| Case ID |
15208986-6581-4a8c-b027-2630dc81540d |
| Body |
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| Case Number |
Civil Appeal No. 217 of 1953 |
| Decision Date |
Oct 29, 1954 |
| Hearing Date |
|
| Decision |
The Supreme Court allowed the appeal and set aside the order of the Income-tax Appellate Tribunal. The Court emphasized the need for the Income-tax Officer to base assessments on evidence and not mere suspicion. It directed that the Tribunal should provide the appellant with all relevant materials and allow the opportunity to present its case adequately. The assessment was remanded for proper evaluation, ensuring fairness and adherence to the principles of natural justice. |
| Summary |
The case of Dhakeshwari Cotton Mills, Ltd. vs. Commissioner of Income Tax, West Bengal revolves around issues of income assessment under the Income-tax Act, 1922. The Supreme Court of India addressed concerns of natural justice in tax assessments, emphasizing that the Income-tax Officer cannot rely solely on guesswork without credible evidence. The Court found that the Tribunal failed to disclose crucial information which could have affected the outcome of the case. The ruling highlights the importance of transparency and fairness in tax proceedings, ensuring that companies are given a fair chance to present their accounts. The decision sets a precedent for future cases regarding the obligations of tax authorities to comply with principles of natural justice. Key terms such as 'Income Tax', 'Supreme Court', and 'Natural Justice' are underscored in this landmark case. |
| Court |
Supreme Court of India
|
| Entities Involved |
Income-tax Officer,
Dhakeshwari Cotton Mills, Ltd.,
Income-tax Appellate Tribunal, Calcutta
|
| Judges |
Hasan, J.,
Bhagwati, J.,
Venkatarama Ayyar, J.
|
| Lawyers |
N. C. Chatterjee,
Veda Vyas,
S. K. Kapoor,
Ganpat Rai,
C. K. Daphtary,
G. N. Joshi
|
| Petitioners |
Dhakeshwari Cotton Mills, Ltd.
|
| Respondents |
Commissioner of Income Tax, West Bengal
|
| Citations |
1956 SLD 24,
1956 PLD 168
|
| Other Citations |
Seth Gurmukh Singh v. Commissioner of Income-tax, Punjab (1944) 12 I T R 393
|
| Laws Involved |
Income-tax Act, 1922,
Constitution of India
|
| Sections |
23(3),
Article 136
|