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Case Laws
Showing 161 to 180 of 306 Records
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1984 (7) TMI 146 - ITAT DELHI-E
Assessment Year, Capital Asset, Partnership Deed, Partnership Firm, Tax Liability ... ... ... ... ..... pose of reducing the tax liability in terms of Explanation 3 to section 43(1). We hold accordingly. We, therefore, direct the ITO to allow depreciation on the basis of the actual allocation of the assets to partners in terms of the dissolution deed dated1-4-1978. Since these assets were introduced to the new firm immediately from the next day, the question of depreciation or cost of improvement will not arise. That is not the claim of either of the parties also. The ITO is directed to recompute the allowable depreciation on the above basis. 11. The next ground is regarding disallowance on account of subscription and part of telephone expenses. This ground, however, is not pressed and is dismissed. 12. Similarly ground No. 3 regarding levy of interest under section 2(1)(vii) (sic) of the Act being consequential to ground No. 1 and the income determined thereon, the same has not been pressed. The ITO shall give consequential relief accordingly. 13. The appeal is partly allowed.
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1984 (7) TMI 145 - ITAT DELHI-D
Appellate Assistant Commissioner, Bona Fide ... ... ... ... ..... rtments without probing the professional competence of the advice. The Court and the Tribunal must, of course, see whether in such cases, there is any taint of mala fides or element of recklessness or ruse. If neither is present, legal advice honestly sought and actually given, must be treated as sufficient cause for condoning the delay for the purpose of computation of limitation. In support of this conclusion, we are fortified by the ratio of the decision of the Supreme Court in the case ofConcordofIndiainsurance Co. Ltd. 10. Looking to the aforesaid facts and the entirety of circumstances, we are of the view that there were sufficient causes which prevented the assessee from filing the appeals before the Commissioner (Appeals) within time. So delay in filing the appeals before the Commissioner (Appeals) is condoned. Let the matter should go back to the learned Commissioner (Appeals) for deciding the same on merits. 11. For statistical purposes, all the appeals are allowed.
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1984 (7) TMI 144 - ITAT DELHI-D
Assessment Year, Capital Gains, Previous Year ... ... ... ... ..... ned leave during the service period was not assessable under the head Salaries because the amount was received as compensation in return for surrender of leave and was not received for any services rendered and was, therefore, exempt from tax. Similar view was taken by the Hyderabad Bench in ITO v. A.N. Mathur 1983 71 Taxation (6) 110 (Hyd.). The Tribunal, Delhi Bench C , in B.N. Poddar Appeal No. 1606 (Delhi) of 1983 by order dated23-3-1984(to which one of us was a party) had followed the aforesaid decisions. 9. Respectfully following the aforesaid decisions, we hold that encashment of privilege leave did not fall under the head Salaries as defined in section 17 of the Act nor under Explanation 2(a) to section 40A(5). Thus, the encashment of privilege leave has to be excluded for computation of disallowance under section 40A(5). We, accordingly, uphold the order of the Commissioner (Appeals), though for different reasons. 10. In the result, the revenue s appeal is dismissed.
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1984 (7) TMI 143 - ITAT DELHI-D
Business Loss, Carry Forward And Set Off ... ... ... ... ..... the parties and case laws discussed above and not finding any material difference in comparable provision of section 22(2A) of the 1922 Act, and section 139(3) of the 1961 Act, we would follow the view held by the majority of the High Courts and hold that the assessee is entitled to carry forward of loss. 23. In view of the provisions of section 72 and section 80, we are not inclined to accept the revenue s submission relying on the Supreme Court observations in Manmohan Das case which were under the 1922 Act that it was premature for the assessee to claim carry forward of loss in the year under consideration. In view of the ITO s holding that the loss is not to be carried forward, the assessee had to challenge the said directions in appeal and, therefore, the Commissioner (Appeals) was acting within his jurisdiction when he held that the assessee was entitled to carry forward of loss. 24. In the result, both the assessee s appeal and the revenue s appeal are partly allowed.
