| Case ID |
161fdd04-b229-4a82-b9c4-ab1c85c902d6 |
| Body |
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| Case Number |
IT REFERENCE No. 8 OF 1966 |
| Decision Date |
Jul 27, 1967 |
| Hearing Date |
|
| Decision |
The Gujarat High Court ruled that the Appellate Tribunal had the authority to direct the Income-tax Officer (ITO) to reassess the non-resident partner's share of income after proper notice. The court emphasized that the Tribunal's powers under section 33(4) of the Indian Income-tax Act, 1922, are extensive, allowing it to set aside assessments and direct fresh assessments as deemed appropriate. The Tribunal's decision to reassess the non-resident partner's income was upheld, affirming the need for due notice to the assessee as representing the non-resident partner. This decision reinforces the procedural integrity required in tax assessments involving non-resident partners. |
| Summary |
This case from the Gujarat High Court deals with the powers of the Appellate Tribunal under the Income-tax Act, 1961, particularly concerning the assessment of non-resident partners in a registered firm. The Tribunal's authority to direct the Income-tax Officer (ITO) to reassess the income of non-resident partners, ensuring that proper notice is given, was upheld by the court. The ruling clarifies that the Tribunal can pass orders that it considers fit, including setting aside assessments and instructing the ITO to conduct fresh assessments with appropriate notice to the parties involved. This case is significant for tax practitioners and firms with non-resident partners, emphasizing the importance of due process and the Tribunal's broad powers to ensure fair assessments. The decision aligns with the principles of tax law and highlights the procedural safeguards necessary in tax assessments, particularly where non-resident partners are involved. The ruling is also a critical reference for future cases involving similar tax assessment issues. |
| Court |
Gujarat High Court
|
| Entities Involved |
Commissioner of Income Tax,
Saurashtra Salt Manufacturing Co
|
| Judges |
Bhagwati, J.,
Divan, J.
|
| Lawyers |
K.H. Kaji for the Applicant,
J.M. Thakore,
M.M. Thakore,
M.G. Doshit,
K.L. Talsania for the Respondent
|
| Petitioners |
Saurashtra Salt Manufacturing Co
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1967 SLD 489,
(1967) 66 ITR 404
|
| Other Citations |
Hukumchand Mills Ltd. v. CIT [1967] 53 ITR 232 (SC)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
254,
33(4),
33(5)
|