The Mischief Rule: The mischief rule is a rule of statutory Computation of " Salary “

interpretation that attempts to determine the legislator’s Income Salary income of an employee is to be computed in
intention. Originating from a 16th-century case (Haydon’s accordance with the provisions laid down in sections 15, 16
case) in the United Kingdom, its main aim is to determine the and 17. Section 15, as discussed earlier gives the scope of this
“mischief and defect” that the statute in question has set out head and tells us that which incomes shall form part of this
to remedy, and what ruling would effectively implement this head. Section 16 gives deductions to be allowed out of
remedy. When the material words are capable of bearing two incomes taxable under this head. Section 17(1) defines the
or more constructions the most firmly established rule or word ‘salary’ as mentioned in section 15. Section 17(2) and
construction of such words “of all statutes, in general, be 17(3) further define the terms ‘Perquisites’ and “profits in
they penal or beneficial, restrictive or enlarging of the lieu of salary”. These can be depicted in the form of chart
common law is the rule of Heydon’s case. The rules laid given below :
down, in this case, are also known as Purposive Construction
or Mischief Rule. The mischief rule is a certain rule that
judges can apply in statutory interpretation in order to
discover Parliament’s intention. Heydon’s case: This was set
out in Heydon’s Case where it was stated that there were
four points to be taken into consideration when interpreting
a statute: 1. What was the common law before the making of
the act? 2. What was the “mischief and defect” for which the
common law did not provide? 3. What remedy the
Parliament hath resolved and appointed to cure the disease
of the commonwealth? 4. What is the true reason for the
remedy? The office of all the judges is always to make such
construction as shall suppress the mischief, and advance the
remedy, and to suppress subtle inventions and evasions for
continuance of the mischief, and pro privato commodo, and
to add force and life to the cure and remedy, according to the
true intent of the makers of the Act, pro bono publico. The
application of this rule gives the judge more discretion than
the literal and the golden rule as it allows him to effectively
decide on Parliament’s intent. It can be argued that this
undermines Parliament’s supremacy and is undemocratic as
it takes lawmaking decisions away from the legislature.
Use of this Rule : This rule of construction is of narrower
application than the golden rule or the plain meaning rule, in
that it can only be used to interpret a statute and, strictly
speaking, only when the statute was passed to remedy a
defect in the common law. Legislative intent is determined by Different receipts Tax treatment
examining secondary sources, such as committee reports, Basic salary Taxable.
treatises, law review articles and corresponding statutes. This Dearness allowance/pay Taxable.
Advance salary Taxable in the year of receipt.
rule has often been used to resolve ambiguities in cases in
Arrears of salary Taxable in the year of receipt, if not
which the literal rule cannot be applied. The Supreme Court taxed on due basis earlier.
in Bengal Immunity Co. v. State of Bihar, applied the mischief Leave encashment while in service Taxable
rule in construction of Article 286 of the Constitution of India. Leave encashment at the time of retirement or at the time of
After referring to the state of law prevailing in the province leaving job. - Exempt in the hands of a Government employee In the
prior to the constitution as also to the chaos and confusion case of a non- Government employee’, it is exempt in some cases
that was brought about in inter-state trade and commerce by Salary in lieu of notice Taxable
indiscriminate exercise of taxing powers by the different Salary to partner: Not chargeable under the head “Salaries? but
Provincial Legislatures founded on the theory of territorial taxable under the head ‘Profits and gains of business or profession.
Fees and commission : Taxable.
nexus, Chief Justice S.R. Das, stated “It was to cure this
Bonus Taxable on receipt basis if not taxed earlier on due basis.
mischief of multiple taxation and to preserve the free flow of Gratuity Exempt in the hands of a Government employee’. In the
interstate trade or commerce in the Union of India regarded case of a non- Government employee’, it is exempt in some cases
as one economic unit without any provincial barrier that the Monthly pension (i.e., uncommuted pension) Taxable
constitution maker adopted Article 286 in the constitution”. Lump sum payment of pension (i.e., commuted pension) Exempt
A principle to be valued must be capable of wider application in the hands of a Government employee’. In the case of a non-
than the mischief which gave it existence. These are designed Government employee’, it is exempt in some cases Pension under
to approach immortality as nearly as human institutions can National Pension Scheme (NPS)At the time of receipt of pension it is
approach it’. Mischief Rule is applicable where language is chargeable to tax. Annuity from employer Taxable as salary.
