Legal Case Summary

Case Details
Case ID 5594dd38-5303-4054-8e4b-67b92044d93d
Body View case body.
Case Number D-2741 of 1987
Decision Date Jan 01, 1987
Hearing Date Jan 01, 1987
Decision The Tribunal upheld that the rectification of the assessment order under section 154 of the Income-tax Act was not valid due to the absence of notice to the assessee regarding the withdrawal of the rebate on undistributed profits. The Tribunal determined that the complexities involved in calculating the excess refund made it a controversial issue, and thus, the rectification process violated principles of natural justice. Therefore, the appeal of the revenue was dismissed, affirming the AAC's decision to cancel the order of rectification.
Summary This case revolves around the rectification of a tax assessment under the Income-tax Act, 1961, specifically focusing on section 154 concerning the apparent mistakes from the record. The court found that the assessing officer (ITO) failed to notify the assessee about the proposed rectification, which involved the withdrawal of the rebate on undistributed profits. The complexities of the calculations rendered the rectification invalid. The case highlights the importance of adherence to procedural fairness and the necessity for tax authorities to provide notice to taxpayers before making amendments that could affect their assessments. Keywords: Income Tax, Rectification, Legal Proceedings, Tribunal, Rebate Withdrawal, Tax Assessment.
Court Calcutta High Court
Entities Involved Not available
Judges Dipak Kumar Sen, Monjula Bose
Lawyers B.K. Bagchi, S.K. Chakraborty, D. Pal, Miss M. Seal
Petitioners Commissioner of Income Tax
Respondents Turner Morrison & Co. Ltd.
Citations 1987 SLD 3214, (1987) 166 ITR 57
Other Citations VR.C.RM. Adaikappa Chettiar v. CIT [1970] 78 ITR 285 (Mad.), CIT v. Shell Petroleum Co. Ltd. [IT Reference No. 420 of 1975], Imperial Chemical Industries Ltd. v. CIT [1979] 116 ITR 516 (Cal.)
Laws Involved Income-tax Act, 1961
Sections 154, 297