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Case Laws
Showing 101 to 120 of 249 Records
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1984 (1) TMI 165 - ITAT MADRAS-C
Expenditure Incurred, For The Purpose Of Business ... ... ... ... ..... nses on stay and does not cover other expenses incurred provided they are not personal and are exclusively for the purpose of business. Since the illustrations of the nature given by Shri Vaish can be multiplied, we do not wish to embark upon any speculation of the category of such expenses, but we would only say that rule 6D read with section 37(3) seeks to limit the expenditure incurred on travelling to the extent of stay in hotels confining it to daily allowances referred to in rule 6D and do not extend to any other expenditure incurred provided that expenditure was for the purpose of business. 3. Applying this test to the facts of the case before us, we are of the view that the expenditure incurred by the assessee before us, though reasonable, comes within the category of expenditure referred to in rule 6D and is, therefore, subject to the limitation provided therein. With these observations, we would agree with the view taken by our learned brother, expressed so lucidly.
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1984 (1) TMI 162 - ITAT MADRAS-B
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... ... ..... partner vis-a-vis the income of the firm and answered that on principle payment of salary to a partner represents a special share of the profits and is, therefore, part of the profits and taxable as such. In the light of the ratio of the Supreme Court we have to uphold the orders of the authorities as in strict law there cannot be a contract of service or employment between a firm and its partners and the remuneration received by the partner should, therefore, be treated as a special share of profits. When once it is held that the salary is nothing but a special share of profits and taxable as such, the question of treating it as salary and consequently the question of allowing standard deduction under s. 16(i) does not arise. In view of the cogent reasons advanced by the ITO as well as the reasons adduced by the AAC, we have no hesitation in upholding the order of the AAC and consequently we reject the grounds taken by the assessee. 6. In the result, the appeal is dismissed.
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1984 (1) TMI 159 - ITAT MADRAS-B
Appellate Assistant Commissioner ... ... ... ... ..... merits of the case insofar as the facts are concerned, namely, the excess payment to advance tax over the tax ultimately determined in the regular assessment which includes the order giving effect to the appellate order of the AAC or the revisional order of the Commissioner. Even the decision of the Madras High Court in the case of Rayon Traders (P.) Ltd. v. ITO 1980 126 ITR 135 will support the claim for payment of interest under section 214(2) when once it is found that the advance tax paid was in excess of tax determined payable on regular assessment. We are not concerned with this issue at all in these appeals. Since the issue is confined to the maintainability of the appeals we have confined our attention to this limited issue and after considering all the facts and circumstances of the cases, we have to uphold the grounds taken by the revenue and, consequently, set aside the orders of the AAC and restore the orders of the ITO. 6. In the result, the appeals are allowed.
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1984 (1) TMI 156 - ITAT MADRAS-B
Balancing Allowance ... ... ... ... ..... year in which the scrap value is taken into account and the loss is written off because we are primarily concerned with the accounting of the value of the machinery by taking the view that the reference to the use of the machine in the business is the treatment of the asset as commercial asset and not the actual use. The period between the discarding of the machine due to the closure of the unit and the actual sale and realisation of the scrap value has to be treated as the passive user of the commercial asset in the continuing business of the assessee. In this view, which comments itself to us, we are of the considered opinion that the assessee is entitled to the deduction of Rs. 31,385.50 claimed in computing the total income of the previous year relevant to the assessment year under appeal. We, therefore, direct the ITO to recompute the total income and we also authorise him to amend the assessment of the partners as a consequence. 5. In the result, the appeal is allowed.
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1984 (1) TMI 155 - ITAT MADRAS-B
Property Passing On Death ... ... ... ... ..... either passed or deemed to pass or that we have rejected the accountable person s contention that the deceased had no right of disposition or power of appointment inasmuch as he had no separate right of nomination and even the right of nomination for provident fund etc., was a very restricted right under the Reserve Bank Rules. We do not, however, find it necessary to consider these detailed arguments and adjudicate upon them as the accountable person is entitled to succeed even with reference to the undisputed facts already found and with reference to section 34(3). it is for this reason that we do not consider the argument for and against the application of the decision of the Andhra Pradesh High Court in Smt. Lakshmisagar Reddy s case which dealt with a similar death compensation paid to legal representatives under the service rules of Indian Airlines Corporation. 5. In the result, the order of the first appellate authority is upheld. The departmental appeal is dismissed.
