Question:
Following principles are considered as settled while interpreting taxation statutes:
Following principles are considered as settled while interpreting taxation statutes:
Updated On: Aug 4, 2024
- In interpreting a taxation statute, equitable considerations are entirely out of place. Taxation statutes cannot be interpreted on any presumption or assumption.
- Before taxing any person, it must be shown that he falls within the ambit of the charging section by clear words used in the section and the golden rule of interpretation applies.
- If the words are ambiguous and open to two interpretations, the benefit of interpretation is to be given to the State.
- both a) and b).
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The Correct Option is D
Solution and Explanation
The correct answer is option (D):both a) and b).
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[Extracted with edits from the decision of the Supreme Court in Kotak Mahindra Bank Ltd. v. Commissioner of Income Tax, Bangalore, 2023 LiveLaw (SC) 822, dated September 25, 2023].
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