Income Tax Tax v. Ram Kishan Dass

IN THE HIGH COURT OF DELHI AT NEW DELHI f (1) ITA No.1786/2OLO + Date of Decision: May 27, 20lL o/o COMMISSIONER OF INCOME TAX INCOME TAX TAX ... APPELLANTThrough: Ms. Rashmi Chopra, Advocate Versus RAM KISHAN DASS ... RESPONDENTThrough: Mr. Ajay Vohra and Ms. Kavita Jha,Advocates (2) ITA No.179O|2O1O o/oCOMMISSIONER OFINCOME TAX... AppellantThrough: Ms. Rashmi Chopra, AdvocateVersus ... Appellant RAM KISHAN DASS rhroush: Mr. Ajay Vohra fi::[3#.?:ilJ"# Advocates ,' - (3) ITA No.L794l2OL0 oh INCOME TAXTAX... AppellantThrough: Ms. Rashmi Chopra, AdvocateVersus COMMISSIONER OF INCOME TAXTAX RAM KISHAN DASS ... RESPONDENTThrough: Mr. Ajay Vohra and Ms. Kavita Jha,Advocates (4) ITA No.17O|2OL1 % COMMISSIONER OF INCOME TAX.,. AppellantThrough: Ms. Rashmi Chopra, Advocate Versus ... RESPONDENT RAM KISHAN DASS Signature Not Verified Digitally Signed By:AMULYACertify that the digital file andlTAs N os : t7 86 I L0, t7 90 h0,t7 9 4 / L0, 17 0 / 11, 237 / tt, I35O / t! & 238 / tlphysical file have been compared andthe digital data is as per the physicalfile and no page is missing.physical file have been compared andthe digital data is as per the physicalfile and no page is missing. \ ' , , t' r- \ Through: Mr. Ajay Vohra and Ms. Kavita Jha,Advocates (5) ITA No.237l2O11 o/o COMMISSIONER OF INCOME TAX INCOME TAX TAX ... AppellantThrough: Ms. Rashmi Chopra, Advocate Versus RAM KISHAN DASS ... RESPONDENTThrough: Mr. Ajay Vohra and Ms. Kavita Jha,Advocates (6) ITA No.135o/2o1o o/o COMMISSIONER OF INCOME TAX ... Appellant ... Through: Ms. Rashmi Chopra, Advocate Versus SUNDER EXPORTS ... RESPONDENT Through: Mr. Salil Aggarwal and Mr. PrakashKumar, Advocates (7) ITA No.238/20L1 % COMMISSIONER OF INCOME TAX ... Appellant ... Through: Ms. Rashmi Chopra, Advocate Versus RAM KISHAN DASS ... RESPONDENTThrough: Mr. Ajay Vohra and Ms. Kavita Jha,Advocates CORAM:HON'BLE MR. JUSTICE A.K.SrKRlHON',BLE MR. JUSTTCE M.L.MEHTA 1. Whether the Reporters of local papersmay be allowed to see the judgment? Yesmay be allowed to see the judgment? Yes 2.To be referred to Reporter or not? Yes lTAs Nos: r786/t0,1790hO,L794/t0, r70/t!,237/LL, L350/n &n8/!! t \4"t \ ,I I ' 3. Vr/heilier the jurigrneni. shnulcJ he rerrofced in the Digest? yes *Yl&'trffiI$,""LiQ,ce[]. L. For orcle"rs, see fT,A ,ftfo, nvvn/2&5.t),, tiilecJ as ccmtrirs.ssfnm4}t" elffsaeelrpae fa.rr rr fjiishan,$arl.loEt f*,anm f,{,isfnam .{ng;ro Ftrt:, t[,,t:e{, ciecirlec:ion 27ttt [,4ay, ZCLL tt).H,tt--,--ri(^-0-tM"f,,,MHi"l'trA{.$i.rDeii:},t"*_,i,irirat *-{^i.#5t[,ffEn"' (tur"pffiffi) May 27, :ilS3"erd t,- I lnn T['{E h[nGfi-fl [cCDtJfiq,T" ]oF [DE[-['il[ ][lt\T'[\ [DIEI-ll-{lll] /1\f . \r,lryA_Iu0" [n775l?0n0] Date of Decisiot\: [MaY ][27, ][201-7]l[\lc0ME TA\X "'" [/APPe[[an'r1l]Through: MT. Prent [l-ata ][Battsal, ][Sr. Aclvocate]witlr Mr. Deeiral< [Atrad, Advocates]. Versus %c"oMfvt[55[ON[ER 0[: xsilShlAhl sAROOP R/-\M [E(ll5!'{A [AGP.O ][pVT', ][[-]rm" ]""" [RESPOli\ilDFltN-il"]Tlrrouglr: Mr. l(.P' [M'all ][atrd ][Ms' ][l(avita ]Jlra,Advocates ( 2 ) nT[\_li\ll o. n 77.6/? qf 0 %COMM[Ss[ONtrEIR, [[\\ICOME ]f'AX ;.. APPellllar-r{iThrough: [' ]Mr, Pretn [Lata ][Bansal, ][ST. ][/\dvocate]witlr Mr. Deebal< Anad, [Advocates]\/ersus mlbrnnru sARoop R/q,M [([5FIAtu [l\GFto ][ltrvll. ][[-T'D. ]"'" [IRESPO[\lDE[\nr]rhroush: and Ms r(avita Jlra,XJrJlS;Jt,, (3) rT&Mo'nZJZ/2ot1LQ % COMMilS$IONIER OF [[\[COME'[-/s\X ArppellllarirtOF [[\[COME'[-/s\X [[\[COME'[-/s\X .Through: [Mr. ][Prenr ][Lata ][Bansal, ][Sr' ][Advocate]with Mr. Deepal< Anad, Advocates * Versus %c"oMfvt[55[ON[ER 0[: xsilShlAhl sAROOP R/-\M [E(ll5!'{A [AGP.O ][pVT', ][[-]rm" ]""" [RESPOli\ilDFltN-il"]Tlrrouglr: Mr. l(.P' [M'all ][atrd ][Ms' ][l(avita ]Jlra,Advocates ( 2 ) nT[\_li\ll o. n 77.6/? qf 0 %COMM[Ss[ONtrEIR, [[\\ICOME ]f'AX ;.. APPellllar-r{iThrough: [' ]Mr, Pretn [Lata ][Bansal, ][ST. ][/\dvocate]witlr Mr. Deebal< Anad, [Advocates]\/ersus mlbrnnru sARoop R/q,M [([5FIAtu [l\GFto ][ltrvll. ][[-T'D. ]"'" [IRESPO[\lDE[\nr]rhroush: and Ms r(avita Jlra,XJrJlS;Jt,, (3) rT&Mo'nZJZ/2ot1LQ % COMMilS$IONIER OF [[\[COME'[-/s\X ArppellllarirtOF [[\[COME'[-/s\X [[\[COME'[-/s\X .Through: [Mr. ][Prenr ][Lata ][Bansal, ][Sr' ][Advocate]with Mr. Deepal< Anad, Advocates * Versus r*[sF[An{ SARQ(DpR,I\M ${[SF{/\N AGRO PV-II" LTD" [.", ][R,IbSPQNI]D.EhJT], Througlr: Mr. l(.P. Mall and Ms. l(avita Jlra,. Aclvocates (4) nTA.L{sJ9-F-ry4mq %COMM[55NON{ER OF IIVCOMH TAX IIVCOMH TAX " [AnaPeilliar"lt]Through: Mr. Prenr Lata Bansal, [ST. ][Advocate]rruith Mr, DeePal< Anad, [Advoca[es] lTAs No.1775 / lOtO,l776/2OtO, t777lllt), [Lg65/2OtO, Z.OZZ/Z.OilO,2033/2010,20341201'0,2O3sl2O'Io,]zo? 6 / 20 ro, 2037 / 20 tQ, 203 8 / zoto, [2Q39 ]I [20 ]!0, [20 ][46 ]/ [20 ][ro ][& ][20 ][47 ]/.20 [t0]zo? 6 / 20 ro, 2037 / 20 tQ, 203 8 / zoto, [2Q39 ]I [20 ]!0, [20 ][46 ]/ [20 ][ro ][& ][20 ][47 ]/.20 [t0] Page 1 o[ 5 i-' /@ Versusnbm,o PVT" [-TD. '." RlEsPohnDEhilT[-TD. '." RlEsPohnDEhilT'." RlEsPohnDEhilTRlEsPohnDEhilTand Ms' l(avita Jlra,l(avita Jlra,Jlra, Versus. ts[Shfll\fiu sl\ROoP ts/{M K[5[-nlr\hn nbm,o PVT" [-TD. '." RlEsPohnDEhilT[-TD. '." RlEsPohnDEhilT'." RlEsPohnDEhilTRlEsPohnDEhilT". [Jhroush: ]XJ"JI5i"It" and Ms' l(avita Jlra,l(avita Jlra,Jlra, (5) Hl/A liVo.2032 I?ALArry. rry. % %COMMIS5IONEP. OF tifrUCONnE.tf/qX ,ArppelllamtThrouqh:Mr'PremLataBansal,Sr'.Aclvocate.;witlr Mr. DeePa.k Anad, [Advocates] Versus tsISI.IAN SAROOP RAM K[sF[ANil [PVT, ][[-T'D. ]"". [MNSPOhJIDENT']-l-hrnrrnlr' [' ]| | ll vuv: l.N.lr. l<.P. Mall atrcl Ms. l(avita Jlia, ,(6) @ %COMM[55[Oh{FR Ot': INilCOME T'AX ".' [,\6npefillamrt]' :ata ['Bansal, ]Sr' Advocate. Througlr: ,Mr. Pretn witl-r Mr. D'eepal< hnad, Advocates Versus ts[s'uqnNr 5AtR00p Rl\M K[5fi-[A[\i AGRO P\rT. LTD" ".. [lRESlPOFliDEIUT]rhrouslr arrd' Ms. r(avita Jlra,Ms. r(avita Jlra,r(avita Jlra,Jlra,XJ"::ji"iItll arrd' Ms. r(avita Jlra,Ms. r(avita Jlra,r(avita Jlra,Jlra, ,(7)@ ['****tisslohnnm, o; u*ot** TAJ( ." /\prpettnrn'itThrouglr: 1"1r, Prent Lata Bansal, Sr. Advocatewith Mr. Deepal< Anaci, Advocates Versus ffi r s r-n A m sA *o er [p ]*^ " " y \'fl3.?fr ^ffi f i.?11, 5'l"n i 5 Advocate^tr''iilTt3 (R) \u/ tl-r'rA n Hra [\io.2035/201,0_ _ o1.lv t i' I TAs No.1775 I 2010, I77612010, t777 /2010, !9Q5ll}tl,7O32/?.J1A,2033/2010,2034120t0,2C3512010,2036 i 20 10, 2037 / 20 tO, 2O3 / ?01 i, 203 I / [20 t"O, ][20 ][45 ]/ [?O ]r0 [& ][20 ][47 ]/'2.0 tO' Fa13e 2 of 5 : co M M [r ]s 5 I o [r\n ] [F" ][o ][lF'' ]\on?