Case ID |
4309fb82-fc7f-4298-9c65-d67d3e54508d |
Body |
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Case Number |
CIVIL APPEAL No. 587 OF 1964 |
Decision Date |
Oct 27, 1965 |
Hearing Date |
|
Decision |
The Supreme Court accepted the appeal and directed the Appellate Tribunal to state the case and refer it to the High Court. The court found that there were arguable questions of law that warranted further examination, particularly concerning the interpretation of 'actual delivery' under the Indian Income-tax Act. The court observed that the High Court should not have dismissed the application as the issues raised were significant in determining the nature of the transactions in question. Consequently, the court's ruling emphasized the necessity of clarity in the definitions within the Income-tax Act. |
Summary |
This case revolves around the interpretation of speculative transactions under the Indian Income-tax Act, particularly concerning the claim of losses by Shri Govind Commercial Co. The Income-tax Officer disallowed the loss, citing its speculative nature. The Appellate Assistant Commissioner upheld this decision, leading to an appeal to the Appellate Tribunal, which ruled in favor of the assessee. The Supreme Court ultimately ruled that the questions posed by the Commissioner of Income-tax were significant and required further judicial examination. This case highlights the complexities of tax law and the importance of precise legal definitions in determining tax liabilities. The ruling underscores the necessity for the judiciary to clarify ambiguities surrounding tax regulations, particularly in the context of speculative transactions, which are vital for financial accountability and compliance under the law. |
Court |
Supreme Court of India
|
Entities Involved |
Income-tax Officer,
Appellate Tribunal,
Appellate Assistant Commissioner,
M/s. Shri Govind Commercial Co. (P.) Ltd.,
High Court of Rajasthan
|
Judges |
K. SUBBA RAO,
J.C. SHAH,
S.M. SIKRI
|
Lawyers |
S.V. Gupte,
N.D. Karkhanis,
R.H. Dhebar,
R.N. Sachthey,
A.V. Viswanatha Sastri,
R. Gopalakrishnan
|
Petitioners |
Commissioner of INCOME TAX
|
Respondents |
Shri Govind Commercial Co. (P.) Ltd
|
Citations |
1966 SLD 225,
(1966) 61 ITR 169
|
Other Citations |
Duni Chaad Rataria v. Bahuwalka Brothers Ltd. [1955] 1 SCR 1071,
D.M Wadhwana v. CIT [1966] 61 ITR 154
|
Laws Involved |
Indian Income-tax Act, 1922
|
Sections |
24(1),
66
|