ਂ.?0Kੱ/.;p:>add"|iH,0੍>ਂ feytre*.;ਲ>ਂfoaAMUATSHAaH*J.>Add.O,0>,0;K?O!JYW .+0TS0Lp-00>, fa.JaSerfares0;Jਂ;J. .:?ਲWUWidatd O,0: .:?ਲWU0p ,0 7486 2001. YT.ct.MI. 0p ,0 194/1986 fogWidHeTyrd.? Odlddi3eyade.O 16.8.2001 .OmfsH+J:ਲOYWWTA,K। :.J0*>0O , deals0K;,!J"IClay!giz (*>0O WA*>0O as) aus), WMUTsadgBuy ?J. >O 0, ra. a. >0, rami)>O0*>, ?J. mIPy rYICIIPyt ,J.?J. Gagesva,ਲ0>. al.ro. rarpsmWaUuSTel. aldHodMl SoHcay, didd!3 [->0, ra.] ->0, ra. HaeWUTmS]add?ੱਲK 16 MdiH, 2001 0Lp..ੱ,OdeWITH+J:ਲOWIWITH.O.?0Kੱ/allge;J WigHeTyrd.? Odind's.OSSHcan0J+0J:0p ,0 194/86 fedsyddd0OITHVAScn!)*>:alsdeWH0Lpddddidqty;JtotSdulda/>0> 32 (1) (4) .O,.;,aca.>auld0;Jਂ;JISOocayWol, 1961 (:p O*re "nor")। 2.HaeWUTre>>.ਲ*ਰ>0nor.J/>0> 32 (Wy) (v) .J:;JTyre0>ਲ:,p/,;JWalJloalHaeoH.O,ੱ->ਂve;>ਲ>,>ਂfee]HSlacagsl-WU adsl, BSIdiddda.J+0.Bas/>0>,.;,acai.Jauld;K?O!J। tSdulda (TH,Kdnd "WuUsa ga" reanerare;J) WigHeTyrdfeadiddda.Jfra+0.;J।reHBS 31.03.1984 0Lp ,.;K+?>ਲO.?ੱ,J:>ਲva:>ਲ 1984-85 0>ਲ:,p/,;J।:p,p./,!J:>ਲ.N0>0WuUsa ga0OyTUSwa,0 >;?>ਲOadHydpniasId dgt.OBeHpafiofTHTG.>.00.>+alslWIwad.J/>0> 32 (1) (v) .O,.;,(dIdre @ 40٪ .>cIyfeollraHTS.JMHYਲ>!,->? 1,08,757/- duel;J।aaHcolHWoeH (Yy.ra.ਓ.) 0OyTUS 15..1985 .OWHA0>;Jਂu.|. ',OtSdutda-WuUsa ga.Oame0LpbsMUTI ',O0ੱ.da..ੱ,>faTS.??:-> "aldulg" Add?>ਲO{5dulda ',Oਲ>!L;Kp.J;JWITHtor*O>O?0asBusy0;Jਂ;J। 4.atHHodMlaya}calH (Wuhs) 0O30.4.1985 .OTUSne0>;JਂTOoocayWhar.OWhe0LpUMC..ੱ,> ,0O.0*ਰ:>.0O,0>.waSSaHcolHMoeH, [1981] 2 >HHTAT 693 fog(SMcISS.O+J:ਲO',O-0K:>adie, YWWuUsa ds.Oray T0LpMHAddWhar0LpWIS.00.O>.O0>ਲHAddddTryToWUIsSadsend!WTSadhd.OldgTTHlBeHiBeOSTeoeISHTGBeIdidre @ 40٪ ..ੱ,Jae| 5.P= PY (S), HIS pcdi*>:alsdeIDE|,K.K J;K+>SoHcarWUTIqIwvas (:p O*irre " IcTavaS") .O:>;.+OWUranealt||ASISyC0OApyTet (a) emHld*>:alsdeIDE|0LpUM..ੱ,>yyWT STengl*>:aleWA0Lp,;>ਲdd..ੱ,>।feHomIPA:JfoWuUsa ga:J cmeal]0>;,.>Jad0;Jਂ;J।Sr+J:ਲ>,0O.0*ਰ:>.me o0O (:K*0>) ,ੱ->ਂWW;>ਲ>,>ਂ ',Oਲ>!L0;Jਂ;Kp.>:JHaeaH!,0O.0*ਰ:>.0O (:K*0>) .>+J:ਲ>THemgalaPAL:JGHOnrereUSSWale,ੱ->ਂWe;>ਲ>,>ਂfedYWCTMreTHSpfee}USGS,ੱ->ਂsal:J.,:J।