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Case Laws
Showing 41 to 60 of 97 Records
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1979 (5) TMI 71
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... ... ..... e Madras High Court has held in the decisions quoted above that there would be no extinguishment of the right of the thrower and consequently the transaction would not amount to a disposition. In other words in the gift so made (assuming there is a gift), the intention of the donor would be that the donee should take the properties but subject to the shown right there. Therefore there is no question of the donor is such a case being excluded from possession and enjoyment of the properties concerned. In such circumstances, the principles enunciated in Munro s case will apply and not the one enunciated in Chick s case. Therefore, there is no scope for the application of the provisions of s. 10 of ED Act. 11. For the above reasons, we hold that the Appll. Contr., was justified in coming to the conclusion that the properties in question belonged to the HUF of the deceased and that only the half share of the deceased passed on the death. 12. In the result, the appeal is dismissed.
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1979 (5) TMI 70
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... ... ..... ilitate against free transferability since such power conferred was of a fiduciary nature which has to be exercised by the directors in the best interest of the company for preventing any undesirable person becoming a member. Looking to all the aforesaid circumstances, we hold that the shares of the assessee were freely transferable during the relevant previous years by the holders to the other members of the public and, therefore, the company is one in which the public are substantially interested. In view of the controversy before us having been limited to the aspect of transferability it is not necessary to discuss the various other points which the AAC has dealt with in his appellate order. 5. The result is that the appeals of the Department fail. In the view that we have taken, it is not necessary for us to pronounce on the other contentions urged in the cross objection which become academic. The cross objection is also accordingly dismissed as having become superfluous.
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1979 (5) TMI 69
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... ... ..... e cheque counter on 12th March, 1976, in the normal course of commercial practice, it should have been sent for clearing on the 13th and the proceedings after the clearing should be obtained on the 14th which would have made the payment within time. Even if the receipt issued stated that the date of realisation will be the date of granting the credit, when the assessee had tendered a cheque sufficiently early when viewed from the angle of commercial practice and the number of days left would be sufficient for clearing the cheque and crediting the amount before the due date then unless there is some material to show that there were some special circumstances for which the assessee could at least be held indirectly responsible, which material is absent in the present case. No delay, in our view, can be attributed to the assessee. The payment has to be considered as having been made by the due date and would, therefore, constitute payment of advance tax. The appeal is dismissed.
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1979 (5) TMI 68
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... ... ..... record to show that the assessee received any sum more than what was recited in the document of sale. Relying on the decision of the Madras High Court in CIT vs. Rikabdas Dhuraji and another (1), the AAC held that there was no case to invoke the provisions of s. 52(2). He directed the ITO to adopt the sale consideration at Rs. 1,64,800 and compute the amount of capital gains. Against this order, the Revenue has filed the present appeal. 3. We find that it is common ground that the assessee did not receive any sum more than what was recorded in the deed of sale of the property under consideration. The ruling of the Madras High Court referred to by the AAC squarely applies to this case. The Madras High Court in a subsequent decision in Addl. CIT vs. P.S. Kuppuswamy (2), has followed the above ruling reported in 103 ITR 111. Respectfully following the above rulings of the Madras High Court, we uphold the order of the AAC. 4. The appeal of the Revenue fails and stands dismissed.
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1979 (5) TMI 67
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... ... ..... TO. The assessee has maintained accounts showing the receipt and expenditure in respect of the agricultural income monthwise. We have perused the said books. The authorities below did not accept the receipt of net agricultural income on the ground that the entries in the books were not supported by bills of sales of agricultural produce. It may be that the authorities may be justified in making an estimate of the agricultural income in such circumstances. But it cannot be said that the assessee is guilty of fraud or gross or wilful neglect on his part. Having regard to the facts of the case, as set forth above, we are satisfied that the assessee is not guilty of fraud or gross or wilful neglect on his part in his failure to return the correct income and, therefore, the provisions of the explanation to s. 271(1)(c) cannot be invoked to hold that the assessee is deemed to have concealed his income. In the result, we cancel the penalty. 7. The appeals fails and stands dismissed.
