| Case ID |
38ae3db7-8e99-49dd-8a88-cb2b12f86149 |
| Body |
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| Case Number |
Income-tax Reference No. 419 of 1972 |
| Decision Date |
Oct 14, 1976 |
| Hearing Date |
|
| Decision |
The court held that the reassessment initiated under section 34(1)(a) of the Income Tax Act was valid despite the initial assessment being completed more than eight years ago. The amendment introduced by the Finance Act, 1956, eliminated the limitation period for reassessment, allowing the Income Tax Officer to proceed without time constraints. The Tribunal's earlier ruling that the assessment was barred by limitation was overturned, establishing that the extended period for reassessment applied, reaffirming the authority of the Income Tax Officer to reassess the income of the assessee based on newly discovered information. |
| Summary |
The case revolves around the interpretation of the Income Tax Act, 1922, particularly sections 34(1)(a) and 34(3). The primary issue was whether the reassessment after the prescribed eight-year period was valid due to amendments made by the Finance Act, 1956. The original assessment of the petitioner, Raja Mohd Mustafa Ali Khan, was completed on January 17, 1955, but the department later discovered undisclosed income, prompting reassessment proceedings initiated in 1955. The Appellate Tribunal initially ruled that the reassessment was time-barred. However, the High Court found that the amendments removed the limitation period, allowing for valid reassessment proceedings. This case highlights the procedural nuances of tax law and the impact of legislative changes on existing assessments, emphasizing the importance of staying informed about tax regulations and their amendments. |
| Court |
High Court
|
| Entities Involved |
|
| Judges |
C.S.P. SINGH,
R.M. SAHAI
|
| Lawyers |
Deokinandan,
Ashok Gupta,
S.B.L. Srivastava
|
| Petitioners |
COMMISSIONER OF INCOME TAX, U.P
|
| Respondents |
RAJA MOHD MUSTAFA ALI KHAN
|
| Citations |
1977 SLD 30,
(1978) 37 TAX 65
|
| Other Citations |
Karimtharuvi Tea Estate Ltd. v. State of Kerala [1966] 60 ITR 262 (SC),
Prashar (S.C.) v. Vasantsen Dwarkadas [1963] 49 ITR (SC)
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
34,
34(1)(a),
34(3)
|