Legal Case Summary

Case Details
Case ID 4309fb82-fc7f-4298-9c65-d67d3e54508d
Body View case body.
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