Smt. Tarulata Shyam v. CIT

108 ITR 345Supreme Court of India1977#430 most cited

What is Smt. Tarulata Shyam v. CIT authority for?

Taxing statutes must be interpreted strictly, assuming that the law-making authority does not commit a mistake or make an omission. There is no room for purposive interpretation under direct tax laws.

209

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2009 to 2026.

Also referred to as

Smt. Tarulata Shyam v. CIT · 108 ITR 345 SC · strict interpretation taxing statutes · no purposive interpretation direct tax laws · legislative intent no omission · Section 143(3) · Section 147 · Section 148 · Section 5 · Section 4 · Section 6 · Section 139(1) · Income Tax Act interpretation

Sections most often in play

Section 143(3)Section 147Section 132Section 148Section 5Section 4Section 6Section 139(1)

Issues it is cited on

accumulated profitsdeemed dividendsection 2(22)section 2(22)(e)mercantile system of accountingbook profitscommercial expediencyliable to taxdisallowance u/s 14adisallowance under section 14anon-residentsection 40(a)

Judgments citing Smt. Tarulata Shyam v. CIT

Assistant Commissioner of Income Tax Circle-1, Bellary vs. Sri Sirwar Basavaraj, Bellary

In the result appeal filed by revenue stands allowed for statistical purposes

ITA 1902/BANG/2018[2009-10]Status: DisposedITAT Bangalore30 Mar 2021AY 2009-10

Bench: Shri. B.R Baskaran & Smt. Beena Pillaiassessment Year : 2009-10

For Appellant: Shri Siva Prasad Reddy, AdvocateFor Respondent: Shri Kannan Narayanan, JCIT
Section 14Section 142Section 143Section 2Section 2(22)(e)

…support of this submission reliance is placed on following judgements: decision of Hon’ble Supreme Court in case of Ms.P.Sarada vs CIT reported in (1998) 96 Taxmann 11 decision of Hon’ble Supreme Court in case of Smt. Tarulata Shyam vs CIT reported in (1977) 108 ITR 345 9. On the contrary, the Ld.AR placed reliance on the order passed by Ld.CIT(A). He submitted that, this is the 2nd round of proceedings. He submitted that transaction between assessee and Noble Distilleries is of a running current account, which Page 5 of 8 forms part of the record. He submitted that this is only for operational convenience of t…

ACIT, Circle-3, Ranchi vs. Shri Sumit Ramsisaria, Ranchi

ITA 222/RAN/2019[2015-16]Status: DisposedITAT Ranchi11 Dec 2020AY 2015-16

Bench: Shri J.Sudhakar Reddy & Shri S.S.Godara

Section 133(6)Section 143(3)Section 41(1)

…-15 ACIT, Cir-3,RAN Vs. Sh Sumit Ramsisaria Page 5 (a) Supreme Court decision on Interpretation of Statutes The appellant also placed reliance upon the decision of Hon'ble Supreme Court in the case of Smt. Tarulata Shyam and Others vs. ClT, West Bengal [1977] 108 ITR 345 (SC). The Hon'ble Supreme Court held as under- ". ... ... in a taxing Act one has to look merely at what is clearly said there is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. Once it is shown that…

Sri. Ravi Shankar Shetty, Bangalore vs. Assistant Commissioner of Income Tax, Circle- 6(3)(1), Bangalore

In the result, the appeal of the assessee is allowed

ITA 28/BANG/2020[2015-16]Status: DisposedITAT Bangalore08 Oct 2020AY 2015-16

Bench: Shri Chandra Poojari, Am & Smt. Beena Pillai , Jm Ita No.28 /Bang/2020 Assessment Year: 2015-16 Shri Ravi Shankar Shetty, Vs. The Assistant Commissioner Of #289, 1St Floor, 15Th Main, Rmv Income-Tax, Circle-6(3)(1), Extension, Bengaluru Bengaluru-560 080. [Pan:Asups 9568B]

