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1950 (1) TMI 22
... ... ... ... ..... The profits received prior to that date were received by the family and not by the assessee. For the reasons already stated by us, it is open to question whether the allotment of the business assets at the partition was liable to be apportioned as between capital and profit unless there was any such specific provision in the deed of partition. In any case, the learned Chief Justice who was a party to the decision in Commissioner of Income Tax, Madras V. Annamalai Chettiar, I.l.R. (1945) Mad. 125 A. I. R. 1914 Mad 398 and t....... + More
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1950 (1) TMI 21
... ... ... ... ..... e tenant for manufacture does not make the lease for manufacturing purpose within the meaning of Section 103, T. P. Act. It is necessary to emphasise that a lease or a tenancy must be by agreement, between the landlord the tenant both the parties must know that the lease is for manufacturing purpose at the time of the grant. If that not so then the nature of subsequent user of the premises by the tenant without agreement of the landlord will not convert such a lease into one for manufacturing purpose. 17. In those circumst....... + More
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1950 (1) TMI 20
... ... ... ... ..... Tribunal's refusal to state a case on the ground that no question of law arises. Moreover, though it may in some ways be convenient to hear the application at the time of the disposing of the main reference, the learned advocate for the appellants has pointed out that the postponement of the consideration of the assessee application to that stage would necessitate an undue delay in the disposal of the whole reference. Whatever may be said as to the stage at which an application under Section 66 (2) should be heard, we ....... + More
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1950 (1) TMI 19
... ... ... ... ..... ated 27-6-1933, clearly mentions that the receiver was selling the disposing power of the father over the son's share, if any, of the Insolvent in the properties mentioned therein. As already stated, even in the plaint the plaintiff himself understood the transaction as conveying the entire property. We therefore hold that the entire properties including the son's shares were sold under Ex. P-2 and Ex. P-4. 13. In the memorandum of objections filed by the defendants 2 and 5, it is contended that the lower Court sho....... + More
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1950 (1) TMI 18
... ... ... ... ..... ays been a constitutional trade unionist. It must therefore be taken, for the purposes of this case, that the said allegations are well-founded. If see membership of that party cannot be ruled out of consideration as material on which no satisfaction could rationally be grounded. There are also the allegations already referred to about the appellant assisting and associating with a prominent member of the party who has gone underground and about the likelihood of the appellant himself going underground and from there guidi....... + More
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1950 (1) TMI 17
... ... ... ... ..... nd gains accruing or arising to the resident either within or without British India are brought into charge. There is no question here of any apportionment under Section 42(1) and (3). For these reasons our answer to the first of the questions referred to us is that Section 42(1) and (3) of the Act have no application to the computation of income accruing or arising to the company in British India for the purposes of Section 4A(c)( b) even if the manufacturing process of the goods which were sold in British India took plac....... + More
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1950 (1) TMI 16
... ... ... ... ..... the arrangement under which the managing agency rights were acquired. This position is not inconsistent with the view of Chagla, J., in Ramachandra v. Chinubhai AIR 1944 Bom. 76 , where the learned Judge observed To my mind it is impossible to contend that the mere office of managing agent without any benefits attaching to it can ever be deemed to be joint family property. The learned Judge in that sentence must have been thinking of a case where no detriment to the family estate was involved in the acquisition of the offi....... + More
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1950 (1) TMI 15
... ... ... ... ..... be part of the income of the assessee and does not support the contention urged on behalf of the assessee in the present case. The argument addressed on behalf of the assessee that the Income-tax Officer is bound to proceed to determine the question raised by the assessee under Section 24(3) and record the loss, notwithstanding the withdrawal of the notice under Section 34 and notwithstanding the fact that the Income-tax Officer declined to proceed further under Section 34 is not supported by any authority. Nor are we prep....... + More
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1950 (1) TMI 14
