| Case ID |
39a6f6c3-89d5-44e2-a1cd-9122ce2c1719 |
| Body |
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| Case Number |
Civil Appeals Nos. 34 and 50 of 1981 |
| Decision Date |
Jan 19, 1982 |
| Hearing Date |
|
| Decision |
The Supreme Court of Bangladesh ruled that the Income Tax authorities had valid grounds for rejecting the trading accounts of the respective assessees and resorting to the power conferred under section 13 of the Income-tax Act. The determination of the rate of gross profit in regards to the specific business or trade was deemed to be a question of fact, which could not be a ground for reference under section 66(1) of the Income-tax Act. The court set aside the High Court Division's decision and allowed the appeals without any order as to costs. Furthermore, it was emphasized that the mere low profit or defects in the accounting books could not solely justify the rejection of the accounts, highlighting the importance of a clear finding by the assessing officer that incomes, profits, and gains could not be properly deduced from the maintained accounts. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, 1922, focusing on the powers of Income Tax authorities in rejecting trading accounts and determining gross profit rates. The Supreme Court analyzed whether the grounds for rejecting accounts were established and whether the determination of gross profit was a question of fact. The judgment underscores the necessity for assessing officers to provide clear reasons based on material evidence when rejecting accounts. The ruling affirms the importance of adhering to the provisions of the Income Tax Act, ensuring that proper accounting practices are followed. The case highlights critical aspects of taxation law, making it essential reading for tax practitioners and legal professionals. Key terms include 'Income Tax Act', 'gross profit', 'trading accounts', and 'assessment'. This case serves as a pivotal reference for understanding the legal framework governing income taxation in Bangladesh. |
| Court |
Supreme Court of Bangladesh
|
| Entities Involved |
Not available
|
| Judges |
F. K. M.A. Munim,
Rauhul Islam,
Badrul Haider Chowdhury,
Shahabuddin Ahmed
|
| Lawyers |
Habibul Islam Bhulyan, Advocate Supreme Court instructed by Md. Sajjadul Haq, Advocate-on-Record for Appellant (in C. A. No. 34 of 1981),
A. M Mahmudur Rahman, Advocate Supreme Court instructed by Md. Sajjadul Haq, Advocate-on-Record for Appellant (in C. A. No. 50 of 1981),
S. R. Pal, Senior Advocate Supreme Court (S. C. Das, Advocate Supreme Court with him) instructed by Aminul Haq, Advocate-on-Record for Respondent (in C. A. No. 34 of 1981),
C. R. Ali, Advocate Supreme Court instructed by Abu Backkar, Advocate-on-Record for Respondent (in C. A. No. 50 of 1981)
|
| Petitioners |
Commissioner of Income Tax, A-Range, Chittagong
|
| Respondents |
Harendra Kumar Sii
|
| Citations |
1983 SLD 16,
1983 PTD 87
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
13,
66(1)
|