K.M. Sharma v. ITO

254 ITR 772Supreme Court of India2002#754 most cited

What is K.M. Sharma v. ITO authority for?

Where the period of limitation for issuing a notice under section 148 has expired before an amendment to the law takes effect, the amended provision, if not expressly retrospective, cannot revive the expired period of limitation to reopen concluded proceedings.

136

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2005 to 2026.

Also referred to as

K.M. Sharma v. ITO · Section 148 · Section 149 · limitation · revival of expired limitation · retrospective amendment · prospective amendment · certainty and finality

Also reported as

122 Taxmann 426

Sections most often in play

Section 147Section 148Section 143(3)Section 153ASection 69ASection 149Section 150Section 142(1)
Read the full judgment

Issues it is cited on

undisclosed foreign income and assetssection 149(1)(c)section 4(2)section 201(3)section 150(1)section 158basection 150section 150(2)unexplained jewellerysection 18section 70section 33(4)

Judgments citing K.M. Sharma v. ITO

Asst CIT Cir 2, Thane vs. Salasar Developers, Thane

The appeals of the Revenue are dismissed

ITA 4512/MUM/2014[2005-06]Status: DisposedITAT Mumbai04 Apr 2017AY 2005-06

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 132Section 132(3)Section 133ASection 143(3)Section 153A

…ion provisions for completing assessments are to be strictly construed as under: The counsel for the appellants are justified in their contention that the provision relating to limitation need to be strictly construed. In the case of K.M. Sharma v. ITO [2002] 254 ITR 772/122 Taxman 426 (SC), this principle is laid down in the following words: "13. Fiscal statute, more particularly a provision such as the present one regulating period of limitation must receive strict construction. The law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation to l…

Asst CIT Cir 2, Thane vs. Salasar Developers, Thane

The appeals of the Revenue are dismissed

ITA 4511/MUM/2014[2004-05]Status: DisposedITAT Mumbai04 Apr 2017AY 2004-05

Bench: Shri Joginder Singh & Shri N.K. Pradhan

Section 132Section 132(3)Section 133ASection 143(3)Section 153A

…ion provisions for completing assessments are to be strictly construed as under: The counsel for the appellants are justified in their contention that the provision relating to limitation need to be strictly construed. In the case of K.M. Sharma v. ITO [2002] 254 ITR 772/122 Taxman 426 (SC), this principle is laid down in the following words: "13. Fiscal statute, more particularly a provision such as the present one regulating period of limitation must receive strict construction. The law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation to l…

Balaji Universal Tradelink P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

The appeals of the assessee are allowed and that of the Revenue are dismissed

ITA 2183/MUM/2013[2004-05]Status: DisposedITAT Mumbai31 Oct 2016AY 2004-05

Bench: Shri Joginder Singh & Shri Sanjay Arora

Section 132(3)Section 133ASection 143(3)Section 153A

…on provisions for completing assessments are to be strictly construed as under: The counsel for the appellants are justified in their contention that the provision relating to limitation need to be strictly construed. In the case of K.M. Sharma v. ITO [2002] 254 ITR 772/122 Taxman 426 (SC), this principle is laid down in the following words: "13. Fiscal statute, more particularly a provision such as the present one regulating period of limitation must receive strict construction. The law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation to…

Taurian Iron & Steel Co. P.Ltd, Mumbai vs. Addl CIT RG 4(3), Mumbai

In the result, appeal of the assessee is partly allowed, in terms indicated hereinabove

ITA 5920/MUM/2012[2008-09]Status: DisposedITAT Mumbai16 Sept 2016AY 2008-09
For Appellant: Shri K.B.DesaiFor Respondent: Shri N.K.Chand
Section 143(3)Section 250(6)

