| Case ID |
3cc78350-c067-4a4d-b948-ba6bc9047112 |
| Body |
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| Case Number |
Income-tax Reference No.7 of 1962 |
| Decision Date |
Sep 24, 1963 |
| Hearing Date |
|
| Decision |
The court held that the Income Tax Officer was justified in applying the proviso to section 13 of the Income-tax Act due to the failure of the assessee to maintain a proper stock register and other essential records. The absence of such documentation was considered a significant defect that led to the conclusion that the profits declared could not be accurately determined. The decision emphasized that while accounts must be regularly maintained, the Income Tax Officer retains the authority to question the accuracy of profits reported if there are substantial discrepancies. The case highlighted the importance of maintaining comprehensive records in business operations to ensure compliance with tax obligations. |
| Summary |
In the case of Rana ABDUL SATTAR vs PASSCO, the Punjab High Court tackled significant issues relating to income tax assessments under the Income Tax Act of 1922, specifically section 13. The case revolved around the failure of the Punjab Trading Co. Ltd. to maintain adequate records, including a stock register, which ultimately led to the rejection of their account declarations by the Income Tax Officer. The court emphasized that the Income Tax Officer has the discretion to reject accounts if they do not accurately reflect true income, profits, and gains. This case serves as a critical reminder for businesses to maintain robust accounting practices to avoid disputes with tax authorities and ensure compliance with legal requirements. The ruling has implications for how businesses manage their financial records and the standards of proof required during tax assessments. Key terms such as 'Income Tax Act', 'section 13', 'tax compliance', and 'accounting practices' are crucial for understanding the legal landscape surrounding this case. |
| Court |
Punjab High Court
|
| Entities Involved |
Punjab Trading Co. Ltd.,
Nabha,
Bhatinda,
Patiala
|
| Judges |
D. FALSHAW, C.J.,
A.N GROVER, J
|
| Lawyers |
C. L. Agarwal,
S. S. Mahajan,
D.N. Awasthy,
H. R. Mahajan
|
| Petitioners |
Rana ABDUL SATTAR
|
| Respondents |
PASSCO
|
| Citations |
1995 SLD 8,
1995 PTD 170,
(1964) 53 ITR 335
|
| Other Citations |
Commissioner of Income-tax v. Sarangpur Cotton Manufacturing Co. Ltd. (1938) 6 ITR 36,
S.N. Namasivayam Chettiar v. Commissioner of Income-tax (1960) 38 ITR 579,
Pioneer Sports Ltd. v. Commissioner of Income-tax (1934) 2 ITR 305,
Pandit Bros. v. Commissioner of Income-tax (1954) 26 ITR 159,
S. Veeriah Reddiar v. Commissioner of Income-tax (1960) 38 ITR 152,
Commissioner of Income-tax v. McMillan and Co (1958) 33 ITR 182
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
13
|