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Messrs Chatturam Horilram Ltd vs Commissioner Of Income Tax, Bihar And ... on 18 April, 1955

I do not accept the argument of Mr. P. R. Das as correct. The two authorities referred to by learned counsel, namely, Chatturam v. Commissioner of Income-tax and Wallace Brothers and Co. Ltd. v. Commissioner of Income-tax only deal with the question as to when the liability to pay the tax arises. That is not the question presented for determination in the present case. The question is at what point of time the right of appeal vests in the assessee. This question is manifestly different from the question as to when the liability to pay the tax arises. It may be conceded that the liability to pay the tax arose under the charging sections on the 31st March, 1950, for the accounting year 1949-50, and on the 31st March, 1951, for the accounting year 1950-51, but the right of appeal did not vest on the assessee on those dates. In my opinion the right of appeal vested in the assessee on the date of initiation of the proceedings for assessment. I think that for the purpose of accrual of the right of appeal the critical date is the date of initiation of the assessment proceeding or, in other words, the date of the commencement of the lis.
Supreme Court of India Cites 21 - Cited by 172 - B Jagannadhadas - Full Document

Wallace Brothers And Co. Ltd. vs The Commissioner Of Income-Tax on 17 February, 1948

I do not accept the argument of Mr. P. R. Das as correct. The two authorities referred to by learned counsel, namely, Chatturam v. Commissioner of Income-tax and Wallace Brothers and Co. Ltd. v. Commissioner of Income-tax only deal with the question as to when the liability to pay the tax arises. That is not the question presented for determination in the present case. The question is at what point of time the right of appeal vests in the assessee. This question is manifestly different from the question as to when the liability to pay the tax arises. It may be conceded that the liability to pay the tax arose under the charging sections on the 31st March, 1950, for the accounting year 1949-50, and on the 31st March, 1951, for the accounting year 1950-51, but the right of appeal did not vest on the assessee on those dates. In my opinion the right of appeal vested in the assessee on the date of initiation of the proceedings for assessment. I think that for the purpose of accrual of the right of appeal the critical date is the date of initiation of the assessment proceeding or, in other words, the date of the commencement of the lis.
Bombay High Court Cites 12 - Cited by 76 - Full Document
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