9911796707
TMI Blog1975 (2) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... r to fall within the purview of this clause must satisfy two conditions, viz., (i) that it must be a rebate or relief "allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act", and, further, (ii) that it must be a relief or rebate for the development of any industry. In the present case, condition (i) is lacking. The Finance Act, 1966, does not say that this difference of 10 percent, in the rates of tax applicable to an industrial company and any other company is to be deemed to be a rebate or relief for the development of industry. Nor has it been shown that this difference in the rates is allowed as a rebate or relief under any other extant law relating to direct taxes. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... azdoor Sangh (respondent No. 1) was that the rate should be 55 per cent, as the company was paying the tax at that rate only. As against this, the company contended that it was entitled to deduct as per section 7( e ) of the Bonus Act, direct tax at the normal rate of 65 per cent, and not at 55 per cent, which was only concessional levy amounting to a "relief" for the purpose of development. The Tribunal accepted the contention of the company. After referring to the speech of the Finance Minister on the Budget for 1966-67, the Tribunal held : "......While the private companies have been normally assessed to income-tax at the rate of 65 per cent, those engaged in industrial undertakings have been assessed at the concessional rate of 55 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gains during that year." Section 7, to which section 6( c ) is subject, provides how, for the purposes of the Act, the direct tax payable by the employer is to be calculated. Clause ( e ) of section 7 is material. It runs thus: "( e ) no account shall be taken of any rebate (other than development rebate or development allowance) or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry." The rates of income-tax applicable to private limited companies under Paragraph F, Part I of the First Schedule fixed by the Finance Act, 1966, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... providing a suitable climate of growth" and, in that context, described the rate of 55% tax on industrial companies as a "concessional rate". We are afraid that what the Finance Minister said in his speech cannot be imported into this case and used for the construction of clause ( e ) of section 7. The language of that provision is manifestly clear and unequivocal. It has to be construed as it stands, according to its plain grammatical sense without addition or deletion of any words. As a general principle of interpretation, where the words of a statute are plain, precise and unambiguous, the intention of the legislature is to be gathered from the language of the statute itself and no external evidence such as Parliamentary Debates, Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed as a rebate or relief under any other extant law relating to direct taxes. The High Court was, therefore, right in holding that it was not permissible to use the speech of the Finance Minister to construe the clear language of the statute. For the foregoing reasons the question posed above is answered in the negative and the appeal is dismissed. As regards the costs, the delay in payment of the bonus caused by the pendency of this appeal has been amply compensated vide this court's order dated February 17, 1972, which is to this effect: "The order of ex parte stay is made absolute on the condition that the petitioner-appellant shall pay six per cent, interest on any amount that is found payable by the appellant to the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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