9911796707
TMI Blog2004 (4) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... eturns for the assessment year 2003-2004 and also to show cause why penalty be not imposed for not furnishing the returns in time. The short contention of learned counsel for the petitioner is that the petitioner is a local authority and is hence exempt from income-tax under section 10(20) of the Income-tax Act. Sri B.D. Mandhyan, learned counsel for the petitioner, has submitted that earlier for the assessment year 1978-79 an assessment order was passed against the petitioner by the Income-tax Officer, A-Ward, Bulandshahr, on May 25, 1982, against which an appeal was filed before the Commissioner of Income-tax (Appeals), Meerut, who by order dated September 6, 1982, allowed the appeal and held that the petitioner is a local authority and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to section 10(20). It may be noted that the Explanation to section 10(20) uses the word "means" and not the word "includes". Hence it is not possible for this court extend the definition of "local authority" as contained in the Explanation to section 10(20), vide P. Kasilingam v. P. S. G. College of Technology, AIR 1 SC 1395 (para. 19). It is also not possible to refer to the definitions in other Acts, as the Income-tax Act now specifically defines "local authority". It is well settled that in tax matters the literal rule of interpretation app and it is not open to the court to extend the language of a provision in the Act by relying on equity, inference, etc. It is the first principle of interpretation that a statute should be read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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." Learned counsel for the petitioner has submitted that such a view, which we are taking, will cause hardship to the petitioner. It is a well-settled principle of interpretation of taxing statutes that there is no equity in tax, and hence considerations of hardship are irrelevant. In CIT v. G. Hyatt [1971] 80 ITR 177; AIR 1971 SC 725, the question was whether under section 17(3) of the Income-tax Act, 1961, the interest on the assessee's own contribution to an unrecognised provident fund could be treated as salary. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain raw materials were used in the manufacture of goods for sale. The contention of the assessee was that the word used in the Act was "for sale" and not "for sale by him" and hence the goods sold by a third party were also covered by the provision. This contention was accepted by the Supreme Court, which followed the literal rule of interpretation. In CWT v. Ellis Bridge Gymkhana [1998] 229 ITR 1 (SC); AIR 1998 SC 120, the Supreme Court held that the word "individual" in the charging section could not be stretched to include an association of persons. The court held that the charging section had to be construed strictly, and if a person could not be brought within the ambit of the charging section by clear words, he could not be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are treated as local authorities under the Explanation to section 10(20). In our opinion there is no merit in this submission also. It may be mentioned that in tax matters the Government has a greater latitude to tax one category and not to tax other categories vide Anant Mills Co. Ltd. v. State of Gujarat, AIR 1975 SC 1234 ; R. K. Garg v. Union of India [1982] 133 ITR 239 (SC); [1982] UPTC 355 (SC); Malwa Bus Service P. Ltd. v. State of Punjab [1983] 3 SCC 237 ; ITO v. N. Takin Roy Rymbai [1976] 103 ITR 82 (SC) ; AIR 1976 SC 670 ; Amalgamated Tea Estate Co. Ltd. v. State of Kerala [1974] 94 ITR 479 (SC) ; [1975] UPTC 89, etc. A taxing statute is not open to attack on the ground that it taxes some persons or objects and not others vide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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