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Case Laws
Showing 81 to 100 of 280 Records
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1984 (2) TMI 217 - ITAT PUNE
Appeal To High Court, Fixed Deposit, Market Value, Net Wealth ... ... ... ... ..... mbrance or burden. 11. It now remains to consider whether the property claimed to be acquired by the assessee on the partial partition was free of the encumbrance. On the facts, it is amply clear that there was no question of the liability for refund of the compensation having been retained by the HUF while the fixed deposit was allotted free of the encumbrance to the assessee. What came to the hands of the assessee was the fixed deposit receipt itself and that lay pledged with the bank, as has been certified by the bank as per its certificate dated 6-12-1980. On the facts, therefore, we hold that the fixed deposit receipt was bereft of value were it to be sold as on the valuation dates under consideration in terms of section 7(4) of the Wealth-tax Act, 1957. We, therefore, set aside the orders of the authorities below on this point and direct that the amount of Rs. 2,44,989 added on this account in the net wealth be deleted. 12. In the result, the appeals are partly allowed.
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1984 (2) TMI 216 - ITAT PUNE
HUF Property ... ... ... ... ..... lable in the case of Harshadlal Manilal. The case before us has its own peculiar facts. In this case, the Tribunal had accepted the assessee s claim that the property was HUF property in income-tax proceedings for the assessment year 1971-72 and in wealth-tax proceedings for the assessment years 1971-72 to 1974-75. The said order of the Tribunal was accepted by the department for subsequent years, the department itself has held the property to be HUF. In fact, after the Tribunal s order was accepted, the property has been partitioned amongst the members of the family. Apart from what is stated by us above, the view taken by the Gujarat, the Punjab and Haryana High Courts and subsequently the Allahabad High Court has appealed to us. In this view of the matter, we are inclined to hold that on the peculiar facts of this case, the property and the income therefrom should be treated as belonging to the HUF of the assessee. 12. In the result, the departmental appeals are dismissed.
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1984 (2) TMI 211 - ITAT PATNA
Cash System, Deduction Of Interest, Interest Income, Interest Payable, Mercantile System ... ... ... ... ..... ssessee s case, no attempt has been made by the assessing officers in including the interest receivable on moneys advanced to Bihar Alloy Steels Ltd. on mercantile basis even though, admittedly, the said lender-companies, all belonging to the Birla group of cases, did not account for the interest in their respective books of account on the plea that the same was to be accounted for as and when received from debtor-company. 9. We would, accordingly, hold that the Commissioner was not justified in observing that the ITO s orders were erroneous insofar as they were prejudicial to the interests of the revenue as he failed to bring the amount of interest into the fold of taxation , for the assessment years 1976-77 and 1977-78. We would, accordingly, vacate the aforesaid finding of the Commissioner and restore the ITO s orders in this regard for each of the two assessment years under appeal. 10. No other grounds have been pressed. 11. In the result, the appeals are allowed in part.
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1984 (2) TMI 209 - ITAT NAGPUR
Penalty For Late Filing Of Return ... ... ... ... ..... Even on merits, if it is seen that Shri Raghunath Sarda was detained under MISA from 30-6-1975 to 27-9-1976 and he was further externed from the limits of Nagpur Corporation for six months from 28-9-1976 to 28-3-1977. The due dates for filing the returns of wealth were on 31-7-1975 and 31-7-1976, respectively, during which period he was detained under MISA. The assessee filed the returns of wealth for both the years under consideration on 9-12-1977. Having been away from home for nearly two years, the assessee cannot be expected to file the returns immediately after coming to Nagpur, namely, on 28-3-1977 as it would naturally take some time for him to set right his house hold affairs and to attend to the taxation matters. We are, therefore, of the opinion that the delay in filing the returns by the assessee is supported by reasonable cause. Even on merits, the penalties sustained by the AAC are hereby cancelled. 8. In the result, the appeals filed by the assessee are allowed.
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1984 (2) TMI 206 - ITAT NAGPUR
Investment Allowance ... ... ... ... ..... tured was not used before and what might have been possibly used earlier would be the component parts which were acquired from the scrap dealers. We are, therefore, of the opinion that the ITO is not justified in refusing the claim of investment allowance under section 32A made by the assessee on the ground that the machinery is not new and we fully agree with the order passed by the Commissioner (Appeals) on this count and the appeal filed by the revenue on this count is, accordingly, dismissed. 8. Regarding the second ground since the Commissioner (Appeals) has allowed the entire depreciation claimed by the assessee following the decision of the Madras High Court in the case of Waterfall Estates Ltd. and since the revenue has not cited any decision contrary to the decision relied upon by the Commissioner (Appeals), mentioned supra, we agree with the order passed by the Commissioner (Appeals) on this ground also and the appeal filed by the revenue is, accordingly, dismissed.
