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Case Laws
Showing 61 to 80 of 158 Records
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1980 (12) TMI 99 - ITAT MADRAS
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... ... ..... . In the light of the above principles, the facts have to be examined to determine the repayment towards capital and the repayment in respect of interest. The repayment of capital is not admissible whereas the interest portion is admissible as a deduction. As the data has not been examined fully, we remand this point to the Agrl. ITO. 15. The next contention is about the disallowance of legal expenses of Rs. 600. This expenditure is said to have been incurred in connection with the Agrl. IT Tribunal Appeal. Reliance is placed on the decision of the Supreme Court in CIT, West Bengal-I vs. Birla Cotton Spinning and Weaving Mills Ltd. (1971) 82 ITR 166 (SC). We have been allowing a reasonable expenditure on that item in many appeals. On the principles laid down by the Supreme Court, we hold that this expenditure is quite reasonable and is admissible. 16. In the result, both the appeals are partly remanded and partly allowed. 50 per cent of the Institution fee shall be refunded.
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1980 (12) TMI 97 - ITAT JAIPUR
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... ... ..... roneous. when the order of the ito is not erroneous, we need not enter into the controversy whether it is prejudicial to the interests of revenue. for exercising jurisdiction under s. 263, an order of the ito should not only be erroneous but that should also be prejudicial to the interests of revenue. these are the two concomitant conditions of s. 263 and both should be established together. if one of them is not fulfilled, then no valid jurisdiction can be exercised by the cit under s. 263. on the facts and in the circumstances of the case, it clearly appears that it is a case merely of difference of opinion. thereas, the cit feels that on the facts of the case, there is a change of the constitution, the ito felt that it was a case of dissolution. both the propositions are being supported by the full bench decisions of the different high courts. in the circumstances, the cit cannot accuse the ito for having passed the erroneous order. 3. in the result, the appeal is allowed.
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1980 (12) TMI 96 - ITAT JABALPUR
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... ... ..... ,661. In appeal the AAC confirmed the levy of penalty. Hence this appeal. 2. Heard both the ld. counsel for the assessee, Shri D.C. Bhamore, and the ld. Authorised Representative of the Department, Shri S.M. Khade. In out view there is a case for interference in the order of the AAC. It is not denied by the authorities below that if the accumulated agriculture income is taken our of the net wealth of the assessee, the result would be that no wealth will be taxable. Thus in the circumstances of the case, if the assessee entertained a plea that the property does not belong top him and on legal advice he files return thereby delaying the filing of the return it can be a sufficient reasonable cause for condoning the delay in filing the return. Thus on the totality of the circumstances we hold that the authorities below were not justified in disbelieving the version of the assessee and as such penalty levied is cancelled. In this result the appeal filed by the assessee is allowed.
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1980 (12) TMI 95 - ITAT JABALPUR
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... ... ..... 970 was filed to show sale of a plot by the assessee for a sum of Rs.3,000. Besides the assessee who has some agricultural land and his own house to live, claimed savings to the extent of Rs. 2,500. 6. We are clear that the ld. AAC ought to have considered this evidence because the same was fool-proof and convincing. The estimate of investment made by the Inspector at Rs. 20,000 had no basis as such, and we are of the view that a petty employee who had raised loans and sold his property to construct a small shelter for himself should not have been put to harassment just on the basis of surmises and conjectures. In any case, the ld. AAC ought to have considered the whole question by accepting evidence in the interest of justice and fair play. We hold that the assessee had properly explained the source of investment in the construction of residential house and there was no valid reason for determining his income at Rs. 20,000 as unexplained investment. 7. The appeal is allowed.
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1980 (12) TMI 94 - ITAT INDORE
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... ... ..... proper quantitative details or stock register. At the same time, the GP rate of 10 per cent applied in this case considering the tremendous increase in the turnover, as compared to the earlier year is rather on the higher side. It is true that in the first year of business relating to the asst. yr. 1974-75 an adhoc addition of Rs. 5,000 was made raising the GP rate to 10 per cent but we find that in the year the sales of the assessee were only to the extent of Rs. 85,522 while during the year under consideration the sales have gone up to Rs. 3,91,862 Pachor is a small place and the assessee s contention that it was dealing mainly in coarse cloth at this branch cannot also be disregarded. Considering all the facts and the circumstances of the case, we are of the opinion that it would be reasonable to apply a GP rate 9 per cent on the sales as estimated by the ITO The trading addition should be reduced on the lines indicated above. 5. In the result the appeal is partly allowed.
