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Case Laws
Showing 121 to 140 of 241 Records
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1983 (1) TMI 123 - ITAT CALCUTTA-D
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... ... ..... High court in the case of CIT vs. Rampur Timber and Turnery Co. Ltd (1973) 89 ITR 151 (All) has held as under The benefit of unabsorbed depreciation could be availed of by an assessee in any subsequent year without satisfaction of the preconditions attaching to sub-section (1) of section 32 of the Act and it not necessary that in such subsequent year the assessee actually carried on the business and the asset in question was used for the purpose of the assessee s business. If in any particular year there is no income from business but there is income from other heads, the unabsorbed depreciation carried forward from the past year will be available for set off against such income from other heads . 7. Bearing in mind the principle laid down in the aforementioned cases we are of the opinion that the assessee was entitled to the benefit of set off of unabsorbed depreciation of earlier years against the income for the year under appeal. 8. In the result the appeals are allowed.
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1983 (1) TMI 122 - ITAT CALCUTTA-A
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... ... ..... department. The facts before the Bench were inadequate. The matter was accordingly sent back in view of the observations made by the Bench and after giving an opportunity of being heard to the ITO. We are informed that the same has no been decided. The facts in the present case are more or less similar. Of course one of the contentions of Sri Ramaswamy was that year there was no evidence that none of the horses to the sale of which the income related to had been used for racing but there was positive evidence in the present year. We would refrain from expressing any opinion since the CIT(A) has not purported to decide the case of merits. 6. Accordingly we accepts the appeals quash the order of the CIT(A) and direct him to decide the same afresh presumably along with or in consonance with the decision in the assessee s case in respect of the asst. yr. 1974-75 which has already been sent back. 7. For statistical purpose this appeal shall be deemed to have been allowed as such.
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1983 (1) TMI 121 - ITAT CALCUTTA-A
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... ... ..... e sustained. 5. It was next argued by the representative of the assessee that the mere default is not sufficient for levy of penalty and reference was made to Hindusthan Steel Ltd vs. State of Orissa (1972) 83 ITR 26 (SC) for the proposition that merely because there is a default it is not imperative that penalty should be levied in every case. It was also urged that a nominal penalty would meet the ends of justice. We are afraid we are not inclined to accept this contention. By not paying the advance-tax within time the assessee deprived the state Exchequer of a huge amount of money for quite some time. We are also informed that there is no provision for payment of interest for this delayed payment. In these circumstances we are of the opinion that the fixation of penalty at Rs. 5000 errs, if at all on the side of leniency. Accordingly we direct that the order of the CIT(A) shall be set aside and the order of the ITO restored. 6. The appeal is partly allowed in these terms.
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1983 (1) TMI 120 - ITAT CALCUTTA-A
Advance Tax ... ... ... ... ..... od that does not by itself establish that the estimate which is filed is not only false but also false to the knowledge of the assessee. Before the expiry of the accounting year, an assessee may or may not have a full picture of the result of the income earned in that year. The time for making that calculation comes at the time of filing of the return. Therefore, unless there is evidence to indicate that 10 or 12 days prior to or after the close of the accounting period the assessee knew or had reason to believe that the estimate filed by him was false, it cannot be presumed, simply because he had filed it after the expiry of the accounting year, that he had such knowledge. In the present case, not a word has been suggested by the ITO that the estimate was untrue to the knowledge of the assessee. In these circumstances, the penalty under section 273(a) obviously cannot be maintained. Accordingly, we accept both the appeals and cancel the penalties. 6. The appeals are allowed.
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1983 (1) TMI 119 - ITAT BOMBAY-E
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... ... ..... ut that in IT Circular No. 261 dt. 8th August, 1979, published in (1979) 120 ITR (St.) 7, the CBDT has stated that in terms of r. 80 of Compilation of the Treasury Rules, if a cheque or draft tendered in payment of Government dues and accepted under the provisions of r. 79 (ibid), is honoured on presentation, the payment is deemed to have been made on the date on which it was handed over to the Government bankers. 10. The above discussion will show that all the decisions of the Supreme Court and of the various High Courts, including the Bombay High Court, are in favour of the assessee and issued against the revenue and that even the Circular by the CBDT is also in favour of the assessee s case. It is, therefore, clear that there can be no two opinions as contented by the revenue to say that s. 154 of the Act could no be invoked for rectifying the mistake pointed out by the assessee. We, therefore, confirm the decision of the Commissioner (A) and dismiss the revenue s appeal.
