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Showing 41 to 60 of 100 Records
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1981 (5) TMI 60 - ITAT INDORE
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... ... ..... ssee had maintained proper muster rolls and all the payments made are fully vouched. We are, deleting the addition of Rs. 1,10,000 made by the ITO out of the carpenters rsquo wages account. 24. The last ground taken by the Department in its appeal is that the CIT (A) was not justified in allowing depreciation on the sheds 15 per cent by treating them as third class construction as against 10 per cent which was allowed by the ITO treating the structure as of second class. 25. This point has already been considered by us while dealing with the assessee rsquo s appeal and we have held that the temporary sheds constructed by the assessee during the relevant accounting period were entitled to depreciation 100 per cent. In view of our discussion on this subject earlier, we do not find any merit in this ground taken by the Department and accordingly dismiss the same. 26. In result, the appeal filed by the assessee is partly allowed while the appeal filed by the Department is missed.
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1981 (5) TMI 59 - ITAT HYDERABAD
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... ... ..... in the earlier years are not in dispute. The ld. Counsel has stated that the loans in respect of relatives are long standing. The assessee has paid interest of Rs. 7,376, Rs. 7,370 and Rs. 8,941 for the asst. yrs. 1976-77, 1977-78 and 1978-79 respectively. The Tribunal s order relied upon by the ld. counsel for the assessee also shows that interest payment at 30 per cent was also allowed as deduction. Further the deduction under s. 40A (2) is subject to various considerations of which the benefit derived by the assessee or accruing to it is one. From this point of view the interest payment at higher rate can be said to be reasonable as the loans have been advanced by the relatives several years back and nothing has been brought to our notice to dispute this fact. Therefore, we are of the opinion that there is no justification for disallowing the excess interest under s. 40A (2) of the IT Act, 1961. Accordingly the addition is deleted. 5. In the result, the appeal is allowed.
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1981 (5) TMI 58 - ITAT GAUHATI
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... ... ..... . 143(1) of the Act. Lateron, the ITO re-opened the assessment under s. 147 read with s. 148 of the Act. Pursuant to the said notice, the assessee filed the return. On comparison of the two returns, the ITO found that the assessee has concealed the particulars of his income in the return filed originally by him inasmuch as he had not disclosed therein his income under the head income from business in respect of Jeep No. TRT-554 and the income under the head income from capital gains in respect of plot of land sold by him for the year under consideration. These facts are entirely different from the fact involved in the said appeal before the Tribunal, in the aforesaid earlier decision. The position also in (1977) 6 CTR (Gau) 66 is different from that involved in the present case. 11. In view of our above findings, we, therefore, uphold the penalty order of the ITO which has been confirmed by the AAC. 12. In the result, the appeal by the assessee fails and is here by dismissed.
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1981 (5) TMI 57 - ITAT DELHI-E
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... ... ..... case of Kumari Archana Ansal vs. CIT, ITA Nos. 526 to 531 (Del)/1976-77, dt. 13th April 1979, an extract from which he quoted in his order and held since as per the agreement the assessee was only a tenant and not the owner of the property during the currency of the hire purchase agreement, the income thereof could not be assessed in his hands under the head self-occupied property rsquo . 3. The department is aggrieved and has come up in appeals. In my opinion, the order of the AAC is correct and calls for no interference. The assessee is not the owner of the property and notional income u/s 22 can be assessed only in the hands of the owner and not in the hands of the tenant which the assessee is during the currency of the hire purchase agreement. A similar view has been taken by the Delhi Bench lsquo D rsquo of the Tribunal in the case of K. L. Goyal vs. ITO, ITA No. 4683 (Del) 1980 dt.31st March, 1981. I, therefore, uphold the order of the AAC. 4. The appeals are dismissed.
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1981 (5) TMI 56 - ITAT DELHI-C
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... ... ..... me other source. It was on this reasoning that learned AAC deleted that addition of deemed income. 6. On revenue s side only one argument has been advanced to challenge the aforesaid finding of the AAC. That argument that in the 2nd Para of the assessment order, the ITO had made an observation that expenses regarding travelling to and from Delhi from time to time in connection with exchange of currency notes on commission have not been indicated in assessee s books. I, consider the said argument as not being relevant to the explanation as to the nature and source of the two sums in question. The said observation was made by the ITO while determining the question of deductibility of expenses amounting to Rs. 5,628 while computing the business income of the assessee on estimate basis. There is no merit in revenue s appeals. For the reasons spelt out in AAC s order, I, confirm his finding as to the deletion of the deemed income in question. Revenue fails. 7. Appeal is dismissed.