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1984 (1) TMI 154 - ITAT MADRAS-B
Delay In Filing Wealth Tax Return, Late Filing, Reasonable Cause, Voluntary Disclosure Of Income, Wealth Tax Act
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1984 (1) TMI 148 - ITAT MADRAS-A
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... ... ..... no grievance over the amount of compansation enchanted by the Sub-Court. Therefore, in our opinion, the estimated market value of the right to receive compensation cannot be less than the compensation awarded by the Sub-Court which is at the minimum and it is for the authorities to estimate the market value of the right to receive compensation taking into account the peculiar nature of the property, its marketability and all surrounding circumstances including the risk and hazard of litigation looming large at the relevant valuation dates. Respectfully following the judgment and decree of the Madras High Court dt. 30th Aug., 1983 in respect of earlier years, we set aside the orders of the authorities on this limited issue and tester the matter to the file of the WTO with direction to estimate the market value of the right to receive compensation in accordance with the ratio of the Supreme Court, cited supra. 6. In the result, the appeals are allowed for statistical purposes.
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1984 (1) TMI 145 - ITAT MADRAS-A
Capital Gains, Set Off ... ... ... ... ..... her assessment year. The provision under section 80T is only for abatement of the taxable capital gains. In the present case, there is no taxable capital gains because applying the provision of section 71(2) of the Act, the capital gain is set off against the loss from business and, therefore, the question of allowing a deduction under section 80T itself does not arise. In the circumstances, the AAC was in error in directing the ITO to grant deduction under section 80T and we, therefore, reverse his order and restore the matter to the ITO. 4. The AAC has also observed that the assessee not being assessable to tax, there was no justification to demand further compulsory deposit. Though the ground has been taken to say that the AAC had no jurisdiction to deal with the question of compulsory deposit, it was obvious that there is no miscarriage of justice in this direction. Therefore, we are not called upon to interfere the order in this respect. The appeal is treated as allowed.
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1984 (1) TMI 144 - ITAT MADRAS-A
Guest House ... ... ... ... ..... while on tour is a guest house . 6. In the case of the sister concern, the Bench had neither disagreed with the Commissioner (Appeals) in his finding that it is meant for employees on tour nor recorded a finding that it was also intended for the others. Therefore, their conclusion that it is a guest house goes against the cited judgments. That Bench seems to have taken it for granted that any residential accommodation which is not located either in the principal place of business or within the factory premises automatically a guest house . That view is not acceptable to us. There can be a guest house even in the principal place of business or within the factory premises provided it is established and maintained for others. Therefore, we cannot agree with that Bench decision. For these reasons, we hold that the residential flats at Bombay established for employees on tour is not a guest house. Ground rejected. 7. This para is not reproduced here as it involves a minor issue.
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1984 (1) TMI 141 - ITAT JAIPUR
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... ... ..... relevant accounting period. The clubbing of income of the two sons during their minority with the income of the assessee father was justified in view of the provisions contained in s. 64 of the IT Act. But once they attained majority, this provision would not be attracted. We, therefore, do not find any perversity in the orders of the ITO who made assessments for the asst. yr. 1972-73 to 1979-80 so as to make a departure for the asst. yr. 1980-81 under appeal. In view of the above discussions, we are unable to sustain the orders of the authorities below so far as inclusion of the income of the two sons of the assessee from the house property at 10-C, Sriganganagar is concerned. The additions made on this account are, therefore, deleted. 5. The third ground is alternative regarding allowing deduction on account of interest. Since we have deleted the additions, this ground of appeal has become infructuous and is rejected as such. 6. In the result, the Appeal is partly allowed.
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1984 (1) TMI 140 - ITAT JABALPUR
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... ... ..... f Bombay, Gujarat, Allahabad and Madras High Court on which the appellants have placed their reliance. We would, in this connection, reproduce a passage from the decision in the case of Raman Lal Nagji and Dhirajlal Nagji vs. CED (1979) 10 CTR (Bom) 216 (1979) 118 ITR 785 (Bom) There is no gift when a partner is inducted in a sole proprietary business or when shares of partners are reshuffled and give enhanced share of profits and correspondingly an enhanced share in the assets and goodwill for commercial considerations, the actual consideration being that the partners was supposed to work and earn profits CGT vs. Smt. Lalita B. Shah 1976 CTR (Bom) 158 (1979) 118 ITR 794 (Bom), CGT vs. Nagji Dullabhji 1976 CTR (Bom) 166 (1979) 118 ITR 804 (Bom) CGT vs. Karnji Lumbaji (1969) 74 ITR 343 (Guj) and CGT vs. Sardar Wazir Singh (1975) 99 ITR 104 (All) relied on. In view of these, we vacate the finding of the AAC and cancel the assessments made by the GTO. 5. The appeals are allowed.
