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Case Laws
Showing 121 to 140 of 224 Records
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1984 (4) TMI 106 - ITAT DELHI-A
Assessment Proceedings, Industrial Company, Mistake Apparent From Record, Rate Applicable ... ... ... ... ..... The purpose of this circular is merely to emphasise that we should not take advantage of an assessee s ignorance to collect more tax out of him than is legitimately due from him. 6. In view of the observations of their Lordships of the Hon ble Supreme Court as also the Circular (Instructions reproduced as above), read with the categorical finding of the learned Commissioner (Appeals), we are of the opinion and do hold accordingly, that the orders of the lower authorities merit to be set aside, which we do. However, we restore the issue to the file of the learned assessing officer with the directions that the issue be decided afresh and correct rate of tax charged on the assessee in accordance with and subject to the provisions of the Act. In the interest of justice the assessee will be called upon to place on his file the material required for fresh and correct determination of the issue involved. The appeal by the assessee shall be taken to have been allowed for statistics.
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1984 (4) TMI 105 - ITAT CHANDIGARH
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... ... ..... 7. The value which is not includible in the net wealth of the assessee under s. 5(1)(iv) is only Rs. 1 lac. In such a situation, in our opinion, there is not justification for apportioning the loans in the ration of exempt and non-exempt value of the house. In such circumstances, the assessee will be entitled to deduction of the entire loans for both the assessment years as claimed as against the liabilities allowed by the AAC. Even otherwise, when two views on the subject are possible, the view favourable to the assessee has to be adopted in view of the Supreme Court judgment reported in CIT vs. Vegetable Product Ltd. 1973 CTR (SC) 177 (1973) 88 ITR 192 (SC). The Madras High Court is directly in favour of the assessee while Gujarat High Court supports the case of the Revenue. As such two plausible view are possible in the matter. In such circumstances, we adopt the view which is in favour of the assessee and allow the appeals. 6. In the result, both the appeals are allowed.
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1984 (4) TMI 104 - ITAT CHANDIGARH
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... ... ..... er in respect of which the assessee has no explanation, or, in other words, an explanation which has been rejected because the assessee s contention was that it was out of cash lying at home out of his savings that he made the gift. In quantum proceedings, the assessee lost the matter on many a reason such as he has not given gift to his real sister, i.e., assessee aunt, to whom the assessee had given a gift etc. All these possibilities and question s posed by the Revenue, cannot be enough for sustenance of penalty either for late filing of return or for concealment. Once we look to the explanation, which finds place in the ITO s order of penalty for concealment and also go through the proviso given thereunder, we find that the proviso takes the assessee out of the mischief, of the explanation and the assessee, therefore, should not have been visited by concealment penalty as well. Both the penalties, are, therefore, cancelled. 6. In the result, both the appeals are allowed.
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1984 (4) TMI 103 - ITAT CHANDIGARH
Assessment Proceedings, Audit Objection, Original Assessment, Reassessment Proceedings ... ... ... ... ..... under this Act shall be commenced-- (b) in the case of a reassessment, after the expiration of three years from the date of assessment of such property to estate duty under this Act. The last date, therefore, comes to be 11-8-1979 by which proceedings should have been initiated whereas the notice moved out of the Assistant Controller s file on 19-9-1979. The question of its service earlier than 11-8-1979 was an impossibility. The second reassessment proceedings even otherwise are invalid as it is the same reason on the basis of which audit pestered the accountable person in this case twice. For the reasons given by the Appellate Controller in his order and because the impugned assessment is out of time, the same is annulled. We are not taking into consideration the other grounds raised by the accountable person in its appeal as the same would be only academic. 8. In the result, the revenue s appeal is dismissed and that of the accountable person is allowed as indicated above.
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1984 (4) TMI 102 - ITAT CHANDIGARH
Appeal To Appellate Controller ... ... ... ... ..... ed for total amount inclusive of penalties, which was certainly very harsh, when actually the accountable person could be required to pay only the balance, which he ultimately paid before coming to the Tribunal in a sum of Rs. 12,000 or so. Then on the basis of these two facts, two consecutive penalties were hardly called for on the peculiar circumstances of this case when major amount was to be recovered from the LIC and was actually recovered, though subsequently. However, we are hardly concerned with the merit because the Appellate Controller has dismissed the appeals having been found non-maintainable for non-deposit of the estate duty on provisional assessments. We, therefore, restore back both the matters to his file with a direction to adjudicate the same de novo on merit, after giving a full opportunity to the accountable person and taking into consideration all the above stated facts. 7. In the result, both the appeals are treated as allowed for statistical purposes.