…proceedings, while for amendments to substantive provisions can only be given a prospective effect, therein in support of the aforesaid proposition, relied on a host of Judgments, as under: (i). Jai Parkash Singh Vs. (219 ITR 737)(SC) (ii). KM Sharma Vs. ITO (254 ITR 772, 779)(SC) (iii). Aditya Cement Staff Club Vs. UOI (266 ITR 70)(Raj) (iv). Associated Cement Co. Vs. CTO (48 STC 466) (v). K. Co. Gopal Rao Vs. CWT (181 CTR 94)(AP) (vi). CWT Vs. R.K Indrajeet Singh(86 Taxman 507)(Raj) (vii). CWT Vs. Man Bahadur Singh (208 ITR 658)(Raj) (viii). Gulabrai Hanumanbux Vs. CWT (198 ITR 13 1)(Guj) (ix). ACIT Vs. Hasmat…

Vls Finacne Ltd vs. Commissioner F Income Tax

C.A. No.-002667-002667 - 2007Supreme Court28 Apr 2016
Section 132Section 132ASection 142Section 158B

…ating to limitation need to be strictly construed. In the case of K.M. Sharma Vs. ITO2, this principle is laid down in the following words: “13. Fiscal statute, more particularly a provision such as the present one regulating period of 2 (2002) 254 ITR 772 (SC) Civil Appeal No. 2 667 of 2007 Page 11 of 21 Page 12 JUDGMENT limitation must receive strict construction. The law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation to litigant for indefinite period on future unforeseen events. Proceedings, which have attained…

Smt. Rekha Aggarwal, Meerut vs. ITO, New Delhi

In the result appeal of the assessee is partly allowed

ITA 3498/DEL/2014[1999-00]Status: DisposedITAT Delhi15 Mar 2016AY 1999-00

Bench: : Shri.I.C. Sudhir & Shri Prashant Maharishirekha Aggarwal, Ito, C/O. Vinod Kumar Goel, 282, Ward-24(4), Vs. Boundary Road, Civil Lines, New Delhi Meerut Pan:Aaipa0325N (Appellant) (Respondent)

For Appellant: Sh. V.K. Goyal, AdvFor Respondent: Sh. Bharat Bhushan Garg, Sr. DR
Section 143(1)Section 147Section 148Section 149Section 150Section 150(1)Section 150(2)

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI (CIRCUIT BENCH AT MEERUT) BEFORE : SHRI.I.C. SUDHIR, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER Rekha Aggarwal, ITO, C/o. Vinod Kumar Goel, 282, Ward-24(4), Vs. Boundary Road, Civil Lines, New Delhi Meerut PAN:AAIPA0325N (Appellant) (Respondent) Date of hearing 18/12/2015 Date of pronouncement 15/03/2016 Assessee by: Sh. V.K. Goyal, Adv Revenue by: Sh. Bharat Bhushan Garg, Sr. DR O R D E R PER PRASHANT MAHARISHI, A. M. 1. This appeal is preferred by the assessee against the order of the learned Commissioner of Income-tax (Appea…

ITO, New Delhi vs. M/S Neetee Clothing (P) Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 267/DEL/2013[2002-03]Status: DisposedITAT Delhi21 Oct 2015AY 2002-03

Bench: Shri A.T. Varkey & Shri O.P. Kant

For Appellant: Dr. Rakesh Gupta, Advocate and Shri Somil Aggarwal, CAFor Respondent: Shri P. Dam Kanunjna, Senior DR
Section 143(1)Section 143(3)Section 147Section 148Section 149Section 149(1)Section 150Section 80Section 80HSection 80I

…same could not be revived u/s 150 (1). Reliance is placed on Gauri Shankar Choudhary v. Addl. CIT (1998) 234 ITR 865 (Pat) & CIT v, Vaikundom Rubber Co. Ltd., (2001) 249 ITR 19 (Ker.) 6.5 A three-judge bench of the Hon'ble Apex Court in K.M. Sharma vs. ITO, 254 ITR 772 (SC) points out that sub-so (2) aims at putting an embargo on reopening assessments, which have attained finality on the expiry of the prescribed period of limitation. Sub- 8 ITA No267/Del./2013 section (2), in putting such embargo, refers to the whole of sub-s (1), meaning thereby to insulate all assessments, which have become final and may ha…

