|
Advanced Search Options
Case Laws
Showing 141 to 160 of 227 Records
-
1991 (10) TMI 89 - ITAT DELHI-A
Deduction Of Interest, Investment Company, Preliminary Expenses ... ... ... ... ..... e, nothing wrong in the assessee s keeping the money in the bank account for some time, before investing it into shares. The subsequent activity could not be entered into or embarked upon unless the first activity of raising a commercial loan had been completed. In our considered opinion, when the assessee raised a loan of Rs. 1,50,000 on 26-6-1982 the first steps for setting up the business of an investment company had been surely taken by the assessee. The facts of the cases relied upon by the learned Departmental Representative are distinguishable. The cases relied upon by the learned counsel for the assessee are nearer the point. As the business of the assessee in the instant case was set up on 26-6-1982, the interest of Rs. 9,452 was allowable as a deduction. Same was the case with regard to the preliminary expenses of Rs. 1,000. We hold accordingly. The order of the learned Commissioner of Income-tax (Appeals) on this point is upheld and the Revenue s appeal is rejected
-
1991 (10) TMI 88 - ITAT COCHIN
Computing Capital Gain ... ... ... ... ..... eason of transfer of some interest in the property by way of mortgage, the expenditure in question is an expenditure incurred for the purpose of transferring the full ownership rights in the property. Accordingly respectfully following the judgment of the Supreme Court in the case of Attar Singh Gurumukh Singh and the judgment of the Kerala High Court in the case of V.A. Vasumathi, we hold that the assessee is entitled to the deduction of the amount paid to KFC for the discharge of mortgage as deduction under section 48(1)(a)(i) form the sale consideration. In view of our above finding we leave it open the assessee s contention that there was a diversion of income by overriding title in payment of the sale consideration directly by the purchasers of the property to KFC and that the sale consideration never accrued to the assessee. We also leave it open the issue of cost as on 1st January, 1964 to be deducted from the sale consideration. 1. In the result the appeal is allowed.
-
1991 (10) TMI 87 - ITAT COCHIN
HUF Property ... ... ... ... ..... eys were deposited on 8-8-1986 in a sum of Rs. 75,105 and Rs. 75,100 was withdrawn the next day leaving a balance of Rs. 5 in the bank account. The opening of the account with the bank and the deposits made therein are explained by the creditor as due to the insistence of the appellant to have the amount paid by cheque. The reason for not depositing the amount immediately after the sale of the property is stated to be due to the rival claims among his children and that he wanted to keep the money for himself. Being an old man at the advanced age of 67 the explanation for keeping such a large sum with him due to family problems can be considered as plausible. There is no evidence that the money was deposited by any person other than the assessee in this case. The sale of property is not disputed. In the circumstances it cannot be held that the money belonged to the appellant. The addition of Rs. 75,100 is deleted. 32. In the result, the appeal of the assessee is partly allowed
-
1991 (10) TMI 86 - ITAT COCHIN
A Partner, Firm Assessment, High Court, Net Wealth, Supreme Court, Valuation Date ... ... ... ... ..... s raised in all these appeals are as follows --- (i) The authorities erred in not granting depreciation as claimed (ii) Interest was wrongly levied (iii) Disallowance of expenditure is not called for and (iv) Tax paid should be treated as advance tax and interest under section 214 should be granted. Of the points raised above, we find that only the issue regarding the disallowance of a part of depreciation was raised in ground No. 6 before the CIT (Appeals), but the learned first appellate authority had not dealt with the same. The other points were not agitated before the first appellate authority and, therefore, we cannot permit the assessee to raise those points for the first time before us. 6. But the dispute on the quantum of depreciation arises only in ITA No. 459 (Coch.)/1986. We, therefore, restore ITA No. 459 (Coch.)/1986 to the file of the CIT(Appeals) with a direction to resolve the issue in accordance with law. 7. In the result, all the appeals are partly allowed.
