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Showing 81 to 100 of 200 Records
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1981 (3) TMI 121 - ITAT GAUHATI
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... ... ..... the assessee from commission is about Rs. 41,000 and the disallowance has not been based by the ITO on the score any messing expenditure having been incurred on partners. The CIT(A) has observed that though the ITO has not mentioned in the assessment order specifically, a portion of the messing expenses was to be disallowed on the ground than those expenses contained in expenses of partners, but there is no material on record to warrant or justify such a finding. Simply because for an earlier year disallowance out of expenses has been made and the assessee has accepted the same, it is no ground for making or sustaining any disallowance, in respect of the assessment year under appeal, since every assessment year is a distinct and separate year and disallowance has to be made or sustained on the facts of each year s case. 6. In the result the disallowance of Rs. 11,478 sustained by the CIT(A) under the head Messing Expenses is deleted and the appeal by the assessee is allowed.
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1981 (3) TMI 120 - ITAT DELHI-D
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... ... ..... thus do not find any merit in the Revenue rsquo s appeal. 6. So far as the assessee s appeal is concerned, we are inclined to take the view that the rate of 10 per cent applied in this year is slightly excessive. It is not controverted before us that in the asst. yr. 1975-76 the assessee disclosed receipts of Rs. 2,28,611, on which the net profit declared at 10 per cent was accepted. The assessee has led evidence to show that there was substantial increase in the price of gitti in this year as compared to the last year and similar was the position in respect of asphalt. Keeping in view the facts and the attendant circumstances of this case, we feel that the rate of profit 8 per cent would be fair and reasonable. The income should be determined by applying this rate on the gross receipts of Rs. 6,43,797 after excluding the cost of material supplied by the concerned Department. 7. In the result, ITA No. 1402 (Del)/1980 is partly allowed and ITA No. 1566 (Del) 1980 is dismissed.
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1981 (3) TMI 119 - ITAT DELHI-C
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... ... ..... rgument is that as the assessee himself filed a revised return later declaring net wealth at higher figure which fell beyond the tax free slab, the assessee should be presumed to have known on30th June, 1971that he owned net wealth which was taxable. We are not inclined to agree. Revised return was filed some 3 years and 8 months after the filing of the original return and assessee s suggestion in that connection is that the revised return was filed only with the view that assessee might not have to face unnecessary proceedings to penalty for concealment on basis of lower estimate of the value of the assets in the original return. Assessee s suggestion in this regard cannot be said to be without force. We do not feel convinced that the delay of three months on assessee s part in filing the original return declaring net wealth within the tax-free slab was continuous so as to call for levy of penalty. We confirm the Appl. Commr s order. Department fails. 5. Appeal is dismissed.
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1981 (3) TMI 118 - ITAT DELHI-B
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... ... ..... BB binding the Valuation Officer ? Yes. In the light of the above decision of the Special Bench, it is clear that r. 1BB is applicable for determining the value of the house property in question. We have heard the Valuation Officer, Shri J.N. Sarkar, who appeared before us. The Valuation Officer or the Deptl. Rep. did not challenge the correctness of the working of the value of the property under r. 1BB as mentioned above. Since, however, the value declared by the assessee himself is more than the value worked out under r. 1BB, the former was rightly accepted by the AAC as fair and reasonable. The assessee would be entitled to further relief as he has not appealed against the order of the AAC and the Department appellant cannot be put in a worse position that it was at the time of filing the appeals. In view of this, the value declared by the assessee must be considered to have been rightly accepted by the AAC. 6. In the result, therefore, the Revenue s appeals are dismissed.
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1981 (3) TMI 117 - ITAT DELHI-B
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... ... ..... es) in respect of money not received by him because in the case of such non-trader, until he gets the money, it is not part of his income. So, on the strength of the above authorities we hold that the interest accrued under the decree became income of the assessee only upon the fruits of the decree was realised i.e. on the date of the sale deeds mentioned above. Until then, it cannot be said to be a realised income more so because the appellant is a non-trader and did not employ and method of accounting. For the above reasons, we hold that the argument that the accrued interest should be spread to the back years and that such of the interest which was accrued during the previous year relevant to the asst. yr. 1973-74 only can be brought to tax cannot be upheld. Consequently, we hold that the Department has every justification to collect income-tax on the amount of Rs. 28,697.55 ps. out of Rs. 75,000 addition made to the income by the ITO. 9. Thus the appeal is partly allowed.
