| Case ID |
21151d2e-899a-451c-b43d-8c9650534247 |
| Body |
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| Case Number |
Civil Appeal NO 281 of 1955 |
| Decision Date |
May 08, 1959 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled that a voluntary return showing income below the taxable limit is a valid return under the Income Tax Act, 1922. The Court emphasized that the Income Tax Officer cannot ignore such a return if submitted before the assessment. It was determined that the notice of reassessment issued after the voluntary return was invalid, as there was no omission or failure on the part of the assessee. The Court affirmed the lower court's decision, reinforcing the legality of the voluntary return process and providing clarity on the timing of assessments under the Income Tax Act. |
| Summary |
The case of Commissioner of Income Tax, Bombay City II vs. Ranchhoddas Karsondas revolves around the interpretation of the Income Tax Act, 1922, particularly concerning the validity of voluntary income tax returns. The Supreme Court of India held that a return filed voluntarily, even if it shows income below the taxable limit, is considered a legitimate return. This case underscores the importance of allowing taxpayers to submit returns without the fear of subsequent reassessment notices when they have complied with the law. It highlights the legal framework regarding the timing and nature of income tax assessments, emphasizing the need for clarity in the procedures followed by tax authorities. Key terms include 'Income Tax Act', 'voluntary return', 'taxable income', and 'legal assessment procedures', which are crucial for understanding the implications of this ruling in the context of Indian tax law. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
S. R. DAS, C. J.,
BHAGWATI,
HIDAYATULLAH, J.
|
| Lawyers |
K. N. Rajagopal Sastri,
D. Gupta,
R. J. Kolah,
Ram Ditta Mal
|
| Petitioners |
COMMISSIONER OF INCOME TAX, BOMBAY CITY II
|
| Respondents |
RANCHHODDAS KARSONDAS
|
| Citations |
1960 SLD 14,
1960 PTD 129
|
| Other Citations |
Harakchand Makanji & Co. v. Commissioner of Income tax (1948) 16 I T R 119,
Commissioner of Agricultural Income tax v. Sultan Ali Ghnrami (1951) 20 I T R 432,
R. K. Das & Co. v. Commissioner of Income tax (1956) 30 I T R 439,
Commissioner of Income tax v. Govindalal Dutta (1958) 33 IT R 630,
All India Groundnut Syndicate Ltd. v. Commissioner of Income¬tax (1954) 25 I T R 90,
P. S. Rama Iyer v. Commissioner of Income tax (1957) 32 I T 8.458,
Ranchhoddas Karsondas v. Commissioner of Income tax (1954) 26 IT R 105
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
22(1),
22(2),
22(3),
34
|