CA Sudhir Halakhandi (PRACTICING CHARTERED ACCOUNTANT) (13401 Points)
05 January 2009WHY IN ALL THE ACTs DEFINITION IS GIVEN IN SECTION 2. WHY ? IS IT A SET PATTERN ? HOW IT WAS STARTED AND BY WHOM?
shailesh agarwal
(professional accountant)
(7642 Points)
Replied 05 January 2009
after introduction every act started with deffinations so it is logical and natural
i don't think nothing special behind this.
Pratik K
(Student)
(3406 Points)
Replied 05 January 2009
Even I was surpried in begining of the CA studies.But I found that in each and every act firstly the basic regarding applicability is seen.Because if person starts to see the act he firstly be able to identify to whom and how it will be applicable.
Secondly the person will required few knowledge about the act as its may be specifically intended and objected for some purpose.And definitions clearly states that purpose.Hence its becomes neccesary to provide definition in sec2.
Not only in India but I found that in many other countries its is similar.I have noticed in most of the countries having 2nd section as definition.
(I just read a few books and I shared my knowldge pls kindly forgive if I am wrong at any time)
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 05 January 2009
You are right Pratik . But my quetion is still the same. How it was started and how it happened that it is now followed every where. In my knowledge , every body when started reading more than one Act, got surprised to know that Definitions are in same section.
Here see the exception - Have you read the definition of terms used in service Tax. These are not in Section 2. Why ?
Because we don't have seperate Service Tax Act, and we have a makeshift arrangement in Finance Act 1994 and here for service tax the definitions are given in Section 65.
See hear that the fact is that the definition in almost all the Acts are given in Section 2 but how many Logical things are done in the world in the same manner everywhere . Hence my question remained the same-
Why Section 2 and when it was started. there are difference in charging sections, penalty sections etc then why definitions in Section 2 every where? I am searching for the history and will definitely share with the forum.
CA. Rajeev Aggarwal
(Chartered Accountant)
(3424 Points)
Replied 05 January 2009
thanks sudhir for taking initiative and we will be waiting for ur response
CS Arpita Rajpurohit
(Company Secretary)
(1111 Points)
Replied 06 January 2009
i think the logic behind this may b that as sec.1 generally deals with applicability.........now the next thing i.e. sec. 2 contains definitions so that the readers can understand the words which are used......their meanings........it helps in knwoing the context in which the words are used in the act.
CA Sudhir Halakhandi
(PRACTICING CHARTERED ACCOUNTANT)
(13401 Points)
Replied 06 January 2009
THANKS RAJEEV BUT STILL I AM CLULESS.
CA Rashmi
(final cleared)
(680 Points)
Replied 11 January 2009
good question sudhir sir,do share the answers.
CAclubindia
