Justice Done or Undone | A Paradigm Shift in the Concept of Direct Tax Laws

  • Blog|Income Tax|News|
  • < 1 minute
  • By Taxmann
  • |
  • Last Updated on 17 May, 2022

sc reassessment proceedings

P. Roychaudhuri – [2022] 138 taxmann.com 224 (Article)

It was a settled position in law that tax laws do not operate on the basis of equity. The Hon’ble Supreme Court way back in the year 1973 in the case of CIT v. Vegetable Products Ltd. [1973] 88 ITR 192 had observed that if two reasonable constructions of a taxing provision are possible, then the construction which favours the taxpayers must be adopted.

This was before the Apex Court on 04.05.2022 in the case of Union of India v. Ashish Agarwal [2022] 138 taxmann.com 64 has come to the rescue of a beleaguered Income Tax Department and perhaps for the first time in a tax matter has invoked its extraordinary inherent power under Article 142 of Constitution of India to “do complete justice” by saving the power of the Income Tax Department to reassess Income Tax Returns in the teeth of statutory prohibitions.

The power to do ‘complete justice’ in a way is a power that gives advantage to equity over law but the concept of equity is unheard of in tax jurisprudence. The Court in Ashish Agarwal’s case ruled in favour of Revenue regarding the controversy over the procedure to be adopted by the Revenue in reassessment proceedings.

Click Here To Read The Full Article

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied