| Case ID |
32274212-5a4a-42d0-b33a-2f66f63b33a2 |
| Body |
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| Case Number |
CIVIL APPEAL No. 73 OF 1965 |
| Decision Date |
Dec 14, 1965 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the decision of the Income-tax Appellate Tribunal which had found that the appellant's business was controlled from India throughout the accounting year. The Court ruled that the foreign business income could not be apportioned based on the period of control. The Court also affirmed that the High Court rightly dismissed the assessee's claim regarding set off of prior losses, stating that the losses referenced were not pertinent to the current assessment year. In conclusion, the appeal was dismissed in favor of the revenue, affirming the findings of the lower courts. |
| Summary |
In the landmark case of B.B. Iranee vs. Commissioner of Income Tax, the Supreme Court examined critical aspects of income taxation under the Income-tax Act, 1961. The case revolved around the assessment of income from a Hong Kong-based business controlled from India. The appellant, B.B. Iranee, contested the inclusion of his Hong Kong business profits in his taxable income, arguing that he was not in control of the business during the entire financial year. The Supreme Court's decision emphasized the importance of control in determining tax liabilities for income generated outside of India. This case is significant for individuals and businesses operating internationally and navigating complex tax regulations. The ruling clarified that mere temporary absence from the business's headquarters does not negate control or tax obligations. It also reinforced the principle that losses from prior years cannot be offset against current profits unless explicitly permitted. This case serves as a pivotal reference for tax professionals and legal practitioners dealing with international income tax issues. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
K. Subba Rao,
J.C. Shah,
S.M. Sikri
|
| Lawyers |
S.P. Mehta,
T.A. Ramachandran,
O.C. Mathur,
A.V. Viswanatha Sastri,
N.D. Karkhanis,
R.N. Sachthey
|
| Petitioners |
B.B. Iranee
|
| Respondents |
Commissioner of INCOME TAX
|
| Citations |
1966 SLD 188,
(1966) 60 ITR 437
|
| Other Citations |
B.B. Iranee v. CIT [1963] 50 ITR 366
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
5,
256,
4(1),
66
|