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Showing 41 to 60 of 155 Records
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1981 (11) TMI 158
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... ... ..... of this section are satisfied. Sale of old ornaments to dealer is not taxable under the Act. Purchasing dealer that is, the assessee admittedly did not sell them in the same form and condition. The purchases made by it therefore became taxable. The learned counsel for the assessee placed reliance on a recent notification where old ornaments have been treated as bullion and has urged that this indicates the legislative intent therefore even in the year in dispute the old ornaments should be understood as bullion. Admittedly the notification is not retrospective in nature. It is therefore difficult to accept this contention. In the result this revision succeeds and is allowed. The order passed by the Tribunal in respect of turnover of ornaments under section 3-AAAA is set aside. A copy of this order shall be sent to the Tribunal to take action under section 11(8) of the Act. The Commissioner of Sales Tax shall be entitled to costs which is assessed at Rs. 50. Petition allowed.
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1981 (11) TMI 157
Oppression and Mismanagement, Company when deemed unable to pay its debts ... ... ... ... ..... ajority. So far as the allegations contained in para. 12(g) and (h) are concerned, since he was not allowed to participate in the conduct of the affairs of the company on the allegation that he had vacated the office as director of the company, he had no option but to give vent to his feelings by writing letters to various authorities with a view to preventing the said directors from acting in a manner which he considered to be prejudicial to the interest of the company. It is not possible in the circumstances to say that he did not act in good faith and that his intention was to oppress the majority. I am, therefore, of the opinion that even on the basis of these allegations it is not possible to conclude that a case for the exercise of jurisdiction under section 397 of the Act is made out. In the result, therefore, I dismiss the company petition as well as the appeal from order but in the facts and circumstances of the case make no order as to costs in both the proceedings.
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1981 (11) TMI 156
Oppression and Mismanagement – Right to apply under section 397 and 398, Power of Tribunal on application under sections 397 and 398
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1981 (11) TMI 141
Compromise and arrangement, Amalgamation ... ... ... ... ..... t. I am unable to see, not having commenced any proceedings in furtherance of the scheme of amalgamation of the company in the State of Maharashtra, the propriety of M/s. Spraymetal P. Ltd. to intervene as if they can under the provisions of the Companies Act, compel the amalgamation, which is not contemplated in the scheme of the Companies Act. If there is any breach of agreement between M/s. Spraymetal P. Ltd. and the applicant, M/s. Suri and Nayar, that breach of the agreement must be agitated in another appropriate forum for such remedies as may be available to M/s. Spraymetal P. Ltd. I would not hesitate to hold that in the position explained above M/s. Spraymetal P. Ltd. has no locus standi to intervene in this application. In the result, the report of the chairman is recorded and the Company Application No. 1763/81 is closed. Company Application No. 1801/81 does not survive for consideration any longer as it has become infructuous and the applicant has no locus standi.
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1981 (11) TMI 140
Winding up – Statement of affairs to be made to Official Liquidator ... ... ... ... ..... sonable excuse. P.W. 1 has not even gone to or visited the registered office and he has admitted that he cannot say who was in possession of the property of the company at the material time. P.W. 1 also stated that he could not say from whom the village officer got possession of the records and accounts of the company. There is nothing in the evidence of P.W. 1 to show or indicate that any notice or information was given to the accused persons that the records and accounts of the company were available with the official liquidator since June 13, 1978. On due consideration of the entire evidence in this case, it cannot be said that, the prosecution has succeeded in proving that the failure to submit the statements are contemplated under section 454 of the Act was without reasonable excuse. It cannot also be said that the accused had no reasonable excuse in this regard. The result is that the accused are entitled to the benefit of reasonable doubt and they are hereby acquitted.
