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Case Laws
Showing 81 to 100 of 2141 Records
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1981 (12) TMI 60 - ITAT CHANDIGARH
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... ... ..... owance is permissible for computing the income of the partners in their capacity as such. Sec. 32(2), in our opinion, contemplates that the assessment of the partner is relevant only for the purpose of ascertaining whether full effect has not been given to the depreciation allowance. 11. In the result, we hold that where full effect has not been given to the depreciation allowance in the assessment of the partners the unabsorbed allowance should be allowed to be set off by the registered firm in the succeeding year . 6. We find that there are two judicial views on the issue. It is now well settled that when in the interpretation of a taxing statute, two reasonable views are possible, the one that favours the subject is to be adopted. Even on this principle, the claim of the assessee is admissible. 7. In view of what is stated above, we direct that the claim of the assessee for unabsorbed depreciation to the extent of Rs. 20,541 be accepted. 8. Appeal of the assessee allowed.
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1981 (12) TMI 59 - ITAT CHANDIGARH
Method Of Accounting, Year In Which Receipt Taxable ... ... ... ... ..... st warranty services could vary depending upon when the period was over and whether it fell within a particular accounting period. Therefore, to avoid difficulties, the procedure adopted by the assessee to take the post warranty service charges in a separate account so labelled and kept it so against disbursements required for this purpose, was justified on the facts of the case. In our opinion, this method followed by the assessee was in accordance with law and the authorities below erred in disturbing the same. This case also becomes apparent from the fact that subsequently the entire amount practically was spent by the assessee and only a sum of Rs. 6,316.68 which was left unexpended was transferred to profit and loss account in the subsequent year. In this view of the matter, the addition made by the ITO and partly sustained by the Commissioner (Appeals) is unjustified. We delete the entire addition by reversing the order of the Commissioner (Appeals). 10. Appeal allowed.
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1981 (12) TMI 58 - ITAT CHANDIGARH
Income From House Property, Annual Value ... ... ... ... ..... d by the Parliament was for investment in property for residential purposes during a limited period. But it will be adding to the words in the statute to stretch their meaning to the limit to which the ITO went to hold that only when a residential unit is occupied for purposes of residence, exemption is available under the Act. Therefore, he erred in not allowing exemption to the assessee for all the six flats in the assessment year 1978-79 and for 7 flats in the assessment year 1979-80, which had been accepted to have been constructed as residential units within the statutory period provided. The revenue relied on the ratio of the Andhra Pradesh High Court judgment in D. R. Sunder Raj v. CIT 1980 123 ITR 471 but I find that the case law is not applicable to the issue before me because that was on the interpretation of section 23(2) and not section 23(1). I set aside the orders of the authorities below on this point and direct that necessary relief be allowed to the assessee.
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1981 (12) TMI 57 - ITAT CALCUTTA-E
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... ... ..... er taking into consideration the rival submissions, we are unable to sustain the addition because the comparable cases on which the ITO placed his reliance wherein liquor Rs.16 and Rs.17 per bottle, was not put to the assessee. On the other hand, the assessee the pointed out the cases of M/s. Daya Singh Lekh Raj and Co., Faridkot, and M/s. Deep Kumar Naunidh Singh, Jaitu Mandi, where much lower rate of net profit has been accepted bythe revenue. In case of M/s. Daya Singh Lekh Raj, the net profit disclosed gave a rate of 4.7 whereas in the case of M/s. Deep Kumar Naunidh Singh, the net profit rate disclosed gave rate of 3.1 against which the ITO enhanced the rate to 6.3 in the first case and 3.6 in the second case. In the assessee s case, the rate disclosed by the assessee itself was 8-1/2 , which was much higher than the rate adopted in the other cases. The assessee s disclosed result, therefore, should have been accepted. 6. In the result, the assessee s appeal is allowed.
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1981 (12) TMI 56 - ITAT CALCUTTA-E
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... ... ..... of Gheru Lal Bal Chand whereas over-ruled another decision of the Division Bench in the case of Nadu Shah Kapur and Sons and also dissented from the Gujarat, Bombay, Karnataka and Madras High Courts on this issue. In the said case, their Lordships held that expenditure on any type of hospitality whether lavish or frugal is not to be allowed beyond the prescribed limits under the IT Act. The ld. counsel for the assessee in respect of this issue though submitted that it is customary, neither he was able to give any comparative case in the same type of trade Yamuna Nagar nor could give any information pertaining to earlier years from which it could be substantiated that it was customary that the assessee was obliged to spend this. Following the Full Bench decision of the Punjab and Haryana High Court in the case of (1981) 23 CTR (P and H) (FB) 319 131 ITR 336 we uphold the finding of the lower authorities on this issue. 6. In the result, the assessee s appeal is partly allowed.
