| Case ID |
0b9e6fa2-98b0-4657-8f23-d5a7fd99b6e6 |
| Body |
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| Case Number |
Civil Appeal No. 705 of 1977 |
| Decision Date |
Nov 30, 1994 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the validity of the reassessment proceedings initiated under section 147(a) of the Income Tax Act, 1961. The Court affirmed the decision of the High Court, confirming that the reassessment notice was valid. Additionally, the Court ruled that the question regarding the justification of the order of remand made by the Tribunal was not a question of law. The appeal was dismissed, and no costs were awarded. The case underscores the importance of proper assessment procedures and the validity of reassessment notices in tax matters. |
| Summary |
The Supreme Court of India case concerning Assam Forest Products (P.) Ltd vs. Commissioner of Income Tax revolves around the reassessment of cash credits in the company's financial records. The Income-tax Officer issued a reassessment notice under section 147(a) after discovering that a purported loan from SJC Ltd was actually a name-lender scheme. The case highlights critical aspects of tax law, particularly the obligations of the tax authority to ensure valid assessments and the rights of taxpayers during reassessment processes. The Court's decision emphasizes adherence to proper procedures in tax assessments, the significance of documentation, and the implications of statements made by third parties in such matters. This ruling is essential for understanding the legal frameworks governing income tax assessments and the standards required for valid reassessments. It serves as a precedent for future cases involving similar issues, making it a landmark decision in tax law. |
| Court |
Supreme Court of India
|
| Entities Involved |
Assam Forest Products (P.) Ltd,
SJC Ltd,
BN
|
| Judges |
B.P. Jeevan Reddy,
S.B. Majmudar
|
| Lawyers |
P.H. Parekh,
Suneeta Sharma,
Prerna Kohli,
J. Ramamoorthy,
Ranbir Chandra,
Ms. A. Subhashini,
S.N. Terdol
|
| Petitioners |
Assam Forest Products (P.) Ltd
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1995 SLD 89,
1995 PTD 1188,
(1995) 211 ITR 447
|
| Other Citations |
Phool Chand Bajrang Lal v. ITO (1993) 203 ITR 456 (SC),
Assam Forest Products (P.) Ltd. v. CIT (1977) 110 ITR 558
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
142(3),
147(a)
|