Section 234ASection 56(2)(ix)

…hat the intention of the legislature in is to be strictly gathered from the language of the provision particularly where the language is plain and unambiguous. The Ld. AR relied on the following decisions in this regard 1. Smt.Tarulata Sharadas Vs CIT (1977) 108 ITR 345(SC) 2. CIT Vs Calcutta Knitwears (2014) 362 ITR 673 (SC) 3. Indian Bank Associations and Ors. Vs Devkala Consultancy Services and Ors (2CC1) 267 ITR 179 (SC) 4. Nathuram Agarwal Vs State of Madhya Pradesh (1999) 8 SCC 667 (SC) 5. Tata Consultancy Services Vs State of Andhra Pradesh (2004) 271 ITR 401(sc) According to the Ld. AR, the above pr…

DCIT, New Delhi vs. M/S. L.T. Foods Ltd., New Delhi

In the result, the appeal of the Revenue is dismissed and the appeal of the Assessee is allowed in part and for statistical purposes

ITA 4046/DEL/2013[2007-08]Status: DisposedITAT Delhi30 Sept 2020AY 2007-08

Bench: Shri G.S. Pannu, Hon’Ble & Shri K.Narasimha Charydcit Vs. L.T. Foods Ltd., Central Circle-19, Unit No. 134, First Floor, 3Rd Floor, Ara Centre, Rectangle-I, Saket District Centre Jhandewalan Extn. New Delhi. New Delhi.

Section 115Section 132(4)Section 14ASection 153ASection 40Section 40A(3)Section 69Section 80Section 80I

…e activity in terms of section 80IB(11A). Placing reliance on the decision of Hon'ble Supreme Court in case of CGT v. NS GettiChettiar, [1971] 82 ITR 599, Sole Trustee, LokaShikshana Trust v. CIT, [1975] 101 ITR 234 (SC), and Smt. TarulataShyam v. CIT, [1977] 108 ITR 345 (SC) he submitted that the definitions in other Acts or technical meaning of a word or expression in the statute may be relevant but not sacrosanct, and the Courts should not hesitate to depart the meaning if the text and settings in which the word or expression is used demands so. On this premise he submits that when Sec 80IB(11A) is read along…

M/S L.T. Foods Ltd., New Delhi vs. ACIT, New Delhi

In the result, the appeal of the Revenue is dismissed and the appeal of the Assessee is allowed in part and for statistical purposes

ITA 4164/DEL/2013[2007-08]Status: DisposedITAT Delhi30 Sept 2020AY 2007-08

Bench: Shri G.S. Pannu, Hon’Ble & Shri K.Narasimha Charydcit Vs. L.T. Foods Ltd., Central Circle-19, Unit No. 134, First Floor, 3Rd Floor, Ara Centre, Rectangle-I, Saket District Centre Jhandewalan Extn. New Delhi. New Delhi.

Section 115Section 132(4)Section 14ASection 153ASection 40Section 40A(3)Section 69Section 80Section 80I

…e activity in terms of section 80IB(11A). Placing reliance on the decision of Hon'ble Supreme Court in case of CGT v. NS GettiChettiar, [1971] 82 ITR 599, Sole Trustee, LokaShikshana Trust v. CIT, [1975] 101 ITR 234 (SC), and Smt. TarulataShyam v. CIT, [1977] 108 ITR 345 (SC) he submitted that the definitions in other Acts or technical meaning of a word or expression in the statute may be relevant but not sacrosanct, and the Courts should not hesitate to depart the meaning if the text and settings in which the word or expression is used demands so. On this premise he submits that when Sec 80IB(11A) is read along…

M/S. Ibm India Pvt. Ltd., Bengaluru vs. Assistant Commissioner of Income-Tax, Circle-4(1)(2), Bengaluru

