| Case ID |
03837914-276f-4807-939c-66726ace4944 |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 01, 1987 |
| Hearing Date |
Jan 01, 1987 |
| Decision |
The Tribunal upheld the order of the Commissioner (Appeals) and rejected the assessee's application for reference under section 256(1). It was determined that the reopening of the assessment was valid and that the reasons for this were duly recorded, despite the absence of documentation at the time of the Tribunal's hearing. Furthermore, the Tribunal found that the income derived from the additional entries in the account books did not constitute a new source of income but rather represented further transactions of the existing business. As a result, the application under section 256(2) was dismissed, confirming the findings of fact established by the lower authorities. |
| Summary |
In the case of Bishamber Nath Ram Sarup v. Commissioner of Income Tax, the Delhi High Court addressed key issues regarding the reopening of an assessment under the Income-tax Act, 1961. The court examined the validity of the reassessment proceedings initiated by the Income Tax Officer (ITO) for the assessment year 1962-63, which stemmed from the discovery of uchanti account books. The assessee contended that the ITO failed to record sufficient reasons for the reopening of the assessment, a claim that was dismissed by the Tribunal. The court ruled that the references made by the Commissioner (Appeals) were adequate and that the ITO had acted within his authority. Furthermore, the court clarified that the additional income attributed to the ghee business did not constitute a new source of income, as it was derived from existing business activities. This case highlights the importance of maintaining accurate records and the procedural requirements for income tax assessments, thus serving as a significant precedent in tax law. Key terms include Income-tax Act, reassessment, and concealed income. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
D.K. KAPUR,
MAHINDER NARAIN
|
| Lawyers |
D.K. Jain,
K.K. Wadhera,
D.C. Taneja
|
| Petitioners |
Bishamber Nath Ram Sarup
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1987 SLD 2711,
(1987) 163 ITR 87
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
256,
68,
147(a)
|