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1984 (4) TMI 101 - ITAT CALCUTTA-D
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... ... ..... he found that there was not evidence to show that the assessee had incurred any additional expenditure for earning of profit of Rs. 66,052. The so-called expenses claimed by the assessee did not find place in the assessee s P and L A/c. In regard to leakage of gas from the cylinders there was no evidence not could any figures be given by the assessee in support thereof. He, therefore, confirmed the trading addition of Rs. 16,324 made by the ITO. 9. In this further appeal before us the ld. counsel for the assessee reiterated the same contentions as were advanced before the CIT(A). He, however, could not improve his case before us by production of any further evidence in support of his contention that the assessee had to incur any expenditure for earning the gross profit of Rs. 36,052 or there had been any shortage of gas due to leakage etc. We, therefore, find no reason to interfere with the order of the CIT(A) on this point. 10. The appeal by the assessee is partly allowed.
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1984 (4) TMI 100 - ITAT CALCUTTA-D
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... ... ..... imself or to himself and one or more other living persons. In the instant case, the firm claimed to have transferred the shares belonging to it to its partners. This fact was not controverted by the revenue. In the case of R. B. Lachman Das Mohanlal and Sons v. CIT 1964 54 ITR 315 (All.), the partners of the firm constituted a limited company with themselves as shareholders. The entire assets of the firm, the written down value of which was Rs. 5,34,185, were transferred to the company for a consideration of Rs. 30 lakhs. It was held by the Allahabad High Court that on the aforesaid transfer there arose a capital gain. In view of our aforesaid discussion, we are of the opinion that the transfer of shares by the assessee-firm to its partners was a genuine transfer and the loss arising from the aforesaid transfer was allowable as a short-term capital loss. 7 to 9. These paras are not reproduced here as they involve minor issues. 10. The appeal by the assessee is partly allowed.
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1984 (4) TMI 99 - ITAT CALCUTTA-D
Appeal Before AAC, Applied To, Assessment Proceedings, Assessment Year, Mistake Apparent From Record, Provision For Gratuity
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1984 (4) TMI 98 - ITAT CALCUTTA-D
Cash System, Mercantile System, Penalty Proceedings, Reference To IAC, Travelling Expenses ... ... ... ... ..... concealment of income on the part of the assessee but only a change of opinion regarding the maintenance of accounts. It was also stated therein that a statement on which the addition was made was supplied by the assessee during the course of the assessment. This fact would go to show that the assessee did not originally furnish the particulars in respect of items connected with the above additions till the same were asked for by the ITO. We have given our careful consideration of the different aspect of the matter and the submissions made before us. Having regard to the facts of the case and the findings of the authorities below, we are of the opinion that the IAC was justified on the facts of the case in passing the penalty order. We are of the opinion that the order of the IAC impugned before us is valid. We find no material to come to a different conclusion or to interfere with his order, which we hereby sustain. 23. In the result, the appeal by the assessee is dismissed.
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1984 (4) TMI 97 - ITAT CALCUTTA-D
Advance Tax, Assessed Income, Bona Fide, Interest Payable By Assessee, Original Assessment ... ... ... ... ..... n the case of Birla Vidhya Vihar Trust has also held that a trust can claim exemption both under sections 10(22) and 11. The Allahabad High Court has also taken the same view in the case of Bar Council of U.P. The Allahabad High Court based its decision on the Supreme Court decision in the case of Bar Council of Maharashtra. 8. It is also important to mention that the assessee-institute applied for exemption under section 11 before the Commissioner and the assessee had been granted registration by the Commissioner under section 12A accepting that the institute is one where the provisions of section 11 are applicable. On a consideration of these facts and keeping in view the principle laid down in the aforementioned cases, we have no hesitation in holding that there was sufficient cause for non-filing of estimate under section 212 by the assessee and, therefore, it was not a case in which interest under section 2 17 was to be charged. 9. In the result, the appeal is dismissed.
