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Showing 121 to 140 of 189 Records
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1986 (10) TMI 70 - ITAT BOMBAY-D
Accounting Year, Guest House, Income Deemed To Accrue Or Arise In India, Income Tax, Indian Company, Special Allowance
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1986 (10) TMI 69 - ITAT BOMBAY-C
Individual Property Into HUF Property, Net Wealth, Subject Matter ... ... ... ... ..... o be included in the hands of the transferor for all time ? 8. In the above illustrations we have used the word transferor to mean the person who impresses property with the character of HUF property or makes the transfer within the meaning of section 4(1A) and we have used the term transferee to indicate the recipient HUF. In our view in either instance where the property which was the subject of transfer has ceased to exist as property qua the transferor or the transferee and neither has received any consideration for the same, on being divested of the ownership of such property, no value can be included in the hands of the transferor in respect of the property or asset which was originally its subject-matter of transfer. 9. We therefore hold that in the present case the amount of Rs. 7,948 has to be excluded from each of the assessment years 1972-73 to 1974-75 and Rs. 11,764 has to be excluded for the assessment year 1975-76. 10. The result is, all the appeals are allowed.
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1986 (10) TMI 68 - ITAT BOMBAY-B
A Partner, Actual Cost, Written Down Value ... ... ... ... ..... f the present case. In the circumstances, we are of the opinion that the Commissioner (Appeals) has rightly disallowed the claim of the assessee, on this score. 19. In the result, the appeal of the assessee is partly allowed. 20. As regards the ground in the revenue s appeal, the Commissioner (Appeals), while considering the payment of excess remuneration to the directors have mentioned that the directors were highly qualified persons and they had come to the assessee-company after resigning from Exomet and no increase in pay was given to them for last two and a half years. In addition to that they had devoted extra time to the business of the assessee-company which resulted in an increase in the profits of the company. Therefore, justification given by the company for excess remuneration to the directors is justifiable. We agree with the reasoning given by the Commissioner (Appeals). The department s appeal has no merit and deserve to be dismissed and it is hereby dismissed.
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1986 (10) TMI 67 - ITAT BOMBAY
Deemed Gift ... ... ... ... ..... as much before in the year 1945. Furthermore, in 1945, it could not have been anticipated that the property would fetch a market value as high as Rs. 76 lakhs and odd as estimated by the GTO. This line of reasoning we have given in our order to show that the object of section 4(1)(a) was to enrope those transactions which were deliberately or consciously made at a price lower than the market value if at all the object of the section is to be taken into consideration while construing that section. 22. In the result, the appeal is allowed. Per Shri B.S. Ahuja, Judicial Member -- I concur with the order proposed by my learned brother that there is no gift involved in this case. In my opinion, however, reading the plain words of section 2(xii) the requirement that transfer should be voluntary would apply even to a deemed gift, because it would be illogical to hold that a transfer without consideration must be voluntary to be a gift but for inadequate consideration need not be so.
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1986 (10) TMI 66 - ITAT AMRITSAR
Appellate Assistant Commissioner, Appellate Orders ... ... ... ... ..... s the assessee to a benefit of making his another ground to be appealable, the assessee surely is entitled to that benefit. An appellate authority can allow or reject a ground but cannot take that ground to be sham or non-existent. We do not see any merit in this novel approach of the AAC. Again it is worth mentioning that the AAC has, in fact, adjudicated on the ground to conclude that it lacks in substance. The adjudication having taken place ground will have to be considered as taken and as stated earlier, the assessee can get the benefit in getting the other ground about charging of interest under section 217 entertained. We reverse the decision of the AAC on this point and restore it to his file for fresh disposal in accordance with law. It is not correct on the part of the assessee s authorised representative to raise the issue on merits before us for the first time. 3. In the result, the appeal of the assessee may be treated to be allowed for statistical purposes only.
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1986 (10) TMI 65 - ITAT ALLAHABAD-C
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... ... ..... firmed the order of the ITO. 8. The assessee was absent as noted above and the only point for consideration is whether the labour mates can be equated with the sub-contractors. It is a matter of common knowledge that the main contractor from the point of view of convenience generally engages sub-contractors, mates etc., so as to complete the work within the stipulated time. In this way, he had to pay the remuneration to the labour mates, in lieu of the work done. The payment to the labour mates was made by the tune of Rs. 10,39,000. As such, the deduction of tax at the requisite rate was a mandatory duty of the assessee. Since the assessee failed to produce anything before us to show that either the assessee was under no obligation to deduct tax or absolved of its duty in this regard in the given set of circumstances, we hold that the order of the CIT (A) is in accordance with law and no interference in the matter is called for. 9. In the result, the appeal is partly allowed.
