| Case ID |
161f0e03-dabd-4b0c-8f9c-e2da6d0d2092 |
| Body |
View case body. Login to View |
| Case Number |
TAX CASE No. 32 OF 1967 (REFERENCE No. 9 OF 1967) |
| Decision Date |
Aug 21, 1972 |
| Hearing Date |
|
| Decision |
The Madras High Court ruled in favor of the assessee, determining that the Income-tax Officer's reassessment under section 34(1)(b) was invalid due to the expiration of the four-year limitation period. The court clarified that while the Income-tax Officer could initiate reassessment proceedings under section 34(1)(a), he could not extend that authority to include items falling under section 34(1)(b) after the statutory time limit had passed. This decision emphasized the importance of adhering to the time constraints imposed by tax laws, thereby protecting the rights of taxpayers against potential overreach by tax authorities. |
| Summary |
This case revolves around the interpretation of sections 34(1)(a) and 34(1)(b) of the Indian Income-tax Act, 1922, focusing on income escaping assessment. The Madras High Court addressed whether the Income-tax Officer could reassess income items beyond the four-year period specified for clause (b), even if proceedings were initiated under clause (a). The court concluded that the Income-tax Officer's authority was confined to the provisions of the law, and any attempt to extend jurisdiction beyond the established time frame was invalid. This judgment is significant in maintaining the balance of power between tax authorities and taxpayers, ensuring that assessments are conducted within legal limits. The case underscores key concepts in tax law, including reassessment procedures, statutory limitations, and the rights of the assessee, making it a pivotal reference for future tax-related disputes. |
| Court |
Madras High Court
|
| Entities Involved |
Not available
|
| Judges |
G. Ramanujam,
V. Ramaswami
|
| Lawyers |
K. Parasaran for the Applicant,
V. Balasubrahmanyan for the Respondent
|
| Petitioners |
Al. Vr. St. Veerappa Chettiar
|
| Respondents |
Commissioner of Income-tax
|
| Citations |
1973 SLD 655,
(1973) 91 ITR 116
|
| Other Citations |
K.S. Abdul Sattar v. CIT [1963] 47 ITR 621 (AP),
Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191,
CIT v. Jagan Nath Maheshwary [1957] 32 ITR 418 (Punj.),
CIT v. M.K.K.R. Muthukaruppan Chettiar [1969] 72 ITR 403 (SC),
CIT v. S. Raman Chettiar [1965] ITR 630; 1 SCR 883 (SC),
CIT v. Ranchhjoddas Karsondas [1959] 36 ITR 569 ; [1960] 1 SCR 114 (SC),
S.S. Gadgil v. Lal & Co. [1964] 53 ITR 231 ; [1964] 8 SCR 72 (SC),
V. jaganmohan Rao v. CIT [1970] 75 ITR 373 ; [1970] 1 SCR 726 (SC),
A.M.K.M Karuppan Chettiar (Estate of) v. CIT [1969] 72 ITR 403 (SC),
K.E.M. Mohammad Ibrahim Maracair v. CIT [1964] 52 ITR 890 (Mad.),
P.R. Mukherjee v. CIT [1956] 30 ITR 535 (Cal.),
Pulavarthi Viswanadham v. CIT [1963] 50 ITR 463 (AP),
V.A.M. Sankaralinga Nadar v. CIT [1963] 48 ITR 314 (Mad.),
Seth Kalekhan Mohomed Hanif v. CIT [1958] 34 ITR 669 (MP),
Seth Kirorimal Advani v. ITO [1970] 77 ITR 789 (Assam)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
147,
34(1)(a),
34(1)(b)
|