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Case Laws
Showing 101 to 120 of 2598 Records
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1985 (12) TMI 118 - ITAT HYDERABAD-B
Property Passing On Death ... ... ... ... ..... he benefit accruing therefrom was not liable to estate duty as section 40(a) did not contemplate a computation of the value of such benefit. Applying the ratio of the said Bombay High Court decision we have to hold that the house property in which the deceased resided should be valued left out and it should be held not liable to estate duty. Even with regard to other property the Assistant Controller should value only such property over which the deceased was deriving income and the value of such estate only should be considered for levy of estate duty under section 7(1), read with section 40. The said valuation of cesser of life interest in the income yielding properties bequeathed under the will of the testator should be determined as per the actuarial valuation and as per the Board s circulars which are in vogue on the subject duly taking into consideration the age of the deceased. 13. In the result, the appeal of the department is partly allowed to the extent noted above.
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1985 (12) TMI 117 - ITAT HYDERABAD-B
Capital Or Revenue Receipt ... ... ... ... ..... nd the acquisition also was made under the said Act only. The Division Bench of the Gauhati High Court states as follows In respect of interest we have held in Naren Kalita s case that the Act does not provide for awarding any interest. Rule 10(4) of the Rules framed under the Act , empowers the authority to award costs. However, the competent authority can direct the payment to be made within a specified period and in a certain manner. We have held that the arbitrator has power to award costs and the payment of interest can be made as one of the elements of the costs.... Therefore, it can be seen that the interest granted under the said Act if considered as part of the cost cannot be taxed as a revenue receipt. Therefore, viewed from any angle the orders of the lower authorities that the interest amounts are revenue receipts and, therefore, taxable do not appear to be supportable under law or on facts. Therefore, the impugned orders are set aside and the appeals are allowed.
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1985 (12) TMI 116 - ITAT HYDERABAD-B
Capital Gains, Chargeability Of ... ... ... ... ..... should be held to be no longer holding the field or should not be considered good law. Therefore, this is one of the main reasons why we hold that the previous orders of the Tribunal should not be followed. Further, the Andhra Pradesh High Court s decision as well as the Madras High Court s decision were not considered by the Tribunal while delivering the previous orders. According to us, both of them directly cover the issue and according to those decisions, no transfer is involved. Over and above everything, the Hon ble Supreme Court categorically held that even in the case of relinquishment of rights of the assessee in favour of the firm, no transfer is involved and no capital gains tax can be exigible in such cases. Following all the above, we hold that the impugned order should be set aside and we direct the ITO to delete the long-term capital gains from out of the computation of the assessee s income for the assessment year 1981-81. 4. The appeal is, therefore, allowed.
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1985 (12) TMI 115 - ITAT HYDERABAD
Exemption, Retrenchment Compensation ... ... ... ... ..... as in the Industrial Disputes Act. The scope of the section has to be understood in reference to the Industrial Disputes Act, because if every person who carries out some work in the course of his employment is to be considered as a workman, then the definition in section 17 would become meaningless. It is seen from the cases cited on behalf of the assessee and relied upon by the AAC that the persons concerned in those cases were actually governed by the Industrial Disputes Act. On the other hand, in the present case, the assessee could, by no stretch of imagination, be governed by the Industrial Disputes Act, because he was a company secretary and in charge of the company itself. The fact that he was carrying out certain clerical work does not make him a clerk so as to be regarded as a workman. In the circumstances, the assessee was not entitled to exemption under section 10(10B). We, therefore, reverse the order of the AAC and restore the assessment. The appeal is allowed.
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1985 (12) TMI 114 - ITAT DELHI-D
... ...
... ... ..... ation of meeting fees to be given to the Directors, fixation of remuneration of the Directors, designation of the First Directors of the Company and the co-option of Shri Rakesh Bansal as one of the Directors. These Resolutions did not go to establish that the assessee-company had set up any business during the previous year under consideration. 19. The authorities relied upon by the Departmental Representative, in our opinion, squarely cover the facts of the present case. 20. In view of the above, we are of the opinion that the orders of the authorities below are correct on facts and in law and as such no interference with the order of the ld. CIT(A) is called for. It has bot been the case of assessee that the computation of the income under the head Property , as done by the ld. CIT(A) is wrong or that adversely affects him. In fact, it is less than the income returned. Therefore, no interference with the computation is necessary. 21. In the result, the appeal is dismissed.
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1985 (12) TMI 113 - ITAT DELHI-D
... ...
