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Case Laws
Showing 81 to 100 of 227 Records
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1988 (11) TMI 156 - CEGAT, BOMBAY
Demand - Time limit ... ... ... ... ..... ous. 40. On point No. 3 we hold that this point strictly does not arise having regard to our finding on point No. 2. But, however, we make it clear that the demand of duty for the period exceeding six months immediately preceding the date of show cause notice is barred by time. 41. Point No. 4. In view of our findings that the department had failed to establish clandestine production and clandestine removal and had, further, failed to establish non-maintenance of production and removal in the statutory accounts and also having regard to our finding that no duty was demandable on the quantity shown as loss in the Daily Production Reports, no penalty should have been imposed on the appellants. We, therefore, hold that the imposition of penalty on the appellants by the Collector was unwarranted, unjustified and incorrect. 42. In the result we allow this appeal set aside the Collector rsquo s order in its entirety. The duty and penalty if paid shall be refunded to the appellants.
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1988 (11) TMI 153 - ITAT MADRAS-A
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... ... ..... On the same analogy though the debit arose in the previous years ended 31st March 1980 and 31st July 1981 by reason of the loss incurred in three years, the interest paid in the previous year ended 31st March 1983 is in fact the interest relatable to that capital which had been loss and must be regarded as an admissible deduction, for without such a deduction the commercial profit of the assessee in the business carried on by the partnership cannot be ascertained within the scope of section 28 of the Income-tax Act. Thus, from the point of view of ascertaining the real income of the assessee this interest paid by the assessee has to be taken into account as a proper deduction. From any point of view, therefore, we are convinced that the assessee is entitled to the deduction. We accordingly reverse the orders of the authorities below on this point and direct the ITO to recompute the total income after allowing the deduction of the sum of Rs. 25,047. 10. The appeal is allowed.
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1988 (11) TMI 150 - ITAT MADRAS-A
Assessment Year, Borrowed Capital ... ... ... ... ..... ess aspect of the transaction rather than on the purely legal and technical aspect. Considering the matter from this point of view it is obvious that the assessee was paying additional interest to the Recurring Deposit holders as a matter of commercial expediency and even though it was ascertained after the end of the previous year it was a payment essentially of interest on capital borrowed and not a parting of the profits of the assessee. The other contention of the revenue was that it was a payment to the shareholders and therefore to be considered as a dividend and not an expenditure. It was factually found by the CIT (Appeals) and we uphold that finding that the additional interest was paid only to the holders of the Recurring Deposit accounts in their capacity as creditors and not as shareholders. Hence this contention also fails. In the circumstances, we see no reason to differ from the order of the CIT (Appeals) which is hereby confirmed. 5. The appeals are dismissed.
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1988 (11) TMI 148 - ITAT JAIPUR
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... ... ..... vant to asst. yr. 1980-81 and also in 1981-82. When she was under the bona fide belief that her income is below taxable limit, there is no case of penalty for not filing the return in inspite of issue of notice. In that case there should not only be a reasonable cause, but in addition to that the assessee has to prove that the assessee has no taxable income. Therefore, when the assessee failed to furnish the return for 1981-82, the assessee is liable for penalty under s. 271(3)(b) amounting to Rs. 25 as the assessee failed to furnish the return inspite of service of notice under s. 139(2) of the Act. But as the ITO has not imposed the penalty under s. 271(3)(b), we are unable to impose the penalty at our level. Therefore, in our view, when the assessee had a reasonable cause having not filed the return on the bona fide belief that the assessee has no taxable income, the penalties so levied and upheld by the AAC are hereby cancelled. 6. The appeals of the assessee are allowed.
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1988 (11) TMI 147 - ITAT JAIPUR
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... ... ..... he rival submissions and considered the material on record including Memorandum of Association. In my view clause 3, quoted above, covers the rental income was not assessed as income from the business in 1980-81 that, does not mean that all time to come it should not be taken as business income. Each year is independent and is to be decided on the facts of each year. In looking to the memorandum of Association of the Company and overall facts of this case, it is sufficient to hold that the rental income received by the assessee should be assessed under the head income from business and not income from property. Now I hold that the assessee was carrying on business in the year under consideration, the deductions for carrying on business claimed by the assessee is allowed. The interest under s. 139(8) and s. 217 is consequential and the ITO should consider it after giving effect to the appellant order. 6. In the result the appeals of the assessee are allowed for both the years.