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1984 (7) TMI 142 - ITAT DELHI-C
Deemed Gift, Educational Institutions, Income Tax Return, Own Capital, Stamp Duty, Wealth Tax Return
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1984 (7) TMI 141 - ITAT DELHI-C
Family Property, Rate Purpose ... ... ... ... ..... tate duty payable on the death of a coparcener. We would, accordingly, reject the assessee s contention challenging the aggregation of lineal descendants shares. 14. We may also mention that the Madhya Pradesh High Court in CED v. Prakashchand 1984 147 ITR 1 has dissented from Satyanarayan Saraf s case and have held that notional partition contemplated by section 39 of the Act was between the deceased and other members of the HUF who were entitled to a share in the joint family property if the partition was to take place in the lifetime of the deceased and, therefore, the wife of the son of the deceased cannot be brought into picture at that stage. It is, therefore, arguable whether the Appellate Controller was right in following Satyanarayan Saraf s case. However, as the revenue is not in appeal before us, we do not express any opinion on this aspect. 15 and 16. These paras are not reproduced here as they involve minor issues. 17. In the result, the appeal is partly allowed.
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1984 (7) TMI 140 - ITAT DELHI-C
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... ... ..... he language of law is clear, the meaning should not be stretched either to extend a benefit or to restrict a benefit. We are, therefore, of the view that the provisions of section 80VV do not permit the allowance of expenses in excess of Rs. 5,000 in one year. In this connection, we may mention that there are other examples in the Act where such artificial restrictions have been laid down for allowing expenses or for other purposes. One may give an example of entertainment expenses which are restricted to Rs. 5,000 in some years and to other figures in certain other years. As regards inequity, it is a well-known principle that taxation and equity are sometimes strangers to each other. We cannot, therefore, interpret the section in a manner contended by the learned counsel for the assessee only on the ground that his interpretation, according to him, will make the provision more equitable. 13. No other ground has been pressed. 14. In view of the above, the appeal is dismissed.
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1984 (7) TMI 139 - ITAT DELHI-C
Assessment Year, Business Loss, Carry Forward And Set Off ... ... ... ... ..... ich are determined and the determination has to be in a proper and legal manner. The ITO cannot, however, turn round and say that as he has not determined the loss, the assessee should lose his claim for set off. He must give effect to the order of the AAC and determine the loss notwithstanding the provisions of section 153(2A) and then proceed to set off the loss against the income of this year. The assessee will also have the right to appeal against the determination of this loss. 8. In this connection, we may refer to the decision of the Allahabad High Court in the case of Vithaldas v. ITO 1969 71 ITR 204, where the ITO was directed to carry out rectification after the expiry of limitation period. 9. With these directions, I set aside the orders of the lower authorities and direct the ITO to determine the loss for the assessment year 1975-76 and carry it forward and set off against the profit for this year in accordance with law. 10. The appeal shall be treated as allowed.
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1984 (7) TMI 138 - ITAT DELHI-C
Family Hotchpot, Hindu Law ... ... ... ... ..... Lordships further held that the entire ownership of the property vested in the deceased and no part of it was shared by his wife, who was the only other member in the HUF. It was held that the entire property passed on the death of the deceased within the meaning of section 5 of the Act. Their Lordships had considered the decision of the Supreme Court in the cases of Gowli Buddanna and N.V. Narendranath, while deciding the above case. 12. From the above decisions it would be clear that though the property in question belonged to the HUF of the deceased and his wife, the personal law of the deceased deemed him to be the owner of the property and the full value of the property passed on his death. The deceased being the sole coparcener in the family, had the full power to dispose of the property and not only 50 per cent of it before his death. Thus, the value of the property was fully includible under the provisions of sections 5 and 6. 13. The appeal is, therefore, dismissed.
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1984 (7) TMI 137 - ITAT DELHI-B
1961 Act, Assessment Year, Retrospective Effect ... ... ... ... ..... However, since there is no material with us, to finally adjudicate upon the assessee as to where the services were rendered as also about the off-shore operational activities of the persons, as of necessity, we restore the subject matter for these two years to the file of the learned ITO, of course, after setting aside the orders of the lower authorities, for deciding the issue afresh in accordance with the law and after giving a reasonable opportunity of being heard to the assessee. He will call for the requisite details from the assessees and decide the issue in tune with Notification No. GSR 340(E), dated31-3-1993, reproduced as above and in tune with the provisions of the Act, viz., section 9(1)(ii), Explanation. Desired implications of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, shall also be taken note of. Appeals of the revenue for these three years shall be taken to have been allowed for statistical purposes.