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1986 (10) TMI 64 - ITAT ALLAHABAD-B
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... ... ..... re supported the decision of the Hon ble Allahabad High Court in CIT vs. Bagraj and Co. (1975) 117 ITR 694 (All). In this case, their Lordships of the Allahabad High Court held that the cost of food supplied to the low-paid employees of the assessee-firm would be business expenditure and can not be disallowed as entertainment expenses under s. 37A of the IT Act, 1961. (4) The next dispute relates to the deletion of disallowance of Rs. 3,000 on account of vehicle maintenance. We have heard the parties. We find that the AAC has based his decision on the order of the Tribunal in the identical circumstances in the asst. yr. 1975-76 in ITA No. 2065 (All) of 1979. We have considered the decision of the Tribunal and we find that in identical circumstances, the disallowance on account of vehicle maintenance was deleted by the Tribunal. The AAC has only followed the decision of the Tribunal. We, therefore, upheld the finding of the AAC. 8. In the result, the appeal is partly allowed.
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1986 (10) TMI 63 - ITAT ALLAHABAD-B
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... ... ..... een established. Even if a letter of confirmation had been filed that would be of little assistance to the assessee, because the capacity of Shri Hari Lal to advance the amount has not been proved. We, therefore, uphold the order of the CIT(A) on the point. 5. As regards the deposit by Shri B. Lal is concerned, we find that the said depositor was not produced nor any letter of confirmation from him was filed. That apart, it is undisputed that during the asst. yr. 1974-75 as well, the assessee had shown some deposits by Shri B. Lal. Such deposit was held to be ingenuine and was added to the assessee s income and the addition was upheld in appeal by the Tribunal. This is a circumstance to suggest that the deposit reflected in the assessee s account books during the year under consideration is also not genuine. We, therefore, find no force in the appeal on the point and we hereby approve of the order of the authorities below. 6. In the result, the appeal stands allowed in part.
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1986 (10) TMI 62 - ITAT ALLAHABAD-B
Exemption, Residential House ... ... ... ... ..... be held that no structure was in existence at the relevant time. The report of the approved values shows that the structure was in existence. However, Shri. Srivastava referring to the description of the structure in the approved valuer s report, has argued that serious cracks had occurred in walls of the structure and for that reason, the house had become dangerous and was not habitable. We are unable to accept the argument. The matter fact that serious cracks had occurred in the walls of the house would not disentitle the A. P. to get the relief, which is otherwise available to him. Even if the house had become quite unsafe for human habitation, then too, in our opinion, it would not lose the character of residential house. 7. In view of the above discussion, we find that the appellant is entitled to the exemption under section 33(1)(n) of the Estate Duty Act, in respect of the residential house at Morvi and we hold accordingly. 8. In the result, the appeal stands allowed.
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1986 (10) TMI 61 - ITAT ALLAHABAD-B
A Partner, Actual Cost, Written Down Value ... ... ... ... ..... held that the assessment was being made on a dead person. In any event, it was only a misdescription of the assessee in the assessment order and such misdescription, in our opinion, does not vitiate the proceedings. If we accept the appellant s contention on the point, then we would have to hold the appeal is incompetent and merits dismissal, because Kunwar Girwar Singh through Administrator General is the appellant before us. 6. Since Kunwar Girwar Singh is dead and no return of wealth was filed by him, despite issue of notice under section 14(2) and his estate is being managed by the Administrator General the assessment can be made on him by virtue of section 19(2) read with section 21 of the Act. We, therefore, find no illegality or irregularity in the order of the Commissioner (Appeals) in setting aside the assessment and directing the WTO to make a fresh assessment, after invoking the provisions of section 19. 7. The appeal, therefore, fails and is accordingly dismissed.