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1979 (5) TMI 66
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... ... ..... ssee has raised this ground before the AAC and since he has failed to deal with it, it can be taken that he has held against the assessee. In this view of the matter it would be open to the assessee to canvass the same ground again before the Tribunal. We have not been able to trace the case referred to by the view that the words per annum occurring in s. 80J can be interpreted to mean both as yearly and as on a time basis . We have taken the view that the interpretation which is more beneficial to the assessee can be adopted, namely that the relief is to be given yearly for five years beginning with the first year and in that sense there is no question of limiting the relief on a time basis. We therefore uphold the claim of the assessee that it is entitled to 6 per cent on the capital employed without further reduction on prorata for the period during which the industry was carried on. 8. In the result, the appeal is allowed and the ITO will amend the assessment accordingly.
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1979 (5) TMI 65
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... ... ..... d by the ITO 12 per cent interest accrued in respect of Pattabhi Chettiar on the outstanding of Rs. 5,000 was only Rs. 600 which the ITO included whereas the assessee had actually shown the receipts of Rs. 1,200 from this party. No doubt, in the quantum proceedings the stand of the Revenue that since the assessee followed the mercantile system, interest on accrual basis should be brought to tax has been upheld, but nevertheless, when considering the matter of imposition of penalty, the state of mind of the assessee assumes importance and on an analysis of the facts, we have come to the conclusion that the non-returning of any interest income on the due basis was the consequence of a Bona fide belief that it was sufficient if interest was returned when actually received. In our view, the provisions of s. 271(1)(c), therefore, are not attracted on the facts of this case. We, therefore, uphold the order of the AAC cancelling the penalties under appeal. The appeals are dismissed.
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1979 (5) TMI 64
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... ... ..... enerally in respect of each survey number. In this case, we are informed that the relevant survey number is 1427 and that it is for an extent of 2 acres and 25 cents. The present plot of 14 cents is comprised within the 2 acres and 25 cents. The AAC has found that the land in question suffers from a slight disadvantage that it is situate in a hind land and in a private road. This aspect of the matter has to be borne in mind in estimating the value of the land even on the basis of the guideline valuation. It is also true that the valuation made by the urban land tax authorities was based on the valuation prevailing on 1st June, 1971. The increase in the value of open sites over a period of nearly five years has also to be borne in mind. Keeping all the above circumstances in view, we are of opinion that it would be reasonable to adopt a value of Rs. 2,500 per cent for the site in question. We direct the WTO to amend the assessment accordingly. 4. The appeal is allowed in part.
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1979 (5) TMI 63
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... ... ..... o be ignored. We are, therefore, to hold that the prescription of time limit in the Rule has to be ignored. This being the position, we cannot hold that Form No.10 though filed on 28th Nov., 1974 was out of time because under the Rule in the interpretation we have placed, there cannot be any time limit prescribed. Regarding the deposit in the bank the balance-sheet shows that the amount has been kept in the bank and there is nothing of the ITO that it was with Chartered Bank. S. 11(2) (b) (ii) speaks of only deposit in a banking company. It does not speak of the particular type of deposit which should be made. This being so, since deposit has been made with the banking company as prescribed in the aforesaid section, the requirements are fully satisfied and the assessee will be entitled to exemption from taxation. The ITO will not examining the declaration u/r. 10 and if the other requirements are satisfied, will grant exemption in accordance with law. The appeal is dismissed.
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1979 (5) TMI 62
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... ... ..... wn or modified. It was further held that on the valuation date nothing had happened beyond a mere recommendation by the directors as to the amount that might be distributed as dividend and, therefore there was no debt owed by the company to the shareholders, on that date. The Supreme-Court, therefore, held that the proposed dividend was not deductible in computing the net wealth of the assessee company in that case. The learned counsel for the assessee informed us that the Department has not been taking a consistent stand, that in the assessment of the individual share holders the Department takes one stand which is opposed to the stand taken in the assessment under Sur-tax Act on the companies. In this appeal, we are not called upon to decide about the alleged inconsistent stand of the Department. So far as the present assessment is concerned, we are satisfied that the orders of the lower authorities do not warrant any interference. 5. In the result, the appeal is dismissed.