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1981 (5) TMI 55 - ITAT DELHI-A
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... ... ..... nsidered that the Gaon Sabha of Nangal Dewat was a municipality. 24. The net result is that at best it can be said that the agricultural land in question was situated in an area which is comprised within the jurisdiction of Municipality of Delhi, known as Delhi Municipal Corporation as also within the jurisdiction of Municipality of Nangal Dewat known as Gaon Sabha Nangal Dewat. Whereas the population of the area comprised within the jurisdiction of Gaon Sabha Nangal Dewat is less than 10,000, the population of the area comprised within the jurisdiction of DMC is over 10,000. Obviously, such a situation could not be said to have been provided for in s. 2(14) (iii) (a), otherwise, the Parliament would have enacted some guidelines for making appropriate choice for including or not including in the definition of capital asset such an agricultural land. We, accordingly refuse to interfere with the finding of the Commr. (A). 25. In the result, the Departmental appeal is dismissed.
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1981 (5) TMI 54 - ITAT DELHI-A
Rent Control ... ... ... ... ..... he rent-free accommodation provided by an employer to his employee, which is fair rental value of such accommodation is to be determined under rule 3(1)(a) (iii), in accordance with the decision of the Supreme Court in Dewan Daulat Rai Kapoor s case for the assessment years up to 1976-77 and (4) that in either case standard rent or fair rent is the measure for determining the annual value or the fair rental value, as the case may be, till 31-3-1976. In this view of the matter, we direct the ITO to take the fair rental value of the rent-free accommodation provided to the assessee by his employer at 1-Tis January Marg, New Delhi, in this case, at Rs. 24,000 for 11 months of the relevant previous year in accordance with the standard rent fixed by the Additional Rent Controller of this property. This will, of course, be in addition to the value of the furniture and fixtures taken by the ITO at Rs. 3,047. 22 to 32. These paras are not reproduced here as they involve minor issues.
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1981 (5) TMI 53 - ITAT CUTTACK
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... ... ..... Sugar Factory and Oil Mills Pvt. Ltd. O.P. BHURDWAJ, A.M. While I agree that the Deptl. appeal has to be dismissed. I do so for a different reason. 2. The ld. Deptl. Rep. had relied on the provisions contained in sub-s. (1A) of s. 32 of the IT Act in support of the Deptl. appeal. The provisions of this sub-section are, however, applicable only where the expenditure incurred by the assessee can be regarded as capital expenditure . In the instant case, when the assessee constructed the storage tank, the lease of the premises in question was only for a period of two years. If the lease were terminated after the end of that period, the tank would have become the property of the lessor. It is, therefore, clear that the assessee had the ownership, possession and use of tank for a period of less than two years. An expenditure resulting in such a limited benefit cannot be regarded as expenditure of a capital nature. Hence, the provisions of s. 32(1A) are not attracted in this case.
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1981 (5) TMI 52 - ITAT COCHIN
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... ... ..... d been introduced by the wife in the partnership of which she was a partner and the share income was derived by her during the two previous years relevant for the assessment years under consideration. The assessee has claimed that the amount has been advanced by way of loan. Normally when a transaction of loan is entered into between parties related to each other like husband and wife there may not be any record to prove that the loan is secured. The surrounding circumstances have necessarily to be taken into account. Such circumstances could be brought to light only when the parties concerned are examined. Without bringing out all the facts it cannot be assumed that, because no interest is levied or that the amount is not immediately repaid, there could be no borrowal. In the circumstances of the case, we set aside the findings of the lower authorities and restore the matter back to the ITO for disposal afresh. For statistical purposes the appeal will be treated as allowed.
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1981 (5) TMI 51 - ITAT COCHIN
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... ... ..... the number of partners exceed the limit of twenty and the partnership carried on business in contravention of s. 11, the partnership ipso facto become illegal. But such illegality supervenes only at a subsequent stage and that circumstances is not relevant for granting registration when the partnership is formed. 14. We are, therefore, of the view that for purposes of s. 11(2) of the Companies Act, it is only the adult partners who are the partners under the Partnership law that can be taken into account and that minors admitted to the benefits of partnership are not partners/persons to be considered for the purpose of fixing the limit of twenty. We hold that the partnership in this case consisted in each year of less than twenty persons, that the provisions of the Companies Act had not been contravened and that the assessee is therefore entitled to registration as sought for. Accordingly, we confirm the decision of the CIT (A). 15. In the result, the appeals are dismissed.