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1988 (11) TMI 146 - ITAT JAIPUR
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... ... ..... The provisions of development rebate reserve are in parimateria in respect of investment allowance. Again, in the case of Nipa Twisting Works vs. ITO (1985) 21 TTJ (Ahd) 586 (TM) (1985) 11 ITD 387 (Ahd) (TM) on similar facts identical controversy was resolved and it was held that on dissolution of partnership firm investment allowance could not be withdrawn. 5. The Departmental Representative relied upon the order passed by CIT(A). 6. On going through the relevant judicial pronouncements, we find that issue is fully covered in favour of the assessee. We find that identical controversy was already decided in the case of Nipa Twisting Works and, therefore, we need not deal with the controversy again. We, therefore, set-aside the order passed by the Commissioner (A) and hold that investment allowance granted to the assessee cannot be withdrawn. The Assessing Officer is directed to pass appropriate orders in the case of firm as also partners. In the result, the appeal is allowed.
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1988 (11) TMI 145 - ITAT JAIPUR
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... ... ..... erfere. 5. The assessee made a claim under s. 80G in respect of an amount of Rs. 501 paid to Gaushala. In absence of appropriate receipt clarifying that receiving trust was formed for charitable purpose, the Assessing Officer rejected the claim. The first Appellant Authority held that since no evidence was laid the claim could not be accepted. However, he directed the Assessing Officer to allow the claim of the assessee on production of appropriate evidence together with a application under s. 154 of the Act. We find that the decision taken by the Commissioner(A) is fair and, therefore, we decline to interfere. 6. The last ground is in connection with charge of interest under s. 215. This is only consequential and, therefore, no order is necessary. 7. To the extent as above, the order passed by the Commissioner (A0 is modified and the Assessing Officer is directed to pass appropriate orders in the case of fair as also partners. 8. In the result, the appeal is allowed in part.
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1988 (11) TMI 142 - ITAT JABALPUR
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... ... ..... t Rs. 4,000 per acre, the observations of the Asst. CED were, inter alia, as below The deceased owned inasmuch as 56.82 acres of agricultural land in as many as 21 villages. The value of which has been shown at Rs. 1,21,100 which is very law. In that area, the land is very much fertile because of irrigation facilities and it yields two crops. Therefore, the value of the agricultural land will be taken at the average rate of Rs. 4,000 per acre, which comes to Rs. 2,27,280 as against shown by the deceased at Rs. 1,21,100 . It is not possible for the learned counsel for the accountable person to how as to show the above finding of the learned Asst. CED was erroneous on facts in the absence of any evidence in support of the accountable person s case and in view of the reasons given by the learned Asst. CED, we feel that the finding recorded by the authorities below is correct and in interference with the same is warranted. 8. Accordingly, the present appeal stands partly allowed.
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1988 (11) TMI 141 - ITAT HYDERABAD-B
Assessment Year, Borrowed Capital, Carrying On Business, Deduction In Respect, Manufacture And Sale, Same Business
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1988 (11) TMI 140 - ITAT HYDERABAD-A
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... ... ..... annot sustain the wholesale cancellation of the assessment order by the learned CIT but we sustain his order with reference to the following direction found at the close of para-4. From a perusal of the records I noticed that this aspect was not considered by the WTO and as the circumstances that were in the asst. yr. 1980-81 continued to prevail interest he subsequent years also, the monies recoverable. The WTO had not brought on record, any reason for deviating from the earlier, stand. In view of this, I feel the issue had to be looked into afresh as the WTO failed to examine all aspects of the case. We confirm this part of the CIT rsquo s direction and we direct the WTO to follow the direction and give a finding regarding the includibility or otherwise of Rs. 18,090 due to the assessee from N.S. Chenoy and Rs. 41,916 due to the assessee from D.B. Mistry, while making consequential assessments for asst. yrs. 1981-82 and 1982-83. 16. The appeals are therefore partly allowed.
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1988 (11) TMI 139 - ITAT HYDERABAD-A
Assessment Year, Delay In Filing Appeal ... ... ... ... ..... entally while in the appeal form there are 14 columns, in the cross-objection form there are only 8. 39. Finally, cross-objections have a distinct identity of their own. They are separate from an appeal. In a given situation on account of certain technical difficulties faced by a litigant, while it may be permissible to treat an appeal as cross-objection, as has been held by the High Courts of Punjab and Haryana and Rajasthan while interpreting the provisions of Civil Procedure Code, we are of the considered view that in the peculiar facts and circumstances of this case, wherein the assessee filed an appeal with more than 100 days delay and has not come up with clean hands and wherein the stand taken by it has been found to be utterly false, they are not entitled to any judicial indulgence to the extent of moulding their appeal into a cross-objection. 40. In the result, the condonation application is dismissed. Consequently, the appeal being time barred also stands dismissed.
