| Case ID |
0fe369f1-f3dd-45d1-b25e-5a1b117a39e2 |
| Body |
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| Case Number |
INCOME-TAX REFERRED CASE No. 16 OF 1972 |
| Decision Date |
Jun 18, 1974 |
| Hearing Date |
Jun 18, 1974 |
| Decision |
The Karnataka High Court held that the Commissioner of Income Tax could not have concluded that the Income-tax Officer committed an error by not applying provisions of section 52 in the absence of material showing a connection between the transferee and the assessee. The court found that the Commissioner did not adequately demonstrate that the fair market value of the shares was above the declared value, which is necessary for invoking section 52. As a result, the Tribunal's decision to set aside the Commissioner's order was upheld. |
| Summary |
The Karnataka High Court addressed the case concerning the assessment year 1965-66, focusing on the application of sections 263 and 52 of the Income-tax Act, 1961. The case revolved around the sale of partly paid shares by the assessee, which were sold at cost price. The Commissioner sought to revise the assessment order, arguing that capital gains should be assessed under section 52. However, the court found that the Commissioner lacked sufficient evidence to show that the transfer was made to avoid tax liability or that the fair market value was significantly higher than the declared value. The Tribunal's ruling was confirmed, emphasizing the importance of material evidence in tax assessments and the rights of taxpayers against arbitrary revisions. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
G.K. Govinda Bhat, C.J.,
M.K. Srinivasa Iyengar, J.
|
| Lawyers |
S.R. Rajasekhara Murthy,
R. Srinivasan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
T. Narayana Pai
|
| Citations |
1975 SLD 528,
(1975) 98 ITR 422
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
52
|