# 5,f;^o, r' [re ]m [t-a ][ta ][e ][a ][n ]"' ;'; [fY^ffi ]['lf$]with Mr. Deeiral< [Anad, Advocates] Versus B[5hlA[$ SP\ROOPRA'M K[S[-iA\N.A.GRO P\/'r. r.-TD.trr- RIESIPOilUDENNT"t/^,,i1-^ ll^-I | | rr vs:rr rrrr\t taln'r'Mr. l(.P. Mall andlvl5. l\crvlLo Jllcl [,.]Advocates!,\ (e) r.llA* r\ro"2096/?QJLQ . \/arcr rcvvtJvJ, ITA\5 No.1775 / 2OIO, tllA/ZOIQ, [1777 ]/2OIO, [!965/2010,2032/20t0,2O33/ZO(O, 2034/2010,2035/2010,] zoz a I zoto, 2037 / 20 ro, 2o3B / 2010, [2039 ]I [20 ][10, ][20 ][46 ]I [2010 ][& ][20 ][47 ][/ ][20 ][t0] Page 3 of 5 ' [- ] @ rEB r 5 r-n A Nr 5A R [o ]o P o^ *tl.ll3,my t "' ^ffi f i.:'Yii 5il ?',.' ; nffi l$lly 5 HJAdvocates ( 12) lllfA liN.o*20r39/20 nCIr 'o/o' OF IINCOME /AppeflllamtCCI)MMIS5IONER Tp\X Through: Mr. Prem [Lata ][Bansal, ][Sr. ][Advocate]with Mr', DeePal< Anacl, Advocates. Versus E}NShNPIIU SAROOP F"AM K[S[-f,/\[V [PVT, ILTD. ][,"" ] Through: Mr. l(.P. Mall and Ms. [l(avita ]Jha, [Advocates] ( 1 3 ) ITA.j{P= 2 0t4'6.i49-!10 %fr**MrssiorvHR oF t\??oT5J ',-rT. [prem ]Lata Barr, ;;,1%%T33swith Mr. Deepa'l< Anad, Advocates \/arcr rcvvtJvJ, ITA\5 No.1775 / 2OIO, tllA/ZOIQ, [1777 ]/2OIO, [!965/2010,2032/20t0,2O33/ZO(O, 2034/2010,2035/2010,] zoz a I zoto, 2037 / 20 ro, 2o3B / 2010, [2039 ]I [20 ][10, ][20 ][46 ]I [2010 ][& ][20 ][47 ][/ ][20 ][t0] Page 3 of 5 ' [- ] @ rEB r 5 r-n A Nr 5A R [o ]o P o^ *tl.ll3,my t "' ^ffi f i.:'Yii 5il ?',.' ; nffi l$lly 5 HJAdvocates ( 12) lllfA liN.o*20r39/20 nCIr 'o/o' OF IINCOME /AppeflllamtCCI)MMIS5IONER Tp\X Through: Mr. Prem [Lata ][Bansal, ][Sr. ][Advocate]with Mr', DeePal< Anacl, Advocates. Versus E}NShNPIIU SAROOP F"AM K[S[-f,/\[V [PVT, ILTD. ][,"" ] Through: Mr. l(.P. Mall and Ms. [l(avita ]Jha, [Advocates] ( 1 3 ) ITA.j{P= 2 0t4'6.i49-!10 %fr**MrssiorvHR oF t\??oT5J ',-rT. [prem ]Lata Barr, ;;,1%%T33swith Mr. Deepa'l< Anad, Advocates Versus[CI:] , EISE-flAIV $d\ROOp FrAM KnSil-[A[V /AGRO [pVT" ][[-1f8" ]"." [lRE5tl'}CI)fi\lDlEhllli]Tlrrouglr: Mr, l(.P. M,all and Ms. l(avita Jlra, Advocates (14) [T'A_[uo=2047/AtQnCI, % %COMM[55[ON{ER OF IIUCOME ll"AX ." Appelllant ''rroush: H[r'i;?:r:H,?il*, l;,"11I?:3" Versus BIs[-nA[\n SAROOp tsAM K[5l-ilAnU AGRO [pvT'," ]LTD. """ RIESPO[\lDEh,lllfThrough: Mr, l(.P. Mall and Ms, l(avita Jha, Advocates sCIrm,nx{ihn0,Nn' B[-E M R,,!UST'ICE l\" K. 5n [{lRlt-{oNt, tsf-F MR,. JUSTfl CE M"L"MEFITA 1. Wliether th'e Repo;ters of local papersmay be allowed to see the judgment? Yes lTAs No.1775 / 2oIO, t776/2OLO, L777 /2Q10, L965/2010,2032/2010,2033/201,0,7034120t0,203512010,' 2036/2OtO, ZOZ7 /ZOLO,2038/20tO,2039/20L0,2046/20]:0 & 2047 /2010' 2036/2OtO, ZOZ7 /ZOLO,2038/20tO,2039/20L0,2046/20]:0 & 2047 /2010 Page4 of5 . o'r"- May 2v, 70ln-1/rd ' tTAs No.t775/ zOtO, 1776/2OtO,:.1777 /zOtO, !s6s/2ltO, [)OZZ/ZOIO, ][2O33/2OIO, ZOZq/Z.}\O, ]IOZSiZOtO,203 6 / 20 rO, 2037 I [?O ]tO, [2038 ]/ [2010, ][2O3g' ]/ [20 ]\0, [20 ][46 ]/ [2OrO ][& ][20 ][47 ][i ] [tO] Pagc 5 ol-5 + (1) ITA Jrlo.3.77sl20n0 % Darte of Decision: Decision: ItAaY 27, .2077.... [Appefllant]to'onll?:3t" Darte of Decision: Decision: ' IIVCOME'l'AX. lrrousr-r: il[^tffi']'"'"1T"7il.*, Darte COMMISSIOINEF{ OF IIVCOME'l'AX. ' IIVCOME'l'AX. Versus BlS[-lAN SFIROOF RAM Kl5frflA.l{ AGFTO PVT. N-TD. ... [RESPOIVDEfl\XT'] ... .Througir: [Mr. ][K.P. ][lvlall ][and ][Ms. ][Kavita ][Jlra,]Advclcates (?) !-ta ruo " rzza;lzal lQ o/o coi* M r s s ro tN E P' t o t \?,ffi 5,J^**,. pretr', Lata Ba ns, | :';lt[?Ln3$ lt4t' Deepak Anad' Advocatest.,*rlith B,tSl-[/\M SAROOP R/\M K[5[-14\l{ ,qcn{} [piJ'T. ]LTD" ... [frlESPOn{pEAIT]Througlr: . Mr..l(,F'. Mall and Ms, l(avita Jha,Advocat-esThrouglr: . Mr..l(,F'. Mall and Ms, l(avita Jha,Advocat-es (3 ) IHU o . ]' 7 7'/ i?9J-s. % COMMISSIONER. Of- INCOIWE ['l-A)( ] .. Appellant :'rrousrr: ill,ntffin'#.?ilTj, T;,411?!3t" . Versu.s Bist-Mrht $AROOP R,An4 KlSl{At{ AGF.O P\/'r" LTD; ... [R.ESPONbEIVT']. Thj'cLrgh: 14r. K.P. lvlall ancl' Ms, Kavita .llra,Advocates ( 4 ) UA_[ds'--1-9.6 rygo 1 q, %COMM|SSIOIVER OF il\lCqME ['[',U( ] .,. Appetrlartt r Through: . with Mr. Prem [t1r. Deepdl< Lata Bansal, Anad, Advocates5r. AdvocateffAs t'to.1775i 2OtO, r776/2q.A, U77 /zO:.Q,1,)65/2C10.203';./2O!O,2Lt33/2O'10,2.13,r/2OtO,2D3S/2OI1,2036/20'J.0, 2037 /2010, 2038/Z0t0t 2039/2C:.0, 2046/7-0tO & 2047 /2o1o Page L ot 23 i Versus Bl5l{/qr'l SAROOP Rl\M K[S[-[AIV AGRO PVT'. !-'lrD. .". RESPOIUDEfiilTrhroush: and Ms. l(avita Jlra,X;;Jl.5iuIu,' rhroush: and Ms. l(avita Jlra,X;;Jl.5iuIu,' (5) ilT',A, rVo. 2Od2l2O10 o/o COMMISSIONER OF [[\ICOME T'AX .. Appenlan'rt Through: Mr. Prem Lata Bansal, Sr. Advocatewith Mr: Deepak Anad, Advocates Versus BI5[-[A[\I SAR.OOP Rl\M KISI{AMGRO [pVT. ][_T'D. ... RE5POIUDEIVTThrough: Mr. K.P. Mall and Ms. Kavita Jha,Advocates (6) lli-A iVo.2033/20n o %COMMISSIOI\IER, OF IINCOME T'AX ..." Appellamt T[rrough: Mr. Prem Lata Bansal, Sr. Advocatewitlr Mr. Deepal< Anad, Advocates Versus Page L ot 23 i Versus Bl5l{/qr'l SAROOP Rl\M K[S[-[AIV AGRO PVT'. !