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Showing 81 to 100 of 236 Records
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1981 (1) TMI 179 - HIGH COURT OF KARNATAKA
Company when deemed unable to pay its debts ... ... ... ... ..... for the claim made by the petitioner. To decide the question as to what sums would be due in the ultimate analysis is not possible in this summary proceeding. No doubt, the fact of the issuance of the cheques and the same being dishonoured has been established. That, however, has been explained by the 2nd respondent. In any event, I am satisfied, prima facie, that it is a matter which can more appropriately be agitated in a properly framed suit in a civil court than be agitated in this summary proceeding as to the liability of the respondents. This is not a fit case in which this court should exercise its discretion under section 433 of the Act and proceed to make an order for the winding up the 1st respondent-company. Therefore, the petition is rejected with liberty reserved for the petitioner to recover the sums from the respondents in a properly framed suit in a civil action in accordance with law. But, in the circumstances of the case, there will be no order as to costs.
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1981 (1) TMI 170 - ITAT NAGPUR
Reassessment, Information ... ... ... ... ..... for the assessment years 1974-75 and 1975-76 is valid. 9. The points of difference stated are 1. Whether, in the facts and circumstances of the case, the AAC was justified in holding that the Supreme Court s decision in the case of Krishna Prasad constituted valid information for the purposes of section 17(1)(b) for the assessment years 1974-75 and 1975-76 ? 2. Whether, in the facts and circumstances of the case, the AAC was justified in upholding the orders passed by the WTO by reopening the assessment under section 17(1)(b) for the assessment years 1974-75 and 1975-76 ? 3. Whether a decision of the Supreme Court or the High Court, whether preceding or succeeding, is information for the purpose of section 17(1)(b) or only the succeeding decision ? My answers to all the three questions are in the affirmative. The result is that I agree with the learned Judicial Member. 10. The decision will now go to the Division Bench for deciding the appeals according to the majority view.
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1981 (1) TMI 167 - ITAT NAGPUR
Draft Assessment Order, Reference To IAC ... ... ... ... ..... ng it, it was an outstanding issue between the assessee and the ITO. The assessee had every right to appeal to the Commissioner (Appeals) in respect of this claim for additional allowance. We, therefore, see no reason to interfere with the order of the Commissioner (Appeals) entertaining the assessee s appeal on this ground and directing the ITO to deal with it on merits. In our opinion, there is no substance in the objection on behalf of the revenue on the basis of the Supreme Court ruling in the case of Gurjargravures (P.) Ltd. The dictum of the Supreme Court in the aforesaid case has no application to the facts of the present case whatsoever. Needless to say that in the circumstances, the Commissioner (Appeals), direction directing the ITO to examine the claim on merits was the only proper direction which perhaps he could give. It is fair and just and calls for no interference. The order of the Commissioner (Appeals) on this issue is confirmed. 13. The appeal is dismissed.
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1981 (1) TMI 164 - ITAT MADRAS-D
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... ... ..... . The first appellate authority directed the allowance by a separate order under s. 155(13) after recognition. Since recognition has now been received, we would direct the allowance even in pursuance of this order. 9. The last ground relates to the claim of Rs. 34,006 being money kept apart out of sale proceeds of molasses for creation of adequate storage facilities for molasses under directions issued by the Central Government under Molasses Control (Amendment) Order, 1972 dt. 5th Feb., 1972. The amount was found to be admissible following the rationale of the decision of the Supreme Court in CIT vs. Tollygunge Club Ltd. (1977) CTR (SC) 195 (1977) 107 ITR 776 (SC) as held by this Tribunal in the case of another Sugar Mills in ITA No. 1675 (Mds)/76-77 dt. 31st Aug., 1977. Since the facts are the same, we have to dismiss the departmental appeal on this point also for the same reasons. 10. In the result, the assessee s appeal is allowed and the departmental appeal is dismissed.
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1981 (1) TMI 162 - ITAT MADRAS-D
Deemed Wealth, Gifts Through Book Entries ... ... ... ... ..... ied that neither the letter nor the spirit of section 4(5A) can come in the way of our allowing this appeal. As pointed out by the learned departmental representative, section 4(5A) seeks to counter tax avoidance. Here is a case where the debt owed by the son-in-law to a firm is practically taken over by the donor without consideration and there is nothing to suggest that any tax avoidance is involved. We have merely to point out that the disputed assessment in the assessee s case merely takes the assessee s wealth to Rs. 1,10,605 after the addition of Rs. 1 lakh (sic). The net wealth in the hands of the son-in-law is slightly larger. No tax avoidance could have been intended under these circumstances. Hence, in any view, we find that there is no case for the addition. It is, accordingly, deleted. Since the wealth goes below taxable limit after the deletion, the assessment is annulled. 5. In the result, the appeal is allowed in the manner indicated in the preceding paragraph.
