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Showing 61 to 80 of 160 Records
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1982 (5) TMI 100 - ITAT DELHI-C
Best Judgment Assessment ... ... ... ... ..... d deal with the substance of the matter. 16. Again in the case of Concord of India Insurance Co. Ltd. v. Smt. Nirmala Devi 1979 118 ITR 507 (SC). Their Lordships of the Supreme Court have held that as pronouncements on question of law by Courts are sometimes wrong, legal advice given by the members of the legal profession may also sometimes be wrong, hence, an amount of latitude is expected in such cases for, to err is human and laymen, as litigants are, may legitimately lean on expert advice. 17. In the case of the assessee, certainly the grounds of the appeal before the Commissioner (Appeals) were drafted by the assessee s counsel. Hence, the order of the Commissioner (Appeals) leaned heavily on the side of technicalities and in that view of the matter, respectfully following the observations of their Lordships of the Hon ble Supreme Court, the order stands set aside. 18. In the result, the appeal by the assessee shall be taken to have been allowed for statistical purposes.
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1982 (5) TMI 99 - ITAT DELHI-B
Deemed Gift ... ... ... ... ..... s As regards the second question on which this court had called for a supplementary statement, there is no serious controversy that by the declaration datedSeptember 1, 1961, the appellant must be deemed to have made a gift of the items mentioned therein to the undivided family of which she was a member. The Tribunal s finding to that effect must, therefore, be confirmed. The income of the property gifted to the Hindu undivided family will be liable to be brought to tax consistently with this finding and in accordance with law. Therefore, it can be seen that even though the declaration dated 1-9-1961 in that case was not registered yet it was considered to be a deemed gift. When that is so, there is no difficulty to find that the compromise decree dated 15-1-1970 in any event should also be considered to be a deemed gift. Therefore, this ground also should fail. 16. In the result as the assessee is not successful in any of the grounds taken by it, the appeal stands dismissed.
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1982 (5) TMI 98 - ITAT DELHI-B
Expenditure Incurred, Local Authority ... ... ... ... ..... penalty of Rs. 2,23,650 imposed by the Enforcement Directorate for violation of the FERA by the assessee. We have also gone through the other decisions cited by the learned counsel of the assessee but they do not advance the case of the assessee. 6. The next ground taken by the assessee in this appeal is against the disallowance of Rs. 5,000 being the penalty levied by the Delhi Development Authority (DDA) for the infrigement of building by-laws. The above penalty was levied by the DDA since the cinema building, which was meant for the purpose of exhibition of films, was let out by the assessee on rent. In our opinion, since the penalty was imposed on the assessee for infringement of the by-laws of the local authority, the said expenditure cannot be treated as incidental to the carrying on of the assessee s business and, hence, was rightly disallowed by the authorities below. We decline to interfere. 7 to 10. These paras are not reproduced here as they involve minor issues.
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1982 (5) TMI 97 - ITAT DELHI-A
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... ... ..... that merely because WTO had adopted a different method for valuing the shares of Intercontinent Travancore (P) Ltd., there was an error in his order in not following the same method invaluing the share of Escorts Farms (R) Ltd. He was unable to show us that the method adopted in the first case was in fact the correct method. We have also stated above that the assessee is also in appeal against the valuation of the shares of Intercontinent Travancore (P) Ltd., before the CIT (A). 10. Our finding, therefore, is that the orders passed by the WTO were not erroneous in so far as they were prejudicial to interests of revenue. The CWT, therefore, had no jurisdiction to apply the provision of s. 25(2) of the WT Act, 1957. We, accordingly, cancel his order and allow the appeals. In the view we are taking, it is not necessary for us to deal with the other and alternative contention of the assessee that Escorts Farms (R) Ltd, was an investment company to which r. 1D had no application.
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1982 (5) TMI 96 - ITAT DELHI-A
Income, Accrual Of, Capital Asset, Capital Gains, Chargeable As
... ... ... ... ..... partnership of M/S. Mannalal Nirmal Kumar Soorana & Co. at a value higher than their cost of acquisition to the HUF they brought themselves within the ratio of the Gujarat High Court 's decision in Kartikey vs. Sarabhai's case (1981) 24 CTR (Guj) 184 131 ITR 42 (Guj) (paragraph 117). (4) That being the only decision of a High Court directly on this point, the Tribunal has to hold itself bound by that decision (paragraph 117). (5) That being so, the difference between the cost of acquisition of the assets to the Hindu Undivided Family and the value at which they were contributed as capital, represented capital gains liable to tax, in their hands (paragraph 117). (6) The previous year in which such capital gains could be brought to tax is the financial year as the assessee has not opted for any other previous year in respect of this source of income (paragraphs 118 to 121). (7) Hence such capital gains are not liable to tax for the asst. yr.1977-78 (paragraph 122).