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1983 (1) TMI 118 - ITAT BOMBAY-E
Annual Value, House Property ... ... ... ... ..... sessee, for a higher right like letting be would be more than Rs. 800. In any case having regard to the facts, I see no reason to put the benefit of the annual value even if one acts under the provisions of section 23(1)(a) at an amount lesser than the one adopted by the ITO. The appeals are dismissed on this ground. 6. For the assessment year 1978-79, another ground raised relates to the levy of interest under section 217(1A) of the Act. The AAC upheld the interest levied on the ground that the assessee has not filed an estimate under section 212(3A) of the Act, such an estimate being not available on the file. The learned counsel for the assessee has pointed out before me the acknowledgement produced of such estimate having been filed before the ITO on 27-2-1978, the acknowledgement being noted on a copy thereof. In view of this clear evidence verified by the learned counsel for the department, there is no case for levy of interest. The appeal for 1978-79 is partly allowed.
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1983 (1) TMI 117 - ITAT BOMBAY-C
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... ... ..... wealth as defined by section 2(m) and on which wealth-tax is not payable, is in out opinion, not chargeable to wealth-tax. The amendment in 1964 of section 2(m)(ii) by substituting the words any assets in respect of which wealth-tax is not payable under this Act by the words any property in respect of which wealth-tax is not chargeable under this Act was not for the benefit of the assessee but was to make the intention of the Parliament clear that where debts had been incurred on the security of or in relation to the exempted assets, as covered by section 5(1) of the Act, then those debts are not deductible under section 2(m)(ii) of the Act. That being the position, we are setting aside the order of the Appellate Assistant Commissioner of Wealth-tax, restore that of the Wealth-tax Officer on this point. In view of this, we do not find any merit in the submissions of Shri Butani. 6. In the result, both the departmental appeal and the assessee s cross-objections are dismissed.
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1983 (1) TMI 116 - ITAT BOMBAY-C
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... ... ..... method of accounting followed by the assessee over a few years and accepted by the revenue was rejected in a subsequent year. The department s case was that the method of accounting accepted in the earlier year did not disclose the profits earned by the assessee properly. The Gujarat High Court disapproved of the refusal of the department to follow the method which had been accepted for the prior years without any valid reason. In the case before us, the assessee is still stronger position. As we had pointed out, the change in method would be adversely affecting the department because they cannot reach the profit, if any, made by the assessee in the first tow years. It is in the department s own interest therefore, not to change the method of accounting. Since we find that there is no case for the change in the method of accounting, it is not necessary to go the second issue, i.e. whether the estimate of 10 per cent is valid or not. 11. In the result, the appeal is allowed.
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1983 (1) TMI 115 - ITAT BOMBAY-C
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... ... ..... ent order u/s. 40A(5). This is clear from the rectification order. The assessee did not question the assessment and it had become final. The ITO has now only rectified a mistake apparent on the record with the regard to this assessment. He is not switching over form one section to another or applying a different provision. If he had originally worked out the disallowance u/s. 40(c) and is now trying to switch over to s. 40a(5) and make further disallowances it will not be a case of correcting a mistake apparent on the record, because, there is a debate as to which of the two provisions apply to an employee director. But, as already stated, the assessment, which has become final, works out the disallowance u/s. 40A(5) and, in our view, the ITO is entitled to rectify a mistake which is apparent form the record with regard to the disallowance so worked out. We, therefore, find reason to interfere with the order of the Commissioner (A). 6. In the result, the appeal is dismissed.
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1983 (1) TMI 113 - ITAT BOMBAY-B
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... ... ..... he assessee. The case of the assessee is a shade stronger because the assessee acquired not the same type of asset but different types of assets. Similarly, we do not find any force in the argument raised for the department based on Narasimhan s case. That was a case of reduction of capital. The question before the court was whether a reduction of capital and the consequent refund of money to the share-holders involved any transfer for the purpose of capital gains. The court held that there was no transfer because the share-holders remained the same and their share-holding also remained the same. Nothing was exchanged or transferred. We do not find anything in that case to further the case of the revenue. 11. For the above reasons, we hold that the assessee was entitled to treat the capital loss of Rs. 68,236 as a short-term capital loss. We direct that the claim of the assessee be accepted and the assessment be modified accordingly. 12. In the result, the appeal is allowed.