-'lrD. .". RESPOIUDEfiilTrhroush: and Ms. l(avita Jlra,X;;Jl.5iuIu,' rhroush: and Ms. l(avita Jlra,X;;Jl.5iuIu,' (5) ilT',A, rVo. 2Od2l2O10 o/o COMMISSIONER OF [[\ICOME T'AX .. Appenlan'rt Through: Mr. Prem Lata Bansal, Sr. Advocatewith Mr: Deepak Anad, Advocates Versus BI5[-[A[\I SAR.OOP Rl\M KISI{AMGRO [pVT. ][_T'D. ... RE5POIUDEIVTThrough: Mr. K.P. Mall and Ms. Kavita Jha,Advocates (6) lli-A iVo.2033/20n o %COMMISSIOI\IER, OF IINCOME T'AX ..." Appellamt T[rrough: Mr. Prem Lata Bansal, Sr. Advocatewitlr Mr. Deepal< Anad, Advocates Versus tsl5l-{Alv SAROOP Rl\M K[St-tAN AGRO [pVT'. ]I_T',D. ... RE.5PO][VDE[VTTlrrough: Mr. K.P. Mall and Ms. Kavita Jha,AdvocatesTlrrough: Mr. K.P. Mall and Ms. Kavita Jha,Advocates (7) [TP\ [V'o" 2O34l2oXO 3""*M[ss[oilnrn, oF rr',,!comE TAX : ... aeroellasxt Thro.ugh: Mr. [prem ]Lata Bansal, Sr. Advocate. i i with Mr. Deepak Anad, Advocates Versus tsIsHA[\I SAR.OOP R,I\M K[S0-XAN AGRO FVT" N-TD. ... RE5POhNEENITThrough: Mr. K.P. Mall and Ms. Kavita Jha,Advocates (B) [T'A t\No.203S/2O].0 % lTAs No.17751 2OrO,,:.:776/2OtO, t777 /?O1,O, rg6s/2OtO,2O32/2O:]O,2O33/2Ot0,2034/20L0,203;/2OLO,2036 /20L0, 2037 / 2010, z03g/ 20t0, 2039 /2010, 2046 / 20L0 & zo47 l2oro . Pagez of 2? '% ' - COMMISSIONIER OF II\ICOME lfA.X .. ApSaeflflanlt Througlr: lvlr. Prem Lata Bansal, 5r. Advocate' witlr Mr. Deepal< Anad, Advocates Versus : B r s r-r A'ru sr\ R o o P * *tfH,, tfr?,y i "ffi l"oiJut 5,I*, 5 [trJ]Advocates" [d ]^tr (9) ITA [\1o"2036/2CIn0 coMMrssloruER *t l\??ff5'J\,. prem Lata Bansr',';f%ffiHl$ .with Mr. Deepal< Anad, Advocates IVgrsus . ts[SHrqlV SAROOF R,Alvl K[50'iANl AGRO PVT'. !-TD. ... [qESPOIUDEnUT Tirrough: Mr., l(.P.'Mall and Ms. l(avita Jha,Advocates (10) ! frA mlo.2o37l2@lt0 % coMMxssro*'R oF '\l##5J^"tr. prern Lata Bans.,,';f%B?LnlS with lvlr, Deepak Anacl, Advocates Versus EIS!-!A[V SAROOF [qAM K[5fi.NAAJ I\GRO P\/I-. LTD. ... RESPOI\NDEfiNTTlrrorrqh: Mr. l(.P. Mall and Ms. Kavita Jha,.Advocates (r1) lIA lvo'Zclss/2-on-qlIA lvo'Zclss/2-on-qlvo'Zclss/2-on-q (r1) lIA lvo'Zclss/2-on-qlIA lvo'Zclss/2-on-qlvo'Zclss/2-on-qo/o COivlM[55[O[\{ER OF INICOME T'AX ,,.. Apnaellamt. .. Thror-rglr: with'Mr. Mr. Piem Lata Deepal< Bansal, Anad, AdvocatesSr. Advogate Versus rTAsNo.177sl 2010,1776/2010,L777/2010,1g65/2OtO,'2032/2010,2033/20t0,2034/201.0,2035/2010,203 6 / 2070, 2037 / 20 r0, 2 039 / zo].o, 2o3e / 2oto, 20 46 / 20L0 & ? o 47 / 2o1.o Page 3 of 23 BIsFIAIV SAR.OOP RAM KISI{ANI AGR@ PVT" [-TD. ,.. [R.ESPONilDENT]Through: Mr. l(.P. Mall and Ms. l(avita Jlra,AdvocatesThrough: Mr. l(.P. Mall and Ms. l(avita Jlra,Advocates (12) nT'^q [so.zq3e/?qnq %COMMISSIOIUER OF IIUCOME TrqX .. AppellarntAppellarnt OF IIUCOME IIUCOME .. AppellarntAppellarnt-flrrough: Mr. Prem Lata Bansal, 5r. Advocate. witlr Mr. DeePak Anad, Advocates Versus Bnsl-ilAl\l s/-\ROOP R,AM K[SI-!AN AGRO [PVT'. !-T',D. ][... ][R,EsPOff{iDENqr]Tlrrough: Mr. K.F. Mall [gnd ]Ms. Kavita Jlra; [Acivocates] ( 13) [1]-A Nlo. 20zl-612On0 % co M.M t 5 5 [o hl E R o F I FI Q@$45,J^nr, pr.e m Lata e u n, u t,'sfYrffi Ln3#:Mr. Deepal< Anad, Advocates -with Versus B[S[{l\t{ SAROOF RprM tQ.S!{/rN AGRO PVT'. [-T'D. ..' [IRESF'OISDENJT]Through: Mr. l(.P. Mall and Ms. l(avita Jlra, Advocates (14) !T'A tllo. 2o4Z20nr0 '% COMMISSIONER OF [NgOrulE TAX ".. [Appellant] ".. . [Tlrrouglr: ][Mr. Prem ][Lata ][Bansal, ][Sr. ][Advocate]' witl-r Mr. Deepal< Anad, Advocates Versurs tsISI-!AIV SAR.OOP RAM [(ISF{AIV AGR@ PVT. LT'D. ... RESPOIUDFI\IT'Througlt:' Mr. Kr,P. Mall and Ms. l(avita Jha, Advocates ggRAM: t-{oN'[3,[-E MFt. jUSTiCE 4. B(.5[KF{[FnoN'Bt_tE,MR. [jUST'ICE ]M " n_. M E[-iTp\ 1. Wltether tfre Repofters of local [papers] lrAs No.!775/ 2O!O, 1]76/?010, t777 /2O7O, tg65/2)t1,2o32t)Orc,2033/20t0,7034/2010,203512J10,2036,/ zOtO, 2037 /?OLA, 2038 / zOtO, ?_O39 /2O1O, 2046 / 2O:..O &. 20 t7 / 20!O P.tlie 4 of 23 l, . [','] 'rnay.be allowed to see the judgment? (14) !T'A tllo. 2o4Z20nr0 '% COMMISSIONER OF [NgOrulE TAX ".. [Appellant] ".. . [Tlrrouglr: ][Mr. Prem ][Lata ][Bansal, ][Sr. ][Advocate]' witl-r Mr. Deepal< Anad, Advocates Versurs tsISI-!AIV SAR.OOP RAM [(ISF{AIV AGR@ PVT. LT'D. ... RESPOIUDFI\IT'Througlt:' Mr. Kr,P. Mall and Ms. l(avita Jha, Advocates ggRAM: t-{oN'[3,[-E MFt. jUSTiCE 4. B(.5[KF{[FnoN'Bt_tE,MR. [jUST'ICE ]M " n_. M E[-iTp\ 1. Wltether tfre Repofters of local [papers] lrAs No.!775/ 2O!O, 1]76/?010, t777 /2O7O, tg65/2)t1,2o32t)Orc,2033/20t0,7034/2010,203512J10,2036,/ zOtO, 2037 /?OLA, 2038 / zOtO, ?_O39 /2O1O, 2046 / 2O:..O &. 20 t7 / 20!O P.tlie 4 of 23 l, . [','] 'rnay.be allowed to see the judgment? 2. To'be referred to Reporter or not? Y 3. Whether tlre [judgment ]should bereported in tlre Digest?reported in tlre Digest? M,X-.MEHTA, l. [(Oral)] 1. The above 14 appeals are directed agairrst tlre common order ofthe lncome Tax Appellate Tribunal [(for ]short, "the Tribunal") dated 18thSepternber 2009 whereby tlre appeals filed by tlre Assessee againstthe order of CIT(A) were allowed and the cross appeals filed by theRevdnue were dismissed. Tlu following questions of law arose in alltlrese appeals: t.Whether the Ld. ITAT erred in law in holding tlrat tlreassessment order was barred by limi,tation?assessment order was barred by limi,tation? il.Wlrether the amendment to the proviso to Section 742(2C)of the Incomg Tax Act, 1961 with effect from 01.04.2008was clarificatgry and'thus retrospective in nature?of the Incomg Tax Act, 1961 with effect from 01.04.2008was clarificatgry and'thus retrospective in nature? 