-
1991 (10) TMI 85 - ITAT COCHIN
Female Member, Kerala Joint Hindu Family System (abolition) Act, Law Applicable ... ... ... ... ..... including female members 4 to 7. They have partitioned the property into A to H and every member including the female members is allotted to one share each. From this document relied on by the assessee we find that only in the family of one Chandrapraban the female members were allotted a share in the family properties whereas in the family of the assessee no share was allotted to female members. We find that the custom is not uniform and certain. Under these circumstances, we hold that the assessee is governed by the Hindu Mitakshara school of law and the custom followed by the assessee is not proved. Hence, we hold that there is no H.U.F. after the commencement of the Kerala Joint Hindu Family System (Abolition) Act and the assessee s wife is not entitled to get any share from the family properties. Therefore, we hold that the appeals by the revenue must succeed and our order dated 9th February, 1983 stands reversed. 7. In the result, the appeals by the revenue are allowed
-
1991 (10) TMI 84 - ITAT CHANDIGARH
Failure To Disclose, Hindu Succession Act, Life Insurance, Net Wealth ... ... ... ... ..... ling party or disadvantage to some interested party and secrecy is an essential ingredient of the act of concealment. To constitute concealment, it must appear that the statement or act of the person was calculated and designed to prevent discovery of the act, i.e., that the act was misleading, false and deceptive. There is no material to warrant that inference. 8. Coming to the penalty proceedings, the Hon ble Supreme Court in the case of CIT v. Khoday Eswarsa and Sons 1972 83 ITR 369 at page 370, has held that penalty proceedings are penal in character and quasi-judicial in nature. It is the department that has to prove the concealment on the part of the assessee. There is no material on record to hold in favour of the revenue that it has discharged its burden of proof which was cast exclusively on the revenue in terms of the above decision of the Hon ble Supreme Court. 9. In view of above discussion, the impugned order stands upheld and the revenue fails for both the years
-
1991 (10) TMI 83 - ITAT CHANDIGARH
A Partner, Assessed Income, Assessing Officer, Partnership Firm, Res Judicata ... ... ... ... ..... determine the ALV in accordance with the law taking into consideration the decisions given by us on the type of assessment that has now to be raised in view of our directions above especially when the property is under self-occupation. This disposes of the appeals of the Revenue. 19. The assessee has taken a ground regarding charging of interest under section 215/217 in each year. Since the quantum of assessments would undergo substantial changes in view of the directions by us supra, this is a matter which will be consequential and has to be dealt with by the Assessing Officer accordingly. We hold so. 20. Since we have set aside the assessments on the substantial issues, the other issue in the assessment year 1982-83 regarding claim of interest would also be reconsidered. 21. Since we have discussed the preliminary issue only and decided that in favour of the assessee, the merits are not being discussed in that view of the matter. 22. For statistics, both the parties succeed
-
1991 (10) TMI 82 - ITAT CALCUTTA-C
Speculation Loss ... ... ... ... ..... ayments by the assessee-firm from the Dalhousie Jute Co. Ltd. 15. We also hold that the other allegations made by the ITO are fully explained by the assessee-company and apart from mere suspicion, surmises and conjectures, there appears to be no valid ground for treating the loss suffered by the assessee in purchase and sale of raw jute. The transactions of purchases and sales made by the assessee-company cannot be disbelieved merely on suspicion, surmises and conjectures, particularly when the transactions are fully corroborated and confirmed by both the seller and ultimate buyer and these are also evidenced by the books of accounts of the concerned parties. All the transactions have also taken place by account payee cheques through banks. In view of the facts and circumstances stated above, we uphold the order of the CIT(Appeals) in directing the ITO to allow the loss in the business of purchases and sales of raw jute. 16. In the result, the departmental appeal is dismissed
-
1991 (10) TMI 81 - ITAT CALCUTTA-B
... ...
... ... ..... t is in the process of realisation, it cannot be said that the debt has become irrecoverable. Therefore, in the facts and circumstances stated above, we hold that the case relied on by the Departmental Representative is applicable to the present case. In the case relied by the Departmental Representative the debt was not allowed as a deduction simply because the advocate had written a letter stating therein that the efforts are still being made to trace out the debtors. In the present case the claim has been made by the assessee before the Commissioner of Payments on 30th April, 1977. In these circumstances, it cannot be said that the assessee has no hope at all for recovering the same. The assessee has also failed to prove with evidence that the debt had finally become bad and irrecoverable during the accounting year relevant to the year under consideration. In view of these facts, we uphold the CIT(A) s order and confirm the same. 9. In the result, the appeal is dismissed.
-
1991 (10) TMI 80 - ITAT CALCUTTA-B
... ...
... ... ..... But the assessee has in fact filed the details of the depreciation, which are in pages 14 and 15 of the paper book, which were also filed before the Assessing Officer. 11. We have gone through the same and find that the claim of the assessee is in order. The amendment is effective from 1st April, 1984. The initial depreciation is required to be deducted for computing the written down value of the assets. Initial depreciation, if allowed, after 1st April, 1984, will have to be deducted from the cost of the asset for the purpose of computation of the written down value thereof. The amendment does not authorise the Assessing Officer to modify the written down value brought forward from the earlier years where initial depreciation has already been allowed in such earlier years. In view of the facts stated above, we find that the CIT(A) s order in deleting the same is justified and we accordingly uphold the same. 12. In the result, the Departmental appeal fails and is dismissed.