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1988 (11) TMI 138 - ITAT HYDERABAD-A
Assessment Year ... ... ... ... ..... mpensation (i) Compensation shall be due as from the date of vesting and shall carry interest at the rate of two and three-fourths per annum from the date of vesting to the date of payment. 6. Therefore, we have no hesitation in holding that the interest granted by the Revenue Divisional Officer as on 31-3-1981 and as on 29-3-1982 are only amounts of interest granted under statutory provisions by the obligation of which no discretion is left in the R.D.O. Therefore, the interest that is awarded u/s 15(i) of the Inam s Abolition Act is akin to sec. 34 of the Land Acquisition Act and hence the ratio of the Andhra Pradesh High Court that it should be taxed in the year in which it accrued, clearly applies. Therefore, following the said decision we have to hold that the amount which should be considered in the hands of the assessee for this year is only Rs. 32,047 and not Rs. 49,306 as held by the lower authorities. Hence he gets relief of Rs. 17,259. The appeal is partly allowed.
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1988 (11) TMI 137 - ITAT HYDERABAD-A
Assessment Year ... ... ... ... ..... e assessee does not incur the expenditure budgeted for and there is some savings, as it had happened here, there can be only two possibilities (1) the assessee should return the amounts saved to the producers and (2) the assessee could retain it as his own. According to the department, this is a case where the assessee could retain the amount for himself. Now in order to show if there were any savings that is to be returned to the Producers, the assessee must show some clause and condition in the agreement to this effect. We have gone through the agreement carefully but it contains no such condition that any savings out of the publicity expenses would be refunded to the Producer. Under these circumstances, the amount saved from the budgeted expenditure need not be refunded and therefore it is a receipt arising to the assessee, in the course of his business of distribution of films. The Commissioner (Appeals) is therefore correct in her findings. 8. The appeal stands dismissed
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1988 (11) TMI 136 - ITAT HYDERABAD-A
Accounting Year, Bad Debt, Business Loss, Debt Due ... ... ... ... ..... or whether it is disputed liability, if it is a disputed liability then it should not be taken to be the income of the assessee at all according to the above authorities. But if it is the liability which is admitted but still the amounts were written off, in such cases the learned CIT(A) is directed to consider whether such debt became bad if so in which year. If the learned CIT(A) feels that such a debt became bad within 4 years prior to the accounting year under consideration then he should give appropriate directions to the I.T.O. to reopen those assessments and allow bad debts in the years in which he feels that they became really bad invoking the provisions of sec. 155(6) of the I.T. Act. 13. In the result the appeal is partly allowed. 14. The interest u/s. 139 and 217 are consequential. They must be reduced proportionately while giving effect to this Tribunal s order. Hence the second substantial question involved in this appeal is also allowed for statistical purposes
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1988 (11) TMI 135 - ITAT GAUHATI
A Partner, Assessment Year, House Property, Minor Child, Partnership Firm, Total Income ... ... ... ... ..... re of the opinion that the AAC has erred in allocating the income from the property as assessable in the hands of Shri G. Sharma Barua and Shri Phani Sharma in the ratio of 106 35, as in fact Shri Phani Sharma could not have contributed the land which have already leased out by him earlier. The alleged contribution of the land by Shri Phani Sharma was a sham transaction. 23. In this view of the matter, the order of the AAC on the point regarding proportionate allotment of income is set aside. The entire income would stand assessable and includible in the assessments of Shri G. Sharma Barua. 24. In view of this conclusion in the substantive assessment in the hands of Shri G. Sharma Barua, the assessment made by the ITO in respect of the income dealt with in this order, in the hands of Shri Chinmoy Sharma on protective basis and as sustained by the AAC stands modified. 25. In the result, the appeals by the assessee are dismissed and the appeal by the revenue is allowed in full.