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1984 (2) TMI 205 - ITAT NAGPUR
Advance Tax, Interest Payable By Assessee, Late Filing, Regular Assessment ... ... ... ... ..... rs to be in favour of treating an assessment made under section 147 to be different from a regular assessment. Moreover, the words regular assessment have been defined in section 2(40) whereas, there was no similar definition in the 1922 Act. Therefore, the earlier decision of the Bombay High Court in Deviprasad Kejriwal s case has been rightly distinguished by the Bombay High Court. Having due regard to all these considerations, we are satisfied that an assessment made under section 147 read with section 143(3) or section 144 would not be a regular assessment as defined in section 2(40) and as such, penal interest under section 139(8) and section 215 cannot be charged inasmuch as, these sections specifically relate the levy to the completion of a regular assessment. We accordingly, set aside the orders of the AAC, in this behalf and cancel the penalties levied in this regard. 10. In the result, the appeals field by the assessee are allowed and the AAC s orders are set aside.
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1984 (2) TMI 202 - ITAT MADRAS-D
Additional Income-Tax On Undistributed Profits ... ... ... ... ..... declared would be quite unreasonable. Similarly for the assessment year 1978-79 with a commercial profit of Rs. 2,63,781 declaration of a larger dividend than that declared would be quite unreasonable. It is also not seen that the payment of a dividend or a larger dividend would have resulted in a benefit to the revenue. In other words, as stated in the Tribunal order cited supra there is no detriment to revenue because of the postponement of the declaration of the dividend for this previous year. So the ITO as provided in section 104(2) should not have made an order under clause (i). 12. The question whether the assessee is an industrial company or not, is left open for both assessment years. It is not necessary to decide it for the disposal of these appeals in the manner in which we are doing it. 13. For these reasons stated above, these two appeals are allowed. The orders of the ITO for the two assessment years levying the income-tax on undistributed income are cancelled.
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1984 (2) TMI 200 - ITAT MADRAS-C
Shipping Business ... ... ... ... ..... rebate of Rs. 1,82,099 is part and parcel of the same transaction. It is an integrated whole. It is not separable. It cannot be split up into two separate transactions and each treated as an independent receipt and an independent expenditure. This is tantamount to a discount sale. As it is specified in the manifest itself, the fact that it was refunded only two months later is immaterial and is of no effect. The refund is only consequential because it had been already agreed to, even at the time of manifest. Had it not been so specified in the manifest, the position might have been different. So the rebate cannot be divorced from the freight. The transaction of freight and rebate has to be taken as a whole and treated as a whole. If that is done, then Rs. 9,92,975 is the amount paid or payable on account of such carriage to the owner of the ship. So the original assessment order was not prejudicial to the interests of the revenue. 3. Appeal allowed. Revision order cancelled.
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1984 (2) TMI 197 - ITAT MADRAS-B
Educational Institutions, Interest Income, Religious Trust ... ... ... ... ..... only for educational purposes. Even with regard to the income, it can be seen from the statement of expenditure and income that there was a sort of deficit financing in the sense that the primary school fees were insufficient to meet the total expenditure which was met only with the aid of interest from the loans. It is clear on the facts of the case that the income from interest from the loans was feeding the educational purposes and was clearly the income of the institution maintained for educational purposes. In the circumstances, we are of the opinion that the assessee should succeed even on the basis of this alternate ground that the entire income is exempt under section 10(22) even if by any other view of the matter, the assessee were to be denied exemption in respect of interest income on the ground that the conditions contained in section 13(2)(a) had not been satisfied. We have, therefore, no hesitation in confirming the orders of the AAC. The appeals are dismissed.
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1984 (2) TMI 194 - ITAT MADRAS-A
Business Expenditure ... ... ... ... ..... ributes their might for relief. So the workers would have ordinarily requested the mill to take a lead in such matters. So the expenditure was at the behest, initiative and desire of the local officials and mill workers. The assessee in private enterprise cannot afford to displease the local officials nor their workers. Non-cooperation with the local officials or indifference to the request of the workers will lead to difficult situations. The adverse effect of such a conduct can well be imagined than described. So the expenditure incurred at the behest of Government officials and mill workers is amply supported by commercial expediency. It is, therefore, allowable under section 37. There is nothing personal, capital, charitable or donative in such expenditure. It was all incurred only because of pressure from outside authorities. It was not a voluntary charitable donation. So it is allowed. Ground allowed. 9. Three appeals allowed in part. The three stay petitions dismissed.
