Interpretation beneficial to assessee to be followed where two interpretations exist

If an interpretation of taxing provision is ambiguous and is reasonably capable of more than one interpretation, that interpretation which is beneficial to the assessee has to be accepted. (i) CIT v. Gwalior Rayon Silk Mfg. Co. Ltd (1992) 196 ITR 149 (SC)

(ii) CIT v. Shahzada Nand & Sons and Ors. (1966) 60 ITR 392 (SC)

(iii) CIT v. Naga Hills Tea Co. Ltd. (1973) 89 ITR 236 (SC)

(iv) CED v. R. Kanakasabai and Ors. (1973) 89 ITR 251 (SC)

(v) Saroj Aggarwal v. CIT (1985) 156 ITR 497 (SC)

(vi) CIT v. Natu Hansraj (1976) 105 ITR 43 (Guj)

(vii) CIT v. J.H. Gotala (1985) 156 ITR 323 (SC)

(viii) Vegetable Products 88 ITR 192

If a law appears to be governed by either of two premises it is clearly the right of the assessee to claim that he should be assessed under that one which leaves him with a lighter burden.  CIT v. Bosotto 8 ITR 41(Mad)