Case Law Details
Gokal Chand Rattan Chand Vs Union of India and others (Punjab and Haryana High Court)
The petitioner has preferred this writ petition as a member of the Hindu Undivided Family (hereinafter referred to as ‘HUF’) assailing the auction of sale conducted by the respondents of the properties owned by the HUF and individually by the members of the HUF to recover the tax assessed against the HUF.
2. Briefly, the contentions raised by the petitioner are that the Rattan Trust was a non-charitable trust created by registered deed executed on 28.03.1942. It is asserted that besides other donations, donation for a sum individual. The assessment for the years 1946 from Gokal Chand -1947 of the HUF was completed on 06.09.1946, which reflected the receipt of the aforesaid donation of Rs.5 Lakh. The Income Tax Officer (hereinafter referred to as ‘the ITO’) had completed the assessment of the trust for the years 1947-48 and exemptions certificates were duly granted to the trust on 14.06.1947, 08.01.1952 and 01.09.195 9.
3. The original assessment of the years 1946 -47 was completed on 06.09.1946 on a total income of Rs.97,789/-. However, the ITO after seventeen years reopened the assessment order under Section 147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) and held that the demand of Rs.5 Lakh had emanated from the petitioner HUF, resulting in total imposition of tax on income of Rs.6,01,789/- under the order dated 31.10.1964, passed by the ITO (Special Investigation Circle, Amritsar), Camp, New Delhi.
4. On 27.07.1967, the appeal filed by the petitioner against order dated 31.10.1964, came to be allowed by the Appellate Assistant Commissioner of Income Tax ‘F’ Range, New Delhi (hereinafter referred to as ‘the AAC’) . On 16.10.1968, the Income Tax Appellate Tribunal, Delhi Bench ‘C’, (hereinafter referred to as ‘the ITAT’) dismissed the appeal filed by the department assailing the order dated 27.07.1967 and upheld the deletions.
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