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WHY DEFINITIONS IN SECTION 2 IN EVERY ACT.

CA SUDHIR HALAKHANDI (PRACTICING CHARTERED ACCOUNTANT) (13196 Points)

05 January 2009

WHY IN ALL THE ACTs DEFINITION IS GIVEN IN SECTION 2. WHY ? IS IT A SET PATTERN ? HOW IT WAS STARTED AND BY WHOM?

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8 Replies

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.

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(Guest)

there are some common things in all the act....as you said definitions......and in section 1 there is place of apllicablity and effective date...these are made for sake of convinience

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) (13196 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

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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.