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Case Laws
Showing 161 to 180 of 291 Records
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1990 (9) TMI 132 - ITAT DELHI
Business Expenditure, Capital Or Revenue Expenditure, Carrying On Business, Tax Proceedings ... ... ... ... ..... upied portion and there was no necessity for the assessee to make such heavy expenditure on the repairs of tenanted accommodation. He also contended that the entire expenditure was of a revenue nature as was clear from the details furnished at page 1 of the paper book. The sum of Rs. 5,200 was spent not for purchase of sanitary materials but for the repairs of some almirah. It is the other sum of Rs. 11,636 that was spent on the purchase of sanitary materials. When a building is renovated for the purposes of carrying on business such expenditure are necessary and they are all of the nature of revenue expenditure. Regarding the point raised by the assessing officer that the repairs are also related to tenanted portion there being no material to support such a view, the disallowance of 60 of the expenditure was improper. In my view, therefore, the entire expenditure was allowable and should have been allowed. The disallowance of Rs. 15,000 is, therefore, deleted. Appeal allowed
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1990 (9) TMI 131 - ITAT BOMBAY-D
Deduction In Respect, Gratuity Fund, Provident Fund, Superannuation Fund ... ... ... ... ..... see. Such amount may thus be shown as an asset and the same may be adjusted against the corresponding dues which may accrue in a subsequent year. Where such advance payment is adjusted in the payment of statutory dues for a subsequent year, it will not be open to any income-tax authority to deny deductions claimed in such subsequent year on the ground that the same were not actually paid in that year. An adjustment in a particular year of statutory dues paid in advance in an earlier year amounts to payment, by way of adjustment, in that particular year. These observations of ours would, in our opinion, take full care of the apprehension, which the assessee may have, of possible denial by the income-tax authorities of the claims of such deductions in the subsequent year(s). Subject to these observations, we reject the assessee s contention for the year under appeal and allow this ground of the appeal. 4. to 9. These paras are not reproduced here, as they involved minor issues.
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1990 (9) TMI 130 - ITAT BOMBAY-C
Assessment Notice, Assessment Proceedings, Original Assessment, Reassessment Notice, Reassessment Proceedings
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1990 (9) TMI 129 - ITAT BOMBAY-C
Backward Area, Industrial Undertaking, Mistake Apparent From Record ... ... ... ... ..... in the year under consideration. However, the main thrust of Shri Desai s argument was that unless the observations made by the ITO in respect of the assessment year 1976-77 are rectified, no order could be passed u/s. 154 of the Act in respect of the year under consideration, in the manner passed by the ITO. Again, after some discussion in the court it was not disputed that the computation of Rs. 24,21,501 itself was bad in law, as after considering the depreciation/development rebate there would not have been any profits in the cement unit. In this view of the matter, the ITO had rightly taken action u/s. 154 of the Act for the assessment year 1977-78, as it was only in that year that the mistake committed by him in granting additional deduction under Sec. 80-HH of the Act has resulted in collecting less tax than that was due from the assessee. We have, therefore, no hesitation in upholding the action of the Income-tax authorities. 14. In the result, the appeal is dismissed
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1990 (9) TMI 128 - ITAT BOMBAY-B
Assessment Order, Time Limit For Completion ... ... ... ... ..... subject to the ceiling of 180 days, and this time up to 180 days is available to the ITO for completing the assessment over and above the period of limitation of two years. For these reasons, the first ground of appeal is rejected. 3A. The second ground is that the CIT (Appeals) erred in allowing depreciation only at 10 in respect of one weighing machine installed during the year of account as against the appellant s claim of 15 . It was argued by Shri Mistry that since the weighing machine is an item of plant and machinery which comes into contract with corrosive chemicals, depreciation 15 along with extra shift allowance is admissible as per Appendix I, Part I(III)B(7). No evidence in support of this claim has been produced before us by Shri Mistry. We do not, therefore, find any reason to interfere with the decision of the CIT(A) in this regard, which is confirmed and this ground is also rejected. 4. to 25. These paras are not reproduced here as they involved minor issues.
