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Case Laws
Showing 21 to 40 of 105 Records
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1977 (7) TMI 86 - ITAT JABALPUR
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... ... ..... ce of drawings may be correct but here it is not proper to ignore the fact that the assessee has been in service for quite sometime and might have accounts with her out of which her expenses during these years could be partly met. The additions on account of drawings therefore would be on the high side. Considering the position we would sustain an over-all addition of Rs. 2,500 for the first year in the place of Rs. 5,500 sustained by the AAC. For the second year on account of the above we would sustain by the AAC. As regards the increase in the capital account for the second year the assessee had given details about the loans taken from two parties. Nothing has been shown to dis-credit these loans. Looking to the nature and extent of the business the statement filed for receipts, etc. we do not see any justification for upholding another addition of Rs. 5,000 on account of capital. The addition of Rs. 5,000 for the second year is deleted. Both the appeals are partly allowed.
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1977 (7) TMI 85 - ITAT INDORE
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... ... ..... heds,) has been filed to show that net profit at 10 per cent on gross receipts has been applied. The assessee contends that the contract taken in 1968 for execution in 18 months was completed 5 years and therefore there was less profit earned. Looking to these facts, the AAC having applied twelve and a half per cent net profit rate cannot be said to have erred on the side of excessive leniency as seems to be the Department s case. The Department itself seems to be applying 10 per cent net profit rate on gross receipts. In this case twelve and a half per cent is being applied vide order of the AAC and on net receipts as directed by us. 10. Accordingly, in Department rsquo s appeal ground Nos.1 and 3 are rejected and ground No.2 the orders of the ITO and the AAC are set aside with the direction to read the assessment with regard to Rs. 42,609 with advertance to our observation in para 5 above. The appeal is partly allowed. 11. The assessee rsquo s appeal is also partly allowed.
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1977 (7) TMI 84 - ITAT HYDERABAD-B
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... ... ..... , we feel that it would be appropriate to give registration only to the firm which carried on business in 13 branches including the branch in Sangam village. The AAC of Income-tax has mentioned in the appellate order that it would not be possible to allocate the income of the shop in Sangam village since proper books of account have not been maintained. We find that the income of the firm for this year has been estimated on the basis of the total number of trees exploited by the assessee. We are informed that there are only 235 trees in Sangam village and in this view of the matter it would be possible for the ITO to ascertain the estimated income relating to the shop in Sangam village and exclude the same from the consideration of assessment for this year. In other words, the registration under s. 185 of the Act should be granted to the assessee-firm which carried on business in 13 villages excluding the shop at Sangam village. 7. In the result, the appeal is partly allowed.
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1977 (7) TMI 83 - ITAT HYDERABAD-B
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... ... ..... high side taking into consideration the cases of others. For the Department reliance was placed on the others of the authorities below. 2. We think the assessee should succeed on the first contention straightaway in view of the Full Bench decision of Andhra Pradesh High Court in the case of Addl. CIT vs. Trikamji Punia and Sons 106 ITR 597. The facts are identical and the principle is fully applicable. In this case the assessee is obliged to take Bitumen supplied by the Government and also use the roller supplied by the Department and pay hire charges therefore. Therefore the net receipts only should be taken into account. 3. In regard to the rate of profit we find that 15 per cent is on the high side. We have come across a number of cases where 12-1/2 per cent is usually adopted. There are cases where lesser percentage is adopted. Having regard to the facts of the case we fix the percentage at 12-1/2 per cent on the net receipts. 4. In the result, appeal is allowed in part.
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1977 (7) TMI 82 - ITAT HYDERABAD-B
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... ... ..... t the CIT was not correct in his view that the amended provisions of s. 2(14)(iii)(b) are applicable to the lands in question and we accordingly modify his order to that extent while we uphold the decision setting aside the assessment and directing the ITO to redo the same after examining the question whether the lands were agricultural or not. In other words, the ITO should copies his only to the question whether the lands were agricultural or not and if he comes to the conclusion that the lands were agricultural, the capital gains arising from the sale should not be subjected to tax as the lands were outside the ambit of s. 2(14)(iii)(b). If however, he comes to the finding that the lands were non-agricultural, they would naturally come within the definition of capital asset in s. 2(14) without the help of the aforesaid provision and the capital gain arising from the sale will have to be subjected to tax. 8. For statistical purposes, the appeal is treated as partly allowed.
