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1963 (7) TMI 106
... ... ... ... ..... ficer under those circumstances to issue notice under sub-section (1A). I am unable to accept any of the contentions made on behalf of the petitioners in connection with the notice issued under sub-section (1A). As I am in favour of the respondents on the merits of the case, I deem it unnecessary to deal with the diverse contentions made on behalf of the respondents. There are some other contentions made in the petition, but the same have not been argued. The first prayer in the petition relates to the sum of Rs. 8,89,000........ + More
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1963 (7) TMI 105
... ... ... ... ..... ssification two conditions must be fulfilled, namely (i) that the classification must be founded on an intelligible differentia which distinguishes persons or things that are grouped together from others left out of the group and, (ii) that that differentia must have a rational relation to the object sought to be achieved by the statute in question. The classification may be founded on different bases, namely geographical, or according to objects or occupations or the like. What is necessary is that there must be a nexus b....... + More
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1963 (7) TMI 104
... ... ... ... ..... d (vi-a) of the Income Tax Act so that 'machinery' if it is new, though it does not constitute 'plant', is entitled to initial and extra depreciations. The term 'machinery' has net been defined in the Income Tax Act and in the absence of a statutory definition the word has to be given the ordinary meaning. Further, the term 'machinery' should be given the same meaning throughout Section 10(2) (vi) and (vi-a). The term 'machinery' is not restricted In the application only to a self-co....... + More
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1963 (7) TMI 103
... ... ... ... ..... is unequal; similarly, different kinds of property may be subjected to different rates of taxation, but so long as there is a rational basis for the classification, made. Article 14 will not be in the way of sucb classification resulting in equal burdens on different classes of properties. 14. Courts have repeatedly laid down that no provision in a Statute should be struck down unless it is clear that the provision in question is bad in law. If two views are possible about the validity of a provision, then reliance should ....... + More
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1963 (7) TMI 102
... ... ... ... ..... d is in excess of the limit provided under section 28(1) of the Act. All that is said on behalf of the assessee is that if the Income-tax Officer had come to the conclusion that the concealed income was only ₹ 21,900 very probably he would have not imposed a penalty of ₹ 5,000. This may or may not be. Whether the penalty imposed is expressive or not was a matter for decision by the Tribunals below. Quite clearly when the Tribunal affirmed the imposition of a penalty of ₹ 5,000 it was aware of the fact tha....... + More
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1963 (7) TMI 101
... ... ... ... ..... that their plain meaning is that the party making the alleged acknowledgment should himself have been under a liability at the time of the alleged acknowledgment, and if that is not the case, the person actually finable must have made the acknowledgment and that person must be the predecessor in title of the person against whom the alleged acknowledgment is finally sought to be fastened in the later suit. Thus the different parts of the section only emphasise the same idea in its different facets. According to this criteri....... + More
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1963 (7) TMI 100
... ... ... ... ..... octroi because it had already been imposed nor the cancellation of an exemption because the Municipal Committee had not granted an exemption to the appellant-company. The resolution only indicated that on and from a particular date, the Municipal Committee would recover octroi which it had already imposed a long time ago upon all and sundry and to which the appellant company was also subject and which was no longer affected by the will of the quondam sovereign. The agreement of the Ruler bound the Municipal Committee only ....... + More
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1963 (7) TMI 99
... ... ... ... ..... urt held that the amount of the dividends was properly included in the appellant's assessments to surtax. From the foregoing, it is seen that for income-tax purposes what is relevant is the real income and not the nominal income. In other words, the person liable to pay tax on any item of income is the real owner and not the nominal owner. The above principle is in no manner impaired by the provisions contained in section 18(5) read with section 16(2) of the Act , though those provisions have introduced some inconsiste....... + More
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1963 (7) TMI 98
... ... ... ... ..... e by the obligation income is diverted before it reaches the assessee, it is deductible ; but where the income is required to be applied to discharge an obligation after such income reaches the assessee, the same consequence, in law, does not follow. It is the first kind of payment which can truly be excused and not the second. The second payment is merely an obligation to pay another a portion of one's own income, which has been received and is since applied. With respect, we have been unable to see how this principle....... + More
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1963 (7) TMI 97
... ... ... ... ..... ly one of fact. The question that the High Court has to decide in such a case is whether the finding of the Tribunal that the two businesses were separate was one supported by the evidence placed before it. If there was evidence, the sufficiency of that evidence or other evidence contra, will not justify a refusal to accept the finding of fact arrived at by the Tribunal. The Appellate Tribunal in the reference before us has stated that, on the facts as they are on record, it is difficult to come to the conclusion that the ....... + More
