| Case ID |
2bfb7fcb-9a26-439e-82d7-80cc35f99b3d |
| Body |
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| Case Number |
WRIT PETITION Nos. 191 AND 204 TO 207 OF 1963 |
| Decision Date |
Jul 17, 1963 |
| Hearing Date |
|
| Decision |
The court held that the Income Tax Officer (ITO) exceeded his jurisdiction by attempting to rectify completed assessments for the years 1951-52 to 1955-56 based on the share income of the petitioner's minor sons. The court ruled that section 35(5) of the Income Tax Act, 1922, could not be applied retroactively to assessments finalized before April 1, 1952, and thus, the ITO's actions were invalid. The writ petitions were decided in favor of the petitioner, with the court quashing the ITO's rectification orders and prohibiting further proceedings for the contested assessment years. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, specifically sections 35(5) of the 1922 Act and 155 of the 1961 Act, concerning the rectification of tax assessments. The petitioner contested the additional assessments imposed by the Income Tax Officer (ITO) regarding his income and the share income of his minor sons. The High Court emphasized the importance of finality in tax assessments, ruling that the ITO could not amend previous assessments without proper jurisdiction. The decision reinforces the legal principle that retroactive application of tax laws must be explicitly stated by the legislature. This case highlights critical issues surrounding tax law, statutory interpretation, and the rights of taxpayers, making it a significant reference point for future tax litigation. |
| Court |
High Court
|
| Entities Involved |
Not available
|
| Judges |
Gopalakrishna Nair, J
|
| Lawyers |
K. Ramachandra Rao,
T. Venkatappa,
C. Kondaiah
|
| Petitioners |
Uppala Peda Venkataramanaiah
|
| Respondents |
First Additional Income Tax Officer
|
| Citations |
1964 SLD 372 = (1964) 53 ITR 11
|
| Other Citations |
Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC),
CIT v. Khemchand Romdai [1938] 6 ITR 414 (PC),
ITO v. S.K. Habibullah [1962] 44 ITR 809 (SC),
ITO v. Atmala Nagaraj [1962] 46 ITR 609 (SC),
State of Uttar Pradesh v. Mohammad Nooh [1958] SCR 595
|
| Laws Involved |
Income Tax Act, 1922,
Income-tax Act, 1961
|
| Sections |
35(5),
155
|