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Showing 61 to 80 of 132 Records
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1977 (3) TMI 95
Powers of court to grant relief in certain cases ... ... ... ... ..... udicial moderation is necessary in the administration of section 633 of the Act so as to ensure that such categories of directors are not subjected to the harassment of legal proceedings for breaches and defaults of a company, which may at times be rather protracted. It would be proper in such cases to relieve such directors of consequences of the defaults and the breaches unless they are directly involved in the acts or omission complained of or have otherwise not acted honestly or reasonably or have financial involvement in the company. Having regard, therefore, to the fact that the petitioner has been a director of the company, as indeed of a number of other companies, by virtue of being a solicitor and did not participate in the management of the company and had no financial involvement in it, I would relieve the petitioner of the liability arising out of breaches and defaults on the basis of which the petitioner apprehends proceedings. There will be no order as to costs.
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1977 (3) TMI 82
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... ... ..... efore, held that the firm automatically came to an end. It was in these circumstances that their Lordships held that s. 188 was applicable. Their Lordships have considered the decision of the Supreme Court in the case of Shiv Ram Poddar vs. ITO(2). 7. The above discussion would show that in the present case there was a dissolution by contract as well as under law and the firm which succeeded could not be taken as merely a change in the constitution of the firm. The earlier firm came to an end on the death of one of the partners and for that firm the application for continuation of registration was properly made. In these circumstances the continuation of registration had to be allowed for that firm. There was no question of allowing registration for a part of the year only as the earlier firm came to an end on 17th Dec., 1973. We, therefore, direct that the continuation of registration should be allowed to the firm upto the above date. 8. In the result, the appeal is allowed.
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1977 (3) TMI 79
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... ... ..... rked that, in case of purchases from Shandies from Adivasis, purchase vouchers can be maintained as they make their transactions in KHOLA . But that may be a fact. But non-maintenance of individual purchase account, does not make in the particular case accounts rejectable, when the appellant was meticulously maintained commodity wise stock register and also sales register supported with sale memos. Hence in view of these, peculiar facts of this case and in absence of any discrepancy between the purchase and sale figures, the appellant rsquo s accounts cannot be rejected. 6. In the result, the appeal is allowed and the returned figures are accepted. The enhancement of Rs. 10,000 is knocked down. The assessing officer to recalculate tax payable on returned figures after giving due regard to the deductions on account of sales to registered dealers, sales tax realised and tax-free sales. After recalculation if he finds that the appellant has paid excess tax, the same be refunded.
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1977 (3) TMI 76
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... ... ..... te sale under s. 3 of the Central Sales Tax Act and that the goods moved across the border as a result of contract of sales, written or implied. We are of the view that at no point of time, the goods moved from the State of Tamil Nadu for the purpose of satisfying a definite contract and for the purpose of which goods so despatched had been delivered to a particular known buyer under a definite contract. These are therefore undoubtedly intra-State sales in the State of Karnataka, Kerala, Pubjab Bombay and Delhi and certainly an out of state sale so far as the State of Tamil Nadu is concerned. All conceivable essential elements of inter-State sale are missing in the instant cases. There is no link between the movement and depot sales. There is no ascertainment of goods at this end. In the circumstances, we hold that the assessments under Central Sales Tax Act on the disputed turnovers in all the five appeals are not sustainable. In the result, all the five appeals are allowed.
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1977 (3) TMI 74
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... ... ..... that the said agreement constitutes a valid family arrangement and there is no transfer of property involved within the meaning of s. 2(xxiv) of the GT Act and there is no liability to gift-tax either under s. 4(1)(a) or under s. 4(2) of the GT Act. 12. In case if it is held that there was a liability to gift-tax, the question arises regarding the valuation of the property gifted by the assessee. The GTO has valued the gifted properties at Rs. 88,200. The AAC by the rent capitalisation method arrived at the market value of the property at Rs. 57,500 and taking into account the rate adopted in the assessee rsquo s wealth-tax assessment at Rs. 1,500 per cent and also taking into account that the land was occupied by several protected tenants, he evaluated the value of the property at Rs. 63,750. We find ourselves in perfect agreement with the value adopted by the AAC and accordingly confirm the valuation adopted by him. 13. In the result, the appeal fails and stands dismissed.
