9911796707
|
Home
Issues:
Provisional assessment under the Mysore Agricultural Income-tax Act, 1957 for the assessment year 1969-70 challenged by the petitioner. Jurisdiction of the assessing authority to make a provisional assessment order on an income not admitted by the assessee disputed. Analysis: The petitioner, an assessee under the Mysore Agricultural Income-tax Act, challenged the provisional assessment made for the assessment year 1969-70 and the subsequent tax recovery proceedings. The petitioner filed a return showing a net profit and claimed deductions. The Agricultural Income-tax Officer issued a notice proposing to disallow a significant sum claimed as deduction by the petitioner and to make a provisional assessment on a higher income amount. The provisional assessment order was made, assessing a tax amount. The petitioner objected to this order, contending that the assessing authority had no jurisdiction to make a provisional assessment on an income not admitted by the assessee. The court analyzed the relevant provision, section 20(1) of the Act, which allows the assessing authority to make a provisional assessment based on the return and accompanying documents, giving due effect to specific allowances and carried forward losses. Drawing a parallel with section 141 of the Income-tax Act, 1961, the court referred to a Supreme Court decision emphasizing that the assessing authority can call upon the assessee to pay tax provisionally on the admitted taxable income, without questioning the total income or the admissibility of claimed deductions. As the scheme of section 20(1) mirrored section 141, the court concluded that the assessing authority had overstepped jurisdiction by demanding tax on income not admitted by the petitioner. Therefore, the court held the provisional assessment order, the demand based on it, and the recovery proceedings as illegal and set them aside. The petitioner was granted costs for the writ petition, including advocate's fee.
|
