Application of ‘Doctrine of Relation Back’ in Income Tax

Shubham Gupta & Mallika Agarwal – [2021] 129 taxmann.com 76 (Article)

The Black Law Dictionary defines “relation back” as “the doctrine that an act done at a later time is, under certain circumstances, treated as though it occurred at an earlier time….”. The doctrine not only provides a second chance but also provide a route to escape from the statutes of limitation to meet the ends of justice. The Doctrine is frequently read into various legislations. Order VI Rule 17 of the Code of Civil Procedure, 1908 provides for amendment in pleadings, at any stage of the pleadings, before the commencement of the trial, which may be necessary for determining the real questions in controversy. The Supreme Court in the case of Sampath Kumar v. Ayyakannu [Appeal (Civil) 5839 of 2002, dated 13-9-2002], has held that the amendment so incorporated relates back to the date of the suit. The court, however, also noted that the doctrine of relation back in the context of amendment of the proceedings, is not universal, and in appropriate cases, the court may direct that the amendment shall not date back to the date of suit.

Similarly, the traces of this doctrine can also be found in the Registration Act, 1908, wherein section 47 of the said Act provides that a registered document shall operate from the time from which it would have commenced to operate if no registration thereof had been required or made, and not from the time of registration. Section 196 of the Indian Contact Act, 1872 also provides that if a person chooses to ratify an act, the ratification shall have the same effect as if the acts have been performed by his authority in the first place.

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