| Case ID |
2e3c1c7a-a687-4fc0-96b8-6dab318adc12 |
| Body |
View case body. Login to View |
| Case Number |
Income-tax Reference No.79 of 1995 |
| Decision Date |
Jun 23, 1997 |
| Hearing Date |
|
| Decision |
The Madhya Pradesh High Court ruled that the order passed by the Commissioner of Income-tax under section 263 was invalid due to the lack of a detailed show-cause notice bearing the signature and seal of the concerned officer. The Court emphasized that the notice must clearly state the reasons why the order is prejudicial to the interests of the Revenue. The failure to provide a valid notice rendered the Commissioner's order void. The decision reinforced the necessity for adherence to procedural requirements in tax law to ensure fairness and transparency in the assessment process. |
| Summary |
In the case involving the Commissioner of Income Tax versus Sattandas Mohandas Sidhi, the Madhya Pradesh High Court addressed significant issues regarding compliance with procedural requirements under the Income Tax Act, 1961. The case centered on the validity of a notice issued by the Commissioner under section 263, which the Tribunal had previously annulled. The Court ruled that the notice must contain specific reasons for the Commissioner’s actions and must be delivered in accordance with section 282 of the Act, either via post or as a summons. The Court found that the telegraphic notice sent was insufficient and did not fulfill the legal requirements, thus invalidating the Commissioner's order. This case highlights the critical importance of procedural correctness in tax matters and the rights of taxpayers to receive fair notice and opportunity to respond. Key terms include 'Income Tax Act', 'section 263', 'procedural fairness', and 'tax law compliance'. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
A. K. Mathur, C.J.,
Dipak Misra, J.
|
| Lawyers |
Abhay Sapre for the Commissioner,
B. L of the Assessee
|
| Petitioners |
COMMISSIONER OF Income tax
|
| Respondents |
SATTANDAS MOHANDAS SIDHI
|
| Citations |
1999 SLD 558,
1999 PTD 3677,
(1998) 230 ITR 591
|
| Other Citations |
CIT v. General Trade Agencies (1973) TLR 1383 (Cal.),
Gooyee B:K.) v. CIT (1966) 62 ITR 109 (Cal.),
Rampyari Devi Saraogi v. CIT (1968) 67 ITR 84 (SC),
Rawani Dal and Flour Mills v. CST (1992) 86 ITR 409 (Orissa),
Umashankar Mishra v. CIT (1982) 136 ITR 330 (MP)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
263,
282
|