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Case Laws
Showing 41 to 60 of 188 Records
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1978 (7) TMI 164 - ITAT MADRAS-B
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... ... ..... bit of exemption under s. 5(1) (xiv) of the Gift Tax Act and hence was not liable to gift tax. Their Lordships of the Madras High Court in this case also referred to the ruling reported in 73 ITR 761, relied upon before us by the learned Department representative. The High Court referred to the recitals in the deed of partnership and found that the redistribution of the share of profits, which resulted in the assessee s share getting reduced, was made Bona fide and true. In the ruling reported in 105 ITR 92 relied upon by the learned Department representative, the facts were different. The disposition in that case was by the deceased in favour of a relative, whereas in this case the disposition was not in favour of a relative. Further in this case the transaction is supported by consideration and was entered into Bona fide for the expansion of the business. 6. For the foregoing reasons we uphold the order of the Appellate CED. The appeal of the Revenue fails and is dismissed.
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1978 (7) TMI 149 - ITAT MADRAS-A
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... ... ..... therwise satisfied as regards the genuiness of the assessee s case upto that date. Admittedly, no further application for extension of time was submitted by the assessee thereafter. But the fact that that the managing partner ultimately expired within a few months thereafter would bear out the assessee s contention that his illness continued beyond 31st Jan., 1974. Further more, despite his illness, the managing partner did see to it that the return was filed within his life time and within two months of the expiry of the extended date. In the circumstances, we are of the opinion that the penal provisions of s. 271 (1) (a) are not attracted to the facts of the case, for as has been observed by the Supreme Court in Hindustan Steel Ltd., vs. State of Orissa penalty shall not be imposed merely because it is lawful to do so and the totality of the circumstances must be taken into account before such an imposition. 4. The penalty is accordingly cancelled and the appeal is allowed.
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1978 (7) TMI 147 - ITAT JAIPUR
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... ... ..... istence. 13. As discussed above the firm carried on business. Partnership deed was also drawn up. The profits were also distributed according to the profit sharing ratio. Thus it s clear that the genuine firms were in existence. The learned Departmental Representative did not contend before me that the application for registration were not filed within time. The case of the assessee has been throughout that application for registration was within time. In the absence of any other evidence on record, in my opinion, the applications for registration were within time. 14.For the reasons discussed above, in my opinion, the finding of the learned AAC is not correct. Genuine firms were in existence. Even two assessments were made by the Department on the basis of two returns. In the year of account valid firms were in existence. The registration applications were given in time. Accordingly, the firm should be granted registration as claimed. 15. In the result the appeal is allowed.
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1978 (7) TMI 146 - ITAT JAIPUR
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... ... ..... of 33 per cent. Looking to the evidence on record, in my opinion, the net profit rate of 35 per cent subject to depreciation and interest would be reasonable. The assessee shall get relief accordingly. 16. The other point for determination is regarding the income of Shri Chain Sukh Ajmera from legal profession. The learned ITO has estimated the income from the profession at Rs. 7,000. The learned AAC has given relief of Rs. 3,500. Before me on behalf of the assessee no convincing material was printed out to show that the incomes of Shri Chain Sukh Ajmera in the year of account was less than Rs. 3,500, Shri Chain Sukh Ajmera did not maintain account books regarding his income. Looking to the aforesaid facts and the evidence on record, in my opinion, the income estimated at Rs. 3,500 by the learned AAC is quite reasonable. 17. In view of the aforesaid discussion, in my opinion appeal No. 335 is allowed, appeal No. 304 is partly allowed and appeal No. 312 is also partly allowed.
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1978 (7) TMI 145 - ITAT JABALPUR
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... ... ..... y was taken by the donee as the deposit-account of the deceased in the firm was debited and simultaneously credit-entries were made in the accounts of the donees. Interest accruing thereafter was also entered in their accounts and not in the account of the deceased. There was thus a complete change of ostensible dominion over the subject-matter of the gifts as could be made having regard to the nature of the property. After the gifts, the deceased ceased to have any interest in or possession over the actionable claim and this was retained by the donees to the entire exclusion of the donor. s. 10 would not apply and the amounts gifted could not be included in the estate of the deceased. 9. In view of the decision quoted above, we hold that the lower authorities were not justified in including the sum credited in the name of the trust in the books of accounts of the firm in which the deceased was a partner, in the estate of the deceased. 10. In the result the appeal is allowed.
