| Case ID |
260e4730-6776-4615-9e12-a210d0980aa0 |
| Body |
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| Case Number |
Civil Writ Petition No. 1165 of 1974 |
| Decision Date |
Jul 22, 1980 |
| Hearing Date |
|
| Decision |
The court ruled that the notice for reassessment issued by the Income Tax Officer was invalid due to lack of material evidence suggesting that the petitioner's income had escaped assessment. The court emphasized that the belief of the Income Tax Officer must be based on reasonable grounds and not mere conjecture. The petitioner's prior disclosures regarding his income and expenses were deemed sufficient, thus quashing the notices and proceedings initiated under sections 147 and 148 of the Income Tax Act. The court allowed the writ petition, ensuring that the principles of fairness and justice were upheld in tax assessment procedures. |
| Summary |
This case revolves around a challenge to the validity of reassessment notices issued under the Income Tax Act, 1961. The petitioner, Asoke Kumar Sen, a senior advocate and former minister, contested the Income Tax Officer's belief that his income had escaped assessment for the year 1962-63. The court found that the officer's assumptions regarding the petitioner's expenses were unfounded and not supported by factual evidence. The ruling underscored the necessity for tax authorities to possess reasonable grounds before initiating reassessment, reinforcing taxpayer rights and the importance of transparent legal processes. This case serves as a precedent for ensuring that tax assessments are conducted based on substantiated evidence rather than speculation, highlighting the critical balance between governmental authority and individual rights in fiscal matters. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
AVADH BEHARI ROHATGI,
S. B. WAD
|
| Lawyers |
G. C. Sharma, Senior Advocate,
D. K. Jain,
Anoop Sharma,
Madahar Rahendra,
S. Mukherjee
|
| Petitioners |
Asoke Kumar Sen
|
| Respondents |
Another,
Income Tax Officer, Special Circle V, New Delhi
|
| Citations |
1982 SLD 51,
1982 PTD 235,
(1982) 45 TAX 268
|
| Other Citations |
Income Tax Officer v. Madnani Engineering Works Ltd. (1979) 118 ITR 1 (SC),
IRC v. Rossminster Ltd. (1979) 52 TC 160,
Liversidge v. Anderson (1942) AC 206 (HL),
Nakhuda Ali v. Jayaratne (1951) AC 66 (PC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
147,
148
|