2. The facts, as gatlrered fronr the inrpugned order, are tlrat tlreAssessee had filed its returns for different assessnrent years. Therewas a search conducted by the Revenue on tlr.e Assessee ori 7thOctober 2004. Tlre last pqnchnama was drawn on 6th Decenrber 2004.A notice under Section 1534 of the lncome Tax Act (for slrort, "tlre Act") was'issued upon the Assess.ee on 16th May, 2005. The assesseelTAs No.f 7sl 2or],1776/20!0, \777120t0, t96s/20L0,2032/2010,2033/201,0,2034/201,0,2035/2OIO,2036/2010, 2037 /2O\O, 2O3\/2O!O, 2039/2OtO, 2046/20],0 & 2047 /2_OtO filed retr-rrn in response to [tlris ][notice. ][On ][12th ][December ][2006, ][tlre]Officer ordered [for ][conducting ][special ][audit ][as ][per ][tlre]Assessing provisions of Section I42 [(2A) of ]t[e Act [and gave 90 ][days ][time i.e' ][up]to 12th March 2OO7 to submitthe [report. The Auclitor ][made ][a ][requestto]the Assessing Officer for [seeking extension ][of ][time ][for ][conrpletion of]audit stating that the Asses.see did [not ][co-operate ][irr ][the ][proceedings.]Consequently, Assessing Officer [extended ][the ][tinre fronr ][12th ][Mbrclr,]2007 to 20th April, 2OO7, [Tlre Assessing ][Ofiicer again ][extended ][the time]for completion of tfre special [audit ][up ][to ][2Qth ][May, 2007. ][T[e ][AO again,]. forthe third tjme, extendecl [the time for ][completion of special audit ][up]to 5th'June, 2007, The aqdit [report ][uncJer ][Section ][L42(28) ][of tlre ][Act]came to be subnritted by the Auditor [on ][4t^ ]June, [2007. Tlre AO ];lassedthe assessment orcJer under [Section 1534 ][ancl ][143(3) of ][the ][Act ott ][3'd]August, 2OO7 . 3. ["These ]appeals against the [rlifferent ][orclers ][ot' ][the ][Assessing].Officer [came ][to ][be ][dispoqecJ ][of by ][CIT(A) ][vide differetrt orders. ][Some ][of], [the ][issues ][on merits'werq ][decided ][by ][CIT(A) ][against ][the ][Revetrue ][and]sonre against the Assessee. The issue [regarding ][limitation ][of]finalization of assessment [under ][Section ][153,A ][was decided ][against ][the]Revenue. The cross appqals [field ][by ][the ][Assessde ][and ][tlre ][Revenue]agaihst the order of CIT(A) were [disposed ][of ][by the ][Tribunal ][vide]impugned order only on the issue of [limitation. ][Since ][Llre ][issue ][of]limitation of finalization of assessment [wqs ][decided against ][the]lrAs No.17751 2oto,1776/201;0, 1777 l2ot1, tg6s/20to,2032/2010,2033/201.0,2034/2010,2035/2010'2036/20tO,2037 /zOtO,2O3E/2]]:O,2C39/20rO,2046/20!0 [&2047 ]/2O!O page 6 of 23 @ revenue,theTribunaldidnotchoosetodecidetheotherissuesraised on merits. 4,TheTribunaIlreldthat.!|reAocouIclnot.|raveextendedt|retimeforauditgr,sreportonhisowninasmuclrasthispoweroftlreAotoextendthetinre.ofa,uditrep.ortsuomotuunderSection]-42(2C)can.]eto be inserted [by ][way ][of ][an ][amendment ][vlith ][effect.from ][1't ][April,]2008'Consequerrtly,hehe|cltheassessmentmac|eunderSectionl53AoftheActinrespectoftheaSsessmentyearsinquestion.tobebarredr challenged [bY ][the]by lirnitation' [lt ][is ][this ][i'mpugned ][orcler ][that ][has ][been]Rbvenue [bY ][waY of ][these ][appeals'] 5.Thereisngdisputewit|.rrqgardtothedates.Theorr|yissueisrvisionsofSectionJ'42(2^)'(2C)andwith regard [to ][interpretation of ][prolons or ][seLLrur]1538(1) [Exptarration ][(ii). ][For ][betier ][understanding ][t5ese ][Sections ][are]reproduced [herei nbql ][br'v:] 'assessrxnent'-(7) ' For tll"1'42' Enquiry befare purpolre oi [mutcing ][an ][assessmenf-'under ][this ][Act' ][the]ns,"'sing [Cfficer-may serve ][on ][a'ny ][person ][who ][has]ntade a [return ][under ][iiction ][775WD ][or Section ] orinWhosecasetnetii,eallowedundersub-section(1)'o'i'iiition't3gforfurnishingthereturnhashim' [-on ][a ][clate ][to ][be]. expired a [notice ]therein sPecified'''"qii'ing . XXX tQA) [tf, ][at ][any ][sta-ge ][of ][the ][ptt?:1i:gs ][before ][him']tl'te [Assessing [Officer']' ][havi'ng ][regard'b ][the ][nature]una"'J'ipt;;ity [of ][tn'e'aciouitt ][oT ][tnu ][assessee ][and]tn-' i'"ti'["iit 9r [tne ][ivintte' ][is ][of ][the ]"P!!:"i-:13:'i':'"^'is necessary [50' ][to ][clo' ][he ]['nay'' ][with ][the ][pnu'oy:" ]lrAsr.lo.1775l [zoro,L716120!0,r71i/zo!o,rnitr'oro,;-ozzlzo,to;-zo3.3l2oto')-03412010'203s/'20t0']' )ii i t r*"i, t [ro ][to,'o=a ][t:'l'o' ][zoig ] [zo ][to' ][20 46 I ][zo ][$ ][& ][?'0 ][47 I 20 1'o]^=, of 2?' "'age7 Y, approval of the fChief [Commissioner ][or]' Commissionell clirect t/re. assessee ' to get the. accounts audited by an accountant, [as ][defined ][in ][the]Explanation below sub-section [(2) ]of [section ][288,]' nontinated by the [Chief ,.Commissioner [o.r]Commissionerl in this behalf and [to ][furnish ][a ][report]. of such audit in the prescribed form duly signed [and]verified by such accountant and setting [forth ][such]particulars 'particulars as may be prescribed and such [other]as the [Assessing Officer] ntay iequire; '[Provided tha.t the Assessing Officer shall not directthe as5essee to [get ]the [accounts ][so ][audited ][unless]the assessee has been [given ]a [reasonable]opportunity of being heard.l.the as5essee to [get ]the [accounts ][so ][audited ][unless]the assessee has been [given ]a [reasonable]opportunity of being heard.l. [(28) [The ][provisions ][of ][sub-section (2A) ][shall ][have]effect notwithstanding that the accounts. of [the]assessee have been dudited [under any other ][law ][for]the time being in force or otherwise'l , tQC) lvery report under sub-sectiort ['(2A) ]shall befurnished. by the assessee to the fAssessing'Officer]within' such [period ]as may be specified by [the][Assessing [OffiCer]:] '[Provided tha.t the