| Case ID |
08e5a1dc-024c-4d50-a637-b062096907f5 |
| Body |
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| Case Number |
CIVIL MISC. WRIT PETITION No. 828 OF 1974 |
| Decision Date |
Dec 16, 1976 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the petitioner, Santosh Kumar Agarwal, stating that the provisional assessments made by the Income Tax Officer (ITO) were void ab initio as they were conducted before the petitioner had filed his returns. The court held that such invalid assessments could not be rectified under section 35 of the Income Tax Act, 1922. The demand notices and recovery certificates issued based on these assessments were also declared void. The court emphasized the requirement for valid procedures in tax recovery, reinforcing the principle that no tax shall be levied or collected without authority of law. |
| Summary |
In the case of Santosh Kumar Agarwal vs. Tax Recovery Officer, the Allahabad High Court addressed significant issues regarding the legality of provisional assessments under the Income-tax Act, 1961. The petitioner challenged the actions of the Income Tax Officer (ITO) who had issued provisional assessments for the assessment years 1954-55 and 1955-56 before the petitioner submitted his tax returns. The court found that these assessments were void ab initio, meaning they were invalid from the outset. This decision is critical as it underscores the importance of following lawful procedures in tax assessments and recovery. The court's ruling also highlights the necessity for tax authorities to issue fresh demand notices and recovery certificates following any adjustments or rectifications, as established in prior case law. This case serves as a precedent for similar disputes involving tax recovery processes and reinforces taxpayers' rights against unlawful tax collection practices. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
D.M. Chandrashekhar,
R.M. Sahai
|
| Lawyers |
Shanti Bhushan,
R.K. Gulati,
Deokinandan,
Ashok Gupta
|
| Petitioners |
Santosh Kumar Agarwal
|
| Respondents |
Tax Recovery Officer
|
| Citations |
1978 SLD 565,
(1978) 112 ITR 178
|
| Other Citations |
A.M. Allison v. B.L. Sen AIR 1957 SC 227,
Chhagan Lal Rathi v. ITO [1965] 58 ITR 777 (All.),
ITO v. Seghu Buchiah Setty [1964] 52 ITR 538 (SC),
Rameshwar Dass Brahma Prakash v. STO [1972] UPTC 466 (All.),
Sangram Singh v. Election Tribunal, Kotah AIR 1955 SC 425
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
141,
23B,
3
|