Meaning of “Forward”

The meaning of forward under section 153 of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here are excerpts of courts orders in which the Hon’ble High Court tried to explain the meaning of forward.

meaning of forward

Meaning of forward

The phrase ‘ forward ‘ used in section 153 of the Income Tax Act came up before various high courts as detailed under :

1. Hon’ble Andhra Pradesh High Court explained the meaning of ‘good faith’ while delivering judgment in CIT Vs. Shahzadi Begum [1997] 225 ITR 963/94 TAXMAN 336 (AP) as under :

Meaning : The word ‘forward’ in explanation 1, sub-clause (iv), under section 153 means ‘despatch’ and not ‘issue’.

2. Hon’ble ITAT-Kolkata explained the meaning of ‘good faith’ while delivering judgment in Goldwyn Traders (P.) Ltd. Vs. ITO [1986] 18 ITD 532 (CAL. – TRIB.) as under :

Meaning : The legislature has used the word ‘forward’ as distinct from the word ‘issue’ or ‘serve’. The forwarding begins when the papers, duly signed and dated and intended for despatch to the assessee leave the table of the ito. The legislature has clearly intended this event when it has used the word ‘forward’, and not the word ‘issue’ or ‘serve’ as has been used at several other places in the act.

3. Hon’ble ITAT-Indore explained the meaning of ‘good faith’ while delivering judgment in Chandan Wood Products Vs. ITO [1984] 9 ITD 729 as under :

Meaning : According to the plain dictionary meaning, the word ‘forward’ means to put in course of transmission to the person to whom the article is intended to be ultimately delivered. In forwarding an article an intermediary agency would be necessary. The word ‘forward’ used in this clause has its natural meaning, i.E., Put in the course of transmission and cannot be read to mean ‘served’.

4. Hon’ble Madhya Pradesh High Court explained the meaning of ‘good faith’ while delivering judgment in Chandan Wood Products Vs. CIT [1988] 40 TAXMAN 194/173 ITR 585 (MP) as under :

Section : 143

Meaning : The legislature had advisedly not used the word ‘serve’ in sub-sections (1) and (2) of section 144b. That would have caused hardship to the assessee. There is no cogent reason for holding that the word ‘forward’ occurring in section 144b should not be given its natural meaning which is ‘to put in course of transmission’, or to ‘transmit’. Thus, the word ‘forward’ used in section 144b(1) does not mean ‘serve’.

5. Hon’ble Madras High Court explained the meaning of ‘good faith’ while delivering judgment in CIT Vs. Subramanian & Co. [1989] 180 ITR 149 (MAD.) as under :

Section : 143

Meaning : The expression ‘forward’ in section 144b merely means putting the draft order in the process of communication to the assessee and it will not include the requirement of actual service on the assessee.

6. Hon’ble Orissa High Court explained the meaning of ‘good faith’ while delivering judgment in CIT Vs. Om Agencies [1994] 207 ITR 794 (ORI.) as under :

Section : 143

Meaning : The expression ‘forward’ in the context used means ‘to send, forward, post on farther (letter, parcel, etc.) To person for whom it is intended’ (for example, to forward letters to a new address), to despatch, send. Merely making a direction to forward a copy, without the actual act being done cannot be construed to be forwarding of an order as required under section 144b. The language used in clause (iv) of explanation1 appended to section 153 is commencing from the date on which ito forwards the draft order’. Use of term ‘forwards’ leaves no manner of doubt that the actual act of forwarding is necessary.

7. Hon’ble Allahabad High Court explained the meaning of ‘good faith’ while delivering judgment in Sanjay Engg. Corpn. Vs. CIT 1999 Tax Lr 695 (All.) as under :

Section :143

Meaning: The word ‘forward’ occurring in sub-sections (1) and (2) of section 144b does not mean ‘issue’ and ‘serve’.

Updated up to Finance Act 2021

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