| Case ID |
43df9e42-35b0-45f1-9939-ee34bde5d64e |
| Body |
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| Case Number |
IT REFERENCE No. 49 OF 1970 |
| Decision Date |
Jun 21, 1972 |
| Hearing Date |
|
| Decision |
The court held that assessments made under section 147 are not considered 'regular assessments' as defined in section 2(40) of the Income-tax Act, 1961. Therefore, the provisions of section 273 cannot apply to reassessments made under section 147. The court emphasized that the expression 'regular assessment' refers specifically to assessments made under section 143 or section 144. This ruling clarified the applicability of penalty provisions in the context of reassessments, establishing that the Income-tax Officer's initiation of penalty proceedings under section 273(b) was invalid in this case. The decision favored the assessee, reinforcing the distinction between regular assessments and those resulting from reassessment procedures. |
| Summary |
In this significant ruling by the Kerala High Court, the court addressed the interpretation of the Income-tax Act, 1961, specifically concerning the application of penalty provisions under section 273 in the context of reassessments under section 147. The court concluded that assessments made after invoking section 147 do not qualify as 'regular assessments' as defined in section 2(40). This determination was crucial in deciding the validity of penalty proceedings initiated by the Income-tax Officer against the assessee. The case involved the Gates Foam & Rubber Co. and the Commissioner of Income Tax, with the court's decision favoring the assessee. This ruling has implications for tax law practitioners and firms, highlighting the importance of understanding the nuances of assessment classifications within the Income-tax framework. Keywords such as 'Income-tax Act', 'penalty provisions', 'reassessment', and 'regular assessment' are essential for SEO optimization, ensuring that this case remains relevant in discussions surrounding tax law and compliance. |
| Court |
Kerala High Court
|
| Entities Involved |
Not available
|
| Judges |
P. Govindan Nair,
K. Sadasivan
|
| Lawyers |
C.K. Viswanatha Iyer,
P.A. Francis,
P.K.R. Menon
|
| Petitioners |
Gates Foam & Rubber Co.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1973 SLD 357,
(1973) 90 ITR 422
|
| Other Citations |
Gopalaswami Mudaliar v. ITO, Karaikudi [1961] 42 ITR 29 (Mad.),
Natarajan Chettiar v. Fifth Addl. ITO, Coimbatore [1963] 49 ITR 322 (Mad.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
273,
2(40),
212(3),
147
|