-
1991 (10) TMI 79 - ITAT CALCUTTA-B
... ...
... ... ..... ct. The ITO, in our opinion, therefore, could have suo motu invoked those wide and plenary powers given to him under ss. 131 and 133 of the Act if he was of the opinion that the appellant is not co-operating in the enquiry or is with holding any information or deliberately avoiding the production of witnesses as desired or directed him for the purpose of making assessment. No such attempt appears to have been made by the ITO as we read the assessment order. We are, therefore, of the opinion that an assessee cannot be put to prejudice or sufferance for the inaction on the part to the ITO in conducting the enquiry as has been done in this case. It is also not proved by the ITO that the transactions indulged in by the appellant are dubious or colourable so as to come within the ratio of McDowell and Co. Ltd. vs. CTO. 7. Under these circumstances we can do nothing except to allow this appeal with a direction to the ITO to allow the loss of Rs. 86,500 as claimed by the appellant.
-
1991 (10) TMI 78 - ITAT CALCUTTA-A
Accumulated Loss, Carry Forward And Set Off, Set Off Of Loss ... ... ... ... ..... eying the law. Even assuming for a while that the ITO had found out the causes from the appellant after hearing him for the delay in filing of the loss return yet he (ITO) could not have at that moment granted any time since further time can only be granted by the ITO before the filing of the return. Any ex post facto extension of time by the ITO during the course of assessment proceedings would have been violation of the mandatory provisions of section 80 which is not expected of an ITO being a quasi-judicial authority. We, therefore, hold that hearing or following rules of natural justice by the ITO was not necessary in this case. The remedy of the appellant for his grievance lies elsewhere and surely not before us by way of this appeal. 8. In the circumstances we confirm the orders of the authorities below and hold that the assessee is not entitled to the carry forward and set off of the determined loss under section 72 of the Act. 9. In the result, the appeal is dismissed
-
1991 (10) TMI 77 - ITAT BOMBAY-D
Export Business, Foreign Currency ... ... ... ... ..... at as the section stood at the relevant time, the benefit of the provisions of section 80HHC has to be given in respect of sales effected to foreigners across the counter in foreign exchange currency. Having considered all these facts and the legal position as discussed above, we are of the view that the assessee is entitled to get deduction under section 80HHC even in respect of such sales. We direct accordingly. 10. It may incidentally be stated that this stand of the assessee has been accepted by the CIT (Appeals) for the assessment year 1983-84 in her order dated 23-8-1988 and another CIT (Appeals) in her order dated 10-8-1988 for the assessment year 1987-88. Both these authorities have directed the Assessing Officer to treat the sales in foreign currency in India as exports for the purpose of deduction under section 80HHC. Having regard to these facts, we would allow the appeal of the assessee. 11. and 12. These paras are not reproduced here as they involve minor issues.
-
1991 (10) TMI 76 - ITAT BOMBAY-C
Arbitration Award ... ... ... ... ..... erned with the provisions of section 326 of the Companies Act, 1956, which contained an absolute prohibition against an appointment or reappointment of a Managing Agent before approval of the Central Government was obtained. In those circumstances, the Supreme Court held that the assessee s liability to pay the remuneration to Managing Agent arose only when the Government conveyed its approval and not prior to that day. In the case before us, such are not the provisions relating to the Foreign Awards (Recognition and Enforcement) Act, 1961 or the Foreign Exchange Regulation Act, 1973. The regulations required of the assessee to effectuate the payment, do not alter the liability already fastened on him. We are unable to accept the department s contention. Therefore, we direct that the assessee be given a deduction on account of damages payable to its foreign customers in terms of the arbitration award. 6. and 7. These paras are not reproduced here as they involve minor issues.
