Income Tax Act, 1961—Sections 147, 144, 148, 142—Challenge to Assessment Order—Writ Petition vs. Alternative Remedy—Where the petitioner failed to adequately engage with the Assessing Officer, sought adjournment late in the limitation period, and submitted inconclusive medical evidence, the High Court should refrain from entertaining writ jurisdiction on disputed factual matters. The availability of an appeal provides an adequate remedy, making writ relief inappropriate. (Paras 6.10, 8.5, 8.9, 9) Constitution of India, 1950—Articles 226, 227—Exercise of Writ Jurisdiction—Principles of Natural Justice—Alleged denial of adjournment on grounds of bereavement and illness is not automatically a breach of natural justice where the petitioner’s own documents show fitness prior to knowledge...
Constitution of India, 1950 Article 226—An Assessment Order dated 27 March 2024 issued under Section 144 read with Section 144B of the Income Tax Act, 1961, the petitioner contended that the Show Cause Notice issued on 22 March 2024, provided less than 24 hours for response, violating principles of natural justice—The petitioner argued that the shortened compliance period was insufficient and contrary to the Standard Operating Procedure (SOP) which mandates a seven-day response period—The court found that the assessing officer’s actions breached the SOP and natural justice principles, as the provided response time was inadequate—Consequently, the court quashed the Assessment Order, remanding the proceedings for a fresh assessment with proper adherence to the SOP—The petitioner was granted seven days to ...
Workmen’s Compensation Act, 1923—Sections 30(1)(a)—The deceased truck driver died in an accident while checking his truck's tire—The insurance company contested the claim, arguing lack of notice, disputing the employer-employee relationship, and challenging the wage assessment—The court held that the insurance company was properly served notice and that the employer-employee relationship was established—The wage assessment was deemed reasonable based on evidence—Consequently, the court dismissed the insurance company's appeal but modified the interest rate on the compensation to 12% per annum from the date of the accident, aligning with the welfare nature of the Act—The court's decision emphasized adherence to the Act's intent to provide relief and compensation, affirming the...
Income Tax Act, 1961—Section 153C—For AYs 2014-15 to 2016-17 based on searches conducted in April 2019, the court deliberated on the issue of limitation—The petitioner argued that assessments for the specified years were time-barred and the AO failed to invoke Section 153A for the extended period—The court, however, found the initiation of proceedings justified, supported by gathered material, and deemed the Fourth Proviso to Section 153A satisfied, allowing assessment beyond six years—Analyzing Sections 153A and 153C, the court affirmed the AO's jurisdiction for the entire block period of ten assessment years, concluding that the proceedings were not barred by limitation. ...
Assessment—Karnataka Value Added Tax Act, 2003—Section 70—Karnataka value Added Tax Rules, 2005—Rules 27 and 29—Criminal Revision Preferred by revenue—State—Dismissed by High Court—ITC claimed by purchasing dealer allowed—Subject matter of present appeal—Determination of—In absence of any further cogent material like furnishing name and addressee of selling dealer, details of vehicle—Which has delivered goods, payment of freight charges, acknowledgement of taking delivery of goods, take invoices and payment particulars etc. and actual physical movement of goods by producing cogent materials—Assessing officer was absolutely justified in denying ITC—Which was confirmed by First Appellate Authority—High Court have materially erred in allowing ITC—...
Establishment of Medical College Regulations, 1999—Regulation 8(3)(1), Regulation 8(3)(1)(b)—Medical Council of India (MCI) is challenging a Kerala High Court decision that quashed the Government of India's refusal to renew recognition for certain medical colleges—The High Court ordered immediate student admissions and inspections for deficiencies rectification—MCI argued that time constraints and gross deficiencies made renewal inappropriate—The High Court relied on prior rulings emphasizing compliance assessment in renewals—The Supreme Court scrutinized the deficiencies, emphasizing Regulation 8(3) of the Establishment of Medical College Regulations, which determines whether colleges can be given opportunities for compliance within the same academic year based on the severity of deficiencies. ...
Indian Medical Council Act, 1956—Section 10A—detailed description of a legal case involving the establishment and permissions of a medical college in India—The case outlines the series of events and decisions made by various authorities, including the Oversight Committee, the Medical Council of India (MCI), and the Government of India, regarding the approval and renewal of permission for the college to admit students for its MBBS program—The central issue in the case seems to revolve around the gross deficiencies found in the college's infrastructure, faculty, clinical material, and other aspects during inspections and assessments carried out by the MCI—Regulation 8(3)(1)(a) of the Establishment of Medical College Regulations, 1999, appears to be a key point of contention, as it specifies conditions under...
