Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2016 (12) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 418 - SC - Income TaxClaim of exemption on Rental income from Umed Bhawan Palace u/s 10(19A) - whether Ruler is entitled to claim exemption for the whole of his residential palace under Section 10(19A) or such exemption would confine only to that portion of the palace which is in his actual occupation - Held that:- We find that in Section 10(19A) of the I.T. Act, the Legislature has used the expression "palace” for considering the grant of exemption to the Ruler whereas on the same subject, the Legislature has used different expression namely "any one building" in Section 5 (iii) of the Wealth Tax Act. We cannot ignore this distinction while interpreting Section 10(19A) which, in our view, is significant. In our considered opinion, if the Legislature intended to spilt the Palace in part(s), alike houses for taxing the subject, it would have said so by employing appropriate language in Section 10(19A) of the I.T. Act. We, however, do not find such language employed in Section 10(19A). As rightly pointed out by the learned senior counsel for the appellant, Section 23(2) and (3), uses the expression “house or part of a house”. Such expression does not find place in Section 10(19A) of the I.T. Act. Likewise, we do not find any such expression in Section 23, specifically dealing with the cases relating to “palace”. This significant departure of the words in Section 10(19A) of the I.T. Act and Section 23 also suggest that the Legislature did not intend to tax portion of the “palace” by splitting it in parts. It is a settled rule of interpretation that if two Statutes dealing with the same subject use different language then it is not permissible to apply the language of one Statute to other while interpreting such Statutes. Similarly, once the assessee is able to fulfill the conditions specified in section for claiming exemption under the Act then provisions dealing with grant of exemption should be construed liberally because the exemptions are for the benefit of the assessee. In the light of these reasonings, we are of the considered opinion that the view taken by the M.P. High Court in Bharatchandra Banjdeo’s case (1985 (1) TMI 38 - MADHYA PRADESH High Court ) and the Rajasthan High Court in H.H. Maharao Bhim Singhji’s case (1987 (8) TMI 12 - RAJASTHAN High Court ) is a correct view. This takes us to the last submission of learned counsel for the appellant who made a feeble attempt to question the legality and propriety of the requisition proceedings initiated by the Central Government (Ministry of Defence) in relation to portion of land. It was urged that even after expiry of the period of requisition, the Defence Ministry, continues to remain in possession of the land to the detriment of the interest of appellant. To say the least, in our view, this submission is wholly misplaced in this appeal. The appellant, in our view, has to raise this issue in appropriate proceedings before competent Fora for their adjudication and not in this appeal which arises out of income-tax proceedings and has nothing to do with requisition proceedings of the land. In view of foregoing discussion, the appeal succeeds and is accordingly allowed. The impugned order is set aside. As a consequence, the question referred to the High Court in the reference proceedings out of which this appeal arises is answered in favour of the appellant (assessee) and against the Revenue.
|