| Case ID |
03ea41dc-2294-44c2-a985-460beae7e9be |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 970 AND 971 OF 1964 |
| Decision Date |
Dec 10, 1965 |
| Hearing Date |
|
| Decision |
The Supreme Court accepted the appeals and modified the High Court's order by deleting the portion that stated the profits should be apportioned as 75% for manufacturing and 25% for selling. The Court clarified that the question referred to the High Court did not involve any discussion on the amount of profits from the amounts received by the assessee's bankers. The Appellate Tribunal has the authority to apportion profits if it had not been previously determined. The decision ultimately favored the assessee, emphasizing that the assignment of profit apportionment was beyond the scope of the High Court's order. |
| Summary |
The case 'Commissioner of Income Tax v. Mewar Textile Mills Ltd' revolves around the interpretation of profits derived from sales and their tax implications under the Income-tax Act, 1961. The Supreme Court evaluated the High Court's ruling which mandated that profits should be taxed on an accrual basis rather than a mere receipt basis and that profits should be divided between manufacturing and selling processes. The Supreme Court found that the High Court exceeded its jurisdiction by determining profit apportionment, which should be left to the Appellate Tribunal. This case is significant in understanding tax liabilities and the roles of different courts in adjudicating financial disputes. Keywords include 'Income-tax Act', 'Supreme Court', 'taxable profits', 'accrual basis', 'manufacturing process', 'selling process', and 'Appellate Tribunal'. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K. Subba Rao,
J.C. Shah,
S.M. Sikri
|
| Lawyers |
A.V. Viswanatha Sastri,
S.K. Aiyar,
B.R. G.K. Achar,
R.N. Sachthey,
S.T. Desai,
Z.S. Meeratwal,
Naunit Lal
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Mewar Textile Mills Ltd
|
| Citations |
1966 SLD 184,
(1966) 60 ITR 423
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
256
|