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1981 (11) TMI 127
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... ... ..... he assessee the firms incurred losses in the earlier years and even during the asst. yr. 1972-73 the firms rsquo accounts could not be closed till 1974 due to disputes between the partners. Admittedly the firms rsquo returns were filed only in 1974. So in the September, 1971 the assessee could have foreseen the correct income from two firms. If in the asst. yr. 1970-71 there was loss in the firms the estimate for 1972-73 at Rs. 35,000, cannot be stated to be not genuine. It may be that the assessee could have filed a provisional estimate in March, 1972. However, as the assessee asserts that the accounts of the two firms were finalised only in 1974 he could not have filed the estimate in March, 1972. Under such circumstances we are satisfied that the estimate filed by the assessee for the asst. yr. 1972-73 on 15th September, 1971 is not an untrue estimate. Hence no penalty under s. 273(a) is exigible. 5. In the result, the appeal is allowed and the penalty levied is cancelled.
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1981 (11) TMI 125
Income, Chargeability Of ... ... ... ... ..... the pensioner from the UN was held to be exempt as in Narula s case, it applies to a beneficiary also, because different meaning to a word cannot be given, one for the purpose of taxation and the other for the purpose of exemption. On going through the decision of the Calcutta Bench of the Tribunal in Depali Goswami, we find that the facts of the present case are identical. Hence, following the reasonings stated therein, we confirm the findings of the AAC on the merits of the case. 6. The learned counsel for the assessee urged before us that in respect of the first four years, the assessment years 1973-74 to 1976-77, the reopening of the assessments under section 147(b) of the Act is bad. Since the AAC himself had not gone into this question, we do not give a finding on such an issue. If unfortunately the assessee has to fail on merits, then the question of the validity of the reopening of assessments can be gone into. 7. In the result, the departmental appeals are dismissed.
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1981 (11) TMI 123
Succession To Business ... ... ... ... ..... ch made the Corporation liable for such a large demand. Such an order which offends the principles of natural justice is invalid and illegal. We have, therefore, to uphold the order of the first appellate authority cancelling such an order, though for reasons which are different from the one which prompted him to cancel it. In the view we have taken, it is not necessary to consider the various other grounds taken by both sides. We have no doubt that the ITO will probably like to consider them before the issue of notice of his intention to make the Corporation liable and if he chooses to issue such a notice, he will give a reasonable opportunity to the Corporation and consider its objections. We have also no doubt that he would expeditiously take parallel steps to see the legitimate tax demand is sought to be realised from the beneficial owner of the business so that the necessity of making a third party liable may possibly not arise. 5. In the result, the appeal is dismissed.
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1981 (11) TMI 121
Deductions, Profits And Gains From Newly Established Industrial Undertaking ... ... ... ... ..... laim or allowance of depreciation on some other consideration in earlier years. Remedial action, which is justified, has to be against the error and not against a correct allowance. Since there is no material to contradict the finding of the first appellate authority that these machineries were also utilised only during the assessment year 1971-72 for manufacturing new items of grinding wheels, we have to agree with the first appellate authority that this is also not a valid ground for rejection of the relief. We, therefore, uphold the order of the first appellate authority holding that the bonded expansion department is a new industrial undertaking eligible for relief under section 80J. The appeals fail on this point. Since this is the only point for the first four years, the appeals for the first four years, viz., assessment years 1971-72 to 1974-75, stand dismissed. 7 and 8. These paras have not been printed here as they deal with minor issues not covered in the synopsis.
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1981 (11) TMI 119
Minor Child ... ... ... ... ..... re, that in all such cases covered by the various clauses, such income has to be included in the total income of the individual concerned, even though he or she is not in receipt of the income and it arises to some other person. According to these provisions, therefore, in the present case of the assessee even though the disputed income arises to the assessee it has to be included and assessed in the assessment of his wife, as it is the only way of taxing the income under the provisions of the Act. The assessee has, therefore, every right to question the inclusion of the amounts in his total income notwithstanding the fact that the income in fact arises to him. The contention of the departmental representative that the assessee cannot dispute the addition and it is for the ITO while making the assessment on his wife, should invoke the provision, has no merit. We, therefore, accept the assessee s contention and direct deletion of the disputed addition. The appeals are allowed.