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1981 (1) TMI 160 - ITAT MADRAS-C
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... ... ..... st of the partner in a firm is a movable property and, therefore, there is no question of application of s. 5 exemption. What appears to us is that the question whether it is movable or immovable is irrelevant for the purpose of s. 5(1) (iva) of the WT Act. It is to be noted that the exemption of agricultural lands u/s 5(1) (iva) of the WT Act is given not as a deduction from the interest of the partner in the firm which may be movable property. The agricultural land is not included in the net wealth only because the assessee is the owner of agricultural land and such, agricultural lands owned by him to a certain extent of Rs. 1,50,000 is given exemption from inclusion in the net wealth. 15. So for these reasons, the two appeals of the assessees are allowed. The WTO is directed to revise the two assessments on the basis that agricultural land belongs to the assessees within the meaning of s. 5(1) (iva) of the WT Act to grant exemption of Rs. 1,50,000 to each of the assessees.
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1981 (1) TMI 158 - ITAT MADRAS-B
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... ... ..... ound that the assets in question belong to the firm and not to the assessee. The ld. Deptl. Rep. deplored the consequences of having two different views, one for general law that the firm is not a separate legal entity and the taxation law holding it as such. He pointed out that Revenue loses both ways, in the sense that the tax payer succeeds by quoting one or other proposition and avoiding liability thereby. Probably it is so. Choksi Committee no doubt pointed out to the situation and wanted s. 47(ii) and s. 49(1)(iii)(b) to be suitably amended, but it is not for us to attempt to plung loopholes, if any, in law. The view we have taken is in consonance with established law and we have no doubt that the departmental appeal has to be dismissed. In the view we have taken, it is as not necessary to go into the further question to the right of the ITO to adopt a higher fair market value and the correctness or otherwise of such valuation. 6. In the result, the appeal is dismissed.
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1981 (1) TMI 157 - ITAT MADRAS-B
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... ... ..... S. Rathinam gave Rs. 50,000 each to Shri S. Manickam (alleged retiring partner ) by debit to their accounts and credit to him. This shows that even after giving five buses subject to liabilities mutual adjustment of rights required that he should be paid, though they have described the payment as (amount foregone) in the accounts. This shows that the settlement of accounts required payment of assets exceeding liabilities besides cash. Hence, even in the narrows view sought to be conversed by the ld. Deptl. Rep., purportedly on the alleged finding of this Tribunal, we are unable to find in favour of the Revenue. Actually, as pointed out earlier, it was a case of actual dissolution and even if it is construced as a case of retirement, it is a case of adjustment of rights of partners inter se and not a sale by firm to partner. In any view of the matter, the assessee s appeal on this point not to be allowed. Relief due Rs. 1,82,841. 6. In the result, the appeal is partly allowed.
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1981 (1) TMI 152 - ITAT MADRAS-B
Loss, Carry Forward And Set Off Of Business Loss ... ... ... ... ..... ssee s case, since for the preceding assessment year 1976-77, in which the business ceased, there was only positive income and no loss. In the present case, the assessee had sold the assets of the business and the profit under section 41(2) is assessed as the income of the business only by virtue of the Explanation to section 41(2) which enjoins that the provisions of section 41(2) shall apply as if the business is in existence in the accounting year in which the sale took place. Thus the presumption of the business being in existence is only for the limited purpose of applying section 41(2) and cannot be extended to section 72(1), which requires that the business should have been actually carried on by the assessee. In the above view of the matter, we disagree with the Commissioner (Appeals) and would hold that the brought forward loss of the earlier years cannot be set off against the profit under section 41(2) for the assessment year 1977-78. The revenue s appeal succeeds.
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1981 (1) TMI 149 - ITAT MADRAS-A
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... ... ..... of the assessee that the petrol engine had become damaged and so there was necessity to replace it with some other engine. The assessee thought it proper to replace the old engine with diesel engine. No doubt the written down value of the car was much less. But the diesel engine was fitted because the old petrol engine had become defective. It is only a case of replacement and not a question of getting any new asset. We had gone through the Tribunal s decision in ITA No. 1709/Mds/78-79 decided by the Tribunal and we agree with the findings given therein. There is also the decision of the Gujarat High Court reported in (1977) 108 ITR 14 (Guj) is in favour of the assessee. The fact in the case relied on by the Department namely that case reported in (1968) 67 ITR 428 (AP) is distinguishable. 7. Following the prior Tribunal s decision and relying on the Gujarat High Court decision we find this point in favour of the assessee. 8. In the result, the Department appeal is dismissed.
