| Case ID |
156b1b97-3c1d-4592-9ac8-6f76f2876a4e |
| Body |
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| Case Number |
CIVIL APPEAL No. 2728 OF 1972 |
| Decision Date |
Sep 16, 1980 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the findings of the tribunal regarding the remittance of Rs. 1,07,350 as undisclosed income of the assessee were unjustified. The court noted that the letters relied upon by the Income Tax Officer (ITO) were hearsay and not disclosed to the assessee during the proceedings. The court emphasized that the burden of proof lay on the department to demonstrate that the remitted amount belonged to the assessee and that the evidence presented was insufficient. The appeal was allowed, reversing the decision of the Bombay High Court, and the court ruled in favor of the assessee. |
| Summary |
In the landmark case of Kishinchand Chellaram v. Commissioner of Income Tax, the Supreme Court of India examined the legality of income assessment under the Indian Income-tax Act, 1922. The case revolved around a remittance of Rs. 1,07,350 from Madras to Bombay, which the Income Tax Officer classified as undisclosed income. The court found that the evidence presented by the revenue authorities lacked credibility as it was based on hearsay and not disclosed to the assessee. Furthermore, the court highlighted that the burden of proof rested with the department to establish that the remittance was indeed the income of the assessee. The judgment emphasized the importance of proper evidence and the right to a fair hearing, ultimately ruling in favor of the assessee. This case underscores the principles of transparency and accountability in tax assessments, making it a significant reference for future income tax litigations. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income tax,
Kishinchand Chellaram
|
| Judges |
P.N. Bhagwati,
E.S. Venkataramiah
|
| Lawyers |
H.G. Advani,
Ashok Advani,
Hiranand,
Mrs. Sheil Sethi,
K. Balasubramaniam,
P.A. Francis,
Miss A. Subhashini
|
| Petitioners |
Kishinchand Chellaram
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1980 SLD 1176,
(1980) 125 ITR 713
|
| Other Citations |
Kishinchand Chellaram v. CIT [1972] 84 ITR 485
|
| Laws Involved |
Indian Income-tax Act, 1922
|
| Sections |
23(3),
143(3)
|