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1981 (3) TMI 116 - ITAT DELHI-A
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... ... ..... 79 dt.10th April, 1980 wherein similar circumstances the assessee rsquo s claim u/s 154 was accepted. The ld. Deptl. Rep. Relied on the order of the authorities below. 4. We have carefully considered the rival submissions. In our opinion, the ITO should have accepted the assessee rsquo s application u/s 154 because while making the assessment u/s 143(1) he could not have disallowed the claim for bad debts amounting to Rs. 3,518 and Rs.14,856 claimed by way of shop-cum-lungar expenses. The disallowance of these items will not covered by the adjustments which the ITO can made while completing the assessment u/s 143(1). Similar amounts has been allowed by the ITO himself for the asst. yrs. 1976-77 and 1978-79 and this fact was not controverted before us the view that we are taking is supported by the view of the aforesaid order cited on behalf of the assessee. we thus direct that the addition of Rs. 14,856 and Rs. 3,518 should be deleted. 5. In the result, the appeal is allowed.
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1981 (3) TMI 115 - ITAT COCHIN
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... ... ..... e name and style of Sehgal Papers Ltd. with the intention of permanently residing in India. It is further pointed out that the assessee had taken up this alternative plea before the CIT (A) for the asst. yr. 1978-79 who directed the WTO to consider this question and for that purpose set aside the assessment For that assessment year the WTO by his order dt. 31st Dec., 1979 for the asst. yr. 1978-79 has accepted the claim of the assessee for exemption of a similar amount under s. 5(1)(xxxiii). Under these circumstances, we feel that the WTO should consider the claim of the assessee for the exemption of this sum of Rs. 2 lacs and odd under s. 5(1) (xxxiii). For this purpose, we set aside this assessment the appeal will be treated as allowed.
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1981 (3) TMI 114 - ITAT COCHIN
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... ... ..... record transactions as and when they take place and it was for the information of the assessee s partners alone. When entries are made in such books which are intended for the assessee s eyes alone, these entries record a correct transaction. If such books show receipt of loans, they have to be treated as loans only. There is no question of the assessee s money being passed off as loans in this case. The need for disguising the real nature of certain funds and showing them as loans from others is necessary only when such books would be inspected by tax officials. Those officials should not know the real character of those receipts. So, they are shown as loans. Such a necessity does not arise in books which are not meant to be seen by Govt. Officials. So, these entries reflect the correct position i.e. they are really loans. Therefore, the addition of Rs. 27,300 made by the ITO is clearly misconceived. The addition is deleted. 10. In the result, the appeal is partly allowed.
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1981 (3) TMI 113 - ITAT COCHIN
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... ... ..... ing the return under the notice issued by the ITO under s. 148 of the Act and ending with the completion of the assessment in the case of the assessee. We find that there is considerable merit in the argument advanced by the ld. Authorised representative. We accordingly direct that the penalty for the asst. yr. 1975-76 should recalculated by the ITO by taking the period of default as commencing from the expiry of the date allowed for furnishing the return under s. 139(2) or s. 148 of the Act in terms of the first notice issued by the ITO on this behalf. However, if such date falls before 28th Jan., 1976, that is, the date on which the assessment of the firm was completed by the ITO, the period of default shall be taken a commencing from 28th Jan., 1976. In either case, the period of default shall be taken too end on the date on which the assessment under s. 144 was made in the case of the assessee. 15. In the result, both the appeals filed by the assessee are partly allowed.
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1981 (3) TMI 112 - ITAT COCHIN
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... ... ..... rials before us show that the investment during this year was Rs. 13,210 in a building. He also at that time purchased a vehicle costing Rs. 19,671. These two amount to Rs. 32.881. the assessee has also some agricultural property which is also evidenced by the papers found in the search. These agricultural properties would be yielding him some income. Apart from that, if we make a further estimate of Rs. 8,000 as expenditure, the total income for this year would be again around about Rs. 40,000. Either way, we find that the estimate should not exceed this figure. 20. In view of the foregoing, we would much rather place our estimate on the former grounds of materials seized in the search and on that basis we would keep the estimate at Rs. 40,000 in respect of both the businesses of the assessee i.e. arrack as well as money lending business. This figure would be substituted for the figure of Rs. 70,610 fixed by the ITO in the assessment order. 21. The appeal is partly allowed.