(A) Special Marriage Act, 1954, Secs.36, 37 - Claim of maintenance under - Probability of - peculiar case in which both the husband and wife being highly qualified, well off and having their own independent sources of income - Provisions of interim maintenance are not made for equalising their income but to ensure that either spouse does not suffer because of paucity of the income in the course of the proceeding - Where, both the husband and wife are earning and having good income, merely because there is some difference in the respective income earned by them, an order of maintenance - Not justified - Especially, if one has regard to the provision of section 36 of the Special Marriage Act, 1954 - Which provides that only when it appears to the Court that wife has no independent income sufficient for her support and necessar...
Constitution of India, 1950—Article 133—Income Tax Act, 1961—Section 148—Reopening of the assessment—The High Courts in all the cases have dismissed the writ petitions preferred by the appellant of assessee herein challenging the issuance of notice under Section 148 of the Income Tax Act, 1961 and the reasons which were recorded by the Assessing Officer for reopening the assessment—The Court has not made any observations on the merits of the cases, i.e. the contentions which are raised by the appellant challenging the move of the Income Tax Authorities to re-open the assessment—Appeals are allowed ...
Kerala General Sales Tax Act, 1963—Section 5(2)—Kerala General Sales Tax Rules, 1963—Rule 32(13B)—Assessment—company and its subsidiary company, both having the right to use the same brand name, it is essential to consider whether the sale between them is conducted at a realistic price and whether the marketing company (the appellant-Company) charges only standard industry margins—If these conditions are met, the first sale, even when the seller also holds the brand name and has the freedom to market products under that brand, should not be disregarded—However, in this case, the evidence presented shows that the margin charged by the appellant-Company during subsequent sales of the product is unusually high—This suggests that the intercompany sale between these affiliated companies, under th...
Karnataka Sales Tax Act, 1957—Section 24(1)—Finalization of assessment—Assessing authority initially allowed an exemption on polished granite stone for certain assessment years—However, the authority later reopened the assessment—The Supreme Court clarified that there is a distinction between polished granite stone or slabs and tiles, and they may fall under different tax categories—The Court emphasized that a proper inquiry and examination of the process involved are necessary to determine the correct tax treatment—Since such an inquiry was lacking in this case, the Court set aside the orders of the High Court and other authorities and remitted the matter back to the Assessing Officer for reevaluation—As a result, the appeal was allowed. ...
Interpretation—Designated Authority should not treat any information as confidential unless a claim of confidentiality has been made by one of the parties providing the information. If it is not possible to accept a claim of confidentiality and the concerned party still does not agree to make it public, the information should be ignored and treated as non-existent. ...
Inter State Water Disputes Act, 1956—Section 6, Section 6A—Cauvery Water Disputes—Karnataka and Tamil Nadu over water resources—Both states have agreed to resolve the issue through discussions facilitated by the Union of India—They have nominated their competent authorities from the executive branch to engage in these discussions—As part of the resolution process, a team comprising these authorities will visit the disputed area to assess the actual ground situation—They are expected to submit a report on their findings to the court by October 17, 2016—It is also emphasized that this report must be shared with the legal representatives of both parties prior to the specified date—Additionally, as an interim measure, the court has directed the State of Karnataka to release 2000 cusecs of ...
Central Sales Tax Act, 1956—Section 8(5)—Benefit of partial exemption—The issue has been examined, and it has been clarified that a dealer can choose to benefit from either of two notifications in any given financial year—While circulars and instructions issued by the Board are binding on authorities under their respective statutes, when a principle is laid down by the Court, it is appropriate for the Court to direct that the circular should not be followed, as circulars are not binding on the Court—In this case, the notification is not ambiguous and does not admit to two different interpretations—The language used is plain and clear—As a result, the appeal has been dismissed. ...
Income Tax Act, 1961—Section 44AD—Entitlement for depreciation—The appellant-assessee's income for the assessment year 2009-2010 exceeded Rs. 40,00,000, making the proviso to Section 44AD of the Income Tax Act, 1961 applicable—Consequently, the bar to entitlement for depreciation under Section 44A(2) of the Act does not apply, and granting depreciation under Section 32 of the Act becomes mandatory—The Court set aside the High Court's order and the assessment order, directing that necessary steps be taken in accordance with the law for the assessment year 2009-2010. ...
Completion of the assessment—Sales tax under the Punjab General Sales Tax Act, 1948, the respondent/assessee had filed quarterly returns as required by Section 11(3) of the Act—This section specifies a time limit of three years from the end of the year for completing the assessment—An assessment order was issued within the time limit provided by the amended Section 11-CC—The High Court had previously ruled that this assessment was validly made within the period of limitation—However, the latest decision has overturned the High Court's ruling, stating that it was not valid—Therefore, the appeal has been allowed, and the previous judgment of the High Court holding the assessment to be within the limitation period is deemed unsustainable. ...
