| Case ID |
e20162a9-8d25-4d1f-8771-d1a8e699a391 |
| Body |
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| Case Number |
TAXATION CASE NO. 13 OF 1975 |
| Decision Date |
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| Hearing Date |
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| Decision |
The reassessment of the income for the assessment year 1953-54 was upheld by the court. The court found that the discrepancy in the accounts was legitimate and warranted the reopening of the assessment. The notice issued under section 148 was deemed valid despite not mentioning the petitioner as the 'karta' of the HUF. The court ruled that the demand notice served to one member of the HUF did not invalidate the assessment process, as sufficient compliance with the requirements of the Income Tax Act was observed. |
| Summary |
This case involves the reassessment of income under the Income-Tax Act, 1961, specifically focusing on the provisions of sections 147(a), 148, and 283(1). The petitioner, Manilal Raghavji Kothari, contested the reopening of his assessment for the year 1953-54, arguing that discrepancies in accounts were related to subsequent assessment years. The Patna High Court, led by Justices Uday Sinha and Nazir Ahmad, upheld the reassessment, emphasizing the legitimacy of the discrepancies found during a raid on the petitioner's premises. The court clarified that the notice issued under section 148 was valid, even though it did not explicitly mention the petitioner as the 'karta' of the Hindu Undivided Family (HUF). This case highlights the importance of maintaining accurate financial records and the implications of discrepancies in tax assessments. It serves as a significant reference for similar income tax reassessment cases, reiterating the procedural requirements for valid notices and the responsibilities of taxpayers in maintaining transparency in their financial dealings. |
| Court |
Patna High Court
|
| Entities Involved |
Not available
|
| Judges |
UDAY SINHA,
NAZIR AHMAD
|
| Lawyers |
Rameshwar Prasad,
B.P. Gupta,
B.P. Rajgarhia,
S.K. Saran
|
| Petitioners |
Manilal Raghavji Kothari
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1985 SLD 1447 = (1985) 156 ITR 661
|
| Other Citations |
Madanlal Agarwal v. CIT [1983] 144 ITR 745 (All.)
|
| Laws Involved |
Income-Tax Act, 1961
|
| Sections |
147(a),
148,
283(1)
|