In the result appeal filed by assessee stands partly allowed

ITA 725/BANG/2018[2013-14]Status: DisposedITAT Bangalore31 Jul 2020AY 2013-14

Bench: Shri. B. R. Baskaran & Smt. Beena Pillai

For Appellant: Shri Percy Pardiwala, Sr. Advocate along with Ajay Roti, C.AFor Respondent: Shri K.V Arvind, Advocate
Section 10ASection 143Section 143(3)Section 144C(1)Section 92C

…ble Bench after analysing various rulings of Hon’ble Supreme Court in case of CWT vs Kripashankar Dayashankar Worah reported in (1971) 81 ITR 763, Philip John Plasket Thomas vs CIT reported in (1963) 49 ITR 97 and Smt. Tarulata Shyam vs CIT reported in (1977) 108 ITR 345, Hon’ble Karnataka High Court in case of CIT vs Fusion Software Engineering Pvt. Ltd., reported in (2012) 18 Taxmann.com 57 observed as under: “3.77. Apart from the above, we find that that this issue has already been concluded by ITAT Bangalore bench in assessee’s own case for assessment IT(TP)A No.725/Bang/2018 Asst.Yr.2013-14 year 2000-01 i…

Meghmani Organics Ltd., Ahmedabad vs. The DCIT., Cent.Circle-1(1), Ahmedabad

In the result, assessee’s appeal is allowed for statistical purpose

ITA 2204/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad28 Jul 2020AY 2009-10

Bench: Shri Waseem Ahmed & Ms. Madhumita Roy

For Appellant: Shri S. N. Soparkar Sr. Advocate with Shri Parin Shah ARFor Respondent: Shri Vinod Tanwani, Sr. D.R
Section 10BSection 143(3)Section 234ASection 271(1)(c)Section 92C

…such a test in the definition of the international transaction' under our domestic transfer pricing legislation, as is the settled legal position, it is not open to us to infer the same. Hon'ble Supreme Court, in the case of Smt. Tarulata Shyam v. CIT [1977] 108 ITR 345 (SC) = 2002-TIOL- 991-SC-IT-LB, took note of the situation before Their Lordships in these words: "We have given anxious thoughts to the persuasive arguments of Mr Sharma. His arguments, if accepted, will certainly soften the rigour of this extremely drastic provision and bring it more in conformity with logic and equity". However, Their Lordship…

DCIT (Exemptions)-2(1), Mumbai vs. Tata Education and Deveopment Trust, Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1535/MUM/2018[2012-13]Status: DisposedITAT Mumbai24 Jul 2020AY 2012-13
Section 11Section 11(1)(c)Section 12A

…egislature has specifically provided for the same. In the absence of a time limit prescribed by the statute, no matter how desirable- even if that be so, it cannot be inferred. As observed by Hon’ble Supreme Court, in the case of Tarulata Shyam vs CIT [(1977) 108 ITR 345 (SC)], “There is no scope for importing into the statute words which are not there. Such importation would be, not to construe, but to amend the statute. Even if there be a casus omissus, the defect can be remedied only by legislation and not by judicial interpretation”. Their Lordships, in the said case, have further observed that “To us, there…

Tata Education and Deveopment Trust, Mumbai vs. ACIT(Exp)-2(1) Now Assessed by DCIT (Exemptions)-2(1), Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1424/MUM/2018[2012-13]Status: DisposedITAT Mumbai24 Jul 2020AY 2012-13
Section 11Section 11(1)(c)Section 12A

…egislature has specifically provided for the same. In the absence of a time limit prescribed by the statute, no matter how desirable- even if that be so, it cannot be inferred. As observed by Hon’ble Supreme Court, in the case of Tarulata Shyam vs CIT [(1977) 108 ITR 345 (SC)], “There is no scope for importing into the statute words which are not there. Such importation would be, not to construe, but to amend the statute. Even if there be a casus omissus, the defect can be remedied only by legislation and not by judicial interpretation”. Their Lordships, in the said case, have further observed that “To us, there…

