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Showing 61 to 80 of 150 Records
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1975 (12) TMI 92 - ITAT JAIPUR
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... ... ..... e to show that a particular sale was not disclosed by the assessee or certain purchases were not included in the books. As a matter of fact, the addition was made on the basis of estimated only. 11. Looking to the aforesaid facts, circumstance and the material on record, we are of the definite view that in the present case the assessee was able to show by reasonable and plausible evidence and explanation that there are preponderance of probabilities which go to show that there was no fraud or gross or wilful neglect on the part of the assessee in not returning the assessed income. There is also no material from which it could be established that the disputed amount was really the income of the assessee in the year of account and the assessee concealed the same or furnished inaccurate particulars of such income. Thus, in our opinion in the present case, no penalty under s. 271(1)(c) is leviable. 12. In the result, the appeal is allowed. The impugned penalty order is cancelled.
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1975 (12) TMI 91 - ITAT JABALPUR
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... ... ..... the merits of the dispute, influenced by extraneous considerations of policy or expediency, the Court insists upon disclosure of reasons in support of the order on two grounds, one, that the party arrgieved, in a proceeding before the High Court or this Court, has the opportunity to demonstrate the reasons which persuaded the authority to reject his case were erroneous, the other, that the obligation to record reasons operates as a deterrent against possible arbitrary action by the executive authority invested with the judicial power. 13. We are of the view that these decisions directly apply to the facts of the present case and that, therefore, we cancel the penalties levied by the ITO for both the years on this ground alone. In this view we consider it unnecessary to examine the other contentions urged on behalf of the assessee and the Department. In the result, the appeals are allowed and the ITO is directed to refund the penalties, if already collected from the appellant.
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1975 (12) TMI 90 - ITAT INDORE
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... ... ..... llowed. The Tribunal upheld this disallowance in both cases on the footing that the expenditure on salaries could not be proved to have been incurred for business reasons. The two affidavits of the two persons were filed but the Tribunal after considering their statements recorded by the ITO came to the conclusion that these persons could not be held to be employees of the firm. In view of their close relationship with the partners even if they were rendering some services by sitting on the shop and doing some work, it could not be held that they were employees. This is also ultimately a case of disallowance of expenditure claimed which was not proved to the satisfaction of the authorities to have been incurred for business reasons. The penalty, in our opinion, will not be leviable in respect of this item also. 7. In the result we feel that penalty has not been correctly imposed and accordingly we quash the same and allow the assessee rsquo s appeal. 8. The appeal is allowed.
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1975 (12) TMI 89 - ITAT DELHI-D
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... ... ..... ling on the relevant dates in the market and, therefore, he can have no cause of compliant. Now, on the basis of the certificates furnished by the Secretary, Paper Merchants Association, the value of stock in 1961-62 was Rs. 44,529 and for 1962-63 it was Rs. 41,761. Since the value taken by the Tribunal for the immediately preceding asst. yr. 1960-61 was Rs. 46,595. We agree with the AAC that no addition was called for in the asst. yrs. 1961-62 and 1962-63 for unexplained investment in the stock. In fact, the Department Representative could not urge any argument of dispute the finding of the AAC if the certificates of the Paper Merchants Association were accepted. On the basis of the material of the record, especially the statement of the Secretary of the Paper Merchants Association, the certificates issued by the Association have to be accepted as correct. Hence no interference is called for with the order of the AAC. 9. In the result, the Departmental appeals are dismissed.
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1975 (12) TMI 88 - ITAT DELHI-B
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... ... ..... fact that the other instances pointed out by assessee were not shown to be incomparable, we have come to the above conclusion that the AAC clearly erred in adopting the market value of this plot at Rs. 150 per sq.yd. We are not called upon to recompute the capital gains or loss. For the present purpose, it will be sufficient for us if we hold that there is no justification for the adoption of the value of the land at Rs. 150 per sq. yd. If the land value is taken at Rs. 105 per sq.yd. there will be a capital loss but as observed earlier, it is not the case of either party that we should compute capital loss. We, therefore, hold that on the facts and circumstances of the case, there is no capital gains because the sale value of the land was erroneously adopted by the AAC at a far higher figure of Rs. 150 per sq.yd. which was not at all the market price ruling at the relevant time. 4. This means, the assessee s appeal succeeds and the Departmental appeal fails and is dismissed.