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1980 (12) TMI 93 - ITAT HYDERABAD-B
Exemption, Agricultural Tools And Implements ... ... ... ... ..... cautioned that implements which are collaterally or partly used to energise agricultural tools or implements will not qualify for exemption. To energise a tool or implement means to put such tool or implement into action. The lathe is used for repairing agricultural tools or implements. In that context, it is machinery which is used not directly for energising the tools or implements, but only collaterally, in the sense that it comes into use when the tools or implements suffer damage or have a defect. It is not machinery which is necessary to run the tool or implement directly from day to day or, in other words, it is not machinery on which the tool or implement is directly dependent for functioning from day to day. It is machinery on which the tool or implement becomes dependent only when there is a break-down or there is a damage. The value of the lathe, therefore, in our view, will not fall for exemption under section 5(1)(ix). 9. The appeals are, accordingly, dismissed.
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1980 (12) TMI 92 - ITAT DELHI-D
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... ... ..... not commensurate with the requirement of law. In this regard, it may be noted that under s. 192, the assessee is to estimate the income of the employee, which is likely to be assessed under the income head Salary . Thus, the assessee employer can proceed on the basis of estimate so made. We do not accept the Department s argument that the estimate so made has to be reasonably true and that otherwise, the assessee employer exposes himself to levy of interest under s. 201(1A). In the present case, it may be noted that there is no material on the record to show that on the assessments, as individually made on the various employees concerned, the amounts assessed under the income head Salary were on point of fact found to be larger than the amounts on basis of which deductions were made by the assessee employer in the first instance. Thus, looked at from any angle, the order of levy of interest cannot be sustained. The same is set aside. Assessee succeeds. 8. Appeals are allowed.
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1980 (12) TMI 91 - ITAT DELHI-C
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... ... ..... ificate, rent receipt and complete books of account with vouchers. There is nothing on record to show that the assessee was also required to file evidence regarding cash credits or copies of the squared up accounts as mentioned by the IAC in his order. Even if the assessee would have been asked to submit such details, they by themselves did not go to show that any case of prima facie concealment, much less actual concealment had been established against the assessee. Our finding therefore is that the assessee suomoto surrendered the amount of Rs. 10,720 by filing a revised return on29th Jan., 1976before the ITO could lay his hands on any alleged concealed income or even prima facie establish a case of any concealment against the assessee. We, therefore cancel the penalty of Rs. 11,000 imposed by the IAC. In the view we are taking, it is not necessary for us to discuss the other contention that the IAC had no jurisdiction over the case. 8. In the result, the appeal is allowed.
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1980 (12) TMI 90 - ITAT DELHI-C
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... ... ..... ests for extension of time unto31st Jan., 1975was made. No decision on these applications was communicated to the assessee. In these circumstances it should be held that the failure of the assessee was for reasonable cause. The authorities below did not take into account the application for extension of time filed on5th July, 1974on the ground that it was after the expiry of the time limit for the filing of the return which was30th June, 1974. We do not think on this ground the application of the assessee could be ignored. Apart from the aforementioned facts, the assessee had a mishap which was that the husband of the assessee rsquo s niece who was inUnited Stateshad expired in September, 1974. Also the assessee rsquo s nephew had died in a rail accident. Taking into account all these facts we hold that the failure of the assessee was for reasonable cause and, therefore, the levy of penalty was not justified. Hence we cancel the penalty. 4. In the results the appeal succeeds.
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1980 (12) TMI 89 - ITAT DELHI-A
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... ... ..... al enquiries which revealed that the said firm of M/s Goyal Dal Mill had totally closed and become defunct and there was absolutely no chance to any recovery from them. It was further stated that the firm was long since dissolved and the factory was sold against bank loans and there was no property or assets left behind. It was also stated that there was absolutely no point in taking the case to the Court. It is unfortunate that the ITO and the AAC have ignored an for this material which clearly shows that the assessee did all that was in its power and took all the possible steps to recover the outstanding amount from the party and only after having failed to do so and having lost all hopes for recovery, it wrote off. This proves that the debt had become irrecoverable and bad in the year of account relevant to the assessment year under appeal. 4. In the result, therefore, we direct the ITO to allow the assessee s claim for the bad debt of Rs. 18,937.17. The appeal is allowed.