Tata Education and Deveopment Trust, Mumbai vs. ACIT(Exp)-2(1) Now Assessed by DCIT (Exemptions)-2(1), Mumbai

In the result, the appeal filed by the assessee is allowed in the terms indicated above

ITA 1423/MUM/2018[2011-12]Status: DisposedITAT Mumbai24 Jul 2020AY 2011-12
Section 11Section 11(1)(c)Section 12A

…egislature has specifically provided for the same. In the absence of a time limit prescribed by the statute, no matter how desirable- even if that be so, it cannot be inferred. As observed by Hon’ble Supreme Court, in the case of Tarulata Shyam vs CIT [(1977) 108 ITR 345 (SC)], “There is no scope for importing into the statute words which are not there. Such importation would be, not to construe, but to amend the statute. Even if there be a casus omissus, the defect can be remedied only by legislation and not by judicial interpretation”. Their Lordships, in the said case, have further observed that “To us, there…

ACIT, New Delhi vs. M/S. Futurz Next Services (P) Ltd., New Delhi

The appeal of the assessee is partly allowed

ITA 2396/DEL/2017[2013-14]Status: DisposedITAT Delhi02 Jun 2020AY 2013-14

Bench: Shri Sudhanshu Srivastava & Shri Prashant Maharishi

For Appellant: Shri Ved Jain AdvocateFor Respondent: Ms Ashima Neb Sr DR
Section 143(3)Section 14ASection 2(22)(e)

…s, it is nowhere else. The need for interpretation arises when the words used in the statute are. on their own terms, ambivalent and do not manifest the intention of the Legislature. " The Hon'ble Supreme Court, in the case of Smt.Tarulata Shyam v.CIT [1977] 108 ITR 345 (SC) approved the observations in the case of Cape Brandy Syndicate Vs. IRC [1921] 1 KB 64 observing as under (page 357}: To us, there appears no justification to depart from the normal rule of construction according to which the intention of the Legislature is primarily to he gathered from the words used tit the statue. It will be well to recal…

M/S. Nokha Agro Services, Bikaner vs. Pr. CIT, Bikaner

In the result, appeal of the assessee is allowed

ITA 171/JODH/2018[2013-14]Status: DisposedITAT Jodhpur20 Mar 2020AY 2013-14

Bench: Shri R.C.Sharma & Shri Sandeep Gosainm/S Nokha Agro Services, 18 Vs Pr. Commissioner Of Income Km Stone, Nh-15, Tax, Sriganganagar Road, Bikaner. Bikaner. (Appellant) (Respondent) Pan: Aaffn 8164 R

Section 143(3)Section 263Section 80I

…tion facility should help assessee for claiming benefit of provisions of section 80IB (11A) of the Act. In the interest of justice, we set aside the order of the Assessing Officer as well as the CIT (A). In the case of Smt. Tarulata Shyam and Others Vs. CIT, 108 ITR 345 it was held that while interpreting a particular word or expression the intention of the legislature behind insertion of the particular provisions has to be kept in mind. According to him when Sec 80IB(11A) is read along with Memorandum of explaining the provisions, it would emerge that the word "handling" in its ordinary sense and in the context…

ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Zaveri & Company Pvt. Ltd, Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 1194/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad12 Mar 2020AY 2013-14

Bench: Shri Rajpal Yadav, Vice- & Shri Waseem Ahmed

For Appellant: Shri Surendra kumar, CIT-DR and
Section 10ASection 143(2)Section 143(3)Section 2Section 263

…of the Act. In absence of such a provision enacted by the Parliament in section 10AA of the Act, it is not possible for any other person to read such provision in section 10AA of the Act. Hon’ble Supreme Court in the case of Sm. Tarulata Shyam Vs. CIT (1971) 108 ITR 345 (SC) held that there is no scope for importing in the statute words which are not there. Further, Hon’ble Supreme Court in the case of CIT Vs. Shann Finance Private Limited (1998) 231 ITR 308 (SC) went on to hold that in interpreting fiscal statute, court cannot proceed to make good the deficiencies if there be any. The court must interpret the s…