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1984 (2) TMI 192 - ITAT MADRAS-A
Business Expenditure ... ... ... ... ..... alf of the revenue that when a particular deduction is allowable under section 80G, the same amount could not be considered for deduction under section 37 of the Act. We find that the deduction under section 80G is for all the assessees who may or may not have business whereas the same amount if it is an expenditure laid out for the purpose of business must necessarily come within the admissible deduction under section 37. The deduction under section 80G is only for a donation simpliciter and when the amount ceases to be a donation and takes the form of an expenditure laid out for the purpose of the business, section 80G will have to be excluded and the deduction has to be given under section 37. We, therefore, direct the ITO to allow this deduction subject, of course, to the verification of the vouchers for payment which, according to the assessee, are available. 4. This para is not reproduced here as it involves a minor issue. 5. In the result, the appeal is partly allowed.
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1984 (2) TMI 191 - ITAT MADRAS-A
Assessment Order, Subject Matter ... ... ... ... ..... ol. I, 413 and 414 there is a discussion about these types of receipts. If those passages are taken into consideration along with the Privy Council decision in CIT v. Musammat Bhagwati 1947 15 ITR 409, which also is commented upon in that text, it becomes clear that such receipts received by the lady before the Hindu Adoptions and Maintenance Act is not taxable. In the Privy Council decision it is stated that in order to earn the exemption in respect of the receipts for maintenance amount, all that the assessee need to prove was that she was getting the same in her capacity as the widow of a deceased coparcener. The position has not in any way got altered by the Hindu Women s Rights to Property Act, 1937, or the Hindu Succession Act, 1956, or the Hindu Adoptions and Maintenance Act or by any of the provisions of the Income-tax Act, 1961. So we hold that such receipts received by the lady is not taxable income. 6. Appeal allowed. Rs. 12,000 received by the lady is not taxable.
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1984 (2) TMI 188 - ITAT JAIPUR
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... ... ..... ibunal, therefore, held that the ITO was well aware of the evidentiary value of the report of the Valuation Officer while making the original assessments, but he postponed the procurement of that evidence until the completion of the constructions. On these facts, the Tribunal took the view that this is not a case of subsequent information, because the report of the Valuation Cell, which the ITO obtained in a later year, was already under contemplation of the ITO when the original assessments were made. What the ITO could have done at the stage of the original assessment, he deferred the same to the stage of the completion of the construction. On these facts, the Tribunal held that it was a subsequent information. In short, there was no subsequent information, according to the Tribunal, which came to the knowledge of the ITO for the first time at a subsequent stage. On these facts, we hold that no referable question of law arises. 7. The applications are, therefore, dismissed.
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1984 (2) TMI 187 - ITAT JAIPUR
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... ... ..... e circumstances exist, whether or not that authority had in fact, exercised that power, such an authority should be deemed to have exercised that power. Consequently, the issue arising out of the assessment order which were decided by the ITO in the assessees rsquo favour over which the AAC had power to examine and pass appropriate orders but did not actually do so, the Tribunal held that the AAC should be deemed to have examined these issues and agreed with the ITO and even that portion of the assessment order is merged with that of the AAC. Relying on this decision which considered, almost the entire case law relevant on the point of merger, we accept the assessee rsquo s contention. 3. The assessee having succeeded on the legal ground, we do not entire into the merits of the case. We, therefore, hold that the order of the ITO having been merged with the order of the AAC, the CIT was not right in exercising jurisdiction under s. 263. 4. In the result, the appeal is allowed.
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1984 (2) TMI 186 - ITAT JABALPUR
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... ... ..... the fact that the firm came into existence w.e.f. 24th Oct., 1976. The previous year to be followed was 5th Nov., 1977 i.e. the year ending on Diwali. The assessee has filed the form on 5th Nov., 1977 overlooking the fact that the firm had been closed w.e.f. 31st July, 1977. This is a mere venial breach of law. We do not find this as a justification for refusing registration to the otherwise genuinely constituted firm because the ITO in refusing registration has not taken any other ground than the application being out of time. 4. We would like to observe that before refusing registration, the assessee was required to be given a notice and now it is well-settled that when such a notice was given for the delay of the type involved in this case the assessee can request for condonation. On the facts of the case we direct that the assessee be granted registration. We, therefore, set aside the orders of the authorities below and direct the ITO to do the needful. 5. Appeal allowed.
