| Case ID |
f9405361-dddd-42b7-871d-14f366b38544 |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 2016 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court found that the Income Tax Officer (ITO) had issued a notice under section 148 of the Income-tax Act for the trivial sum of Rs. 250, which was not justified. The ITO had reopened the assessment for the assessment year 1974-75 to include interest earned on security deposits that had not been reported by the assessee. The court noted that a similar notice had previously been dropped and criticized the ITO for issuing notices without proper consideration of the circumstances. The court emphasized that the amounts involved were minimal and the reasons for the reassessment were inadequate, leading to the quashing of the notice. |
| Summary |
In the case of Radla Machinery Experts v. Income Tax Officer, the Allahabad High Court examined the legality of a reassessment notice issued under section 148 of the Income-tax Act, 1961. The case revolved around the assessment year 1974-75, where the ITO sought to include a small interest amount of Rs. 250 earned on security deposits held by the assessee. The court noted that the ITO had previously issued a similar notice that was later dropped, raising questions about the justification for reopening the assessment for such a trivial sum. The court highlighted that the ITO's actions appeared mechanical and lacked a thorough examination of relevant facts, ultimately leading to the quashing of the reassessment notice. This case underscores the importance of proper application of legal standards and the necessity for tax authorities to exercise discretion judiciously, particularly in matters involving minimal financial implications. |
| Court |
Allahabad High Court
|
| Entities Involved |
Telephone Department,
UP Electric Supply Company
|
| Judges |
B.P. Jeevan Reddy, C.J.,
R.S. Mehrotra, J.
|
| Lawyers |
Not available
|
| Petitioners |
Radla Machinery Experts
|
| Respondents |
Income Tax Officer
|
| Citations |
1992 SLD 1796,
(1992) 197 ITR 493
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
148
|