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1977 (7) TMI 81 - ITAT HYDERABAD-B
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... ... ..... IT Act, 1922. Herein, the assessee could not deliver the paddy to the Food Corporation of India on account of Andhra agitation which was then at its height. The Food Corporation of India did not appear bothered to visit the premises of the appellant and take delivery of the paddy, as per the levy system. Ultimately the Inspector of Police, Vigilence Cell, Civil Supplies Department, Visakhapatnam and the District supply Officer, Srikakulam raided the premise and confiscated nearly 92 bags of paddy on the ground that the appellant violated the Andhra Pradesh Rice procurement (Levy) and Restriction on Sale Order, 1967. The facts in the instant case are more or less in pari materia with the facts found in the decision of the Orissa High Court. On a review of the facts and law, we think that the sum of Rs. 6,249 which represents the value of paddy confiscated can be claimed as an admissible deduction in computing the profit under s. 10(1). 3. In the result, the appeal is allowed.
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1977 (7) TMI 80 - ITAT HYDERABAD-A
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... ... ..... er s. 271(1)(c) is the law as it stood when the return was filed by such assessee. The date of satisfaction of the income-tax Officer or the Appellate Assistant Commissioner as to the concealment of income by the assessee has no relevance for the purpose of levy of penalty. The present case, undoubtedly, falls within the ratio of this decision. The original returns were admittedly filed prior to 1st April, 1968. The law otherwise in force at the time when the original returns were filed, is the law that should be applied in determining the quantum of penalty. If so done, the penalties levied by the Inspecting Assistant Commissioner have to be drastically revised. We direct the Inspecting Assistant Commissioner to levy the minimum penalty according to law that existed prior to the amendment that came into force from 1st April, 1968. It is needless to say that the excess amounts, if collected from the assessee, will be refunded. 3. In the result, the appeals are partly allowed.
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1977 (7) TMI 79 - ITAT GAUHATI
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... ... ..... this assessment year. There is, however, one special circumstance on record for this year. The WTO has noted in his penalty order that the assessee did apply for extension of time upto 31st Dec., 1971. (The WTO does not record the reasons mentioned by the assessee for the extension but it was clarified in the hearing before us that this was because of the difficulty in finalising the accounts of this year). The WTO did grant extension upon 30th Sept., 1971 but not further. Hence he had levied the penalty taking the period of default as 1st Oct., 1971 to 17th April, 1972. We do not see from the material on record that the assessee had shown any reasonable cause for the default beyond 30th Sept., 1971. Hence we do not see any reason for interference with the orders of the authorities below as regards the penalty for this year. 8. In the result, ITA No. 431 (Gau) of 1975-76 is allowed, ITA No. 432 (Gau) of 1975-76 is allowed in part and ITA No. 433 (Gau) of 1975-76 is dismissed.
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1977 (7) TMI 78 - ITAT DELHI-D
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... ... ..... de. In the case of Government service also, a family person for deceased rsquo s family is provided for a certain period. A lumpsum payment of Rs.40,000 cannot be said to be excessive and has to be allowed as a deduction as falling under welfare of the employees and/or their families. The disallowance of Rs.40,000 shall accordingly be deleted. 12. The next objection in the appeal for the asst. yr.1972-73 was pressed before us is regarding a disallowance of Rs. 1,750 out of entertainment expenses, There being difference of opinion in the judicial pronouncement, one which is in favour of the assessee may be followed. The amount involved is also not very large, it being only of Rs.1,750 against the assessed income of Rs.1,74,940. The addition shall be deleted. 13. The last objection in this appeal is regarding the disallowance of Rs.500 out of general charges. After hearing the parties, the disallowance is reduced to Rs.250. 14. In the result, the two appeals are partly allowed.
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1977 (7) TMI 77 - ITAT DELHI-B
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... ... ..... In my opinion, there is force in the submission of the assessee rsquo s representative. It is no doubt true that the assessee had made payment of certain amounts in cash against the provisions of Rule 40-A(3) but in my opinion the assessee rsquo s case is covered in the exceptions of Rule 6DD(j). The assessee has filed confirmation letters of the parties. Admittedly the assessee had no bank account. The parties to whom payments have been made have file their respective confirmation letters. They are genuine parties and are assessed to income-tax. In such cases, the totality of circumstances have to be taken for considering such a issue. The Board has also directed the Income-tax Officers to take a lenient view of the matter now. The assessee has also succeeded in earlier years in establishing his case of Rule 6DD(j) in similar circumstances. In my opinion, there is no justification for making the addition of Rs. 19,128. The same is accordingly deleted. The appeals is allowed.