Assessing Officer shall not directthe as5essee to [get ]the [accounts ][so ][audited ][unless]the assessee has been [given ]a [reasonable]opportunity of being heard.l.the as5essee to [get ]the [accounts ][so ][audited ][unless]the assessee has been [given ]a [reasonable]opportunity of being heard.l. [(28) [The ][provisions ][of ][sub-section (2A) ][shall ][have]effect notwithstanding that the accounts. of [the]assessee have been dudited [under any other ][law ][for]the time being in force or otherwise'l , tQC) lvery report under sub-sectiort ['(2A) ]shall befurnished. by the assessee to the fAssessing'Officer]within' such [period ]as may be specified by [the][Assessing [OffiCer]:] Provided that the Assessing Officer may, [Suo ][motu,]or on an application made in [.this ][behalf ][by. ][the]assessee anc! for any [good ]and sufficient [re'ason,]extencl the Said [period ]by such further [period ][or]periods as fie thinks fit; so, however, that [the]period or periods so extended shall not, in any .case,exceed one hundred and eighty days front [the'date]on which the direction under sub-section [(2A)is]received by the assessee. L53ts.' (7) Notwithstanding anything [contained ][in]' secti6n 753, the' Assessittg Officer shall [ntake ][an]order of assessment or reassessment,-(a) in of each assess/??ent year falling within six.respect assessn're nt years referred to in clause [(b) ]o1 [z3[sub-]' section [(1) ]ofL section 7534, within [a ][period ][of ][two]years ffom the end of the financial [year ]in [which ][the]last of the authorisa'tions [for ][search ][under ][section]1-32 or for' requisition under section l-32A wasexecuted; lTAs No.1775l zOtO, [L776/.20l:0, ][1777 ]/2O1O, []:965/20i:0, 2O32/20!O, ][2O33/20LO, 2034/2OIO, ][203s/2010,]2036 /z.OtO, 2037 /7OrO, [2038 ]/2010, [2Q39 ]/ [20L0, ][2046 ]I [2010 ][& ][2047 ][/20rO] - (b) in respect of the assessme nt year relevant to theprevious year in which.search is cottducted underprevious year in which.search is cottducted under. sectiot"t L32 or requisition is made under sectionJ-32A, within [q ]period of two [years ]from the end ofthe financial ye?r in which the last of [the]authorisations for search under section [732 ][or ][for]requisition under section 132A [was ][executed ][: ][']J-32A, within [q ]period of two [years ]from the end ofthe financial ye?r in which the last of [the]authorisations for search under section [732 ][or ][for]requisition under section 132A [was ][executed ][: ]['] [trr'ovided [that ][in ][case ][of other person referred to ][in]section J-53C, the [period ]of limitation for making [the]assessn?e nt or reassessment shall be the [period ][as]referred to in clause [(a) ]or clause [(b)'of ][this ][sub-]section or one year from the end of the financial [year]. in which books of account or documents or assets' seized or requisitioned are handed over under.section 153C to the Assessing Officer [having]jurisdiCtion Qver such other person, whichever isIater:l [trrovided further [that ][in ][the ][case ][where ][the ][tast]. of the authorisations for search under sectiott'732 or. for requisition under section 732A was executed'during the financial year comnlencing on the 7st [day]. of April, 2004 or any suhsequent financial year,- (i)the provisions of clause (a) or clause'(b) of thissub-section shall have effect as if for the words ["twO]years" the ry.ords "twenty-one months" had beensubstituted; ['] [trrovided further [that ][in ][the ][case ][where ][the ][tast]. of the authorisations for search under sectiott'732 or. for requisition under section 732A was executed'during the financial year comnlencing on the 7st [day]. of April, 2004 or any suhsequent financial year,- (i)the provisions of clause (a) or clause'(b) of thissub-section shall have effect as if for the words ["twO]years" the ry.ords "twenty-one months" had beensubstituted; ['] (ii)the period of lintitation for making the assessmenfor reassessment in case of.other [person ]referred [to]' in section 753C, sha'll be the period of twenly-onernonthg from the end of the financial year in whichthe last of the authorisations for search under sectian. 732 or for requisition under section 732A wasexecuted or nine months from ["the ]end of thefinancial yeAr in vthich books of account ordocuntents or assers seized or requisitioned are' handed over under section 753C to the AssessittgOfficer havinE [jurisdiction ]ove.r such other [person,]whichever is later:lor reassessment in case of.other [person ]referred [to]' in section 753C, sha'll be the period of twenly-onernonthg from the end of the financial year in whichthe last of the authorisations for search under sectian. 732 or for requisition under section 732A wasexecuted or nine months from ["the ]end of thefinancial yeAr in vthich books of account ordocuntents or assers seized or requisitioned are' handed over under section 753C to the AssessittgOfficer havinE [jurisdiction ]ove.r such other [person,]whichever is later:l Fr.avialed alsa that in case where the last'of the'authorisationg for search under section 732 or forrequisition under section 732A was executed ['during]the financial year comnlencing on the 7st day ofApril, 2005 or any subsequent.financial year and tTAs No.L775l 2010, 1776/2010,1777 /2Ot0, 1965/2O!O,2032/20],0,2033/2OtO,2O34/2O1O,2035/2010,2036/2010,2037 /2010, 2039/2010, 2Q39/2010, [2016/2010 ][& ][2047 ]/2010.2036/2010,2037 /2010, 2039/2010, 2Q39/2010, [2016/2010 ][& ][2047 ]/2010. during the course of the proceedings for theassessnrent or reassessment of total income, a. reference under sub-section [(7) ]of section 92CA-:-(i) was made before the 7st day of June, 2007 butan order under sub-section [(3) ]of section 92CA [has]not been made before such date; or.