| Case ID |
e1148b62-8066-45f1-9831-d7d86a560802 |
| Body |
View case body. Login to View |
| Case Number |
Writ Petition No. 209 of 1991 |
| Decision Date |
Mar 30, 1999 |
| Hearing Date |
|
| Decision |
The court quashed the notice issued under section 148 of the Income Tax Act, 1961, stating that the reassessment proceedings were invalid. It was determined that the income received from M/s. Zuari Agro Chemicals Ltd. was disclosed in the returns and accepted as capital receipts, hence not taxable. The court reiterated that the provisions of the Income Tax Act must be construed strictly, and reopening of assessment requires clear jurisdiction. The ruling emphasized that the Assessing Officer could not change his opinion after accepting the nature of income without new information. |
| Summary |
In the case of Smt. LAXMIBAI A. WAGLE vs. Income Tax Officer, the Bombay High Court addressed the validity of a reassessment notice issued under the Indian Income Tax Act, 1961. The petitioner challenged the notice claiming that the income received from M/s. Zuari Agro Chemicals Ltd. for the sale of water from agricultural land was disclosed in previous assessments and accepted as capital receipts not subject to tax. The court ruled that the notice lacked validity due to the absence of fresh information justifying reassessment. It highlighted the strict construction of tax laws and the necessity for the Assessing Officer to have jurisdiction based on undisclosed facts to reopen cases. The decision reinforces the protection of taxpayers against arbitrary reassessment actions by tax authorities, ensuring that established legal principles are upheld. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
ABDUL HADI,
N. V. BALASUBRAMANIAN
|
| Lawyers |
V.K. Bodke,
S.R. Rivonkar
|
| Petitioners |
Smt. LAXMIBAI A. WAGLE
|
| Respondents |
another,
Income Tax OFFICER
|
| Citations |
2001 SLD 508,
2001 PTD 3296,
(1999) 240 ITR 427
|
| Other Citations |
A.L.A Firm. v. CIT (1991) 189 ITR 285 (SC),
Calcutta Discount Co. Ltd. v. ITO (1961) 41 ITR 191 (SC),
Coca-Cola Export Corporation v. ITO (1998) 231 ITR 200 (SC),
CIT v. Rasiklal C. Nagri (1992) 193 ITR 665 (Guj.),
Indian and Eastern Newspaper Society v. CIT. (1979) 119 ITR 996 (SC),
Maharaj Kumar Kamal Singh v. CIT (1959) 35 ITR 1 (SC)
|
| Laws Involved |
Indian Income Tax Act, 1961
|
| Sections |
147,
148
|