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1979 (5) TMI 54
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... ... ..... e gift in Singapore and, therefore, the gift was exempt. Mere intention alone is not enough. The actual transfer of money amounting to gift should have taken place outside the taxable territories. On the facts of this case, it is established, as pointed out above, that the gift took place only within the territories of India. The learned departmental representative read to us the above order of the AAC for 74-75 on which reliance is placed by the present AAC. It is seen therefrom that in that case the drafts were taken by the assessee in the name of the donee in the foreign country. The fact in the instant case is entirely different. In this case, the assessee brought the money from the foreign country to India in the shape of drafts drawn in his own name. This important aspect of the case has been overlooked by the AAC. For the foregoing reasons we reverse the order of the AAC and restore the order of the GTO. 5. In the result, the Revenue succeeds and the appeal is allowed.
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1979 (5) TMI 46
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... ... ..... made by the ITO. This clearly shows that the ITO had not applied his mind and these two orders of the ITO are erroneous and prejudicial to the interest of the Revenue. The CIT is, therefore, justified in setting-aside the order of the ITO under s. 263. 6. As stated above both the methods applied by the assessee and as well as the CIT are not in accordance with the principle of accountancy. In our opinion, the closing stock should have been valued at the average purchase rate or the market rate whichever is lower. In this case, we find the market rate was much higher than the purchase rate. We, therefore, hold that the closing stock of the silver for these two years should be valued at the purchase rate which comes to Rs. 465 per kg. and Rs. 782 per kg. for the asst. yrs. 1974-75 and 1975-76. The ITO should bear in mind that the opening stock of silver should be also revalued as per the purchase rate of the immediate preceding year. 7. The appeal of the appellant is dismissed.
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1979 (5) TMI 45
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... ... ..... ers. In the present case, this enquiry will be difficult because the settlement was made in the year 1965 and the marriages had been performed much earlier. In the circumstances, it can be assumed that these amounts were transferred by the Karta in performance of the promise made at the time of the marriages of the daughters. 11. But assuming for argument s sake that Shri R.R. Gaikwad had make gifts of Rs. 5,000 each to his married daughters, in the assessment year under appeal, there was a basic exemption of gifts amounting to Rs. 10,000. As according to our finding earlier, the amounts settled for unmarried daughters could not be treated as gifts within the definition of the GT Act, the only gifts in the assessment year was the gift of Rs. 10,000 by the assessee. This being exempt from tax in the relevant assessment year. The assessee was not liable for any tax on the gifts made by Shri R. R. Gaikwad. 12. In the result, the appeal is allowed and the assessment is set aside.
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1979 (5) TMI 44
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... ... ..... book of accounts but the ITO, had not examined them. Without pointing out many serious defects we do not think it fair to reject the books profit and estimate the profit. The G.P. disclosed by the assessee in view of the increase in the turnover is not unreasonable when no defects were pointed out. In view of the facts and circumstances, the rejection of the book profit for this year also by the ITO was not fair. The ITO is directed to accept the gross profit disclosed by the assessee. 4. For both these years the ITO had disallowed Rs. 3,000 each out of shop expenses. We have perused the expenses claimed by the assessee, also considered the disallowances made earlier and we hold that a disallowance of Rs. 1,500 per year for both these years is fair and reasonable. The assessee gets a relief of Rs. 1,500 for each of these asst. yrs. 1972-73 and 1973-74 out of Rs. 3,000 disallowed for each of these two years retained by the AAC. 5. In the result, the appeals are partly allowed.
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1979 (5) TMI 43
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... ... ..... karta and his younger brother, each of them made gifts of the family property to their respective sons. The GTO sought to the assessee family to gift-tax in respect of these gifts. It was held that a party except to the extent recognised under the Hindu law i.e. for legal necessity or for pious purpose or in favour of members of the family in a small proportion. It was further held that partition of joint family property does not involve a transfer. Viewing these gifts from either aspect referred to above there were no gifts to attract the provisions of the GTO. No doubt the assessee has been misguided in executing deeds of gift which he could very well show as deeds of partition but certainly there is force in Mr. Sachdeva s argument that no person would ordinarily give away property to his brothers if they had no claim thereto. In view of all these circumstances, we are of the opinion that there is no reason for us to interfere in the appeal which is accordingly dismissed.
