| Case ID |
43e9ecc4-6b44-4df1-a8da-40fd2dc03abd |
| Body |
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| Case Number |
CIVIL MISCELLANEOUS WRIT No. 494 OF 1975 |
| Decision Date |
Jul 17, 1975 |
| Hearing Date |
Jul 17, 1975 |
| Decision |
The High Court held that the assessment order passed by the Income Tax Officer was void as it violated the principles of natural justice. The court emphasized that the assessee was denied a reasonable opportunity to present its case, which is a fundamental right in judicial proceedings. The court stated that the conditions imposed by the Income Tax Officer regarding the change of the previous year were invalid and could not be enforced. The court quashed the assessment order and directed the Income Tax Officer to make a fresh assessment in accordance with the law, allowing for the change in the accounting year as requested by the petitioner. |
| Summary |
This case revolves around J.K. Synthetics Ltd. challenging an assessment order under the Income-tax Act, 1961. The company sought to change its accounting year from June 30 to December 31, which was initially granted by the Income Tax Officer (ITO) under certain conditions. However, the successor ITO denied this change, claiming the company did not comply with the imposed conditions. The High Court found that the ITO's actions violated the principles of natural justice by not allowing sufficient time for the company to respond to the allegations. The court ruled that the assessment order was void due to these violations and instructed the ITO to reassess the case considering the company's request. This case highlights the critical importance of fair procedures in tax assessments and the validity of conditions imposed by tax authorities. |
| Court |
Allahabad High Court
|
| Entities Involved |
Income Tax Department,
J.K. Synthetics Ltd.
|
| Judges |
R.L. Gulati,
C.S.P. Singh
|
| Lawyers |
S.P. Mehta,
V.B. Upadhya,
V.B. Singh,
S.N. Kacker
|
| Petitioners |
J.K. Synthetics Ltd.
|
| Respondents |
O.S. Bajpai, Income Tax Officer
|
| Citations |
1976 SLD 492 = (1976) 105 ITR 864
|
| Other Citations |
CIT v. Ranchhoddas Karsondas [1959] 36 ITR 569 (SC),
Kedarnath Jute Manufacturing Co. v. CIT [1971] 82 ITR 363 (SC),
CIT v. Poonam Chand Trilok Chand [1976] 105 ITR 618 (All),
S.B. Adityan v. First, ITO [1964] 52 ITR 453 (Mad.),
CIT v. Lady Kanchanbai [1962] 44 ITR 242 (MP),
Esthuri Aswathiah v. CIT [1966] 60 ITR 411 (SC),
Girdharlal Ghelabhai v. CIT [1964] 53 ITR 23 (Guj.),
Girja Dut Singh v. Gangotri Dut Singh AIR 1948 Oudh 88,
Nirlon Synthetics v. R.K. Adim (CMW No. 491 of 1964, dated 30-4-1970),
Rhodesia Metals Ltd. v. Commr. of Taxes [1941] 9 ITR (Supp.) 45 (PC),
Satyanarayana Prosad v. Diana Engineering Co. AIR 1952 Cal. 124,
Sobhag Mal Lodha v. CIT [1967] 63 ITR 424 (All),
Usher's Wiltshire Brewery Ltd. v. Bruce [1914] 6 TC 399, 429 (HL)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
143,
3,
41(1),
35
|