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1981 (5) TMI 50 - ITAT CHANDIGARH
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... ... ..... or arising on account of a long-standing custom of a trade, business or profession cannot amount to entertainment and acts done in discharge of such obligation cannot be included and covered in the term entertainment . In the present case, we are surprised as to how providing frugal messing facilities to the constituents could be considered as hospitality at all. Therefore, there was no cause of action for the ITO to have withdrawn deduction of Rs. 3,870. Independent of the above, in any case we see no justification as to how resort could be taken to the provisions under s. 154 of the Act, which was totally uncalled for, in view of the Supreme Court judgment in the case of T.S. Balaram, ITO vs. Volkart Brothers and Others (1971) 82 ITR 50 (SC). Therefore, the assessee s appeal is allowed on the above stated two Courts, independent of each other. The addition of Rs. 3,870, therefore, shall stand cancelled from the assessment revised under s. 154 of the Act. 5. Appeal allowed.
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1981 (5) TMI 49 - ITAT CHANDIGARH
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... ... ..... e is no other instance or notice having been received by Sadhu Singh. The factum of death of Sohan Lal, one of the partners who used to attend to income-tax proceedings has also to be taken into consideration in determining the issue before us. It has not been shown that the assessee had appeared before the CIT (A) earlier and had the knowledge that an order in the case of the assessee for the assessment year under appeal had been passed. As such there does not appear to be any intention on the part of the assessee for not filing the appeal in time. The assessee has filed the appeal expeditiously after it was discovered that the appellate order passed by the CIT(A) served upon one of the employees was not communication to the assessee. We, therefore, are of the opinion that the delay, though inordinate, is not due to taint of mala-fides or element of recklessness or ruse. We, therefore, condone the delay and admit the appeal to be considered on merits in accordance with law.
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1981 (5) TMI 48 - ITAT CALCUTTA-D
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... ... ..... o be processed as a short term capital gains. In the result, we would allow this contention of the assessee and hold that capital gains has to be computed as short term capital gains. 7. The next two grounds relate to the charging of interest u/s 139(8). Even though this ground was raised, it was not considered by the CIT (Appeals). However, it was claimed that in view of the decision in the case of CIT vs. Executors of the Estate of late H.H. Rajakuverba Dowager Maharani Saheb of Gondal 1978 CTR (Kar) 347 (1978) 115 ITR 501 (Kar), the CIT (Appeals) ought to have deleted this item. The Deptl. Rep., on the other hand, submitted that if it is not part of the assessment order, the assessee has no right of appeal. 8. Having considered the matter, we are of the opinion that since that CIT (Appeals) has not decided this issue, it should go back to him for a fresh disposal. This point is accordingly sent back to the CIT (Appeals). 9. In the result, the appeal is treated as allowed.
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1981 (5) TMI 47 - ITAT CALCUTTA-B
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... ... ..... se, the appeal memo was sought to be amended and the Tribunal refused the amendment and the appeal was dismissed on the ground that necessary pleas have not been taken as their Lordships of the Supreme Court held that the Tribunal instead of dealing with the substance of the matter appears to have been unduly influenced by the procedural technicality. Their Lordships further held that no specific formula is necessary for seeking relief at the hands of the Tribunal if the necessary grounds are taken in the appeal memo. On the facts of the case with which we are seized of, the first four appeals are barred by time while the fifth one is not tenable in law, since all these appeals do not meet the requirement of law and the mandatory provision, which govern the filing of appeals. 14. In the result, all the five appeals by the Revenue stand dismissed ITA No. 1117/JP/80 being not tenable in law, while ITA Nos. 1300/JP/80, 1302/JP/80, 1303/JP/80 and 1304/JP/80 being barred by time.
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1981 (5) TMI 46 - ITAT CALCUTTA-B
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... ... ..... n by the Gujarat High Court in the above mentioned case would, therefore, also support the claim of the assessee. 10. In relation to the sum of Rs. 7,788 being 1/2 of the tax payable by the firm in pursuance of the settlement order, we are of the opinion that as the firm had been dissolved during the previous year relevant to the asst. yr. 1962-63, the aforesaid tax had to be recovered from the assessee as it could not recovered from the dissolved firm. In this view of the matter, the aforesaid tax liability of Rs. 7,788 has also to be regarded as the tax payable by the assessee in pursuance of the settlement order and, therefore, a debt owed by the assessee on the relevant valuation dates. In view of the foregoing discussion, we held that the AAC was justified in directing that a sum of Rs. 24,388 should be deducted in computing the net wealth of the assessee for each of the assessment years under appeal. 11. In the result, all the four departmental appeals stand dismissed.