Bses Rajdhani Power Ltd., New Delhi vs. ACIT, New Delhi

The appeal is partly allowed

ITA 3688/DEL/2011[2005-06]Status: DisposedITAT Delhi05 Oct 2015AY 2005-06

Bench: Shri I.C. Sudhir & Shri Inturi Rama Rao Assessment Year : 2005-06 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2005-06 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year : 2006-07 Bses Rajdhani Power Ltd., Vs. Assistant Cit, Bses Bhawan, Nehru Place, Circle-3(1), New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent) Assessment Year: 2006-07 Deputy Cit, Vs. Bses Rajdhani Power Ltd., Circle 3(1), Bses Bhavan, Nehru Place, New Delhi. New Delhi. (Pan: Aagcs3187H) (Appellant) (Respondent)

Section 154

…(SC). To the same effect are the following decisions wherein it has been held that a provision imposing liability is governed by the normal presumption that is not retrospective: - S.S.Gadgil vs. Lal and Co. (1964) 53 ITR 231 (SC) - K.M.Sharma vs. ITO (2002) 254 ITR 772 (SC) - Gem Granites vs. CIT (2004) 271 ITR 322 (SC) - Sedco Forex International Drill Inc. vs. CIT (2005) 279 ITR 310 (SC). 22.28 The fundamental principle reiterated in the aforesaid decision is lexprospicit non respicit: i.e., laws look forward and not backward. No section can be interpreted retrospectively unless it is mentioned in the sectio…

Commissioner of Income Tax vs. Anil Minda

ITA/582/2009HC Delhi14 Sept 2010

Bench: HON'BLE MR. JUSTICE A.K.SIKRI,HON'BLE MS. JUSTICE REVA KHETRAPAL

Section 132Section 132(1)

…l for the assessee had submitted that it is settled law that while construing taxation laws, more particularly relating to limitation; a strict and literal interpretation has to be made. This was so held in the case of K.M. Sharma vs. Income Tax Officer [254 ITR 772 (SC) in the following words:- ―The provisions of a fiscal statute, more particularly one regulating the period of limitation, must receive a strict construction. The law of limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation of litigants for an indefinite period on…

The Commissioner of Income Tax vs. Vandana Minda

ITA - 593 / 2009HC Delhi14 Sept 2010
Section 132Section 132(1)

…el for the assessee had submitted that it is settled law that while construing taxation laws, more particularly relating to limitation; a strict and literal interpretation has to be made. This was so held in the case of *K.M. Sharma* vs. *Income Tax Officer* [254 ITR 772 (SC) in the following words:- "The provisions of а fiscal statute. particularly one regulating the period of limitation, must receive a strict construction. limitation is intended to give certainty and finality to legal proceedings and to avoid exposure to risk of litigation of litigants for an indefinite period on future unforeseen events. Proc…

The Commissioner of Incomet Tax vs. Khatri Hotels Pvt Ltd

The appeals are dismissed

ITA - 1323 / 2008HC Delhi15 Apr 2009
Section 143Section 158

…a certain period of time. It was not merely procedural but was substantive in nature and therefore must be applied strictly. For this proposition, the learned counsel placed reliance on the decision in *KM Sharma v. Income Tax Officer, Ward 13(7), New Delhi:* 254 ITR 772 (SC). 30. Mr. Anoop Sharma, the learned counsel appearing for the assessee respondents in ITA 655/2008 and ITA 862/2008, pointed out that there is a difference between nullity and irregularity. He placed reliance on the Gujarat High Court decision reported in *Doshi v. Commissioner of Income-tax*, *Gujarat*: 113 ITR 22 (Guj) wherein the followin…

Commissioner of Income Tax vs. Pawan Gupta

The appeals are dismissed

ITA - 200 / 2008HC Delhi15 Apr 2009
Section 143Section 143(2)Section 158

…certain period of time. It was not merely procedural but was substantive in nature and therefore must be applied strictly. For this proposition, the learned counsel placed reliance on the decision in KM Sharma v. Income Tax Officer, Ward 13(7), New Delhi: 254 ITR 772 (SC). 30. Mr. Anoop Sharma, the learned counsel appearing for the assessee respondents in ITA 655/2008 and ITA 862/2008, pointed out that there is a difference between nullity and irregularity. He placed reliance on the Gujarat High Court decision reported in Doshi v. Commissioner of Income-tax, Gujarat: 113 ITR 22 (Guj) wherein the follo…

