| Case ID |
17d4300e-6717-48be-b5b8-92ea11c74381 |
| Body |
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| Case Number |
APPEAL FROM ORIGINAL ORDER No. 109 OF 1958 |
| Decision Date |
May 19, 1960 |
| Hearing Date |
|
| Decision |
The appeal was dismissed, upholding the validity of the notices issued under section 34(1A) of the Indian Income-tax Act, 1922, and affirming the Income Tax Officer's authority to reopen assessments for the assessment years 1945-46 to 1947-48. The court ruled that the Income Tax Officer was not obligated to disclose the source of information leading to the belief that income had escaped assessment. The court emphasized the Parliament's competence to legislate regarding income tax, including past income prior to the Constitution coming into force, thereby confirming the validity of the Income-tax (Amendment) Act, 1954. The judges concluded that there was no violation of natural justice in the proceedings thus far. |
| Summary |
This case revolves around the appeal filed by Rungta Engineering & Construction Co. Ltd. against the Income Tax Officer's notices under section 34(1A) of the Indian Income-tax Act, 1922. The key issues included the legislative competence of the Parliament to enact the Income-tax (Amendment) Act, 1954, and whether the Income Tax Officer was required to disclose the source of information leading to the belief of income escaping assessment. The court found that the Parliament had the authority to legislate on taxation matters, even for periods before the Constitution was enacted, affirming the validity of the notices and the Income Tax Officer's actions. This case is significant as it clarifies the powers of income tax authorities and the legislative powers of the Parliament in relation to taxation, reinforcing the principles of natural justice and the procedural rights of taxpayers. Keywords: Income Tax Act, legislative competence, tax assessment, natural justice, Income-tax (Amendment) Act, 1954, Calcutta High Court. |
| Court |
Calcutta High Court
|
| Entities Involved |
Income Tax Officer,
Rungta Engineering & Construction Co. Ltd.
|
| Judges |
S. C. Lahiri, C.J.,
R. S. Bachawat, J.
|
| Lawyers |
Sukumar Mitra,
B.K. Chakravarty,
E.R. Meyer,
Balai Lal Pal
|
| Petitioners |
Rungta Engineering & Construction Co. Ltd.
|
| Respondents |
Income Tax Officer
|
| Citations |
1962 SLD 309 = (1962) 44 ITR 315
|
| Other Citations |
ITO v. Calcutta Discount Co. Ltd. [1953] 23 ITR 471 (Cal.),
Madhavakrishnaiah v. ITO [1954] 25 ITR 72 (SC),
Sree Rajendra Mills Ltd. v. ITO [1957] 32 ITR 439 (Mad.),
Surajmall Mohta & Co. v. Viswanatha Sastri [1954] 26 ITR 1 (SC),
Union of India v. Madan Gopal Kabra [1954] 25 ITR 58 (SC),
Doorga Prasad Chamaria v. Secretary of State [1945] 13 ITR 285 (PC)
|
| Laws Involved |
Income-tax Act, 1922,
Indian Independence (Rights, Properties and Liabilities) Order, 1947,
Income-tax (Amendment) Act, 1954
|
| Sections |
34,
34(1A)
|