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1986 (10) TMI 60 - ITAT ALLAHABAD-A
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... ... ..... than 20 per cent. the WTO has to adopt the market value of such assets for the purposes of the Act. This apart from the position that the resort to s. 7(2) itself is discretionary and optional, the provision being an enabling one. We find that the decision of the Hon ble Supreme Court in the case of Juggilal Kamlapat Bankers vs. WTO is on all fours in this case. Accordingly, the AAC was incorrect in his decision in directing in directing the WTO to accept the value of the assessee s interest in the partnership firm as returned. Accordingly, we set aside the orders of the AAC and restore the matter at his file with the directions that he shall determine the value of the assessee s interest in the partnership firm in accordance with the directions of their Lordships of the Juggilal Kamlapat Bankers vs. WTO after affording reasonable opportunity of being heard to the parties. 6. In the result, all the four appeals of the Revenue are treated as allowed for statistical purposes.
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1986 (10) TMI 59 - ITAT ALLAHABAD-A
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... ... ..... d electing to remain a partner. He was already a Partner and he continues as a partner. 5. In the case before us, none of the minors have opted out during the year under consideration. Therefore, they continue to be the partners of the firm and as such the firm is entitled to continue the registration. 6. The argument that Zakia Bano should be presumed to have attained majority in the year 1981 when she was married, also does not appear to be sound. It is well settled that the provisions of the Indian Majority Act do not apply to matters relating to marriage, dower and divorce in the case of Mohammedans. A Mohammedan of sound mind who has attained puberty may enter into a contract of marriage. In the absence of evidence, the puberty is presumed on completion of the age of 15 years. That being the position, it cannot be presumed that Zakia Bano attained majority in the year 1981. 7. For the reasons stated above, we find no merit in the appeal and it is consequently dismissed.
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1986 (10) TMI 58 - ITAT ALLAHABAD-A
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... ... ..... relied on by the assessee. Having regard to the entirety of the facts of the case, we are of the opinion that there is force in the submissions made on behalf of the Revenue in respect of this point. As noted earlier, the ITO has adopted the same ALV for the self occupied portion and rented portion, but as pointed out by the AAC the let out portion related to the ground floor in which there are commercial facilities and potentialities as compared with the upper storeys occupied by the assessee. In the circumstances of the case, we are of the opinion that it would be appropriate to reduce the ALV of the self occupied property keeping in view of the fact that the upper storeyes have lesser commercial potentialities and commercial facilities, at Rs. 9,500. The ITO is, therefore, directed to recompute the addition in the light of the above direction. The order of the AAC is, therefore, modified, to the above extent. 10. In the result, the appeal by the Revenue is partly allowed.
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1986 (10) TMI 57 - ITAT ALLAHABAD-A
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... ... ..... High Court as mentioned above and the decision of the Tribunal. The Departmental Representative according to AIR for assessee failed to place relevant papers before us to show whether the S.L.P. was granted or not. On the absence of relevant papers, it would be academic to refer the matter to the Hon ble High Court because the matter is already concluded. 6. We have considered the submissions of the parties and have gone through the material placed on record. It is obvious from the aforesaid discussion that the issue is concluded by the decision of the Hon ble Allahabad High Court in the case of M/s. Cawnpore Club Ltd. and no Supreme Court decision was placed before us so as to establish that the Special Leave Petition was granted. The Department does not know as to what order has been passed on the Special Leave Petition. On the aforesaid facts, we are of the opinion that there is no merit in the Reference application. 7. In the result, the Reference Application is rejected.
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1986 (10) TMI 56 - ITAT ALLAHABAD
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... ... ..... ct remains that the list was filed before AAC and Shri S.K. Garg made a submission at the Bar that the list was submitted before the ITO. We are of the opinion that it is customary that gifts are received by the Hindu ladies on such ceremonial occasions and it is entirely the stridhan of the ladies. The investment of a small amount of Rs. 4,500 by the assessee, in no way, can be considered to be the unexplained investment. Neither the ITO nor the AAC has looked into the entire facts and have not taken notice of the fact that the assessee enjoyed a good status and, therefore, it cannot be doubted that the assessee received gifts amounting to Rs. 4,500. We, therefore, agree with the submission of the authorised representative for the assessee and held that the investment of Rs. 4,500 should have been accepted by the authorities below. The addition is deleted provided the list was filed before the ITO. 5. In the result, the appeal is treated as allowed for statistical purposes.
