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Case Laws
Showing 101 to 120 of 224 Records
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1984 (4) TMI 133 - ITAT MADRAS-D
Bench Of Tribunal, Supreme Court ... ... ... ... ..... ded provisions should be applied and the borrowed capital should be deducted in arriving at the capital base, those decisions should be followed. This is an argument on merits. The point of difference referred to me is confined to the question whether the order of the Tribunal in the case of Sundaram Fasteners Ltd. should be relied upon or not. I will not, therefore, be able to go into the merits of the case and apply the rules laid down by these three High Courts. Anyway, since the matter is not finally decided by the Tribunal, I am of the opinion that no prejudice is caused to the interests of the revenue. As soon as the decision of the Supreme Court is available, it is open to the department to immediately apply it and pass orders in accordance therewith. I am, therefore, unable to decide the matter conclusively, one way or the other, on merits. 5. The matter will now go before the regular Bench for the disposal of the appeal in accordance with the opinion of the majority.
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1984 (4) TMI 130 - ITAT MADRAS-C
Debt Owed, Estate Duty, Net Wealth, Tax Liability, Wealth Tax ... ... ... ... ..... consideration, there is another aspect on this point. The estate inherited by the assessee from the mother, Smt. Umayal Achi, can only be taken as the net value of the estate inherited after excluding all the debts and encumbrances attaching to the estate and it cannot be regarded as consisting of number of assets and debts owed or outstanding by the assessee to be claimed as a deduction from the total value of the assets. From this angle also it is clear to us that the wealth-tax liability of Smt. Umayal Achi cannot form part of the net wealth of the assessee. 6. So far as the estate duty liability is concerned, it is undisputed that it is a liability of the assessee as an accountable or one of the accountable persons entitled to the estate of the deceased and as admittedly it has not been discharged or paid within the stipulated period of one year contemplated under section 2(m)(iii) the assessee is not entitled to deduction 7. In the result, the appeals are partly allowed.
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1984 (4) TMI 127 - ITAT MADRAS-B
Capital Gains, Expenditure Incurred, Horse Racing, Set Off ... ... ... ... ..... a HUF is an artificial entity which cannot have a personal effect. But that view ignores the fact that it is only a body of human beings and in any event the definition of capital asset in section 2(14) excludes personal effects, that is to say, movable property held for personal use by the assessee or any member of his family depending on him. Surely, every member of the HUF is dependent upon the HUF and assets held for the pursuit of a hobby cannot but be regarded as a personal effect. In the circumstances, we are of the opinion that the income to be computed under the head Income arising from horse racing has to be computed only with reference to the expenditure incurred for maintaining the horses and the receipts by way of stake money and the winnings from bettings on the horses. We, therefore, set aside the orders or the authorities below and direct the ITO to recompute the income taxable under this source accordingly. 14. In the result, the appeal is treated as allowed.
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1984 (4) TMI 124 - ITAT MADRAS-A
Business Expenditure ... ... ... ... ..... , the Chief Electrical Inspector of the Government of Tamil Nadu, which established that the machinery had been installed and used in the previous year. The Commissioner has referred to a certificate given by an employee of the assessee before the ITO giving the dates on which several machines had been installed containing a different date for these machines. But that document cannot prevail over the statement of an independent authority, namely, the Chief Electrical Inspector of Government, who has actually inspected and reported that the machineries were installed and used in January 1977. Perhaps the Commissioner had no time to look into these aspects of the case since he made the order within three days of the show cause notice. It is clear that the revision made under section 263 was wholly unjustified by the facts of the case and in the face of the circulars of the Board which were binding on the Commissioner. We must, therefore, cancel his order. The appeal is allowed.
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1984 (4) TMI 122 - ITAT JAIPUR
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... ... ..... ssee to file a report of the valuer. Report of the valuer can constitute an evidence but it cannot constitute a material fact necessary for making the assessment. For want of evidence the ITO may reject the contention of the assessee, but he will not be handicapped in making the assessment in any way. One more point, which we want to highlight is that in the order of the asst. yr. 1973-74 the ITO himself mentioned that he would make a reference to the Govt. Valuer. If the doubted the version of the assessee and if he wanted the report of the government Valuer, then he should have obtained the said report and then completed the assessment. He cannot make an incomplete or provisional assessment order, subject to the action to be taken under s. 147 on the basis of the report of the Govt. Valuer. For the reasons, we uphold the combined order of the AAC. 3. In the result. The appeals of the Revenue are dismissed and the cross-objections not claiming any relief, are also dismissed.
