RAI BAHADUR SETH TEOMAL versus THE COMMISSIONER OF INCOME TAX AND THE COMMISSIONER OF EXCESS PROFITS TAX

RAI BAHADUR SETH TEOMAL versus THE COMMISSIONER OF INCOME TAX AND THE COMMISSIONER OF EXCESS PROFITS TAX

The Supreme Court held that the order of the Central Board of Revenue assigning the appellant’s case to the Commissioner of Income-tax (Central), Calcutta, under section 5(2) was valid, and section 64(5a) prevented the appellant from objecting to assessment by the Income-tax Officer, Calcutta. Objections to place of assessment are matters of administrative convenience and are not within the appellate jurisdiction of the Tribunal or Appellate Assistant Commissioner. Therefore, the assessment by the Income-tax Officer, Calcutta, was proper and lawful.

Parties
Appellant: Rai Bahadur Seth Teomal (represented by Seth Ottanmal); Respondents: Commissioner of Income Tax and Commissioner of Excess Profits Tax
Jurisdiction
India
Judgment Date
02 March 1959
Procedural Posture
Civil Appeals / Appeal Before the Supreme Court of India Against the Order of the Income Tax Appellate Tribunal (calcutta Bench) for Assessment Years Ending 31st March, 1944 (income Tax), and 31st March, 1943 (excess Profits Tax), Pursuant to Special Leave.
Outcome
Appeals dismissed with costs. Only one set of costs awarded to respondents.
Legal Topics
Income Tax Assessment, Jurisdiction of Tax Authorities, Transfer of Assessment Proceedings
Taxation Law Income Tax Assessment Jurisdiction of Tax Authorities Transfer of Assessment Proceedings

Case Brief

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Parties

Rai Bahadur Seth Teomal (represented by Seth Ottanmal)

Appellant

Commissioner of Income Tax and Commissioner of Excess Profits Tax

Respondents

Procedural Posture

Civil Appeals / Appeal Before the Supreme Court of India Against the Order of the Income Tax Appellate Tribunal (calcutta Bench) for Assessment Years Ending 31st March, 1944 (income Tax), and 31st March, 1943 (excess Profits Tax), Pursuant to Special Leave.

Legal Issues

  1. 1 Whether the assessment of the appellant by the Income-tax Officer, Calcutta, was legal and within his jurisdiction following transfer by the Central Board of Revenue under section 5(2) of the Indian Income-tax Act, 1922.
  2. 2 Whether objections as to the place of assessment may be raised in appeal before the Appellate Assistant Commissioner or Appellate Tribunal.

Ratio Decidendi

The Supreme Court held that the order of the Central Board of Revenue assigning the appellant’s case to the Commissioner of Income-tax (Central), Calcutta, under section 5(2) was valid, and section 64(5a) prevented the appellant from objecting to assessment by the Income-tax Officer, Calcutta. Objections to place of assessment are matters of administrative convenience and are not within the appellate jurisdiction of the Tribunal or Appellate Assistant Commissioner. Therefore, the assessment by the Income-tax Officer, Calcutta, was proper and lawful.

Court Disposition

Appeals dismissed with costs. Only one set of costs awarded to respondents.

Orders

  • Appeals dismissed with costs.