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1978 (7) TMI 144 - ITAT JABALPUR
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... ... ..... arned Departmental representative laid great emphasis on the observations of the ITO that the assessee had agreed to the addition of Rs. 8,000 in the trading-results. It was argued that this agreement by itself amounted to an admission that the assessee had concealed its income and, therefore, penalty was properly leviable. 9. We have, in our order of even date in ITA No. 432 (Alld)/70-71 (Asst. yr. 1974-75), discussed the legal implications and effect of an agreement on the part of the assessee for addition in its total income. We have held that an agreement simplicater for such an addition in the trading-result will not amount to an admission of concealment or furnishing of inaccurate particulars and cannot form the basis for levy of penalty under s. 271(1)(c) of the Act. For detailed reasons given therein, we hold that the agreement on the part of the assessee did not amount to an admission of concealment. 10. The appeal is, therefore, allowed and the penalty is cancelled.
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1978 (7) TMI 143 - ITAT HYDERABAD-A
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... ... ..... ance which the employer-company chose to describe as daily allowance as discussed above. Even if the assessee had incurred a part of the allowance so received by him towards conveyance expenditure, it does not follow that the allowance so received by him would partake of the character of conveyance allowance. When a person is in receipt of conveyance allowance, it is understood that the allowance so paid to him is solely on account of incurring expenditure for meeting travelling expenditure in connection with the performance of his duties. In the case before us, no such conveyance allowance was paid to the assessee and the daily allowance which was paid to him, in our view, will not partake of the character of conveyance allowance. In the circumstances, we uphold the order of the AAC and the assessee would be entitled for the deduction under s. 16(1) on the ground that he was not in receipt of any conveyance allowance. 6. In the result, the departmental appeals are dismissed.
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1978 (7) TMI 142 - ITAT GAUHATI
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... ... ..... include the new partner in respect of the trading result of the entire previous year. This is the substance of the agreement and in looking at commercial documents, we must see only the intention of the parties and the substance of the transaction. The contention of the Revenue would make sense only if we disregard the substance of the transaction and quibble with the wording of the agreement which is generally frowned upon by Courts. the assessee also placed before the AAC several other instances of similar deeds of partnership in respect of which registration has been granted without demur and the Revenue has not stated why these two assessees have been singled out for denial of registration. in our opinion, therefore, the fresh deeds of the two firms were quite valid and in accordance with law and the AAC was right in granting registration. we, therefore, see no reason to interfere with his orders which are hereby confirmed. 9. In the result both the appeals are dismissed.
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1978 (7) TMI 141 - ITAT DELHI-D
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... ... ..... the ITO under s. 185 (5) of the Act on the facts of the present case was arbitrary and unjust. It was not proper exercise of the discretion at all much less a judicial exercise thereof. The decision of the Allahabad High Court in the case of CIT vs. Raj Narain Tewari (2) fully supports the contentions urged on behalf of the appellant. Respectfully following the said decision of the Allahabad High Court we hold that the refusal of registration under s. 185(5) of the Act on the facts of the present case was totally unwarranted and unjustified. We would accordingly reverse the orders of the authorities below and direct the ITO to grant registration to the appellant firm for the asst. yr. 1974-75 and also modify the best judgment assessment under s. 144 in the light of this order and allow consequential relief due to the appellant. 17. In the result, the registration appeal is allowed. 18. I.T.A. No. 5250 (Del.)/1976-77 is allowed and I.T.A. No. 5251 (Del.)/ 1976-77 is dismissed.
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1978 (7) TMI 140 - ITAT DELHI-C
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... ... ..... ployees residing inBombay,Calcutta,DelhiandMadrasthe existing instructions of the Board would continue to apply and as such, only the excess over 30 per cent of the Salary will be added to the basic valuation of 10 per cent of the Salary in such case. The error in the computation of the value of the rent free accommodation committed by the AAC is that he has added excess of rent over 20 per cent of the salary whereas he should have added the excess of rent over 30 per cent of the salary as provided in the CBDT s circular referred to above. The computation other wise made by the AAC appears to be in order. It is needless to say that the circular of the CBDT is binding on the ITO in view of the decisions of the Supreme Court in 56 ITR 198 and 82 ITR 913. I, therefore, direct the ITO to recompute the value of the rent free accommodation at 10 per cent of the salary plus excess of rent over 30 per cent of the salary of the assessee. 9. In the result, the appeal is partly allowed.