JSJ?JraTSPPAL:JToBasaHfed, JHd MSHal;K0*J, diethaal0>ਲSido)0;J:J, ->?, 564 2001 . Section: CONCLUSION 563 to have different scope for business and profession in Section 32(1). If A the legislature had intended to include "profession" in the word "business", then there was no need to mention two differentwords, i.e., "business" or "profession" in Section 32(1) of the Act. [Para 12] (569-C, D, E] 1.2. Section 32(1) of the Act stipulates that on buildings, machinery, B plant or furniture which is owned by an assessee and used for the purposes of"business or profession", depreciation shall be available by way of deduction. Section 32(1) uses the phrase "the following deductions shall", therefore it is apparent that the said sub-section is laying down general conditions or basic requirements, on fulfillment of C which, an assessee shall become eligible for deductions as provided in the various clauses which follow. [Para 13] (569-E, F] 1.3. From the Scheme of Section 32(1) of the Act, it is discernible that various clauses shall operate on further specific conditions laid D down in each individual clause. (Para 13] (569-G] 1.4. In clause (iv) ofS.32(1) of the Act, the legislature has used the word "business" only. It means that the legislature was conscious of the factthatthe !Jusiness and profession are different and separate and they cannot be used interchangeably. It is a pointer to the factthat E the Legislature under clause (iv) intended to restrict the benefit to the assessees carrying on business only. In sub-clause (ii) the legislature has specifically extended the benefit of depreciation to the assessees carrying on "business" as well as "profession" whereas in sub-section (iv), the legislature has restricted the benefit to the asseessees carrying F on "business" only. (Para 13] (570-A, BJ 1.5. The wording of two provisions, i.e., Section 9(1) and Section 32 of the Act are quite different and the interpretation put on the words "business connection" while interpreting Section 9(1), cannot be applied to a fact situation under Section 32(l)(iv) to hold that the expression G "business" occurring in Section 32(1 )(iv) would include "profession" as well. [Para 15] (570-G; 571-A] Barendra Prasad Ray v. Income Tax Officer, (1981] 2 SCC 693, held inapplicable. 