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1984 (7) TMI 136 - ITAT COCHIN
Income From Property, Religious Purpose, Religious Trust ... ... ... ... ..... be held to be application of the income for religious purposes. It appears to be unsafe to accept such a proposition. If the proposition is accepted, a religious institution can apply its entire income on commercial activity and claim the same to be application of the income for religious purposes merely because the income ultimately obtained from the commercial activity is to be applied for religious purposes. Similarly, a religious institution can spend the entire income on the acquisition of a capital asset, which has nothing to do with the religion on the plea that the income derived from the capital asset is going to be used for religious purposes. The essential requirement of section 11 is that the income for which exemption is sought must be one which has been applied for religious purposes during the relevant previous year. 10. We, therefore, hold that in the present case the income has not been applied for religious purposes. In the result, the appeals are dismissed.
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1984 (7) TMI 135 - ITAT CHANDIGARH
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... ... ..... ion of the Hon ble Punjab and Haryana High Court in (1980) 14 CTR (P and H) 389 (1980) 121 ITR 973 (P and H) is also not applicable to the facts of the case. Gauhati and Madras High Courts have clearly held that where tax assessed is found to be nil in the case of a registered firm, resort cannot be have to the provision contained in sub-s. (2) of s. 271 for purpose of calculating the penalty treating the firm as unregistered. The Hon ble Supreme Court in the case of CIT vs. Vegetable Products 1973 CTR (SC) 177 (1973) 88 ITR 192 (SC) has held that where two plausible views are possible, on an issue, the one in favour of the subjects should be adopted. In view of the judgment of the Madras and Gauhati High Courts, which are in favour of the assessee, we hold that no penalty was exigible as tax assessed in the case of the assessee on the basis of registered firm was nil, In such circumstances, we cancel the penalty sustained by the AAC. 5. In the result, the appeal is allowed.
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1984 (7) TMI 134 - ITAT CHANDIGARH
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... ... ..... tal income. In the instant case, the facts are absolutely different, as is apparent by the facts narrated above. 7. In order to clear our doubt, beside looking into the order of M/s Dhanpat Rai Charan Dass, which was filed by the ld. counsel for the assessee. we sent for its appeal file also and found that in that case also the accounts of the partners which were debited read as Roshan Lal, baldev Raj suffixed by the letters FD in 1977-78 and prefixed by the same letters in 1979-80. In other words, in that case as well, there were two accounts of the partners-one capital account in which credit balances were reflected and the other suffixed or prefixed by the letters FD in which amounts were reflected for which FDRs were obtained by the partners therefore, earlier decision of ours is applicable to the instant case on all fours. 8. In the light of above discussion and for the reasons given by us in the case of M/s Dhanpt Rai Charan Dass, the appeal of the assessee is allowed.
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1984 (7) TMI 133 - ITAT CHANDIGARH
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... ... ..... ns from both being available in our order in para 27 it supports the contention of the assessee. Inclusion of CIT vs. S. P. Jain 1972 CTR (SC) 443 (1973) 87 ITR 370 (SC) would not only serve academic purpose but will be infructuous as such. It is not necessary for the appellate authority to deal with each and every case cited by the litigants, if authorities cited are identical and same. Sum, substance, facts, findings, ratio or either of Omar Salay Mohamed Sait vs. CIT (1959) 37 ITR 151 (SC) and (1973) 87 ITR 370 (SC) are exactly identical and, as above said former stands followed in latter case and its finding recorded in latter. In the circumstances, as such, on having extracted common ratio out of the two and given our finding against the Revenue, have not committee any mistake, more so apparent mistake, which is capable of being rectified under s. 254(2). Miscellaneous petition of the Revenue is misconceived and the same as such is rejected. 5. Misc. Petition dismissed.
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1984 (7) TMI 132 - ITAT CHANDIGARH
Penalty For Concealment, Assessee Was Partner In a Firm ... ... ... ... ..... nder section 148 by the assessee and the subsequent letter is an issue which needs to be thrashed out after full deliberations. Since it has far-reaching effect, we do not want to scuttle the same here. We are of the opinion that this issue should be restored to the file of the AAC who should record a clear finding after giving an opportunity to both the parties as to whether in such circumstances the return and consequent assessment was a valid one. On the other hand, if it is held that it was not a valid return and, consequently, the assessment framed thereon was also invalid, a finding should also be recorded whether the assessee was estopped from taking such a plea in penalty proceedings when the assessment had become final. We, therefore, set aside the order of the AAC and restore the issue to his file for fresh determination regarding the jurisdiction of the ITO to impose penalty on these limited points. 18. In the result, the appeal is allowed for statistical purposes.
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1984 (7) TMI 131 - ITAT CHANDIGARH
Penalty For Concealment ... ... ... ... ..... luntarily disclosed and also intangible additions in the past should have been given by the ITO. We do not find any merit in this contention as well. There is no co-relation between the income introduced in the books of account and the voluntarily disclosed income as well as intangible additions in the past. The onus is upon the assessee to co-relate the same as it is alleged by it. We also notice that even the intangible additions and the voluntarily disclosed income put together are of Rs. 20,000 whereas the cash deposit was at Rs. 21,400. There is no explanation for the balance amount of Rs. 1,400. This clearly shows that the deposit of Rs. 21,400 was not out of these intangible additions and the income voluntarily disclosed subsequently. This contention on behalf of the assessee is also rejected. In view of the above discussions, we have no hesitation in confirming the order of the AAC sustaining penalty under section 271(1)(c). 11. In the result, the appeal is dismissed.
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1984 (7) TMI 130 - ITAT CALCUTTA-D
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... ... ..... in the nature of perquisites or not. 14. To our enquiry whether the conveyance allowance of Rs. 3,000 and the medical reimbursement amounting to Rs. 2,400 have been considered a perquisites in the personal assessments of the Managing Director, the assessee s ld. counsel brought to our notice that the ITO, N-Ward, Dist. IIIA for the asst. yr. 1977-78 excluded the three sums of Rs. 1200 being the Director s sitting fees, conveyance allowance of Rs. 3,000 as also the medical reimbursement of Rs. 2,400 in computing the salary income of the Managing Director. A copy of the ITO s order for the asst. yr. 1977-78 in the case of Sri G. Hazra has been furnished. We would, according hold that the disallowable item under s. 40A(5)/40(c) would work out to Rs. 1839 i.e., the excess of Rs. 60,000 out of remuneration and commission paid to the Managing Director of Rs. 61,838.67. We would accordingly restrict the disallowance to Rs. 1,839. 15. In the result, the appeals are allowed in part.
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1984 (7) TMI 129 - ITAT CALCUTTA-D
Interest Income ... ... ... ... ..... oney in a fiduciary capacity. From the copies of the correspondences and other materials available on record, it cannot be said that the relation between the assessee and the non-residents has created a fiduciary relation between the assessee and the non-residents or to make the assessee a trustee for the non-residents or for any representative. 17. We have given careful consideration to the facts and circumstances of the case along with the submissions made by both the sides. In our opinion, the interest income from short-term deposits represented the income of the assessee, which has been brought to tax as income from other sources by the ITO. In this view of the matter, the Commissioner (Appeals) erred in deleting the addition on account of interest income from the assessment of the assessee for the year under consideration. We, accordingly, reverse the order of the Commissioner (Appeals) and restore that of the ITO. 18. In the result, the appeal by the revenue is allowed.
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1984 (7) TMI 128 - ITAT CALCUTTA-C
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... ... ..... f godown to be deducted. The ITO do not refer to P and L A/c either for the purpose of ascertaining the ownership of the godown or for the purpose of finding out its correctness and the extent of business of the assessee. He assigned absolutely no reason for making the estimate. He did not assign any reason as to why the P and L A/c produced by the assessee was rejected. The AAC too while reducing the estimate of income from Rs. 8,000 to Rs. 7,000 did not assign any reason therefor. It is apparent that the tax authorities below merely made estimate without the help of material. Such estimates cannot be allowed to stand. We, therefore, accept the returned income of the assessee. 8. We, therefore, direct that the addition of Rs. 3,500 in each of the years on account of unexplained investment in godown is cancelled. The estimate of income is also cancelled and it is directed that instead the ITO shall accept the return income. 9. In the result, all the three appeal are allowed.
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1984 (7) TMI 127 - ITAT CALCUTTA-C
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... ... ..... were not current accounts. There are credit entries of cash balances and the amount of interest accrued and also the amounts of dividends received from other companies. On the debit side, only payment to certain persons on their behalf viz. to Life Insurance Corporation, Municipal Corporation etc. and tax deducted at source appeared. Such account by no stretch of imagination can be taken as current account. We have minutely gone through the copies of the accounts of the creditors filed in the paper book and we do not find if any of the account can be taken as current account. It is not known as to in what capacity Bansidhar Sitaram and Co. had transaction with the assessee-there are many items of withdrawals but they have not been proved as being out of ambit of deposit. 7. We attach no weight to the order of the CIT(A) for the asst. yr. 1982-83 since the facts relating to that assessment year are not before us. 8. In the result, all the three cross objections are dismissed.
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