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1981 (12) TMI 55 - ITAT CALCUTTA-E
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... ... ..... old while dealing with the two contentions of the assessee. When once we rely upon the terms of the agreement against the assessee in respect of its claim for depreciation and initial depreciation, we are constrained to accept its alternative contention pertaining to deduction of rent payment. The second contention of the assessee is, therefore, accepted. In short, the assessee fails in ground No. 5 of its appeal whereas succeeds in ground No.6. 12. The seventh and the last ground of the assessee s appeal is in respect of disallowance of Rs. 30,778 claimed on account of gratuity which was not allowed by both the lower authorities. An identical issue has been laid at rest by us in the assessee s own case by our order of even date for the immediately preceding year, as the facts and submissions of both the parties are same and identical. For the very same reasons in the said order, we accept the claim of the assessee. 13. In the result, the assessee s appeal is partly allowed.
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1981 (12) TMI 54 - ITAT CALCUTTA-A
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... ... ..... ssible by the denial both by the transferee and transferor. In fact, they denied about any consideration other than what has been stipulated in the instruments of transfer. It has been their case that the property was sold by transferor to the transferee bonafide. There is also no evidence nor any suggestion that the transferee paid more than what has been stated in the instrument. The circumstances brought on record also do not show that the presumption has been rebutted by the transferee and the transferor. Thus, even if s. 269c(2) is brought into picture, the transfer is out of the purview of acquisition proceedings, as the presumption arising thereunder has been rebutted in this case. We may once again repeat that according to us, the fair market value cannot be said to have exceeded 15 per cent of the apparent consideration and, therefore resort to s. 269(2)has no place. In the result, the orders of acquisition in both the cases are quashed. 13. The appeals are allowed.
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1981 (12) TMI 53 - ITAT CALCUTTA
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... ... ..... R 238(SC)with particular reference to the observation of their Lordships at page 242 and also the judgment of the Karnataka High Court in the case of A.S. Krishna Setty and Sons vs. Add. CIT(1975)100 ITR 587(Kar) to support his proposition. 5. On the other hand, the ld. counsel for the assessee submitted that in the case of the assessee, the Tribunal has clearly held that there was no transfer and that from the same set of facts a different decision could not follow in the case of the assessee. He fully relied on the judgment of the Tribunal and pleaded that the orders made by the AAC were fully justified. 6. We find that the judgment of the Tribunal in the case of the assessee in ITA No. 139 (ASR)/1980 referred to supra for the asst.yr. 1975-76 fully covers the case and we have abstracted a portion thereof above to show that the matter was fully considered and decided in favour of the assessee. In view of this, the appeals of the revenue are dismissed. 7. Appeals dismissed.
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1981 (12) TMI 52 - ITAT CALCUTTA
Business Loss, Business Deduction ... ... ... ... ..... ce were in furtherance of this transaction. The only flaw in all the transactions is that the goods were considered as not according to the description under which they could be imported. The assessee had done all this in the ordinary course of business. The loss has arisen in its ordinary course of business without any infringement of law which should be considered as penal in nature. The venial breach of law should not stand in the way of the assessee to make claim with regard to the impugned sum as revenue expenditure as it in fact has gone and would have otherwise been stock-in-trade of the assessee. The expenditure is revenue in nature and is admissible. It is directed to be allowed. In coming to this conclusion, we have carefully considered the authorities cited by both the sides and if we do not refer to them in particular in extenso, we do not consider it necessary. 18 to 20. Paras 18 to 20 are not printed here as they involve minor issues. 21. Appeal allowed in part.
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1981 (12) TMI 51 - ITAT CALCUTTA
Charge Of Tax When Beneficiaries Unknown, Trust ... ... ... ... ..... ecific trust whenever it suits them tax-wise. In order to prevent such manipulation, it is proposed to provide that unless the beneficiaries and their shares are expressly stated in the order of the Court or the instrument of trust or wakf deed, as the case may be, and are ascertainable as such on the date of such order, instrument or deed, the trust will be regarded as a discretionary trust and assessed accordingly. From the above legislative intent it is clear as regards the provisions of section 164 prior to the aforesaid amendment. Obviously the amendment has been brought about to overcome the decision in the Nizam s case referred to above. This further strengthens our viewpoint that as section 164 existed prior to the amendment what is relevant to be seen is the position as at the end of the accounting year. 13. In the result, therefore, the assessee is not liable to be taxed at the maximum rate under section 164. The appeal filed by the revenue is accordingly dismissed.
