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Case Laws
Showing 141 to 160 of 222 Records
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1989 (11) TMI 83 - ITAT COCHIN
Assessment Year ... ... ... ... ..... to the exemption relating to 60 of the income derived front the business held by the trust. The 40 is set apart for the benefit of two thavazhies . They are the daughters of younger sisters of the mother of the testator. If these income are to be taxed in the hands of the beneficiaries, it is open to the department to take steps in accordance with law. But so far the Trust is concerned, the entire wealth would be exempt under section 5(1)(i) of the W.T. Act. So we agree with the view of the A.A.C., who held that the assessee was entitled to full exemption under section 5(1)(i) of the Act. Hence, the appeals fail and they are hereby dismissed. 8. The cross objections deal with computation of net wealth, deduction of liability and valuation of assets. Since in our view the assets of the trust would be exempted under section 5(1)(i) of the W.T. Act, the cross objections are dismissed as infructuous. 9. In the result, all the appeals as well as the cross objections are dismissed.
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1989 (11) TMI 82 - ITAT COCHIN
Assessment Year, Foreign Currency, Gift For Education, Gift Tax, Movable Property ... ... ... ... ..... tion of the donor in making the gift was for education of his children, the manner of utilisation of that amount, in whatever form or manner, will not in any way derogate from the purpose of the gift and entitlement to exemption. The education as envisaged in sec. 5(1)(xii) cannot be given a restricted meaning. Education is never ending process or as has been rightly contended it is an on-going process. The Legislature has not put any monetary ceiling. Exemption should be worked out with regard to the intention of the donor, the opportunities available to the donees for further studies, the possibility of diversification etc. Having regard to these factors, we hold that even if all the gifts are held to be taxable, the entire amount was for purpose of education and represented the reasonable amount for the educational needs of the donees. In this view of the matter also we delete the addition sustained by the first appellate authority. 4. In the result, the appeal is allowed.
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1989 (11) TMI 81 - ITAT COCHIN
High Court, Income From Property, Private Trust, Religious Trust ... ... ... ... ..... e learned Commissioner of Income-tax, Kerala, the trustees have specifically stated that the District Court, Quilon, has permitted to start a hospital in the name of the Deity utilising the surplus funds of the temple and on 13-5-1979 a hospital was started for the benefit of the poor. Thus charitable activities are also started under the management of the temple . In response to the petition of the assessee, the Board, by its Notification dated 19-6-1980 had notified the temple to be a place of public worship of renown throughout the State of Kerala for purposes of sub-section 2(b) of section 80G. This will answer the contention of the learned Departmental Representative that the information about starting of the hospital had not been given to the CIT (pages 5 to 7 of the paper book). 20. In the result, the appeal of the Revenue is dismissed. The Cross Objection is only in support of the order of the first apppellate authority and the same is allowed for statistical purposes
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1989 (11) TMI 80 - ITAT CALCUTTA-A
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... ... ..... assessing officer should have completed the assessment under s. 143(3) of the Act. 9. Before determination of income the fundamental question to be considered is who is to be assessed in respect of income of above concern and in whose hand the assessment is to be made. The above question as stated earlier has not been properly considered and decided by lower-authorities. The depositions of Sri Mandanlal Agarwal and Sri Kerorimal Pansari rcorded by the ITO have not been filed before us. Even otherwise we do not have sufficient material to determine the above fundamental question. In these circumstances the order of lower authorities are set aside and the matter is restored to the file of the ITO to find outs to who is the owner of M/s Kerorimal Pansri and Co. and then re-determine its income. In the above view of the matter we deem it unnecesary to deal with other grounds of appeal raised before us. 10. In the result, the assessee s appeal is allowed for statistical purposes.
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1989 (11) TMI 79 - ITAT BOMBAY-E
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... ... ..... come of the same could not be clubbed up in the income of the assessee. In the said decision, it was held that in case of benami transactions, the Revenue has to prove that the apparent was the real state of affairs. What the learned members have held in the said case reads as under The fact remained that the investment in UPEM was made by S, the enjoyment of income was by her and she retained full control over the income and the assets as also the custody thereof and accordingly the apparent being the real state of affairs, could not be disputed. The onus of proof to dislodge the belief about the apparent being the real state of affairs having not been discharged by the Revenue, the AAC s order were upheld . In the light of the above three decision s the commission income of Rs. 38,000 ought to have been subjected to tax in the hands of the trust and not in the hands of the assessee. I, accordingly, reverse the action of the Dy. CIT (A) and allow the appeal of the assessee.