... ... ..... would follow with respect the aforesaid order of the Tribunal and maintain the order of the AAC on this aspect. 8. So far as the other assets (Rs. 11,69,636) are concerned, there is no dispute before us that the factual position is the same as for the asst. yr. 1974-74. The Tribunal in its order for that year has held that the other assets also could not be taxed. We would follow this order on this point also and reject the objection for the Revenue. 9. So far as the second ground of appeal is concerned, we do not see that it arises either out of the order of the WTO or of the CIT(A). The WTO does not appear to have referred to s. 13(2)(a) in his order nor was it considered by the CIT(A). In any case, the shares in question (Motor and General Finance Ltd.) cannot be looked upon as an Investment . As regards the shares in Goodwill India Ltd., the value is less than the taxable limit. The result is, we see no merit in the objection for the Revenue. 10. The appeal is dismissed.
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1985 (12) TMI 112 - ITAT DELHI-D
... ...
... ... ..... d on the basis of the average salary drawn by the employee during the period of 10 months immediately proceeding his retirement whether on super-annuation or otherwise or 30,000 rupees, which ever is less shall not be included in computation. On the facts of present assessee rsquo s case the assessee retired form service, qua his then employers Cheroi Hotel, since he left India on an ILO assignment and the period involving leave encashment being 58 and a half days, s. 10(10AA) of the IT Act comes into play and exemption is warranted on facts and in law. The ground as also the appeal by the Revenue fails, but before parting, we like to say that the reliance of the Revenue on the decision of the Hon rsquo ble Karnataka High Court in Patil Vijay Kumar and Ors. vs.Unionof India and Anr. (1985) 48 CTR (Ker) 41 (1985) 151 ITR 48 (Ker) is of no help to the Revenue, since the facts there were distinguishable because there the employees continued to be in service and have not retired.
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1985 (12) TMI 111 - ITAT DELHI-D
... ...
... ... ..... ove meaning given by the Hon rsquo ble Supreme Court to the word lsquo belonging rsquo and having regard to the decision of the Special Bench of the ITAT in the case of R. K. Sawhney and various other decisions where the word lsquo belonging rsquo has been interpreted by the Hon rsquo ble Courts and which decisions are reported as CED vs. Estates of Late Sanka Simhachalam (1975) 99 ITR 370 (AP), CED vs. Jyotimoy Raha (1978) 112 ITR 969 (Cal), CED vs. Estate of Late R. Krishnamachari 1978 CTR (Mad) 125 (1978) 113 ITR 200 (Mad) and CWT vs. K. Ramachandra Chettiar (1983) 35 CTR (Mad) 126 (1983) 141 ITR 771 (Mad) we would hold that the appellant was entitled to exemption under s. 5(1)(iv) in respect of his flat at 607 Ansal Bhanwan. The decisions cited by Shri Bansal. ld. Departmental Representative are given entirely on different facts and would, therefore, be inapplicable in the context of the present case. 5. In conclusion, the Departmental appeal fails and is hereby rejected.
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1985 (12) TMI 110 - ITAT DELHI-D
Income, Assessable As ... ... ... ... ..... as to receive Rs. 54,000 from the vendee on account of the giving up of his rights of tenancy. In fact, there is no reference to the transaction being related to the rights of tenancy in the agreement to sell. The assessee had obtained a right to purchase the property in question either by himself or to his nominee and it appears he did exercise this right of getting the property in question conveyed to his nominee and in the bargain he had received Rs. 54,000. The exact nature of this receipt may be examined in the accounting period in question. It is not in my opinion relevant to examine all these things in the year under consideration because admittedly the transaction in question was not completed during the year under consideration. It was completed on5-8-1981and accordingly, it would be relevant to examine these questions in the relevant assessment year corresponding to the previous year in which5-8-1981would fall. With these observations, I allow the assessee s appeal.
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1985 (12) TMI 109 - ITAT DELHI-D
Valuation Of Assets ... ... ... ... ..... . That decision was later followed by the same High Court in Bharat Hari Singhania v. CWT 1979 119 ITR 258. Discussing these judgments the Delhi High Court held that the Tribunal is not bound by rule 1D and it was only the WTO that was bound by it. Thus, even if rule 1D is applied by the WTO, it is open to the Tribunal to consider its applicability and also to come to such a decision as the Tribunal thinks fit on the facts of that case. Respectfully following the judgment of the Delhi High Court, which is binding on us, we hold that the shares are to be valued not by applying the provisions of rule 1D unless the balance sheet date and the assessee s valuation date coincide with each other. Otherwise the shares had to be valued on yield method. 3. We, therefore, vacate the order passed by the authorities below and direct them to value the shares in the light of the observations made by the Delhi High Court in the case referred to above. 4. In the result, the appeal is allowed.
