It is
ludicrous on the part of the Revenue authorities to expect the
assessees to do something which is almost impossible
13) In M/s. Reliance Jute and Industries Ltd. v. C.I.T., West
Bengal, Calcutta (1980) 1 SCC 139
, this Court had, no doubt, pointed out the
cardinal principle of tax law that the law to be applied has to be
the law in force in the assessment year. However, this is qualified
by the exception when it is provided otherwise expressly or by
necessary implication, as is clear from the following
observations:
“6. The assessee claims a vested right under
Section 24(2)(iii), as it stood before its amendment
in 1957, to have the unabsorbed loss of 1950-51
carried forward from year to year until the loss is
completely absorbed. The claim is based on a
misconception of the fundamental basis underlying
every income tax assessment. It is a cardinal
principle of the tax law that the law to be applied is
that in force in the assessment year unless
otherwise provided expressly or by necessary
implication...”
14) In the same paragraph, the Court also remarked that 'a right
claimed by an assessee under the law in force in a particular
assessment year is ordinarily available only in relation to a
proceeding pertaining to that year'. Thus, it clearly follows that
though normally the law which is in force in the assessment year
would prevail, but this is not an absolute principle as the Court
itself carved out exceptions thereto by making it clear that such
exception can be either express or implied by necessary
implication. Even the principle which is mentioned is qualified with the words 'ordinarily available'.
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 4476 OF 2015
(ARISING OUT OF SLP (C) NO. 24330 OF 2011)
COMMISSIONER OF INCOME TAX-19
MUMBAI .
V
M/S. SARKAR BUILDERS
A.K. SIKRI, J.
Citation; (2015) 7 SCC 579
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