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Showing 61 to 80 of 155 Records
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1986 (6) TMI 95 - ITAT JAIPUR
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... ... ..... stock-in-trade, consumable stores or raw material held by the assessee for the purpose of his business or profession. Therefore, before any asset can be excluded from the definition of capital asset, the assessee must be carrying on some business or profession. As no business or profession was carried on by the assessee before or after this transaction, the solitary transaction cannot be held to be one in the nature of trade. If any authorities are needed for the proposition, we may refer to the case of Saroj Kumar Mazumdar vs. CIT (1959) 37 ITR 242 (SC) and Ch. Atchaiah vs. CIT (1985) 48 CTR (Del) 223 (1985) 156 ITR 78 (Del). 3. Though the argument raised on behalf of the Department is quite plausible, the better opinion appears to be in favour of the assessee. A co-sharer of the assessee has already been taxed in respect of this very profit as capital gain. We, therefore, are of the opinion that there is nothing for us to interfere in this appeal which is here by dismissed.
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1986 (6) TMI 94 - ITAT JAIPUR
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... ... ..... come of the firm under the head property as in that case no claim as co-owners was ever raised. In Calcutta High Court in the case of Gora Chand Sen (1985) 154 ITR 435 (Cal), it was held that where shares are definite and ascertainable the income from property is assessable only under s. 26 treating them as co-owners. The Supreme Court decision in the case of Mc Dowell s, cannot be applied to the present case as there is neither any intention to avoid the taxation or evasion of taxation. As already observed above, the entire act of culmination in the shape of partnership deed was preceded by an agreement with the parties by allowing them the option of owning the liabilities and the properties and share the income equally. We are, therefore, of the view that the income from the property let out as godowns should be assessed jointly in the hands of the four persons treating them as co-owners under s. 26 of the IT Act. 5. In the result, we allow both the appeals of the assessee.
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1986 (6) TMI 93 - ITAT JAIPUR
Deductions, Income From Co-Operative Societies ... ... ... ... ..... re appropriate and in accordance with the spirit of the relevant provisions of the law. Normally banks would not be entitled to the exemption contained in section 80P(2)(i). The idea behind giving exemption to the co-operative societies seems to relate to such part of the business of banking which is conducted to provide credit facilities to the members of the society. If the entire business of banking carried on by a co-operative society were to be exempt, then any bank could claim this exemption by being registered as co-operative society. There would be no deed of clause (c) in section 80P(2) at all because the entire banking business of a co-operative society which would involve any kind of deposit or investment would be exempt. However, the point involved in these matters is a pure question of law in any case the matter has to go to High Court. I, therefore, don t want to make it a Third Member case and agree with the ultimate conclusion arrived at by my learned brother.
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1986 (6) TMI 92 - ITAT JAIPUR
Draft Assessment Order, Reference To IAC ... ... ... ... ..... rom its investments, the whole of such income. The interest earned on the deposit of the pump set dealers would also stand in the same footing as certain deposit is taken by the bank from various pump set dealers, who had supplied pump sets to the various customers of the bank to whom monies have been advanced for purchase of such pump sets. This, it was explained, was only to protect the banks financing to the various customers and also to ensure that the pump sets function properly. Though there is some distinct connection between the advances provided to the customers in respect of pump sets purchased, the deposit made by the pump set dealers cannot be equated as deposit made by the customers. The interest earned on investment of such deposits have to be categorised. On staff deposit along with the income by way of interest and would be covered only by section 80P(2)(d). 12. In the result, the appeals of the assessee are partly allowed and that of the department dismissed.