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1990 (9) TMI 127 - ITAT BOMBAY-B
Assessment Order, Time Limit For Completion ... ... ... ... ..... subject to the ceiling of 180 days, and this time up to 180 days is available to the ITO for completing the assessment over and above the period of limitation of two years. For these reasons, the first ground of appeal is rejected. 3A. The second ground is that the CIT (Appeals) erred in allowing depreciation only at 10 in respect of one weighing machine installed during the year of account as against the appellant s claim of 15 . It was argued by Shri Mistry that since the weighing machine is an item of plant and machinery which comes into contract with corrosive chemicals, depreciation 15 along with extra shift allowance is admissible as per Appendix I, Part I(III)B(7). No evidence in support of this claim has been produced before us by Shri Mistry. We do not, therefore, find any reason to interfere with the decision of the CIT(A) in this regard, which is confirmed and this ground is also rejected. 4. to 25. These paras are not reproduced here as they involved minor issues.
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1990 (9) TMI 126 - ITAT BOMBAY-A
Collaboration Agreement, Indian Company, Non-resident Company ... ... ... ... ..... any interest (not being on securities) or any other sum chargeable under the provisions of this Act (not being income chargeable under the head Salaries or dividends) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force. It provides tax deduction at the time when it was paid and also at the time of credit, whichever is earlier. The liability for deduction of tax is on the income chargeable to tax though it is deducted when it is paid or credited. The income was, therefore, subject to tax deductible at source. It was not deducted because it was not paid or credited to the assessee s account. We, therefore, hold that the assessee was not liable to interest under section 217 and, therefore, delete the levy. The assessee succeeds on this ground. 17. In the result, the appeal is allowed in part
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1990 (9) TMI 125 - ITAT ALLAHABAD-B
Assessment Proceedings, High Court, Original Assessment, Reassessment Proceedings ... ... ... ... ..... as to for what the revenue was restrained and for what the revenue was directed to bring to tax, in our humble opinion, there was no more power left to the revenue/assessing officer to bring certain other items to tax. In fact, the Hon ble Supreme Court in the case of Rao Thakur Narayan Singh had gone to the extent that even if an order had been passed against revenue by the Tribunal, by mistake and it has become final by not going in appeal. The revenue/assessing officer was bound to follow that order irrespective of the mistake committed by the Tribunal. It is the principle of finality which has to be respected. With all these facts and observations, we are of the opinion that the order of the learned CIT(Appeals) was perfectly correct and justified and in fact, the order of the assessing officer almost bordered at the stage of contempt of Hon ble High Court. The issues are, therefore, decided accordingly. 25. In the result, both the appeals are decided against the revenue
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1990 (9) TMI 124 - ITAT ALLAHABAD
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... ... ..... quired to establish the sources of the deposits and the explanation offered were disbelieved and thus in that case there was no occasion to conclude that the partners really owned the money. Here in this case, there is a clear finding of the Tribunal that the amount is a capital contribution by the partner and consequently the identity of the creditors stood established. There was a further finding that the genuineness also stood established as it was a capital contribution. The Tribunal has further given a finding that this cash credit was to be assessed in the hands of the individual partner and not in the hands of the firm. This clear-cut finding arrived at by the Tribunal regarding the genuineness of the capital contribution and the identity of the persons may be the decisive point, we feel that there is no question of law involved in the said finding. We, therefore, decline to refer the same to the Hon ble Court for its opinion. 7. The Reference Application is rejected.
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1990 (9) TMI 123 - ITAT AHMEDABAD-C
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... ... ..... by the ITO. The learned counsel for the assessee relied upon the order of the CIT(A). 8. After hearing the parties we are of the considered opinion that the CIT(A) has rightly deleted the aforesaid disallowance of interest of Rs. 8,460. It is an admitted fact that these deposits are old deposits lying in the account of Shri Abdul Salim Nazar and Azamdin. These deposits were not treated as non-genuine deposits in the year of its receipt. Interest thereon was never disallowed in the past. The assessee has furnished the available address of these depositors as mentioned in para 5 of the CIT(A) s order. Unless the deposits in question are validly considered as unexplained deposits in the year of its receipt, no addition disallowance in respect of interest paid thereon can be validly made. Hence, this ground of appeal taken by the Revenue is rejected. 9. In the result the Revenue s Appeal is dismissed and the assessee s appeals treated as partly allowed for statistical purposes.
