| Case ID |
22822b63-174d-4d77-a947-7307eeab0c72 |
| Body |
View case body. Login to View |
| Case Number |
N/A |
| Decision Date |
Jan 01, 1954 |
| Hearing Date |
|
| Decision |
The Bombay High Court ruled in favor of All India Groundnut Syndicate Ltd., affirming that the right to carry forward business losses under section 24(2) of the Indian Income-tax Act, 1922 is an absolute right. The court found that the Income-tax Officer's failure to compute and notify the losses did not deprive the assessee of the right to set off those losses against future profits. The court emphasized that no party can benefit from its own default, which in this case was the Income-tax Department's failure to fulfill its statutory duty. The decision highlighted the importance of maintaining the integrity of taxpayers' rights in the face of administrative shortcomings. |
| Summary |
In the landmark case of All India Groundnut Syndicate Ltd. v. Commissioner of Income Tax, the Bombay High Court addressed critical issues surrounding the carry forward of business losses under the Income-tax Act, 1961 and the Indian Income-tax Act, 1922. The case arose when the assessee company, having incurred losses in the assessment years 1944-45 to 1946-47, sought to set off these losses against profits made in the assessment year 1948-49. The Income-tax Officer had previously taken the income of the company as 'nil' and failed to notify the losses as required by law. The court ruled that the right to carry forward losses is absolute and not contingent on the Income-tax Officer's computation or notification. This decision is pivotal for taxpayers, reinforcing their rights against administrative oversight. Keywords: Income-tax Act, business losses, carry forward, Bombay High Court, tax rights. |
| Court |
Bombay High Court
|
| Entities Involved |
Commissioner of Income Tax,
All India Groundnut Syndicate Ltd.
|
| Judges |
CHAGLA, C.J.,
TENDOLKAR, J.
|
| Lawyers |
N.A. Palkhiwala,
Sir Nusserwanji P. Engineer,
G.N. Joshi
|
| Petitioners |
All India Groundnut Syndicate Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1954 SLD 187,
(1954) 25 ITR 90
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
72,
157,
24(2),
24(3),
23(3),
30
|