| Case ID |
09966a0d-80b1-461b-ac08-5d884efdda7a |
| Body |
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| Case Number |
CIVIL APPEAL No. 5931 OF 2007 |
| Decision Date |
Dec 13, 2007 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the income received by Divya Investment (P.) Ltd. from hiring charges and maintenance charges should be classified as business income rather than income from house property. The High Court's decision to treat all assessment years as connected was deemed incorrect as it did not follow the unit of assessment prescribed by the Income Tax Act, which is year-based. The Court emphasized that parties should have filed appeals under section 260A of the Income Tax Act instead of writ petitions, as the latter were not maintainable. The ruling underscores the importance of adhering to the correct legal procedures when challenging assessments. |
| Summary |
This case involves the Supreme Court of India ruling on the classification of income received by Divya Investment (P.) Ltd. as business income under the Income Tax Act, 1961. The case arose from an assessment dispute regarding the nature of income received from hiring and maintenance charges. The Assessing Officer initially classified the income as house property income, which was upheld by the Commissioner (Appeals). However, the Tribunal overturned this decision, stating it should be classified as business income. The High Court later ruled in favor of the respondent, treating all assessment years as connected. The Supreme Court, however, found this approach flawed, reiterating the necessity of annual assessments and the requirement for appeals to be filed under specific legal provisions. This case highlights crucial aspects of tax law and the proper legal channels for addressing disputes. Keywords: Income Tax Act, business income, Supreme Court, tax law, assessment disputes. |
| Court |
Supreme Court of India
|
| Entities Involved |
Divya Investment (P.) Ltd.,
Deputy Commissioner of Income Tax, Kanpur
|
| Judges |
S.H. Kapadia,
B. Sudershan Reddy
|
| Lawyers |
Not available
|
| Petitioners |
Deputy Commissioner of Income Tax, Kanpur
|
| Respondents |
Divya Investment (P.) Ltd.
|
| Citations |
2009 SLD 1109,
(2009) 313 ITR 363,
(2008) 171 TAXMAN 92
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
28(i)
|