| Case ID |
151a52e5-7ff1-47ff-9863-8883779e8ed0 |
| Body |
View case body. Login to View |
| Case Number |
Civil Appeal No. 1235 of 1977 |
| Decision Date |
Jul 13, 1993 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the decision of the High Court, affirming the validity of the reassessment notices issued to the appellant firm. The Court found that the Income Tax Officer had reasonable grounds to believe that income had escaped assessment due to the failure of the firm to disclose material facts regarding the cash loan claimed from a Calcutta company. The Court emphasized the importance of full and true disclosure of material facts during assessment proceedings, stating that subsequent reliable information indicating that the loan was not genuine justified the reopening of the assessment. The decision reinforced the principle that an assessee cannot benefit from false representations made during original assessment. The appeal was dismissed, and the proceedings for reassessment were to be concluded expeditiously. |
| Summary |
In the landmark case of Phool Chand Bajrang Lal vs. Income Tax Officer, the Supreme Court of India addressed critical issues surrounding the reassessment of income tax claims under the Income Tax Act, 1961. The case revolved around allegations of the appellant firm falsely claiming a cash loan of Rs. 50,000 from a Calcutta-based company, which was later found to be a mere name-lending entity. The Supreme Court's ruling emphasized the necessity for assessees to provide complete and accurate disclosures of all material facts during the assessment process. The Court held that the Income Tax Officer, upon receiving subsequent specific and reliable information about the bogus nature of the loan, had the authority to initiate reassessment proceedings under sections 147 and 148 of the Income Tax Act. This case serves as a pivotal reference for understanding the obligations of taxpayers and the powers of tax authorities in reassessment matters, marking a significant stance against tax evasion and promoting transparency in financial declarations. Keywords: Income Tax Act, reassessment, full disclosure, tax evasion, bogus transactions, Supreme Court, legal obligations. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
S.C. Agrawal,
Dr. A.S. Anand
|
| Lawyers |
G.C. Sharma, Senior Advocate,
Mrs. Indu Goswami,
Ms. Preinlata Bansal,
Ram Avtar Barisal,
R.K. Maheshwari,
Arvind Minocha, Advocates with him,
S.C. Manchanda, Senior Advocate,
K.P. Bhatnagar,
S. Rajappa,
P. Parameswaran, Advocates with him
|
| Petitioners |
Another,
Phool Chand Bajrang Lal
|
| Respondents |
Income Tax Officer,
Another
|
| Citations |
1994 SLD 157,
1994 PTD 1216,
(1993) 203 ITR 456
|
| Other Citations |
CIT v. T.S. PL.P. Chidambaram Chettiar (1971) 80 ITR 467 (SC),
Chhugamal Rajpal v. S.P. Chaliha (1971) 79 ITR 603 (SC),
ITO v. Lakhmani Mewal Das (1976) 103 ITR 437 (SC),
CIT v. Burlop Dealers Ltd. (1971) 79 ITR 609 (SC),
Phool Chand Bajrang Lal v. ITO (1977) 110 ITR 834,
A.L.A. Firm v. CIT (1991) 189 ITR 285 (SC),
Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
147,
148,
149
|