Annual accretion to the credit balance in recognized provident
capable of more than one meaning. It is the duty of the Court
fund 1 Excess of employer’s contribution over 12% of salary is
to make such construction of a statue which shall suppress taxable. 2. Excess of interest over notified interest is taxable
the mischief and advance the remedy. (notified rate of interest is 9.5 %). Retrenchment compensation
Exempt from tax to the extent of least of the following:
a. Amount calculated” under section 25F(b) of the industrial
Disputes Act; or
Himachal Pradesh Records of Rights
Himachal Pradesh Records of Rights is an extract from the
land records registers held by the Revenue Department of
State Government. ROR contains all information regarding
the land property and history of holders of land. This
revenue document (ROR/Jamabandi) is a crucial indicator
of the legal status of a property. The Himachal Pradesh
(ROR) register is maintained in the Revenue Departments
for every village separately. Himachal Pradesh
Government issues certified copies of entries in the record
of rights to residents of Himachal Pradesh. In this article,
we look at the procedure to obtain a certified copy of
Himachal Pradesh Records of Rights or extract
of Jamabandi in detail.
Importance of Himachal Pradesh Records of Rights
Importance of obtaining a certified copy of Himachal
Pradesh of rights is described here: HP Records of Rights
(Jamabandi) endorses the real owner of a land - This land
record ROR (Jamabandi) is helpful to detect false claim on
the lands Usage of a certified copy of the extract of ROR
records of rights avoids land grabbing - HP record of rights
(ROR) can be used in court litigations related to property -
ROR will help holder to avoid any legal hassles in the
future.
Process for Himachal Pradesh Records of Rights through
Lok Mitra Kendra : Procedure to get an extract of ROR-B
through Lok Mitra Kendra is explained in detail below.
Approach Lok Mitra Kendra
Step 1: Applicant needs to approach the Lok Mitra Kendra
in your area to obtain an extract ROR-1B.
Submit an Application
Step 2: The applicant needs to apply in the prescribed
format for obtaining a certified copy of Himachal Pradesh
records of rights at the Lok Mitra Kendra. The application
form for getting the extract of Himachal Pradesh Records
of Rights (ROR-1B).Provide the following information in
the application form: Property details such as District,
Mandal, Village and Khata Number, Ration card and
Adhaar card number Informant details such as relation,
email ID and mobile number, Information related to
property boundaries.
Step 3: Furnish all necessary documents (mentioned
above) to the Lok Mitra Kendra, service operator. The
request for an extract of ROR will be forwarded online to
the concerned authority, i.e., Tahasildhar.
Application Processing
Step 4: The concerned authority will process the Himachal
Pradesh ROR extract request online.
Step 5: After downloading all proceeding documents,
Tahasildhar will take action for issuing a certified copy of
the Records of Rights.
Get Himachal Pradesh ROR : If the request for an extract
of Himachal Pradesh records of rights, approved by
Tahasildhar, Himachal Pradesh ROR will be dispatched
through courier from Lok Mitra Kendra to applicant’s
address if the delivery type is speed post local or non-
local. If the delivery type selected as manual mode, then
the applicant has to collect the extract of ROR from Lok
Mitra Kendra where you have applied for a certified copy
of Himachal Pradesh Records of Rights (ROR).
