| Case ID |
36dce7a6-1b5f-4b4a-a6e8-f6a856558fea |
| Body |
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| Case Number |
Civil Appeal No.8176 of 2001 |
| Decision Date |
Nov 29, 2001 |
| Hearing Date |
|
| Decision |
The Supreme Court allowed the appeal, reversing the decision of the High Court regarding the question of law. The court held that the question arose out of the order of the Appellate Tribunal and mandated that the Tribunal should state a case to the High Court for consideration. The High Court had previously declined to call for a reference on the matter, which was contested by the Department. The Supreme Court emphasized that the question of law regarding the onus of proof concerning unaccounted receipts necessitated judicial scrutiny, thus granting the appeal and requiring the Tribunal to prepare a statement of case for the High Court's consideration. |
| Summary |
In the landmark case of Commissioner of Income Tax vs. Abhishek Corporation, the Supreme Court of India addressed significant issues under the Income Tax Act, 1961, particularly focusing on the treatment of unaccounted receipts and the onus of proof upon the Assessing Officer. The case arose from the Income-tax Appellate Tribunal's decision which had previously ruled that the Department failed to substantiate claims of unaccounted investments. The Tribunal determined that the declared undisclosed income of Rs.30 lakhs was consistent with the net profit derived from supervision charges, calculated at a mere 1.31 percent of receipts. The Supreme Court's ruling highlighted the necessity for the Tribunal to refer specific legal questions for higher judicial review, ensuring clarity in tax law applications. This case underscores the challenges faced by tax authorities in establishing claims of undisclosed income and the importance of evidential support in tax litigation. Additionally, the Supreme Court's decision serves as a precedent for future cases involving tax assessments and the legal interpretations of income reporting obligations, setting a benchmark for both taxpayers and tax authorities alike. |
| Court |
Supreme Court of India
|
| Entities Involved |
|
| Judges |
S.P. BHARUCHA, C.J.,
L. SHIVARAJ V. PATIL,
ARIJIT PASAYAT, JJ
|
| Lawyers |
Mukul Rohtagi, Additional Solicitor General of India,
Ms. Neera Gupta,
B.V. Balaram Das,
H.A. Raichura,
Ms. S.H. Raichura,
Shailendra Singh
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
ABHISHEK CORPORATION
|
| Citations |
2004 SLD 216,
2004 PTD 2152,
(2003) 88 TAX 81
|
| Other Citations |
2016 PTD 1675,
PLD 1997 SC 32
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
68,
256(2)
|