| Case ID |
38707dbc-ae0e-4122-8fdc-ab314a261d1e |
| Body |
View case body. Login to View |
| Case Number |
CIVIL APPEAL Nos. 1275 TO 1277 OF 1970 |
| Decision Date |
Nov 05, 1974 |
| Hearing Date |
|
| Decision |
The Supreme Court held in favor of the assessee, concluding that the declaration filed under section 17(1) of the Indian Income-tax Act, 1922, was operative in relation to reassessments for the assessment years 1955-56 to 1957-58. The Court emphasized that the term 'assessment' in this context includes reassessment, thereby allowing the declaration to impact earlier assessments that were reopened. The decision reversed the judgment of the Madras High Court, affirming that the declaration should be considered valid for all assessments made after its filing, irrespective of the year. |
| Summary |
In the case of K.L. Varadarajan v. Commissioner of Income Tax, the Supreme Court of India deliberated on the applicability of a declaration made under section 17(1) of the Indian Income-tax Act, 1922, in relation to reassessments for the assessment years 1955-56 to 1957-58. The case arose when the assessee, who was studying abroad, sought to declare his income at rates appropriate to his world income, which was rejected by the Income-tax Officer (ITO) due to late filing. This led to the reopening of previous assessments. The Appellate Assistant Commissioner and the Tribunal sided with the assessee, but the Madras High Court ruled against him. The Supreme Court ultimately decided that the declaration was valid and applicable to reassessments, emphasizing the comprehensive nature of the term 'assessment' as including reassessment. This ruling clarifies the interpretation of tax law regarding declarations and reassessments, offering a significant precedent in income tax jurisprudence. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
H.R. Khanna,
A.C. Gupta
|
| Lawyers |
S.T. Desai,
J. Ramamurthi,
Hardayal Hardy,
S.P. Nayar
|
| Petitioners |
K.L. Varadarajan
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1975 SLD 559 = (1975) 98 ITR 182
|
| Other Citations |
CIT v. K.L. Varadarajan [1970] 75 ITR 23,
Commissioners for General Purposes of IT for the City of London v. Gibbs [1942] AC 402,
CIT v. Khemchand Ramdas [1938] 6 ITR 414,
A.N. Lakshmana Shenoy v. ITO [1958] 34 ITR 275
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
113,
147,
17(1),
34
|