| Case ID |
5cb1c5a5-7b3b-44fe-afde-11732dd414ed |
| Body |
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| Case Number |
CIVIL APPEAL No. 1775 OF 1969 |
| Decision Date |
Aug 11, 1970 |
| Hearing Date |
|
| Decision |
The Supreme Court ruled in favor of the assessee, stating that the addition made by the Income Tax Officer for the assessment year 1957-58 was not justified. The court found that there was insufficient evidence to establish that any allowance or deduction had been granted concerning the trading liability for the assessment year 1950-51. The court emphasized that the provisions of section 10(2A) of the Income Tax Act, 1922, apply only when a deduction has been made in a previous assessment year, and since this condition was not satisfied, the amount in question was not assessable in the relevant assessment year. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, specifically regarding the remission of trading liabilities and how they are assessed in subsequent years. The Supreme Court determined that the Income Tax Officer's assessment lacked proper justification, as there was no conclusive evidence that any part of the bonus claimed by the employees had been previously deducted. This case highlights the importance of clear documentation and the necessity for the tax authorities to provide substantial proof when assessing income based on past liabilities. Keywords like 'Income Tax Act', 'trading liability', and 'deduction' are crucial for understanding the nuances of tax law in India. |
| Court |
Supreme Court of India
|
| Entities Involved |
Commissioner of Income Tax,
Tirunelveli Motor Bus Service Co. (P.) Ltd.
|
| Judges |
J.C. SHAH,
K.S. HEGDE,
A.N. GROVER
|
| Lawyers |
S. Swaminathan,
R. Gopalakrishnan,
S.C. Manchanda,
R.N. Sachthey,
B.D. Sharma
|
| Petitioners |
Tirunelveli Motor Bus Service Co. (P.) Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1970 SLD 708,
(1970) 78 ITR 55,
(1971) 24 TAX 120
|
| Other Citations |
CIT v. Tirunelveli Motor Bus Service Co. (P.) Ltd. [1964] 52 ITR 563
|
| Laws Involved |
Income Tax Act, 1961,
Income Tax Act, 1922
|
| Sections |
41(1),
10(2A)
|