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1984 (4) TMI 96 - ITAT CALCUTTA-C
Break Up Method, Wealth Tax ... ... ... ... ..... bout 6 per cent for which return nobody would like to purchase such share. We are, therefore, of the opinion that either the department should proceed to determine the market value in accordance with the yield method as explained by the Supreme Court in the two authorities referred to or take up the value in accordance with the breakup method as laid down in rule 1D, of course it would be the option of the Assistant Controller to choose one or the two of the methods but the revenue cannot be allowed to urge that the goodwill of the company shall be computed in accordance with the super profits without taking into consideration that what goes to the shareholders are the super profits after deduction of the tax liabilities. Accordingly, we accept the appeal and direct that the value of the shares shall be ascertained afresh by the Assistant Controller in the light of our aforesaid discussion. 7. For statistical purposes, this appeal shall be deemed to have been allowed as such.
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1984 (4) TMI 95 - ITAT CALCUTTA-C
Appellate Assistant Commissioner, Applied To, Assessee's Appeal, Assessment Order, Change In Previous Year
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1984 (4) TMI 94 - ITAT CALCUTTA-C
Appellate Assistant Commissioner, Income Tax, Mens Rea, Tax At Source ... ... ... ... ..... . But if the so-called contractors themselves has not been assessed to any income in relation to the present payments, obviously there should be no necessity of deducting any tax at source from the payments made to them. We, therefore, direct that the assessments of the individuals to whom the present payments were made by the assessee be checked up and interest, if any, may be levied upon the assessee only in relation to the period during which the real payees have failed to pay the tax actually assessed from the date on which deduction should have been made under section 194C till they have actually discharged their liabilities under the Act. If these persons are held not liable to pay any tax, no interest can be levied on the assessee as well. For this limited purpose, the matter shall go back to the ITO, who shall pass fresh orders in the light of our aforesaid observations. 6. For statistical purposes, all these three appeals shall be deemed to Have been allowed as such.
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1984 (4) TMI 93 - ITAT CALCUTTA-B
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... ... ..... r (b) where all the partners continue with a change in their respective shares or in the shares of some of them. A bare reading of this provision of law will leave no doubt in the mind of anybody that for the purpose of making an assessment under the Income-tax Act which otherwise grants special concessions to the firms in the quantum of the levy of tax, the legislature clearly intended that the partnership firms even if dissolved and re-constituted would have to suffer a higher incidence of tax, in accordance with the above provision, even though the said re-constitution of the firm would amount to dissolution of a firm and its succession by another firm. We, therefore, are of the opinion that the decision which held to the contrary do not properly seem to have considered the language of this section in the right perspective. The language is clear and there is no scope for accepting a different interpretation on the subject. . With these observations, we dismiss this appeal.
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1984 (4) TMI 92 - ITAT CALCUTTA-B
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... ... ..... arket value of shares in various kinds of companies for the purpose of s. 7(1) of the WT Act. According to s. 7(1) the market value of any asset has to be determined subject to the rules made in this behalf. We, therefore, accept this ground to the extent that the market value of the shares shall be determined in accordance with these rules and a reduction of 15 per cent as provided for in the rule is to be allowed on the break up value as determined thereunder. The ground is allowed in these terms. 7. Coming to the third ground we find that in the immediately succeeding year the value of the jewellery has been taken at Rs. 2,00,000 whereas in the immediately preceding year the value was taken at Rs. 1,53,700. The value in this year should, therefore, be estimated at Rs. 1,76,000 and odd. The AAC has already taken at Rs. 1,75,000. Therefore, there is no ground for us to interfere. This ground is, therefore, rejected. 8. In the result, the appeals are partly allowed as above.
