| Case ID |
d887a88d-5ce2-41c9-b4cd-1a5cbae2d201 |
| Body |
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| Case Number |
Civil Appeals Nos. 1064, 1065, 1066 and 1067 of 19 |
| Decision Date |
Mar 20, 1997 |
| Hearing Date |
|
| Decision |
The Supreme Court dismissed the appeal filed by the Revenue against the judgment of the Madras High Court. The court held that the assessee-firm, Dalmia Magnesite Corporation, was dissolved on January 1, 1964, as a result of a scheme of amalgamation approved by the Madras High Court. It was determined that there was no mistake apparent from the record regarding the grant of development rebate, and that the Income-tax Officer lacked jurisdiction to withdraw the rebate under section 155(5) of the Income Tax Act, 1961. The court emphasized that the specific provisions for rectification in section 155(5) were applicable, and the general provisions of section 154 were not relevant in this case. Thus, the decision of the High Court was affirmed. |
| Summary |
The case revolves around the dissolution of the Dalmia Magnesite Corporation and the implications for tax rebates under the Income Tax Act. The Supreme Court examined the legal aspects surrounding the dissolution due to a scheme of amalgamation, which led to questions regarding the jurisdiction of the Income-tax Officer in withdrawing previously granted development rebates. The court concluded that the Income-tax Officer's actions were not supported by the law, particularly section 155(5), which outlines the specific circumstances under which rectification can occur. The case highlights the importance of understanding the legal frameworks governing partnerships and tax assessments, especially in complex situations involving amalgamations and reconstitutions of firms. Key trending keywords include 'Income Tax Act', 'development rebate', 'partnership dissolution', and 'amalgamation scheme', which are crucial for SEO optimization and can help in ranking well in legal discussions and tax law searches. |
| Court |
Supreme Court of India
|
| Entities Involved |
Dalmia Magnesite Corporation
|
| Judges |
S. C. Agrawal,
G. B. Pattanayak
|
| Lawyers |
V. Gaurishankar,
S. Rajappa,
C. Radhakrishna,
B.K. Prasad,
Hari Harlal,
R. K. Maheshwari
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
DALMIA MAGNESITE CORPORATION
|
| Citations |
1999 SLD 459,
1999 PTD 3154,
(1999) 236 ITR 46
|
| Other Citations |
Additional CIT v. Dalmia Magnesite Corporation (1979) 117 ITR 930
|
| Laws Involved |
Income Tax Act, 1922,
Indian Income Tax Act, 1961
|
| Sections |
154,
155(5),
154,
155(5)
|