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1983 (1) TMI 112 - ITAT BOMBAY-B
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... ... ..... part from the above, he stated that the decision of the Tribunal in the case of Vasudevarao Dempo has held that relief u/s 5(1)(iv) and 5(1)(iva) of the Act should be separately allowed to the husband and the wife upto the maximum permissible amount under the law, but, here again, the department has not accepted the said decision of the Tribunal. Shri B. N. D Souza, the ld. representative for the assessee on the other hand, supported the order of the AAC relying on the decision of the Tribunal in the case of Vasudevarao Dempo and that of the Bombay High Court in the case of Purushottam Gangadher Bhende. 6. We have considered the contentions of both the parties as well as the facts on record. In our opinion, the decision of the AAC is based on sound authority. Respectfully following the decision of the Tribunal in the case of Vasudevarao Dempo and that of the Bombay High Court in P.G. Bhende, we uphold the decision of the AAC. 7. In the result, the four appeals are dismissed.
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1983 (1) TMI 111 - ITAT BOMBAY-B
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... ... ..... part from the above, he stated that the decision of the Tribunal in the case of Vasudevarao Dempo has held that relief u/s 5(1)(iv) and 5(1)(iva) of the Act should be separately allowed to the husband and the wife upto the maximum permissible amount under the law, but, here again, the department has not accepted the said decision of the Tribunal. Shri B. N. D Souza, the ld. representative for the assessee on the other hand, supported the order of the AAC relying on the decision of the Tribunal in the case of Vasudevarao Dempo and that of the Bombay High Court in the case of Purushottam Gangadher Bhende. 6. We have considered the contentions of both the parties as well as the facts on record. In our opinion, the decision of the AAC is based on sound authority. Respectfully following the decision of the Tribunal in the case of Vasudevarao Dempo and that of the Bombay High Court in P.G. Bhende, we uphold the decision of the AAC. 7. In the result, the four appeals are dismissed.
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1983 (1) TMI 110 - ITAT BOMBAY-B
Deemed Dividend ... ... ... ... ..... by such person and partly by one or more of his relatives. This will indicate that owning beneficial interest is different from the ownership of shares by relatives and that where the Legislature intended that the shares held by relatives should also be reckoned for the purpose of determining whether a person has substantial interest in a company, it has been specifically provided for. We, therefore, hold that the assessee cannot be said to be the beneficial owner of the shares standing in the name of his minor sons and that the amount standing to the debit of the assessee in the accounts of the company cannot be deemed to be dividend under section 2(22)(e). We may also state that in coming to this conclusion, we have accepted the contention of the department that the assessee should be deemed to be the guardian of his minor sons in spite of the fact that the mother has been entered as a guardian in the share register of the company. 9. In the result, the appeal is dismissed.
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1983 (1) TMI 109 - ITAT BOMBAY-B
Capital Gains, Charitable Purpose, Educational Institutions, General Public Utility, Profit On Sale, Religious Purpose
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1983 (1) TMI 108 - ITAT BOMBAY-B
Balancing Charge, Cost Of Acquisition ... ... ... ... ..... f the difference in value between the cost or the written down value and the scrap value. The only condition is that the asset should be a building, machinery, plant or furniture and, further, it should be sold, discarded, demolished or destroyed. As far as the first condition is concerned, in view of the various decisions starting from CIT v. Elecon Engg. Co. Ltd. 1974 96 ITR 672, it is easy to hold that the distribution rights consisting of various prints of the films are plant. The second condition is also satisfied if we keep in view that the life of the asset is only about two years at the most. At the end of the 2 year period, as far as the assessee is concerned, it had written it off as of no further value. This would amount to discarding within the meaning of section 32(1)(iii). So, the assessee will be entitled to claim the deduction in the second year. 13. For these reasons, we will uphold the order, of the Commissioner (Appeals) and dismiss the departmental appeal.
