| Case ID |
26119f45-e412-4995-826e-af0a403b8ed0 |
| Body |
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| Case Number |
INCOME-TAX REFERENCE No. 198 OF 1971 |
| Decision Date |
Feb 15, 1973 |
| Hearing Date |
|
| Decision |
The court held that the Income-tax Officer (ITO) had become aware of all material facts regarding the cash credits long before the assessment for the year 1943-44 was finalized. The ITO's failure to include these credits in the assessment was not due to any omission by the assessee, but rather a mistake made by the ITO himself. Consequently, the escapement of income could not be attributed to any fault of the assessee, and thus the provisions of section 34(1)(a) of the Indian Income-tax Act, 1922, were not applicable. The Tribunal's decision to delete the cash credits from the assessment for the year 1944-45 was upheld, and the case was decided in favor of the assessee. |
| Summary |
This case revolves around the interpretation of section 147 of the Income-tax Act, 1961, concerning income escaping assessment. The primary issue was whether the ITO had sufficient grounds to reopen the assessment for the year 1943-44 due to alleged undisclosed income from cash credits. The court determined that the ITO had all necessary information as of February 22, 1947, and any failure to act upon this information was due to an error on the part of the ITO rather than any omission by the assessee. This ruling underscores the importance of the ITO's responsibilities in accurately assessing income and highlights the standards required for reopening assessments under the Income-tax Act. The case is significant for tax professionals and legal practitioners dealing with income tax assessments and the obligations of both the taxpayer and the tax authority. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
R.L. Gulati,
C.S.P. Singh
|
| Lawyers |
K.C. Agarwal,
Ashok Gupta,
Deokinandan
|
| Petitioners |
Jagdish Prasad
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1976 SLD 462 = (1976) 104 ITR 214
|
| Other Citations |
Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC),
Ice & General Mills v. ITO [1972] 83 ITR 34 (All.),
S.D. Sachdeva v. CIT [1972] 86 ITR 447 (Punj.),
Ram Charan Lal Ram Narain v. ITO [1966] 59 ITR 282 (All.),
Govind Ram v. ITO [1966] 61 ITR 120 (All.),
Dwijendra Chandra Choudhury v. CIT [1966] 61 ITR 97 (All.),
Eastern Coal Co. v. ITO [1970] 78 ITR 700 (Cal.),
R.M. Subramania Iyer v. ITO [1968] 68 ITR 863 (Ker.),
Rai Singh Deb Singh Bist v. Union of India [1970] 77 ITR 802 (Delhi),
Indra Co. Ltd. v. ITO [1971] 80 ITR 559 (Cal.),
CIT v. Chidambaram Chettiar [1971] 82 ITR 467 (SC)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
147,
34(1)(a)
|