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1989 (11) TMI 78 - ITAT BOMBAY-E
Assessment Year ... ... ... ... ..... income of the same could not be clubbed up in the income of the assessee. In the said decision, it was held that in case of benami transactions, the revenue has to prove that the apparent was the real state of affairs. What the learned Members have held in the said case reads as under The fact remained that the investment in UPEM was made by S, the enjoyment of income was by her and she retained full control over the income and the assets as also the custody thereof and accordingly the apparent being the real state of affairs, could not be disputed. The onus of proof to dislodge the belief about the apparent being the real state of affairs having not been discharged by the revenue, the AAC s orders were upheld. In the light of the above three decisions, the commission income of Rs. 38,000 ought to have been subjected to tax in the hands of the trust and not in the hands of the assessee. I, accordingly, reverse the action of the Dy. CIT(A) and allow the appeal of the assessee.
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1989 (11) TMI 77 - ITAT BOMBAY-E
Assessment Year, Leave Salary, Provident Fund ... ... ... ... ..... count in which he used deposit the salary a little earlier. He simply issued the cheque from Canara Bank because there he enjoyed the cheque facility. There is no controversy about the fact that the assessee also had not kept water-tight compartment of his resources for meeting his various commitments like family expenses, current repairs and investments eligible for deduction under section 80C and investments not eligible for deduction, etc. As a matter of fact, in order to spend his retired life, he had made investments earlier in units introduced by Unit Trust of India in September 1984 from the balance held in his savings bank account with Canara Bank. Simply because technically speaking the money was not withdrawn by the assessee out of the funds accumulated out of salary, it could not militate against the assessee and the benefit under section 80C was to be allowed. The assessee s contention, therefore, in respect of both the grounds are accepted. The appeal is allowed.
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1989 (11) TMI 76 - ITAT BOMBAY-D
Assessment Year, Objections By Assessee, Time Limit For Completion ... ... ... ... ..... taken the view that the ITO having forwarded the draft order on 10-3-1978, the period of limitation stopped running on that date. The ITO had, with him 21/22 days to complete the assessment. The time started running again on 6-8-1978 when the ITO received the IAC s instructions so much so that he could complete the assessment on or before 27-8-1978. In view of the above, we do not find any merit in the contention of the Departmental Representative that the period of 180 days was to be added to the normal time limit. 180 days are to be added only when the period taken by the IAC in giving his directions under s. 144B was more than 180 days. In a case where the period taken by the IAC is less than 180 days, the period actually taken by him alone could be excluded. 9. In view of the aforesaid discussions, we hold that the assessment made by the ITO on 12-8-1982 was barred by limitation and deserves to be cancelled. We direct accordingly. 10. In the result, the appeal is allowed
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1989 (11) TMI 75 - ITAT BOMBAY-B
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... ... ..... In such a situation, the assessee is entitled to furnish to the Assessing Officer or the appellate authority, as the case may be, a declaration in Form DB. Clause (b) of Explanation to s. 18C defines the term case as under (b) case , in relation to an assessee, means any proceedings under this Act for the assessment of the net wealth of the assessee or for the imposition of any penalty on him . It has not been brought to our notice that any proceeding under this Act in relation to the assessee for the assessment of net wealth is pending before the High Court or the Supreme Court. On the other hand, the issue has been concluded by a decision of the jurisdictional High Court which we are bound to follow. Therefore, we would decline to accept the stand of the assessee for acting on declaration under s. 18C(1), confirm the orders of the CWT(A) and dismiss the appeals of the assessee. 11. In the result, the appeal of the Department is allowed and those of the assessee dismissed.