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1984 (4) TMI 91 - ITAT CALCUTTA-A
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... ... ..... ss wealth of Rs. 3,82,297 from which the deduction has been made for debts at Rs. 4,44,797. Therefore, the resultant wealth is in minus figure at Rs. 62,499 for which the return was filed by the assessee for the asst. yr. 1975-76 and a photostat copy of the receipt as well as the return had been included in the paper book. It is clear from the wealth-tax return filed by the assessee that till the return was filed, the assessee was of the bona fide belief that she did not have taxable wealth. The extension of time was sought just as a precautionary measure. When the actual wealth was worked out, it was found that the assessee was having a minus wealth of Rs. 62,449. The bona fide belief of the assessee may be true or untrue. But the fact is that the assessee being under this belief could not file her return and, therefore, she was prevented from reasonable cause. Consequently, the AAC was perfectly, justified in deleting the penalty. 7. In the result, the appeal is dismissed.
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1984 (4) TMI 90 - ITAT CALCUTTA-A
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... ... ..... . The valuation of the AAC has been assailed on the ground that it was based upon the valuation of the departmental valuer which was in connection with the investment of the assessee. It is true, but at the same time it is equally correct that the building was completed in the immediately preceding year and, therefore, the rise in the market value could not be as high as estimated by the Valuation Cell. Moreover, the first as well as the second valuation report was based upon the fact that the assessee constructed a new cinema building, whereas the fact is that the old cinema building was extended and the other portion remained the same. The value of the old building, furniture and machinery etc. will have to be calculated having in mind the depreciation available over them. Therefore, if all these facts are taken into consideration, the estimate made by the AAC appears to be correct and the valuation adopted by him is maintained. 7. In the result, the appeals are dismissed.
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1984 (4) TMI 89 - ITAT BOMBAY-D
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... ... ..... umstances, we direct that the claim of the assessee be allowed. As regards the disallowance of interest, interest payable on borrowed capital is an allowable deduction. The mere fact that only a part of the payable interest was actually paid during the year should not result in a disallowance of the balance which at any rate has only been postponed for payment. The claim of interest should therefore, be allowed, in this case. 5. The assessee claimed two amount of Rs. 180 and Rs. 204, the former representing collection charges and the latter Municipal taxes, etc., payable to the municipality. The AAC disallowed the same. 6. After hearing the parties, we find that the question of collection charges is of the same type as dealt with earlier in respect of Sewri Property. Taxes paid through the society by way of society charges are also a proper deduction. We, therefore, direct that in each of the years a sum of Rs. 384 be allowed. 7. In the result, the appeal are partly allowed.
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1984 (4) TMI 88 - ITAT BOMBAY-D
Gratuity Fund, Mercantile System ... ... ... ... ..... Thus, in our opinion, the assessee is eligible for deduction under section 36(1)(v) proceeding on the basis of our finding that the assessee has made the payment constructively as required under section 43(2). Even if it is held that the assessee has not made the payment as explained above, a provision has been made as explained in the Tribunal Special Bench decision in the case of Soft Beverages (P.) Ltd. In the circumstances, it has to be held to be admissible under section 40A(7)(b)(i). As to the reliance on behalf of the revenue on the Calcutta High Court decision in the case of Hindustan Aluminium Corpn. Ltd., in the first place, it is not clear whether it was a case where the assessee had created an approved gratuity fund. Further, the case has not been examined under the provisions of section 36(1)(v). Therefore, in our opinion, the dictum laid down by the Calcutta High Court has no application to the facts of the present case. 8. In the result, the appeal is allowed.
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1984 (4) TMI 87 - ITAT BOMBAY-D
Business Loss, Carry Forward And Set Off, Supreme Court ... ... ... ... ..... orders of the Bombay High Court as well as the Supreme Court dismissing the petition filed by the revenue under section 256(2) of the Act and the special leave petition therefrom, only show that their Lordships were not satisfied that it was a fit case for directing the Tribunal to state a case and make a reference to the High Court, and nothing more. They are not decisions on the merits of the controversy raised by the parties in the present case. We are, therefore, unable to accept the contentions of the learned counsel of the assessee. We would, therefore, respectfully follow the decisions of the Gujarat High Court and of the Special Bench of the Tribunal, referred to above. Accordingly, we reverse the order of the Commissioner (Appeals) and restore the order of the ITO in respect of the allowance of current depreciation amounting to Rs. 5,61,180 in computing the business income of the assessee for the assessment year under appeal. 10. In the result, the appeal is allowed.
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