| Case ID |
24a44af2-d311-4ef2-836b-252859a276cd |
| Body |
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| Case Number |
Income-tax Reference No, 422 of 1970 |
| Decision Date |
Jan 19, 1975 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the assessee is entitled to raise new grounds in appeals against fresh assessments made according to the directions of the Appellate Assistant Commissioner. The court emphasized that even if the original assessments were based on the premise that the receipts from the sale of loom hours were assessable, the appellate authorities could allow the assessee to argue that these receipts were capital in nature, not revenue. This decision reiterates the principle that tax assessments must align with the provisions of the law, and the appellate authorities acted correctly in allowing the new plea of the assessee. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, 1922, specifically concerning the rights of an assessee to raise new grounds in appeals against fresh assessments. The Supreme Court of Pakistan ruled on January 19, 1975, that the assessee could introduce new pleas during appeals against fresh assessments directed by the Appellate Assistant Commissioner. This ruling has significant implications for tax law, particularly regarding how receipts are classified for tax purposes. In this instance, the court found that the sale proceeds from loom hours should be considered capital receipts rather than revenue, thereby affecting the tax liabilities of the jute milling company involved. The case highlights the importance of adhering to legal provisions during tax assessments and the rights of taxpayers to contest their assessments effectively. It serves as a crucial precedent in income tax law, ensuring that taxpayers can present comprehensive arguments in their appeals. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
Commissioner of Income Tax, West Bengal,
Shree Ganesh Jute Mills Ltd
|
| Judges |
S.C. Deb,
S.K. Hazra
|
| Lawyers |
Ajit Sen Gupta
|
| Petitioners |
Not available
|
| Respondents |
Shree Ganesh Jute Mills Ltd
|
| Citations |
1977 SLD 21 = (1978) 37 TAX 4
|
| Other Citations |
CIT v. Maheshwari Devi Jute Mills Ltd. [1965] 57 ITR 36 (SC)
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
30,
31
|