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1981 (1) TMI 148 - ITAT MADRAS-A
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... ... ..... s. CIT (1975) 27 ITR 34 (SC). It is also possible to take the view that the payment is made at the inception of the firm as part of the capital outlay. It can also be considered to be a payment for purchase of trade marks or goodwill. In either case, it cannot be revenue expenditure. The decision of the Supreme Court in the case reported in Empire Jute Co. Ltd. vs. CIT (1980) 17 CTR (sc) 113 (1980) 124 ITR 1 (SC) rests on facts, which as pointed out by the learned departmental representative, are easily distinguishable. In that case, it was the finding of the Supreme Court that the outlay was part of the cost of operating the profit earning apparatus . It is not so in assessee s case, where the outlay is for part of setting up the profit earning apparatus . In any view of the matter, we find no merit in assessee rsquo s case. The appeal on this point fails. 11. In the result, the appeal for asst. yr. 1972-73 is partly allowed and the appeal for asst. yr. 1973-74 is dismissed.
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1981 (1) TMI 145 - ITAT JAIPUR
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... ... ..... mission to the partnership. On these facts, the Tribunal found that agreement of partnership with the two new partners was not without consideration and, therefore, the question of any gift could not arise. The Tribunal, therefore, observed in Para 5 that It is clear that there was no transfer of any profit without consideration. As a matter of fact, there is no material on record to show that increase in share of Shri Ramesh Sharma and admission of Shri Suresh Sharma and Shri Naresh Sharma as partners in the firm was without consideration. 6. On these facts, the Tribunal held that there was no gift within the meaning of s. (4)(1). There being a clear finding of fact that agreement was not without consideration. We hold that no question of law arise from the finding of the Tribunal. It is self-evident from the finding of the Tribunal that there was no gift within the meaning of s. 4(1). 7. For the reasons, we reject the contention of the Revenue. The application is dismissed.
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1981 (1) TMI 144 - ITAT JABALPUR
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... ... ..... of some stock cannot be ruled out and that the stock of Rs. 16,000 which was available with the assessee as per the stand taken by him for the asst. yr. 1976-77 while it was seen that the authorities below have not considered this aspect of the matter while making the addition of Rs. 23,308. This availability of stock of Rs. 16,000 is further supported by the assessee for the year under consideration also. If there was no stock how the assessee could be said to have earned income of Rs.7,620 in the asst. yr. 1974-75, Rs. 8,960 in the asst. yr. 1975-76, and Rs.8,022 for the first 6 months of the asst. yr. 1976-77. Besides the above, the authorities below have also failed to consider the savings of Rs. 12,000 in the three earlier years including the assessment year under consideration. Thus on the totality of the circumstances, I sustain an addition of Rs. 7,000 as assessee s income from undisclosed sources. 5. In the result, the appeal filed by the assessee is partly allowed.
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1981 (1) TMI 143 - ITAT HYDERABAD-B
Sales Tax, Setting Up, Trading Liability ... ... ... ... ..... he subsidy in the first case according to the Board s circular was capital in nature, the subsidy in the present case received would also partake of the same nature. All that we would say is that the decision of the Board also about the nature of the subsidy in such cases is in conformity with the conclusion which we have independently arrived at on the facts of the present case. 34. We have, therefore, to come to the conclusion that the ratio of the judgment of the Andhra Pradesh High Court in the case of Panyam Cements and Mineral Industries Ltd. will not be applicable in the present case for the reasons which we have set out in the course of our order relating to the different aspects thereof. The assessee succeeds in the contention that the amount of Rs. 14,665 received from the Government of Andhra Pradesh will not fall to be included in the total income. 35. The appeal is allowed in part, as one other ground urged relating to grant of development rebate was not pressed.
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1981 (1) TMI 142 - ITAT GAUHATI
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... ... ..... levied solely on the basis of the reasons given in the original order of assessment . 8. On the facts of the assessee s cases, there is no material vis-a-vis the penalty orders to warrant or justify the imposition of penalty on the assessee, we hold so, with the result that the impugned orders of the AAC, Lucknow Range, Lucknow, for all the assessment years under appeal are upheld, of course, concurring with the reasonings and conclusions arrived at by the AAC in those orders. 9. Before parting with the case, we will like to place it on record that we have since derived the maximum benefit from the case law since relied upon before us by the ld. Authorised Rep. of the parties and which we have gone through very carefully and with utmost respect. The ratio of the decision of the various case laws cited before us by the ld. Authorised Rep. of the parties has no bearing on the facts of the assessee s case. 10. In the result, all the appeals by the Revenue fail and are dismissed.