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1986 (6) TMI 91 - ITAT JAIPUR
Powers And Procedure Of, Settlement Commission, Apparent From Record, Rectification Of Mistakes
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1986 (6) TMI 90 - ITAT INDORE
Assessment, Period Of Limitation ... ... ... ... ..... tion 153 of the Act to secure that, in such cases, the fresh assessment may be made by the ITO within the period of limitation laid down under the existing provisions of section 153(1) or before the expiry of six months from the end of the month in which an application under clause (a) of sub-section (2) of section 143 of the Act is made by the assessee, whichever is later. The aforesaid amendment takes effect from 1st October, 1984. Section 28(a) of the amending Act . 7. Thus, the above amendment was made to remove the difficulty in making fresh assessments under section 143 within the prescribed time limit under section 153. The amendment has come into force with effect from 1-10-1984 whereas the orders were passed on 12-4-1983 to which the above amendment was not applicable. The above orders of assessment passed under section 143 were clearly barred by time and the AAC was right in annulling the same. We accordingly uphold the decision of the AAC and dismiss these appeals.
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1986 (6) TMI 89 - ITAT HYDERABAD-B
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... ... ..... case relied on by the departmental representative is in respect of a building consisting of several rooms used as a lodge. A residential accommodation, in our view, cannot partake of the nature of a lodge where people in transit are accommodated. The assessee rsquo s case is of a building consisting of six different apartments in which families could reside. The mere fact that there are certain facilities the sources of which is common, would not strip each flat or unit of its independent existence for residential purposes. Within the four walls of each unit, the tenant is the Monarch of all he surveys . The second proviso to s. 23(1)(c) speaks of a building comprising one or more residential units . Here is a building consisting of six residential unit let out on a monthly rent Rs. 250 per unit and where families reside and enjoy exclusive facilities, in addition to common facilities. Therefore, the order of the CIT (A) is set aside. 4. In the result, the appeal is allowed.
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1986 (6) TMI 88 - ITAT HYDERABAD-A
Appellate Tribunal, Business Income, Assessable As, Power To Admit Additional Ground ... ... ... ... ..... a Pradesh High Court on a consideration of all the facts and circumstances of the case held that there was nothing on record to show that the assessee expressed its intention to discontinue its business altogether, and, therefore, it had treated the lease income as business income . 10. From all the above, we have to hold that though the lease was for a period of 12 years in these appeals the lease income should not be considered under any other head of income than Business , especially when there was no intention on the part of the assessee to abandon its business. 11. In the result, the impugned order passed by the Commissioner (Appeals) are set aside and we direct that the lease income for these three assessment years should be treated as part of business income of the assessee and the business losses determined as per assessments of earlier years should be carried forward and set off to the extent permissible. Thus, appeals filed by the assessee, are, accordingly allowed.
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1986 (6) TMI 87 - ITAT HYDERABAD-A
Agricultural Income, Agricultural Land, Assessment Year, Lease Rent, Question Of Law, Special Audit, Total Income
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1986 (6) TMI 86 - ITAT HYDERABAD
Hindu Undivided Family, Assessable As ... ... ... ... ..... o make it absolute and exclusive to each of his sons and there was no suggestion in the documents that the property should be taken by the sons as the ancestral property. 4. The ratio laid down in the above cases would squarely apply to the instant case. The will executed by the assessee s father would clearly show that he bequeathed the properties to his two sons equally to be enjoyed by them with full rights. There is nothing to indicate in the will that the properties were given to the families of the two sons and they are to be treated as ancestral properties. In my view the properties got by the assesses under the will are not ancestral properties but self-acquired properties in their hands as the father has bequeathed them with full rights, and so the income from those properties is includible in the individual assessments of the assessee. Thus, I reverse the order of the AAC and uphold the assessments made for all these years. 5. In the result, the appeals are allowed.
