| Case ID |
262e8a3e-08b9-43eb-819c-e83082d841f1 |
| Body |
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| Case Number |
Income-tax References Nos. 174 of 1997 and 111 of |
| Decision Date |
Nov 29, 1999 |
| Hearing Date |
|
| Decision |
The Kerala High Court upheld the validity of the appeal filed by the assessee against the decision of the Commissioner of Income Tax. The court emphasized that the right of appeal is substantive and vested at the initiation of proceedings. It ruled that the change in law regarding the admissibility of appeals did not retroactively affect the pre-existing rights of the assessee. The court further clarified that the relevant date for determining the applicability of the law is the date when the dispute arose, which was prior to the amendment on April 1, 1989. Therefore, the appeal was deemed competent and was to be entertained based on the law as it stood before the amendment. |
| Summary |
In the case of Commissioner of Income Tax vs. Kerala Transport Co, the Kerala High Court addressed crucial issues regarding the right of appeal under the Indian Income Tax Act, 1961. The court highlighted that a right of appeal is a substantive right that becomes vested at the initiation of proceedings. It ruled that the appeal filed on April 26, 1989, was valid despite a change in law effective from April 1, 1989, which restricted the powers of the Commissioner of Income-tax (Appeals) to condone non-payment of admitted tax. The court underscored that the critical date for the exercise of the right of appeal is when the dispute arose, prior to the amendment. This ruling is significant for taxpayers and legal practitioners, as it reaffirms the principle that amendments affecting substantive rights must not be applied retroactively unless explicitly stated. The decision also reinforces the importance of understanding procedural nuances in tax law, particularly in the context of appeals and the conditions under which they may be entertained. |
| Court |
Kerala High Court
|
| Entities Involved |
|
| Judges |
ARIJIT PASAYAT, C.J.,
K. S. RADHAKRISHNAN, J
|
| Lawyers |
P.K.R. Memon,
N.R.K. Nair,
C. Kochumin Nair,
S. Vinod Kumar,
Dale P. Kurien
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
KERALA TRANSPORT CO
|
| Citations |
2002 SLD 261,
2002 PTD 1631,
(2000) 242 ITR 263,
(2001) 83 TAX 235,
(1999) 80 TAX 282
|
| Other Citations |
Garikapati Veeraya v. N. Subbiah Chowdhry (1957) AIR 1957 SC 540,
Hoosem Kasam Dada (India) Ltd. v. State of Madhya Pradesh (1953) 4 STC 114,
Kirpa Singh v. Rasalldar Ajaipal Singh (1928) AIR 1928 Lah. 627,
Ramesh Singh v. Cinta Devi (1996) AIR 1996 SC 1560,
Special Military Estates Officer v. Munivenkataramiah (1990) AIR 1990 SC 499,
State of Bombay v. Supreme General Films Exchange Ltd. (1960) AIR 1960 SC 980,
Vithalbhai Naranbhai Patel v. CST (1961) 12 STC 219
|
| Laws Involved |
Indian Income Tax Act, 1961
|
| Sections |
249
|