| Citation(s) |
|---|
| 1972 SLD 3061 = 1972 PTD 493 |
Supreme Court of India
Civil Appeals Nos. 586 to 588 of 1967, decided on 24th September 1968. (Appeals from the judgment and order of the Rajasthan High Court dated April 20, 1965, in D. B. Civil Writ Petitions Nos. 51 of 1964 and 26 and 67 of 1965).
Presented By: J.C. Shah, Actg. C. J., V. Ramaswami and A. N. Grover, JJ
Section 210(3) predicates a valid provisional assessment on the basis of which advance tax may be demanded. Jaipur Udhyog Ltd. v. Commissioner of Income-tax (1965) 58 I T R 118 reversed. M. C. Chagla, Senior Advocate (Bishambarlal, H. K. Puri, M. K. Garg and K. K. Jain, Advocates with him) for Appellants. S. T. Desai and N. D. Karkhanis, Senior Advocates (R. N. Sachthey and B. D. Sharma, Advocates with them) for
Respondents.
Civil Appeals Nos. 586 to 588 of 1967, decided on 24th September 1968. (Appeals from the judgment and order of the Rajasthan High Court dated April 20, 1965, in D. B. Civil Writ Petitions Nos. 51 of 1964 and 26 and 67 of 1965).
Presented By: J.C. Shah, Actg. C. J., V. Ramaswami and A. N. Grover, JJ
Section 210(3) predicates a valid provisional assessment on the basis of which advance tax may be demanded. Jaipur Udhyog Ltd. v. Commissioner of Income-tax (1965) 58 I T R 118 reversed. M. C. Chagla, Senior Advocate (Bishambarlal, H. K. Puri, M. K. Garg and K. K. Jain, Advocates with him) for Appellants. S. T. Desai and N. D. Karkhanis, Senior Advocates (R. N. Sachthey and B. D. Sharma, Advocates with them) for
Respondents.
JAIPUR UDYOG LTD. AND ANOTHER
VERSUS
COMMISSIONER OF INCOME-TAX, DELHI & RAJASTHAN AND ANOTHER
Law:
Section:
Income-tax---Provisional assessment--Loss-Carry forward- Scope of officer's powers-Whether officer can reject claim for carry forward of losses of earlier years and set off on the ground that lesser amount was determined in regular assessment for earlier years-Advance tax-Demand on basis of invalid provisional assessment-Invalidity---Income-tax Act, 1961, Ss. 71, 80, 141 & 210(3) -[Jaipur Udhyog Ltd. v. Commissioner of Income-tax (1935) 58 I T R 118 reversed]. The appellant-company submitted its return for the assessment year 1963-64 disclosing an income of Rs. 74,52,402 and claiming a set-off of Rs. 1,03,03,935 being the aggregate of losses it had suffered in earlier years. The losses claimed by the company for the years 1954-55 and 1957-58 to 1959-60 were in excess of the amounts determined in regular assessments and the profits for the years 1955-56 and 1956-57 as determined in the regular assessments were in excess of those returned by it. Appeals were pending against the orders of assessment. The Income-tax Officer made a provisional assessment on the company under section 141 of the Income-tax Act, 1961, recomputing the aggregate losses of earlier years on the basis of the computations in the regular assessments for the years 1954-55 to 1959-60 and, allowing a set-off of only Rs. 39,89,731 towards losses carried forward, raised a demand for Rs. 8,73,973. For the assessment year 1964-65 the company submitted a return disclosing an income of Rs. 59,89,757 and claimed to set off Rs. 36,01,735 as losses of earlier years carried forward and paid Rs. 12,12,595 under self-assessment. The Income-tax Officer passed a provisional assessment order computing the tax on Rs. 59,89,757 without any set-off of losses and raised a demand for an additional sum of Rs. 17,32,768. On the basis of the provisional assessment for the year 1964-65 the Income-tax officer passed an order for payment of advance tax under section 210 for the year 1965-66 : Held, (1) that it was not open to the Income-tax Officer in the provisional assessments under section 141 for the year 1963-64 acid 1964-65 to reject or ignore the claim off (tie company for carry-forward and set-off of the…