Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income tax Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income tax Act, 1961: Sections 139(4) and 147(a). Income Tax - AY 1965-66 - Reassessment proceedings - Initiation of By ITO - No material to support reassessment - Assessee's land acquired under Land Acquisition Act and compensation awarded - Subsequently, civil court enhanced compensation including solatium and interest which was affirmed by High Court - Assessee filed return under S. 139( 4) disclosing interest on belated payment of compensation as her income - ITO rejected it as invalid, initiated proceedings under S. 147(a) and issued notice - ITO obtained sanction for reassessment from CIT on the ground that the land acquired was not agricultural land as it had not been subjected to agricultural operation and the capital gains thereon were chargeable to income tax - Validity of - Held, in the absence of material to support reassessment, initiation of reassessment proceedings, invalid - Land Acquisition Act, 1894. Section 256(1) - Income Tax - Reference - Scope and power of High Court - High Court completely ignored and overlooked the findings of fact rendered by CIT (Appeals) and ITAT - Further, it discussed the matter as if it was sitting in appeal and also assumed that the ITO had looked into the Revenue records in order to reopen assessment - Correctness of - Held, such a course adopted by High Court, not approved. Practice and Procedure : Precedents - High Court decision - Binding nature of - On subordinate courts and tribunals - Judgment of High Court reversed by Supreme Court long after reopening of assessment by ITO - However, ITO applied a test different from that laid down by High Court in that judgment - Correctness of - Held, at the time of reopening of assessment High Court judgment held the field and, therefore, binding on ITO - Hence, ITO not justified in deviating from the said High Court judgment. New plea - Raising of - For the first time before Supreme Court - Such a plea not raised before any authorities or courts below - Permissibility of -Held, not permissible - Constitution of India, 1950, Art. 136. |
Judge | Hon'ble Mr. Justice M. Srinivasan |
Neutral Citation | 1999 INSC 71 |
Petitioner | Ram Bai |
Respondent | Commissioner Of Income Tax |
SCR | [1999] 1 S.C.R. 760 |
Judgement Date | 1999-02-18 |
Case Number | 4911 |
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