| Case ID |
251c378a-6756-477f-89bc-cf3e60d6a7e8 |
| Body |
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| Case Number |
IT REFERENCE No. 308 OF 1969 |
| Decision Date |
Oct 04, 1977 |
| Hearing Date |
|
| Decision |
The court held that the proceedings for recovery of tax were distinct from those for the imposition of penalties. It ruled that the penalties imposed under section 46(1) of the Indian Income-tax Act, 1922, read with section 21 of the Excess Profits Tax Act, were not barred by limitation. Furthermore, it was determined that penalties could still be levied even after the repeal of the 1922 Act by the 1961 Act, provided the provisions had been incorporated into the later statute. The decision favored the revenue, affirming the Tribunal's ruling that the imposition of penalty was a separate proceeding and not a recovery action. As a result, the penalties imposed were validated, and the case clarified the legal standing of penalties in tax law. |
| Summary |
This case involves the interpretation of the Income-tax Act, 1961, the Excess Profits Tax Act, 1940, and the Indian Income-tax Act, 1922. The key issues addressed were whether the imposition of penalties for tax defaults is subject to the same limitations as tax recovery proceedings and whether penalties could be levied after the repeal of the 1922 Act. The court concluded that the imposition of penalties is a distinct process from tax recovery, thus not limited by the same timeframe. The ruling affirmed the validity of penalties levied after the repeal of the 1922 Act as long as the relevant provisions were carried over into the new legislation. This case is significant for taxpayers and legal practitioners, clarifying the treatment of penalties in tax law and ensuring that tax authorities can enforce penalties effectively. The keywords relevant to this case include Income-tax Act, tax penalties, Excess Profits Tax Act, legal proceedings, and tax recovery limitations, which are essential for understanding the implications of tax law and compliance in India. |
| Court |
Calcutta High Court
|
| Entities Involved |
|
| Judges |
Dipak Kumar Sen,
C.K. Banerji
|
| Lawyers |
R. Murarka,
Ajit Sengupta,
P. Majumdar
|
| Petitioners |
Anandram Gajadhar
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1978 SLD 638,
(1978) 113 ITR 566
|
| Other Citations |
Chhotey Lal v. ITO [1968] 69 ITR 709 (All.),
Jethalal Nagji Shah v. Municipal Corporation [1954] 25 ITR 207(Bom.),
B.D. Khaitan v. ITO [1978] 113 ITR 556 (Cal.),
T.R. Rajakumari v. ITO [1972] 83 ITR 189 (Mad.),
Secretary of State v. Hindustan Co-operative Insurance Society Ltd. AIR 1931 PC 149,
Ram Sarup v. Munshi, AIR 1963 SC 553
|
| Laws Involved |
Income-tax Act, 1961,
Excess Profits Tax Act, 1940,
Indian Income-tax Act, 1922
|
| Sections |
221,
21,
46(1),
46(7)
|