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1981 (11) TMI 116
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... ... ..... his previous year itself. The question whether capital gains, if any, was taxable as short term or long term capital gains also remained for consideration. We therefore, deem it fit to set aside the order of the AAC on this point alone and restore the appeal to his file for fresh diposal in accordance with law on the merits of the case. 11. There is a further ground regarding the taxability of certain receipts from the liquidator of Tirunelveli Motor Bus Co. P. Ltd. it is stated that the question is to be answered in favour of the assessee in view of the decision of the Madras High Court in the case of CIT vs. T.S. Rajan(1979) 10 CTR (Mad) 179 (1980) 125 ITR 207 (Mad). But the order of the AAC is bereft of any facts to which the proposition of law could be applied. Since we are restoring the appeal to his file suffice it to say that he shall make a speaking order in respect of this matter also. 12. In the result, the appeal is treated as allowed for statistical purposes only.
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1981 (11) TMI 115
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... ... ..... in the dissolution agreement is essentially a question of fact. Hence question No. 1 does not arise as it does not give rise to the question of law. Question No 2 does not arise because it is academic. Question No. 2 seems to raise the issue whether there could be profit u/s 41(2) when there is retirement of a partner from the firm. The observation that there would be no such taxable profits even in the event of retirement is an alternative finding and therefore academic. Question No. 3 is a general one on the finding that there has been a dissolution there could be no doubt that there is no taxable profit u/s 41(2) since it is well settled by the Supreme Court that distribution of assets consequent on dissolution cannot give rise to taxable profits u/s 41(2). Hence question No. 3 also cannot be referred because it seeks to raise a question the answer to which well settled by the authorities of the Supreme Court. Under the circumstances the reference application is dismissed.
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1981 (11) TMI 110
Reassessment, Information ... ... ... ... ..... pen the assessment under section 147(b) validly. The assessee also sought to dispute the determination of the income in the fresh assessment on merits and how the ITO has sought to change the entire basis. We are, however, not in a position to adjudicate on the merits, because the limited question before us in this appeal is confined to the determination of the validity of the reassessment and deciding as to whether the AAC was justified in cancelling it as invalid. For the reasons already stated, we accept the contention of the department and set aside the order of the AAC and restore the appeal to him for fresh disposal on the merits of the assessment and it is open to the assessee to agitate all its claims in respect thereof in the appeal before him. The order of the AAC is, accordingly, set aside and the appeal is restored to him for a fresh disposal after giving due opportunity to the parties and in accordance with law. 6. In the result, the appeal is treated as allowed.
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1981 (11) TMI 107
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... ... ..... hin the time allowed by the law but are only unable to do so due to non-availability of registers with them. The position of law as canvassed by the assessee has been restated in other cases also cited by the ld. Rep. For the assessee. The law in this regard is now well settled that in such circumstances there is transfer of both legal title and beneficial interest notwithstanding the fact that transferor may be unable to exercise his full rights vis-a-vis the company as a registered share holder pending registration. Reliance placed by the ld. Deptl Rep, on a decision of this Tribunal which is in the context of the facts in that case could hardly be of any assistance to him. Hence, we are of the view that in the facts and in the circumstances of the assessee rsquo s case, ownership of the shares stand transferred during the year and that the assessee is entitled to the loss of Rs. 26,806.64 as claimed by him as long-term capital loss. 6. In the result, the appeal is allowed.
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1981 (11) TMI 106
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... ... ..... shown in the balance sheet as on 31st March, 1957 is false and is otherwise undependable. He only relies upon the assessed profit in the past which has wiped out, according to him, the book losses. For the reasons already stated, we find that the book losses are very real and neither the directors nor the general body could ignore the book losses which are very much part of the balance sheet of the company and declare profits merely on the basis of income-tax assessment orders. No doubt, this Tribunal had earlier consider itself bound by the assessed profits on the understanding of the law as prevailed at that time. The High Court found that the decision would depend upon the nature of addition and these have been looked into and the matter also reconsidered in the light of all the relevant facts. We have no hesitation in upholding the order of the AAC dt. 31st August, 1961 and dismiss the Deptl. appeal. The earlier order of the Tribunal dt 24th Feb., 1965 stands superseded.
