| Case ID |
03035db4-7e97-450d-8d0d-1bfb4312f86c |
| Body |
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| Case Number |
CIVIL APPEALS Nos. 1225 AND 1226 OF 1967 |
| Decision Date |
Jan 21, 1971 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the proceedings initiated by the Excess Profits Tax Officer under section 15 were void due to lack of definite information, thereby rendering any order made under section 10A invalid. It was determined that section 10A does not allow for independent proceedings but rather is meant to confer powers within the context of existing assessments. The Tribunal was directed to submit a supplementary statement of the case regarding the status of any pending proceedings under section 15. The Court emphasized the necessity of clarifying whether there was a legitimate basis for the reopening of the assessment under the Excess Profits Tax Act. |
| Summary |
The case revolves around the interpretation of sections 15 and 10A of the Excess Profits Tax Act, 1940, particularly concerning the validity of the Excess Profits Tax Officer's actions in reassessing income. The Supreme Court of India addressed whether the officer had sufficient grounds to reopen assessments based on new information. The High Court had previously ruled that the officer's proceedings were void due to insufficient information, leading to the Supreme Court's involvement. The case highlights critical aspects of tax law, including the relationship between reassessment and the need for definite information. The implications of this case affect how tax officers conduct assessments and the legal standards required for reopening cases. This ruling underscores the importance of clear evidence in tax proceedings and the limitations placed on tax authorities under the law, ensuring that taxpayers are not subject to arbitrary reassessment without due cause. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
J.C. SHAH, C.J.,
K.S. HEGDE,
A.N. GROVER, JJ
|
| Lawyers |
S.T. Desai,
B.B. Ahuja,
R.N. Sachthey,
B.D. Sharma,
M.C. Chagla,
A.N. Goyal
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Gurbux Rai Harbux Rai
|
| Citations |
1971 SLD 521,
(1971) 81 ITR 476
|
| Other Citations |
Gurbux Rai Harbux Rai v. CIT (C.A. Nos. 741-743 of 1966 decided on August 2, 1968),
Gurbax Rai Harbux Rai v. CIT [1970] 75 ITR 350 (All.)
|
| Laws Involved |
Excess Profits Tax Act, 1940
|
| Sections |
15,
10A
|