Law: Business Profits Tax Act, 1947

Section: 11,14

(a) Business Profits Tax Act (XXI of 1947) [before amendment effected by Finance Act (I of 1957)] Ss. 11 & 14 S. 11 controlled by period of limitation prescribed by S. 14. Where it was argued that inasmuch as section 11 of the Business Profits Tax Act, 1947 does not provide for any period of limitation it is open to the officer concerned to issue notice of assessment at any time and there is no reason to import the provisions of section 14 of the Act and provide limitation in respect of the issue of notice under section 11 of the Act: Held, that it cannot be said that one section in the said statute must contain all the provisions relating to assessment of business profits tax. The statute should be read as a whole i.e., all the sections of the statute should be read to determine whether the Legislature intended that section 11 of the Business Profits Tax Act, 1947 should be governed by section 14 of the Act. It is difficult to hold that the Legislature provided a period of four years in case of profits escaping assessment but, at the same time, in section 11 of the Act, gave power to the taxing officer to initiate proceedings in respect of the assessment of any number of years, i.e., any indefinite and unlimited period, for, if that were allowed, it would mean that the Legislature said one thing in section 14 of the Act and a different thing in respect of the assessment in section 11 of the Act. In inter¬preting the statute, one is to see whether a reasonable meaning can be given after reconciling the various provisions contained in the different sections and not to read one section independently of all other sections and give any unreasonable interpretation. Therefore, after the liability for assessment has arisen and it is not assessed, the Legislature has provided under section 14 of the Act that such income or profits are not to be taxed after four years of the end of the chargeable accounting period. Commissioner of Income tax, Bombay City v. Narsee Nagsee & Co. (1957) 31 I T R 164; Messrs Bissessar House v. State of Bombay A I R 1959 Born. 130 (F B) and Commissioner of Income--tax, Bombay v. Pirojbai N. Contractor A I R 1937 Bom. 14 rel. (b)…

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