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1961 (11) TMI 87
... ... ... ... ..... ighbour or co-partner a peaceful and comfortable life and avoids litigation and ensures homogenous society, and, therefore, such a limitation imposed. by the law of pre-emption cannot but be regarded as reasonable in the interest of the general public. I am fortified in this view by the decision of the Full Bench of the Punjab High Court in the case of Sardha Ram, AIR 1960 Punj 196 (FB), above-mentioned, which, on a review of various authorities has laid down that the restrictions imposed by the law of pre-emption are reas....... + More
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1961 (11) TMI 86
... ... ... ... ..... so as to pass title thereof to the addressee. If, on the other hand, the facts and circumstances of the case disclose an implied request by the creditors to send cheques by post, the post office would be constituted as agent of the address for the purpose of receiving payments. 23. There can be little doubt in the present case that there was an implied request by the assessee to the Government of India to send the cheques by post. They were so sent and they were duly accepted during all the three years of account. It must,....... + More
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1961 (11) TMI 85
... ... ... ... ..... tion in respect in respect of interest on capital and owner service. IT this principal that by adopted both by the Assistant Controller and by the Central Board of revenue, the former at three years' purchase while the latter reducing it to nearly less than half thereof. It is no doubt true true if one of the two methods recognised in Diamonds Death Duties 13th Edn. 511 were to be adopted, allowance has got to be made for interest on capital. But under that method the number of years purchase will have to be increased........ + More
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1961 (11) TMI 84
... ... ... ... ..... the respondent in redressing the said grievance is outside the scope of the Act, and therefore beyond the powers conferred on it by s. 5. The proper remedy in such a case may be to make a comprehensive reference of the dispute to the competent industrial tribunal and invite the tribunal to make a proper award in that behalf. We are, therefore, inclined to take the view that cls. 3 to 7 which form an integral scheme are outside the purview of the powers conferred on the respondent by s. 5 of the Act and must therefore be de....... + More
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1961 (11) TMI 83
... ... ... ... ..... -section (2) does not come into play. 15. It seems to us that on the principle laid down in this decision, in so far as the assessee is concerned, there was no income which could come within the ambit of any tax law in any of the previous years in question. There could accordingly be nothing against which any adjustment or set off could be made in any of those years. As has been pointed out, unless the loss could be computed under section 24(1) of the Act, there could be question of any carrying forward under section 24(2)....... + More
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1961 (11) TMI 82
... ... ... ... ..... came entitled to the stock-in-trade as owners by virtue of the bequest, there was no cost value to them and that they could, therefore, adopt the market value of the goods as the basis of valuation of stock-in-trade. We cannot see how the principles of that decision can at all apply to the present case where the assessee himself was a partner in the firm and continued the business, after the retirement of the other partner, Shantilal Navalchand. There is no question in the present case of an owner putting his property into....... + More
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1961 (11) TMI 81
... ... ... ... ..... y improbable that the statute should not go on to make that liability effective. A statute is designed to be workable, and the interpretation thereof by a court should be to secure that object, unless crucial omission or clear direction makes that end unattainable . The result, therefore, is that a penalty can be properly imposed under sub-section (1) of section 46 on a legal representative where the tax due under an assessment made on his deceased predecessor or under an assessment made against him under section 246(2) is....... + More
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1961 (11) TMI 80
... ... ... ... ..... contract. The contract was a contract of lease and there was a transfer. But a right to eject a tenant arises from that, and it is not independent of the lease and therefore, I cannot accept Mr. Ghose's argument that a right to eject a tenant is not a right arising from a contract or that a lease ends with the transfer of property. It arises out of a contract, though ejectment is not a term of the contract for the enforcement of which the present suit has been instituted. Evidently the contract is for tenancy and if th....... + More
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1961 (11) TMI 79
... ... ... ... ..... or artificial income, as provided in the Schedule to the Act. Again in Commissioner of Income-tax v. Crown Life Insurance Co. 1956 30 ITR 365 it was held that where the assessee derived income from securities as profits or gains from the insurance business and not of any other business, and as the profits or gains from insurance business could only be computed in accordance with the Schedule to the Income-tax Act, and not in accordance with section 12 the income could not be assessed under section 12. It seems to us accord....... + More
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1961 (11) TMI 78
... ... ... ... ..... this being incidental to the admission of the benefits of the partnership, interest paid cannot be properly excluded from the income of the minors. Consequently, the interest paid also is includible in the income of the minors under section 16(3) of the Act. In Chouthmal Kejriwal v. Commissioner of Income-tax 1961 41 ITR 570. Sinha C.J. and Mehrotra J. decided that when a minor was admitted to the benefits of he partnership in a firm in which his father was a partner and the minor had supplied capital, any income accruing ....... + More
