Legal Case Summary

Case Details
Case ID 2c7102d8-75da-4fee-bdc3-0c0f3f16ab10
Body View case body.
Case Number Income Tax References Nos. 87 and 415 of 1978
Decision Date Feb 18, 1993
Hearing Date
Decision The Bombay High Court ruled in favor of the assessee, Smt. Sairabanu, stating that the additions made to her income by the Income Tax Officer were not justified. The court found that the assessee was entitled only to a specific remuneration of Rs.80,000 per annum from the company, and there was no evidence to support the claim that the agreement with the company was made to evade tax. The Tribunal's decision to delete the additions was upheld, emphasizing that the Revenue failed to provide material evidence of tax evasion.
Summary In the case of Income Tax References Nos. 87 and 415 of 1978, the Bombay High Court addressed the issue of income tax assessment for a film artiste, Smt. Sairabanu. The case revolved around her agreement with Caprica Film Enterprises, which provided her services to film producers. The Income Tax Officer added amounts to her income on the grounds of tax evasion, claiming the company was controlled by her family. However, the court found that Smt. Sairabanu was entitled only to Rs.80,000 per annum and that the Revenue did not substantiate its claims. The decision reinforced the principle that mere allegations without evidence do not suffice for tax assessment. This case highlights the importance of clear agreements in tax matters and the need for the Revenue to provide tangible proof in claims of tax evasion. Keywords include 'Income Tax Act', 'Bombay High Court', 'tax evasion', and 'film artiste'.
Court Bombay High Court
Entities Involved Caprica Film Enterprises (Private) Ltd.
Judges MRS. SUJATA MANOHAR, U. T. SHAH, JJ
Lawyers G.S. Jetley, P.S. Jetley, S.J. Mehta, I.M. Munim
Petitioners COMMISSIONER OF Income Tax
Respondents Smt. SAIRABANU
Citations 1994 SLD 119, 1994 PTD 923, (1993) 203 ITR 145
Other Citations McDowell & Co. Ltd. v. CTO (1985) 154 ITR 148, (1985) 59 STC 277 (SC)
Laws Involved Income Tax Act, 1922
Sections Not available