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1980 (12) TMI 88 - ITAT DELHI
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... ... ..... sy. We must state, at the very outset, that disallowance made by the ITO and subsequently by the ld. AAC was without any basis. Shri Saboo was a qualified person and looking to the services rendered by him, it could not be said that the salary of Rs. 2,000 per month paid to him was unreasonable or excessive. Due to his efforts the income of the HUF had increased considerably. After leaving the partnership, he received from the firms as an employees Rs. 4,000 per month. After considering all this material, the ld. AAC still sustained the disallowance of Rs. 200 per month but no reason have been given by him for retaining the disallowance to that extent. We feel that the salary paid should have been allowed fully. We delete the disallowance. The assessee had also agitated before the ld. AAC the charge of interest under s. 139(8) amounting to Rs. 2,674 but this has not been considered and hence we restore this issue to the file of the AAC. 5. In the result, the appeal succeeds.
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1980 (12) TMI 87 - ITAT CHANDIGARH
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... ... ..... the amount in terms of the ratio of the Hon ble Punjab and Harayana High Court Judgment in the case of Gherulal Balchand 1977 CTR (P and H) 150 1978 111 ITR 134 (P and H). After hearing the parties before us, we find that the expenditure cannot be called as entertainment from the very nature of it as appearing in the details filed at page 8 of the assessee s paper book. The monthwise expenditure has been given by the assessee and it varies from Rs. 15 to Rs. 137 per month for the whole year. It has been incurred for the tea etc., for the clients of the assessee. In our view on the facts of the case, the judgment of the Punjab and Haryana High Court in the case of Nadu Shah Kapoor and Sons (1980) 14 CTR (P and H) 77 (1980) 122 ITR 972 (P and H) is applicable and, therefore, the amount cannot be considered as entertainment expenditure. It is deleted. 8. The remaining grounds were not pressed before us, and therefore, they are considered as withdrawn. 9. Appeal allowed in part.
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1980 (12) TMI 86 - ITAT CHANDIGARH
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... ... ..... the loss would be shared in the same ratio as the profits would have been shared by the four partners. The allocation of 5 paise in a rupee to charity is not by way of allocation of share to a partner but only distribution of the profits providing for a reservation in favour of charity to that extent. 19. We find that in so far as the facts of the case before us are concerned they are in favour of the assessee because there is no provision that the loss will be debited to the charity account. In fact, from a reasonable construction of the deed, it appears that there is only distribution of profits in which charity takes a part and not in losses. Therefore, in our opinion, charity has not been made a partner and on that account as well, registration could not be refused. Since in our considered opinion, registration could not be refused on any of the grounds taken by the ITO, the AAC was right in directing him to grant registration to the assessee firm. 20. Appeal dismissed.
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1980 (12) TMI 85 - ITAT CALCUTTA-C
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... ... ..... s. 139(3) of the IT Act, 1961, we are of the opinion that the assessee who filed Form No. 6 on 27th July, 1978 seeking extension time till 31st Dec., 1978 for filing the return of income for the asst. yr. 1978-79 was in the order any course entitled to carry forward. The return was filed on 20th Oct., 1978. The assessment order does not indicate any initiation of penalty proceedings under s. 271(1) (a) though the ITO writes that Form No. 6 for extension of time was not filed. Be it as it may, it is a fact that such a petition was filed. Hence, the provisions of s. 139(3) has no application to the facts of the case. 5. Even otherwise, the decision of the Calcutta High Court is in favour of the assessee. The Deptl. Rep., however, mentions to us that an appeal has been preferred against the said decision but the decision is binding upon us. In the circumstances, we uphold the first appellate order and refuse to interfere in the matter. 6. In the result, the appeal is dismissed.
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1980 (12) TMI 84 - ITAT CALCUTTA-A
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... ... ..... is a partner. This letter, of course, was written after the ITO noticed that the notional income from the property was not disclosed. The ITO himself was able to find out the details only while scrutinising the accounts of the partnership firm for the asst. yr. 1975-76. The assessee would not have thought of concealing his income from the house property when he had disclosed all the details regarding the purchase of the house property and the property was in his occupation. This, in our view, shows the bonafides of the assessee. (E) Thirdly, the income from property is very small compared to the income on which the assessee is assessed year after year. The tax on the income from house property in self-occupation will be very negligible and we are sure that the assessee never have thought of avoiding tax on the small notional income. 4. Thus, we hold that this is not a fit case for levy of penalty and the penalties levied for accordingly cancelled. 5. The appeals are allowed.
