| Case ID |
0f89f24f-8ab5-428f-9779-b72b37e20a4e |
| Body |
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| Case Number |
IT REFERENCE NO. 121 OF 1960 |
| Decision Date |
Jan 22, 1964 |
| Hearing Date |
Jan 21, 1964 |
| Decision |
The court held that the Appellate Assistant Commissioner was competent to examine the merits of the Income Tax Officer's refusal to register the firm under section 23(4) of the Income Tax Act, 1922. The ruling emphasized the discretionary nature of the Income Tax Officer's powers and the right of the assessee to appeal against the refusal of registration. The court reaffirmed that the refusal to renew registration was a penalty imposed on the assessee for specified defaults. It was concluded that the Appellate Assistant Commissioner should have reviewed the circumstances surrounding the Income Tax Officer's discretion in refusing registration, and ultimately decided in favor of the assessee. |
| Summary |
In the case of Prabhat Mills Stores Co. Ltd v. Commissioner of Income Tax, the Calcutta High Court addressed the complexities surrounding the refusal of registration under the Income Tax Act, 1922. This case is significant as it explores the discretionary powers of the Income Tax Officer and the appellate rights of the assessee. The court's decision hinged on the interpretation of sections 23(4), 251, and related provisions of the Income Tax Act. The ruling clarified that the Appellate Assistant Commissioner has the authority to examine the merits of the Income Tax Officer's refusal, even if the refusal was based on defaults related to section 22(2) and section 22(4). This case serves as a critical reference for understanding taxpayer rights, judicial discretion, and the procedural intricacies of tax law. It emphasizes the importance of due process in tax assessments and the necessity for judicial scrutiny in decisions affecting taxpayer registrations, making it a landmark case in tax jurisprudence. |
| Court |
Calcutta High Court
|
| Entities Involved |
Commissioner of Income Tax,
Prabhat Mills Stores Co. Ltd
|
| Judges |
S.P. Mitra,
K.C. Sen
|
| Lawyers |
A.C. Bhabra,
B.L. Jhunjhunwalla,
B.L. Pal,
B. Gupta
|
| Petitioners |
Prabhat Mills Stores Co. Ltd
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1966 SLD 191,
(1966) 59 ITR 197
|
| Other Citations |
Charles Osenton & Co. v. Johnston [1942] AC 130,
Cheater v. Cater [1918] 1 KB 247,
CIT v. Krishnamma & Co. [1955] 28 ITR 273 (AP),
Evans v. Bartlam [1937] AC 473,
Mannilal Sagarmal v. CIT [1957] 32 ITR 15 (All.),
Merchant Banking Company of London, Ex parte [1881] 16 Ch.D. 623,
Serajuddin & Co. v. Michael Golodetz [1958-59] 63 CWN 717,
Shibban Lal Saksena v. State of Uttar Pradesh [1954] SCR 418
|
| Laws Involved |
Income Tax Act, 1922,
Income Tax Act, 1961
|
| Sections |
23(4),
251,
144,
146
|