Revenue Entries :
Entries in a record-of-rights or in a periodical record,
except entries made in periodical records with respect to
undisputed acquisition of interest under section 43, shall
not be varied in subsequent records otherwise than by:
(a) making entries in accordance with facts proved or
admitted to have occurred;
(b) making such entries as are agreed to by all the parties
interested therein or are supported by a decree or order
binding on those parties; and (c) making new maps
where it is necessary to make them.. They can be altered
provided, either:- 1. When the facts are proved: There
may be any situation in which deserving or rightful
person is deprived from his legal right. Name of
aggrieved person is recorded in record-of-rights provided
he proves his right or interest. Such person is required to
appear before the authority and provide the proof of his
interest. In an instance sons of deceased may deprive
their sister against her right of inheritance. Later on they
may admit their wrongdoing or she may prove her
interest in legacy or bequest. Revenue Officer shall alter
the record after getting sufficient satisfaction. 2. When
the Court has issued a decree: Revenue authorities are
required by law to give effect to the decree and change
entries in accordance with the rights determined. In
contrary situation he can be compelled to do so because
the decree is considered conclusive proof of the title in
property. 3. When new maps are prepared: New maps
are prepared or revised at the time of resettlement. And
this settlement takes normally twenty-five years.
Revenue Officer can change the old entry with new one.
There may be certain matters, which are changed in due
course. Every village has Common Land, which is
considered the property of all landowners and not an
individual. It can be divided among them either equally or
proportionately. Methodology once recorded in record-
of-rights can be changed after twenty-five years. Case
law: 2000 CLC 814 Person who claims a title through a
mutation, burden of proving the transaction embodied in
that mutation is upon such person.
JAMABANDI REGISTER: It is prepared quinquennially in
duplicate for every estate on the basis of entries existing
and changes recorded on the Mutation Register, Khasra
Girdawari Register and Fard Badr (Errata) over a period of
5 years. It is the document to which a presumption of
truth is attached. The form of the Jamabandi has 12
columns and gives Khewat / Khatoni number-wise
information of total holding of each owner of land in a
particular revenue estate. It also indicates cultivation,
rent and revenue and other cesses payable on land and
constitutes an up to date record of various rights in land.
The new Jamabandi is prepared by the Patwari and is
attested by the Revenue Office in a public meeting of
local villages. Two copies of the revised Jamabandi are
prepared, one copy is filed to the District Record Room
and other copy remains with the Patwari. All changes in
title/interests of the revenue estate coming into the
notice of Revenue Authorities are duly reflected in the
Jamabandi according to set procedures.
Q-2: (B) Punctuations: Punctuation lays down the What is Income Tax
difference of importance of two phrases. When Income Tax refers to the tax you pay directly to the
Punctuation has been used, it means that emphasis is on a government depending on your income or profit (for
particular phrase and the second one is ordinary. But, here companies/local authorities). The money collected by this
it is important that the Punctuations only cannot be used direct tax route is used by the Government for
to control the complete language or expression of any infrastructural developments and, also, to pay the
statute Ashwini Kumar V/s Arvind (A I.R. 1952 S.C. 369)- employees of central and state government bodies.
Supreme Court held that Punctuation is used as a helping Taxes levied by the Government are of two types- Direct
fact only during interpretation, it cannot be regarded as a taxes and Indirect taxes. Indirect taxes are those that are
controlling element of the plain meaning of the Act. levied on services and goods. Direct taxes, on the other
Hence, Punctuation are used while protecting the basic hand, are levied on profits and income. For example,
meaning of the statute Dadaji V/s Sukhdev (A.I.R. 1980 service tax is what you pay in a restaurant and is an
S.C. 150)-It was held that if the language of any statute indirect tax, whereas Income Tax that is deducted from
leads to clear, unambiguous and definite meaning, then it your salary every month in the form of TDS, is an example
cannot be controlled by the use of Punctuations A same of direct tax.
view has been Stated in Geetika Panwar VIs N.C.T Delhi Income Tax Act of India, passed in 1961, governs the
(A.I.R. 2003 Delhi 317). It is said that the common provisions for income tax as well as the various deductions
meaning of any law, statute or Act cannot be controlled by that are applicable to it. However, since 1961, the law has
the use of Punctuations Crawford also says that here the been amended several times to take care of inflation and
language of statute is ambiguous and abused and is not other socio-economic situations.
providing a definite meaning, then only Punctuation could Assessment Year: Assessment Year is the year in which
be used (Crawford: Statutory Construction). Q-2: (B) one file income tax returns of the year prior to it (i.e.