564 SUPREME COURT REPORTS [2007] 12 S.C.R. A 1.6. Part D of the Act consists of Sections 28 to 43 of the Act which deals with profits and gains of business or profession. Though the phrase has been used in certain sections as "business or profession'', but nowhere has the phrase been used as the "business and profession". In fact, wherever the legislature intended that the benefit of a particular B provision should be for both business or profession, it has used the words "business or profession" and wherever it intended to restrict the benefit to either business or profession, then the legislature has used the word either "business" or "profession", meaning thereby that it intended to extend the benefit to either "business" or "profession", i.e., the one C would not include the other. [Para 17) [571-C, D, E] 1.7. In view of the settled law, if two interpretations are possible, then the one in favour of the assessee should be adopted. But, in the present case two interpretations are not possible as the word "business" D occurring in clause (iv) of Section 32(1 ), by no stretch of imagination, can be said to include "profession" as well. [Para 18) [571-E, F) 1.8. There is nothing in Section 32(1 )(iv) which envisages the scope owad.J/>0>oWWTSfogolspytfauspyiHeeaH.O,ੱ->ਂ ',Oਲ>!L0;JਂolspyiqlHoey|[tHeas0Owad.J/>0> 32 (1) n-/>0> 32 (1) (4) .OSuyuiteegalWad0Lp?Jaaalt] 6. ITVaSend!*>:alsdeWIA,K.K J, WUsadsi0Oranpallnad.J/>0> 256 (1) WUTfia;?>ਲ>Wal[AIVaSaa.Ogy*ਰ>0>ਂ0LpWTS]qrvawWihta O,0ੀJTHadd0LpoH]ICavaS0O.O;O .ਲ O*ਰ>00LpoH0LpapaWU]grBuWidaTd O,0Jeyadd: Yd0Olagiloal,ੱ->ਂny.>.ਲO.O;>ਲ>,>ਂ.OMUG} ',OIces1ਲJ.>nSaida!:;J:JTodddlsiyal.J/>0> 32 (1) (4) .O,.;,aca.>dat0;Jਂ;J? 7.Syadd0OYWTU+J:ਲO0>;JਂeHWIA.JUAoll;JIctHBascHldi*>:atl TPHytfor]IPAtowWuUsadsTH.>auld0;Jਂ;Jnod.J/>0> 32 (1) (v) .O,.;,oHeng! AHI!*ੱ/0 ',Oaddi.>cIMyealltpy;J toTH*O>O?0>ਂ.Jfra+0.:J, ramo?.J/>0> 32 (1) (4) .Orapsfee0;Jਂmgd| 8.mad.J/>0> 32 aL:p,p./,.??:->?>ਂ, IdeToBdHee:0:p,p./,:.O ',O, ;O >ਂ.K,>0>*O>alsde;0: "/>0> 32 - fdidre (1) HBIaASaA gsemHldHTGsi, .>J00J, UST?qieddldd.JalHSWave.O:,p/feaWerH.Ova?0,JPaire;J atdyldra*O>>, 1 ;O TAU yta yi.OWU, />0> 34 .O.Jates..ੱ,Jaid[ '] (i)XXXXXXXXX (ii) ISHTGaI, .>J00J, UTSiedaldd.O.>.ਲOrere, TH,KASPYa/>0> () eaiglaedalsde:.Kp.0Jdid, .ਲ ,J ',OWhol*ਰ,J>, aI.oa. aHyyaustell. altHHdMl567 SioHcolA, dildd' [->0, ra.] TS.>EUS{.KੱਲTellalar?JaHraOHI.J>ਰO+Jir;KHdd);J.00/>0,alaTgp;J: ,>0,OlorapsIdHI.>J00JraUsTA.JNHSਲ>!, [Uddd'dgue] ,K?ੱ/0>;K?O, SH.JMHSਲ>!,0LpTee:>ਲ.O:,p/fqadatrevfeats..ੱ,Jied rapfogWhacl.>J00Ji0Lp*.;ਲ>ਂaHlghSiamAreal;J yTUSaldyldai*O>O.OGeHiyaHSIAeqdgsi; ,>0,Ota.00..,faH?JHeddid.O:,p/irrerH/>0>ra/>0> () .O,.;,ottacai .JWITG0;Jਂ..