| Case ID |
1f35f7b1-9bef-4f7a-821c-70d6f3acfd15 |
| Body |
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| Case Number |
IT REFERENCE No. 474 OF 1975 |
| Decision Date |
Apr 10, 1980 |
| Hearing Date |
|
| Decision |
The court held that the reopening of the assessment under Section 147(b) was invalid as there was no fresh information justifying the reassessment. The original assessment allowed a deduction under Section 35B based on the facts at hand, and upon reviewing old records without new evidence, the ITO's actions amounted to a mere change of opinion. The judgment emphasized that any reassessment must be based on new information; otherwise, it would be deemed arbitrary. The court also noted that the interpretation of the law regarding permissible deductions under Section 35B could have multiple interpretations, indicating that the ITO's earlier determination should stand unless new evidence warranted a change. |
| Summary |
In the landmark case of Commissioner of Income Tax v. Calcutta Steel Co. Ltd., the Calcutta High Court addressed the validity of reassessment proceedings under Section 147(b) of the Income-tax Act, 1961. The court examined whether the Income Tax Officer (ITO) had sufficient grounds to reopen an assessment based solely on previously reviewed materials without any new information. The case revolved around deductions claimed under Section 35B, which pertains to export market development allowances. The court concluded that the ITO's action constituted a mere change of opinion rather than a legitimate reassessment based on fresh evidence, thereby reinforcing the principle that reassessment requires new factual information. This decision underscores the importance of adhering to procedural correctness in tax assessments and the necessity for tax authorities to base their actions on substantive new information rather than simply re-evaluating existing data. The implications of this ruling are significant for tax practitioners and firms engaged in export activities, as it delineates the boundaries of permissible deductions and the conditions under which tax assessments can be revisited. The ruling is relevant for ongoing discussions about tax compliance and reassessment protocols within the framework of the Income-tax Act, 1961. |
| Court |
Calcutta High Court
|
| Entities Involved |
Calcutta Steel Co. Ltd.
|
| Judges |
Sabyasachi Mukharji,
Sudhindra Mohan Guha
|
| Lawyers |
S. Sen,
R.C. Prosad,
R.N. Bajoria,
S. K. Bagaria,
R. K. Chowdhury,
A.K. Dey
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Calcutta Steel Co. Ltd.
|
| Citations |
1981 SLD 1483 = (1981) 127 ITR 528
|
| Other Citations |
Anandji Haridas & Co. (P.) Ltd. v. S.P. Kushare, STO [1968] 21 STC 326 (SC),
Asghar All Mohammad Ali v. CIT [1964] 52 ITR 962 (All.),
Bankipur Club Ltd. v. CIT [1971] 82 ITR 831 (SC),
CIT v. Smt. Chand Kanwarji [1972] 84 ITR 584 (Delhi),
CIT v. A. Raman & Co. [1968] 67 ITR 11 (SC),
CIT v. Rathinasabapathy Mudaliar [1964] 51 ITR 204 (Mad.),
CIT v. Sir Mahomed Yusuf Ismail [1944] 12 ITR 8 (Bom.),
CIT v. H. Hoick Larsen [1972] 85 ITR 467 (Bom.),
CWT v. Imperial Tobacco Co. of India Ltd. [1966] 61 ITR 461 (SC),
Indian and Eastern Newspaper Society v. CIT [1979] 119 ITR 996 (SC),
Income-tax Appellate Tribunal v. B.P. Byramji & Co. [1946] 14 ITR 174 (Nag.),
ITO v. Panama (P.) Ltd. [1974] 97 ITR 210 (Cal.),
Kalyanji Mavji & Co. v. CIT [1976] 102 ITR 287 (SC),
Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 (SC),
Parkin v. Cattell [1971] 48 TC 462 (CA),
Reform Flour Mills (P.) Ltd. v. CIT [1973] 88 ITR 150 (Cal.),
Salem Provident Fund Society Ltd. v. CIT [1961] 42 ITR 547 (Mad.),
S.B. (House & Land) (P.) Ltd. v. CIT [1979] 119 ITR 785 (Cal.),
State of U.P. v. Ramchandra Trivedi AIR 1976 SC 2547,
Union of India v. K. S. Subramanian AIR 1976 SC 2433
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
147(b),
35B
|