Schedules: Several times Schedules are added at the end Financial Year). It is the year in which the income that
of the Act. These Schedules are part of the Act. It main one has earned in the financial year that is just ended is
purpose is- (a) Implement the Act Effectively (b) Clarify the evaluated. E.g. For Financial Year 2014-15
Intention: (c) Mention the method of use of powers; etc. It the Assessment Year will be 2015-16. Assessment Year,
is the reason that Schedule should be considered while Tax filing Assessment Year, Tax Payment Assessment year
interpretation the Statutes But, it is important that if there Explained the meaning of assessment year. assessment
is conflict between the matters of provisions and year, financial year, taxes, return filing, income tax,
schedules, then provisions of the Act should be preferred. income tax return, fy start date, fy end date, assessment
(Ms. Affali Pharmaceuticals Ltd. Vis State of Maharashtra, order, period of assessment year. This page defines
A.I.R 1989 S.C. 2227) assessment year and its period with examples. Also, which
Q-2: (A) Golden Rule of Interpretation - The Golden rule, details are processed or assessed during an assessment
or British rule, is a form of statutory interpretation that year.
allows a judge to depart from a word’s normal meaning in
order to avoid an absurd result. It is a compromise
between the plain meaning (or literal) rule and the
mischief rule. Like the plain meaning rule, it gives the
words of a statute their plain, ordinary meaning. However,
when this may lead to an irrational result that is unlikely to
be the legislature’s intention, the judge can depart from
this meaning. In the case of homographs, where a word
can have more than one meaning, the judge can choose
the preferred meaning; if the word only has one meaning,
but applying this would lead to a bad decision, the judge
can apply a completely different meaning. This rule may
be used in two ways. It is applied most frequently in a
narrow sense where there is some ambiguity or
absurdity in the words themselves. The second use of the
golden rule is in a wider sense, to avoid a result that is
obnoxious to principles of public policy, even where words
have only one meaning. Example: The facts of a case are; a
son murdered his mother and committed suicide. The
courts were required to rule on who then inherited the
estate, the mother’s family, or the son’s descendants.
There was never a question of the son profiting from his
crime, but as the outcome would have been binding on
lower courts in the future, the court found in favour of the
mother’s family.
Revenue Entries :
Entries in a record-of-rights or in a periodical record,
except entries made in periodical records with respect to
undisputed acquisition of interest under section 43, shall
not be varied in subsequent records otherwise than by: (a)
making entries in accordance with facts proved or
admitted to have occurred;
(b) making such entries as are agreed to by all the parties
interested therein or are supported by a decree or order
binding on those parties; and (c) making new maps where
it is necessary to make them.. They can be altered
provided, either:- 1. When the facts are proved: There
may be any situation in which deserving or rightful person
is deprived from his legal right. Name of aggrieved person
is recorded in record-of-rights provided he proves his right
or interest. Such person is required to appear before the
authority and provide the proof of his interest. In an
instance sons of deceased may deprive their sister against
her right of inheritance. Later on they may admit their
wrongdoing or she may prove her interest in legacy or
bequest. Revenue Officer shall alter the record after
getting sufficient satisfaction. 2. When the Court has
issued a decree: Revenue authorities are required by law
to give effect to the decree and change entries in
accordance with the rights determined. In contrary
situation he can be compelled to do so because the decree
is considered conclusive proof of the title in property. 3.
When new maps are prepared: New maps are prepared
or revised at the time of resettlement. And this settlement
takes normally twenty-five years. Revenue Officer can
change the old entry with new one. There may be certain
matters, which are changed in due course. Every village
has Common Land, which is considered the property of all
landowners and not an individual. It can be divided among
them either equally or proportionately. Methodology once
recorded in record-of-rights can be changed after twenty-
five years. Case law: 2000 CLC 814 Person who claims a
title through a mutation, burden of proving the transaction
embodied in that mutation is upon such person.
