Case ID |
0bb1c3ac-4c93-4498-8d01-94471ecd81cc |
Body |
View case body. Login to View |
Case Number |
Income tax Reference No. 26 of 1977 |
Decision Date |
Jun 06, 1978 |
Hearing Date |
|
Decision |
The Kerala High Court held that the reassessment made by the Income Tax Officer was valid and proper, as it was based on information in his possession rather than a mere change of opinion. The court ruled that the claim for deduction related to grants made to the Labour and Industrial Bureau was not an allowable deduction under section 37 of the Income Tax Act, 1961. The court emphasized that the Income Tax Officer had a reasonable belief that income chargeable to tax had escaped assessment for the year 1967-68, which justified the reopening of the assessment. |
Summary |
This case revolves around the Income Tax Act, 1961, where the Kerala High Court examined the validity of a reassessment conducted by the Income Tax Officer concerning allowable deductions claimed by a government-owned company, KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. The case highlights the importance of distinguishing between valid information and mere changes of opinion in tax assessments. The court upheld the reassessment based on the officer's possession of information indicating that the claimed deductions for grants to the Labour and Industrial Bureau were not justifiable under the law. This decision underscores the legal principles governing income tax reassessments and the criteria necessary for determining the validity of such actions. Keywords include 'Income Tax Act', 'allowable deductions', 'reassessment validity', and 'tax law principles'. |
Court |
Kerala High Court
|
Entities Involved |
COMMISSIONER OF Income Tax,
KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD
|
Judges |
V. P. GOPALAN NAMBIYAR, C. J.,
M. P. MENON, J
|
Lawyers |
P. K. R. Menon for the Commissioner,
K. P. Radhakrishna Menon for the Assessee
|
Petitioners |
Not available
|
Respondents |
KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD
|
Citations |
1982 SLD 7,
1982 PTD 37,
(1982) 45 TAX 25
|
Other Citations |
Alleppy Co. Ltd. v. C.I.T (1979) 116 I.T.R 169 (Ker),
Bansilal Abirchand, Firm (R.B.) v. C.I.T (1968) 70 I.T.R 74 (S.C),
Catturam Horilram Ltd. v. C.I.T (1955) 27 I.T.R 709 (S.C),
C.I.T. v. Dinesh Chandra H. Shah (1971) 82 I.T.R 367 (S.C),
C.I.T. v. Gurbux Ral Harbux Rai (1972) 83 I.T.R 86 (S.C),
C.L.T v. Raman (A) & Co. (1968) 67 I.T.R 11 (S.C),
C.I.T. v. Rathinasabapathy Mudallar (1964) 51 I.T.R 204 (Mad),
C.I.T. v. Simon Carves Ltd. (1976) 105 I.T.R 212 (S.C),
C.W.T. v. Imperial Tobacco Co. of India Ltd. (1966) 61 I.T.R 461 (S.C),
C.E.D. (Assistant) v. Mir Osman Ali Khan Bahadur (1969) 72 I.T.R 376 (S.C),
Hyderabad Allwyn Metal Works Ltd. v. I.T.O. (1962) 46 I.T.R 988 (A.P),
Jawahar Lal Mani Ram v. C.L.T. (1963) 48 I.T.R 837 (All),
Kalyanji & Co. v. C.I.T. (1976) 102 I.T.R 287 (S.C),
Malhotra (R.K.) L.T.O. v. Kasturbhai (1977) 109 I.T.R 537 (S.C),
Mahasukhram Madarlal v. C.I.T. (1955) 28 I.T.R 299 (Pat),
Ramkrishna Ramnath v. I.T.O. (1970) 77 I.T.R 995 (Bom),
Salem Provident Fund Society Ltd. v. C.L.T. (1961) 42 I.T.R 547 (Mad),
United Mercantile Co. Ltd v. C.I.T (1967) 64 I.T.R 218 (Ker)
|
Laws Involved |
Income Tax Act, 1961
|
Sections |
37,
147(6)
|