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1979 (5) TMI 42
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... ... ..... paid interest to the banks. Now, so far as the loans raised by the firms from the banks are concerned, they were specifically utilised for the purposes of the business and hence as per the provisions of s.36(iii) of the IT Act, interest paid by the firms to the bank was clearly an allowable deduction. We are unable to accept the contention of the learned representative of the Department that since the fixed deposits were pledged as security with the banks they became assets of the firms. The mere pledging of fixed deposits could not pass on its ownership to the firms for whom these fixed deposits were furnished as security. The AAC was, therefore, quite justified in taking the view that the interest paid by the firms to the banks on the loans borrowed and utilised for the purposes of business was rightly allowable as per the provisions of s. 36(iii) of the IT Act. We, therefore, uphold the orders of the AAC. 6. In the result, all the three Departmental appeals are dismissed.
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1979 (5) TMI 41
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... ... ..... gument faintly raised by Mr. Khan regarding the genuineness of the gifts except to say that there is absolutely no substance or merit in it. It is true that no gift-tax was paid in respect of any of these gifts. This was presumable because that the value of the gift in each case at that point of time was below the taxable limit. The provision to s. 4(1)(a) of the WT Act enacts that transfer of assets in regard to which gift-tax is chargeable or which are specifically exempt from the charge of gift-tax under s. 5 of the GT. for the asst. yr. 1964-65 or any subsequent asst. yr. Should be expressly excluded for the purpose of the WT assessment. We have already held that the gifts were effected in the years in which they were purported to have been effected. In view of the proviso the question of the inclusion of the value of the assets transferred to the minor children in computing net wealth of the appellant does not arise. 6. In the result, the appeals succeed and are allowed.
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1979 (5) TMI 40
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... ... ..... hat there was no genuine firm in existence in these two assessment years in the sense of the firm having ceased to exist since such cessation can be only be dissolution in accordance with law and such dissolution had not admittedly taken place in either of these two assessment years. 9. In the circumstances of the case, looked at from any point of view, we are satisfied that the assessee was entitled to the continuation of registration granted in the earlier year since the conditions required under s. 184(7) were admittedly fulfilled and there was no legal impediment to the grant of registration under s. 185 of the Act. We have, therefore, no hesitation in reversing the orders of the authorities below. We direct the ITO to grant registration to the firm for the asst. yrs. 1975-76 and 1976-77 and reframe the assessments in the status of a registered firm. We also authorise him to amend the assessment of the partners as a consequence. 10. In the result, the appeals are allowed.
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1979 (5) TMI 39
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... ... ..... uishing feature was that on facts, there was no dispute that the gift was completed on30th March, 1967, when the gift deed was executed and the Tribunal held that the registration of the gift deed related back to the date of execution. 7. In view of what is stated above, the finding that the gift was a completed gift on 30th March, 1967, was a finding of fact and the objection of the Department that since the deed had been registered on 14th April, 1967, the gift took place on that date was over-ruled because of the provisions of s. 47 of the Registration Act and the decisions of Allahabad High Court, and the Supreme Court, referred to above. Therefore, the answer to the objection of the Department is self-evident and the question that the gift was completed on30th March, 1967was a question of fact. The remaining two questions, sought to be referred by the Commissioner are only consequential. 8. In the result, therefore, we decline to state a case and reject this application.
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1979 (5) TMI 38
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... ... ..... ing V.V. Acharya regarding the return of the money there was nothing wrong in his request to Mr. V.V. Acharya to clear up the hotel bill also. Thus from the material from the material on record, we cannot hold that the income from Shakahari Hotel belongs to the assessee. In our opinion, the AAC was justified in deleting the income of Shakahari Hotel from the assessments of the assessee. 7. The ld. counsel for the assessee brought to our notice that for the asst. yr. 1964-65,1965-66,1966-67 and 1967-68 the ITO had re-opened the proceedings in the case of the assessee with a view to include the income from Shakahari Hotel but by his orders dt.29th Jan., 1977all these re-assessment proceedings were dropped. This fact is not controverted by the ld. Deptl. Rep. This fact itself indicated that the Department itself has admitted that the income from Shakahari Hotel does not belong to the assessee and belongs to the assessee wife. 8. In the result, all the four appeals are dismissed.
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