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1975 (12) TMI 87 - ITAT CUTTACK
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... ... ..... h the firm was reconstituted. Here again, the sole ground on which the claim was rejected was that no valid firm could comes out of the partition of a non-existent-HUF as held by him. On appeal, the AAC confirmed the findings of the ITO. Here again, we find that the stand taken by authorities below is no longer tenable because of our finding that the business under consideration really belonged to the HUF of which Sardar Santokh Singh was the karta and that it was validly partition during the period relevant to the asst. yr. 1965-66. Consequently, the firm created by the deed dt. 8th July, 1964 as well as the firm which came into existence by the deed of reconstitution under s. 185 of the Act. We, therefore, direct that registration be granted for these two years. 7. In the result, the first six appeals are party allowed (because certain points were not fully allowed by the Tribunal in their original order which has now become final) and the latter three appeals are allowed.
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1975 (12) TMI 86 - ITAT COCHIN
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... ... ..... und to be only for providing tea and refreshment it should be allowed as a deduction. 2. The Departmental Representative submitted that the distinction between staff welfare expenses and entertainment expenses is not called for. He further submitted that even if these were considered to be for tea only it will come under entertainment expenses. 3. A provision for tea, lunch, etc to the staff will not come under entertainment expenses. It is only amenities provided for the staff, in order to give them inducement to put in their best effort. We agree with the AAC in his classification. We also agree with him that if these expenses were only for tea, cigarettes, etc it cannot be treated as entertainment expenses. However, no finding has been given as to the real nature of the expenses. It is, therefore, necessary, as the AAC has found, to set aside the assessments and require the ITO to go into the details of the expenses. Since we agreed with the AAC the appeals are dismissed.
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1975 (12) TMI 85 - ITAT BANGALORE
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... ... ..... own return of income on 19th March, 1974, i.e., a day after the ex-parte assessment. The Karnataka High Court in 97 ITR 168 (Karn) has held that where a partner is unable to obtain particular of his share income from the firm because the firm has not finalised its accounts and has not filed it return of income, this amounts to sufficient cause for not filing the return. The mere fact that in that case the partner had no other income except the share income from the firm is no reason to hold that the ratio of that ruling would not apply where a partner has share income from three firms and also some individual income as in this case. The ruling applies with full force here. We therefore, hold that there was sufficient cause for the assessee s failure to file the return. We accordingly allow the appeals set aside the assessment under s. 144 and allow the application under s. 146. We direct that the assessment shall be made afresh. Both the appeals shall be treated as allowed.
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1975 (12) TMI 84 - ITAT AHMEDABAD-C
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... ... ..... of the Act. 4. Coming to the Explanation of s. 271(1)(c) of the Act which has been resorted to by the IAC in the present case, it is correct that the income returned by the assessee is less than 80 per cent of his assessed income for the year under consideration. The onus is, therefore on the assessee to prove the absence of fraud or wilful or gross neglect. This question of presence or absence or fraud or wilful or gross neglect is to be decided on probabilities. The facts being as stated above, there is greater probability of the absence of fraud or wilful or gross neglect in the present case. As already stated above the inaccuracies being occasioned on account of absence of books of accounts, they having been damaged. As such, on the facts and circumstances of the case we would held that the Explanation to s. 271(1)(c) of the Act is not attracted. 5. In the result the appeal by the assessee is allowed. The penalty amount, if paid by the assessee, shall be refunded to him.
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1975 (12) TMI 83 - SUPREME COURT
Whether the Khadi and Village Industries Commission was not competent to make any recommendation as contemplated in sub-clause (d).