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1981 (1) TMI 141 - ITAT DELHI-D
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... ... ..... the basis of the information supplied by the District Agriculture Officer, the ITO made certain calculations and came to the conclusion that the net income should have been Rs. 22,652 as again Rs. 39,495. The ITO, therefore, treated the sum of Rs. 16,843 as the assessee rsquo s income from undisclosed sources. on appeal, the CIT (A) reduced the addition to Rs. 15,000. We have dealt with a similar matter in our order in ITA No. 3739 (Del)/1979 dt.15th Jan., 1981pertaining to the assessment year 1974-75 and for the reasons stated therein we delete the addition of Rs. 15,000. 12. The next ground relates to the disallowance of a sum of Rs. 500 out of rasoi expenses and another sum of Rs. 500 out of miscellaneous expenses. We are not inclined to interfere with these disallowances. 13. The last ground regarding the disallowance of 1/5th expenditure on motor-cycle and depreciation was not pressed at the time of hearing of this appeal. 14. In the result, the appeal in partly allowed.
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1981 (1) TMI 140 - ITAT DELHI-D
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... ... ..... product of the sugarcane used had any saleable value and his submission was that this bye-product was absolutely useless and had to be thrown away. If that is the correct position, then no addition can be made for using such bye-product by way of manure in the agricultural farm. It is possible that some labour may have been used in the agricultural farm occasionally and the assessee s truck may also have been used but the assessee is fully compensated by the use without any interest of the money belonging to the three partners which is left with the assessed firm. In such circumstances, therefore, we feel that no addition is required to be made in the case of the firm on the ground that the expenses shown by the partners for earning the agricultural income are comparatively less than what they should be. We would thus delete even the addition of Rs. 10,000 sustained by the AAC. 14. In the result, ITA No. 3739(DEL)/l979 is partly allowed and ITA NO. 264(DEL)/1980 is dismissed.
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1981 (1) TMI 139 - ITAT DELHI-A
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... ... ..... that there has been a upward trend in the value of the land and cost of construction does not appear to be of any assistance to them for the reason that the property in question being wholly let-out and subject to Rent Control Act, its rent cannot be enhanced by the landlord except in accordance with the provisions of the Rent Control Act. 12. If we determine the value of this property by rent capitalisation method and exclude the reversionary value and the value of the unutilised portion then its value will come below Rs. 98,200. The reason is that it is common ground that the net annual letting value is Rs. 2,328.54 only. Even if it is multiplied by a multiple of 20 its value comes less than the value accepted as reasonable by the assessee itself as stated in the grounds of appeal. 13. Having regard to all the facts and circumstances, we direct the WTO to take the fair market value at Rs. 98,200 for each of the years under appeal. 14. In the result, the appeals are allowed.
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1981 (1) TMI 138 - ITAT DELHI-A
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... ... ..... his order. Hence, this appeal before us. 4. We have heard the ld. Deptl. Rep. and the ld. counsel for the assessee. In the instant case the two firms had separate accounting years and there is no justification why the income for a period of 17 months should be clubbed while making the assessment when the normal period of accounting is 12 months. That apart when three partners retired, the remaining one partner, Shri Man Mohan Singh could not constitute the firm, so the firm automatically came to an end. When he took into new partners, it became a new firm. Thus, there was no change in the constitution of the firm but successions. The Full Bench ruling of the Allahabad High Court in the case of Badri Narain Kashi Prasad vs. Addl. CIT 1978 CTR (All) (FB) 390 (1978) 115 ITR 858 (All) (FB) is also an authority for the proposition that two separate assessments should be made. The order of the CIT (Appeals) is, therefore, correct and upheld. 5. The departmental appeal is dismissed.
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1981 (1) TMI 137 - ITAT COCHIN
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... ... ..... s are close relatives of the partners and therefore the provisions of s. 40A (2) would be applicable. Even if the entire amount is Bona fide business expenditure, the ITO is entitled to know whether these payments are excessive or unreasonable having regard to the fair market value of the services rendered by them. The ITO merely mentioned s. 40A (2). He did not go into the details because according to him it has to be disallowed under s. 37 itself. The AAC found it was allowable under s. 37. Then it was necessary for him to have gone into the question of application of s. 40A (2). This he has not done. We will, therefore, set aside this part of the AAC s order since the ITO himself has not considered the market value of such services rendered by other persons which is necessary to establish that the payment is excessive or unreasonable. We set aside the order and direct the ITO to consider the issue under s. 40A(2). 8. For statistical purposes, the appeal is partly allowed.
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