Let us now see, with the help of various legal procedures, how different provisions have been interpreted by the courts. It is interesting to note that each case is unique in its interpretation, but leads to a principle which, if not already discussed above, is noted at the end of each decision – Mumbai Court in itO v. PHE Consultants – 64 taxmann.com 419 in the interpretation of the article 198 provision stipulated that – Thus, once the purpose of the provision is achieved, it cannot be dragged out. The above analysis thus shows that, although a provision may be drafted as a provision, a thorough analysis of its object and purpose plays a crucial role in interpreting the provision in its proper context and in defining, limiting and delimiting its scope. `(8) It should be noted that, although the provisions of Article 198 specify that the tax withheld at source is to be regarded as income received, it does not indicate the year of application of those provisions. However, section 198 specifies that such income is to be considered income obtained “for the purpose of calculating the income of an appraiser.” The provisions of article 145 of the Act stipulate that the income of an appraiser to be offset under the heading “Profits and profits from a business or profession” or “Income from other sources” shall be calculated either according to the cash or commercial invoicing system regularly applied by the appraiser. A combined interpretation of the provisions of sections 198 and 145 of the Act therefore makes it clear, in our view, that income deemed to have been received u/s 198 must be calculated in accordance with the provisions of section 145 of the Act, so that the amount of the SDT as such cannot be considered as income of the appraiser by ignoring the accounting policy used by the appraiser. Therefore, Rule 37BA of the Income Tax Code provides that the TDS credit is granted to the taxpayer in the taxation year in which that income is taxable, which means that the TDS amount is also credited proportionately. This decision shows how to apply two fundamental principles of interpretation of the provisions, namely an interpretation as intended in relation to the full effectiveness of this provision. However, it can be noted that there are decisions that interpret it differently. It is now at the mercy of a subjective interpretation. However, where the purpose of a provision is to establish a particular presumption, such a rebuttable presumption created by the provision may be rebutted by providing evidence in support of an allegation, unless that presumption is rendered irrebuttable. Sometimes, when a provision relates to a fact, that fact has been given priority. For example, in the case of section 72A, a loss incurred as a result of the amalgamation of corporations is treated as a loss suffered by a merged corporation, and then the legal consequences of the loss to the amalgamated corporation follow.

Often, we have come across the word “taken into account” when reading a particular law or statute. Depending on the meaning of the dictionary, a provision is a section or clause of a law, regulation or other legal instrument that determines how something is to be treated or considered. But in general, the concept of these provisions under consideration always leads to a certain degree of speculation and uncertainty as to interpretation. There is a general sense of perplexity unless you are particularly familiar with the use of legal jargon and have a significant influence on it. Chelameshwar J. then explained the difference between legal fiction and presumption as follows – 38. We have already established that, by definition, a “fiction is always in contradiction with reality, while the presumption can be proved true”. It follows that there is no way for a fiction to be refuted by evidence. 7. At this point, it is important to point out that the provision is considered a well-known legislative instrument. What is not done as a fact is treated as fact. When, in a law, the phrase “is used as “considered as such”, a fiction arises and something is treated in such a way that it is not actually treated.

In a legal fiction, an imaginary situation is treated as a real situation for a specific purpose, for which such a legal fiction is created by legislative means. We can cost-effectively refer to the madhya Pradesh High Court`s observation in CIT vs Chhoteal Kanahyalal – 80 ITR 656, in which it stated that the rule of constructing legal fiction is to “hunt in pairs”. Thus, when interpreting a provision that creates a legal fiction, two rules apply: the legal fiction must be brought to its logical conclusion, but the fiction cannot be developed through the language of the section by which it was created or by importing another fiction. The provision cannot be extended to exclude any other form of evidence that the land is sufficiently enclosed. 10…. The income alleges that a loss resulting from a transaction to sell and buy shares would constitute a loss resulting from a speculative transaction within the meaning of the explanation. However, the profit resulting from a transaction involving the actual supply of shares would not constitute a profit within the meaning of Article 73(1) and (2) for which compensation may be granted. To accept the presentation of revenue would be to introduce a limitation on the scope and scope of the provision created by the Explanatory Note to Article 73, which is not examined by the Parliament […].

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