ੱ,Jaed ->0,,K,>;0, faaWidHedare:Jcn'g!*ਰ>*,aliArey;J28 +0?0J, 1975 ,KgodAddis!, WyHaramBulagi ',OTH0LpTSIRE.Oaldyrd0>ਲKloH;K0Sie’0>ਲeditPare);J; (iv)loaH?JTHT.O.>.ਲOtee]ra 31 Hidd, 1961 ,Kdyed0?JਂgateSe;J, rapsTHT.J?0,K*L0J,0੍>ਂallPairs;JSoaldAdd?>ਲOToya.Jldgte .OBeHBuatdurdWAWhaddajena].JMHAIdH.ONUSdideallrare;J.:0 ",0 >;" .:Jed'guera1H,KWe;J, alesW SHIGS.J?0,K.:0++I.Kੱ ,N0 ',OWha}frya spy.JcevapveIPairs;Jfeto;:*,>ਲ, add, HIS, ac, PYAPSR=F, Heddaaed, *0>;, MITH-aH)qi.K*.;0.O >+O.>AH), froddu.O,0>,0rmIpTTHTG.JBHI.Ofuses:>ਲ.O:,p/fagfSdulda0LpTSTHT.JWMHਲ>!,.>*ਰ,J>,.,ਲ.!p!। (v)xxxxxxxxxxxx (vi)xxxxxxxxxx" 9.>ਰJ:.J0*>0O , WUIsa gsal?ੱਲK*O>Pap.?.?>0cals"' *O>alllonod.>->! ra*O>>". To, />0> 32 "altdyld" WI "*O>O" .K?>ਂ0>ਲ:,p/,;JWIfatal/>0> 32 (1) lH.J/>0> (v) falGy/>0>;J, *O>O0LpAld]0ੱ +?>ਲ>canstIdidte.>doled;K?O!> />0> 32 (1) (v) .O,.;,u, Sila "*O>>" >,..>BY-/>0> (v) featdad0;Jਂ;J।to "aldyld" yt "*O>>" >,.>ਂ0LpMad.O,.;,?ੱ 0O,N0 ',O*.0->.>,alaPL;J; "atduld" 0Lp/>0> 2 (13) WI"*O>O" 0Lp/>0> 2 (36) .O,.;,*.0->.>,alslgp;JWS.K?O*.0->>>?>ਂ>>.ਲ;0।ie, HAAS 2 .?>O>,N0 ',Oacer;J "eHniefed, orarta*ਰ:p!.J;K0ਲK;0>;K?O" n-oHva;O >ਂ..ੱ,J*.0->>>Wad*ਰ:p!.Owuts;JWATH0LpweWeol>,..O,.ਲOulstiHdd;JraHeausrerap.0;>;JWalra*ਰ:p!Wig!;J,>ਂ;K0>,.ਲK;;J।ie, />0>.JBy-/>0> (v) fedUdie;K+?>ਲ>>,. "aldytd" :p.0-fej 32 (1) HUA?,N0,O "aldyld" WI "*O>O" .K?>ਂ0LpePalstel;J. ola, >,. "aldyrd" adHtdhyi.O:p.0-rereSiamrare;JYWHUA?,N0,O;JHeBcH "aldyld" WA "*O>O" .K?>ਂ0Lpdedadd!;J।re.ਲJਲ..ੱ,Joe:Jtl/>0> 32 (1) (4) 0Lp*O>O?0>ਂ0Lp?Jਲ>-pvfolfey ey..ੱ,Jraverch;J।tora.Krorea:p-?;0, .+0HBASAds.OJafee}fio0LpMUST MidlraUdIr;J। 10. 1]*O>allqld;Jto,0O.0*ਰ:>.0O.OOH (:K*0>) fq, bamad.J/>0> 9 .O:p.0-reMcIMS0O 'HOHaSdHS' >,.>ਂ.>WMdaltel;JTdre*O>O?0aadHal?J>>.ਲ;J।SJSle:JaS Pelo "atdytd" >,..>.,ਲ,tiddl,N0 ',O?*>00;Jਂ;J ra.:0+.00.>+WalPAASHErau hre>>.ਲAddraedaarn;J*O>O, *O>Oreਲp,O:.O ,KanSl. TTWd)mallotalIPL;JTHfo,0O.0*ਰ:>.0O.>oH (:K*0>) HaeaA.O,ੱ->ਂ ',OHUH? ,N0 ',Oਲ>!L;Kp.>;J"Iabsadd0OeddAddfee}!ਲ,Jall;JfitofeTeJ 566 ( iii) XXX ( v) XXXXXXXXXX ( vi) XXXXXX " 568 of word "business" to include in it "profession" as well. H the expression "business" is interpreted to include within its scope "profession" as well, E it would be doing violence to the provisions of the Act. Such interpretation would amount to first creating an imaginative lacuna and then filling it up, which is not permissible in law. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7486 of F 2001. From the final Judgment and Order dated 16.8.2001 of the High Court of Gujarat at Ahmedabad in I.T.R. No. 194/1986. Sameer Parekh, Ranjeeta Rohtagi and Deeksha Rai (for Parekh and G Co.), for the Appellant. V. Shekhar, T.A. Khan, Zangpo Sherpa, V. Gulati Abhigya and B.V. Balaram Das for the Respondent. The Judgment of the Court was delivered by G.K. CHOKSI & COMPANYv. COMMISSIONER OF INCOME TAX, GUJARAT [BHAN, J.] BHAN, J. 1. The present appeal has been directed against the final A judgment and order dated 16th August, 2001 passed by the High Court of Gujarat at Ahmedabad in Income Tax Reference No. 194/86 whereby the High Court has upheld the order passed by the Tribunal to the effect that the assessee was not entitled to deduction under Section 32(1 )(iv) of the Income Tax Act, 1961 (for short "the Act"). B 2. The question involved in the present appeal relates to the correct interpretation of Section 32(l)(iv) of the Act and that whether in the facts and circumstances of the present case the assessee-appellant, a Chartered Accountant's firm would be entitled to deduction under the said section. C 3. The brief facts are as under: The assessee (hereinafter referred to as "the appellant" ) is a firm of Chartered Accountants in Ahmedabad. The Assessment relates to the Year 1984-85 for the financial year ending on 31.03.1984. During the relevant D year the appellant constructed a building for the purpose of residence for its low paid employees and claimed initial depreciation @ 40% under Section 32(1)(iv) of the Act amounting to Rs.43,505/-on the actual cost of the building i.e. Rs.1,08,757/-. The Income Tax Officer (ITO) vide its order dated 15. l .1985 rejected the claim of the assessee-appellant on E the ground that the said provision is applicable to an assessee carrying on "business" and the same is not available to a professional. 4. The Commissioner oflncome Tax (Appeals) [for short CIT (A)] by its order dated 30.4.1985 reversed the order of the Income Tax Officer relying upon the judgment of this Court in Barendra Prasad Ray v. F Income Tax Officer, [1981] 2 SCC 693, and allowed the claim of the appellant with the further direction to the Income Tax Officer to grant initial depreciation @ 40% for the building erected by the appellant for the residential purposes of its employees. 