| Case ID |
3974bbed-245a-4341-8440-2be266c7edd6 |
| Body |
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| Case Number |
MISC. PETITION No. 374 OF 1974 |
| Decision Date |
Jul 18, 1979 |
| Hearing Date |
|
| Decision |
The court held that the observations made by the Tribunal in previous appeals, to which the petitioner was not a party, could not be considered as 'definite information' under section 15 for reassessment. The court emphasized that the exercise of jurisdiction by the Department was misconceived and irregular, leading to the quashing of the notices issued under section 15 of the Excess Profits Tax Act. The decision reaffirmed the importance of adequate and explicit information before tax reassessment can be justified, particularly when such actions are taken after a significant delay of 24 years. |
| Summary |
The case of Mill Stores Trading Co. of (I) Pvt. Ltd. v. J.B. Panchal, ITO addressed critical issues regarding reassessment under the Excess Profits Tax Act, 1940. The Bombay High Court ruled that observations made by the Income-tax Appellate Tribunal, which were not directly related to the petitioner, could not be deemed as definite information necessary for initiating reassessment after an extensive period. This ruling emphasizes the legal requirement for clear and substantial evidence before tax authorities can act, particularly in cases involving historical assessments. The decision serves as a precedent for ensuring that taxpayers are not subjected to arbitrary or unjustified tax reassessments based on vague or indirect information. Legal practitioners should note the implications of this case for future reassessment procedures, ensuring compliance with statutory requirements for valid information. The case highlights the importance of due process in tax law and the protection of taxpayer rights against prolonged and unfounded reassessment actions. |
| Court |
Bombay High Court
|
| Entities Involved |
Income-tax Appellate Tribunal,
Mill Stores Trading Co. of (I) Pvt. Ltd.,
J.B. Panchal, ITO
|
| Judges |
Pendse, J.
|
| Lawyers |
V. H. Patil,
S.J. Mehta,
R.J. Joshi
|
| Petitioners |
Mill Stores Trading Co. of (I) Pvt. Ltd.
|
| Respondents |
J.B. Panchal, ITO
|
| Citations |
1981 SLD 1892,
(1981) 131 ITR 470
|
| Other Citations |
Not available
|
| Laws Involved |
Excess Profits Tax Act, 1940
|
| Sections |
15,
10(a)
|