Income Tax Act, 1961—Section 153—Order of assessment—Commissioner of Income Tax, Gujarat Central, Ahmedabad, the appellant, is aggrieved by the judgment of the High Court of Gujarat—The High Court had dismissed the appeal of the Revenue, affirming the order of the Income Tax Appellate Tribunal, which held that the assessment order passed by the Assessing Officer for Assessment Year 1981-82 was time-barred—The court found that no such power was exercised, and no function of an Income Tax Officer (ITO) was performed by the Income Tax Appellate Tribunal—The High Court of Gujarat, in dismissing the Revenue's appeal, failed to consider a judgment of a Co-ordinate Bench of the High Court—As a result, the appeal has been allowed. ...
Income Tax Act, 1961—Section 156BE(2)—Block assessment—High Court quashed the direction under Section 142(2A) of the Income Tax Act, 1961, and directed the exclusion of the period between 24th August, 2000 to 15th December, 2006 in counting the period of limitation for passing the block assessment order—The search was finally concluded on 5th August, 1998, and the appellants had not challenged the validity of searches on subsequent dates—The Court dismissed the appeal, upholding the exclusion of the mentioned period in calculating the limitation period. ...
Income Tax Act, 1961—Section 244(1A)—Refund of the amount—Assessment was conducted under Section 143(3) by the Assessing Authority, resulting in a refundable amount of Rs. 2,03,29,841 for the respondent/assessee—However, instead of an immediate refund, the Assessing Authority ordered the amount to be adjusted against the demand for the year 1986-87—The court reviewed the impugned order and found nothing wrong with it—Although the amount was determined to be refundable to the assessee, the Department had used it, and interest was payable under Section 244(1A) of the Income Tax Act—Consequently, the appeal has been dismissed. ...
Arbitration Act, 1940—Section 28—Civil Procedure Code, 1908 (CPC)—Section 148—Income Tax Act, 1961—Section 133(2), Section 139(2), Section 256(2)—Sales Tax—Assessment—Concern a judgment passed by the High Court, and they all revolve around the interpretation of Sub-section (10) of Section 11 of the Punjab General Sales Tax Act, 1948—Due to the identical issue involved in these appeals, they were heard together and can be addressed in one common judgment—In the lead case, the relevant facts are as follows: The last dates for assessment were on April 30, 2004, April 30, 2005, April 30, 2006, and April 30, 2007, and the orders extending the time under Section 11(10) of the Act were passed on August 17, 2007, August 17, 2007, August 17, 2007, and May 25, 2007, respectively—The ...
Interest Tax Act, 1974—Section 10—Assessment—High Court reversed the Tribunal's view, stating that reassessment could occur even if there was no original assessment order under Section 10 of the Act—The petitioner argues that the High Court failed to apply the precedent set in the case of Trustees of H.E.H. the Nizam's Supplemental Family Trust, which supports the petitioner's position—The judgment in question establishes that in cases where no assessment order has been issued, there can be no notice for reassessment, as reassessment only becomes relevant following an initial assessment—As a result, the appeal is allowed, and the High Court's order is set aside. ...
New Delhi Municipal Council Act, 1994—Section 3(1), Section 416(2), Section 60, Section 60(1), Section 60(3), Section 61, Section 63, Section 63(1), Section 8(1)—Assessment of Property Tax—High Court had determined that since the sub-lessee was already paying rent, there was no need for an additional assessment of reasonable rent—This decision was based on bye-law 12 of the New Delhi Municipal Committee Byelaws related to the assessment and collection of house tax—However, the court is inclined to believe that the 25% paid to the Government of India by the lessee out of the rent collected from the sub-lessee includes an additional 25%—In reality, the rent available to the lessee is only 75% of what the sub-lessee pays—Therefore, following the precedent set by the Supreme Court in the case of Dewan...
Income Tax Act, 1961—Section 234D—Assessment—Applies to assessment years commencing before June 1, 2003 if the proceedings for that year were completed after that date. The High Court dealt with an appeal related to the assessment year 1998-99, for which the assessment had been completed before June 1, 2003. The Parliament's insertion of Explanation 2 in Section 234D clarified the legal position, making it clear that in this case, the retrospectivity of Section 234D did not apply. As a result, the petition was dismissed. ...