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1961 (11) TMI 77
... ... ... ... ..... h disposition as is mentioned in Section 10-A, or for that matter in Section 16, of the Punjab Security of Land Tenures Act. 25. To sum up my conclusions on the arguments presented before us are- (1) that when land is owned jointly by members of a joint Hindu family and the question of surplus area under the Punjab Security of Land Tenures Act (X of 1953) arises, the share of each individual owner in the land is to be considered; (2) that when a member of a joint Hindu family owning land jointly with others claims that he ....... + More
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1961 (11) TMI 76
... ... ... ... ..... sessment, for very many repairs have the result of enabling income to be earned in future years as well as in the year in which they are effected. For these reasons we hold that all the three questions referred to the High Court in this case must be answered in favour of the assessee and against the Income Tax department. In other words, the assessee is entitled to deduct the expenditure of ₹ 31,955 and ₹ 11,400 incurred as cost of replacement of the sleepers for the assessment years 1951-52 and 1952-53, respec....... + More
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1961 (11) TMI 75
... ... ... ... ..... the end of every three years and will be eligible for re-election. (xi) In the event it becomes necessary for the Company to increase the number of its Directors beyond the maximum fixed by its Articles, in pursuance of any direction of the Industrial Finance Corporation of India to appoint more than one director, then this order shall not prejudice the right of the Company to alter its Articles to provide such increase in accordance with the provisions of law. (xii) The Company is restrained from taking any steps for furt....... + More
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1961 (11) TMI 74
... ... ... ... ..... e dated September 7, 1959, was barred by limitation. It also appears to me that in a matter like this, apart from the provisions of section 35(5), there is an inherent power in the Income-tax Officer to correct at least such an error as occurred in this case, by reason of the fact that proceedings before an Income-tax Officer are judicial proceedings and partake of all the incidents of such proceedings vide Suraj Mall Mohta v. A.V. Visvanath Sastri 1954 26 I.T.R. 1, 13; 1955 1 S.C.R. 448. The possession of an inherent powe....... + More
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1961 (11) TMI 73
... ... ... ... ..... the Tribunal legally give any direction within the meaning of the second proviso to section 34(3). So far as the other three sums of monies are concerned the Tribunal made it clear that the petitioner had not concern with these three sums of monies and if these there sums of monies were liable to be taken into consideration they could be considered only in the assessment of a person other than the petitioner. It follows that reliance in respect of these three sums of monies also could not be based on the second proviso to ....... + More
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1961 (11) TMI 72
... ... ... ... ..... ............ According to the learned counsel for the Commissioner of Income- tax, the legislature has accepted the view of the courts contained in the decisions previously mentioned and has incorporated the same in section 73 as a substantive and independent provision. Whatever the position may be with regard to the provisions in the new enactment, it is not permissible to interpret the proviso to sub-section (1) of section 24 of the Act of 1922 with reference to what has been embodied in the new statute. It is only when ....... + More
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1961 (11) TMI 71
... ... ... ... ..... r year 1950. Had it been on foot of an agreement between the assessee and its workers, it would, as explained in Associated Printers (Madras) Private Limited v. Commissioner of Income-tax 1961 43 I.T.R. 281, have amounted to a legal liability. But when it was a case of voluntary payment, it seems to us that notwithstanding that the accounts are maintained on the mercantile basis, it was no more than a contingent liability which the assessee was not entitled to estimate and debit in advance of the date when it became conver....... + More
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1961 (11) TMI 70
... ... ... ... ..... ent in shares is in the course of the business of the minority shareholders, we see no reason why we should not hold that in questioning the propriety of the action of the company or the majority shareholders the minority shareholder is protecting the interest of his own business. Undoubtedly, any such action taken by the majority shareholders would detract considerably from the value of the shares held by the minority shareholder, that is to say, it would depreciate the capital assets of the minority shareholder in relati....... + More
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1961 (11) TMI 69
... ... ... ... ..... vent privilege or facility paid in kind. It was expressly made part of the remuneration earned by the numbers of the Indian Civil Service. The Conditions of service as to remuneration having been guaranteed, the right to this benefit remained guaranteed to those members of the Indian Civil Service who were entitled to it before the Constitutions. This guarantee which was continued in force even after the Commencement of the Constitution was for the first time by Rules made in June 1957 by retrospective amendment of the Sta....... + More
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1961 (11) TMI 68
... ... ... ... ..... that case, the assessee who borrowed various sums of money for the purpose of meeting the household expenses, such as purchasing jewellery, etc., claimed to deduct these sums from the interest earned by her from her fixed deposit and her claim was based on section 12(2) of the Indian Income-tax Act. Chagla C.J. and Desai J. agreed with the contention of the department that since the expenditure in question was unconnected with the income she had earned on her fixed deposit, she could not have recourse to section 12(2). It ....... + More