JAMABANDI REGISTER: It is prepared quinquennially in
duplicate for every estate on the basis of entries existing
and changes recorded on the Mutation Register, Khasra
Girdawari Register and Fard Badr (Errata) over a period of
5 years. It is the document to which a presumption of
truth is attached. The form of the Jamabandi has 12
columns and gives Khewat / Khatoni number-wise
information of total holding of each owner of land in a
particular revenue estate. It also indicates cultivation, rent
and revenue and other cesses payable on land and
constitutes an up to date record of various rights in land.
The new Jamabandi is prepared by the Patwari and is
attested by the Revenue Office in a public meeting of local
villages. Two copies of the revised Jamabandi are
prepared, one copy is filed to the District Record Room
and other copy remains with the Patwari. All changes in
title/interests of the revenue estate coming into the notice
of Revenue Authorities are duly reflected in the Jamabandi
according to set procedures.
The Mischief Rule: The mischief rule is a rule of statutory
interpretation that attempts to determine the legislator’s
intention. Originating from a 16th-century case (Haydon’s
case) in the United Kingdom, its main aim is to determine
the “mischief and defect” that the statute in question has
set out to remedy, and what ruling would effectively
implement this remedy. When the material words are
capable of bearing two or more constructions the most
firmly established rule or construction of such words “of all
statutes, in general, be they penal or beneficial, restrictive
or enlarging of the common law is the rule of Heydon’s case.
The rules laid down, in this case, are also known as
Purposive Construction or Mischief Rule. The mischief rule is
a certain rule that judges can apply in statutory
interpretation in order to discover Parliament’s intention.
Heydon’s case: This was set out in Heydon’s Case where it
was stated that there were four points to be taken into
consideration when interpreting a statute: 1. What was the
common law before the making of the act? 2. What was the
“mischief and defect” for which the common law did not
provide? 3. What remedy the Parliament hath resolved and
appointed to cure the disease of the commonwealth? 4.
What is the true reason for the remedy? The office of all
the judges is always to make such construction as shall
suppress the mischief, and advance the remedy, and to
suppress subtle inventions and evasions for continuance of
the mischief, and pro privato commodo, and to add force
and life to the cure and remedy, according to the true intent
of the makers of the Act, pro bono publico. The application
of this rule gives the judge more discretion than the literal
and the golden rule as it allows him to effectively decide on
Parliament’s intent. It can be argued that this undermines
Parliament’s supremacy and is undemocratic as it takes
lawmaking decisions away from the legislature.
Use of this Rule : This rule of construction is of narrower
application than the golden rule or the plain meaning rule,
in that it can only be used to interpret a statute and, strictly
speaking, only when the statute was passed to remedy a
defect in the common law. Legislative intent is determined
by examining secondary sources, such as committee
reports, treatises, law review articles and corresponding
statutes. This rule has often been used to resolve
ambiguities in cases in which the literal rule cannot be
applied. The Supreme Court in Bengal Immunity Co. v. State
of Bihar, applied the mischief rule in construction of Article
286 of the Constitution of India. After referring to the state
of law prevailing in the province prior to the constitution as
also to the chaos and confusion that was brought about in
inter-state trade and commerce by indiscriminate exercise
of taxing powers by the different Provincial Legislatures
founded on the theory of territorial nexus, Chief Justice S.R.
Das, stated “It was to cure this mischief of multiple taxation
and to preserve the free flow of interstate trade or
commerce in the Union of India regarded as one economic
unit without any provincial barrier that the constitution
maker adopted Article 286 in the constitution”. A principle
to be valued must be capable of wider application than the
mischief which gave it existence. These are designed to
approach immortality as nearly as human institutions can
approach it’. Mischief Rule is applicable where language is
capable of more than one meaning. It is the duty of the
Court to make such construction of a statue which shall
suppress the mischief and advance the remedy.