Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras

1962 SCC OnLine SC 51Reported decision1962#2809 most cited

What is Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras authority for?

When a rule or provision is substituted by a new one, the old rule ceases to exist from the moment of substitution and does not automatically revive, even if the new rule is subsequently declared invalid. This principle also applies by analogy to the novation or amendment of international agreements like DTAAs, where prior rights are not saved unless expressly preserved.

42

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2025 to 2025.

Also referred to as

Mehtab Majid & Co. · substitution of rule · supersession · old rule ceases to exist · rule not revived · invalid new rule · novation of DTAA · preservation of prior rights · Section 90 · Section 90A · effect of amendment

Sections most often in play

Section 1961 Section 142(2A)Section 143(3)Section 153A Section 153B Section 90 Section 90A Section 132 of the Income Tax Act

Issues it is cited on

section 158be section 153(3)section 90a audi alteram partem extension of limitation section 142(2a)section 153b section 90 principal commissioner of income-tax section 158b section 158 section 12

Judgments citing Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras

SANJAY JAIN,BHILWARA, RAJASTHAN vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - 7, NEW DELHI

In the result, Appeal of the Assessee is allowed

ITA 1384/DEL/2024[2017-18]Status: DisposedITAT Delhi25 Jul 2025AY 2017-18

Bench: Shri Anubhav Sharma & Shri Manish Agarwal

Section 1Section 132Section 139Section 143(1)Section 153ASection 153BSection 153DSection 250

…n is expressly preserved, the same cannot be inferred. It is trite that novation discharges the prior agreement. 55. There is no clause in the Amending Protocol that has an effect of saving any rights and obligations under Article 26 (numbered as Article 24 7 1962 SCC OnLine SC 51 prior to 16.02.2000), or one which could be read as expressing the intention of the treaty partners to save any rights and obligations regarding exchange of information as extant prior to 30.08.2010. On the contrary, paragraph 3 of Article 14 of the Amending Protocol contains a non- obstante clause that makes it abundantly clear that Ar…

SH. SUBHASH SATHE,GURGAON vs. ACIT, NEW DELHI

In the result, Appeal of the Assessee in ITA

ITA 4713/DEL/2016[2007-08]Status: HeardITAT Delhi29 May 2025AY 2007-08

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

SH. SUBHASH SATHE,GURGAON vs. ACIT, NEW DELHI

In the result, Appeal of the Assessee in ITA

ITA 4712/DEL/2016[2006-07]Status: HeardITAT Delhi29 May 2025AY 2006-07

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 4255/DEL/2016[2006-07]Status: HeardITAT Delhi29 May 2025AY 2006-07

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3058/DEL/2016[2011-12]Status: HeardITAT Delhi29 May 2025AY 2011-12

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3057/DEL/2016[2010-11]Status: HeardITAT Delhi29 May 2025AY 2010-11

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3056/DEL/2016[2009-10]Status: HeardITAT Delhi29 May 2025AY 2009-10

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3055/DEL/2016[2008-09]Status: HeardITAT Delhi29 May 2025AY 2008-09

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3054/DEL/2016[2007-08]Status: HeardITAT Delhi29 May 2025AY 2007-08

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

ACIT, NEW DELHI vs. SMT. INDRANI SATHE, GURGAON

In the result, Appeal of the Assessee in ITA

ITA 3053/DEL/2016[2006-07]Status: HeardITAT Delhi29 May 2025AY 2006-07

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

SH. SUBHASH SATHE,GURGAON vs. ACIT, NEW DELHI

In the result, Appeal of the Assessee in ITA

ITA 2773/DEL/2016[2007-08]Status: HeardITAT Delhi29 May 2025AY 2007-08

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

SH. SUBHASH SATHE,GURGAON vs. ACIT, NEW DELHI

In the result, Appeal of the Assessee in ITA

ITA 2772/DEL/2016[2006-07]Status: DisposedITAT Delhi29 May 2025AY 2006-07

Bench: Shri Yogesh Kumar U.S. & Shri Manish Agarwal

Section 153BSection 90

…gnores the distinction between supersession of a rule, and substitution of a rule. In A.T.B. Mehtab Majid & Co. (Firm) [A.T.B. 6 (2024) 8 SCC 742 ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for this r…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/787/2023HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/69/2024HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SH. PRAVEEN SAWHNEY

ITA/92/2024HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/76/2024HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/796/2023HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/790/2023HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/781/2023HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

PR. COMMISSIONER OF INCOME TAX, CENTRAL-1, DELHI vs. SMT. SANGEETA SAWHNEY

ITA/74/2024HC Delhi13 May 2025

Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE TEJAS KARIA

…ITA No.782/2023 & Connected Cases Page 36 of 47 Mehtab Majid & Co. (Firm) v. State of Madras, (1963) 14 STC 355 : 1962 SCC OnLine SC 51] , the new Rule 16 was substituted for the old Rule 16. The process of substitution consists of two steps. First, the old rule it made to cease to exist and, next, the new rule is brought into existence in its place. Even if the new rule be invalid, the first step of the old rule ceasing to exist comes into effect, and it was for…

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