| Case ID |
1f215285-87a0-4bb4-aa06-1f71e641a6d7 |
| Body |
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| Case Number |
Civil Appeal No. 4409 of 1993 |
| Decision Date |
Aug 11, 1994 |
| Hearing Date |
|
| Decision |
The Supreme Court set aside the orders made by the High Court in the three reference cases, remanding the matters for a fresh hearing on the merits without reference to the earlier orders. The court highlighted that the High Court had previously ruled in favor of the appellant but later recalled its decisions, leading to confusion regarding the assessability of rental income derived from flats under the Income Tax Act. The Supreme Court emphasized the importance of judicial consistency and the need for a thorough reconsideration of the issues at hand, ensuring that all parties were given a fair opportunity to present their arguments. The final ruling mandated that the High Court reconsider the case based on the merits of the arguments presented, ultimately aiming for a just resolution. |
| Summary |
In the landmark case of K.N. Razdan v. Commissioner of Income Tax, the Supreme Court of India addressed critical issues surrounding the assessment of rental income under the Income Tax Act, 1961. This case revolved around the rental income derived from flats that the assessee had taken possession of under an agreement with a right to re-enter. The case highlights the complexities of categorizing income under the heads of 'Income from House Property' versus 'Income from Other Sources.' The Supreme Court's decision to set aside the High Court's earlier orders and remand the case for fresh consideration underscores the importance of judicial review and consistency in tax law interpretation. The ruling is significant for taxpayers and legal practitioners alike, emphasizing the need for clarity in legal proceedings and the assessment of income. This case serves as a critical reference point for understanding the nuances of income tax law in India, particularly in relation to rental income and property agreements. Keywords such as 'Income Tax Act', 'Supreme Court', 'rental income', 'legal review', and 'tax law interpretation' are essential for understanding the broader implications of this case. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
B.P. Jeevan Reddy,
N.P. Singh
|
| Lawyers |
Shom Mandal,
Miss Abha Sharma,
K.N. Shukla,
M.B. Rao,
S.N. Terdol,
D.S. Mahra
|
| Petitioners |
K.N. Razdan
|
| Respondents |
COMMISSIONER OF INCOME TAX
|
| Citations |
1995 SLD 73,
1995 PTD 1110,
(1994) 210 ITR 827
|
| Other Citations |
(1993) 204 ITR 83
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
22,
56,
63,
256
|