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1990 (9) TMI 122 - ITAT AHMEDABAD-C
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... ... ..... s, as a result of which the percentage of salary and production expenses increased to 22.77 per cent as against 13.77 per cent and 16.83 per cent in the preceding two years. The declared GP during the year under consideration is also found to be reasonable considering the fact that n the subsequent year the assessee had declared GP rate according to the statement at bar made by the learned counsel at 38 per cent and the ITO had applied GP rate of approximately 48 per cent. The matter has been sent back to the ITO by the CIT(A) in the next year. Considering the totality of facts and circumstances we are of the considered view that the addition of Rs. 3,03,798 made in the declared GP should be deleted. 6. As regards ground relating to levy of interest under s. 215 is concerned, no specific arguments were advanced by the learned counsel for the assessee. The ITO is however, directed to grant consequential relief. 7. In the result the assessee s appeal is treated partly allowed.
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1990 (9) TMI 121 - ITAT AHMEDABAD-C
Applied To, Tax Deferment Scheme ... ... ... ... ..... ments make an amendment in the Sales-Tax Act to the effect that the sales-tax deferred under the scheme shall be treated as actually paid, such a deeming provision will meet the requirements of section 43B. 5. The Government of Maharashtra have by the Bombay Sales-Tax (Amendment) Act, 1987, made the amendment accordingly. The Board have decided that where amendments are made in the sales-tax laws on these lines, the statutory liability shall be treated to have been discharged for the purposes of section 43B of the Act. In the State of Gujarat, necessary amendments have been made by executive instructions, copies of which have been filed before us. The above instructions of the Board would be applicable as far as applicability of section 43B to the liability of payment of sales-tax to sales-tax deferred scheme. We, accordingly, hold that nothing contained in section 43B justified making of additions in question. We, accordingly, delete the additions. 5. The appeals are allowed
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1990 (9) TMI 119 - ITAT AHMEDABAD-B
Previous Year ... ... ... ... ..... come to a conclusion regarding the assessee s status. Ideally or morally speaking, it may be expected of the assessee to have made this disclosure. That is not the expectation of law when imposing penalty for which a positively dishonest conduct is necessary. The assessee s own belief in that regard is also immaterial because the conclusion to be drawn by the Income-tax Officer is independent of any belief that the assessee might have had. The authorities relied on by the learned Departmental Representative do not support the revenue s case because here it is not a case of not accepting the assessee s explanation but deciding whether the facts and evidence supplied by the assessee was sufficient to enable the Income-tax Officer to come to an independent conclusion or not. The assessee has not made a claim (unjustified though it may be) on the basis of any false statement of fact or suppression of facts. For the above reasons the penalty is cancelled and the appeal is allowed
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1990 (9) TMI 118 - ITAT AHMEDABAD-A
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... ... ..... ssee. This was confirmed by the CIT(A). 22. The learned counsel for the assessee at the outset reiterated the arguments advanced before the tax authorities with the further submission that the estimate being on the higher side required to be scaled down. The learned Deptl. Representative on the other hand strongly supported the order of the CIT(A). 23. After hearing the parties, we find no reason to interfere with the order of the CIT(A) inasmuch as he has recorded cogent and valid reasons for upholding the estimate made by the ITO. The relevant ground in the appeal is accordingly rejected. 24. The remaining ground in the appearing to an addition of Rs. 5,000 on an estimated basis to the profit in the purchase and sale of diamond chura was not pressed at the time of hearing. This accordingly rejected. 25. In the result ITA No. 2542/Ahd/1984 and ITA No. 2330/Ahd/1984 preferred by the assessment are dismissed whereas ITA No. 2572/Ahd/1984 filed by the Revenue is partly allowed.
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1990 (9) TMI 117 - ITAT AHMEDABAD-A
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... ... ..... nt must be kept by the assessee. We cannot agree with this because it is not an office which makes an agency but it is an agent who makes it. The case relied upon by the CIT i.e. Mopeds India is regarding disallowance under s. 37(3B). Sec. 35B is for a different purpose, i.e., promotion of exports to earn foreign exchange and paying commission to an agent is an important means of doing so. The CIT has relied upon the Madras High Court decision in the case of Southern Sea Foods but that case was concerned with a local agent and the High Court observed that in the present case, there is no whisper in the contentions put forward before the Tribunal and no finding by the Tribunal either that the assessee had been maintaining outside India a branch or an office or even an agency for sales promotion of prawns and fish. We are, therefore, of the view that the benefit is available to the assessee and so the order in revision was not justified. Therefore, all the appeals are allowed.
