| Case ID |
2cdd98b7-1b56-4ff1-bb08-129aca1b0d36 |
| Body |
View case body. Login to View |
| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal ruled that the Inspecting Assistant Commissioner (IAC) lacked jurisdiction to impose a penalty on the assessee after the amendment of section 274(2) of the Income-tax Act, which took effect on April 1, 1976. The IAC had imposed a penalty of Rs. 35,000 on March 7, 1978, but the Tribunal found that the relevant provisions had been deleted, thus rendering the IAC's order void and without jurisdiction. The court upheld the Tribunal's decision, emphasizing that legislative intent was to eliminate the IAC's power to impose penalties post-amendment, even for cases referred to him prior to the amendment. |
| Summary |
This case revolves around the jurisdiction of the Inspecting Assistant Commissioner (IAC) under the Income-tax Act, 1961, particularly focusing on the amendments made that affected the IAC's powers. The Supreme Court's ruling has significant implications for tax law and enforcement, as it clarifies the limits of authority for tax commissioners in imposing penalties for income concealment. The decision is rooted in the legislative changes introduced in the Taxation Laws (Amendment) Act, 1975, which eliminated certain powers previously held by the IAC, marking a pivotal moment in tax law interpretation. This case serves as a crucial reference for tax professionals and legal practitioners dealing with income tax assessments and penalties. |
| Court |
Allahabad High Court
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| Entities Involved |
Not available
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| Judges |
K.P SINGH,
R.K GULATI
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| Lawyers |
Not available
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Brindaban Kedarnath
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| Citations |
1992 SLD 1797,
(1992) 197 ITR 230
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| Other Citations |
CIT v. Om Sons [1979] 116 ITR 215 (All.),
CIT v. Lal Chand Jain [1989] 180 ITR 448 (All.),
Ganesh Doss Ram Gopal v. IAC [1983] 142 ITR 101 (All.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
271(1)(c),
274(2)
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