| Case ID |
0320ff36-7768-4a84-9ead-513ffd518311 |
| Body |
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| Case Number |
IT CASE NO. 8 OF 1977 |
| Decision Date |
Aug 25, 1977 |
| Hearing Date |
|
| Decision |
The Punjab and Haryana High Court ruled in favor of the revenue, asserting that the income-tax authorities were obliged to follow the precedent set by the High Court in Brij Bushan Lal v. CIT, which clarified the inclusion of government-supplied materials in the income assessment. The Tribunal's refusal to refer the question of law regarding the rectification of the original assessment was deemed unjustified, particularly as the decision in Brij Bushan Lal's case was no longer debatable. The court directed the Tribunal to state the case and refer the relevant question of law for further judicial scrutiny. |
| Summary |
In the landmark case of Commissioner of Income Tax v. Mohan Lal Kansal, the Punjab and Haryana High Court addressed critical issues surrounding the rectification of income assessments under the Income-tax Act, 1961. The case revolved around the inclusion of materials supplied by the government in the income calculation for the assessment year 1970-71. Following the precedent set in Brij Bushan Lal v. CIT, the court held that the Income-tax Officer was bound to rectify the assessment to include the value of these materials. The Tribunal's decision to dismiss the revenue's request for a reference was overturned, emphasizing the importance of legal consistency and the obligation of tax authorities to adhere to established judicial rulings. This case underscores the interplay between statutory provisions and judicial interpretations in tax law, particularly in rectification matters. Legal professionals and tax practitioners should take note of this ruling as it reinforces the principle of following binding precedents in tax assessments. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
Ajit Singh Bains,
S.P. Goyal
|
| Lawyers |
D.N. Awasthy,
D.K. Gupta
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Mohan Lal Kansal
|
| Citations |
1978 SLD 270 = (1978) 114 ITR 583
|
| Other Citations |
T.S. Balram, ITO v. Volkart Brothers [1971] 82 ITR 50 (SC),
Brij Bushan Lal v. CIT [1971] 81 ITR 497 (Punj),
CIT v. Moolchand Naraindas [1977] 108 ITR 859
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
154,
256
|