| Case ID |
2e7ea438-e5b9-407f-8b9c-1056f70a72c1 |
| Body |
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| Case Number |
IT REFERENCE No. 20 OF 1973 |
| Decision Date |
Sep 02, 1974 |
| Hearing Date |
|
| Decision |
The court ruled that the Income Tax Officer (ITO) was not justified in reopening the assessments for the assessment years 1964-65 and 1965-66 as there was no new information that would warrant such action. The ITO had all the relevant information at the time of the original assessment and the subsequent reopening was deemed a mere change of opinion rather than based on new facts or law. Therefore, the Tribunal's decision to uphold the Appellate Assistant Commissioner's order was confirmed. |
| Summary |
In this significant case, the Gujarat High Court examined the scope of the Income Tax Officer's authority to reopen assessments under Section 147 of the Income Tax Act, 1961. The case revolved around the assessment years 1964-65 and 1965-66, where the ITO had initially completed assessments based on available information. The ITO later sought to reopen these assessments, claiming that the income had escaped assessment. However, both the Appellate Assistant Commissioner and the Tribunal found that the ITO had access to all necessary information at the time of the original assessments. The court emphasized that reopening assessments requires substantial new information—not just a change in opinion. This ruling reinforces the principle that tax assessments should not be reopened without valid grounds, protecting taxpayers from unwarranted scrutiny. The decision has implications for tax law and administrative practices, highlighting the importance of fair assessment processes in the realm of taxation. |
| Court |
Gujarat High Court
|
| Entities Involved |
|
| Judges |
B.J. DIVAN, C.J.,
B.K. MEHTA, J
|
| Lawyers |
K.H. Kaji,
R.P. Bhatt,
K.C. Patel
|
| Petitioners |
Additional Commissioner of INCOME TAX
|
| Respondents |
Laxmi Agents Ltd
|
| Citations |
1975 SLD 463,
(1975) 101 ITR 441
|
| Other Citations |
CIT v. A. Raman & Co. [1968] 67 ITR 11 (SC),
Anandji Haridas & Co. (P.) Ltd. v. S.P. Kushare [1968] 21 STC 326 (SC),
Kasturbhai Lalbhai v. R.K. Malhotra, ITO [1971] 80 ITR 188 (Guj.),
United Mercantile Co. Ltd. v. CIT [1967] 64 ITR 218 (Ker.),
CIT v. H. Holck Larsen [1972] 85 ITR 467 (Bom.),
Maharaj Kumar Kamal Singh v. CIT [1959] 35 ITR 1 ; [1959] Supp 1 SCR 10 (SC),
Salem Provident Fund Society Ltd. v. CIT [1961] 42 1TR 547 (Mad.)
|
| Laws Involved |
Income Tax Act, 1961,
Income Tax Act, 1922
|
| Sections |
147,
11A(3),
34(1)
|