| Case ID |
2b8426ef-9066-4a2a-beda-fa05001ba4ed |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Aug 28, 1972 |
| Hearing Date |
|
| Decision |
The Tribunal's earlier decisions regarding the applicability of section 155(3) of the Income-tax Act were overturned. The court clarified that the distinction between 'payable' and 'liable' is crucial in tax law. The High Court's ruling on the quashing of notices under the Excess Profits Tax Act led to the conclusion that the assessee was entitled to a refund of the excess profits tax previously assessed. The court emphasized that the 'payability' of tax is determined by the assessment process, and once the notices were quashed, the tax was no longer payable, allowing for rectification of the income-tax assessments to withdraw the earlier deductions granted for the excess profits tax. |
| Summary |
In the landmark case involving the Income-tax Act, 1961, and the Excess Profits Tax Act, 1940, the Allahabad High Court addressed critical issues related to tax liability and the rectification of past assessments. The case revolved around whether the Income Tax Officer (ITO) was competent to revise assessments under section 155(3) after the Supreme Court upheld a High Court ruling that quashed notices issued to the assessee for excess profits tax. The court determined that 'payable' and 'liable' are distinct concepts in tax law, leading to the conclusion that once the tax was quashed, the previous deductions were no longer valid. This case highlights the importance of understanding the nuances of tax legislation and the implications of judicial decisions on tax liabilities. It underscores the need for clarity in tax law interpretation, particularly in cases involving rectification of assessments. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
B.P. Jeevan Reddy, C.J.,
V.N. Mehrotra, J.
|
| Lawyers |
Not available
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ram Nath Ram Prasad
|
| Citations |
1991 SLD 1715 = (1991) 189 ITR 169
|
| Other Citations |
ITO v. Ram Prasad [1972] 86 ITR 145 (SC),
Burrakur Coal Co. Ltd. v. Union of India AIR [1961] SC 954,
Atma Ram v. State of Punjab AIR [1959] SC 519
|
| Laws Involved |
Income-tax Act, 1961,
Excess Profits Tax Act, 1940
|
| Sections |
155(3),
154
|