Interpretation of taxing statutes — Precedent – Ratio of judgments relating to one tax enactment not to be treated as precedent in case relating to another tax enactment — Especially when language, object and purpose of enactments are different.[ Interest-tax Act, 1974, S. 2(5A), 2(5B), 2(7) ]

Interest-tax Act, 1974

S. 2(7): Interest – Credit institution – Financial company – State Financial corporation – Non-Banking Financial Companies , Hire -purchase agreements – Loans and advances – Not liable to pay Interest-Tax on interest component imbedded in hire-purchase instalment – Order of High Court remanding the matter was set aside – Interpretation of taxing statute- Precedent . [ S. 2(5A), 2(5B), 2(7) , Income -Tax Act , 1961 , 260A Companies Act , 1956 , S 4A, State Financial Corporation Act, 1951 , S. 3, 3A , Motor Vehicles Act, 1988, S. 51]

Direct Tax Vivad Se Vshwas Act, 2020

S. 4: Declaration – Delay in payment of tax – Condonation of delay – Object of legislation beneficial and to reduce litigation — Rejection of belated declarations filed due to death of director of assessee – Delay in payment of disputed amount — Delay was condoned – Directed to treat declaration as valid and accept the payment with interest- Interpretation of statutes -Beneficial legislation – Liberal interpretation . [ S. 5, 10(2), 67(2), Art , 226 ]

Direct Tax Vivad Se Vshwas Act, 2020

S. 2(1)(j ): Disputed tax – Each appeal, writ petition or special leave petition to be treated as a separate dispute — Assessee has option to choose appeal to be settled under Act — No obligation to settle all disputes for a particular assessment year – Interpretation of taxing statutes — Beneficial statute to be interpreted liberally.[ S. 2(1)(a), 3, ITAct , S. 115JB , 234B , Art , 226 ]

S. 154 : Rectification of mistake – Mistake apparent from the record — Set-off of loss — Opinion of Audit party on a point of law – Manner of set off -Not a mistake apparent from the record – Rectification order was set aside – The order rejecting the application for settlement under the Direct Tax Vivad Se Vishwas Scheme, and to grant a certificate to the in respect of the tax arrears in accordance with law . [Direct Tax Vivad Se Vishwas Act, 2020 , 5((1), 5(3), Art , 226 ]

S. 147 : Reassessment –With in four years-Share application – Share premium – Information from investigation – Material giving rise to prima facie belief that income had escaped assessment, sufficient – Reassessment notice is valid [ S. 143(1), 148 , Art , 226 ]

S. 13 : Denial of exemption-Trust or institution-Investment restrictions -Property held for charitable purposes -Transactions between trustee and related party —No evidence of diversion of funds — Transaction was at arm’s length- Denial of exemption is not justified .[ S. 11, 12, 13(3) ]

S. 10 (23C): Educational institution – Amounts given as donation by relatives of students seeking admission to institution run by Charitable Trust to sister trust — Sister Trust giving amounts to assessee running educational institutions — Amounts given not voluntary contribution But In Reality Capitation Fees — Court Could lift veil of trusts — Not entitled to exemption on sums received from sister Trust – Activities of trust not charitable — Registration to be cancelled – The statements given to the Assessing Officer under section 132(4) had legal force. Unless retractions are made within a short span of time, supported by affidavit swearing that the contents were incorrect and that the statement was obtained under force, coercion and by lodging a complaint with higher officials, they could not be treated as retracted. . [ S.2((15) 11,12, 12AA , 13, 132(4), Tamil Nadu Educational Institutions (Prohibition Of Collection of capitation Fee) Act, 1992 , S.4 ]

S. 139A : Permanent account number –Surrendering permanent account number card on obtaining new card — Notice issued under old card — Court directed the Commissioner to decide which permanent account number was to be used by the assessee for future transactions and Income-tax returns. [ S. 148, 148A(b) Art , 226 ]

S. 253: Appellate Tribunal – Maintainability – Consolidated order of CIT(A) for more than one year – One appeal cannot be filed against two reassessment orders for the same assessment year- Income-tax Appellate Tribunal Rules, 1963 –R. 9 -Appeal of revenue was dismissed . [ S. 132, 153C ,ITAT R, 9 ]