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Showing 81 to 100 of 175 Records
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1982 (1) TMI 95 - ITAT HYDERABAD-B
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... ... ..... e arrangement by which the property was divided. It is not stated by the Commr. that the arrangement is not bonafide or fair. Thus we hold that the claim is supportable as a family arrangement. The ld. Deptl. Rep. no doubt contended that the question as to whether it is a family arrangement or not can be looked into by the ITO as per the direction of the Commr. But it cannot be accepted inasmuch as there is nothing further to be looked into. The facts are all there it is a matter of inference to be drawn. In fact in the reference the Punjab and Haryana High Court held that the transaction would amount to family arrangement. It is therefore not necessary for the matter to go back to the ITO. On the facts it is not difficult to hold that the particular transaction in question is a family arrangement and hence the order of the ITO is clearly supportable. Consequently the order of the Commissioner passed u/s 263 is set aside and that of the ITO is restored. The appeal is allowed.
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1982 (1) TMI 94 - ITAT HYDERABAD-B
Valuation Of Assets ... ... ... ... ..... ument would be totally excluded from the assessment and what will be includible would be only the amounts received already under the document and receivable under the documents, as directed by the AAC. The computation would be made for each of the years on the aforesaid basis. In other cases valuation of land itself is in order. 11. The only other ground urged in the appeals by the department is that the AAC erred in reducing the valuation of wet land from Rs. 4,000 per acre to Rs. 2,000 per acre. We find that the AAC has taken this valuation on the basis of the value adopted in the case of a brother of the karta. Whatever is the final valuation adopted in that case, that would be adopted in the present case also. We give this direction because the exact particulars are not readily available with either party in this regard. 12. The result is, the WTO would recompute the net wealth from year to year in accordance with our aforesaid directions. The appeals are allowed in part.
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1982 (1) TMI 93 - ITAT DELHI-E
Penalty, For Concealment Of Income ... ... ... ... ..... t between the parties after the filing of the original return, being beyond the control of the assessee and also that the said income cannot be said to have arisen in the relevant previous year, the penalty is not exigible. It is accordingly deleted. 6. IT Appeal No. 336 (Delhi) of 1981 --- With regard to this penalty, the facts of the case are entirely the same as in the above penalty proceedings under section 271(1)(c). In this case the penalty was levied by the ITO, on the basis that the assessee failed to file the revised estimate under section 212(3A). He imposed penalty of Rs. 531 under section 273(c). As this extra income of Rs. 7,700 cannot be taken into account during the relevant previous year not being the income directly earned, as fully discussed in the concealment proceedings above, we are inclined to exonerate the assessee on this account on the same reasonings as recorded therein. The penalty is, accordingly, deleted. 7. In the result, the appeals are allowed.
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1982 (1) TMI 92 - ITAT DELHI-C
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... ... ..... t the turnover had doubled after the agreement of commission was entered into. The Commr. (Appeals) was satisfied that the payment made to these two persons was not excessive and deleted the addition. 3. We have heard the ld. Deptl. Rep. and the counsel for the assessee. The written agreement provides for an annual increment of Rs. 200 per month to both the employees. The balance amount which appears as an increment in the total salary paid to the two persons represents one month rsquo s salary in lieu of leave amounting to Rs. 1,700 and arrears of salary amounting to Rs. 100. The increment is in accordance with the agreement and the total payment made is not much in excess of what was allowed by the ITO himself in the immediately preceding year. Looking to the turnover, responsibilities, the qualifications, etc. of the two employees, we are of the opinion that the disallowance was not called for and the Commr. (Appeals) was correct in deleting it. 4. The appeal is dismissed.
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1982 (1) TMI 91 - ITAT CHANDIGARH
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... ... ..... the law and whose ignorance of law is not to be considered as an excuse. According to us, when this assessee filed the wealth-tax returns voluntarily and paid more tax in advance that due in the first year and also a major part of tax in the second year it could not be considered a case of the assessee who delayed filing of the returns voluntarily. To postpone tax liability of Rs. 2,000 to Rs. 3,000 anybody who is not ignorant about ones liability would not take the risk of heavy penalties. As would be apparent in the instant case, against the total liability of Rs. 5,000 in two years, the penalties are in the vieinity of Rs. 32,000. We hold that assessee was under bona fide belief pertaining to his liability to wealth-tax as his wealth constituted of agricultural lands above, there could not be clear understanding with anyone, was a reasonable cause in the case of the assessee and both the penalties are, therefore, cancelled. 10. In the result, both the appeals are allowed.