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1984 (1) TMI 139 - ITAT JABALPUR
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... ... ..... e a partner has been on account of the factors beyond the control of the assessee firm. Revenue cannot be entitled to draw an adverse inference in the matter on the facts of the case. Alternatively, the only case that revenue can put up is that there was no partner like Niraj Nayan Shrivastava. In other words, the claim of the firm that Niraj Nayan Shrivastava, was a partner, is not substantiated by any material. But it is exactly in this context that it is necessary that the material now brought before us is considered. To be fair and just to all parties, we hold that the issue goes back to the ITO once again for reconsideration of the claim of the assessee, for allowing the benefit of registration in the light of the material sought to be produced before us. We, accordingly, vacate the finding of the lower authorities and send back the issue for fresh determination by the ITO. Note Para Nos. 5 to 8 are related to minor controversies and are not, therefore, being reproduced.
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1984 (1) TMI 138 - ITAT JABALPUR
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... ... ..... partnership in a firm. There must be an occasion to compute the total income of such individual. When the individual has no income, there will be no occasion or opportunity to compute the total income of such an individual. Therefore, the contention of the ld. counsel for the assessee that, unless there was a positive income of the individual, there was no possibility of including the share income of the minor, admitted to the benefits of the partnership has to be regarded as correct approach. The view has been upheld by Amritsar Bench of the ITAT in ITA No. 212/Asr/1983 dt. 7th November, 1983, where, while disposing of a similar issue, reliance was placed on the Special Bench decision in ITO vs. S.P. Krishnan Iyer and Others reported in selected orders of ITAT. Accordingly, we reverse the finding of the AAC and direct the ITO to exclude the share income included in the assessment of the individual, who had no income of his own for both the years. 5. The appeals are allowed.
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1984 (1) TMI 137 - ITAT JABALPUR
Assessment Year, Original Assessment ... ... ... ... ..... s consciously chosen any particular previous year, then the financial year should be considered as the previous year. It is open for the firm to have the Diwali year as the previous year for the commission business and financial year for any other business. 37. It is also possible to justify the addition from the angle of section 69. The entries in the loose sheets could be understood to mean the assessee invested Rs. 2 lakhs in some business. They had also taken some loans from others who appear on the credit side in those sheets. These funds have been advanced to the persons shown on the debit side. What has been shown as Rs. 2 lakhs received from partners is the investment made during the year in business. Since the investment was made in the financial year 1973-74, it is properly assessable for the year 1974-75. 38. We, therefore, hold that an addition of Rs. 2 lakhs has to be sustained. 39. The appeal is, therefore, partly allowed. The addition is reduced to Rs. 2 lakhs.
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1984 (1) TMI 136 - ITAT HYDERABAD-B
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... ... ..... ed before the ITO and the Explanation is considered bona fide. In the facts and circumstances of the assessee s case, the application of the Explanation to the assessee cannot lead to a different conclusion. All the facts have been placed by the assessee. In fact, the inference drawn by the assessee in respect of the complete facts placed before the ITO prior toe he assessment have been accepted by the ITO as well by the acceptance of the rectified return. As we have stated earlier, the omission, at least for asst. yr. 1977-78, has to be considered as bona fide. The mere prospect of the ITO making an addition after due enquiry does not disqualify the effect of a revised return filed before such enquiry for this year. There is not positive material for holding that there is absence of bona fide in the facts of assessee s case. It is under these circumstances, we have to allow the assessee s appeal and cancel the penalty of Rs. 2,85,921. 6. In the result, the appeal is allowed.