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1983 (1) TMI 107 - ITAT BOMBAY-A
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... ... ..... 15 or more or less should be made has also to be decided. 6. Applying, therefore, the general principles as above laid down by the court and having in view the warning given by the Supreme Court not to bring the valuation process into a hard and fast rule or straight jacket, we have to arrive at the value of the shares in the present case. The value given by the Asstt. Controller of Rs. 513 is based on the break-up value, but no reduction as in r. 1D is given. The yield method followed by the Accountable Persons of Rs. 203 and Rs. 304 likewise is based on certain assumptions with regard to interest, reserves etc., not all of which can be accepted. In the present case, to our knowledge, there is no evidence of manipulation of the valuation or yield by the proprietors of the business. Having regard to all these facts and the various figures presented to us, we would put the value of these shares at Rs. 325 which would meet the ends of justice. 7. The appeal is partly allowed.
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1983 (1) TMI 106 - ITAT BOMBAY-A
Discretionary Trust, Net Wealth ... ... ... ... ..... he word travel precedes the word concession . The question that arises for consideration is whether the word travel should be read both with the words concession and assistance or with the word concession only . Having regard to the ordinary rules of grammar and the context in which these words are used, we hold that the word travel should be read both with the words concession and assistance . There should, thus, be no difficulty in further holding that the expression travel assistance cannot but mean and refer to some kind of travelling assistance. The expression in connection with proceeding on leave or after retirement of service, etc. again defines the kind of travel, the value of concession or assistance in regard to which is exempt. In this view of the matter, we hold that the hotel charges at the place where the assessee decided to spend his leave do not fall under section 10(5)(ii). The disallowance is, therefore, confirmed. 8. In the result, the appeal is dismissed.
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1983 (1) TMI 105 - ITAT BOMBAY-A
Indirect Transfer, Minor Child ... ... ... ... ..... fited uncertain and since the assessability under section 64 refers to the income of the amounts transferred without consideration that would apply to the income of these shares received by the wife or any newly born minor children of the assessee at that time-also a matter of uncertainty and conjecture. Section 64 can apply only to a definite and ascertainable state of things. That in the future and that too after a period long beyond the minority of any existing person an indirect transfer of assets to the wife or minor child could be anticipated or presumed, would not justify the application of section 64 to those assets, Under this clause, therefore, of the trust deed, no tax liability under section 64 can arise. 12. We have, therefore, no hesitation in holding that in the light of the facts as above, the income from the trust cannot be assessed in the hands of the assessee either during the 22 years accumulation period or thereafter. 13. The assessee s appeal is allowed.
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1983 (1) TMI 104 - ITAT AMRITSAR
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... ... ..... ecision is concerned, it is, Prima facie, inapplicable. In the Chandigarh decision, two firms had mutually transferred their capitals. The one firm has transferred its capital in exchange for the capital of the other firm. Transfers were effected on the same date and involved the same amount. The features that marked the Chandigarh case were not present in the present case. It was not a case of transfer of capital by two firms. It was a case of transfer of surplus funds by the partners of the firm. We are not aware of any provision by which a partner can be prevented from transferring his surplus funds lying to his credit in the account of the firm to another destination he chooses. Therefore, in our view, the two decisions, which were relied upon by the assessing officer were inapplicable to the facts of the present case and could not be relied upon to change our finding recorded above. We uphold the finding of the CIT (A) and dismiss the appeal. 9. The appeal is dismissed.
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1983 (1) TMI 103 - ITAT AMRITSAR
Assessment Year ... ... ... ... ..... to be a provision lacking retrospectivity, even when it is considered as a technical or a substantive provision. In this view of the matter, I would hold that the assessee was entitled to claim that the value adopted for the assessment year 1971-72 was also to be adopted for the years in issue. 3. As for the statement of the fact as also the finding on the second issue, raised in appeal, I am in full agreement with my learned brother. Per Shri K.C. Srivastava, Accountant Member--We having differed in opinion on the following point in the above appeals, we proceed to state the point on which we differ so that the President may get the point decided by one or more of the other members of the Tribunal. 2. The point of difference Whether the provisions of section 7(4) of the Wealth-tax Act are applicable to the case of the assessee for the purpose of valuation of residential property at 696, Model Town, Jullundur in respect of the assessment years 1973-74, 1974-75 and 1975-76 ?
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