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1977 (3) TMI 73
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... ... ..... and construct roads and provide for lighting and water arrangements, over-head tanks, etc. and also conferring the right to shri Yacob to enter into the land, assume possession thereof for carrying out the various objects mentioned in the agreement, the assessee rsquo s right to absolute possession and enjoyment of the property is lost considerably. By parting with the right to receive compensation in case the land was acquired by the Government, there is considerable erosion of right of the assessee in the property held by her. These erosions and restrictions in the rights of the assessee over the property held by her have undoubtedly resulted in extinguishment of some rights of the assessee in the property, it constitutes a transfer within the meaning of s. 2(47) of the IT Act, 1961 and as the sale of agricultural land preceded the purchase of agricultural lands, s. 54-B(ii) is attracted and there is no liability to capital gains. 10. In the result, the appeal is dismissed.
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1977 (3) TMI 71
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... ... ..... on the business of the firm on behalf of the other partners nor are they bound or be liable for the acts of the firm which would be the case if they are really the partners of the firm. On a careful perusal of all the above documents, we are quite satisfied that only the five signatories to the deed of partnership dt. 21st Feb., 1969 are the partners of the assessee firm. We, therefore, hold on facts that the assessee firm comprising of the 5 partners as stated above and as constituted under the deed dt. 21st Feb., 1969, is a genuine firm and there is absolutely no error in the order of the ITO granting continuation of registration to the said firm. In this view of the matter, it is not necessary for us to consider the other points that are debated before us. 7. In the result, the orders of the CIT are cancelled and the orders of the ITO granting continuation of the registration of the assessee firm for the asst. yrs. 1971-72 and 1972-73 are restored. The appeals are allowed.
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1977 (3) TMI 68
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... ... ..... ld that only the rate of penalty as per the unamended provision of s. 17(1)(a) was applicable to the default committed by the assessee. The ratio of the above ruling would squarely apply to the penalties in the instant case as the provisions of s. 18(1)(a) of the WT Act are analogous to s. 17(1)(a) of the GT Act referred to in the above decision of the Madras High court. The default in this case for the years under appal was committed prior to the coming into force to the amended provisions of s. 18(1)(a), which came into force only from 1st April, 1969. The AAC has only followed the above ruling of the Madras High Court, which is clearly relevant to the issue. The mere fact that a special leave petition is filed against the said decision would not alter the position so long as the above decision is holding the field and not reversed by the Supreme Court. We have, therefore, no hesitation in upholding the order of the AAC. In the result the Departmental appeals are dismissed.
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1977 (3) TMI 65
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... ... ..... ed under s. 22). If, even as a dependent the claim for maintenance and marriage expensers would not be a charge on the estate, it will not be so during the life of the deceased. No decision has been brought to our notice by the accountable person rsquo s learned counsel stating that during the life time of a Hindu his estate is subjected to charge for the marriage expenses of his unmarried daughter . The Tribunal ultimately held that there being no charge, there is no question of diminishing the value of the property to the extent of which provision is made for the marriage expenses of the unmarried daughter. Following the above line of reasoning, we hold that the Appellate Controller was not justified in directing the Assistant Controller to allow a deduction of Rs. 50,000 from the dutiable estate of the deceased. 13. In the result, the appeal filed by the Revenue is allowed and the order of the Appellate Controller is set aside and that of the Assistant Controller restored.
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1977 (3) TMI 63
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... ... ..... s of the case we hold that penalty would not be leviable under s.271(1)(c) of the Act for concealment of income. 10. Regarding the applicability of the Explanation to s. 271 (1)(c) of the Act, the question that arises for consideration is whether the onus that has been cast on the assessee has been discharged or not. As explained earlier, the ITO was in possession of full details of most of the parties with whom the assessee was having money-lending transactions. Being so, it cannot be held that the assessee wilfully withheld and information from the Department. In this view of the matter, we hold that there has not been any fraud or neglect on the part of the assessee as contemplated under the explanation to s. 271(1)(c) of the Act. In view of the what is discussed above, we hold that no penalty would be leviable even under the Explanation to s. 271(1)(c) of the Act. 11. In the result, the order levying penalty passed by the IAC is hereby cancelled and the appeal is allowed.
