| Case ID |
4399bcfd-8d92-4ff4-9958-dc670887a12b |
| Body |
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| Case Number |
MISC. APPLICATION No. 263 OF 1964 |
| Decision Date |
Feb 01, 1967 |
| Hearing Date |
Jan 31, 1967 |
| Decision |
The court held that the Income Tax Officer (ITO) had jurisdiction to rectify the assessment under section 35 of the Indian Income-tax Act, 1922, to include a deemed dividend that was originally omitted due to oversight. The court emphasized that if the ITO had prior information regarding a company's assessment under section 23A and failed to include it in the original assessment of the shareholder, he could rectify this mistake as it was apparent from the record. The writ petition filed by the petitioner challenging the jurisdiction of the ITO was dismissed due to unexplained delay in filing the petition. The court concluded that the rectification orders made by the ITO were valid and within his jurisdiction. |
| Summary |
The case revolves around the rectification of income tax assessments under the Indian Income-tax Act, specifically sections 35 and 23A. The petitioner, P.C. Doshi, contested the inclusion of a deemed dividend in his assessment after the ITO recognized an oversight. The court clarified that the ITO could rectify the assessment if he had prior knowledge of the company's assessment under section 23A. The decision emphasizes the importance of timely actions in tax assessments and the necessity for taxpayers to promptly address any perceived errors in their assessments. This case is significant for understanding the procedural aspects of tax rectification and the responsibilities of the ITO in ensuring accurate assessments. The ruling reinforces the principle that oversight by tax authorities can be corrected through established legal channels, thereby upholding the integrity of the tax assessment process. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
S.P. KOTVAL, C.J.,
V.S. DESAI, J.
|
| Lawyers |
Y.P. Trivedi,
S.P. Mehta,
G.N. Joshi,
R.J. Joshi
|
| Petitioners |
P.C. Doshi
|
| Respondents |
7th Income Tax Officer
|
| Citations |
1967 SLD 436,
(1967) 65 ITR 187
|
| Other Citations |
Estate & Trust Agencies Ltd. v. Singapore Improvement Trust AIR 1937 PC 265,
Madhavlal Sindhoo v. V.R. Idukkar [1956] 30 ITR 332 (Bom.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
153,
35,
23A
|