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1981 (3) TMI 111 - ITAT CHANDIGARH
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... ... ..... oceedings. The ITO is justifying the second re-assessment on the ground that he has asked for and obtained the sanction of the Commissioner for the re-assessment of the proceedings. But this sanction could be given only if the Commissioner was fully satisfied. That there was a case of reassessment proceedings. 10. From the facts stated above, it is clear that even the Commissioner did not apply his mind properly to come to a conclusion whether there was escapement of income because the very reasons of the basis of which re-assessment earlier had been struck down by the AAC were taken against to initiate second reassessment proceedings. In our opinion, the case is therefore directly covered by the judgement of the Allahabad High Court in which the Hon ble Court has relied upon the judgement of the Supreme Court in the case of Rao Thakur Narayan Singh. The re-assessment proceedings are bad and as such were rightly annulled by the AAC. Her order is upheld. 11. Appeal dismissed.
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1981 (3) TMI 110 - ITAT CALCUTTA-E
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... ... ..... tuents cannot be treated as entertainment expenditure and has to be allowed as normal business expenditure. As regards the expensed on fruits given to some officers who were in the direct dealing with assessee s business, we are of the view that they cannot be disallowed as entertainment expenses. Such customary expenses are normal business expenses incurred in the carrying on of all types of business and cannot be disallowed by naming it as bribe. We, therefore hold that the offering of fruits not at a very lavish scale to persons connected with the assessee s business should be allowed as normal business expenditure. 17. The last ground is against the disallowance of interest under s. 139(8). The CIT (appeals) referred to the fact that the assessee has moved the ITO for waiver of interest. He therefore did not consider the claim of the assessee. Before us no facts have been placed regarding this matter and therefore, decline to interfere. 18. The appeal is allowed in part.
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1981 (3) TMI 109 - ITAT CALCUTTA-E
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... ... ..... s and the land which is not surplus the valuation should be made in a normal manner. In this connection r. 14(6) of the Estate Duty Rule has to be kept in view. It is not clear from the order of the lower authorities whether they had kept this rule in view while valuing the agricultural land. No finding has been given whether the case was covered under the proviso to that rule. As regards the land which is ultimately found to be surplus, the compensation which is payable under law has to be roughly determined and the value as on the date of death has to be taken having regard to the probable time which might elapse before such compensation is actually received. We, therefore, set aside the orders of the lower authorities on this question and direct the Asstt. Contrl to re-determine the value of the agricultural lands having regard to the principles discussed above and the direction contained in this order. 12. For statistical purposes, the appeal shall be treated as allowed.
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1981 (3) TMI 108 - ITAT CALCUTTA-E
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... ... ..... great length, agree with the former that the assessee-firm was under the bona fide belief that the entire said foreign tour expenses disallowed by the tax authorities will be allowed by the ITO. As such, the penalty was not exigible in the present case. See in this connection the ratio of the decision of the Supreme Court in the case of Hindustan Steel Ltd. (1972) 83 ITR 26 (SC), as also the ratio of the decision of the Supreme Court in the case of Anwar Ali (1970) 76 ITR 696 (SC) and of Khoday Eswarsa and Sons (1972) CRT (SC) 295 (1972) 83 ITR 369 (SC) as also the decision of the Tribunal (Jaipur Bench-Jaipur) in the case of the assessee in ITA No. 1514/JP/79 (asst. yr. 1974-75), decided on 21st Feb., 1980, wherein on similar facts, the penalty order has been quashed. We, with the learned counsel for the assessee, therefore, agree Mr. N.M. Ranka that the penalty is not exigible in the present case. We hold likewise. 13. In the result, the appeal by the assessee is allowed.
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1981 (3) TMI 107 - ITAT CALCUTTA-E
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... ... ..... th the ITO and the CIT(A) have disallowed the said expenditure on the ground that the said expenditure was in the nature of entertainment expenses. 10. We have heard both the learned counsel for the assessee and the Deptl. Rep. The expenses in so far as they pertained to providing tea, coffee, coca cola, etc. to the staff are concerned, the same are to be allowed, as staff welfare expenditure. In so far as the said expenditure pertaining to the customers is concerned, the said expenditure is in the nature of customary courtesy provided by the assessee to its constituent. The said expenditure, as repeatedly held by the Tribunal, is not in the nature of entertainment expenditure. This view of ours finds support from a recent decision of the Supreme Court in SLP No. 3781 of 1978, decided on 13th Oct., 1979 in the case of Allied Publishers (P) Ltd. (Bom). We, therefore, delete this addition sustained by the CIT(A). 11. In the result, the appeal by the assessee is partly allowed.
