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Lalji Haridas vs Income-Tax Officer And Anr. on 25 July, 1961

In fact, the principle of protective precautionary assessment came up for consideration before the apex Court in Lalji Haridas (supra), wherein by upholding, action of reassessment initiated by the Revenue, they observed that "In cases where it appears to the income-tax authorities that certain income has been received during the relevant assessment year but it is not clear who has received that income and prima facie it appears that the income may have been received either by A or B or by both together, it would be open to the relevant income-tax authorities to determine the said question by taking appropriate proceedings both against ::: Downloaded on - 15/04/2017 21:48:53 :::HCHP 50 A and B. That being so, we do not think that Mr. Nambiar would be justified in resisting the enquiry which is proposed to be held by respondent No.1 in pursuance of .
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