| Case ID |
41f9a251-8300-42d4-b7b0-927eec06dbbc |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 502 TO 505 OF 1960 |
| Decision Date |
Feb 27, 1962 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeals, affirming the High Court's decision in favor of the assessee. The Court held that only registered shareholders are entitled to the benefit of tax credits under the Income-tax Act. It ruled that the Income-tax Officer had erroneously treated the registered firm as the owner of shares, thus impacting the distribution of dividend income incorrectly. The Court further clarified that the rectification process cannot correct initial errors but can only address apparent mistakes from records. The appeal was dismissed without costs. |
| Summary |
In the Supreme Court case concerning the Income Tax Officer's assessment against Arvind N. Mafatlal and others, the Court focused on the interpretation of tax credits and dividend distribution under the Income-tax Act, 1961 and the Indian Income-tax Act, 1922. The case revolved around the legal status of shareholders and the rightful entitlement to tax credits. The Court reaffirmed that only registered shareholders are eligible for credit on tax paid by companies. The judgment emphasized the limitations of the Income-tax Officer's rectification powers, stating that initial errors cannot be rectified under the guise of adjustments. The ruling highlighted the importance of correct assessment procedures and the rights of partners in a registered firm regarding their shares and tax liabilities. This case serves as a significant reference in tax law, particularly in understanding shareholder rights and the procedural integrity of tax assessments. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
B.P. Sinha, C.J.,
K. Subba Rao,
N. Rajagopala Ayyangar,
J.R. Mudholkar,
T.L. Venkatarama Aiyar
|
| Lawyers |
N.D. Karkhanis,
P.D. Menon,
S.T. Desai,
I.N. Shroff
|
| Petitioners |
Not available
|
| Respondents |
Arvind N. Mafatlal
|
| Citations |
1962 SLD 374 = (1962) 45 ITR 271
|
| Other Citations |
Howrah Trading Co. Ltd. v. Commissioner of Income-tax [1959] 36 ITR 215
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
199,
154,
18(5),
16(2),
34,
23A,
35
|