| Case ID |
1a12f449-1458-4d2b-964b-cf03c2c97ae8 |
| Body |
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| Case Number |
R.C. No. 65 of 1986 |
| Decision Date |
Mar 08, 1994 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the assessee, concluding that the mistakes referred to could not be rectified under section 35(1) of the Wealth Tax Act since they were discovered through an inquiry conducted after the assessment had already been finalized. The court emphasized that the 'record' for the purpose of rectification must pertain to the evidence existing at the time of the original assessment. The decision reaffirmed the principle that any findings or evidence obtained post-assessment cannot be considered part of the record for rectification purposes. Thus, the court answered both questions in the affirmative, upholding the appellate tribunal's decision. |
| Summary |
This case revolves around the interpretation of the Wealth Tax Act, 1957, particularly focusing on section 35 regarding the rectification of mistakes apparent from the record. The High Court addressed the issues raised by the Revenue concerning the authority's ability to rectify past assessment mistakes based on new findings obtained after the assessment was completed. The court concluded that such post-assessment findings do not form part of the official record and thus cannot be used for correction under section 35. The judgment is significant for tax practitioners and advocates in understanding the limitations of rectification powers under tax laws. It highlights the importance of adhering to the existing evidence at the time of assessment and clarifies the boundaries of the assessing authority's jurisdiction. This ruling serves as a precedent that reinforces the procedural integrity of tax assessments and the stringent requirements for rectifications, ensuring that all parties involved are clear about the evidentiary standards applicable in wealth tax cases. |
| Court |
High Court
|
| Entities Involved |
Not available
|
| Judges |
M.N. RAO,
T.N.C RANGARAJAN
|
| Lawyers |
Sri Ashok
|
| Petitioners |
COMMISSIONER OF WEALTH TAX
|
| Respondents |
R.D. SHAH
|
| Citations |
1995 SLD 820,
1995 PTD 834,
(1994) 207 ITR 271
|
| Other Citations |
Viswanathan Chettiar (E.M.) v. Agrl. ITO (1983) 142 ITR 244 (Kar.),
Maharana Mills (Pvt.) Ltd. v. ITO (1959) 36 ITR 350 (SC),
Mahendra Mills Ltd. v. P.B. Desai, AAC of I.T. (1975) 99 ITR 135 (SC)
|
| Laws Involved |
Wealth Tax Act, 1957,
Income Tax Act, 1922
|
| Sections |
27(1),
35,
35
|