| Case ID |
2030a2e6-f131-4b7c-88de-c0394428dc08 |
| Body |
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| Case Number |
IT REFERENCE No. 131 OF 1967 |
| Decision Date |
Sep 22, 1970 |
| Hearing Date |
Sep 23, 1970 |
| Decision |
The Calcutta High Court upheld the decision of the Commissioner of Income-tax to set aside the assessments made by the Income-tax Officer as being erroneous and prejudicial to the interests of revenue. The Court concluded that the assessments were made without proper investigation into the facts, specifically regarding the residency of the assessee at the declared address and the authenticity of the initial capital claimed from the sale of gold ornaments. The absence of satisfactory evidence from the assessee regarding her residency and the origins of her income warranted the Commissioner's directive for fresh assessments. The Tribunal's dismissal of the assessee's appeals was justified, affirming the need for a thorough inquiry into the claims made by the assessee. |
| Summary |
In the case of Shakuntala Devi vs. Commissioner of Income Tax, the Calcutta High Court addressed critical issues under the Income-tax Act, 1961, specifically under sections 263 and 33B. The case revolved around the reassessment of income for the assessment years 1956-57 to 1961-62, where the assessee, Shakuntala Devi, claimed to have derived initial capital from the sale of gold ornaments received at her marriage. The Income-tax Officer's assessments were completed hastily without adequate inquiry, leading to the Commissioner of Income-tax intervening under section 33B to reassess the situation. The court emphasized the importance of substantial evidence in tax assessments and the necessity for the revenue authority to investigate claims thoroughly to uphold the integrity of the tax system. The decision reinforces the principles of natural justice in tax matters, ensuring that all parties are afforded the opportunity to present their cases with sufficient evidence. This case is pivotal for understanding tax law and the responsibilities of both tax authorities and taxpayers in maintaining accurate and truthful financial disclosures. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
P.B. Mukharji, C.J.,
T.K. Basu, J.
|
| Lawyers |
Dr. Debi Pal,
Pronob Kumar Pal,
B.L. Pal,
A. Sen Gupta
|
| Petitioners |
Shakuntala Devi
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1971 SLD 653 = (1971) 82 ITR 416
|
| Other Citations |
Smt. Bagsu Devi Bafna v. CIT [1966] 62 ITR 506 (Cal.),
CIT v. Rampyari Khemka [1967] 63 ITR 367 (Cal.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
33B
|