Central Sales Tax Act, 1956—Section 2 (aa), Section 2(b), Section 6—Tribunal reversed the assessment confirmed by the Appellate Assistant Commissioner, stating that the company's engagement in purchasing and selling rubber was not established—The Tribunal noted that the company converted latex from rubber trees into sheets for transport and marketing, with no evidence of other activities—It emphasized the lack of effort in determining the company's formation intention and selling organization—The court found the department failed to discharge its burden of proof—Thus, the matter was remanded to the Sales Tax Appellate Tribunal for reconsideration—The decision underscores the importance of establishing the nature of a company's activities and the onus of proof in tax assessments—T...
Bombay Municipal Corporation Act, 1888—Section 146(1), Section 154—Appellant contested the inclusion of certain costs in the rateable value—The High Court upheld the assessment, prompting the appellant's appeal—The Supreme Court examined various items of expenditure—Firstly, it excluded costs related to air-conditioning machinery and false ceiling, reasoning that they enhanced the building's utility and thus should not be assessed separately—Secondly, it upheld the inclusion of costs for wooden partitions, considering their integral role in the building's design—Thirdly, it accepted the inclusion of ground rent for government land—However, it rejected the inclusion of notional interest expenses, distinguishing them from actual interest payments—Consequently, the Court order...
Taxation—Gift Tax Act, 1958—Status of Assessees—Association of Persons vs. Individuals—In Civil Appeal No. 1436 (NT)/71, by special leave, the Supreme Court addressed whether the assessment of assessees as an Association of Persons (AOP) under the Gift Tax Act, 1958, was proper—The High Court had previously answered in the negative, favoring the assessees—The case involved the execution of a Will by Smt. Unnismmalu Amma, bequeathing properties to her daughters, Valsala Amma and Kugmini Amma, who subsequently gifted the properties to their brother, Sri R. Rajan Menon—The Gift Tax Officer assessed the assessees as an AOP, a stance upheld by the Appellate Assistant Commissioner and the Tribunal—However, the High Court concluded that the assessees should be taxed as individuals—The Supreme...
Assessment—The imposition of penalty on the assessee for alleged deliberate submission of a wrong return—The assessee, a tin fabricator and oil miller, showed a discrepancy between the amount due to the Canara Bank Ltd. as per his balance sheet (Rs. 2,78,015.72) and the amount reported by the bank (Rs. 2,40,792.29)—The Income Tax Officer added the difference of Rs. 31,858.78 as income from undisclosed sources, which was not disputed—However, a penalty was levied on the grounds of deliberately submitting wrong particulars—The Tribunal upheld this penalty, but the High Court set aside the Tribunal's order—Citing the Supreme Court decision in Commissioner of Income Tax, West Bengal I, vs. Anwar Ali, the High Court's decision was deemed correct, as there was no firm basis to conclude deliberate misr...
Kerala Agricultural Income Tax Act, 1950—Section 29—Assessment—Status of tenancy in common could be assigned to the assessee despite Section 29’s mandate requiring a partition of family properties in definite portions—The Tribunal had found that the family was divided and accepted the partition deed executed on September 15, 1956, with the accounting periods spanning from November 1, 1956, to March 31, 1958—The High Court agreed with the Tribunal’s conclusion, stating no portion of the income for the relevant years could be taxed as Hindu Undivided Family (HUF) income, given that the partition was effective before the accounting years—The Supreme Court upheld the High Court’s decision, noting that the Tribunal’s findings were sufficient, even though no formal order under Section ...
Punjab General Sales Tax Act, 1948 - Section 11—Authority issues a notice to a registered dealer before the expiry of three years from the deadline for filing returns, the assessment proceedings are considered to have commenced within the prescribed time— Even if the final assessment order is made after the three-year period, the proceedings are not deemed time-barred or jurisdictionally invalid— The notice serves as the trigger for the proceedings, which remain valid until completed, regardless of the finalization date— Therefore, an assessment order issued beyond three years from the return period is not automatically considered time-barred if the initial notice was timely— The High Court's decision to set aside the assessment order on the grounds of limitation must be overturned. ...
Income Tax Act, 1922—Section 30(2), Section 31—An appeal against an assessment, which was received by the office of the Appellate Assistant Commissioner (AAC) after the prescribed limitation period under Section 30 of the Income Tax Act, 1961—The AAC has the discretion to extend the limitation period for filing an appeal if sufficient reasons are provided—However, in this case, the AAC found no sufficient reasons to excuse the delay and rejected the appeal as time-barred—The Court observed that the AAC’s decision not to extend the period of limitation is effectively a confirmation of the assessment and is thus considered an order passed under Section 31 of the Act—Such an order, whether made before or after admitting the appeal, is open to further appeal—The Court clarified that rejecting an...