Section 529A of the Companies Act, 1956 would prevail over the Income Tax Act, 1961 – M/s Beta Nephthol Ltd. Vs. Ref. has been Recd. from BIFR New Delhi – Madhya Pradesh High Court
Hon’ble High Court held that firstly, the provisions of s.529A of the Act of 1956 have come into force on 1985 whereas s.170 of the IT Act has come into force in the year 1961, thus, the subsequent provisions of s.529A of the Act of 1956 would have precedence over the IT Act. Secondly, the Act of 1956 is a special Act which govern the law regarding companies only whereas IT Act is a general Act which percolates in just about every sphere of life and is applicable to all the citizen of India when it comes to payment of Income Tax. Thirdly, it is also found that s.529A and s.530 of the Act of 1956 have already taken into account inter alia the provisions of Income Tax and thus, the harmonious reading of the provisions of the two Acts leads this court to the one and only unescapable conclusion, that s.529A of the Act of 1956 would prevail over the Income Tax Act.