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1985 (12) TMI 108 - ITAT DELHI-C
... ...
... ... ..... . In our considered opinion, the ld. CIT(A), though he was brief in his order, has given a finding of fact that, there was no under estimation of advance-tax made by the appellant . This is so stated by him in para 6 of his impugned order. He has also recorded that there is no finding given by the IAC (Asst) at the time of regular assessment as to under what sub-section of s. 212, the assessee committed the default. On the entirety of the facts of the case, we ourselves find that it cannot be said that the assessee under estimated tax payable in advance. The assessee estimated the income of the current year on the data available on the dates of estimate made. On such facts in our considered opinion, interest under s. 216 could not be charged in the manner done by the IAC (Asst.). His order was, therefore, rightly cancelled by the CIT (A). We find no reason to interfere in his order at the instance of the Revenue. We, therefore, dismiss the appeal of revenue. Appeal dismissed.
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1985 (12) TMI 107 - ITAT DELHI-C
... ...
... ... ..... partment, then the penalty for late filing of wealth-tax return may be reduced or waived. 8. We have carefully considered submissions of both the parties. We find that the assessee had reasonable cause for the delay in filing the wealth-tax returns and the AAC was right in cancelling the said penalties. We accordingly confirm the AAC rsquo s order in the case of Swetambar Dass cancelling penalties for asst. yrs. 1969-70 to 1972-73. 9. The cross objections are not pressed and are dismissed. 10. The facts in Digvijay Kumar rsquo s case are similar to the facts in the above case of Swetambar Dass and he also filed wealth-tax return on9th Nov., 1978for asst. yrs. 1972-73. The WTO levied penalty of Rs. 3,116. AAC cancelled the penalty following his order in Swetambar Dass whih order we have already confirmed. Under these circumstances we confirm AAC rsquo s order cancelling penalty in the case of Digvijay Kumar. Cross objections in this case are also not pressed and are dismissed.
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1985 (12) TMI 106 - ITAT DELHI-B
... ...
... ... ..... to the provisions of s. 2 (22)(d), it does appear to us that the sum of Rs. 40,000 was not assessable as deemed dividend income of the assessee respondent in the asst. yr. 1974-75. In the case of Mr. Justice T. P. S. Chawla which was also relating to the asst. yr. 1974-75, the Tribunal had found that the provisions of s. 2 (22)(d) were not satisfied and that the Punjab National Bank did not have any accumulated profits as on 30th Jan., 1974. The facts in the case of Mr. Justice T. P. S. Chawla and the facts in the present case being absolutely similar we would hold that the assessee was only liable to be taxed in respect of capital gains on surrender of its 1000 shares for a consideration of Rs. 40,000. The ITO will be justified to assess the assessee in respect of short-term capital gains but there was no justification on his part to have subjected as sum of Rs. 40,000 as deemed dividend income. 5. Subject to observations as above the appeal filed by the Revenue is rejected.
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1985 (12) TMI 105 - ITAT DELHI-B
... ...
... ... ..... before the AAC, we find that the re-assessments were challenged on merits also and enhancement agitated. This aspect has not been adjudicated by the AAC. It is, therefore, considered necessary that the appeals be restored to the first appellate authority rsquo s file. 13. Shri R. N. Bara in faience accepted that after perusing the notices which were in the assessee representative possession in the Court, he did not propose to address any argument with regard to ground No. 1 (iii). The said ground is accordingly dismissed as not prosecuted. Otherwise also we reject it, there being no basis for the allegation contained therein. 14. In the result, for the purpose of statistics the Revenue appeals are partly allowed, the matters being restored to the AAC rsquo s file for adjudication on merits of the case. 15. No relief is sought in the Cross Objections, which are filed only to support the AAC rsquo s order. For the purpose of statistics, these are also dismissed as infructuous.
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1985 (12) TMI 104 - ITAT DELHI-B
... ...
... ... ..... me Court in this case explained the provisions of Contract Act particularly s. 60 and held that the normal rule was that the payment must be appropriation towards interest. We are, therefore, of the opinion that in the absence of anything in the Board s resolution passed appropriating the amount paid by the assessee towards capital and then towards interest, we hold that the payment made by the assessee should first be appropriated towards interest and then towards capital. If the amount of Rs. 12 lacs was appropriated towards interest then there is no question of remission of interest. In any case there is nothing in the resolution to suggest as mentioned by the CIT in his order that a sum of Rs. 1,20,373 was given by way of rebate out of interest of Rs. 1,28,501. For these reasons we hold that the view taken by the CIT is not proper and justified and as a consequence there is no prejudice caused to the interest of the Revenue at all. 5. In the result, the appeal is allowed.
