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2013 (7) TMI 582 - HC - Income TaxValidity of amendments in Chapter XIX-A of Finance Act, 2007 - proceedings before settlement commission - applications for settlement filed prior to the amendment shall abate on 1.4.2008, provided under Section 245-D (4A) and 245-HA of the amending Act questioned - Whether, amendments in Chapter XIX-A of Finance Act, 2007 are ultra vires the constitution? - Held that:- Where the plain literal interpretation of a statutory provision produces a discriminatory or incongruous or manifestly absurd or unjust result which could never have been intended by the legislature, the Court may modify the language used by the legislature or even do some violence to it, so as to achieve the obvious intention of the legislature and produce a rational construction. Since the purported objective of the amendments introduced in Chapter XIX-A by the 2007 Act is to streamline the proceedings before the Settlement Commission and to ensure expeditious disposal of pending cases, the amendments cannot be construed so as to punish an applicant for the inability or failure of the Settlement Commission to dispose of its application within the period specified in section 245D (4A), where such delay in disposal is not attributable to the applicant. By reading down the provisions of Section 245D (4A) (i) and Section 245HA (1) (iv) the constitutional validity of the amendments providing abatement of proceedings may be saved and protected from the vice of discrimination, and issue same directions to find out, if the delay is attributable to the applicants before making final order - Following decision of Star Television News Limited Versus Union of India and others [2009 (8) TMI 86 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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