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1986 (6) TMI 85 - ITAT DELHI-C
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... ... ..... it seems to be on the same lines as had always been adopted by the assessee in all the years i.e., in the past. Giving due consideration to the reasoning of the ld., lower authorities and the assessee s rejoinder before the ld., lower authorities, we are of the opinion and do hold accordingly that a token addition in the declared results of the assessee will meet the ends of justice. The said figure is fixed at Rs. 30,000. The rest of the addition stands deleted, since in our view, for minor discrepancies this figure should suffice. Before parting we like to reiterate that in the trade, the assessee is engaged and in his line of business, the addition has to be made and sustained on the basis of opinions of persons, who have the desired necessary expertise and not on the basis of surmises and conjectures and leave it at that, since for proper adjudication of the issue, those opinion will matter. 13. In the net result, the assessee s appeal succeeds partly as indicated above.
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1986 (6) TMI 84 - ITAT DELHI-C
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... ... ..... f s. 145(1) of the Act. Thereafter the ld. ITO was left with no action but to estimate the income keeping in view the totality of the circumstances. The assessee showed a gross profit rate of 4.5 per cent in the wholesale business. The ld. ITO, however, applied a G.P. rate of 60 per cent. Similarly, in the retail sales a G.P. rate of 10.03 per cent was shown whereas the ld. ITO applied a G.P. rate of 12.5 per cent. On account of that the addition came to Rs. 29,883. As discussed earlier was are satisfied that in this case some addition was definitely called. We are, thus, of the view that it will meet the ends of justice of the G.P. rate of 5 per cent is applied on the sales in the wholesale of the business and 11 per cent on the sales in the retail business. The ld. ITO will compute the addition keeping in view the above observation. 10. No other ground was either raised or pressed before us. The paper book has been considered. 11. In the result the appeal is partly allowed.
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1986 (6) TMI 83 - ITAT DELHI-B
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... ... ..... has escaped assessment. Information, however, cannot mean mere disagreement with the judgment of the Appellate Authorities. The action of the ITO in reopening the assessment after a binding decision of the AAC and the Tribunal was grossly contemptuous and cannot be justified by any principle of law. The learned Commissioner (Appeals) has mentioned that the Revenue moved an application under section 256(1) for a reference to the Hon ble High Court. That was rejected by the Tribunal and the learned Commissioner (Appeals) mentions that reference application under section 256(2) was pending before the High Court. That was the proper legal channel to be followed by the ITO and reopening of the assessment was highly improper apart from being totally untenable in law. We are, therefore, of the opinion that the reassessment made by the ITO cannot be sustained. 6. For the above reasons, we allow this appeal and annual the reassessment made by the ITO vide order dated5th August, 1974.
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1986 (6) TMI 82 - ITAT DELHI-B
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... ... ..... expenditure on extending of human courtesy would not amount to hospitality or entertainment. The language of the provision of Expln. 2 is comprehensive and it includes within its ambit all kinds of hospitality whether it is lavish or frugal or whether it is necessitated by any contract or usage of trade or is extended just by way of courtesy towards the constituents. The decision of the Tribunal in ITA No. 3118/Del/82 has not been accepted and followed in the judgements given by the various Benches of the Tribunal atDelhi. In these facts and circumstances we would hold that leaving apart the statutory deduction of Rs. 5,000 as provided under s. 37(2A)(i), no part of the Vyopari Expenses was allowable as a deduction. We would accordingly allow the second ground in the departmental appeal and dismiss the assessee s cross objection. 6. In conclusion, while the appeal filed by the Revenue is allowed in part, the cross objection filed by the assessee fails and is hereby dismissed.
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1986 (6) TMI 81 - ITAT DELHI-B
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... ... ..... y . 4. The decision of the Hon ble Delhi High Court in the case of Sushil Ansal would not be applicable to the facts of the present case as we in fact find that the assessee was the owner of the property under the Perpetual lease granted by the Delhi Administration and under the Award given on the dissolution of the firm named Gurbux Singh Mahinder Singh. The representation made by the ld. departmental representative in this regard is, therefore, not acceptable to us at all the same we would not be able to subscribe to the views of the AAC that the income derived by the assessee from the above named property was income assessable under the provisions of s. 22/23 of the IT Act. The property having not been no relationship of a landlord and tenant, the income which was described as commission under the aforementioned agreement could not be treated as rental income. 5. For the above mentioned reasons we would reverse the order passed by the AAC and allow the departmental appeal.