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1988 (11) TMI 134 - ITAT DELHI-E
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... ... ..... the service of a notice. It is incomprehensible that a WTO after having issued notice under s. 14(2) of the Act would take no action whatsoever for as long a period as 6 1/2 years. We, therefore, hold that no notice under s. 14(2) of the WT Act was ever served on the assessee and, therefore the assessee was entitled to the benefit of Voluntary Disclosure Scheme. No penalty could, therefore, be levied on the assessee. We may also mention that for asst. yr. 1968-69 and 1969-70 to 1973-74, the WTO himself dropped the proceedings under s. 18(1)(a). A copy of the WTO s order is at page 37 of the paper book. At the hearing we were informed that for those years also the assessee had filed wealth-tax returns under the same scheme and penalty proceedings were dropped because no notice under s. 14(2) was issued. 6. For the reasons discussed above, we hold that no penalty was leviable in this case, the appeal is accordingly allowed and the orders of the authorities below are cancelled.
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1988 (11) TMI 133 - ITAT DELHI-E
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... ... ..... ded on the assumption that the agreement of sale was in fact a sale deed. He has even referred to this document at some places as a sale deed. In fact, there was no sale and there was merely an agreement to sell and, therefore, no transfer either by way of gift or by way of sale took place, in the relevant previous year. The assessee has placed in the paper book some papers relating to litigation between two sons of the deceased after the death of their mother Smt. Maya Devi who is stated to have executed a Will in favour of Shri Roshanlal Mehta in respect of the property which was the subject matter of the agreement to sell. The suit was compromised between the two brothers and the rest of the property was partitioned. In our view, therefore, the CIT(A) was right in holding that there was no transfer of the property in favour of Shri Roshanlal and consequently there was no gift. We uphold this finding. 12. In the result, Revenue s appeal has no force and is hereby dismissed.
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1988 (11) TMI 132 - ITAT DELHI-E
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... ... ..... ssessee s non-co-operative attitude must necessarily be kept aside but here even the AAC s order gives no basis for fixing the taxable wealth at Rs. 3,00,000 for each of the 9 years as against the figure of Rs. 5,00,000 adopted by the WTO. 8. Though on the peculiar facts of the case the WTO s action in resorting to ex-parte assessments cannot be said to suffer from any infirmity and is upheld, we direct the AAC to decide the appeals afresh and if the assessee had raised the contention against initiation of proceedings under s. 17(1)(a) he must decide that aspect also besides analysing the facts for fixing the taxable wealth for each of the 9 years. Since the order of the first appellate authority is vacated, but we have upheld the framing of ex-parte assessments for the purposes of statistics the assessee s appeals are treated as partly allowed as fresh adjudication shall be in relation to initiation of s. 17(1)(a) proceedings and determining the quantum of assessable wealth.
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1988 (11) TMI 131 - ITAT DELHI-E
Assessment Year, Central Government, Income Tax, Net Wealth ... ... ... ... ..... the Central Govt. and not on the basis of actual receipts In other words, the assessee s income-tax assessments are based on the actual receipts and not on any notional basis as was the case sought to be made out for wealth-tax purposes. Even up to the time of hearing before us, which was on 13th of October, 1988, it was not stated that any part of the salary was refunded or any claim was made by the employer-company. On the other hand, it was accepted that from 1984 onward the sanction had been accorded by the Central Govt., but up to 1984 it was not given because of some pending dispute in the Supreme Court. On the above facts as also on the facts stated by the Commissioner of Wealth-tax (Appeals), we find no case for the assessee to escape assessment in relation to Rs. 90,270 which not only belonged to the assessee but he had full domain over the money utilisation. The assessee, therefore, fails. 5. to 7. These paras are not reproduced here as they involved minor issues.
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1988 (11) TMI 130 - ITAT DELHI-C
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... ... ..... er (A) that the IAC had not been able to show any material to justify his estimates except grave suspicion. Nor any material is placed before us to show that there was any instance of leakage of revenue even in one case. The receipts by way of job work were so meagre compared to the enormous turnover that the assessee was receiving, that it is highly unlikely that he would resort to any suppression of income in this behalf. The reason given by the IAC that there was no linkage between the sale memos and orders issued is not a correct reason because the assessee was able to explain very satisfactorily the connection between the two. These additions also came up for consideration in the two cases, which we have referred to earlier and the Tribunal by its order deleted those additions also. The deletion of the addition made of Rs. 30,000 on account of job work is also considered reasonable and we uphold the order of the Commissioner(A). 9. In the result, the appeal is dismissed.
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