| Case ID |
2b9fb037-3098-4009-b89a-8531da40a08e |
| Body |
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| Case Number |
D-2741 of 1970 |
| Decision Date |
Jan 01, 1987 |
| Hearing Date |
Jan 01, 1987 |
| Decision |
The Tribunal held that the Appellate Assistant Commissioner (AAC) was incorrect in entertaining the additional ground raised by the assessee regarding the addition of Rs. 18,052. The Tribunal concluded that since the partner of the assessee firm had accepted the discrepancies pointed out by the Income Tax Officer (ITO) and requested the addition to income, there was no basis for the AAC to delete this addition. The Tribunal emphasized that the assessee must seek rectification from the ITO if they believed their statement was made under a mistaken belief. Thus, the appeal was not competent until such rectification was made. The decision reaffirmed the importance of adhering to procedural protocols when addressing discrepancies in tax assessments. |
| Summary |
This case revolves around the assessment year 1970-71 concerning Rameshchandra & Co., which faced discrepancies in its accounts regarding the purchase and sale of 'Sarki'. The Income Tax Officer (ITO) identified a significant discrepancy involving 360 bags of 'Sarki' that were neither recorded in sales nor closing stock. A partner of the assessee acknowledged the discrepancy and consented to an addition to their income. Later, during the appeal proceedings, the Appellate Assistant Commissioner (AAC) entertained additional grounds from the assessee, arguing that the addition was improper. The Tribunal ultimately ruled that the AAC erred in this matter, highlighting the necessity for the assessee to rectify their earlier statement with the ITO before pursuing an appeal. This case underscores the critical importance of accurate record-keeping and the procedural requirements essential for tax assessments, reflecting ongoing trends in tax law and compliance. It also illustrates the legal principles surrounding admissions and appeals in tax matters, making it a significant reference point for future cases regarding tax assessments and the rights of taxpayers. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
S.P. Bharucha,
V.A. Mohta
|
| Lawyers |
C.J. Thakkar,
N.J. Thakkar,
R.A. Shah,
S.S. Dwivedi,
G.S. Jetly,
A. Shelat,
S.G. Aney,
Miss S.G. Shah
|
| Petitioners |
Rameshchandra & Co.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1987 SLD 3434,
(1987) 167 ITR 375
|
| Other Citations |
Jivatlal Purtapshi v. CIT [1967] 65 ITR 261 (Bom.),
Chhat Mull Aggarwal v. CIT [1979] 116 ITR 694 (Punj. & Har.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
251
|