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1978 (7) TMI 139 - ITAT DELHI-C
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... ... ..... ved from the partners but what had been done to make a claim for deduction of such receipts as interest payments to partners are added to the net profits by virtue of s.40-B of the Act. If the assessee contends in filing his return that certain items of receipts are not taxable, we do not think there could be said to be any Act of the assessee to be as contumacious. More so when in the past also the assessee had been following the same practice and no such allegation has been made against him. Thus, in the circumstances of the case, we do not think the penalties imposed for both the years under consideration could be said to be legally tenable. 6. From the above discussion of the Tribunal, it would be evident that the Tribunal s finding that there was no contumacious conduct on the part of the assessee in submitting the returns is a finding of fact based on inferences of facts. The proposed questions do not arise as of law. 7. Both the application are, accordingly, dismissed.
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1978 (7) TMI 138 - ITAT DELHI-C
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... ... ..... D(j) of the Income-tax Rules, 1962 by summoning the payee whose permanent account number and full address were furnished by the assessee. We are unable to find any thing wrong in this direction given by the AAC. We, therefore, confirm the order of the AAC on this point also. 10. In the last ground, the Revenue objects to the direction given by the AAC to the ITO to recalculate the interest under s. 139(8) and s. 215 of the Act with reference to the reduced quantum of the assessee s total income as a result of giving effect to his appellate order. We have gone through the paragraph 23 of the order of the AAC who rightly rejected the assessee s objection on this point as not entertainable but, however, gave the above mentioned direction which in our opinion is perfectly right and in conformity with law. We, therefore, do not see any reason to interfere with the order of the AAC on this point also. 11. In the result, the order of the AAC is confirmed and the appeal is dismissed.
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1978 (7) TMI 137 - ITAT DELHI-C
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... ... ..... made for non-business purposes. The ITO has failed to do so in this case. He has not brought any material on the record to establish a nexus between the borrowed funds available with the assessee and the loans advanced for non-business purposes. Apart from this the first two amounts of Rs. 8,700 and Rs. 7,000 have to be excluded out of consideration for the simple reason that these were not loans advanced by the assessee. The first amount was only rent receivable or unrealised by the assessee and the second amount of Rs. 7,000 was advance to weavers for purchase of goods and was subsequently adjusted against the goods actually purchased from them. As regards the remaining two advances of Rs. 28,650, there were sufficient funds which were non-interest bearing funds out of which these amounts could be advanced. For these reasons, the disallowance of interest of Rs. 6,400 is not at all justified. The disallowance is accordingly, deleted. 5. In the result, the appeal is allowed.
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1978 (7) TMI 136 - ITAT DELHI-B
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... ... ..... d in the name of Shri Sukhbir Saran Kargal and that it was not changed over to the firms name. cl. 9 of the partnership deed recognised this position and took care to declare that notwithstanding the fact that the account was in the name of Shri Sukhbir Saran Kargal, it was firm s property. Similar is the position with regard to the truck. In order to become firms property, it is not necessary that every asset should be held in the partner s name. It may be held even in the partner s name. So long as it is clear by the act of the parties and the entries in the account books that the assets belong to the assessee firm, they would be firm s property whether or not they stand in the firm s name. Taking into account, the overall facts of this case, we are left with no doubt in our mind that a genuine firm had come into existence by the deed of partnership dt.1st Sept., 1972and that, therefore, the firm should be granted registration. 11. Accordingly, the appeal is hereby allowed.
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1978 (7) TMI 135 - ITAT CUTTACK
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... ... ..... ed having advanced Rs. 7,000 to his son for purchase of truck on 2nd, May, 72. Therefore, the only question left for our consideration is whether it was probable for the assessee to keep the amount idle for about 18 months. In our opinion, it is not at all improbable, for a Government Servant to keep cash of Rs. 7,000 without making any investment, more so when there was nothing to show that the particular amount was otherwise invested either by the assessee or by his mother. The mother of the assessee was also not examined. When a particular evidence is denied to be true by the ITO, it is absolutely necessary for him to make out a strong case against the assessee. But we find no such material on record. We, therefore, hold that the lower authorities included the amount of Rs. 7,000 in the total income of the assessee merely rejecting the assessee s explanation. Such inclusion cannot be confirmed. This addition is, therefore, deleted. 7. In the result, the appeal is allowed.
