| Case ID |
1aef800c-e2de-4e77-9860-2742256e71a2 |
| Body |
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| Case Number |
Income Tax Reference No. 19 of 1980 |
| Decision Date |
Sep 25, 1991 |
| Hearing Date |
|
| Decision |
The court held that the assessment orders drafted by the Income Tax Officer on February 20, 1965, were not final orders, and thus the limitation for drawing up penalty proceedings did not commence from that date. The Commissioner of Income Tax had not agreed with the draft orders and had directed further enquiries, resulting in higher assessments for the taxpayer. The tribunal's conclusion that these draft orders were not final was upheld, emphasizing that effective orders must be communicated to the affected parties. The ruling affirmed that the limitation for penalty proceedings is contingent on the finality of assessment orders. |
| Summary |
This case revolves around the Income Tax Act, 1961, specifically focusing on the limitations regarding penalty proceedings for income concealment. The Allahabad High Court examined whether the draft assessment orders submitted by the Income Tax Officer constituted final orders, thereby triggering the limitation period for imposing penalties under section 271(1)(c). The court emphasized that for an order to be effective, it must be communicated to the concerned party, reinforcing the principle that mere draft orders do not initiate the commencement of limitation periods. This precedent is critical for tax law practitioners in understanding the nuances of compliance and the procedural integrity required in tax assessments. The ruling is particularly relevant for cases dealing with penalties for concealment of income, where the timing of assessments and the communication of decisions are pivotal. The court's decision highlights the importance of clarity in procedural matters within the income tax framework, serving as a guiding principle for future cases in this domain. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
A.P. MISRA,
DR. R.R. MISRA
|
| Lawyers |
Not available
|
| Petitioners |
SHIV SHANKER STTA RAM
|
| Respondents |
COMMISSIONER OF INCOME TAX
|
| Citations |
1993 SLD 88,
1993 PTD 819,
(1993) 199 ITR 169
|
| Other Citations |
CIT v. Mahabir Prasad Poddar (1974) 93 ITR 215 (Cal.)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
271(1)(c),
275
|