Commissioner of Income Tax vs. Pawan Gupta

The appeals are dismissed

ITA/200/2008HC Delhi15 Apr 2009
Section 143Section 143(2)Section 158

…certain period of time. It was not merely procedural but was substantive in nature and therefore must be applied strictly. For this proposition, the learned counsel placed reliance on the decision in KM Sharma v. Income Tax Officer, Ward 13(7), New Delhi: 254 ITR 772 (SC). 30. Mr. Anoop Sharma, the learned counsel appearing for the assessee respondents in ITA 655/2008 and ITA 862/2008, pointed out that there is a difference between nullity and irregularity. He placed reliance on the Gujarat High Court decision reported in Doshi v. Commissioner of Income-tax, Gujarat: 113 ITR 22 (Guj) wherein the follo…

M/S.Virtual Soft Systems Ltd vs. Commissioner of Income Tax, Delhi-I

C.A. No.-007115-007115 - 2005Supreme Court06 Feb 2007
For Respondent: Commissioner of Income Tax, Delhi-I
Section 260ASection 271(1)(c)Section 68

…. It is settled law that a taxing provision imposing liability is governed by the normal presumption that is not retrospective. Reference made to the decisions in: - i. S.S. Gadgil, ITO, Bombay v. Lal & Co., 53 ITR 231 (SC), ii. K.M. Sharma v. ITO, 254 ITR 772 (SC), iii. Gem Granites v. CIT , 271 ITR 322 (SC), iv. Sedco Forex International Drill Inc. & Ors. v. CIT, 279 ITR 310 (SC). There is nothing in the language of Section 271(1)(c) as amended by the Finance Act, 2002 w.e.f. 1.4.2003 to suggest that the amendment is retrospective. The amendment in clause (iii) and simultaneously in E…

M/S.Virtual Soft Systems Ltd vs. Commissioner of Income Tax, Delhi-I

C.A. No.-007115-007115 - 2005Supreme Court06 Feb 2007
For Respondent: Commissioner of Income Tax, Delhi-I
Section 260ASection 271(1)(c)Section 68

…. It is settled law that a taxing provision imposing liability is governed by the normal presumption that is not retrospective. Reference made to the decisions in: - i. S.S. Gadgil, ITO, Bombay v. Lal & Co., 53 ITR 231 (SC), ii. K.M. Sharma v. ITO, 254 ITR 772 (SC), iii. Gem Granites v. CIT , 271 ITR 322 (SC), iv. Sedco Forex International Drill Inc. & Ors. v. CIT, 279 ITR 310 (SC). There is nothing in the language of Section 271(1)(c) as amended by the Finance Act, 2002 w.e.f. 1.4.2003 to suggest that the amendment is retrospective. The amendment in clause (iii) and simultaneously in E…

The Commissioner of Income Tax vs. M/S Welcome Seeds Ltd

ITA/183/2001HC Delhi29 Jul 2005

…ey submitted, that the amendments could not have retrospective operation. They relied upon Commissioner Of lilealtlt-tax, 106 ITR 965 6U, Commissioner Of fncome-tax, West Bengal I v. Vegetable Products Ltd: 88 ITR 192 (SC), K' M' Sharma v. Income-tox Officer: 254 ITR 772, Brii Mohan v. Commissioner Of fncome-tsx, New Delhi: 120 ITR 7, Gem Granites v. Commissioner Of fncome' tax: 271 ITR 322, CCE, Coimbatore v. Elsi Eauioments Ltd: 2001 (128) ELT 52 (SC), B. N. Sharma v. Commissioner Of Income Tax: 226 ITR 442 (SC). However, we need not be drawn into this discussion as we have anived at our conclusions indicated a…