| Case ID |
0c217c7f-cb36-451f-8164-089486c8c4b9 |
| Body |
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| Case Number |
I.T. REFERENCE No. 92 OF 1963 |
| Decision Date |
Mar 12, 1970 |
| Hearing Date |
|
| Decision |
The Bombay High Court upheld the powers of the Appellate Assistant Commissioner to interfere with cases where the Income Tax Officer has failed to exercise his discretion. The case involved the assessment of depreciation on a ship purchased by the assessee for Rs. 12,00,000. The court confirmed that the Appellate Assistant Commissioner could set aside the Income Tax Officer's assessment and direct a fresh assessment, emphasizing that the mere non-consideration of a method of calculation does not preclude the Appellate Assistant Commissioner from exercising his powers. The assessment was restored to the Appellate Assistant Commissioner’s file for proper evaluation of the depreciation claim, thus benefiting the revenue. |
| Summary |
The case of Commissioner of Income Tax v. Scindia Steam Navigation Co. Ltd. revolves around the powers of the Appellate Assistant Commissioner (AAC) in the context of the Income-tax Act, 1961. The Bombay High Court ruled on the AAC's authority to intervene in assessments made by the Income Tax Officer (ITO) when the ITO has not exercised his discretion properly. It was established that the AAC could set aside an assessment and direct the ITO to reassess based on the correct application of the law, specifically regarding depreciation claims for a ship purchased at a cost of Rs. 12,00,000. The court's decision reinforced the importance of adherence to tax laws and the procedural rights of taxpayers, ultimately supporting the revenue's position. This case is significant for tax practitioners and companies involved in shipping, emphasizing the need for accurate assessments and the potential for appeals to correct administrative oversights in tax matters. |
| Court |
Bombay High Court
|
| Entities Involved |
Scindia Steam Navigation Co. Ltd.
|
| Judges |
MODY,
DESAI
|
| Lawyers |
R.J. Joshi,
G.N. Joshi,
S.R. Dastur,
B.A. Palkhivala
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Scindia Steam Navigation Co. Ltd.
|
| Citations |
1971 SLD 509,
(1971) 80 ITR 589
|
| Other Citations |
CIT v. Hardutroy Motilal Chamaria [1967] 66 I.T.R. 443,
CIT v. Jagdish Mills Ltd. [1964] 51 I.T.R 226,
CIT v. Mcmillan & Co. [1958] 33 I.T.R 182,
Narrondas Manor Dass v. CIT [1957] 31 I.T.R 909,
Prabhudas Ramji v. CIT [1966] 62 I.T.R 621
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
251,
43,
31(3),
10(5)
|