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1990 (9) TMI 116 - ITAT AHMEDABAD-A
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... ... ..... t of certain disallowances and additions there was a profit instead of a loss shown by the assessee. The High Court held that the penalty was to be levied with reference to the amount of income in respect of which concealment of particulars or furnishing of false particulars had actually taken place. This amount was Rs. 2,84,727 which according to the settlement between the assessee and the Revenue was to be regarded as the concealed income for the assessment year in question. Therefore, in that case there was no question whether penalty could be levied in respect of the disallowance. Penalty in that case was confirmed by the High Court only in respect of the amount which were admittedly concealed. In the case of Seth Daumal Narsumal there was a positive concealment of certain stocks. Therefore, that case has no application here. 8. In the light of the above, we hold that this is not a fit case for imposition of penalty and accordingly cancel the same. The appeal is allowed.
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1990 (9) TMI 115 - ITAT AHMEDABAD-A
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... ... ..... -Cool, Shreshth, Oswal, etc., and food frozen articles of human consumption by different entrepreneurs have taken up their places in the field of consumerism. The concept of limited marketability for this industry may be considered in the context of still limited number of consumers which may be said to be mostly consisting of the elite, somewhat rich and affluent and mainly urbanite segment of old society as compared to the van number of the consumers of the products of textile industry. In view of the matter we consider it reasonable to allow deduction at 10 per cent on account of limited marketability in the cases of both the concerns. 32. The question of valuation of the immovable properties of the two concerns, as stated above, stands remitted to the WTO for valuation in accordance with the new rules, inserted by Direct Tax Laws (Amendment) Act, 1989, Sch. III. In that sense of the matter the appeals shall be treated to have been partly allowed for statistical purposes.
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1990 (9) TMI 114 - ITAT AHMEDABAD-A
Previous Year ... ... ... ... ..... s also not tenable. It is not proved on record that the Staff Training Centre of the United Asian Bank Bahrad, Kaula Lampur fell within the definition of either a university or other educational institution established outside India or such other association or body established outside India as might have been notified in that behalf by the Central Government in the Official Gazette, for the purposes of applicability of sec. 80R for the benefit of the assessee, who admittedly was a citizen of India and had rendered services during the year under consideration to the said Staff Training Centre in his capacity as a Professor. The bodies notified by the Central Government for the purposes of sec. 80R do not include the name of the said Staff Training Centre of the United Asian Bank Bahrad, Kaula Lampur, Malaysia (Kanga and Palkhivala s The Law and Practice of Income Tax, VIIth Edition, Vol. II, p. 854). 10 to 28. These paras are not reproduced here, as they involve minor issues.
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1990 (9) TMI 113 - ITAT AHMEDABAD
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... ... ..... ations on 10th Oct., 1968 were made after the date upto which the extension was sought. Therefore, the decision of the Gujarat High Court covers the present situation also. The decision of the Tribunal here should be governed by the Gujarat High Court s decision. Further, Form No. 6 by stating for the reasons given below it is not possible/has not been possible provides for an application after the expiry of the time limit. Moreover, the time limit prescribed under the IT Act in this connection is for filing the return and not for filing an application for extension o time. Therefore, the assessee s right cannot be curtailed. The above decision of Patana High Court on which the learned Departmental Representative has relied does not consider the wording of Form No. 6 as above. There is no particular sanctity in making an application for extension of time before the last date. For the above reasons, I hold that the AAC s order should not be disturbed. The appeal is dismissed.
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1990 (9) TMI 112 - CEGAT, CALCUTTA-LB
Refund arising out of clerical arithmetical error
... ... ... ... ..... in cases) (iv) Cases of under-payment/over-payment of duty drawback by mistake and consequential further payment/demand C. Cases of over-payment/under-payment of Sums Other than Duty and consequential refund/demand. (a) FEES of various types under different rules and regulations such as - (i) Passenger s Baggage Levy of Fees Regulations, 1966 (1) 8195 (2) (ii) Customs Fees for rendering service by Customs Officers Regulations, 1968 (iii) Levy of Fees Customs Documents Regulations, 1970 (iv) Levy of Transhipment Fee in terms of Transhipment (Condition) Regulations, 1963 (v) Fees payable in terms of Sec. 65(i) and regulations thereunder (b) CHARGES payable with reference to Sec. 65 and Rules and Regulations made thereunder (c) INTEREST payable in terms of Sec. 61(2) (d) FINES and/or PENALTIES paid in respect of- (i) Licensing cases (ii) assessment cases (iii) others (e) Sums or amounts required to be paid/ adjusted in terms of BONDS under various Sections for various purposes.
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