| Case ID |
5594dd38-5303-4054-8e4b-67b92044d93d |
| Body |
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| 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
|