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1978 (7) TMI 134 - ITAT CUTTACK
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... ... ..... t that the question raised in this appeal is covered by those orders of the Tribunal. Hence we uphold the order of the AAC who has followed those Tribunal decisions. We have considered the contention raised by the learned representative for the Department but do not find any force in the same. On going through s. 80-HH (1) we find that it refers to the allowance being deducted from the profits and gains of a business carried on by the assessee. Undoubtedly, the assessee was engaged in a business which was to execute contracts. The profit or loss arising out of its business belonged to it and not to the Government of Orissa. Hence, the assessee was right in claiming the deduction under s. 80-HH while computing the profits and gains of the business carried by it. This section does not refer to the ownership of the business. It refers to the computation of the income from business. Under the circumstances we uphold the order of the AAC. 6. In the result the appeal is dismissed.
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1978 (7) TMI 133 - ITAT CUTTACK
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... ... ..... ference of opinion between the assessee and the Revenue and it cannot be said to have resulted out of any fraud or gross or wilful neglect on the part of the assessee. Consequently, we come to the conclusion that the assessee did discharge the initial negative onus that was placed on it by the Expln. to s. 271 (1)(c) of the Act. We find support for the above in the decision of the Hon ble Orissa High Court in the case of K.G. Behera (11) and the decisions in the case of S.P. Bhatt(3) and Sadiq Ali and Bros. (2). Once the assessee comes out of the Explanation, then the provisions of the main s. 271(1) (c) come into play. In other words, it is then for the Revenue to show that the amounts assessed really represented the assessee s income and that it consciously concealed the same. We find nothing in the penalty order or on the record to show that this has been established. For the above reasons, we cancel both the penalty orders. 9. In the result, both the appeals are allowed.
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1978 (7) TMI 132 - ITAT CUTTACK
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... ... ..... t the general body of public would regularly take part in the festivals and ceremonies of Ganesh Chatrudashi and Dasahara. We are, therefore, of the opinion that this was a public religious trust. 11. The Will, however, provided that 3/4th of the income from the property was to be spent for the purpose of Seva-Puja of the aforementioned two deities. We were told that the testator died on 19th Nov., 1927. Therefore, this case fell under the provisions of s. 11(1) of the Act, according to which where a specified part of the income is set apart for charitable or religious purposes that portion of the income should be exempted from tax. We, therefore direct the ITO to allow exemption to the extent of 3/4th of the total income determined by him in his case. 12. No special ground was taken in he Cross-Objection filed by the Department and as such this is to be dismissed. 13. In the result, the assessee s appeal is partly allowed while the Department s Cross-Objection is dismissed.
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1978 (7) TMI 131 - ITAT CUTTACK
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... ... ..... levy of penalty is reached. We have, therefore, no hesitation in concurring with the view taken by AAC as to the applicability in this case. 9. Coming to the assessee s Cross-Objection we are unable to accede to the submission of the assessee s counsel that the ITO mechanically imposed penalty. It is clear from the order that he has considered the explanation given by the assessee before levy of penalty. The explanation of the assessee did not find favour with the ITO because (even before the assessee s counsel fairly admitted before us) there was no evidence to support the correctness of that explanation. We, therefore, hold that the penalty was exigible in this case. 10. In regard to the quantum of penalty, as maintained by the AAC, we, in consideration of the facts and circumstances of the case, are of the opinion that the computation is in order which does not require any change. 11. In the result, the Departmental appeal and the assessee s cross-objection are dismissed.
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1978 (7) TMI 130 - ITAT CUTTACK
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... ... ..... taining the addition of Rs.1,432 made by the ITO under s. 41(2) of the Act. The learned Departmental Representative supported the order of the lower authorities. 8. Having heard the contentions of both the parties, we are of the opinion, that the submissions of the learned counsel for the assessee on this point must prevail. We see that while estimating profit, the ITO has not allowed expenses which were included in the assessee s claim of capital expenditure of Rs.6,094 although he found that small items of current repairs were included in that amount. The ITO also had not brought any material on record to show that the voucher from Sri. K. Venkatrao showing purchase of motor parts by the assessee was not genuine. In view of these facts, we hold that the assessee s claim of loss on sale of truck was arbitrarily rejected by the lower authorities. Accordingly, the addition of Rs.1,432 is deleted. 9. No other ground was pressed. 10. In the result, the appeal is partly allowed.
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