(ii) is n'tade on or after the 7st day of June, 2007, . . the peilod of limitation for making the assessrnent or'reassessment'in case' of such other [person ]shall,notwithstanding anything contained in clause [(ii) ]of' the second proviso, 'be the period of thirty:threemonths front the end of the financial year in whicltthe last of the authorisations for search under section732 or for fequisition under section 732A wasexecuted or twentv.one months front the end of thefinanciat yea', iri which b"ooks of accourtt or' documents pr assets seized or requisitioned are' handed over under section 753C to the AssessingOfficer haviqg. [jurisdiction ]ovei suclt other person,wltichgve.r is later.l Exptanation.-ln computing the period of limitationfor the purposes of this section,-(i) the period during which the assessment praceedingis stayed by qn order or injunction of any court; or . '(ii) the period comn'tencing fron't the day on .which theAssessing Officer directs the assessee to get his' accounts auQited under sub-section (2A) of section742 and endinq on the dav on which the assessee isrequired to fqinish u repoTt of such audit under thatsub-section;.or xxxxx (2) Tfie auttlorization referred to in clause'(a) andclause (b) of sub-section (1) shall be deemed to havebeen executed. (a) in the case of search, on the conclusion ofseafch as recorded in the Iast panchnama, drawn inrelation to any [person ]in vtrhose case the wrarrant of^authorization has been issued;.. - . (b) in the case of recluisition under Section 7324, on. the actual regeipt of ['the ]books of account or otherdocuments or assets by the Authorized Officer.l. the actual regeipt of ['the ]books of account or otherdocuments or assets by the Authorized Officer.l xxxxx (2) Tfie auttlorization referred to in clause'(a) andclause (b) of sub-section (1) shall be deemed to havebeen executed. (a) in the case of search, on the conclusion ofseafch as recorded in the Iast panchnama, drawn inrelation to any [person ]in vtrhose case the wrarrant of^authorization has been issued;.. - . (b) in the case of recluisition under Section 7324, on. the actual regeipt of ['the ]books of account or otherdocuments or assets by the Authorized Officer.l. the actual regeipt of ['the ]books of account or otherdocuments or assets by the Authorized Officer.l lTAs lio.17751 2070, t77612010, 1777 izLll,1965/2010,2032/20t0,2033/2010,2034/2010,2035/2010,zolg/'zttto, 2037 /2010, 2o3B / 2oro, 2o3s /2010, ?.046/ 2o::o & ?047 l2orozolg/'zttto, 2037 /2010, 2o3B / 2oro, 2o3s /2010, ?.046/ 2o::o & ?047 l2oro 6. Seiction 142 [provides ]the [procedure ]for the [enquiry ][tlrat ][is]required before making assessment, [Sub-sectiorr ][(2A) ][provides for]conducting special audit during the [procebdirrgs ]of [assessment..Tlris]sub section [pt-ovides ]that if at [any. ][stage ][of ][tlre ][probeedings, tlre]Assessing Officer was of the opirrion, having [regard ][to ][the ][nature ][and]complexity of the accounts of ttre Assessee and in the interest [of]revenue so to do, he may direct the [Assessee ][to ][get ][the ][accounts]audited by the Accountant in the n-ranner [prescribed ][tlrerein. ][Sub]section [(2C) ]provides thit every audit report under sub section [(2A) ][is]to be furnislred by the Assessee to [the ][Assessing ][Officer within ][suclr]. period as may be specifled by tlre Assessing Officer. lt was submittedby the learned counsel for the Assessee that tlle assessment [order]passdd under Section. 1534 on 3'd August, 2007 was [barred ][by]lirnitation insofar as, the order of special audit was nrade bV [ifre]Assessing Officer on 12th December 2006 and tlre special [audit.was to]be conducted on or before 12th Marcl't, 2007. Fle submitted [that ][the]Assessing Officer did not have inlrereht [power ]to extetrd time [under]sub Sections [(2A) ]or [(2C) ]of Sectiorr I42 of the Act [and ][tlre ][time ][could]only be extended at'the fequest of the [Assessee ][and ][consequerrtly ][the]. limitation as.iler Explanation (ii) to Section 1538(1) for the pulrpose ofcornputing assessrnent eXpired on 11th May,2OO7. [He also ][s.ubmitted]tlrat the power to suo ntetu extencl the [period ]for special audit [under] Sectiorr I42(2A) hqs been [provided ][in ]tlre [proviso ][to ][section ][IA.2QC) ][by]lrAs No.17751 2OtO, r776/2OtO, 1777 /2OtO, 1g65/20t0,2032/20::0,2033/2010,2034/2010,2035/2010,2O36/2OhO, 2037 /2O\O, 2038/201,0, 293s/2OrO, [2O46/2OLO ][& ][2047 ]/2O1O the Finance Act, 2008 with effect fronr 1" April, [2008 ][and ][the ][same]ireing prospective in nature, the AO was not enrpowered to [extend ][tlre]time for auclit report of his own. The learned counsel also [placecl]reliance u.pon the Menroranclum explairiing the [provisioirs ][of ][finance]bill, 2008 and also the circular No.1 issued by [dated ][27tr'March,]2009. The said Mernorandum and Circular slrall be referred [to ][a ][litter]later. 