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1981 (5) TMI 45 - ITAT CALCUTTA-A
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... ... ..... ase dt.27th April, 1974 referred to above, is treated as owned by the assessee and the value thereof of Rs. 2,540 is treated as his income under s. 69A for the previous year. The silver and other articles seized from him on 29th Dec., 1973 in the financial year 1973-74 are relevant for asst. yr. 1974-75 and will be dealt with accordingly. In view of the above position the addition of Rs. 2,540 in this year cannot stand and the same is deleted. 4. In so for the addition on account of income from smuggling business is concerned, this has been based only on the seizure made by the Customs authorities. The case against the accused ended in acquittal by a judgment of the Magistrate dt.29th Aug., 1979. It is only on surmise that income was estimated from smuggling activities. There is no evidence whatsoever with regard to the business said to have been carried on by the assessee in smuggled goods. Consequently, the estimate made is deleted. 5. In the result, the appeal is allowed.
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1981 (5) TMI 44 - ITAT CALCUTTA
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... ... ..... on all fours with the facts of the case of M/s Veerchand Manaji, in ITA Nos. 645, 646 and 647/JP/79 as were before the Jaipur Bench of the Tribunal, Jaipur. The Tribunal held in favour of the assessee and we having perused the said order of the Tribunal find ourselves in complete agreement with the reasoning and the conclusions arrived at by the Jaipur Bench of the Tribunal and accordingly, of course respectfully following the same we do hold that the facts of the assessee s case warrant that the impugned order of the CIT be cancelled since the mistake was a bona fide one. 6. For the desired fortification, we also rely upon the ratio of the decision of the Allahabad High Court in the case of CIT vs. Hari Ram Khanna (1979) 116 ITR 886 (All) with the result that we do cancel the impugned order of the CIT made under s. 263 of the IT Act, 1961 and restore that of the ITO granting registration to the assessee-firm originally. 7. The appeal by the assessee succeeds and is allowed.
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1981 (5) TMI 43 - ITAT CALCUTTA
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... ... ..... genuine and that has since been acted upon fully by the parties upto the family arrangement partial partition. On this score the assessee succeeds and the appeal stands allowed. 8. For completeness and caution we will also like to rely upon the ratio of the decision of the Andhra Pradesh High Court in the case of CIT vs. Dara Seshavataram (C.R. No. 4 of 1977) decided on 28th Dec., 1979 as stands reported in (1980) 16 CTR (AP) 371.Their Lordships having held that presumption under sub-s (1) of s. 171 of the Act is applicable to total partition and not to a partial partition . On this score also, the lower authorities were wrong in holding that the claim of the assessee vis-a-vis partial partition was not genuine and further that the assets and liabilities of the HUF as were prior to the alleged partition will continue to be the assets and liabilities of the HUF assessee after the partition has taken place. 9. In the result, the appeal by the assessee succeeds and is allowed.
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1981 (5) TMI 42 - ITAT BOMBAY-C
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... ... ..... issued by the housing society states that on 3rd Sep, 1976 the actual transfer was authorised by the society though the membership of Cdr. Badve was approved by the Managing Committee on 17th Jan, 1976. The no objection certificate itself was received on 2nd Sep, 1976 by the society. It may also be mentioned that the ITO himself accepted the assessee s contention and has actually assessed the same amount for the asst. yr. 1977-78. We, therefore, hold that the action of the Commr. (Appeals) was perfectly justified. The Deptl. Rep. no doubt, tried to rely upon a decision of the Tribunal in the case of Latif where the facts are entirely different. In this connection reference may be made to paragraph 6 of the Tribunal s order dt. 9th Oct, 1980 and the facts speak for themselves. That decision is of no assistance to the department. In the result, the department. In the result, the department fails on the second issue also. 7. In the result, the departmental appeal is dismissed.
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1981 (5) TMI 41 - ITAT BANGALORE
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... ... ..... he has applied his mind on the basis of the valuer s report filed by the assessee and in such a circumstance a re-appraisal on the basis of later valuation would only amount a change of opinion. One of the cases noticed in the decision in 127 ITR 308 is that of CIT vs. Simon Carves Ltd. 1976 CTR (SC) 418 (1976) 105 ITR 212 (SC). On the same analogy it has to be held that there is nothing to show that the discretion was not properly exercised by the officer when he originally accepted the return on the basis of the valuation report. From the mere fact that another valuation cannot mean that the discretion was not properly exercised originally. The order made by the WTO at the time of the original assessment was a legally correct order and was not vitiated by any error. The absence of an error justifies the inference that this was not a case of wealth escaped assessment or being under assessed. In view of this we see no merit in these appeals. Accordingly, they are dismissed.
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