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1977 (7) TMI 76 - ITAT DELHI-A
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... ... ..... e was that the approach of the AAC being supported by the strong direct authority of three High Courts, did not call for interference. 4. We think that the submissions for the assessee have great force. In the case of Suresh Seth vs. CWT 108 ITR 86 (P and H) thePunjaband Haryana has considered the decisions of the Madras High Court as well as of the Allahabad High Court referred to supra and expressed its agreement with the view taken in the aforesaid two cases. It is, therefore, clear that the AAC rsquo s decision rests on a strong foundation. It may be noted in particular that thePunjaband Haryana High Court has taken into account, the immediate relevance of the Supreme Court rsquo s observations in Balakrishna Savalaram Pujari Waghmare vs. Shree Dhyaneshwar Maharaj Sansthan (AIR 1959 SC 798) on the nature of the essence of a continuing wrong. Hence, following with respect the ratio in Suresh Seth rsquo s case, we confirm the orders of the AAC. 5. The appeals are dismissed.
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1977 (7) TMI 75 - ITAT CUTTACK
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... ... ..... ed that the assessing officer at Puri had no jurisdiction to assess him to tax in respect of sales effected outside its jurisdiction. But it was held that as the dealer has arranged sale of goods in different circles being the registered dealer of Puri Circle. As he has not paid tax in any of the circle for the said sale the assessing officer has jurisdiction to assess him when he is maintaining accounts at Puri. But here the accounts of the different sale centres are being maintained at sale centres themselves. It is the specific contention of the assessee that he has paid tax at the different sale centres. In that view the facts of the present case are completely different from the case of Sundarlal Mandoliwal. 4. Considering the facts I am of the view that no point of law has arisen and the direction given form completion of assessment above at Cuttack in respect of sales effected to that jurisdiction shall be in order. Therefore, the payer for references stands dismissed.
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1977 (7) TMI 74 - CUTTACK
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... ... ..... Rs. 22,94,848.07 2. Binapani Store Rs. 12,51,667.03 3. Sankar Store Rs. 9,34,320.39 4. Jharendra Das Rs. 3,02,293.79 . Total Rs. 47,82,129.28 (b) The claim of deduction in respect of the following dealers be disallowed 1. Epari Laxman Patra Rs. 1,694.35 2. Kalpana Store Rs. 39,283.15 . Total Rs. 40,977.50 (c) The estimation of escaped sale made to Majid Store at Rs. 25,000 be upheld. (d) The claim of deductions made by the assessee in respect of the following dealers by freshly considered by the AO as indicated and after such enquiry as indicated above the AO do complete the assessment according to law. 1. Balajee Traders Rs. 18,73,497,69 2. Shrikant Bhandar Rs. 10,203,35 Total Rs. 18,83,701,04 21. In the result, second appeal No. 188 of 1977-78 relating to the asst. yr. 1973-74 is allowed and the matter of assessment is remanded back to the AO, who do complete the assessment according to law as indicated above. The imposition of tax and additional demand made are set aside.
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1977 (7) TMI 73 - ITAT CUTTACK
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... ... ..... embezzlement of the sale proceeds is established. The question is about its quantification. As has been stated earlier, the quantum of loss has been correctly arrived at Rs. 51,926. This loss was incidental to the business carried on by the assessee and arose in the ordinary course of its business. We do not think that this can be termed as bad debt for the simple reason that the person from whom the amount could not be recovered was not a trade debtor. It is not a case where the goods were sold on credit but the sale proceeds were realised later. Hence, considerations for allowance of bad debt do, not apply to this case. Considering all the facts and circumstances of the case, we hold that the assessee is entitled to the deduction of the sum of Rs. 50,926. We direct that this amount be allowed as a deduction in the computation of the assessee s business income. 8. In the result, the assessee s appeal is partly allowed and the Cross objection by the Department is dismissed.
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1977 (7) TMI 72 - CUTTACK
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... ... ..... bviously, the assessee wanted to substantiate its plea. In view of the above it would not be improper or unjustified to remand the case to the AO so as to summon Shri Sharma for the purpose of examination by the assessee. But this procedure would be delatory and the learned Tax Practitioner did not press for the same. On the other hand, he seems to have pressed for his alternative argument to limit the enhancement to the above alleged suppression. In the facts and circumstances of this case, the contention of the learned Tax Practitioner seems to be convincing. For the alleged suppression of the value of Rs. 251.45 enhancement of the returned turnover by Rs. 40,000 is indeed high. Therefore, I limit the enhancement to Rs. 251.45 only. 8. For the reasons stated above, the appeal is allowed. The returned turnover is hereby enhanced by Rs. 251.45. The AO shall recomputed the gross turnover and taxable turnover and assess tax rateably. Excess tax, if realised, should be refunded.