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1982 (5) TMI 95 - ITAT DELHI-A
Draft Assessment Order ... ... ... ... ..... that lady in the context of the construction of the property at A-14, NDSE, Part I. Thus, while on the one hand he claims to have taken a loan from her, he denies having any transaction with her, as she is divorced from him, when it comes to explaining the investment in the plots of land. This aspect has also been fully discussed in the orders of the authorities below, which would go to show that the assessee has not been able to explain satisfactorily the sources of funds for the investment in the various plots of land. 38. Inthe result, subject to the further enquiry regarding the amount of Rs. 21,800 allegedly representing the balance of sale proceeds of the assessee s one-third share in the agricultural land, the other additions made by the ITO, and confirmed by the AAC are hereby confirmed. 39. No other contentions were either raised or pressed before us. 40. For statistical purposes, the assessee s appeal will be treated as partly allowed, to the extent indicated above.
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1982 (5) TMI 94 - ITAT COCHIN
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... ... ..... and the notice under section 17(1) had no relevance here. The position is settled by the Supreme Court decision in CWT v. Suresh Seth 1981 129 ITR 328(SC) that where the default complained of is one falling under section 18 (1) (a) of theWealth-taxAct the penalty has to be levied in accordance with the law in force on the last day in which the return has to be filed. The default must be deemed to have been committed by the assessee herein on the due dates on which he had to file the returns under section 14 (1). The penalty will, therefore, be on the provisions of section 18 (1) (a) as it stood on the respective due dates and on the basis of the original assessments. The WTO appears to have applied the provision accordingly. It is not shown that the penalty has been worked out on any wrong basis. The AAC has pointed out that only the minimum penalty has been levied. We do not, therefore, find any ground to modify the order to any extent. The appeals are accordingly dismissed.
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1982 (5) TMI 93 - ITAT COCHIN
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... ... ..... he decision in the case of K. Madhavan Nambiar, we have to hold that the HUF was extinct by statute and after its extinction there would be no charge to tax. It follows that no assessment could be made on the family as such for assessment year 1977-78. The assessment against the assessee HUF as such is unsustainable, there being no HUF as a legal entity at the time of making the assessment. Therefore, the assessment on the assessee herein is to be annulled. 8. The other ground raised by the assessee objecting to the addition of Rs. 25,000 being the value of 25 cents of land treating it as urban land does not survive in view of the above finding. It has, however, to be pointed out that for the earlier assessment year 1976-77 similar addition made by the WTO was confirmed by the AAC and the decision has been accepted by the assessee. This ground is, therefore, liable to be rejected on merits. 9. In the result, the assessment is annulled and the appeal is allowed to that extent.
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1982 (5) TMI 92 - ITAT COCHIN
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... ... ..... leted. Registration under the Income-tax Act is an annual registration and it is not permissible to give piece-meal registration on the instrument of partnership. In view of the change in the constitution in the previous year attracting section 184(8) of the Income-tax Act, the question of filing a declaration under section 184(7) by the firm for part of the year upto 31st December 1976 cannot arise. Therefore the direction of the Commissioner (Appeals) has to be read as one directing registration for the assessment year 1977-78 as a whole. Subject to these observations, we confirm the order of the Commissioner (Appeals). 5. IT Appeal No. 564 (Coch)/80 directed against the order allowing the appeal against the assessment in the status of unregistered firm is also to be dismissed. The order of the Commissioner (Appeals) is only consequential to his finding that the firm is entitled to registration for the relevant assessment year. In the result, both the appeals are dismissed.
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1982 (5) TMI 91 - ITAT COCHIN
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... ... ..... his share in the profits of the business to his employees who became partners. At the same time it was without parting with any portion of the assets of the business, If at all this could be considered as a transfer within the meaning of the GT Act then we are of the opinion that the transfer is only of part of the capacity of the business to earn profits and such transfer is adequately met as a consideration by putting in the personal efforts by the new partners. The assessee, in fact, has raised this point before the AAC who, however, mistook this ground as a ground claiming exemption s. 5(1) (xiv) We would hold that even though there might have been a transfer, the transfer is for adequate consideration and therefore there is no gift involved in the transaction. The taxable gift is therefore reduced to nil as the assessee has gifted only one other item therefore cash of Rs. 5,000 which would be exempt under s. 5(1) of the GT Act. 11. In the result, the appeal is allowed.