Held that:- Section 15 of the Khadi and Village Industries Commission Act, 1956 which speaks of the functions of the Commission states in Clauses (c), (d), (f), (g) and (h) that the Commission may take steps to provide for the sale and marketing of Khadi or of products of village industries, to encourage and promote research in the development of village industries, to undertake, assist or encourage the development of village industries, to promote and encourage cooperative efforts among manufacturers of Khadi and persons engaged in village industries. Section 15(h) specifically states that the Commission may take steps for ensuring the genuineness of, and for granting certificates to producers of, or dealers in, Khadi or the products of any village industry. These provisions indicate that the Khadi and Village Industries Commission is competent to grant certificates recommending village industries for exemption under Clause (d) of the Notification dated 4 September, 1967. The appeals are accepted. The orders of the High Court are set aside and the petitions are dismissed
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1975 (12) TMI 81 - SUPREME COURT
Refund is not admissible if application for refund of excess duty paid not filed within prescribed time-limit
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1975 (12) TMI 80 - HIGH COURT OF BOMBAY
Valuation - Post-manufacturing and non-manufacturing expenses - Equalised freight - Marketing and distribution expenses - Interest - Advertisement expenses Excise duty - Effect of deeming provision
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1975 (12) TMI 79 - SUPREME COURT
Whether the article viz. melted ingot mould and bottom stools altered the character of duty-paid pig iron?
Held that:- The High Court rightly held that the contention of the Revenue fails on two broad grounds. First, there cannot be double taxation on the same article. Counsel for the Revenue gave the example of excise duty on motor car, in spite of the fact that there was duty on tyres and duty on metal sheets. The analogy is misplaced. In such cases the duty is on the end product of motor cars as a whole. The duty on tyres and the duty on metal sheets do not enter the area of duty on motor car. Second, Notification No. 30/60 grants exemption to duty-paid pig iron. The High Court rightly said that the Notification does not say that exemption is granted only when duty paid pig iron is used and that the exemption would not be available if duty-paid pig iron is mixed with other non-duty paid materials. If the intention of the Government were to exclude the exemption to duty paid pig iron when mixed with other materials then the notification would have used the expression "only" or "exclusively" or "entirely" in regard to duty-paid pig iron. The object of the notification was to grant relief by exempting duty-paid pig iron. Appeal dismissed.
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1975 (12) TMI 78 - CALCUTTA HIGH COURT
Penalty Notice, Penalty Proceedings ... ... ... ... ..... ecting Assistant Commissioner of Income-tax as the minimum penalty imposable was likely to exceed Rs. 1,000. But the said inappropriate use of language does not, in my opinion, in the facts and circumstances of the case, invalidate the issue of the notice. The notice was issued subsequent to the making of the assessment by the transferee-Income-tax Officer, and such subsequent issue of the notice does not, in my opinion, indicate that the satisfaction was not during the course of the assessment proceeding. Reliance in this connection may also be made on the observations of the Supreme Court at page 561 of the report in the case of D. M. Manasvi v. Commissioner of Income-tax. In the aforesaid view of the matter, the challenge to the notice cannot be sustained. The application accordingly fails and is dismissed. The rule nisi is discharged. There will be no order for costs. Interim order, if any, is vacated. Let there be stay of operation of this order for six weeks from date.
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1975 (12) TMI 77 - ORISSA HIGH COURT
Payments In Cash ... ... ... ... ..... the words act of expending or laying out that which is expended the process of using up money spent. if this be the meaning of the word according to common parlance, and in the absence of a statutory definition, the word would take its colour according to its common parlance use, payment for purchase of goods would certainly be an expenditure. Deduction need not also be confined to section 37. In sub-section (3) that word has been used in its widest amplitude and the provisions of rule 6DD throw considerable light as to what exactly is meant to be the scope of sub-section (3 ). We would accordingly answer the question referred to us by saying The expenditure referred to in section 40A(3) of the Income-tax Act is not confined to expenditure that could be claimed as a deduction under section 37 and refers to any payment made by the assessee and taken into account in computing the total income under the provisions of the Act. We make no order as to costs. N. K. DAS J.-I agree.
