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1975 (2) TMI 50 - SC - Indian LawsWhether the difference of 10 per cent, between an industrial company and other companies in the levy of income-tax provided in the Finance Act, 1966, is to be construed as a "rebate" or "relief" in the payment of any direct tax, for the development of an industry for the purposes of section 7(e) of the Payment of Bonus Act, 1965? Held that:- the language of section 7(e) is crystal clear and self-contained. It indicates in unmistakable terms that the "rebate or relief" in the payment of any direct tax in order to fall within the purview of this clause must satisfy two conditions, viz., (i) that it must be a rebate or relief "allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act", and, further, (ii) that it must be a relief or rebate for the development of any industry. In the present case, condition (i) is lacking. The Finance Act, 1966, does not say that this difference of 10 percent, in the rates of tax applicable to an industrial company and any other company is to be deemed to be a rebate or relief for the development of industry. Nor has it been shown that this difference in the rates is allowed as a rebate or relief under any other extant law relating to direct taxes. The High Court was, therefore, right in holding that it was not permissible to use the speech of the Finance Minister to construe the clear language of the statute. Appeal dismissed.
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