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1982 (1) TMI 90 - ITAT CHANDIGARH
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... ... ..... be treated as disposed of in the light of out above finding. 22. The sixth and last ground pertain to the finding of the CIT (Appeals) who dismissed the contention raised by the assessee regarding lie of interest u/ss 139(8) and 217 on the plea that since there does not levy any appeal about the levy of interest, we are unable to confirm this finding in the light of the Punjab and Haryana High Court decision in the case of CIT v. Raghubir Singh and Sons (1980) 18 CTR (P and H) 107 (1980) 125 ITR 256 (P and H) wherein their Lordships held that If the assessee has challenged the order under appeal on any of the grounds mentioned in s. 246(1)(c) and, consequently, the liability to pay penal interest is also challenged, the appeal would be competent. In the light of this, we restore back this issue to his file with a direction to adjudicate the same decision novo after giving an opportunity to the assessee. 23. In the result, both the appeals of the assessee are partly allowed.
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1982 (1) TMI 89 - ITAT CHANDIGARH
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... ... ..... t the ITO had no reason to believe that these were items of income. 20 Very surprising aspect of the matter that has been projected before the authorities below and before me is that the parties in whose names figures had been shown were there in existence for verification whether the figures were representing so called brokerage. The ITO s orders are silent on this issue and even the AAC has not clarified this issue though it was projected to him. The apparent inference that can be drawn is either the ITO, as alleged by the assessee, conducted enquiries and drew a blank or he was afraid that his case will be weakened, if an enquiry is made, otherwise there is no reason why the parties in whose names the figures had been recorded could not be contacted by the ITO for necessary verification. 21. On entirety of the facts of the case, the whole process of all assessments appears to be an exercise in futility. All the reassessments are, therefore, cancelled. 22. Appeals Allowed.
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1982 (1) TMI 88 - ITAT CALCUTTA
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... ... ..... sub-section of section273 under which he intended to impose penalty and that he had not even quantified the amount of penalty. He, therefore, submitted that such an order of the ITO should not have been sustained by the Commissioner (Appeals). The learned departmental Repersentative supported the order of the Commissioner (Appeals). 8. We have heard the submissions of the rival parties. We find merit in the submission of the learned counsel for the assessee. A perusal of the penalty order would show that the ITO has not mentioned the sub-section of section 273 under which he wanted to impose the penalty. Even, the quantum of penalty was not mentioned in the penalty order. On a consideration of these facts and on a consideration of the revised estimate showing income at Rs. 40,000 filed by the assessee, we are of the opinion that it is a case in which no penalty should have been imposed. We, accordingly, cancel the penalty order. . In the result, both the appeals are allowed.
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1982 (1) TMI 87 - ITAT CALCUTTA
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... ... ..... rference in the order of the AAC. 5. After careful consideration of the rival submissions we are of the opinion that the authorities below erred in rejecting the claim of partition made by the assessee as per the terms of the instrument dt. 31st March, 1977 which had been placed on record of the authorities below. It is to be seen that the Karta Shri Om Parkash has acted on behalf of the minors as a party and in his own right as an individual. The parties to this deed are, therefore, himself, his wife and two minor sons to whom he represented as their guardian. We have held in another case in ITA No. 213 of 1980 dt. 14th Jan., 1982 that the partition affected by the father acting as patria potestas when there are also minor coparceners is valid in law taking into consideration the ratio decided in the judgments in the case of Narain Dass Wadhwa and Hoshiari Lall Kalyani. We, therefore, allow the claim of the assessee and direct the ITO to accept the claim. 6. Appeal allowed.
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1982 (1) TMI 86 - ITAT CALCUTTA
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... ... ..... the interest is paid to a partner. If the creditor of the firm is not the partner but the HUF of which the partner is the Karta , then the creditor of the firm is a separate entity and interest paid to that separate entity will not be governed by s. 40(B) and cannot be disallowed. Respectfully following the said judgment and in view of our own consistent approach in the matter in various cases, which have also been accepted by the revenue, we hold that the AAC fell in error in upholding the ITO s action of invoking the provisions of s. 40(B) of the Act to uphold additions of Rs. 8,718 in the first year and Rs. 6,175 in the second year. These additions shall be deleted from the assessments of the firm. Being consistent with the approach taken by us in the said order, we hold that the AAC fell in error in confirming the ITO s action of adding back the interest of Rs. 976 with the help of s. 40(B) of the IT Act, 1961. Deleting the said addition, we allow the assessee s appeal.