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1975 (12) TMI 76 - PUNJAB AND HARYANA HIGH COURT
Assessment Notice, Estate Duty Act, Hindu Succession Act, Reassessment Notice, The High Court
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1975 (12) TMI 75 - MADRAS HIGH COURT
Burden Of Proof, Income Tax, Mens Rea, Reasonable Cause, Reference To High Court ... ... ... ... ..... nable cause, but such rejection cannot be done in an arbitrary or unreasonable manner. Rejection of any such plea is open to review in the proceedings authorised by the statute. In the present case, apart from merely disbelieving the explanation given by the assessee, the ITO had not applied his mind to the requirements of the statute. We consider that there are no materials to come to the conclusion that the assessee had no reasonable cause on the facts herein. 25. In the above view it is unnecessary for us to go into the question as to whether the ITO could be taken to have extended the time for submission of the return when he levied interest in accordance with cl. (iii) of the proviso to s. 139(1) of the Act. We consider that the penalty here is not properly levied under the provisions of s. 271(1)(a) of the Act. The question as reframed by us is answered in the negative and in favour of the assessee. The assessee will be entitled to his costs. Counsel's fee Rs. 250.
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1975 (12) TMI 74 - MADRAS HIGH COURT
Agricultural Land, High Court, Question Of Fact, Wealth Tax ... ... ... ... ..... and. Though the number of trees may not be appreciable having regard to the extent of the property, still it shows that the cowle-holder had attempted to comply with the terms of the grant about a century ago. The question as to whether any land is agricultural land cannot be taken to be such a question of fact as to be outside the scope of scrutiny on a reference. On the facts herein we are satisfied that there were materials to show that the lands were agricultural lands. We do not have before us a copy of the note as submitted by the Income-tax Officer before the Appellate Assistant Commissioner. It is not clear whether a copy of the note was actually passed on to the assessee. In these circumstances we are unable to deal with this note any further. We are satisfied that on the facts the Tribunal came to the correct conclusion. The question referred to us is answered in the affirmative and in favour of the assessee. The assessee will have his costs. Counsel s fee Rs. 250.
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1975 (12) TMI 73 - GUJARAT HIGH COURT
High Court, Income Tax Act, Sales Tax, Year In Which Assessable ... ... ... ... ..... refund of the sales tax amounts paid in the past but by merely getting a right to claim the refund, he had not obtained the amount of the refund. The amount of the refund was obtained only after the Sales Tax Officer passed the order of refund on August 19, 1965, and it is only on that date that it could be said that the assessee before us obtained the amount of refund in respect of the expenditure of sales tax incurred by him in the previous year. Therefore, it must be held that the amount was assessable in the previous year relevant to the assessment year 1966-67, and not in the previous year relevant to the assessment year 1964-65. We, therefore, answer the questions referred to us as follows Question No (1). In the negative, that is, in favour of the revenue and against the assessee. In the light of the above discussion, we decline to answer question No. (2) as it is not necessary to answer the same. The assessee will pay the costs of this reference to the Commissioner.
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1975 (12) TMI 72 - KERALA HIGH COURT
Provision For Payment, Wealth Tax ... ... ... ... ..... e as pension and funded after the employees had retired have to be taken into account as a debt for the purpose of section 2(m) of the Act. If we may say so with respect the court was right in holding that the liability was a debt within the section. The liability for payment of pension had arisen on the retirement of a person. The fact that it was payable in future does not touch the question as to the present nature of the liability. The decision is not useful for our purpose in the present case. We consider that this matter is concluded by the pronouncement of the Supreme Court in Standard Mills Co. Ltd. v. Commissioner of Wealth-tax. We accordingly, answer the question referred to us in the negative, that is, in favour of the revenue and against the assessee. We direct the parties to bear their respective costs. A copy of this judgment under the seal of the High Court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench.
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