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1977 (3) TMI 62
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... ... ..... tled to those amounts. There is a liability attached to the assessee to refund those amounts of the State Government in view of the amendment made to the sales-tax laws. It is true that at the time of the assessee getting the refunds the law was different. But the law was amended retrospectively to see that such refunds are taken back. Admittedly the assessee follows the mercantile system of accounting. When it comes to the question of assessability of the amounts received by the assessee the law as amended retrospectively will have to be looked into to find out whether there is a liability in praesenti so far as the assessee is concerned. In out view such liability is clearly fastened on the assessee and the amount that the assessee received cannot be treated as a trading receipt to be liable to be taxed as income. We, therefore, hold that the refunds which the assessee received are not includible in his hands. The amounts are accordingly deleted. 4. The appeals are allowed.
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1977 (3) TMI 61
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... ... ..... Income-tax Patiala(2) and that the Bombay High Court in the case of CIT, Bombay vs. ITR. Dwarakadas and Co(3.) support the above position. In fact in the above decision of Bombay High Court (80 ITR 283) it was held that it was not necessary for every partner to sign the instrument of partnership and even if the instrument of partnership was signed by some of them, if it had been assented to by the others, who have not signed it and they have joined in putting it forward along with other partners for registration, it would be entitled to registration. In the application for registration submitted before the Income-tax Officer admittedly all the partners have signed. It is thus clear that all the partners have consented to be partners of the assessee firm. We are not discussing the other rulings cited on behalf of The revenue in the view we have taken above. There being no other infirmity the assessee is clearly entitled to registration. 9. In the result, the appeal is allowed.
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1977 (3) TMI 60
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... ... ..... from asserting his right to recover the transferred property. He may, however, make a gift of his interest with the consent of the other coparcerners. From the above it is clear that no coparcener can dispose of his undivided interest in coparcenary property by gift except with the consent of the other coparceners. In this case the other coparcener is a minor and is incapable of giving his consent. It, therefore, follows that the gift in the instant case is clearly void. The other rulings cited by the learned Departmental Representative are not applicable to the facts of this case where we are concerned with only one coparcener who happens to be a minor. Further, in the presence of the rulings of the Andhra Pradesh High Court on the point we do not think it is necessary for us to refer to the rulings of the other High Courts referred by the learned Departmental Representative. 8. In the result, we uphold the order of the AAC. The appeal of the revenue fails and is dismissed.
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1977 (3) TMI 59
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... ... ..... joint family status is put an and to, and with regard to any portion of the property which remained undivided the presumption would be that the members of the family would hold it as tenants-in-common until a special agreement to hold as joint tenants is proved. In Hindu Undivided Family, Coparceners and Income-tax Law. 2nd Edition., 1975 By B. Malik and S.B. Manchanda at page 591 reference is made to the case of P. Cheradappa Pai (3) and it is stated as under When the properties are held as tenants-in-common, the petitioner cannot be assessed in the status of a Hindu undivided family. Following the above settled position in law we accept the contention of the learned counsel for the accountable person. We direct that only 1/5th share of the deceased in the immovable properties should taken for assessment and that further the lineal descendants rsquo share should not be aggregated as per s. 34(1)(C) read with s. 7 of the Estate Duty Act. In the result, the appeal is allowed.
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1977 (3) TMI 58
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... ... ..... pect of the settled property estate duty must have been paid on the death of the deceased rsquo s spouse and (iii) The deceased must not have any power of disposition over the property at the time of death. If the above three conditions are satisfied, the property will not be liable to estate duty on the death of the deceased. Here all the three conditions are satisfied. I. The properties were subject-matter of settlement through the will left by the deceased rsquo s husband ii. Estate Duty was paid on the properties on the death of her husband which means that the duty was paid after the settlement and iii. The deceased has no power of disposition over the properties. This is the view taken by another Bench lsquo A rsquo of the Tribunal here in order dated 13th January 1977 in E.D.A. NO. 47 (HYD)/1975-76 and E.D.A. No 50 (HYD)/1975-76 to which one of us was a party. 4. For the above reasons, we uphold the order of the Appellate Controller and dismiss the Departmental appeal.