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1980 (12) TMI 83 - ITAT CALCUTTA-A
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... ... ..... sel for the assessee categorically made a statement at the bar that such contracts were made available to the ITO in the course of assessment proceedings. If such contracts are available on record on the Supreme Court decision can be easily applied in order to find out whether there is a mistake apparent from the record. Since the fact whether the contracts were on record or not is in controversy, we have no alternative but to direct the ITO to find out this aspect specifically. If he finds that the contracts are available and if the terms similar to those in the contracts considered by the Supreme Court in the aforesaid case, the ITO can easily pass a necessary rectification order. Otherwise it will be a matter of debate regarding the factual position and that cannot be a matter for decision under s. 154. The orders of the authorities below are, therefore, set aside. The matter is restored to the file of the ITO. 5. The appeal is treated as allowed for statistical purposes.
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1980 (12) TMI 82 - ITAT CALCUTTA-A
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... ... ..... that what s. 212 (3A) enjoins is that the assessee must file the revised estimate if the difference in the advance tax is more than 33-1/3 per cent. But there is no bar for filing a revised estimate even if the difference is less. In our view, the matter is not free from difficulty. It requires some debate. Once we find that the matter is not free from argument and debate then it is completely outside the purview of s. 154. It is well settled that only glaring mistakes are rectifiable under s. 154. We are sure that the so called mistake pointed out by the assessee in the order of he ITO charging interest under s. 217A is not a mistake apparent from the record. In fact, the decision of the Tribunal relied on by the learned counsel for the assessee also shows that it requires elaborate argument. Thus, we hold that the applications filed by the assessees under s. 154 have been rightly not entertained. We uphold the orders of the authorities below. 5. The appeals are dismissed.
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1980 (12) TMI 81 - ITAT CALCUTTA-A
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... ... ..... roduced before him and he had actually gone through the same. Therefore, the extent of agricultural income shown in the original memorandum book cannot be disputed or denied. In fact, the ld. AAC had also dislodged the finding the another concern M/s. J.K. Iron and Steel Co. had incurred loss in agricultural operation by pointing out that the concern had actually earned profit but on account of allowance of depreciation not loss was sustained. Moreover, the acceptance of income from agricultural operation shown by the assessee in subsequent years by the Revenue also cannot be ignored. Therefore, we are of considered opinion that the income from agriculture shown by the assessee should be accepted and the assessment of a portion thereof as income from undisclosed sources in unwarranted in view of the facts and circumstances of the case especially by findings of fact given by the AAC in his order dt. 1st June, 1975 with which we agree. 10. In the result, the appeal in allowed.
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1980 (12) TMI 80 - ITAT CALCUTTA
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... ... ..... nses. The assessing officer disallowed Rs. 2,500 to cover inadmissible and possible leakages and unvouched and unverifiable items. On appeal, the disallowance was confirmed. Keeping in view our decision in respect of this item, the disallowance is confirmed as it is quite reasonable in view of the increased claim this year. 18. The next ground is against disallowance of Rs. 2,000 out of telephone expenses. The assessing Officer has disallowed Rs. 2,000 out of Rs. 8,900 for the personal use by the partners and this was reduced to Rs. 1000 in appeal. Therefore, the dispute relates to disallowance of Rs. 1,000 and not Rs. 2,000 as claimed in the grounds of appeal. Keeping in view our decision on this point in the earlier years, the disallowance is confirmed. 19. No other ground has been urged at the time of hearing. 20. In the result, the appeal, for the asst. yrs. 1972-73 and 1974-75 are allowed while the appeals for the asst. yrs. 1975-76, 1977-78, 1978-79 are partly allowed.
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1980 (12) TMI 79 - ITAT CALCUTTA
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... ... ..... d on the amounts borrowed by it from the firm. The above discussion covers the arguments advanced before us. 10. The next question is about the rate of interest. The assessee claimed to have paid 24 per cent interest. We find that the firm is also buying the same rate of interest to its creditors. In fact, we have found that the firm has borrowed money only for the purpose of transmitting the same to the assessee-company. The same rate of interest is paid by the firm to its loan depositors and financiers and is charged by the firm from the company. Therefore, we see no reason to reduce the rate of interest from 24 per cent. 11. There are two other small disallowances. Rs. 1,000 was disallowed under the miscellaneous expenses and Rs. 2,000 under the travelling expenses. These were routine disallowances for the lack of details and proper vouchers. Having regard to the smallness of the disallowance we see no reason to interfere. 12. In the result, the appeal is allowed in part.
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