Case Law Details
Small Industries Development Bank of India Vs Central Board of Direct Taxes (Bombay High Court)
Bombay high court in income tax matter in case of SIDBI vs CBDT … Explaining at length operative impact of non obstante clause A non-obstante clause is generally appended to a Section with a view to give the enacting part of the Section, in case of conflict, an overriding effect over the provision in the same or other Act mentioned in the non-obstante clause.
It is equivalent to saying that despite the provisions of the Act mentioned in the non-obstante clause, the provision following it will have its full operation or the provisions embraced in the non-obstante clause will not be an impediment for the operation of the enactment of the provision in which the non-obstante clause occurs.
But, the same principle cannot be applied, ipso facto, when one comes across two or more enactments containing similar non-obstante clauses operating in the same or similar direction. For interpreting non-obstante clause, the statute in which it appears would have to be borne in mind. The subject of the statute, its object and purpose, the context in which the legal fiction is created all have an important bearing and a role in applying the legal fiction in all circumstances and cases contemplated by the statute.
The object of the SIDBI Act is to establish the Small Industries Development Bank of India as the principal financial institution for the promotion, financing and development of industry in the small-scale sector and to co-ordinate the functions of the institutions engaged in the promotion, financing or developing industry in the small-scale sector and for matters connected therewith or incidental thereto. Grant of exemption from payment of income tax was to provide an impetus to achieve aforesaid objects in the formative years.
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