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1984 (2) TMI 185 - ITAT JABALPUR
Appellate Tribunal ... ... ... ... ..... ence of the Assistant Registrar on a holiday, these were accepted. All the appeals, as clearly described above, did not have any of the documents required under rule 9 except the memo of appeal and the order of the Commissioner, Jabalpur (M.P.) under section 24(2). Therefore, the manner of handling all these appeals by the revenue shows apathetic attitude as no effort had been made to remove the defects which were pointed out to the revenue, as early as in August 1982. All these appeals are apparently incompetent and defective. More than sufficient time for removing the defects had been given with due notices to the revenue as mentioned supra. Since the defects have not been removed and no copies of the orders of the authorities below have been filed, there is no order before us against which these appeals can be said to have been filed to give any grievance to the revenue. We, therefore, determine these appeals as incompetent and dismiss them in limine. 8. Appeals dismissed.
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1984 (2) TMI 184 - ITAT INDORE
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... ... ..... der/s. 31 (1) (a) of the IT Act, 1922 for making a reassessment. The Tribunal held in that case that it could not be said that there was any omission of failure on the part of the assessee to make a return of his income under s. 22 or to disclose fully and truly all material facts necessary for his assessment. A reference application was moved on behalf of the Department praying that a case may be stated and the question of law covering the controversy whether the ITO was justified in starting proceedings under/s. 34 (1) (a) for making a reassessment for 1945-46 may be referred to the High Court for its decision, The Tribunal rejected the reference application. The Hon rsquo ble Supreme Court held in that case that no question of law arose. Following this decision, we are clearly of the opinion that no question of law arses out of the order of the Tribunal dt. 29th Jan., 1982, We, accordingly decline to state the case. 8. In conclusion, the reference application is dismissed.
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1984 (2) TMI 183 - ITAT INDORE
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... ... ..... rd an iota of evidence to show that profits credited in the account of new partners and withdrawn by them were, in fact, appropriated, by the two old partners or somebody else. 13. Taking into account the cumulative effect of all the facts and circumstances discussed above, we feel no hesitation in coming to the conclusion that all the three elements necessary to constitute a partnership in law have been fully established in this case. It must therefore, be held that a new partnership consisting of the four partners came into existence w.e.f. 1st April, 1980 and that this partnership firm carried on business during the accounting period relevant to the assessment year under appeal. In our opinion, the lower authorities were clearly in error in holding that the two partners are not genuine partners, and that the firm is also not genuine. 14. For the foregoing reasons, we allow the appeal. The ITO is directed to grant registration to the assessee firm for the asst. yr. 1981-82.
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1984 (2) TMI 182 - ITAT HYDERABAD-B
Rectification Of Mistakes, Apparent From Record ... ... ... ... ..... acity of an individual. He submits that whether or not his arguments are acceptable to us they can be taken to be plausible interpretations put against the wordings of section 80L and as such it is a case where it can be said that there is no mistake of law or if there is one it can be derived only by a long-drawn process of reasoning on points on which there may be conceivably two opinions. Therefore, be argued that the impugned order of the AAC is not liable to be disturbed at our end. 4. After hearing both sides we are inclined to agree with the contentions advanced by Shri Swamy, the learned counsel for the assessee. We hold on merits that there is no mistake of law apparent from record. We hold that the issue is highly debatable or on which there may be conceivably two opinions. Therefore, we hold it is not a fit case where the ITO can exercise powers under section 154 validly. We, therefore, confirm the orders of the AAC and dismiss the appeals preferred by the revenue.
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1984 (2) TMI 181 - ITAT HYDERABAD-B
Interest In Property, Market Value, Minor Child ... ... ... ... ..... e to the difference between such market value and the stated consideration to tax under section 64. This, in our opinion, is an oversimplification not warranted by law. It is because the ITO has to show that the stated consideration to be so low as to shock the conscience of a Court which may direct avoidance of the sale itself if, for example, it were made by a minor at that price. On the facts and in the circumstances of the assessee s case, we find that there is no scope for application of section 64 as we are not convinced that the stated consideration is not bonafide or otherwise inadequate so as to justify inference of a segment of gift in this transaction of relinquishment/sale of half interest to the co-owner, his wife. 5. In view of the conclusion in the preceding paragraph the cross-objection is allowed. Additional alternative grounds sought to be raised in the cross-objection are not considered as the cross-objection has succeeded. Departmental appeal is dismissed.
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