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1977 (3) TMI 57
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... ... ..... It was also contended that the result disclosed being lower that what it was in the preceding year, the addition sustained by the Appellate Assistant Commissioner should be upheld. 5. After hearing rival submissions, we are inclined to hold that the books results in this case should be accepted. Though there has been a slight reduction in the rate of gross profit in this year, we find that there has been an increase in the turnover to about Rs. 14,00,000 as compared to about Rs. 10,00,000 in the immediately preceding year. In view of the quick turnover which the assessee had made during the year of account, we hold that there is a possibility of a slight reduction in the gross profit. Keeping this aspect in view, we hold that the gross profit rate of 6 per cent disclosed by the assessee should be accepted as reasonable. In the circumstances, the addition of Rs. 10,000 retained by the Appellate Assistant Commissioner is hereby deleted. 6. In the result, the appeal is allowed.
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1977 (3) TMI 56
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... ... ..... nt principals, due to absence of the Munim, sales made on behalf of principals in different accounts while furnished the accounts. Considering the volume of the gross and taxable turnover the assessee s explanation should not have been rejected. There was misclassification of the taxable turnover and the sales taxable at the rate of 10 per cent were shown as larger figure resulting in corresponding lesser liability in sales taxable at higher rates. This misclassification was found to be deliberate to evade tax. There is no evidence for such a finding. A deliberate intention to withhold the tax cannot be inferred merely on the ground of errors in the misclassification. Considering the turnover and the amount involved it would have been more appropriate to have accepted the assessee s explanation. The penalty imposed for the financial yr. 1967-68 is also hence set aside. 6. The appeals are allowed. 7. This order will govern the disposal of appeals No. 255-PBR/76 and 256-PBR/76.
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1977 (3) TMI 55
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... ... ..... rt observed (at page 516) that in such a situation the assessee is put to proof and it is open to him to show in the penalty proceedings that the admission made in assessment proceedings was wrongly made or was incorrect and that he could show in the penalty proceedings that the explanation for the cash credits given by him in the assessment proceedings was correct. This is, of course, not a case of cash credits but we see force in the submission for the assessee that in the instant case the assessee is entitled to show the circumstances under which he filed the revised return showing a higher valuation and that the original return filed did not show any deliberate under-valuation but was based on a bonafide belief of the assessee, and that this bonafide belief could be established from the facts on record. Hence, in our view, the ruling in Mahabir Metals Works rsquo case is not helpful here to the Revenue. 9. In the result, the penalty is cancelled and the appeal is allowed.
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1977 (3) TMI 54
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... ... ..... s are not spare parts of the motor vehicles. They are only components of motor vehicles. The question therefore will be whether components have been included in entry No. 1. In this connection, I shall refer to two other entries of the same schedule where components have been indicated. They are, entry Serial No. 3 and 15. Entry No. 3 mdash Refrigerator, Air Conditioning plants and components and parts thereof. Entry No. 15 mdash Gramophones and component parts thereof and records. From a reading of these entries, it will be clear, where the legislature intended to tax components besides spare parts, it has been specifically included therein. But in the case of Motor vehicles components have not been included. The only thing included is spare parts, tyres and tubes. As truck and bus bodies are component parts of motor vehicles and not spare parts, the decision made by the first appellate court is correct. 6. In the result therefore, the appeal filed by the State is dismissed.
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1977 (3) TMI 53
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... ... ..... llection charges, and agricultural expenses, I find his estimation most reasonable and adopt the same. This point is decided against the assessee. 8. It has been found while dealing the points No. one and two that 11.74 acres of wet lands and 53.74 acres of dry lands belonged to the wife of the assessee. 32.74 acres of lands belonged to the son of the assessee. These persons are thus owners of the above lands. The lands belonging to them cannot be clubbed with the lands belonging to the assessee for the purpose of assessment of tax. So it is necessary to find out the actual extent of lands in possession of the assessee for purpose of assessments of tax. This can be done if this case is remanded to the assessing officer for further enquiry. 9. In the result, the appeals are allowed in part. The cases are remanded to the assessing officer for further enquiry and reassessment, if necessary, in the light of the observations made above. Excess tax, if realised, should be refunded.
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