AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 418
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.... three appeals were admitted on 20th March, 2009 on the following identical substantial questions of law : 'i) Whether the Tribunal is correct in law in holding that there is no liability to collect tax at source under Section 206C(1C) of the Income Tax Act, 1961 in respect of octroi collected by the agent appointed by the assessee? ii) Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that "octroi" collectible by the assessee is different than "toll" leviable by the assessee and thus is not within the ambit of 206C(1C) of the Income Tax Act, 1961?' 3. The respondent/assessee is the Municipal Corporation for the town Akola. For the subject assessment years the respondent/assessee ha....
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....he aggregate of Rs. 1.09 Crores being the tax collectible at source by the respondent/assessee along with interest thereon of Rs. 15.96 Lakhs for the subject three assessing years. 6. Being aggrieved, the respondent/assessee carried the issue in appeal in respect of the all three assessment years to the Commissioner of Income Tax (Appeals). By a common order dated 31st October, 2007, the Commissioner of Income Tax (Appeals) confirmed the view of the Assessing Officer and held that the amount collected by the agent/licensee of the respondent as octroi would be covered by Section 206C(1C) of the Act. This on the ground that the octroi collected is similar/identical to a toll. Thus, the appeals of the respondent/assessee were dismissed. 7. O....
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....r mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lesse") for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licenseee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table blow, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income tax: TABLE Sl. No. Nature of contract or licence or lease ....
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....the basic constitutional difference between that two levies. Further, Section 127 of the Maharashtra Municipal Corporation Act, 1949 lists out the power of the Corporation to impose tax as listed therein and it separately enumerates 'octroi' and 'toll'. This again is indicative of the fact that legally 'octroi' as a tax is distinct from a 'toll' as a tax. Further, we note the impugned order also placed reliance upon various dictionary meanings which again show that a 'toll' is normally collected on account of use of the roads by animals and humans. As against which, 'octroi' is normally collected on account of goods entering the corporation limits (area) for use, consumption or sale. Keeping i....
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....not import provisions in the statues so as to supply any assumed deficiency." 14. Recently the Supreme Court in CIT vs. Calcutta Knitwears [2014] 362 ITL 673 (SC) has held that while interpreting fiscal statues, the Court must not add or substitute the word in the provision. Court observed as under : "31. This Court in Tata Consultancy Services v. State of Andhra Pradesh has ascribed plain meaning to the terms computer and computer programme in a fiscal statute and reiterating the proposition laid down in Inland Revenue Commissioner case (supra), observed that a court should not be over zealous in searching ambiguities or obscurities in words which are plain. 32. In Prakash Nath Khanna v. C.I.T., 2004 (9) SCC 686, this Court has explai....
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....ch other. If we say that a certain object is a book, then we mean it is a book. If we say it is a book, but we mean it is a horse, table or an elephant, then we will not be able to communicate with each other. Life will become impossible. Hence, the meaning of the literal rule of interpretation is simply that we mean what we say and we say what we mean." 34. Thus, the language of a taxing statute should ordinarily be read understood in the sense in which it is harmonious with the object of the statute to effectuate the legislative animation. A taxing statute should be strictly construed; common sense approach, equity, logic, ethics and morality have no role to play. Nothing is to be read in, nothing is to be implied; one can only look fai....