ACIT, Circle-4(1)(2), Ahmedabad vs. M/S. Zaveri & Company Pvt. Ltd, Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 1193/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad12 Mar 2020AY 2012-13

Bench: Shri Rajpal Yadav, Vice- & Shri Waseem Ahmed

For Appellant: Shri Surendra kumar, CIT-DR and
Section 10ASection 143(2)Section 143(3)Section 2Section 263

…of the Act. In absence of such a provision enacted by the Parliament in section 10AA of the Act, it is not possible for any other person to read such provision in section 10AA of the Act. Hon’ble Supreme Court in the case of Sm. Tarulata Shyam Vs. CIT (1971) 108 ITR 345 (SC) held that there is no scope for importing in the statute words which are not there. Further, Hon’ble Supreme Court in the case of CIT Vs. Shann Finance Private Limited (1998) 231 ITR 308 (SC) went on to hold that in interpreting fiscal statute, court cannot proceed to make good the deficiencies if there be any. The court must interpret the s…

M/S. Zaveri & Co. Pvt. Ltd., Ahmedabad vs. The Deputy Commissioner of Income Tax, Circle-4(1)(2), Ahmedabad

In the result, both the appeals of the Revenue are dismissed

ITA 1081/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad12 Mar 2020AY 2013-14

Bench: Shri Rajpal Yadav, Vice- & Shri Waseem Ahmed

For Appellant: Shri Surendra kumar, CIT-DR and
Section 10ASection 143(2)Section 143(3)Section 2Section 263

…of the Act. In absence of such a provision enacted by the Parliament in section 10AA of the Act, it is not possible for any other person to read such provision in section 10AA of the Act. Hon’ble Supreme Court in the case of Sm. Tarulata Shyam Vs. CIT (1971) 108 ITR 345 (SC) held that there is no scope for importing in the statute words which are not there. Further, Hon’ble Supreme Court in the case of CIT Vs. Shann Finance Private Limited (1998) 231 ITR 308 (SC) went on to hold that in interpreting fiscal statute, court cannot proceed to make good the deficiencies if there be any. The court must interpret the s…

ACIT 1(2)(1), Mumbai vs. Jasubhai Engineering P.Ltd, Mumbai

Accordingly, grounds raised by revenue are dismissed

ITA 7519/MUM/2016[2013-14]Status: DisposedITAT Mumbai06 Mar 2020AY 2013-14

Bench: Shri Pawan Singh, Jm & Shri S. Rifaur Rahman, Am आयकरअपीलसं./ I.T.A. No. 7519/Mum/2016 (निर्धारणवर्ा / Assessment Year: 2013-14)

For Appellant: Shri Mohd. Rizwan, DRFor Respondent: Shri K. Shivaram /Rahul
Section 2(22)(e)

…ed loans from the other sister concern in which assessee is already holding substantial interest and in this regard, he relied on the following case law:- i) Bajaj Auto Holding Ltd vrs. DCIT (2005) 95 ITD 356. ii) Smt. Tarulata Shyam & Others vrs. CIT (1977) 108 ITR 345 (SC). iii) CIT vrs. Bhagwat Tewari (1979) 105 ITR 62 (Kol) 9. Accordingly, Ld. DR submitted that it is clear case of application of provisions of deemed dividend and relied on the findings of AO. 10. On the other hand, Ld. AR submitted that Ld. DR is referring to the case of Bajaj Auto Holding Ltd vrs. DCIT, which is relating to international…

The ACIT, (OSD)Circle-8, Ahmedabad vs. Torrent Power Ltd., Ahmedabad

In the result, the appeal of the Revenue and the Cross-objection of the assessee, both are dismissed