7. Tlris was'nqt in dispute that the word 'suo motu'.came to heinserted by way. of an amendnrent witlr effect front 1't [April, ][2008.]However, it was contenclecj by learned counsel for the Revenue. [that]the Assessing Officer had.tlre porver to extend the tinre of audit reportuncler Section I42(2C) [pf ]the Act since tlre word ["and" ][appearirrg]before the worcJs "for any good and sufficient reasons" was to lre reaclas'or'.' In.otlrer words, tlre submissions of the learnecl counsel was thatthe Asdessing Office r suo.motu had tlre [power ]to direct [Lhe ][assessee ][to]get audiL report and also to extend the tinre for sr-rbrnission of ar-rcJitreport. Learned.counsel relied uporr cases of SuEar MitrXs Co.lagjit tr-td.vs. CXT, 270 ITR 468 (Punjqb & Haryana); CXT v trwttuuttl@talnEstat'es [-td. L27 l-fR 481 (Madras), [p.V. ]Uevassy v.'CXT t1g72] 84tTR 502 {Kerala} arrd C/i- v GanEararn. CtaapoXia, 703 tTR 673(Orissa). : : B. ln laEjit SuEar MiMs Co. Lt'd [(supra), ]tlre [Flon'ble High Court of]Punjab and Haryana lracl treatecl tlre word ["and" ]appearing [between]tlre words "application made by the assessee" [and ]["for ][any good ][and]sufficient reasons" Litrde.p Sectiorr I42 [('2C) ]as'lor" and [ad [held ][tlrat]period for subrnission of peport by the Special Auditor is eiterrdable bythe Assessing Officer, even without an applicatiorr [in ][this ][regard ][by ][the]ASSCSSEC, 9. ln case of C/Tr v trt4ttnu{'f'tlrtarn Fsfates f-tc/. [(supr-a).it ][was ][lreld]tlrat, "The cit.'cutnstances under which the word ["and" ]ntay ['be]construed as "or" and vice'versa should be sornewhat rare. [Otherwise], [if ][the ][two ][are ][taken ][to ][be ][iqterchangeable ][ternls, ][then ][it ][would result]in Parliament throwing into the stafute the [' ]two expressiottsindiscriminately and leave them to the courts to sort out the [meanirtg.]tn ordinary usage "and" is conjunctive ancl "or" is disjunctive". 10. In the case of F.\i. pevassv v. C/?- [(supra), ]it was held as uncJer: "An assessee is reqtiired to file the return within thetime allowed and in the manner prescribed in order. that the lncctne. Tax Officer may complete the' ass essment'w.ithin the period specifiect in the lncomeTax Act. tf the return is not fited in time or, if fited in lTAs No.L775l zOtO, t77(,/2r|]0, :]777 /201,0, 7s6'.it2OtC,2O32/20rO,2C33/2OLC,2O34/?-OLO,2O3s/2OrA,2036/2.0!0/ 2037 /20tO, ZO38 / 20].0, 2039 / 2010, 2.046 / }OLO & 2047 /2010 Page 13 of 23 time, it does not contain all the [particulars ]required, itwitt not be [possible ]for the tncome Tax Of'ficer [to]comptete the asses sment withitt the [period ]specifiedin the Act. ln other words, the obiect of the [legislature]in insisting upon t/re assessee fiting the return [within]the time and. in the ['rnanner ]prescribed is to enable .the lncom? Tax Officer to com'plete the assessntentwithin a period of four years as specified in the Actand that object witl be frustrated unless t/re assesseefites the retqrn within the tirie allowed and in [the]mannei presiribed. To carry out the obiect of thelegislature, it is necessary to attac!'t a sanction for the'failure to fulfi.lt any of the.two conclitions.'lf the [obiect]is cleai, we do not think the use of the coniunctive.word '.'ancl" in the sub seclion is conclusive. The wordtta^A" ottu rta> gcttEtauy LurrtutsLtvh=e aanayatly acumulative sense, and is thus the antithesiq of disjunctive ["or"; ]but occasionalty it ispern'tissibte to read "and" as "or" if t'he context"sorequires. ln istlwar SinEk tsindra v, St'a't'e of U,F,,it is observed; I "And has generally a cuntulative sense, requiring thefulfiltment of att the conditions that it ioins together. and herei'n rt is the antithesis of or. Son'tetimes,lTAs No.17751 20rJ, r771lZOtO,1777 120].0,196s/20r0,2032/2010,2033/201.0,2034/2o1o,2o3s/20ro,2036/20t0, 2037 /2O]:O, 2c3q/2010, 2Q39 / 20].0, 2046 /20:'0 & [2047 ]/ 20tofulfiltment of att the conditions that it ioins together. and herei'n rt is the antithesis of or. Son'tetimes,lTAs No.17751 20rJ, r771lZOtO,1777 120].0,196s/20r0,2032/2010,2033/201.0,2034/2o1o,2o3s/20ro,2036/20t0, 2037 /2O]:O, 2c3q/2010, 2Q39 / 20].0, 2046 /20:'0 & [2047 ]/ 20to Page 14 of ?-J /@ ': *\-/ -.'-\ how,euer, even in such a connection, it [is, ]by [force ][of]. a context, reads as or. [Sometintes ][to ][carry ][outt ][th.e]' intention of the tegistature it'is found [necessary ]'toread the coniunctions ['or' ]and ['and' ]cne for [the]other. In Maxwell on the Interpretation of Statutes, [T2tn]. edition, at page 232, it is observed, ["ln ]ordinaryusage, \and' is coniunctive and ['or' ]disiunctive. [But ][to]carry out the intention of the tegistature it ntay bene.oqqar\/ tq read 'and' in place of the conju.nction'or' ancl vice versa." 11. ln the case of CIT ys. GanEararn Ckapolia [(supra), ]it.was [lreld]as uncler; Page 14 of ?-J /@ ': *\-/ -.'-\ how,euer, even in such a connection, it [is, ]by [force ][of]. a context, reads as or. [Sometintes ][to ][carry ][outt ][th.e]' intention of the tegistature it'is found [necessary ]'toread the coniunctions ['or' ]and ['and' ]cne for [the]other. In Maxwell on the Interpretation of Statutes, [T2tn]. edition, at page 232, it is observed, ["ln ]ordinaryusage, \and' is coniunctive and ['or' ]disiunctive. [But ][to]carry out the intention of the tegistature it ntay bene.oqqar\/ tq read 'and' in place of the conju.nction'or' ancl vice versa." 11. ln the case of CIT ys. GanEararn Ckapolia [(supra), ]it.was [lreld]as uncler; "/:;t Iil,l [-rh^ ]t IIE cu'^njunctive "and" in the seccnd clause of. section 277(7)(a) shoutd be coisilued as. "or".Therefore, ev.cn if the return of the assessee hadbeen fited in the manner prescribecl, as it was not:. fited within the time allowed under section 139(1),and as suclt one of the'two conditions [prescribed ]insection 271(L)(a) had.not been'futflllecl, the assesseewoulc! be tiable to peialty." tTAsNo,1775l 2O1O,1776/?OtO,t777/2010,1965/2010,2O32/2O1O,2033/20t0,2034/20t0,2035/2OLO,2036/201:0, 2037 l2oro, ?