ASSISTANT COMMISSIONER OF INCOME TAX v. SHELF DRILLING RON TAPPMEYER LIMITED
Discusses statutory interpretation, non-obstante clauses, and tax law principles, applicable across legal domains.
Court: Supreme Court of India
Citation: 2025 INSC 946
Decision Date: 08-08-2025
List of Laws
The Income Tax Act, 1961; Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 ("TOLA"); Principles of Statutory Interpretation; Non-Obstante Clause; Code of Civil Procedure, 1908
- The Income Tax Act, 1961: Section 2: Discusses the definition of "regular assessment" under sub-section (40) as assessment made under Section 143(3) or Section 144. Section 44BB: Addresses the computation of profits and gains for businesses involved in mineral oil exploration, applicable to the respondent assessees. The explanation clarifies that "plant" includes ships, aircrafts, etc., and "minerals oil" includes petroleum and natural gas. Section 92CA: Discusses the extension of time for assessment when a reference is made to the Transfer Pricing Officer. Sub-section (3A) is mentioned in relation to Section 153. Section 119(2)(b): Discusses returns furnished in consequence of an order under this clause, allowing assessment under Section 143 or 144 within twelve months. Section 129: Refers to the proviso concerning the opportunity to be re-heard, relevant to computing the period of limitation under Section 153. Section 131(1): Mentions the powers of the Dispute Resolution Panel, equating them to those of a court under the Code of Civil Procedure, 1908. Section 132 & 132A: Discusses the extension of assessment periods when a search or requisition is initiated under these sections. Section 139: Mentions the filing of return of income. Sub-section (8A) is discussed in relation to assessment timelines. Section 142: Discusses notices issued under sub-section (1) calling for documents and details, and sub-section (2A) regarding directions to audit accounts. Section 142A: Discusses reference to the Valuation Officer and its impact on assessment timelines. Section 143: Deals with assessment procedures, particularly sub-section (3) concerning regular assessments. Mentions notices issued under sub-section (2). Section 144: Deals with best judgment assessment. Section 144A: Discusses the power of the Joint Commissioner to issue directions. Section 144BA: Discusses reference to the Principal Commissioner or Commissioner. Section 144C: This section is central to the judgment. Sub-section (1) mandates forwarding a draft assessment order to eligible assessees when variations prejudicial to their interests are proposed. Sub-section (2) outlines the assessee's options upon receiving the draft order. Sub-section (3) specifies the Assessing Officer's actions based on the assessee's response. Sub-section (4) prescribes a one-month deadline for passing the assessment order, notwithstanding Sections 153 or 153B. Sub-section (5) concerns the Dispute Resolution Panel's role in issuing directions. Sub-section (6) lists the materials the DRP considers. Sub-section (7) allows the DRP to make further inquiries. Sub-section (8) defines the DRP's powers to confirm, reduce, or enhance variations. Sub-section (9) addresses differing opinions within the DRP. Sub-section (10) makes DRP directions binding. Sub-section (11) requires a hearing before issuing prejudicial directions. Sub-section (12) sets a nine-month deadline for DRP directions. Sub-section (13) mandates assessment completion within one month of receiving DRP directions, notwithstanding Sections 153 or 153B. Sub-section (15) defines "Dispute Resolution Panel" and "eligible assessee". Section 147: Deals with assessment, reassessment or recomputation. Section 148: Discusses notices issued under this section and their impact on assessment timelines. Section 150: Discusses the assessment of income for another assessment year. Section 153: This section is central to the judgment. Sub-section (1) sets the time limit for assessment under Sections 143 or 144. Sub-sections (1A) and (1B) provide exceptions to sub-section (1). Sub-section (3) concerns fresh assessments after orders under Sections 250, 254, 263, or 264. Sub-section (3A) addresses situations where assessment is pending during a search or requisition. Sub-section (4) extends the assessment period when a reference is made under Section 92CA. Sub-section (5) specifies the time for giving effect to orders under Sections 250, 254, 260, 262, 263, or 264. Sub-section (5A) concerns orders under Section 263 by the Transfer Pricing Officer. Sub-section (6) lists classes of assessments not subject to sub-sections (1), (1A), and (2). Sub-section (7) addresses orders received before June 1, 2016. Sub-section (8) concerns orders revived under Sections 153A or 158BA. Sub-section (9) applies provisions before the Finance Act, 2016. Explanation 1 outlines periods excluded from limitation. Explanation 2 defines terms for the section's purposes. Section 153A & 153B: Discusses timelines for assessment. Section 154: Discusses orders passed under this section. Section 156: Discusses demand notice. Section 158BA & 158BE: Discusses timelines for assessment. Section 172: Discusses assessment order passed on the landing of a ship on the Indian shores. Section 244A: Discusses payment of interest. Section 245C: Discusses application made before the Settlement Commission. Section 245D: Discusses order received by the Principal Commissioner or Commissioner. Section 245HA: Discusses proceeding before the Settlement Commission abates. Section 245M: Discusses the assessee exercises the option to withdraw the application. Section 245Q & 245R: Discusses application made before the Authority for Advance Rulings. Section 246A: Deals with appeals before the Commissioner (Appeals). Section 250: Discusses orders under this section. Section 253: Deals with appeals to the Tribunal. Sub-section (1)(d) is specifically mentioned. Section 254: Discusses orders under this section, particularly in relation to remands. Section 260 & 262: Discusses orders under these sections. Section 263 & 264: Discusses orders under these sections and their impact on assessment timelines.
- Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 ("TOLA"): The judgment mentions the operation of TOLA and notifications issued thereunder, extending due dates for compliance.
- Principles of Statutory Interpretation: The judgment extensively discusses principles of statutory interpretation, including the need for effective and operative construction, avoiding futility, and adhering to clear and unambiguous language. It emphasizes harmonious construction, considering the statute as a whole, and aligning with legislative intent. It also discusses the interpretation of taxing statutes, citing principles like strict interpretation, favoring the taxpayer when ambiguity exists, and avoiding presumptions. The judgment also discusses the interpretation of non-obstante clauses, citing several Supreme Court precedents.
- Non-Obstante Clause: The judgment provides a detailed analysis of non-obstante clauses, their purpose, and how they should be interpreted. It emphasizes that while a non-obstante clause can have a wide amplitude, its effect is limited to the extent intended by the legislature. The judgment distinguishes between "subject to" and "notwithstanding" clauses. It also discusses the interpretation of non-obstante clauses in the context of Section 144C of the Income Tax Act.
- Code of Civil Procedure, 1908: The judgment mentions that the Dispute Resolution Panel shall have the same powers as are vested in a Court under this Code.
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