ITA 1668/AHD/2012[2006-07]Status: DisposedITAT Ahmedabad05 Mar 2020AY 2006-07

Bench: Shri Sandeep Gosain & Shri Amarjit Singh

For Appellant: Shri Vartik ChowkshiFor Respondent: Shri Samir Tekriwal, CIT-DR
Section 115JSection 14Section 143(3)Section 14A

…m the first year from which the asset was held by the assessee and not by the previous owner. In Taxation laws the intention of the legislature is primarily to be gathered from the words used in the statute: In the case of Smt. Tarulata Shy am v. CIT [1977] 108 ITR 345, Hon'able Supreme Court observed: "To us, there appears no justification to depart from. the normal rule of construction according to which the intention of the Legislature is primarily to be gathered from the words used in the statute. It will be well to recall the words of RowlattJ. in Cape Brandy Syndicate v. IRC [1921] 1 KB 64 (KB) at page 7…

ACIT, Non Corp CIT 7(1), Chennai vs. Jethanand Thakur Bakshani, Chennai

In the result, the Revenue’s appeal is

ITA 883/CHNY/2019[2014-15]Status: DisposedITAT Chennai25 Feb 2020AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri. AR.V. Sreenivasan, JCITFor Respondent: Shri. M. Karunakaran, Advocate
Section 2(22)(e)Section 24

…the Order of the learned Commissioner of lncome Tax (Appeals) be set aside and that of the Assessing Officer be restored.” The ld DR presented the case on the above lines and relied on the decisions of Supreme Court in the case of Smt. Tarulata Shyam vs CIT 108 ITR 345 (SC) and CIT vs. P.K. Abubucker, 259 ITR 507 (Mad) and pleaded to restore the order of the AO . 3. Per contra, the ld AR submitted that the assessee was then carrying on business as manufacturer and exporter of garments individually under the name and style of BNT Connections. He is a substantial shareholder of M/s (“company”). The company i…

S.V.Sreenivasen, Coimbatore vs. ACIT, Coimbatore

In the result, the appeals filed by the assessee in ITA

ITA 22/CHNY/2019[2014-15]Status: DisposedITAT Chennai13 Feb 2020AY 2014-15

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri Pavitran Kumar, JCIT
Section 14ASection 2(22)

…company for purchase of land is a deemed dividend. Inviting our attention to para 19 of the very same judgment, the ld. Counsel submitted that five ingredients, as propaganded by the Hon’ble Supreme Court in the case of Smt. Tarulata Shyams vs. CIT, (1977) 108 ITR 345 was not considered by the AO. 3 I.T.A. Nos.2275-18 & 22-19 Therefore, the same may be remitted back to the file of the Assessing Officer for re-consideration. 4. On the contrary, Shri Pavitran Kumar, the Ld. Departmental Representative, admitted that there are two different and distinct accounts. Therefore as held by the Hon’ble Madras High…

S.V.Sreenivasan, Coimbatore vs. DCIT Corporate Circle 2, Coimbatore

In the result, the appeals filed by the assessee in ITA

ITA 2275/CHNY/2018[2013-14]Status: DisposedITAT Chennai13 Feb 2020AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri S. Jayaraman

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri Pavitran Kumar, JCIT
Section 14ASection 2(22)

…company for purchase of land is a deemed dividend. Inviting our attention to para 19 of the very same judgment, the ld. Counsel submitted that five ingredients, as propaganded by the Hon’ble Supreme Court in the case of Smt. Tarulata Shyams vs. CIT, (1977) 108 ITR 345 was not considered by the AO. 3 I.T.A. Nos.2275-18 & 22-19 Therefore, the same may be remitted back to the file of the Assessing Officer for re-consideration. 4. On the contrary, Shri Pavitran Kumar, the Ld. Departmental Representative, admitted that there are two different and distinct accounts. Therefore as held by the Hon’ble Madras High…