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1989 (11) TMI 74 - ITAT BOMBAY-B
Quoted Equity Shares, Quoted Equity Shares ... ... ... ... ..... Court, is binding and we follow the same. 8. Finally, we may state that we are primarily concerned with the question of the manner of valuing the shares of private limited companies which are not quoted at the Stock Exchange and not whether rule 1D is mandatory or directory. The Supreme Court has spelt out the principles that should be followed for making valuation of such shares. The Bombay High Court have relied on the decisions of the Supreme Court, namely, those in the case of Mahadeo Jalan and CGT v. Smt. Kusumben D. Mahadevia 1980 122 ITR 38 for giving their finding in their latest pronouncement in Mrs. Shardaben D. Mafatlal s case. Therefore, we do not consider it necessary to re-consider our decision of this issue. The arguments advanced by Shri Prasad in this regard are, therefore, rejected. 9. Consequently, we would confirm the orders of the first appellate authority for the resons stated therein and following the authorities mentioned above and dismiss the appeals
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1989 (11) TMI 73 - ITAT BOMBAY-B
Investment Allowance ... ... ... ... ..... nufactured or produced an article or thing as contemplated by sec. 32A(2)(b)(ii) of the Act. The answer to this question is provided in the Special Bench decision of the Appellate Tribunal Daks Copy Services (P.) Ltd. s case. The question before the Special Bench was whether investment allowance is allowable on xerox and photocopying machines for the assessment years 1982-83 and 1983-84 under section 32A of the Act and the Special Bench held that such investment allowance was allowable. In this decision the Special Bench has examined in great detail all the authorities bearing on the subject and also quoted with approval the decision in the case of Amiya Kumar Tarafdar. I am therefore unable to agree with any of the contentions urged on behalf of the department as all these have been considered in great detail by the Special Bench. I therefore respectfully follow the said decisions of the Tribunal and confirm the order of the CIT(A). 11. In the result, the appeal is dismissed
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1989 (11) TMI 72 - ITAT AMRITSAR
Assessment Order, Assessment Year, Carry Forward And Set Off, Two Partners, Unabsorbed Depreciation
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1989 (11) TMI 71 - ITAT AMRITSAR
A Firm, A Partner, Assessment Order, Assessment Year, Bona Fide, Late Filing, Penalty Proceedings, Share From Firm
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1989 (11) TMI 70 - ITAT AHMEDABAD-C
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... ... ..... ess and cannot violate any law or cannot commit any offence. 5. The decision in MAHALAXMI SUGAR MILL s case has no application. In that case the only controversy was whether interest on unpaid cess was a penalty or cess. The court held that interest on unpaid cess was part of the cess and not penalty, holding it to be allowable deduction. There was no dispute that the interest was business expenditure and the decision proceeded on the assumption. 6. Regarding the argument based on the former s. 80V we may at once point out that its purpose was to encourage payment of taxes. If money is borrowed for payment of tax the state would realise the tax dies although it would suffer some loss by granting a deduction of the interest paid thereon. For the above reasons, the assessee s claim cannot be accepted and this ground is rejected. 7. The second ground is regarding a disallowance of Rs. 300. It is not pressed and is accordingly rejected. 8. In the result, the appeal is dismissed.
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1989 (11) TMI 69 - ITAT AHMEDABAD-C
A Partner, Business Premises, Rental Income, S. 10 ... ... ... ... ..... assessee and Mayonara--an exercise which is not permissible by any law, principle or authority. The other additional factors which the Commissioner has considered are not relevant because we have decided the question, granting that it is the assessee s purpose for making this arrangement to reduce its tax liability. For the above reasons, we are of the view that no part of the income of the trust can be added to the income of the assessee. It is also true that the income of the trust had been assessed separately. That, however, is not the main reason for our above decision. 11. With regard to the lump sum addition of Rs. 5,000 neither the Income-tax Officer s order nor the Commissioner s disclose any reason except that no quantity details were kept by the assessee, there was no check over labour and other expenses and that there was a fall in the G.P. In our view, this is not sufficient reason. Therefore, we cancel this addition also. 12. In the result, the appeal is allowed.
