| Case ID |
081f972e-0d5d-47eb-81bd-d37b3fa30ab0 |
| Body |
View case body. Login to View |
| Case Number |
IT Appeal No. 67 (CTK) of 1977-78 |
| Decision Date |
|
| Hearing Date |
|
| Decision |
The Tribunal found that it had no power to allow the full claim of exemption to the assessee since the assessee did not file any appeal or cross-objection against the order of the Appellate Assistant Commissioner (AAC) that partially disallowed the claim. The AAC had allowed a portion of the claim, but the assessee was satisfied with that decision and did not pursue further appeals. The Tribunal, being a statutory body, can only exercise powers as outlined in the law, and since the assessee did not contest the AAC's decision, that finding became final. Therefore, the Tribunal's decision to deny the full deduction claimed by the assessee was upheld, confirming that relief cannot be granted without an appeal or cross-objection being filed. |
| Summary |
This case revolves around the interpretation of the powers of the Appellate Tribunal under the Income-tax Act, 1961, specifically Section 254. The Orissa Weavers Co-Operative Spinning Mills Ltd. claimed an exemption for expenses incurred in constructing a school building, which it argued were related to labor welfare. However, the income tax officer (ITO) disallowed the entire claim, and while the AAC partially allowed it, the assessee did not appeal the AAC's decision. The Tribunal dismissed the revenue's appeal, and the case was subsequently referred to the High Court. The court ruled that the Tribunal could not grant relief since the assessee had not contested the AAC's findings, leading to a finality in that decision. This case emphasizes the importance of procedural adherence in tax law and the limitations of the Tribunal's powers when no appeal or cross-objection is filed. It serves as a critical reminder for taxpayers to actively pursue their claims and appeals in tax matters. |
| Court |
Orissa High Court
|
| Entities Involved |
Commissioner of Income Tax,
Orissa Weavers Co-Operative Spinning Mills Ltd.
|
| Judges |
S.C. Mohapatra,
J.M. Mahapatra
|
| Lawyers |
A.K. Ray,
S.C. Ray
|
| Petitioners |
Orissa Weavers Co-Operative Spinning Mills Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1991 SLD 1454 = (1991) 187 ITR 646
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
254,
256(2)
|