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TMI Blog2015 (1) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... al effect of repealing a statute or deleting a provision is to obliterate it from the statute book as completely as if it had never been passed, and the statute must be considered as a law that never existed - there is no saving clause or provision introduced by way of an amendment while omitting sub-section (9) of Section 10B - therefore, once the section is omitted from the statute book, the result is it had never been passed and be considered as a law that never exists and therefore, when the assessment orders were passed in 2006, the AO was not justified in taking note of a provision which was not in the statute book and denying benefit to the assessee - the whole object of such omission is to extend the benefit u/s 10B of the Act irres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine business reorganization carried out at the global level. The assessee was enjoying the benefit under Section 10B of the Act. However, in view of the said re-organization, which resulted in change of share holding, in other word s, beneficial interest in the undertaking, the Assessing Authority declined to extend the benefit of exemption under Section 10B for the year when the reorganization took place and for subsequent years in view of sub-Section (9) of Section 10B of the Income Tax Act, 1961. The assessment orders were passed on 27.02.2006 and on 27.10.2006 for the financial years 2003-04 and 2004-05 respectively. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), who dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rce. In support of his contention, he relies on the judgment of the Apex Court in the case of KARIMTHARUVI TEA ESTATE LTD., VS. STATE OF KERALA reported in [1966] 060 ITR 0262. On the same analogy, though sub-section (9) of Section 10B was omitted with effect from 01.04.2004, on the day the beneficial interest was transferred and for subsequent period, till the said omission took place, the said omitted provision is applicable and he submits that the approach of the Tribunal is erroneous and requires to be set aside. 6. Per contra, the learned Counsel for the assessee relying on the judgment of the Constitution Bench of the Apex Court contended that when a provision in a statute is omitted from the statute book, the result is that the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be reasonably inferred that the intention of the Legislature is that the pending proceeding shall not continue but a fresh proceeding for the same purpose may be initiated under the new provision. 8. Admittedly, in the instant case, there is no saving clause or provision introduced by way of an amendment while omitting sub-section (9) of Section 10B. Therefore, once the aforesaid section is omitted from the statute book, the result is it had never been passed and be considered as a law that never exists and therefore, when the assessment orders were passed in 2006, the Assessing Officer was not justified in taking note of a provision which was not in the statute book and denying benefit to the assessee. The whole object of such omiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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