5. Being aggrieved by the order passed by the CIT(A), Revenue filed an appeal before the Income Tax Appellate Tribunal (for short ''the Tribunal"). The Tribunal reversed the order passed by the CIT (A) and restored the order passed by the ITO. It was held that the appellant was not entitled to the relief claimed. That the judgment in Barendra Prasad H 566 SUPREME COURT REPORTS [2007) 12 S.C.R. 11. oH.OG&d.>ਲ.?->!?ੱਲK*O>deHardSale:ਰJ?J>O 00Ofalta/>0> 32 (1) (v) .?>O>,N0 ',OTH.>;?>ਲ>..p.J;JWlTSSolHe! rTpv;Jraaldyldfeag;0।Wot0;Jਂals4]Hold*O>O?0>ਂ ',Oਲ>!L;Kp.>;J, ASICTHBY-/>0>fed*O>Ofee]aHddd?>ਲOcaHelaieivaESI;?>ਲ>0;Jਂ;J।SH.OMoH, HB eqsPa o*O>O0LpWdleuige?>ਲOSai0LpTSeHidi,>;0AHSaici :p.?/>0[:K/K] fofdsHBIaeaqgsi*O>Ofee}0;Jਂ;0, BdTH.Oauld;0 wad.J/>0> 32 (1) .>ਲ>-rafSduldallpv;J.:0+atdylddd0;O;0।.?.?>0HSM JalMd, BY-/>0>/>0> 32 .O () fee] ',OMH>0,>ਂraMaarਲK;>ਂ.00/>0,alsapydei;0Ia!.J*L0,JBe rBSHSlaAeaq gsacdpa/K!;K?O!> ;O >ਂfp?ੱ -?ੱ />0>?>ਂre*ਰ.>0alldry;J।lo, u.JHoly,K?ੱ -?ੱ />0>?>ਂ;K0.?>O>>0,>ਂ ',OaHadodipy Widddawots/>0> (?>ਂ) fea.00/>0,alsmee;J।tonid)*O>atlPAL;Jtotial/>0> 32 (1) "aldyld" WI "*O>O" .K?>ਂ0LprePalisc;J, gy/>0>?>ਂ, Md¥l4, () We (v) 0LpoHong!.0/p,.0,0;Jਂatlled]|Gd,0O.0*ਰ:>.0OaH (:K*0>) .>,K0p,,ੱ->ਂ ',OrBSਲ>!L0;Jਂ;Kp.>aH!.?.?>0cals.OMoH'd, BasaHfee}, toMc SSmad.J/>0> 9 .O,.;,*J.>et:.-,J0>ਲSto0;J:Jra:p,p./,;J।->0,fee*ਰ>*,;K+?>ਲJal*J.>;K+?>ਲJMIHP.O0>ਲ।faBasHaAHSSalTTSIAS?ੱ 0O O,0feaHadde;JrarTa/>0> 32 :.O,WIT-Te.OHAASWfBU-HAAS?ੱ -?ੱ O,0>ਂfeeaHadu;0।1sloBas+J:ਲO.O:JmoOuls0LpHaeoHfee,ੱ->ਂ.J:.-,J0>ਲMlal0;Jਂalsi44Had!nTPaiadd0OIS0Lp:;J?p!0>ਲ?ੱ 0>alsl;J। 12.:>0Lp*O>olsspHrePeyre,ੱ-0;Jਂ..ਲ.O WUSa gsi.O.?.?>0calsead!nod.J/>0> 32 (1) WUISa ds0LpBu-/>0> 32 (1) (v) remIg?>ਲO"aldyid" >,..>nNdaafedloH?Jsdial0>ਲ...0;JਂaduldAleq"*O>>" ?J>>.ਲ;K?O।.?/>0:->.>sagra/>0> 32 (1) fee]atdurdWA*O>OBe?ੱ 0J0ੱ +>:J।ra.?/>0:->0O "atdyld" >,.fee "*O>O" 0Lp>>.ਲado.>grediy:J, ,>ਂnad.J/>0> 32 (1) fee.K?ੱ -?ੱ u>,.>ਂ, Wdudl, "aTdyrg" qi "*O>O" .>fadAdd.JotਲK;0;Jਂ:J। 13./>0> 32 (1) J.00/>0,adul;JloISHTGSi, .>J00J, UST?raedalddralariduldal.JHSapys;JYY "aldyldal*O>O" .OBerpvSlutara;J, IdIdreIScn!)Busyy;K?O!Jadd|/>0> 32 (1) >,..J?0,Kadel;J ";O TupiayPirarel",ISpuSJHUH?;JloCudaBy-/>0>MH;J>0,>ਂraBanteਲK;>ਂ, Ina!.J*L0,J ',O, Hal1eduldaaddiA hyiBe/K!,+KIdelo?