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1981 (12) TMI 50 - ITAT BOMBAY-D
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... ... ..... her transaction in land did not develop the land, did not have any organisation for the alleged trading and, indeed, being salaried, employees, they did not have any flair for or knowledge of trading. Taking into account the totality of the circumstances. I hold that this is a case of the realisation of investment and not of an adventure in the nature of trade. 6. This does not mean, however, that the consequence is that no income at all from the sale of the land would be includible in the total income. The income, if any, may be chargeable as a capital gain, unless it is found, e.g., that it was exempt or the relevant allowable expenditure exceeded the sale proceeds, etc. I direct that the income, if any, shall not be charged under the head business , but, at the same time, I make it clear that while giving effect to this order, it will be open to the ITO, to consider charging it in accordance with law under any other head of income. 7. In the result, the appeal is allowed.
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1981 (12) TMI 49 - ITAT BOMBAY-D
Business, Adventure In The Nature Of Trade ... ... ... ... ..... other transaction in land, did not develop the land, did not have any organisation for the alleged trading and, indeed, being salaried employees, they did not have any flair for or knowledge of trading. Taking into account the totality of the circumstances, I held that this is a case of the realisation of investment and not of an adventure in the nature of trade. 6. This does not mean, however, that the consequence is that no income at all from the sale of the land would be includible in the total income. The income, if any, may be chargeable as a capital gain, unless it is found, e.g., that it was exempt or the relevant allowable expenditure exceeded the sale proceeds, etc. I direct that the income, if any, shall not be charged under the head Business , but at the same time, I make it clear that while giving effect to this order, it will be open to the ITO, to consider charging it in accordance with law under any other head of income. 7. In the result, the appeal is allowed.
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1981 (12) TMI 48 - ITAT BOMBAY-C
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... ... ..... ct that substantial hundi loans were found to be genuine on detailed verification and in the absence of any material placed before us to persuade us to take a view different from the view taken by the Commr. (A), we are inclined not to interfere with the decision in regard to the additions as made in respect of the hundi loans of the respective years under appeal. 9. This brings us to consider the addition for the asst. yr. 1963-64 in regard to the gross profit. So far the addition as aforesaid for the same year is concerned, it is noticed that the assessee had filed full details before the Commr. (A) on examination of the said details had come to the conclusion that the assessee had shown the proper gross profit. In view of this fact and in the absence of any material so controvert the position which was placed before the Commr.(A) we are of the view that the decision reached by the Commr. (A) does not call for any interference. 10. In the result, the appeals are dismissed.
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1981 (12) TMI 47 - ITAT BOMBAY-A
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... ... ..... for, with the result it was considerably damaged. The damaged goods were sold in lot and the assessee could realise Rs. 6,681. The balance had been claimed as loss. We do not find anything to say that the order of the CIT(A) is wrong. Shri Vohra submitted that no details were available. But all the details had been given to the ITO. The opening stock is ascertainable from the trading account. The details of the sales had also been furnished. We find no merit in this ground raised by the department. 14. The other grounds for the asst. yr. 1972-73 are the same as the grounds taken in 1971-72 and for the reasons stated therein, we reject the department s contentions. 15. For the asst. yr. 1973-74, two grounds are raised against the sale of Mewar House and against the income in respect of the properties transferred to the joint family. Both these grounds are already decided against the department in the paragraphs above. 16. In the result, the departmental appeals are dismissed.
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1981 (12) TMI 46 - ITAT BOMBAY-A
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... ... ..... ne, action u/s 148 is called for . So, from the aforesaid reasons recorded, it is clear to us that the ITO has not reopened the assessment on information . from external source, which is the basis for taking action u/s 147 (b) of the Act. The reopening of the assessment is manifestly on the basis of the change of opinion, which is not the basis for taking action u/s 147(b) of the Act. The reopening of the assessment is manifestly on the basis of the change of opinion, which is not the basis for taking action u/s 147(b) of the Act. Therefore, in this situation of the matter, we hold that the reopening is not valid. This view also taken by the CIT (Appeals), though for different reasons, and as such, we uphold his order on the basis of our reasons stated above. Since we have held that the reopening is not valid, and is such, we do not deem it proper to go into merits of the case. Accordingly, we confirm the order of the CIT (Appeals). 7. In the result, the appeal is dismissed.
