| Case ID |
f7e06128-b466-496b-b8ef-2e8c8b7cd1b2 |
| Body |
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| Case Number |
Income-tax Reference No. 34 of 1979 |
| Decision Date |
Nov 07, 1988 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal upheld the Income-tax Officer's reassessment action under section 147(a) of the Indian Income-tax Act, 1961, concluding that the Officer had sufficient reason to believe that the assessee failed to disclose material facts during the original assessment. The Tribunal's decision was based on subsequent information revealing that the creditor had engaged in hawala activities, which ultimately invalidated the legitimacy of the cash credit claimed by the assessee. This reaffirmed the principle that undisclosed income must be taxed appropriately, emphasizing the importance of transparency in financial disclosures. |
| Summary |
This case revolves around the reassessment of income under section 147 of the Income Tax Act, 1961. The Income-tax Officer discovered a cash credit of Rs. 20,000 in the account books of the assessee, which was later revealed to be a bogus transaction linked to hawala dealings. The Tribunal ruled that the reassessment proceedings were justified, emphasizing the necessity for accurate disclosure of financial information. The case highlights the critical role of the Income-tax Officer in ensuring compliance with tax regulations and the legal ramifications of failing to disclose true financial activities. Key terms include Income Tax Act, reassessment, undisclosed income, and hawala transactions, which are essential for understanding tax compliance and evasion issues in India. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
GAKAL CHAND MITAL,
S.S. SODHI
|
| Lawyers |
B.R. Mahajan,
L.K. Sood
|
| Petitioners |
KASHMIRI LAL,
KASTURI LAL & Co
|
| Respondents |
COMMISSIONER OF Income Tax
|
| Citations |
1991 SLD 70,
1991 PTD 250
|
| Other Citations |
Hazi Amir Muhammad Mir Ahmed v. CIT (1977) 110 ITR 630 (P & H)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
147
|