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1989 (11) TMI 68 - ITAT AHMEDABAD-C
Assessment Year, Market Value, Money Lending Business, S. 10 ... ... ... ... ..... esent case to justify the application of section on 52(1) as also the decision of the Hon ble Supreme Court in the case of McDowell and Co. Ltd. On the facts and circumstances of the case we hold that there was no object to avoid or reduce the liability of the company under section 45. The decisions relied upon by the learned counsel fully support the assessee s case whereas the authorities cited by the D.R. are not applicable and do not advance the revenue s case at all. 14. We would like to mention at this stage that we have found the aforesaid facts sufficient to come to the conclusion that we have. We have therefore not found it necessary to deal with some of the other arguments advanced by the parties. 15. In the final analysis we accept the assessee s appeal and direct the ITO to delete the addition of Rs. 1,02,001 on the ground that the provisions of section 52(1) are not attracted. On the same logic the loss of Rs. 160 shall stand withdrawn. 16. The appeal is allowed.
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1989 (11) TMI 67 - ITAT AHMEDABAD-C
Industrial Undertaking, Processing Of Goods, Profits And Gains ... ... ... ... ..... n behalf of the assessee (already reproduced). The respondent company in the course of the growing activity by the farmers not only provides guidance and assistance from day to day but even thereafter is engaged in the complicated activities of testing, quality control and the final activity of marketing the seeds through its distributors and dealers. The activities of the company are more or less identical to those as considered by the Allahabad High Court in the case of Tarai Development Corpn. The distinguishing feature sought to be brought out by the learned DR does not appear to be correct. The other arguments advanced by the DR are also not of any avail vis-a-vis the case of the revenue since these run contrary to the various other decisions relied upon by the assessee's counsel including those of the Tribunal. 11. In the final analysis we uphold the order of the CIT(A) vis-a-vis the claims of the assessee under sections 80HHA and 80-I. 12. The appeal is dismissed.
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1989 (11) TMI 66 - ITAT AHMEDABAD-B
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... ... ..... ly be contrary to the aforesaid well settled principle that once the method of accounting has been regularly and consistently followed by the assessee it cannot be disturbed. It will also create considerable confusion and chaos which really does not ensure for the benefit of either the revenue or the assessee so far as revenue over the period of several years is concerned. In view of the aforesaid facts and discussions we are of the considered opinion that the CIT(A) was fully justified in holding that there is no reason whatsoever to disturb the value of closing stock which was determined by the assessee according to the method regularly and consistently followed by it and accepted by the Department in past several years as well as accepted in subsequent years. In view of the detailed reasons given by the CIT(A) in his order and in view of aforesaid discussions, we confirm the order passed by the CIT(A). 7. In the result, all the departmental appeals fail and are dismissed.
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1989 (11) TMI 65 - ITAT AHMEDABAD-B
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... ... ..... ruck by no stretch of imagination can be disallowed on the ground of being expenditure of capital nature. The ITO has held that a sum of Rs. 20,000 is considered as expenditure of capital nature on the basis of such observations which is apparently not sustainable according to the provisions of law. 4.2. We have considered the rival submissions and have also gone through the order passed by the learned CIT(A) and the ITO. The CIT(A) has rightly held that the disallowance made on the ground that a sum of Rs. 20,000 represented estimated amount of capital expenditure is not valid. The very basis of the disallowance as pointed out in the assessment order clearly indicates that the entire expenditure incurred by the assessee for maintenance and running of the aforesaid old truck is a revenue expenditure. In view of the aforesaid facts we confirm the finding given by the learned CIT(A) in relation to this ground also. 5. In the result, the revenue s appeal fails and is dismissed.
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1989 (11) TMI 64 - ITAT AHMEDABAD-B
Standard Deduction ... ... ... ... ..... be seen is the charging section. But that is only for the purpose of charging to tax. The learned Departmental Representative submitted that section 16 merely referred to the computation. However, in order to find out whether the aforesaid proviso is applicable or not we have to make the computation. How are we to find out whether for the purpose of said sub-clause (iia) and the aforesaid proviso the salary exceeded Rs. 20,000 or not except by computing it ? Therefore, the method of computation under section 16 has to be applied. That section does not state that it is merely for the purpose of calculating the tax payable by a salaried employee. It uses the expression income chargeable under the head salaries which is used in the aforesaid proviso. Therefore, in order to find out whether the salary exceeded Rs. 20,000 or not the standard deduction has to be taken into account. That being so, the assessee is entitled to the benefit of section 36(iia). 5. The appeal is allowed.
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