| Case ID |
ffc39c8a-3ded-4554-ac16-773888cfb5ab |
| Body |
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| Case Number |
WRIT PETITION No. 6868 OF 1975 |
| Decision Date |
Dec 02, 1977 |
| Hearing Date |
Dec 02, 1977 |
| Decision |
The Madras High Court allowed the writ petition, directing the Commissioner of Income-tax to take the revision on file and dispose of it on merits. The court held that filing an ineffective or incompetent appeal before the Appellate Assistant Commissioner or Tribunal does not deprive an assessee of the right of revision under section 264 of the Income-tax Act, 1961. The court emphasized that the revision filed by the petitioner was maintainable and should be addressed on its merits. |
| Summary |
The case involves the interpretation of section 264 of the Income-tax Act, 1961, concerning the right of revision in income tax assessments. The petitioner, Chiranjilal Daga, failed to file a tax return for the assessment year 1970-71, claiming no taxable income. The Income-tax Officer completed an ex-parte assessment under section 144, estimating an income of Rs. 40,000. The petitioner appealed to the Appellate Assistant Commissioner, but the appeal was rejected as time-barred. A subsequent appeal to the Tribunal also failed due to the same reason. The petitioner then sought revision under section 264, which was denied by the Commissioner on the grounds of prior appeals. However, the Madras High Court found that an ineffective or incompetent appeal does not bar revision under section 264, citing several precedents. The court ruled in favor of the petitioner, allowing the revision to proceed on its merits. This decision clarifies the applicability of section 264 and underscores the importance of effective legal recourse in tax matters. |
| Court |
Madras High Court
|
| Entities Involved |
Commissioner of Income Tax,
Appellate Assistant Commissioner,
Income-tax Tribunal
|
| Judges |
Ramanujam,
Mohan
|
| Lawyers |
K. Mani,
A.N. Rangaswami
|
| Petitioners |
Chiranjilal Daga
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1978 SLD 579,
113 ITR 363
|
| Other Citations |
Sreenivasalu Naidu v. Commissioner of Income-tax [1948] 16 ITR 341 (Mad),
Erode Yarn Stores v. State of Madras [1963] 14 STC 724 (Mad),
Swadeshi Cotton Mills Co. Ltd. v. Commissioner of Income-tax [1975] 101 ITR 621,
Krishna Flour Mills Ltd. v. CIT [1965] 55 ITR 259 (Mys),
Mercantile Tobacco Corporation v. CIT [1965] 57 ITR 483 (AP),
C. Gnanasundara Nayagar v. CIT [1961] 41 ITR 375 (Mad)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
264,
144
|