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1984 (1) TMI 135 - ITAT HYDERABAD-B
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... ... ..... ntity and accounting to the terms of that deed, two new partners namely Smt. P. Appayamma and Sri S. K. Ramarao were brought in as new partners and also one of the erstwhile partners Sri B. Sitaramayya went out of partnership. Therefore, it cannot be said that there is merely a change in the constitution of the firm. We hold that the second firm is a successor firm to the firm which carried on business in the first period. The fact that there are two independent entitles is also strengthened by the fact that continuation of registration was granted to the old firm upto 23rd Sept., 1980 and a fresh registration was granted to the new firm which carried on business from 24th Sept., 1980 to 31st March, 1981. Under the circumstances, it is a case which in fully covered by the ratio of M/s. Vinayaka Cinema. We are unable to find any misappreciation in the facts or misapplication of law in the impugned orders of the AAC. Hence, the appeal is devoid of merits and so it is dismissed.
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1984 (1) TMI 134 - ITAT HYDERABAD-B
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... ... ..... riage of daughter in the particular community and the balance would be a gift on the occasion of the marriage of a relative of the assessee who would only be entitled to exemption u/s 5(1)(vii) upto Rs. 10,000 from the amount which is construed as gift on the occasion of the marriage. Therefore, considering the practice in the community which he was involved viz. jewellers we consider that the case of the assessee herein is on a much stronger footing than that of the cases mentioned earlier. Accordingly considering the view taken by the Supreme Court and various High Courts as mentioned above and also in view of the definite finding of the AAC that these amounts were given in consideration of the marriage looking to the community and the trade in which the assessee was involved, we hold that the order passed by the AAC is in order. Accordingly we are not inclined to interfere with the order passed by the AAC. 14. In the result, the appeal filed by the department is dismissed.
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1984 (1) TMI 133 - ITAT HYDERABAD-B
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... ... ..... tal. We heard Sri Sukhdev Narayan, ld. departmental representative and Sri M.J. Swamy, ld. counsel for the assessee. On behalf of the assessee a paper compilation was filed in which the profit and loss account for the accounting years involved and the particulars of the bill amounts etc., under which the wire mesh was purchased and the particulars of the incidental expenses as well as the sales-tax incurred were furnished. 5. After hearing both sides we one with the AAC while holding that the expenditure is of a revenue nature especially in view of the fact that the poultry is situated as Visakhapatnam which is on sea coast and due to sea breeze we are of the opinion that the wire mesh gets rusted easily and would not endure per a long period. Therefore, due to that reason also it cannot be said that the purchase of wire mesh would bring into existence an asset of enduring nature. We fail to see any reason to interfere with the AAC rsquo s order and hence appeal is dismissed.
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1984 (1) TMI 132 - ITAT HYDERABAD-B
Domestic Company, Intercorporate Dividends ... ... ... ... ..... the ITO has no option to assess family income in the hands of individual or vice versa. No doubt, the AAC s approach that it is not open to the ITO to assess the same asset in the hands of both is certainly correct. But the remedy lies in cancelling the wrong assessment and not the right one. Since the individual assessment has not yet been cancelled the proper course is to make appropriate adjustments in reckoning the tax payable even as directed by the Supreme Court in Bachu Lal Kapoor s case. Insofar as the assessment year 1978-79 is concerned, for the reasons given by us hereinabove, we uphold the order passed by the authorities below in coming to the conclusion that the status of the assessee is that of HUF. In that view of the matter, the order passed by the AAC for the assessment year 1975-76 is modified so as to restore the order of the WTO subject to adjustment of tax paid in individual hands. For the assessment year 1978-79, the appeal by the assessee is dismissed.
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1984 (1) TMI 131 - ITAT HYDERABAD-B
Accounting Year, Development Allowance, Expenditure Incurred ... ... ... ... ..... ed a time limit for disposal of such application and the statute provides specifically that the date of approval or any other date fixed by the order of approval should be reckoned as the date from which the relief is to be granted. Hence, in any event, only an amount of Rs. 18,833 incurred prior to such application would, on the facts and in the circumstances of the case be disqualified even if a very strict interpretation were to be put on the proviso as urged by the learned departmental representative. We hasten to add that we are merely disposing of the alternative ground urged on behalf of the assessee but we hold that the expenditure on the programme incurred during the accounting year will have to be allowed only subject to the extent certified by the accountant as required by sub-section (3) of section 35CC. In the result, the appeal on this ground is treated as allowed. 5. In the result, the appeal is partly allowed in the manner indicated in the preceding paragraph.
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