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TMI Blog1993 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the interest received from the banks on fixed deposits was incidental to or consequential to the activities of the business of the assessee and was not taxable under the head 'Income from other sources' and, thus, exempt under section 10(29) of the Income-tax Act, 1961 ?" The reference is in respect of the Orissa State Warehousing Corporation (hereinafter referred to as " the assessee which is a statutory authority under the Agriculture and Co-operation Department of the Government of Orissa. It is established under the Warehousing Corporations Act, 1962. For the assessment year 1983-84, besides its busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of surplus funds in banks and the amounts kept in fixed deposits and other deposits in banks have nexus with the earnings from letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities, and, therefore, the income has been rightly held to be exempt by the Tribunal. For resolution of the dispute, it is necessary to refer to section 10(29) of the Act which reads as follows: "10. Incomes not included in total Income. - In computing the total income of the previous year of any person, any income falling within any of the following clauses shall not be included. . . . (29) in the case of an authority constituted under any law for the time being in force for the marketing of commodities, any incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich do not form part of total income ". According to section 2(45), " total income " means total amount of income referred to in section 5, computed in the manner laid down in the Act. Exemption granted under the Act is of two kinds. Certain incomes are exempt from charge and are also excluded from the assessee's total income, for example, the income exempted under sections 10, 10A, 10B, 11, 12, 13A, etc. Certain other incomes are exempted from income-tax but they are to be included in the assessee's total income; for example, the sums exempted under section 86 which are expressly declared by section 66 to be includible in the assessee's total income. Though the burden is on the Revenue authorities to show that receipt constitutes income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are entirely out of place. The court must look squarely at the words of the statute and interpret them. It must interpret a taxing statute in the light of what is clearly expressed ; it cannot imply anything which is not expressed ; it cannot import provisions in the statute so as to supply any assumed deficiency. One has to look 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 has to be read in, nothing is to be implied. One can only look fairly at the language used. In case of reasonable doubt, the construction most beneficial to the subject is to be adopted. But even so, the fundamental rule of construction is the same for all statutes, whether fisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at hand, there is no necessity to go any further. The court expounds those words in the natural and ordinary sense of the words. As indicated above, in case of ambiguity and uncertainty, every word, every section and every provision is examined. The statute is examined as a whole. The necessity which gave rise to the Act is also examined. Mischiefs which the Legislature intended to redress are looked at. The court will not consider any provision out of the framework of the statute. It will not view the provisions as abstract principles separated from the motive force behind. The provisions have to be considered in a manner so as to ensure coherence and consistency within the law as a whole and to avoid undesirable consequences. This advent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iberal and strict construction of an exemption provision is to be invoked at different stages of interpreting it. When the question is whether a subject falls in the notification or in the exemption clause, then it being in the nature of exception, it is to be construed strictly and against the subject but once ambiguity or doubt about applicability is lifted and the subject falls in the notification then full play should be given to it and it calls for a wider and liberal construction. (See Union of India v. Wood Papers Ltd., AIR 1991 SC 2049). Liberal construction of a statute so as to effectuate the object thereof can be taken recourse to while interpreting a particular provision when two opinions are capable of being held. (See CIT v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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