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1986 (10) TMI 55 - ITAT AHMEDABAD-C
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... ... ..... ble Bombay High Court in the case of Rowji Sojpal is contrary to the one in the case of Narayanaswamy. Since the decision of the Hon ble High Court of Bombay is binding on us, as it was pronounced prior to the formation of the State of Gujarat, we are of the view that the assessee HUF would not be entitled to claim benefit as contemplated under s. 54B of the Act, irrespective of the fact that the words in the case an assessee being an individual inserted under s. 54 of the Act with effect from 1st April, 1983, were not inserted under s. 54B of the Act. In this view of the matter we would uphold the order of the Commissioner (Appeals) on the point. 8. Before we part with this order, it may be mentioned that no specific arguments were advance on behalf of the assessee regarding the fair market value of the land in question as on 1st Jan., 1954. We would, therefore, uphold the order of the Commissioner (Appeals) on this issue also. 9. In the result, the appeal is party allowed.
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1986 (10) TMI 54 - ITAT AHMEDABAD-C
A Firm, Capital Gains ... ... ... ... ..... on. 44. As regards ground No. 11 we on the basis of the reasoning given in para 10 of the order of the Tribunal reject the same. As regards ground No. 12 we uphold the order of the Commissioner (Appeals) whereby he has confirmed an addition of Rs. 500 in respect of perquisite value of telephone although the Tribunal had confirmed deletion of the entire amount in the assessment year 1980-81. Ground No. 13 is also decided against the revenue in view of the decision of the Tribunal in para 4 of their order. 45. As a result, the appeal, of the revenue is dismissed. 46. Before we part with this appeal, we would like to compliment the learned counsel for the assessee as well as the learned standing counsel for the revenue in whose case it was his maiden appearance before the Tribunal. Both of them have argued commendably well and each has sought to support his case with zeal and enthusiasm that arises from a command of the language and a thorough acquaintance with legal principles.
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1986 (10) TMI 53 - ITAT AHMEDABAD-B
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... ... ..... Therefore, the situation not only is not anomalous but in a way indicates that the interest payable under s. 214(1) is not upto the date of the first assessment, but upto the date of the revised assessment. Section 214(1) and s. 244 operate in different fields and s. 244 is not determinative of the construction to be placed on s. 214(1) . 7.3. In view of the legal position laid down in Bardolia s case, we do hold that the assessee is not entitled for interest under s. 244(1A) but, on the other hand we also hold that payment of interest under s. 214 is to be regulated in accordance with the same judgment. The ITO is directed to do so. 7.4. As regards the question of interest under s. 244(1A) or s. 214 on tax payment under s. 140A, we hold that grant of such interest would not arise in view of our decision as regards interest on advance-tax payments. 8. As a result, the appeals of the Revenue are allowed subject to our direction in respect of interest under s. 214 of the Act.
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1986 (10) TMI 52 - ITAT AHMEDABAD-B
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... ... ..... r the purpose of business. It is because the firm owned this machinery that the depreciation has been allowed on the value of the machinery. Now the balancing charge represents exceeds of within down value over the actual cost. Such difference is deemed to be profits of the previous year in which the sale takes place. The difference i.e., balancing charge is nothing but excess depreciation mistakenly granted to the assessee. Thus when the depreciation is allowed to the firm on the footing that the asset is owned by the firm fiction laid down in s. 41(2) would operate and apply with equal force in case of taking over of an asset of the firm by a partner, of course, the condition inter alia is that there must by a sale or the asset must be bold . We have already pointed out earlier that on facts of the case, ingredients of sale are present in the transaction and therefore, in light of the above discussion we uphold the decision of the authorities below and dismiss this appeal.
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1986 (10) TMI 51 - ITAT AHMEDABAD-B
A Partner, Actual Cost, Written Down Value ... ... ... ... ..... the depreciation has been allowed on the value of the machinery. Now the balancing charge represents excess of written down value over the actual cost. Such difference is deemed to be profits of the previous year in which the sale takes place. The difference, i.e., balancing charge is nothing but excess depreciation mistakenly granted to the assessee see CIT v. Express News Papers Ltd. 1964 53 ITR 250 (SC) at page 254 . Thus, when the depreciation is allowed to the firm on the footing that the asset is owned by the firm fiction laid down in section 41(2) would operate and apply with equal force in case of taking over of an asset of the firm by a partner of course the condition, inter alia, is that there must be a sale or the asset must be sold . We have already pointed out earlier that on facts of the case ingredients of sale are present in the transaction and, therefore, in light of the above discussion we uphold the decision of the authorities below and dismiss this appeal.
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