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1982 (1) TMI 85 - ITAT CALCUTTA
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... ... ..... the objects of the trust fund or institution are of religious nature as commonly understood, i.e., meaning the religious nature according to a particular religion in contradistinction with other religions. 19. Having regard to the above discussion, we have no difficulty in holding that the object of clause 2(h) of the deed of donee-trust is not a religious object in the legal sense. This object may be stated to encourage people of all religions of the world and is, thus, of universal application. Anything that is available to people of all religions cannot be held to be of religious nature in the strict legal sense. Assuming there is any scope for holding it to be so, the language of Explanation 3 makes it clear that it is not so. Accordingly, we hold that the second condition laid down in section 80G(5)(ii) read with Explanation 3 is also satisfied in this case and the assessee is, therefore, entitled to deduction under section 80G. 20. In the result, the appeal is allowed.
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1982 (1) TMI 84 - ITAT BOMBAY-E
Transfer Of Assets, For Benefit Of Spouse Or Minor Child ... ... ... ... ..... lowing the famous dictum of Lord Asquith in East End Dwellings Co. Ltd. s case. So, we will have to hold that if the income arising to the wife belongs to the husband, the payment of insurance premium and contribution to the provident fund are payments from the assessee s own income. 8. From the above finding, it will be clear that the assessee would be entitled to a deduction under section 80C in respect of such payments within the limits prescribed in the section as applicable to the assessee s gross total income. For the same reason, the assessee would be entitled to deduction under section 80L within the limits prescribed therein. 9. Under the circumstances, the departmental appeal would be partly allowed. The ITO is justified in including the income of the wife and the minor children for the gross total income purpose. But, the ITO will consider this point for the purpose of deductions under sections 80C and 80L as if these payments had been made by the assessee himself.
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1982 (1) TMI 83 - ITAT BOMBAY-D
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... ... ..... lt, the appeal is allowed. Per Shri T.D. Sugla, President - I have carefully gone through the order of my colleague, the learned Judicial Member, and agree with the conclusion. 2. However, with great respect, I am of the view that it is not really necessary for the purpose of deciding this appeal, to examine and finally express on the questions, such as, (i) whether section 7 is procedural or anything more, and (ii) whether section 7(2)(a) is itself a direct or an implied authority for the proposition that a person carrying on business and maintaining accounts regularly on cash basis has a balance sheet. Moreover, on the face of it, I am inclined to take the view that section 7 is a procedural provision and that there is nothing in section 7(2)(a) to indicate that a person carrying on business and maintaining accounts regularly on cash basis must have a balance sheet. 3. Hence, I am agreeing with the conclusion without expressing myself finally on the aforesaid two questions.
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1982 (1) TMI 82 - ITAT BOMBAY-D
Net Wealth, Debt Owed ... ... ... ... ..... o yet another claim of the assessee that if any sum is required to be included in respect of the payments due under the policy then the value thereof should be reduced, that there is no merit in the assessee s claim for considering any inherent income-tax liability attached to it, for the identical reasons on which we have rejected a similar contention in the other Special Bench case in the case of N.M. Shah, but as no proper valuation of right of interest, apart from this question, appears to have been considered at the lower stage, we would have remitted the question of valuation to the departmental authorities for determination afresh after considering all the objections of the assessee had we not decided the matter in favour of the assessee on the main dispute. As, however, we have resolved the main dispute in favour of the assessee, the necessity of sending the question of valuation to the departmental authorities does not arise. 19. In the result, the appeal is allowed.
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1982 (1) TMI 81 - ITAT BOMBAY-B
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... ... ..... ssessee, or by the undertaking. The bare reading of the aforesaid section shows that it is not the assessee who should employ ten workers, but it is the undertaking who should employ ten workers. If it was not so, then the legislature in their wisdom must have inserted the word assessee in place of the word undertaking . So, the Tribunal can not take any other meaning than those which are clear from the language of this section. Accordingly, we hold that if ten workers work in the industrial undertaking for the manufacture or producing of articles, whether they are in the employment of the assessee or not, then it is immaterial for th relief sought for by the assessee in the case. Accordingly, we hold that both the conditions prescribed for the relief sought for are satisfied by the assessee, and as such, we hold that the assessee is entitled to the relief. The CIT (A) has acted accordingly. Hence, we confirm his order on the issue. 6. In the result, the appeal is dismissed.