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1982 (5) TMI 90 - ITAT COCHIN
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... ... ..... ne and, therefore, to the extent of Rs. 50,000 the gift should be exempted under s. 5(1)(viii). The AAC, before whom also this point was urged, has stated that there is nothing to show that the gift was made by the assessee to his wife, that the assessee surrendered his one-fourth interest in the property in favour of the six partners constituting the firm. Navodaya and that in the deed it was not specified that the share of Mrs, Baby Punnoose had come out of the interest in the rubber estate relinquished by the assessee. We consider that the AAC was justified in the circumstances in rejecting the claim of the assessee. The assessee has not been able to establish that a gift has been made by him to this wife in order to attract the provisions of s. 5(1)(viii). This point is, therefore, decided against the assessee in GTA No. 5 (Coch)/82. 6. In the result, GTA Nos. 4,6 and 7 (Coch)/82 are treated as allowed while the appeal in GTA No. 5 (Coch)/82 is treated as partly allowed.
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1982 (5) TMI 89 - ITAT COCHIN
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... ... ..... controlling such expenditure. It is also noticed that the expenditure on an accommodation provided at fair market rent is not excluded by either the first proviso, to s. 40(a)(v) or in the proviso to s. 40A(5)(b). In view of this, even if a consideration is received by the assessee from its employees, for the use of the assets belonging to the assessee the expenditure incurred on such asset by the assessee should be taken into account for applying s. 40A(5). We would, therefore, hold that the ITO was justified in taking into account the expenditure and the depreciation on these buildings for the purpose of limiting the expenditure under s. 40A(5). 8. In the result, we would uphold the orders of the CIT(A) in respect of the question regarding the expenditure and depreciation on the motor cars, while we would restore the orders of the ITO in respect of the expenditure and depreciation on the building occupied by the employees of the assessee. 9. The appeals are partly allowed.
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1982 (5) TMI 88 - ITAT COCHIN
Reassessment, Information ... ... ... ... ..... 5-5-1973, which is before the beginning of the previous year for this assessment year. However, this statement of the directors should be viewed in the light of the sales of tea, that have taken place during the previous year for this assessment year. We would, therefore, conclude that the statement of the directors was essentially a declaration that no further tea would be processed or manufactured after 5-5-1973, and that the business would be closed down after all the tea on hand is sold. Since the tea has been sold completely only in the previous year for this assessment year, it must be taken that the assessee has carried on the business, in fact, during the previous year for this assessment year. If that is the position, then the action of the ITO, in the original assessment, in allowing the set off of the losses from 1969-70 onwards, is in order. We would, therefore, reject the third ground taken by the revenue in its appeal. 9. In the result, the appeal is dismissed.
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1982 (5) TMI 87 - ITAT COCHIN
Investment Allowance ... ... ... ... ..... decision under section 33(1)(b)(B)(i)(a). It is true that the point involved in that case was whether the assessee was entitled to a higher development rebate on the ground that the particular commodity was an article enumerated in entry 30 of the Fifth Schedule. Nevertheless, the development rebate has been allowed on the basic premise that the assessee was engaged in the production of an article. The article in that case was also frozen fish and fish product. The same ratio would apply to the interpretation of the position obtaining under section 32A. 9. The decision of the Calcutta High Court in the case of Radha Nagar and of the Allahabad High Court in Farrukhabad Cold Storage may not, however, have any bearing on the question here because those decisions were given on the question whether the company-assessee there was an industrial company in respect of the relevant provisions of the Finance Acts. 10. We, therefore, confirm the order of the AAC. The appeal is dismissed.
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1982 (5) TMI 86 - ITAT COCHIN
Advance Tax, Financial Year ... ... ... ... ..... timate. Since the penalty proceedings have been taken by the ITO under section 273(b) of the Act and since such proceedings have been confirmed by the Commissioner (Appeals), we would only consider in this appeal whether the assessee is liable to a penalty under section 273(b). The liability of the assessee to penalty under section 273(a) cannot be considered. In view of the fact that the default on the part of the assessee in filing the estimate beyond the due date is only a technical default and, therefore, the assessee has not acted in deliberate defiance of law, we would hold, applying the ratio of the decision of the Supreme Court in the case of Hindustan Steel Ltd., that the assessee is not liable to any penalty under section 273(b). The penalty levied is, therefore, cancelled. 7. Since we are cancelling the penalty on the above ground the other submission made by the assessee regarding the quantification of the penalty is not considered by us. 8. The appeal is allowed.