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1963 (7) TMI 96
... ... ... ... ..... and then try to take benefit of the exemption for the entire accumulation. The contingency of a higher accumulation than one year's rent as arrears is due to the negligence on the part of the owner of the property. There is nothing in law which prevents an owner to take effective steps within a year and then have recourse to the exemption on the basis that the rent had become irrecoverable. In that way no hardship could ever accrue to any assessee and, therefore, the argument on the basis of the hardship in the present....... + More
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1963 (7) TMI 95
... ... ... ... ..... ommissioner of Income-tax 1959 35 I.T.R. 1 ; 1959 Supp. 1 S.C.R. 10., it has been held that the word information in section 34(1)(b) included information as to the true and correct state of the law, and so would cover information as to relevant judicial decisions. Of course, it is not necessary in the present case to go as far as that. But we have cited this decision to show that even an unconnected judicial decision giving information as to the state of the law would itself amount to information within the meaning of sect....... + More
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1963 (7) TMI 94
... ... ... ... ..... d not in furtherance of public policy. But, we find that it does not affect the present case in view of the substantial similarity of the relevant provisions of the M.C.D.C. Order with the relevant provisions of the C.P. and Berar Food-Grains Control Order. The principle of the decision of the Supreme Court directly applies to the present case and the position mains unaffected by the decision of the Calcutta High Court in (S) AIR1957Cal336 . It is clear that the partnership was illegal and that the suit was not maintainabl....... + More
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1963 (7) TMI 93
... ... ... ... ..... see how any direction given by the Court can help the petitioner Company in the matter of launching the contemplated misfeasance proceedings. On the contrary, in my opinion, any such direction is bound to cause anxiety to respondents Nos. 2 to 4 and can be made by them a legitimate ground for complaint. 14. However, in order not to create any complications for the petitioner Company in the matter of taking out of misfeasance proceedings against respondents Nos. 2 to 4 or any other persons, I order that the present petition....... + More
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1963 (7) TMI 92
... ... ... ... ..... emit this matter back to the special commissioners. Reliance was placed on Evans Medical Supplies Ltd. v. Moriarty 1958 1 W.L.R. 66; 1957 3 All E.R. 718; 37 T.C. 540, H.L. I do not think that that case ought to be regarded as a general prohibition against a judge ordering that a matter should go back to the commissioners. Power is given by a section in the statute enabling remission in appropriate circumstances. That particular case is explained by the fact that throughout the whole proceedings in relation to a sum of 100,....... + More
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1963 (7) TMI 91
... ... ... ... ..... e to make any return at all as required by section 22(2), or to produce the account books, etc., called for as required by section 22(4) would have to be dealt with under sub-section (4) of section 23 and, therefore, other provisions of sub-section (4) of section 23 will apply to the proceeding under section 34 of the Act . Similarly we are of the opinion that the decision of the Assam High Court in Tansukhrai Bodulal v. Income-tax Officer, Nowgong 1962 46 I.T.R. 325, does not bear on the point under consideration. In the ....... + More
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1963 (7) TMI 90
... ... ... ... ..... quate consideration to the person or association by such individual for the benefit of his wife vide sub- section (3)(b) . That was a case where even though their Lordships reached the conclusion that the third proviso to section 16(1)(c) would be applicable yet the assessee, the husband, could not get out of the application of section 16, sub-section (3)(a)(iii). It is plain that their Lordships were not inclined to read the proviso as in any way delimiting the operation of section 16(3)(a)(iii). On principle the same rul....... + More
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1963 (7) TMI 89
... ... ... ... ..... on is similar with regard to the other connected objection that in the notice under section 34, the Income- tax Officer had only mentioned that there had been an escapement of assessment but not that there had been an under assessment as was in fact the case. The petitioner knew full well that the notices under section 34 were issued as a result of the assessment which was made for the assessment year 1959-60. The notice, therefore, cannot be said to be misleading and even if it was misleading no prejudice having been show....... + More
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1963 (7) TMI 88
... ... ... ... ..... d February 8, 1963, has to be quashed by certiorari. Regarding the other three years 1953-54 to 1955-56, I think it is necessary to issue a writ of prohibition as asked for by the petitioner to restrain the Income-tax Officer from proceeding further. None of these cases really fall within the scope of section 35(5); final assessment orders have been sought to be amended in respect of an alien matter in the guise of taking action under section 35(5) which, as I stated before, is not permissible in law. The Income-tax Office....... + More
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1963 (7) TMI 87
... ... ... ... ..... rofits ascertained by the Tribunal is only ₹ 61,483. However, we would proceed on the footing that the commercial profits ascertained by the Tribunal amount to ₹ 61,483 plus ₹ 24,375, which together would come approximately to about ₹ 86,000. The tax liability on this amount would be about ₹ 35,000. It is not disputed by the revenue that the tax liability on ₹ 86,000 would come to about ₹ 35,000. The previous losses admittedly are over ₹ 30,000. If ₹ 65,000 are deducted....... + More