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1981 (3) TMI 106 - ITAT CALCUTTA-E
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... ... ..... emises of the assessee and he directed it to undertake certain repairs etc., including the following (1) The staircase leading to the cupola platform is not of sound construction. The same should be provided of sound construction along with the hand rails, and (2) The roof of the working shed was found in very deteriorated condition. The same should be replaced by new sheds. To comply with the said direction, the assessee incurred an expenditure by way of repairs and replacements of the roof of the shed and the attachment to the platforms at the cost of about Rs. 12,000 and about Rs. 2,500 respectively. The said expenditure being an expenditure in the nature of repairs and replacements was revenue and not capital, as held by the Bombay High Court in 97 ITR 24(Bom). Holding likewise, we delete the entire addition of Rs. 5,000 made by the tax authorities, the balance expenditure being admittedly of revenue nature. 9. In the result, the appeal by the assessee is partly allowed.
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1981 (3) TMI 105 - ITAT CALCUTTA-A
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... ... ..... ho has relied on the order of the CIT. 4. We, after deliberation, consider that the present case is a fit case wherein the penalty order be set aside and the matter be re-heard by the CIT. We say so, because prima facie the assessee appears to have given the requisite information regarding his entering into contract with the Executive Engineer, PWD It can also be said that the period of seven days when the assessee stays at a far distant place like Jhalawar was too short a time for him so contact his Income-tax Adviser and to appeal before the CIT to show-cause inasmuch as the date fixed for hearing by the CIT was 28th Jan., 1980, and the said notice was served on the assessee on 21st Jan., 1980 we, therefore set aside the impugned order of the CIT and restore the matter to his file for deciding the said matter afresh in accordance with law, after giving due opportunity of hearing to the assessee. 5. In the result, the appeal of the assessee allowed for statistical purposes.
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1981 (3) TMI 104 - ITAT CALCUTTA
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... ... ..... of claim of Rs. 50,000 in this regard appears to be reasonable having regard to the wealth of the smaller HUF. 14. The next ground is against the allowance of wealth-tax liability on the assessments of the deceased. The claim has been disallowed by the Appellate Controller on the ground that the property was to be taken as on the date of death. We are, however of the view that the tax payable on the wealth of the assessee upto the date of death is a debt on the estate and should be allowed as a deduction. The Asstt. Controller is directed to ascertain the amount and allow it accordingly. 15. The last ground is regarding the valuation of the Takhteshahi Road property. The Appellate Controller has upheld the valuation as the valuation was based on the wealth-tax assessment. Before us it was stated that the valuation should be reduced as the property belonged to the HUF. We do not find any force in the above submission and reject this ground. 16. The appeal is allowed in part.
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1981 (3) TMI 103 - ITAT BOMBAY-E
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... ... ..... It is true that a couple of decision of the High Court are in favour of the Department. However, most of the other decisions are against the Department and they have all been discussed and referred to in the aforesaid Calcutta High Court 116 ITR 657 (Cal). Under the provisions of the 1922 Act, the ITO could exercise the option of either assessing the members of the association individually or the association itself, and he could not do both the things. That was laid down by the Supreme Court in 60 ITR 95 (SC). The same principles apply to the provisions of the New Act. As was held by the Calcutta High Court 116 ITR 657 (SC), there cannot be simultaneous taxation and that once the members of the association were taxed separately on their shares, it was not open to the ITO to subsequently seek to tax the AOP and the would amount to double taxation in defiance of the option provided to the ITO. In the circumstances we uphold the AAC s action and dismiss the Departmental appeal.
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1981 (3) TMI 102 - ITAT BOMBAY-D
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... ... ..... s business asset, but it does not mean that the assessee is not entitled to claim capital loss on its sale, and the claim of the assessee cannot be rejected on the ground that the assessee has shown the car as her personal effect for the purpose of wealth-tax proceedings for the year under consideration much more, there is no evidence on record to show that the car is capital asset for the purpose of business of the assessee. Since the car was purchased in the preceding year, and the short-term capital loss are to be allowed if the asset is used only for three years or the asset is sold within three years from the date of its purchase. As the situation over here is that of short-term capital loss, on the facts stated above, therefore, we hold that the ITO was justified in taking the loss on the sale of the car for the purpose of taking it under the head Capital Gains . Hence, we uphold his order, and thereby set aside that of the CIT. 7. In the result, the appeal is allowed.
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