9911796707
TMI Blog1989 (4) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... very many grounds have been taken by the assessee before us in relation to both the assessment years under appeals, the main ground relates to the legal issue that the learned Commissioner could not revise the assessment orders made by the learned Inspecting Assistant Commissioner of Income-tax, since those assessment orders have been subject matter of appeals by the assessee and those appeals stood decided by the learned first appellate authority, viz. the learned Commissioner of Income-tax (Appeals) on 19-2-88 and 23-10-86 respectively. Here we will like to emphasise that about the dates of the orders of the learned Commissioner made under section 263 of the Act as also that of the learned Commissioner of Income-tax (Appeals) made as first appellate authority on the appeals of the assessee are not in dispute. The case of the assessee is that the impugned orders of learned Commissioner made for both the assessment years under section 263 of the Act are directly contrary to the law laid down by the Hon'ble jurisdictional High Court -- Bombay High Court -- in the case of CIT v. P. Muncherji & Co. [1987] 167 ITR 671/32 Taxman 551, the Hon'ble jurisdictional High Court having laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120 ; (b) " record " includes all records relating to any proceeding under this Act available at the time of examination by the Commissioner ; (c) Where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal, the powers of the Commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal.) (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. Explanation : In computing the period of limitation for the purposes of sub-section (2), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s so that it is capable of two meanings, one which would preserve the benefit and another which would take it away, the meaning which preserves it should be adopted. The fourth rule is that if the strict grammatical interpretation gives rise to an absurdity or inconsistency, such interpretation should be discarded and an interpretation which will give effect to the purpose the Legislature may reasonably be considered to have had will be put on the words, if necessary, even by modification of the language used." It is a well-known rule of statute drafting that a statute is to be regarded as always speaking. If we have to take that to be so, which, in this case, is then Explanation appended to sub-section (1) of section 263 of the Act, which was substituted (as mentioned above by Finance Act, 1988), is to be effective from 1-6-88. The cut off date if clearly mentioned and accordingly it has to be held that the statute, speaks for itself and it has to be held to be affecting the subject matter with effect from 1-6-88 and no action earlier to that date. The case of the revenue that it is retrospective in operation, which it is not, since the question whether a statute operates prospe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airs vested rights acquired under existing laws or creates a new obligation, imposes a new duty or attaches a new disability in respect to transactions or considerations already past." The question whether a statute operates prospectively or retrospectively is one of legislative intent. If the terms of a statute are clear and unambiguous and it is manifest that the Legislature intended the Act to operate retrospectively it must unquestionably be so construed. If, however, the terms of a statute do not of themselves make the intention certain or clear, the statute will be presumed to operate prospectively where it is in derogation of a common law right, or where the effect of giving it a retrospective operation would be to interfere with an existing contract, destroy a vested right or create a new liability in connection with a past transaction or invalidate a defence which was good when the statute was passed.' 6. The Explanation referred to above cannot be said to look backward since it speaks for itself and its effect is so very clear inasmuch as it speaks of, 'with effect from 1-6-1988.' 7. In the memo explaining provision in Finance Act, 1988, vide para 48, dealing with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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