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Case 1: Delhi HC pulls up IT Dept for raising same dispute post unfavourable order by invoking another section
The Delhi High Court pulled up the income tax department for not accepting an order, which was not in its favour, with grace but instead invoking another section of the Income Tax law to charge the petitioner in the same matter.
Section 263 allows the Commissioner of income tax (CIT) to look into assessment order prejudicial to the Revenue interest. Having done so, the CIT found that the order in favour of the assessee was warranted on the facts of the case.
Aggrieved albeit unjustly, the department sought to invoke an alternative regime — section 148 income escaping assessment. The High Court rightly rapped the department on its knuckles for not accepting the CIT revisionary order with humility and grace.
Case 2: Overage by medical board is only an estimation
The Allahabad High Court, on September 24, in KM Sakshi versus Govt of India and 3 Others, struck down the opinion of the Medical Board as to a girl being overage for class 6 as arbitrary in the face of birth certificate clearly tallying with the date mentioned in the admission form.
The Court observed that under Section 14 of the Right of Children to Free and Compulsory Education Act 2009, the age of the child shall be either determined by birth certificate issued under the Births, Deaths and Marriages Registration Act 1886, or any other such document as may be prescribed.
Medical board opinion can be sought only in the absence of documents prescribed by section 14. At best, the school could have questioned the authenticity of the birth certificate, the Court concluded.
Case 3: No garnishee and attachment order when the matter is under appeal
A Garnishee order can be obtained to impound a part of salary for recovery by the debtor. Attachment orders also secures the income tax department’s interests. But these two courses are not open when the assessment order is accepted in appeal on payment of 10% of the disputed amount.
The Andhra Pradesh High Court held that garnishee, a third party who is instructed by way of legal notice to surrender money to settle a debt or claim, and attachment orders are automatically stayed when the matter is admitted for appeal.
It is a fine judgment given the fact that otherwise the appeal may prove to be ineffectual and infructuous should the garnishee and attachment orders result in complete payment of the disputed amount.
Case 4: Agricultural Market Committee fees is not tax but charges for services
The Andhra Pradesh High Court dismissed the contention that agricultural market committee fee imposed at AP amounts to double taxation as already the petitioner had paid the same to Punjab agricultural market committee.
The Court pointed out these were not taxes but service charges payable in both the states. Tax means imposts with no concomitant services in return. The two agencies in the two states on the contrary were rendering services.
Case 5: Committee members of society not responsible unless they are in charge of day to day running
In I C Mahida, M.D. of Surat District Cooperative Bank, versus State of Gujarat matter, the Gujarat High Court rightly absolved the two custodial members of the cooperative society of the charges of not depositing the PF dues of the society’s employees on the ground that they were not responsible for the day today affairs of the society besides doing their work only as a labor of love.
This judgment is consistent with the general judicial view that part time directors of companies with no executive powers cannot be held liable for the omissions and commissions of the Board of Directors.
Once again, a fine judgement as in most of the resident welfare associations a few conscientious and active members offer their services purely as a labor of love. If the sword of Damocles’ were to hang over their heads, even they would withdraw leaving the society rudderless.
—The author, S Murlidharan, is a Chartered Accountant and legal expert, who comments and interprets important court rulings and judgements. The views expressed are his own and personal.
Read the previous Legal Digest columns here
The Delhi High Court pulled up the income tax department for not accepting an order, which was not in its favour, with grace but instead invoking another section of the Income Tax law to charge the petitioner in the same matter.
Section 263 allows the Commissioner of income tax (CIT) to look into assessment order prejudicial to the Revenue interest. Having done so, the CIT found that the order in favour of the assessee was warranted on the facts of the case.
Aggrieved albeit unjustly, the department sought to invoke an alternative regime — section 148 income escaping assessment. The High Court rightly rapped the department on its knuckles for not accepting the CIT revisionary order with humility and grace.
Case 2: Overage by medical board is only an estimation
The Allahabad High Court, on September 24, in KM Sakshi versus Govt of India and 3 Others, struck down the opinion of the Medical Board as to a girl being overage for class 6 as arbitrary in the face of birth certificate clearly tallying with the date mentioned in the admission form.
The Court observed that under Section 14 of the Right of Children to Free and Compulsory Education Act 2009, the age of the child shall be either determined by birth certificate issued under the Births, Deaths and Marriages Registration Act 1886, or any other such document as may be prescribed.
Medical board opinion can be sought only in the absence of documents prescribed by section 14. At best, the school could have questioned the authenticity of the birth certificate, the Court concluded.
Case 3: No garnishee and attachment order when the matter is under appeal
A Garnishee order can be obtained to impound a part of salary for recovery by the debtor. Attachment orders also secures the income tax department’s interests. But these two courses are not open when the assessment order is accepted in appeal on payment of 10% of the disputed amount.
The Andhra Pradesh High Court held that garnishee, a third party who is instructed by way of legal notice to surrender money to settle a debt or claim, and attachment orders are automatically stayed when the matter is admitted for appeal.
It is a fine judgment given the fact that otherwise the appeal may prove to be ineffectual and infructuous should the garnishee and attachment orders result in complete payment of the disputed amount.
Case 4: Agricultural Market Committee fees is not tax but charges for services
The Andhra Pradesh High Court dismissed the contention that agricultural market committee fee imposed at AP amounts to double taxation as already the petitioner had paid the same to Punjab agricultural market committee.
The Court pointed out these were not taxes but service charges payable in both the states. Tax means imposts with no concomitant services in return. The two agencies in the two states on the contrary were rendering services.
Case 5: Committee members of society not responsible unless they are in charge of day to day running
In I C Mahida, M.D. of Surat District Cooperative Bank, versus State of Gujarat matter, the Gujarat High Court rightly absolved the two custodial members of the cooperative society of the charges of not depositing the PF dues of the society’s employees on the ground that they were not responsible for the day today affairs of the society besides doing their work only as a labor of love.
This judgment is consistent with the general judicial view that part time directors of companies with no executive powers cannot be held liable for the omissions and commissions of the Board of Directors.
Once again, a fine judgement as in most of the resident welfare associations a few conscientious and active members offer their services purely as a labor of love. If the sword of Damocles’ were to hang over their heads, even they would withdraw leaving the society rudderless.
—The author, S Murlidharan, is a Chartered Accountant and legal expert, who comments and interprets important court rulings and judgements. The views expressed are his own and personal.
Read the previous Legal Digest columns here
(Edited by : Unnikrishnan)
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