-o38/207o, 2839/2oto, 2046/2070 & 2047 /?07o PaEa 15 of 23 IiI 12. lt.is a cardirral [principle ][for ][interpreting ][a fiscal ][statute ][tlrat, ][a]taxing statute has to be construe.d [very ][stiictty ][and ][has ][to ][be ][reacl]without arnehding or alterirrg tlie [provisions. ][The ][irrtention ][of ][tlre]legislature in a taxation statute [is ][to ][be gathered ][from ][tlre ][language ][of]the . [provisions ][particulariy ][where . ][the ][. ][language ][is ][plairr ][arrd]unamolouous. 13. The Supreme Court [iri ]ttre [case of ][Mathurann ][lAEEarwal ][v ][Sfat'e]of Madhya Fradesk, B SCC 667[1999] [held ]that, : "ln a taxing Act'it is not possibie to assunte [any]intention or governing [purpose ]of the statute .morethan whatis Sfated in the [plain ]language. [It ][is ][rtot ][the]economic results sought to be [obtained ][by ][ntaking]the provision which is.relevant in.interpreting a fiscatstafute. Equallf irnpermissible is an [i4ti:rpretation]. whic:h does not fotlow from the [plain, ]unambigrtouslanguage of lhe statute. vVords cannot be added [ta]. or substitutec! so [es ][to give ][a mearting ][of the ][statute].wttich [will ][serve ][the ][spirit ][and ][intention ][of ][the ][']legisldture. The staL'ute sl'tould ctearly anCunambigulusiy con,ley the three [components ].of [the]tax law, i.e., the' subiect of the tax, the [person ][v'tho ][is] liable to pay lhe tax ai':d the rate at [r,tl'tich ]the [tax ][is]l'iAs No.1775l 2O7O,1776 2010,1777 /2C!O,7965/2OtO, ?-032/20L0,2O33/2Ot0,2034/2Ot0,20?5/2OLO,2036 / 20 ro, 2037 /2OtO, 2O3B /,2010, [2Q.39./ ][20L0, ][2046 ]/ [2110 ][& ][2047 ]/ [zoto] Page L6 of 23 to be paid\. tf there is any ambiguity [regarding ][any ][of]these ingredients in a taxation [statute then ][there ][is]no tax in law. Then.it is [for the ][tegislature ][to ][d.o ][the]needful in the matter." 14. lrr thd case of f\{asiruddin .and,ottlers [v ][Sft'a ][Rann ][AEarwa[ ][2] SCC 577 [(2003), ]it is held: liable to pay lhe tax ai':d the rate at [r,tl'tich ]the [tax ][is]l'iAs No.1775l 2O7O,1776 2010,1777 /2C!O,7965/2OtO, ?-032/20L0,2O33/2Ot0,2034/2Ot0,20?5/2OLO,2036 / 20 ro, 2037 /2OtO, 2O3B /,2010, [2Q.39./ ][20L0, ][2046 ]/ [2110 ][& ][2047 ]/ [zoto] Page L6 of 23 to be paid\. tf there is any ambiguity [regarding ][any ][of]these ingredients in a taxation [statute then ][there ][is]no tax in law. Then.it is [for the ][tegislature ][to ][d.o ][the]needful in the matter." 14. lrr thd case of f\{asiruddin .and,ottlers [v ][Sft'a ][Rann ][AEarwa[ ][2] SCC 577 [(2003), ]it is held: '. "37. The court's iurlsclictiott to interpret a statute' can be invoked when the same [is ][iantbig.uous. ][lt ][is ][']well known that in a [given ]case [the ][court ][can ][iron out]the fabric, btrt is cannot change the texture of [the ]., fabric. lt cannot enlarge the scope of legislation [or]. intention whgn the language of provision is plain ando' unambiguou.q. lt cannot add or subtrait [words ][to ][a]statute or read soimething into it [which ]is [not ][t:here. ][lt]cannot re-wfite or legislation. lt [is' ][also],recast necessary to determine . that [there ][exists ][a]presuryption that the legislat.ure has not used anysuperfluous words. lt is well settled that the [real]intentipn of the legislation must be [gathered ][front]the langua.ge, used. lt may be true [that ][use ][of ][the]expression "shall" or may" is [no't ]decisive [for arriving]' a finding as to whether , statute is directory [or]mandatory. B,ut the intention of the legislature must' be found oUt'fron't lhe schem.e of the [Act. ][It ][is ][also]equally wdlt settled that when negative [words ][are]ousec!, the courts will presume thbt the intention of o :lTAs No.17751 2OtO,I776/2OtO, [1777 ]lllrc, [$65/2OtO,2132l2oto,2033/2010,2034/2010,203s/20L0,]2036/2010, 2037 /2010,2018/2010, [2039/2010, ][2046/20t0 ][& ][2047 ]/20L0 a, the provisions [should be'] the .legislature [was ][that]m a n d atorY [i ][n ][ch ][ara ][cter. "] 15. with these [principles ][of ][irrterpretation, ][we ][may ][note ][tlrat ][l-lre]provisions as existing [irr sutr.section ][(2c) ][of ][the Act ][before 1't ][April']2008 did not [empower ][the ][Assessing ][officer ][to ][suo ][motu ][extend the]time for submissipn [of ][ar-rdit ][report ][under ][5ub ][section (2A)' This ][is ][also]clear.from the fact [that the ][Memorandum explaining ][the ][provisions ][of]to the [Assessing ][officer ][to. ][extend ][time ][for ][completiorr]grarrting power. of special audit [r,'',ldu,. ][sub sectio6 (2A) ][of ][Section ][142 ][merrtions about]thereasotrsinthesaidMernowhic|rreadsaSunder: ,,GrantingofpowertotheAssessingo{.ficerto.extenc!the timi for completion [of ][special ][audit ][under ][sult-]section'(2A) [of ][sbction ] Sub-sections. [(2A) ][to ][(2D) ][of ][section ][742 ][deal ][witlt]. power of Assessing officer [to ][order ][a ][special ][aud.it.]Such power is [required ][to ][be ][exercised ][by ][the]Assessingofficerhaving'regardtothenatureandcomplexity of [the ][accoJnts ][or ][tne ][assessee ][and ][the]inteiest of the [Revenue'] ,ub-section(2C)ofthesaidsectionspecifiestheperioQ within whiclt the [auclit ][report ][is to ][be]furnishec!,Theprovisotosaidsub-sectionempowers-theAssessingofficertoextendthisperiod..of/of [Su41 ][report. ][Further, ][it ][is ][also ][provided.]furnishing tnat fie;ggregate [of ][the originatty ][fixed period ][and]the perioaTl) s-o [extended shatt ][not ][exceed ][780 ][days]rrom.tneaateofissuance.ofdirectionofspecialaudit.Furthier,suchextensionCanbernadeonlywhei an application [is ][ntade ][in ][this behalf ][by ][the]assessee and there.are [good ][and ][sufficient ][reason]for such extension . . Itisproposecltoanlendthesaidprovisosoastoalso'at|owtheAssessingofficertoextendthisperiodoflrAs No.L77sl 2o\o,7776/,irou},7777 /zOtO, [Lg65/20I0,2032/2010,2O33/20!O,zO34lZOto' 2o