-
1991 (10) TMI 75 - ITAT BOMBAY-A
Accounting Year, Immovable Property, Movable Property ... ... ... ... ..... not a building , its value could not be brought to tax for wealth-tax purposes. Again, by virtue of sub-sections (5) and (7) of section 40 of the Finance Act, 1983, we have to refer to all the provisions of the Wealth-tax Act, 1957, other than stipulated in clause (a) of sub-section (5) of section 40 of the Finance Act, 1983. This would be very clear from the fact that the flats in question have been valued as per Rule 1-BB of the W.T. Rules, 1957, which has been accepted by the Asstt. Commissioner. In this view of the matter, we are not prepared to accept the submissions made on behalf of the assessee that section 40 of the Finance Act, 1983, is a self-contained code and, therefore, we have not to look into the provisions of the Wealth-tax Act, 1957 to determine whether the value of the flats in question would be exigible to the Wealth-tax Act. For all these reasons, we have no hesitation in upholding the order of the CWT (A). 10. In the result, all the appeals are dismissed
-
1991 (10) TMI 74 - ITAT BANGALORE
HUF Property ... ... ... ... ..... it should be treated as a cylinder , no matter what the size is. 8. The assessee has been granted licence by the Chief Controller of Explosives to transport compressed ammonia gas in the container mounted on the vehicle. The container is nothing but a big cylinder suitable for being mounted on the chassis of the truck. It has all the attributes of a cylinder. Stringent conditions are imposed by Explosives department having regard to the dangerous quality of the substance transported. It has special valves and regulators. To our mind it is clear that the container mounted on the chassis of the truck is a gas cylinder to fall within the description given in Appendix I, Part I, Item III(ii) F(4). Therefore, depreciation at 100 per cent is allowable on this container and the connected valves and regulators. The Income-tax Officer shall ascertain the value of the cylinder mounted on the vehicles, valves and regulators and allow depreciation as held above. 9. The appeal is allowed
-
1991 (10) TMI 73 - ITAT ALLAHABAD-A
Annual Charge, Income From House Property, Let Out ... ... ... ... ..... there was no diversion of income at source. On the contrary we find that it was an application of income of rent and, therefore, the departmental authorities were justified in holding that the rent of the premises was Rs. 2,500 per month and not Rs. 1,250 as contended by the assessee. In view of the facts and the circumstances mentioned above, we have not considered it necessary to deal with each and every ground raised before us, but we are certain that all the submissions and grounds have been covered by the discussion and by the finding given by us in this order. To reiterate, in view of the papers filed on record, in view of the order of the predecessor Tribunal, in view of the remand report of the Ld. CIT(A) dated 19-7-1990, we hold that the departmental authorities were justified in assessing the income from rent from the property at the rate of Rs. 2,500 per month instead of Rs. 1,250 per month as contended by the appellant. All the three appeals fail and are dismissed
-
1991 (10) TMI 72 - ITAT AHMEDABAD-B
... ...
... ... ..... pect of the matter and that is the question of an opportunity of being heard. As outlined in the preceding para the position in which the assessee finds itself is not of its own making since it had entrusted its appellate work to the Chartered Accountants. The Tribunal decided the appeals ex parte only on finding that even after the request for consolidation of the appeals had been accepted there was no appearance on the part of the assessee or its counsel. These facts apart one cannot penalise an assessee or deny an opportunity of being heard merely because the counsel engaged by it has faulted somewhere. In spite of the fact that relief wherever due has been given by the Tribunal in the ex parte order, the assessee would still have to be heard in the interest of justice. In the final analysis we recall our consolidated order dt. 1st May, 1991 and restore the appeals to the record. These shall be refixed for hearing in the normal course. 6. The Misc. Application is allowed.
-
1991 (10) TMI 71 - ITAT AHMEDABAD-A
... ...
... ... ..... able under ss. 30 to 37 of IT Act, 1961. If the income of the assessee is determined by applying a flat net profit rate the question of considering the allowability of different items of expenses claimed by the assessee does not arise at all. We are, therefore, of the view that in cases where the provisions of s. 145(2) are invoked and the income of the assessee is estimated by applying a flat rate of net profit no separate addition by resort to s. 40A(3) can be validly made. The aforesaid additions aggregating to Rs. 23,500 made by the ITO by resort to s. 40A(3) and confirmed by the CIT(A) is, therefore, cancelled. 5. Ground No. 7 is an alternative ground that in case the additions referred to in ground Nos. 4, 5, and 6 are confirmed the same should be held to covered by the addition made to the declared gross profit. This ground will not now survive in view of our aforesaid finding deleting the additions made under s. 40A(3). 6. In the result, the appeal is partly allowed.
-
1991 (10) TMI 70 - ITAT AHMEDABAD-A
1922 Act, Additional Tax, Undistributed Profits ... ... ... ... ..... vidend has been declared before the making of that order, as otherwise the company s undistributed balance which is assessed by the ITO would exceed its commercial profits. There is also a likelihood of double taxation because not only the company is charged with super-tax for not distributing the dividends, but also it will be assessed on the dividends it has in fact distributed to income-tax and once again to super-tax. Such a result was not intended. As the company can only declare dividends in general meeting from the profits earned by it, and when that is declared and paid the ITO, though for the non-fulfilment of the conditions prescribed in the section he may seek to reopen it, cannot make an assessment in cases where the dividend has actually been declared and paid before the date of his order. 9. In the final analysis we quash the orders passed by the ITO under section 23A(1) of the Act for each of the assessment years under consideration. 10. The appeals are allowed
....
|