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1985 (12) TMI 103 - ITAT DELHI-B
Income From House Property, Annual Value ... ... ... ... ..... between interpretation and judicial legislation can often be very thin. As Justice Holmes remarked, judges do legislate but then the exercise is interstitial rather than molecular. Hence, we find substance in the submissions for the revenue. The Legislature has, plainly, not included in the scope of section 23(3) connubial obligations also. The only obligation it has seen fit to take note of is the compulsion of having to work in a place other than the place at which the residential building owned by the assessee stands. Shri Dujari s submission is that Bapa Nagar can be described as the place of employment and the Golf Links flat as being situated at an other place (both localities are part of the same postal district of New Delhi being separated by less than 5 kms). This submission is only to be stated to be rejected. It is an argument of despair and does not require serious consideration. The result is, we see no reason for interference. 9. Both the appeals are dismissed.
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1985 (12) TMI 102 - ITAT DELHI-A
Penalty For Concealment ... ... ... ... ..... s available on record it could not be proved that the same is erroneous. 13. It was also contended on behalf of the assessee that other partners of the firm are not bound by the statement made by Shri Bhagwat Saran. We find no force in this argument as well. It is not in dispute that Shri Bhagwat Saran was a partner of the assessee-firm. It is well settled that a partner is an agent of the firm and the acts of a partner are binding on the firm. 14. The learned counsel for the assessee has also argued that the ITO did not examine the assessee or any of the goldsmiths and without examining them he was not entitled to reject the written submissions which had been submitted by the assessee. We are unable to accept that argument as well. Nothing could be pointed out which may suggest that it was incumbent on the ITO to examine the assessee or the goldsmiths. 15. For the reasons discussed above, we allow the appeal. The order of the AAC is set aside and that of the ITO is restored.
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1985 (12) TMI 101 - ITAT DELHI-A
Goodwill, Property Passing On Death ... ... ... ... ..... edged and, thus, has little or no risk attached to it. Yorston Smyth and Brown (Advanced Accounting, Vols. I and II, Sixth edn., p. 493) are of the view that in the former case in a great risk investment, a reasonable return might be anything from 8 per cent to 20 per cent whereas in the latter (gilt edged) the return would approximate that yielded by the Commonwealth Bonds ---4 1/2 per cent. It is the higher return in the former case, according to the learned authors, which compensates for the greater risk taken with the capital invested. They also add that generally a reasonable return on capital invested in the case of trading enterprises is usually about 10 per cent but in particular cases this may be considerably higher but usually it will not be lower. 3. Keeping in view the facts relating to the particular business under consideration here, I am also of the view that it would be reasonable to allow deduction on account of interest at the rate of 18 per cent per annum.
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1985 (12) TMI 100 - ITAT COCHIN
Computation Of, Capital, Chargeable Profits ... ... ... ... ..... 2, towards interest on sticky advances. Thus, it can be seen that an amendment to the ITO s orders in pursuance of the Commissioner (Appeals) s order dated 21-8-1985 was already made. Section 14 of the Companies (Profits) Surtax Act, clearly states that where as a result of any order made under section 154 of the Income-tax Act, it is necessary to recompute the chargeable profits determined in any assessment under this Act, the ITO may proceed to recompute the chargeable profits, and determine the surtax payable or refundable on the basis of such recomputation and make the necessary amendment. Having regard to this provision, we feel that necessary amendment would be made while working out the chargeable profits. 11. Ground Nos. 4 and 6 in the appeal for the assessment year 1976-77 are specifically given up at the time of hearing by the learned counsel for the assessee-bank. Therefore, they are dismissed as not pressed. 12. In the result, both the appeals are allowed in part.
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1985 (12) TMI 99 - ITAT CHANDIGARH
... ...
... ... ..... to acquire the plot or to get the plot. When these are the uncontroverted facts, it should not held us to adjudicate that what the assessee sold was not the plot because the assessee never got the plot. If at all he sold anything it was right to get the plot. Then in the case of Alapati Venkataramiah vs. CIT (1965) 57 ITR 185 their Lordships of the Supreme Court had held that title to the land and building and the plant machinery and electrical fittings permanently embedded thereon could not pass to the company till the conveyance was executed and registered . In the instant case, therefore, on the basis of uncontroverted facts and mainly the fact that sale deed of the plot which was allotted to the assessee was never executed in favour of the assessee by the Governor but was directly executed in favour of Smt. Jagat Kaur, it cannot survive to be a case of short-term capital gain. Action of the AAC, if therefore, reversed. 6. In the result, the assessee s appeal is allowed.
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