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1977 (7) TMI 71 - ITAT CHANDIGARH
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... ... ..... ent came to be adjudicated upon by the Tribunal in income-tax assessments for the asst. yrs. 1970-71 to 1974-75 and it has been held there by the Tribunal vide its order dt. 4th Oct., 1976 that the assessee constituted a HUF and the lands in his hands were ancestral in character. Though the single Member deciding the income-tax appeals of the assessee has relied on the Pritam Singh s judgment, we are primarily dismissing these Revenue s appeals on the ground that the assessee was not governed by any customary Law but was governed by the Hindu Law there being no dispute regarding the ancestral character of the properties in the respondent s hands. We dismiss these Revenue appeals and confirm the AAC s orders on both the grounds that the assessee was an HUF and secondly that the status could not be changed from HUF to individual by the WTO without giving fresh notices for framing assessment in a status different than the one declared. 6. All the five Revenue appeals dismissed.
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1977 (7) TMI 70 - ITAT CHANDIGARH
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... ... ..... heads, no vouchers for these expenses have been produced. The expenditure in both the years is an estimated expenditure and in the absence of any specific evidence, we are not inclined to interfere with the orders of the AAC in this respect. 11. The only other ground in the Revenue s appeal for the A.Y. 1973-74 is regarding the levy of interest under s. 217. For the A.Y. 1973-74 interest of Rs. 493 and for the A.Y. 1974-75 interest of Rs. 940 was levied under s. 217. For the A.Y. 1974-75, the AAC did not entertain the assessee s appeal regarding the chargeability of interest under s. 217 on the ground that no appeal was provided but for the A.Y. 1973-74, the AAC admitted the assessee s ground and deleted the interest levied. On this point we would accept the Revenue s appeal and hold that no appeal is provided against the levy of interest under s. 217. 12. In the result ITA No. 141 and C.O. Nos. 25 and 27 of 1976-77 are dismissed and ITA No. 227 of 1976-77 is partly allowed.
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1977 (7) TMI 69 - ITAT BOMBAY-C
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... ... ..... ssessee to the admission of this new ground is accordingly sustained. 9. The only other ground which has been taken in the appeal relates to the deletion of a sum of Rs. 6,000, being the addition which was made by the ITO by way of deemed interest on the amount that was outstanding against M/s. Apsara Cinema. We find that this issue has already been decided in respect of the earlier years by the Ahamedabad Bench A of the Tribunal vide its consolidated order in ITA. Nos. 322 and 1787 (Bom.), 1972-73 of the Department. In the circumstances, respectfully following the said decision, with which we agree, we restore the disputed addition of Rs. 6,000. 10. The cross objection of the assessee is time-barred by 12 days. In the absence of any cogent reason, we decline to condone the delay. The cross objection accordingly stands dismissed on grounds of limitation. 11. In the result, the appeal of the Department is partly allowed, while the cross objection of the assessee is dismissed.
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1977 (7) TMI 68 - ITAT BOMBAY
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... ... ..... terials for research laboratory stated in the application are articles intended for use in manufacture. As regards electrical goods for lighting the factory, such as, fluroscent tubes, bulbs, fans and their spares, in view of the observations of the Supreme Court in J.K. Cotton Spg. and Wvg. Co. s case on page 570, electrical equipment in the present stage of development would be commercially necessary. In the case before the Supreme Court electrical lighting, humidfiers, exhaust fans, etc. were held as necessary to effectively carry on the manufacturing process. In the present case electrical goods for lighting the factory such as fluroscent tubes, bulbs, fans and spares would constitute goods for use in the manufacture of goods for sale. 22. As a result, the impugned orders of the Asstt. CIT and the STO as regards the articles above stated the hereby set aside. The case is remanded to the STO for inclusion of the above said items in the Recognition Certificate accordingly.
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1977 (7) TMI 67 - ITAT BANGALORE
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... ... ..... the land and structures separately. The assessee had filed a report of valuer according to whom the value of the property as on 1st Jan., 1954 as Rs. 8,40,000. That value, of course, is not binding on the Department and it will be open to the ITO to determine the fair market value of the property afresh. We accordingly set aside the order of the ITO and the AAC in this regard and direct that the fair market value of the property as on 1st Jan., 1951 be recomputed by the ITO on basis of the land and building method or any other suitable method which is not solely based on the capitalisation of rent. The ITO will give a fair opportunity to the assessee to prove his case in this regard and then pass a fresh order according to law. 16. ITA No. 194/Bang/1976-77 is dismissed with I.T.A. No. 222/Bang/1976-77 is partly allowed. the cross objection, which merely seeks to support the order of the AAC with regard to the actual amount received is redundant and hence dismissed as under.
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