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1982 (1) TMI 80 - ITAT BOMBAY-B
Revision, Orders Prejudicial To Revenue ... ... ... ... ..... nd Madras High Courts for the reason that the decision of the Karnataka High Court is distinguishable so much so that when it is manifest that the delay in filing of the return is not explained, then the assessee has committed default and if the ITO has not taken action regarding it, then impliedly he has applied his mind, and thereby took the view that there is no case for initiating penalty proceedings, and as such he did not do so. When this is the position, then his order is erroneous insofar as it is prejudicial to the interests of the revenue, and as such, the Commissioner has jurisdiction to take action under section 263 and we are supported by the aforesaid decisions of the Madras and Madhya Pradesh High Courts in our view. Therefore, in view of these reasons, we hold that the Commissioner is justified in directing the ITO to initiate penalty proceedings under section 271(1)(a). Hence, we confirm his order on this issue. 6. In the result, the appeal is partly allowed.
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1982 (1) TMI 79 - ITAT BOMBAY-A
Previous Year ... ... ... ... ..... for the previous year ending 31-7-1969 Consequently, the case of the assessee was that the salary earned as a Judge from 21-8-1968 till 31-7-1969 was not assessable in the assessment year 1969-70. On the other hand, the salary earned from 21-8-1968 to 31-7-1969 was assessable only in the assessment year 1970-71. The Tribunal held that the assessee was quite correct in law to claim what he did. The High Court also confirmed the decision of the Tribunal. In the case before us, the assessee has, admittedly, made up his accounts in respect of salary from his new employer up to 4-8-1978 and so, the income arising from the new source up to 4-8-1978 could not be taxed during the assessment year 1978-79. We also find force in the contention of the learned representative of the assessee that the principle laid down in the case of Vishnudayal Dwarkadas supports the case of the assessee. Hence, we uphold the order of the Commissioner (Appeals). 7. In the result, the appeal is dismissed.
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1982 (1) TMI 78 - ITAT AMRITSAR
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... ... ..... nue authorities from shutting their eyes the decisions given by the other High Courts in to the matter and ruled out any controversy in the matter. In our view, the counsel for the assessee has correctly supported himself by the decision of Calcutta High Court, which is stated its allowability view directly on an issue, which has similar to the one before us. We had a similar issue before us on a previous occasion in ITA No. 539/80 in the case of Hari Kishan vs ITO, where we have taken the view that the provisions of s. 154 were not applicable for the purpose of causing rectification if there were different views available on the subject. Therefore we agree with the submission of the assessee that there being different views on the issue, it was not possible for the ITO to proceed u/s 154 to rectify the assessment by withdrawing the allowance, previously allowed by him. We vacate the finding of the CIT (Appeal) and cancel the order of rectification. 4. The appeal is allowed.
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1982 (1) TMI 77 - ITAT AMRITSAR
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... ... ..... t the explanation has been found to be false does not allow that the receipt in question constituted his taxable income. Their Lordship followed their own decision in the case of Karnail Singh, Kaleran (1974) 94 ITR 505 (P and H). From the above, it would appear that where an addition is made by rejecting the assessee s explanation and there is no material indicating that the amount in question represented assessee s income for the year in question penalty cannot be imposed. The explanation given by the assessee has also not been found to be false but has not been accepted by the Taxing Authorities. In out opinion, penalty cannot be levied only on the basis of rejection of assessee s explanation. In the penalty order, there is no further finding regarding the Act of concealment or the investment representing assessee s income of this year. We, therefore, hold that the penalty order must be cancelled. We, therefore, cancel the order of penalty and allow the assessee s appeal.
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1982 (1) TMI 76 - ITAT ALLAHABAD-B
Reassessment, Issue Of Notice, Hindu Undivided Family, Assessment After Partition ... ... ... ... ..... the assessment year 1969-70. In this year, the ledger of the assessee showed its income at Rs. 4,741. Against this, it was estimated at Rs. 6,000. For the reasons already given above, we direct that the amount of Rs. 4,741 should be substituted for Rs 6,000. For the reasons already given above, we exclude the income of Rs. 5,000 belonging to Smt. Kamla Devi from the assessment as also the income from self-occupied property amounting to Rs. 500 if related to the house constructed by her. We give a similar finding in the case of Rs. 6,500, being the investment in the name of Smt. Asha Rani. Here also there was no evidence to show that she was the recipient of any funds from the assessee-HUF. The burden in this respect, which lay on the department, was not discharged. However, for the reasons already stated above, we confirm the addition of Rs. 4,000 added on account of the low withdrawals for the maintenance of the family. 29. In the result, all the appeals are partly allowed.
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