| Case ID |
0a6eda31-0c46-4b38-a084-e5a3240b7574 |
| Body |
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| Case Number |
CIVIL MISC. No. 99 OF 1938 |
| Decision Date |
May 05, 1938 |
| Hearing Date |
|
| Decision |
The case centered around the interpretation of the term 'income' as used in Section 28 of the Income-tax Act. The court held that the term 'income' is used in a technical sense within the Act and is not limited to money received but encompasses the total assessable figure after accounting for legitimate deductions and exemptions. The assessee's argument that 'income' referred solely to money received was dismissed. The court found that the assessee had deliberately claimed a false deduction, which fell within the ambit of the penal provisions of Section 28. Consequently, the court dismissed the petition and upheld the penalty imposed by the income-tax authorities. |
| Summary |
This landmark case illustrates the judicial interpretation of 'income' under the Income-tax Act, particularly in relation to penalties for false returns. The Lahore High Court determined that the term 'income' encompasses a broader definition beyond mere cash receipts, including deductions and exemptions that affect the assessable income figure. This case emphasizes the importance of accurate financial reporting and the legal ramifications of providing false information to tax authorities. By holding the assessee accountable for false deductions, the court reinforced the integrity of the tax system. This decision is crucial for legal practitioners, tax consultants, and individuals navigating tax compliance, especially regarding income reporting and the consequences of misrepresentation in tax returns. |
| Court |
Lahore High Court
|
| Entities Involved |
Not available
|
| Judges |
Sir James Addison, Actg., C.J.,
Din Mohammad, J.
|
| Lawyers |
D.N. Aggarwal for the Petitioner,
S.M. Sikri for the Respondent,
A.R. Aggarwal for the Respondent
|
| Petitioners |
Nagin Chand Shiv Sahai
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1938 SLD 17,
(1938) 6 ITR 534
|
| Other Citations |
Commissioner of Income-tax v. Sir S.M. Chitnavis (59 I.A. 295-97)
|
| Laws Involved |
Income-tax Act, 1922,
Income-tax Act, 1961
|
| Sections |
28,
271
|