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1986 (6) TMI 80 - ITAT DELHI-A
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... ... ..... e there is not details about the jewellery components. We cannot allow 21 per cent deduction, but at the same time 8 per cent deduction is, in our opinion less than fair and accordingly we make it at 16 per cent, which in our opinion, is to be the fair rate of deduction. In arriving at the above figure, we have duly noted the fact that there is no material in the orders of the lower authorities as also no details with us, much less, any material to favour the assessee to allow 21 per cent. The assessee gets relief to the extent that for all the four years under appeal the deductions shall be 16 per cent as against 8 per cent allowed by the ld. first appellate. The appeals by the assessee succeed partly. 9. As a natural corollary to our above finding, the Revenue s appeals fail, since there is no material with us to hold that the quantum of assessee s holding in terms of jewellery could be more than 1,224 gms or else that it was of 24 carats purity. The Revenue s appeals fail.
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1986 (6) TMI 79 - ITAT DELHI-A
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... ... ..... per cent for 12 years. The calculating the market value of the property the Valuation Officer has adopted the rates fixed by the Public Works Department while it is common knowledge that private properties built under the personal supervision are much economical than the Govt. Ones. The registered valuer has valued the building at Rs. 1,16,000 and we are of the view that though there may be scope for little variations, this value is more nearer to the correct value of this property. 13. For the above reasons, we hold that it was not established that the fair market value of the property in question was more by 15 per cent than the apparent consideration of Rs. 2,76,000. It is also not proved that the apparent consideration has not been truly stated in the document of transfer. In our view, therefore, the property in question could not be acquired and the acquisition order has to be quashed. These appeals are accordingly allowed and the order of acquisition is hereby quashed.
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1986 (6) TMI 78 - ITAT COCHIN
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... ... ..... Act and the order passed by the CGT should be quashed. 3. The ld. departmental representative on the other hand, supported the order of the CGT. 4. We have carefully considered the facts and circumstances of the case, the material on record and the arguments advanced by both the sides. On a perusal of the assessment order passed by the GTO, it is seen that the GTO has verified the passport and taken all material facts into consideration before coming to the conclusion that the assessee is a non-resident. Since the GTO has applied his mind before passing the assessment order and since the CGT could not give any reasons in his order as to how the order passed by the GTO is erroneous and prejudicial to the interest of the Revenue, we hold that the CGT has wrongly exercised jurisdiction under s. 24(2) of the GT Act and the order passed by the CGT is, therefore, quashed and the assessment made by the GTO is restored. 5. In the result, the appeal filed by the assessee is allowed.
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1986 (6) TMI 77 - ITAT COCHIN
Summary Assessment, Reopening Of Summary Assessment, Capital Gains, Sale Of Agriculural Lands In Urban Area
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1986 (6) TMI 76 - ITAT CHANDIGARH
Appellate Tribunal, Orders Of ... ... ... ... ..... investment allowance and recompute the income accordingly. Under the circumstances, all that the ITO is to do is to make a revised notice of demand because the Commissioner has almost passed an order completely withdrawing investment allowance allowed by the ITO. For the sake of natural justice and as per our inherent powers, we direct the ITO to stay the proceedings in this case till 1-9-1986. We also hereby order that the assessee s appeal being IT Appeal No. 425 (Chd.) of 1986 filed on 28-4-1986 be fixed in August 1986, out of turn. Though this order is not in respect of stay of any demand but stopping the ITO from proceeding with the case in respect of investment allowance which is bound to result into creation of demand, the assessee is directed to furnish suitable security to the satisfaction of the ITO in respect of any such amount which could be levied additionally as a consequence of withdrawal of the investment allowance. 4. Miscellaneous petition allowed pro tanto.
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