ੱ -?ੱ />0>?>ਂfee*ਰ.>0alsiPAL;JIS.>*>ਲ+ad].>ਲBe*O>rap.?.?>0Sale0O:;Jral;J.ਲJਲ..ੱ,Jlo/>0>.JWAS,KieHUH?;Jla?ੱ -?ੱ ra/>0>?>ਂddafenastgi/>0>fed.00/>0,;K0.?>O>>0,>ਂ ',OoHaddd IPH/>0>। () MH,N0 ',OmedalUTS yi ',OTSS?>ਲO:.Kp.0JHoe!,K[sare;K0:.Kp.0JHoa.O.>.ਲO0>ਲ:p,p./,;J, />0> () ISHTGSI0>ਲ:,p/,;J, .>J00J, USTAaieddald, :.Kp.0Jrare,K[aMTSnStdidie.Oame.O:p,p/feeatdyrdyy*O>O.K?>ਂ ',Oਲ>!L;Kp.>;J n .>Widad THT G, .>J00J, UTAraedaldd.>u . />0> (v) rare.?/>0:->0OAes "aldyld" >,..J?0,Kals;J।TAT.,ਲ,TS;Jfa.?/>0:->TH,ੱ-,KHWS:Jfoatdyrdyy*O>O?ੱ 0Oyt?ੱ 0O;0veBal0Lpfoler.O,.ਲO0;JਂedlypaHdd TJHI,ੱ-?ੱਲSPELLAddl;Jlo/>0> (v) .O,.;,.?/>0:->.>egretਲ>-0Lp:J.,dado:J acyaldyldddd?>ਲO1eduldal0Lp ।By-/>0> () fed.?/>0:->0O.?>O>,N0 ',O"aldyid" .O0>ਲ-0>ਲ"*O>O" dad?>ਲOHS! T0LpIdidie.>ਲ>-..ੱ,>;J, adloBu-/>0> (v) fe, .?/>0:->0O.:0+ "atdytd" add?>ਲOATAT0Lpਲ>-:J.,dd..ੱ,>;J। 14. (SYTS30O,0O.0*ਰ:>.0O.OOH(:K*0>) tee]+J:ਲ>/>0> 9 (1) .O:p.0-fee]..ੱ,>, dHfee]YHWcI0OaH.O, *.0->>>?>ਂ, HedyyyreP,>0Oreiradie,Kdyed;O .ਲ OMOHP=Pelae: ">,. "atdyld" jenTU;JLOL:adneHe.,ਲ,;JHa!,J.?/JldHIlenfal eld.00p,0"IGaSTyyIdiot0>ਲalarare;JMHCOAHI.OSddiu0>ਲGH.Jladsra ;K00.J?0,K। :>!>rere;Jloape:p.0-fognor.J/>0> 9 (1) fed "alduld|asda" >,..J?0,K|di;J, GHfe "*O>O?0" 0LpaSaSH0Lp:J.,Wd¥.O+.>S|elgé0;Jਂ;JIS.Oreuse,K "TGAHS" 15.,0O.0*ਰ:>.0O.OoH (:K*0>) fea, (SMC SSnie.J/>0> 9 (1) fed?0,Ode "atduld:,p/" >,..JTenedd0;J:Jalac]To*>,p.J.O+pvonroars0;Jਂ;JHT.,ਲ,;J "*O>O?0asdHol" 0LpSPECaed,K,>;00ੱ +>।HaHS9 (1) fit?ੱ 0J:.-,J0>ਲ:p,p./,;J. Jnor.OyvIPUre?>*0.>;J, adlo/>0> 32 nad.OWrote V .O->!!Jfee]?>*0.J;J।»PYSSIPT.>+J:ਲ>RasaH.OWale,ੱ->ਂWe;>ਲ>,>ਂ ',O..ੱ,>tpy:Jn-rH0LpoHirreUSS:.-,Jta:J.,atldidcrata i;J।oH0Lpਲ>!L0;Jਂatl4]Hdd! 568 10. 11. 570 A Ray (supra) was not applicable to the facts and circumstances of the present case. That, Barendra Prasad Ray (supra) was decided by this Court in peculiar facts and circumstances prevailing in that case and the same was restricted to the facts prevalent therein. It was also observed that in the said case, this Court was dealing with another P.rovisiqn, i.e., B Section 9 of the Act and the observations made therein could not be applied to the facts of the present case. The Tribunal also noted the difference between the provisions of