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1981 (11) TMI 105
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... ... ..... re, accept the assessee lsquo s contention that the return was filed on 27th November, 1973 and what was filed on 9th March, 1976 was only a duplicate return. Therefore, the delay has to be computed not upto the date of 9th March, 1976 but up to 27th November, 1973. Even this delay is explained because the firm n which the assessee was a partner had filed its return of income only on 27th November, 1973 and since the assessee lsquo s income consisted on only share income, he could not file his return of income earlier than the firm rsquo s return. Therefore, the delay in filing of the firm rsquo s return is a reasonable cause for the delay in the submission of the return by the assessee. Moreover, penal action taken in the case of the other partner had been dropped by the Revenue. We, therefore, hold that the delay in filing of the return by the assessee was not without reasonable cause. The levy of penalty is, therefore, unjust and is hereby cancelled. The appeal is allowed.
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1981 (11) TMI 99
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... ... ..... undisclosed sources, no valid action could have been taken u/cl (b) of s. 147 by the ITO. Information u/cl (b) should not only be with regard to certain facts, but it should positively and definitely lead the ITO to have reason to believe that income had escaped assessment. Belief regarding escapement of income can be had by the ITO only when he has the information that capital gain had arisen from the sale of the truck and that the investment in the new truck was from the income from undisclosed sources. Such information not being there, we agree with Shri Sharma that action for re-opening u/cl (b) is invalid. We being firm on the view being taken on the legal objection, there is no need to go into the merits of the case. No authority has been shown by the revenue to support the order of the AAC that action taken u/cl (a) or cl. (b) of s. 147 overlapse and that can be sustained vice-versa. We, therefore, quash the reassessment order. 3. In the result, the appeal is allowed.
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1981 (11) TMI 98
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... ... ..... of an assessee to do so could not be made the only reason for disbelieving the genuineness of the credit. 7. In the present case, the assessee has done all that was in his power to establish the genuineness of the credit by producing the creditor, who had also confirmed the factum of the deposit. It is also not the case of the Department that the creditor is closely related to the partners of the assessee firm so that the statement given by the creditor should be disbelieved on that account Having regard to all the facts of the case, I agree with the view taken by the ld. Judicial Member that the assessee has established the genuineness of the credit from the third party. Accordingly, the ITO is not justified in treating the credit as the assessee rsquo s income from undisclosed source and also in disallowing the interest paid by the assessee on such credit. 8. The case will not go back to the Bench, which heard the appeal for final disposal in the light of the above opinion.
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1981 (11) TMI 97
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... ... ..... irm. That it was contended that the status of the assessee should be taken as a registrated firm. 13. The learned Departmental Representative Supported the order of the AAC. 14. We have considered the rival submissions. The AAC pointed out that the ITO rejected application of registration for the assessment year 1975-76 and on appeal is still pending before the AAC. The AAC was of the view that in case registration is granted for the assessment year 1975-76, the assessee firm shall be granted continuation of registration for this year. In our opinion the directions given by the AAC are quite correct. In addition to the directions given by the AAC we may point out that the ITO shall accept the status of the assessee as a firm. The question of registration was not examined by the ITO. We shall considered the application filed by the assessee in accordance with law. 15. In the result, the appeal is dismissed. For statistical purpose the cross-objection shall be taken as allowed.
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1981 (11) TMI 96
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... ... ..... terest on loan for purchase of the motor car was disallowed by the ITO at 1/2. Having regards to the facts of the case we are of the view that there is substance in this contention made on behalf of the assessee. The depreciation and interest paid to the Bank should be allowed to the extent of 1/3. 6. In respect of the depreciation on Scooter and Scooter expenses, the authorities below had disallowed 1/3 of that claim on the basis of the personal use of the partners. The assessee claimed for full allowance in respect of these two items as the scooter was used for the business purposes only. Having regard to the line of the business of the assessee it appears that the claim of the assessee is quite reasonable. This should be allowed in full. 7. The next ground is regarding disallowance of Rs. 2,000 from shop expenses. After hearing both the sides, we direct that the disallowance should be restricted to Rs. 1,000 only. In the result the appeal by the assessee is partly allowed.
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