| Case ID |
2aaf1ff6-9c7a-4d5e-8795-2537e2436c8a |
| Body |
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| Case Number |
WRIT PETITIONS NOS, 1093 TO 1098 OF 1966 AND 604 O |
| Decision Date |
Jun 28, 1971 |
| Hearing Date |
|
| Decision |
The Madras High Court ruled in favor of the petitioner, stating that the notice issued under section 147 of the Income-tax Act was invalid as it was directed against a non-resident incorporated company outside the jurisdiction of Indian taxing authorities. The court emphasized that while associations could be taxed, the conditions for such taxation were not met in this case. The court found that the revenue had no jurisdiction to issue the notice against the incorporated company based in Ceylon, leading to the issuance of a writ of prohibition against the revenue's actions. This decision highlights the jurisdictional limits of Indian tax authorities over non-resident entities. |
| Summary |
The case involves a dispute between the petitioner, S.V.M. Sayed Cassim, and the Third Income Tax Officer regarding the jurisdiction of Indian tax authorities over a non-resident incorporated company, S.V.M. Mohamed Jamaludeen & Bros. (Ceylon) Ltd. The petitioner contended that the company was functioning outside Indian jurisdiction and that the notice issued under section 147 of the Income-tax Act was invalid. The court agreed, ruling that the revenue had no jurisdiction to tax the income of a non-resident company and that the notice should be quashed. This case underscores the importance of jurisdiction in taxation and sets a precedent for similar cases involving non-resident entities. Keywords: Income-tax Act, jurisdiction, non-resident, taxation, Madras High Court, writ of prohibition. |
| Court |
Madras High Court
|
| Entities Involved |
S.V.M. Mohamed Jamaludeen & Bros. (Ceylon) Ltd.
|
| Judges |
Ramaprasada Rao, J.
|
| Lawyers |
M.R.M. Abdul Karim,
P.M. Jummakhan,
V. Balasubrahmanyan,
J. Jayaraman
|
| Petitioners |
S.V.M. Sayed Cassim
|
| Respondents |
Third Income Tax Officer
|
| Citations |
1973 SLD 528,
(1973) 88 ITR 76
|
| Other Citations |
CIT v. S.V.M. Mohamed Jamaludeen Co. Sons (T.C.) No. 38 of 1958-26-9-1961,
S.V.M. Seyed Cassim v. ITO Karaikuda [1963] 50 ITR 473 (Mad.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
147
|