| Case ID |
1a46cb3d-180d-42bd-9f20-5d27752367de |
| Body |
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| Case Number |
CIVIL APPEAL No. 1164 OF 1966 |
| Decision Date |
Sep 11, 1968 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled that the Income Tax Appellate Tribunal possesses the authority to grant stay orders on the recovery of penalties imposed during the pendency of an appeal. It emphasized that while the Tribunal is not a court, it exercises judicial powers similar to those of an appellate court. The ruling clarified that the Tribunal's powers are extensive and include the ability to grant stays as an incidental function of its appellate jurisdiction. The decision affirmed the Kerala High Court's ruling that the Tribunal had the power to stay proceedings and collection of penalties, thus preventing the appeal from becoming ineffective. The appeal was ultimately dismissed in favor of the assessee, emphasizing the need for the Tribunal to have the necessary powers to avoid injustice during tax appeal processes. |
| Summary |
In the landmark case of Income Tax Officer v. M. K. Mohammed Kunhi, the Supreme Court of India addressed pivotal issues regarding the powers of the Income Tax Appellate Tribunal under the Income-tax Act, 1961. The case centered on the Tribunal's authority to grant stay orders on penalty collections during appeals. The Court found that the Tribunal, while not a traditional court, wields significant judicial powers akin to those of appellate courts, allowing it to issue stays as part of its appellate functions. This ruling is significant for taxpayers and legal practitioners as it clarifies the procedural rights of assessees during tax disputes, ensuring that appeals remain effective and do not lead to unjust penalties. The decision reinforces the importance of judicial review in tax matters, emphasizing the Tribunal's role in preventing potential injustices that could arise from immediate recovery actions. The case serves as a vital reference point for ongoing discussions about administrative powers within tax law and the balance between revenue collection and taxpayer rights. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
J.C. Shah,
V. Ramaswami,
A.N. Grover
|
| Lawyers |
D. Narasaraju,
S.A.L. Narayana Rao,
R.N. Sachthey,
B.D. Sharma
|
| Petitioners |
Income Tax Officer
|
| Respondents |
M. K. Mohammed Kunhi
|
| Citations |
1969 SLD 631,
(1969) 71 ITR 815
|
| Other Citations |
M. K. Mohammed Kunhi v. ITO [1966] 59 ITR 171,
CIT v. Hazarimal Nagji & Co. [1962] 46 ITR 1168,
New India Assurance Co. Ltd. v. CIT [1957] 31 ITR 844,
Burhanpur Tapti Mill Ltd. v. Board of Revenue [1955] 6 STC 670,
Vetcha Sreenamamurthy v. ITO [1956] 30 ITR 252
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
254,
271(1)(c),
274(2),
220(6)
|