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1984 (4) TMI 121 - ITAT JAIPUR
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... ... ..... nder s. 147 (a) on the wholly untenable ground that material facts necessary for making the assessment were not disclosed fully and truly by the assessee. We fully agree with Shri Rank and we do not see any reason why the ITO could not have taken the view at the stage of the original assessment, which the took in the reassessment proceedings, No new facts have come to the knowledge of the ITO in the reassessment proceedings, except the one that he changed his opinion on the legal position. In the assessment order also, the ITO has not specify as to which facts material for making the assessment were not disclosed fully an truly by the assessee. The AAC though affirmed the order of the ITO but he also has not amplified in the order as it which facts were not disclosed by the assessee, which may attract the application of s. 147 (a). For the reasons we hold that the initiation of the assessment proceedings is not valid and quash the reassessment order. 3. The appeal is allowed.
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1984 (4) TMI 120 - ITAT JAIPUR
Account Books, Assessment Year, Interest Income, Per Annum ... ... ... ... ..... uditors notes. Having regard to the above discussion, I am in agreement with the learned Judicial Member that there was no agreement between the parties to charge compound interest and that no compound interest was, in fact, charged by the assessee-company from the debtor-company. The document in the form of Exhibit No. 107 is a relevant piece of evidence. However, it cannot be inferred from this document that the assessee-company was charging interest on the loan at compound rate of interest or that there was any agreement between the parties to charge compound interest. 8. In the result, my order will now go to the Bench for disposal of the appeals according to the majority view. ORDER UNDER SECTION 255(4) As per the opinion of the majority, it is held that there was no agreement between the parties to charge compound interest and that no compound interest was in fact charged by the assessee-company from the debtor-company and in the result, all the appeals stand dismissed.
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1984 (4) TMI 119 - ITAT INDORE
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... ... ..... rough an account payee cheque was sufficient to tax the amount without consideration of any explanation of the assessee under s. 68 the amount can be taxed only if the assessee fails to satisfy the ITO. The ITO did not proceed on the lines of s. 68 and did not consider the explanation offered by the assessee about the nature and source of the aforesaid amounts. In the order passed under s. 154, he had felt satisfied about two of the three loans referred to above. The ld. AAC also did not consider the matter in the right perspective as required by s. 68. The result, therefore, is that the matter has to be remanded to the ITO to reconsider the three items of alleged borrowings from the angle of s. 68 of the IT Act. The assessment order as well as the order under appeal, is, therefore, set aside so far as they relate to the above alleged borrowings. The ITO shall deal with them in the light of the provisions of law and pass suitable order. 5. The appeal is, accordingly, allowed.
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1984 (4) TMI 118 - ITAT INDORE
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... ... ..... ioned and, accordingly, there is no liability on the legal representative of the deceased under s. 19 of the GT Act for payment of any penalty under s. 17 of the said Act. To support the above contention, he has placed reliance on the decision of the Madhya Pradesh High Court in CIT vs. Abdul Majid (1983) 11 ITC 252 (MP). The ld. representative of the Department has not been able to rebut the above contentions of the ld. counsel. 5. After hearing the ld. representatives of the parties and goind through the record, we find considerable force in the contentions of the ld. counsel. For all the three reasons advanced by the ld. counsel, which have not been rebutted by the ld. representative of the Department, we are firmly of the view that the levy of penalty under s. 17(1)(a) of the GT Act of Smt. Jijibai Shinde, legal representative of the deceased, Smt. Lilabai Matkar, is totally unjustified and, accordingly, we cancel the said penalty. 6. In the result, the appeal is allowed.
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1984 (4) TMI 117 - ITAT INDORE
A Firm, Application For Registration, Change In Constitution Of Firm, Firm Registration, Registered Firm, Two Partners, Unregistered Firm
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1984 (4) TMI 116 - ITAT INDORE
Carrying On Business, Firm Registration, Registered Firm ... ... ... ... ..... se so-called expenses debited to the profit and loss account were, therefore, rightly disallowed. For the same reason, a sum of Rs. 6,353 paid to Oswal Trading Co. as interest during the assessment year 1977-78 was rightly disallowed. Salary amounting to Rs. 9,100, Rs. 10,000 and Rs. 10,800 pertaining to the assessment years 1976-77, 1977-78 and 1978-79 was disallowed in the case of Oswal Trading Co. These were amounts paid to Maneklal and Rajendrakumar. In view of the finding that the business in the name of Oswal Trading Co. was the business of Ghasiram Kaluram itself of whom the aforesaid persons were partners, these payments could not be allowed as a business expenditure. Similarly, interest paid to Smt. Chandbai (Rs. 687 in the assessment year 1977-78 and Rs. 915 in the assessment year 1978-79) could not be allowed as a business expenditure, being the interest paid to one of the partners. 19. In view of the above findings, all these appeals fail and are hereby dismissed.