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1981 (12) TMI 45 - ITAT AMRITSAR
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... ... ..... nableness of the amount of expenditure. The claim for deduction of an amount of expenditure of the above nature will have to be judged in the light of the two tests given above-genuineness of the expenditure and the reasonableness of the expenditure. Since the lower authorities have not recorded a finding on any of these tests, we are unable to reach a finding about the allowability of the claim. In our view, the issue should go back to the CIT (A), who will reach a finding after recording a finding on genuineness of the need of the assessee as well as the reasonableness of the expenditure incurred by him in rendering monetary assistance to the Excise Department. 6. There is a third issue raised by the assessee against the disallowance of Rs. 500. After perusing the findings of the CIT (A) in para 5, we are not inclined to find that the assessee has made out a case for our interference with the addition. 7. In the result, the appeal, filed by the assessee, is partly allowed.
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1981 (12) TMI 44 - ITAT AHMEDABAD-B
Business Expenditure ... ... ... ... ..... n deed and the provisions of section 30 read with section 48(b)(iv) support the claim of the assessee and the Commissioner was not justified in directing the ITO to frame a fresh assessment in accordance with his observations. 9. The second ground raised by the assessee is that the Commissioner has no jurisdiction to take action under section 263 as the appeal has already been decided by the Commissioner (Appeals). We heard the rival contentions. It is pointed out that the issue involved has not been dealt with by the Commissioner (Appeals) in his order dated 1-10-1981. If that is the position, we do not agree with the submission of the assessee s counsel that the Commissioner has no right to invoke the provisions of section 263 when the point regarding section 263 was not dealt with by the Commissioner (Appeals). Therefore, we reject the claim of the assessee. 10. In the result, we reverse the order of the Commissioner and restore the order of the ITO. The appeal is allowed.
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1981 (12) TMI 43 - HIGH COURT OF JUDICATURE ANDHRA PEADESH AT HYD.
Seizure of goods - Burden of proof - Customs - Notified goods - Confiscation ... ... ... ... ..... o show the whisky bottles in the dicky of the car. A-1 admitted in his statement, Ex. P. 9, that he never told his father about his business transaction - purchase and sale of foreign whisky bottles and that he had no interest in the matter. According to him, he purchased the whisky bottles without the knowledge of his father. In the circumstances, the knowledge of the possession of foreign whisky bottles can be attributed to A-2. Therefore, the acquittal of A-2 shall stand. In so far as A-1 is concerned, he knew that the goods are smuggled goods and purchased them from a stranger to make profit. The value of goods is estimated to at Rs. 13,600 so he is guilty of an offence under Section 135(1)(b)(ii) of the Act. 22. The acquittal of A-1 is set aside. A-1 is convicted under Section 135(1)(b)(iii) of the Customs Act, and is sentenced to pay a fine of Rs. 1,000 (Rupees one thousand) and in default to suffer rigorous imprisonment for six months. 23. The appeal is partly allowed.
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1981 (12) TMI 42 - HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Sugar year - Excess production rebate - Determination of average production ... ... ... ... ..... e. Therefore, to read it not referring to production in one or more sugar years but to the relevant period in one or more sugar year is not sustainable in law. 7. In view of discussion above, it is clear that the petitioner is entitled to rebate on the quantum of sugar (4104 quintals) produced during the period October 1, 1974 to November 30, 1974, in terms of paragraph 1(b) of the Notification. The contrary view taken by the Assistant Collector, the Appellate Collector and the Government of India in orders Annexures P. 3, P. 4 and P. 6 respectively cannot be sustained. 8. In the result, the orders of the Assistant Collector, the Appellate Collector and the Government of India Annexures P. 3, P. 4 and P. 6 are quashed. The authorities are directed to grant rebate to the petitioner to the extent of the quantum of sugar produced in the petitioner s mill during the period October 1, 1974 to November 30, 1974, in terms of paragraph 1(b) of the Notification. No order as to costs.
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1981 (12) TMI 41 - BOMBAY HIGH COURT
Windscreen for Motor Vehicles are not classifiable as glass or glassware - Excise duty ... ... ... ... ..... ugned decisions and determinations firstly the one dated 4th June, 1979, a copy whereof is annexed to the petition as exhibit D-a, secondly the one dated 28th August, 1979, a copy whereof is annexed as Exhibit D-2 to the petition and thirdly the one dated 21st January, 1980 a copy whereof is annexed as Exhibit D to the petition as also the Trade Notice No. 240 of 1979, dated 10th January, 1980, a copy whereof is annexed as Exhibit C to the petition in so far as they relate to automobile windscreens, flat and curved. After filing this writ petition the petitioners had applied for an interim injunction restraining the respondents from collecting the excise duties under said Tariff Item No. 23A(4). As a condition for granting the interim injunction the Court had required the petitioners to give a guarantee of a Nationalised Bank. As the petitioners have succeeded, the said guarantee shall stand discharged. The respondents shall pay to the petitioners the costs of this petition.
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