... ... ... ... ..... 15 Abkari Act punishable under Section 55 because the unlicensed partner, by himself, or through his agent the other partner, sells without a license, The learned Judges also held that even though a partnership was lawful at its inception because it was not intended to infringe any of the provisions of the Contract Act, it nevertheless, became unlawful when it intended to conduct the business jointly on a licence granted to one only of the partners In view of this opinion we must hold that the object of the partnership was....... + More
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1950 (1) TMI 13
... ... ... ... ..... ere fact that money was made available or a deposit partakes the character of a loan on an ultimate analysis would not convert the money made available by the customers to the assessees as security deposit a borrowing or make the money borrowed money within the meaning of the rule. The transaction itself is described as a security deposit and in law a distinction is drawn always between a loan simpliciter and a deposit. In the light of the decision of the Court of Appeal and in view of the facts and circumstances of this c....... + More
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1950 (1) TMI 12
... ... ... ... ..... s the exemption itself excludes from its ambit incomes chargeable by reason of Section 42. As already stated, this case itself furnishes an instance where Section 42 of the Act may be applied to residents in British India with reference to profits earned by them in Native States, if there is a business connection, The effect of the application of Section 42 to such cases is to take away the exemption from liability granted by Section 14(2)(c) of the Act in respect of profits earned by residents of British India in Native S....... + More
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1950 (1) TMI 11
... ... ... ... ..... Magistrate to take up the case the proceeding shall be deemed to be based upon the complaint which has been duly filed within the period of limitation prescribed in the section. He shall, and I consider it is imperative, that he should allow the parties to adduce fresh evidence as the proceeding before the Honorary Magistrate, which includes examining and recording the evidence of witnesses, is bad in law. In case he is not a Magistrate competent, it is all hopeless for the complainant. He has absolutely no remedy. I invit....... + More
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1950 (1) TMI 10
... ... ... ... ..... e profits from the sale of all the gold bars became determinable. I am further of opinion that the assessee should get his costs from the department and I would assess them at ₹ 500. BY THE COURT.--Our answers to the two questions are, therefore, as follows - (1) In the circumstances of the case, the profits from the sale of the three gold bars sold on the 27th of April, 1943, have not been proved to have arisen from an adventure in the nature of a trade within the meaning of Section 2(4) of the Indian Income-tax Act....... + More
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1950 (1) TMI 9
... ... ... ... ..... 573. /casereference In the last case judge Lord Greene /judge stated the position quite concisely in these terms There is no definition of that expression (capital expenditure) which must, in their Lordships' opinion, be construed in a business sense save in so far as there may be rules of construction applicable to it. Their Lordships feel no doubt that in a business sense this expenditure is expenditure on revenue account and not on capital account..... . Applying the test laid down in that case we are of the opinion....... + More
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1950 (1) TMI 8
... ... ... ... ..... nd therefore no question of deduction in respect of the sum of ₹ 4,500 allowed by Section 4(1)(c), third proviso, arose in the case. On the question whether Section 42 (1) applied to residents or whether it was confined in its application to non-residents as held by the learned Judges of the Bombay High Court, the Judicial Committee expressly reserved their opinion. The Bombay case has therefore no bearing on the present question. For these reasons, we answer the first question referred to us in the affirmative and a....... + More
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1950 (1) TMI 7
... ... ... ... ..... of Section 25(4) by reading the words end of the previous year as if they ran end of the last year whose profits have been assessed to tax , or the end of the year of account preceding the assessment year in which there has been a succession and (6) to the anomalous and arbitrary consequences resulting from an acceptance of the construction contended for by the assessee in the imposition of different burdens and the grant of different standards of relief for taxpayers occupying the same position and falling within the same....... + More
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1950 (1) TMI 6
Penalty for wrongful with holding of property ... ... ... ... ..... view that the non-summoning of the original notice would make a copy of it inadmissible cannot be right. Even otherwise the petitioner filed O.S. No. 193 of 1949 on the file of the District Munsif s Court, Kumbakonam, for the recovery of Rs. 292 from the company and he obtained a decree for the amount claimed with costs making the same a first charge on the very same movable items which the petitioner is alleged to have wrongfully retained. In view of that, there can be no dou....... + More