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1982 (5) TMI 85 - ITAT CHANDIGARH
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... ... ..... nfirmed by the Tribunal. 11. Before we part, we may also mention that under identical circumstances on the basis of similar estimate and similar decisions of the ITO and the appellate authorities for assessment year 1971-72, the IAC of his own had dropped the penalty proceedings of concealment under section 271(c). 12. In the light of the above discussion and following most respectfully the Punjab and Haryana High Court decisions in the case of Sunder Lal Mohinder Pal, we hereby cancel the penalty. 6. From the above finding of the Tribunal, it is apparent that the Tribunal has found it to be a clear cause of estimate of income and, in other words, rejected explanation as a result of which addition was made came to be confirmed by the Tribunal in quantum appeal. From the above stated facts, it is apparent than no referable question of law arises and the request of the concerned Commr., therefore, in this regard is rejected. 7. In the result, reference application is dismissed.
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1982 (5) TMI 84 - ITAT CHANDIGARH
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... ... ..... e only dispute is for multiplier as the whole of the property was tenanted during the two assessment years. For the very same reasons as given in the course of 1966-67 because of lapse of time till asst. yr. 1973-74, we are of the view that multiplier of ll instead of 12 1/2 per cent taken by the AAC should be substituted. The WTO is directed to recompute the valuation of the property in question on the basis. In respect of these two appeals, the contentions of the respective ld. Counsels for the assessee and the revenue were identical as in respect of asst. yr. 1966-67 regarding tenanted property. Therefore, we have not repeated the same and for identical reasons on the basis of which we have reduced the multiplier from 14 to 12 1/2 per cent in 1966-67, we reduce the same from 12 1/2 per cent to 11 per cent for these two years, i.e. 1973-74 and 1974-75. 12. In the result, the revenue s appeals are dismissed and the assessee s appeals and cross-objections are partly allowed.
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1982 (5) TMI 83 - ITAT CHANDIGARH
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... ... ..... s, the assessee s father, in M/s. Associated Traders and Enggs. Ltd. has been taken Rs. 169.70, the WTO was not justified in computing the break-up value of the assessee s case Rs. 400 and equally unjustified was the AAC who confirmed the said estimate. The AAC while dealing with the assessee explanation regarding valuation of shares submitted that certain information was not forthcoming from the assessee regarding refund of tax etc., with those observation, he rejected the assessee s contention. 4. We are not going into the computation of break up value as per r. 1D as we do not find it necessary when we look to the fact that the revenue in the case of the assessee s own father Shri H.K. Dass has adopted the valuation Rs. 169.70 per share in respect of M/s. Associated Traders and Enggs. Ltd. The WTO is directed to revalue the shares . Rs. 169.70 per share as in the case of Shri H.K. Dass and recompute the taxable wealth in this case. 5. In the result, the appeal is allowed.
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1982 (5) TMI 82 - ITAT CHANDIGARH
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... ... ..... tries (1978) 112 ITR 421 (P and H) while dealing with reference in respect of the Tribunal s finding on cash credit u/s 256(2) held as under The question whether the amounts standing as credits in the accounts of a firm were genuine or bogus is one of fact. Whether the Appellate Tribunal has given a finding that the amounts shown as cash credits belonged to certain bona fide investors and while giving such finding the Tribunal also incidentally decides a question of law, it does not imply that the said question of law also arises out of the decision given by the Tribunal and the Tribunal cannot be called upon the state any question of law for decision by the High Court. Looking to the finding of the Tribunal, as a whole, and having guidance from the decision in the case of Jamna Auto Industries, we are unable to accept the request of the concerned Commr. Seeking reference u/s 256(1) in respect of the above noted question. 6. In the result, reference application is dismissed.
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1982 (5) TMI 81 - ITAT CHANDIGARH
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... ... ..... e s claim, to our mind. Undoubtedly, the assessee had Rs. 5,100 as her opening balance and subsequently deposited another Rs. 5,000 and even if it was a case of tax planning as per the incidence of tax of Sri Kishan was reduced by reducing his share from 50 to 25 , the ITO could not snatch that privilege of the assessee because it is trite law that legal avoidance of tax by proper tax planning, is permissible. We hold that the firm was genuine and registration was correctly directed to be accorded by the AAC for the reasons given in his order because it is trite law now that contribution of skill and capital is not even necessary for genuinenss of the firm. It is certain other elements which make the firm genuine and the same are given in s. 4 of the Indian Partnership Act. There is no controversy about the fact that al these elements were there in the instant case. Registration of the firm was, therefore, rightly allowed. 6. In the result, the revenue s appeal is dismissed.
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