| Case ID |
2ad68e27-0c1b-4cc9-9e8c-141c2ddd63ae |
| Body |
View case body. Login to View |
| Case Number |
C. O. No. 8283(W) of 1996 |
| Decision Date |
May 23, 1997 |
| Hearing Date |
|
| Decision |
The Calcutta High Court allowed the writ petition, quashing the impugned order of reassessment. The Court held that the order was patently illegal as the income in question, amounting to Rs. 8,52,000, had already been assessed for the assessment year 1984-85. The Court emphasized that once income is assessed for a particular year, it cannot be said to have escaped assessment, thereby disallowing the invocation of section 147 of the Income Tax Act. The Court noted that the petitioner had consistently informed the Assessing Officer about including this income in the previous assessment year and found no basis for reassessment. It was concluded that the action of the respondents was an abuse of process and lacked jurisdiction. |
| Summary |
In the case of HUM BOLDT WEDAG INDIA LTD. vs. ASSISTANT COMMISSIONER OF Income Tax, the Calcutta High Court addressed the legality of reassessment orders under the Income Tax Act, 1961. The petitioners filed an original return declaring an income of Rs. 8,22,400 for the assessment year 1984-85 but later revised it to show a loss of Rs. 55,660, claiming that a receipt of Rs. 8,52,000 should have been included in the assessment year 1983-84. The Assessing Officer, however, included this receipt in the assessment for 1984-85, leading to confusion regarding the proper assessment year. The Court found that since the income had been acknowledged and assessed, it could not be considered as having escaped assessment, thus invalidating the reassessment order. The ruling underscores critical principles regarding tax assessment and the procedural integrity expected from tax authorities, reinforcing the importance of accurate income reporting and the necessity for tax officials to adhere to established legal frameworks. This case highlights the significance of legal compliance in tax matters, serving as a precedent for future tax assessments and reinforcing taxpayer rights against arbitrary reassessment actions. Keywords: Income Tax Act, reassessment, legal compliance, taxpayer rights, Calcutta High Court. |
| Court |
Calcutta High Court
|
| Entities Involved |
|
| Judges |
V. K. Gupta
|
| Lawyers |
Pradip Dutta,
Pratima Mishra,
Swapna Misra,
R. C. Prasad
|
| Petitioners |
others,
HUM BOLDT WEDAG INDIA LTD.
|
| Respondents |
others,
ASSISTANT COMMISSIONER OF Income Tax
|
| Citations |
2000 SLD 293,
2000 PTD 2283,
(1999) 236 ITR 845
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
147,
148
|