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1984 (4) TMI 115 - ITAT INDORE
Assessment Order, Time Limit For Completion ... ... ... ... ..... or the IAC to give his proper attention to the matter. We, therefore, hold that in terms of clause (iv) of Explanation 1, the whole time commencing from the date on which the draft order is put in the course of transmission to the assessee and ending on the date on which the directions of the IAC are received by the ITO has to be excluded. Since in the case before us, admittedly, the draft assessment order was put in the course of transmission to the assessee before 31-3-1981, i.e., within the period of limitation, it cannot be said that the assessment had become time barred because the draft assessment order was served on the assessee on 1-4-1981. It was not contended before us or before the authorities below that even if the period prescribed under clause (iv) of Explanation 1 of section 153 is excluded, the assessment made on 25-8-1981 was barred by time. 8. In view of the above discussion, this appeal has no force and is liable to be dismissed. 9. The appeal is dismissed.
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1984 (4) TMI 114 - ITAT HYDERABAD-A
Accounting Year, Change In Constitution Of Firm, One Partner, Two Partners ... ... ... ... ..... tended for by the revenue in ground No. 4. In ground No. 4 the revenue has urged that in the present case the partners failed to comply with the requirements of the section and the rules governing the registration of firms. This in essence is the contention of the revenue. We have elucidated how there has been no failure to comply with the strict requirements of the section and the rules governing the registration of firms. This being the position, though for reasons different from those set out by the AAC, we have to hold that continuation of registration has to be allowed. 9. We are unable to agree with the learned departmental representative that we have to read anything more into the rules than that which the plain words of the rules warrant. We do not have to consider what would have been the position if, instead of the declaration, application has to be made in Form No. 11 or Form No. 11A because that is beside the point here. 10. The result is, the appeal is dismissed.
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1984 (4) TMI 113 - ITAT HYDERABAD-A
Agricultural Land, Family Hotchpot, Held By Assessee, Impartible Estate, Income From House Property, Individual Property, Minor Child
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1984 (4) TMI 112 - ITAT DELHI-D
General Public Utility, Income From Property, Insurance Commission, Religious Trust ... ... ... ... ..... hat when a business was carried on, the activity was for profit and, therefore, the charitable purpose involved the carrying on of an activity for profit. The new test laid down by the Supreme Court was to consider the dominant object of the activity, i.e., whether it was profit-making or carrying out the charitable purpose. If we apply the above tests to the two activities of the assessee-society, then it is obvious that profit-making was the dominant or the only object of carrying on the insurance business. Similar is the position in respect of shilpkala kendra. The facts as indicated above do point unmistakably to the inference that profit-making was the dominant object and charitable purpose was only a subservient object of running the shilpkala kendra. Thus, both the activities of the assessee before us disentitle it to exemption of its income from the two said activities. We, accordingly, confirm the order of the Commissioner (Appeals) and dismiss the assessee s appeal.
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1984 (4) TMI 111 - ITAT DELHI-D
Revised Return ... ... ... ... ..... the time limit for completing the assessment and say that the extended time limit is not the time within which the assessment can be made. As regards the submission that a revised return can be filed only when the assessee discovers an omission or a wrong statement in the return filed under section 139(1) or (2) or the revised return can be filed only once. I am of the view that the revised return is a substituted return under section 139(1) or (2) and there is no material difference between the return filed under section 139(1), 139(2) or 139(5). For this purpose, I derive support from the observations of the Supreme Court in the case of CIT v. Kulu Valley Transport Co. (P.) Ltd. 1970 77 ITR 518. Accordingly, I agree with the learned Accountant Member that the revised return filed by the assessee on23-1-1978was a valid return and, therefore, the assessment completed on1-3-1978was within time. 8. The order will now go to the Bench for decision according to the majority view.
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1984 (4) TMI 110 - ITAT DELHI-D
Charitable Or Religious Trust, Deemed Income, Income From Property, Public Charitable Trust, Voluntary Contributions
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1984 (4) TMI 109 - ITAT DELHI-D
Industrial Undertaking, Profits And Gains, Raw Material ... ... ... ... ..... ess the matter is gone into in depth with an analysis of all the aspects of the work done and also a clear motion of the various concepts involved in the section itself, a decision cannot be made. Reference has been made to the decisions dealing with book binding, the case of chillies, manufacture of bidis, etc., in an attempt to allow or disallow the claim for relief. In our view, an analogous approach to the problem rather than an attempt to answer the question which directly arises from the assessee s own activities themselves cannot help us to decide the issue. We, therefore, consider it proper to remit the matter back to the ITO to gather all the details about the nature of the activities carried on by the assessee and come to the correct legal conclusion having regard to the precise scope of the various concepts obtaining in the section. The assessee must be given full opportunity to produce all the details. 10. For statistical purposes the appeal is treated as allowed.
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1984 (4) TMI 108 - ITAT DELHI-C
Appellate Assistant Commissioner, Applied To, Assessee's Appeal, Assessment Order, Change In Previous Year
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1984 (4) TMI 107 - ITAT DELHI-B
Appellate Authority, Business Expenditure, Mercantile System, Sales Tax Act, Sales Tax Authorities, Trading Liability
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