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Case Laws
Showing 41 to 60 of 173 Records
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1978 (3) TMI 151 - HIGH COURT OF PUNJAB AND HARYANA
Winding up – Company when deemed unable to pay its debts ... ... ... ... ..... creditors would be better served by the winding-up proceedings and its assets, if prudently realised, might be able to meet its liabilities. The company also seems to have taken a similar stand that if, in particular, distress sales are avoided then it might ultimately be possible to meet some of the demands of the creditors in a proper manner. It is evident from the above that the tests laid down by their Lordships in Seth Mohan Lal v. Grain Chambers Ltd. 1968 38 Comp. Cas. 543 (SC) for the winding up of a company are more than amply satisfied in the present case. I am satisfied that it is just and equitable that the company should be wound up under section 433(f) of the Companies Act, 1956, and direct accordingly. The provisional liquidator shall be the liquidator of the company aforesaid and shall forth with take charge of all the property and effects of the same. The formal winding-up order in accordance with Form No. 52 of the Companies (Court) Rules, 1959, be drawn up.
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1978 (3) TMI 141 - ITAT NEW DELHI-D
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... ... ..... ld have a separate asst. made on him in the status of HUF, in respect of income arising to him from ancestral properties and assets. This date falls well beyond the due dates for filing the estimates under s. 212(3). Thus, on the relevant due dates, the assessee was under the Bona fide belief that all the income arising to him from all sources had to be assessed in his hands as an individual and he was not aware of the fact that any separate asst. had to be made on the HUF. This clearly constituted reasonable cause for his failure to file such estimates under s. 212(3). Accordingly, we have to hold that penalties under s. 273(b) were not exigible in this case for the four asst. years under consideration. Accordingly, we cancel these penalties and allow the four appeals filed by the assessee. 9. In the result, appeal Nos. ITA. 3058, 3063 and 3065/Del/1976-77 are partly allowed and the other five appeals, namely ITA. Nos. 3068, 3060, 3061, 3066 and 3069/Del/1976-77 are allowed.
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1978 (3) TMI 138 - ITAT MADRAS-D
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... ... ..... hat it could not claim ownership of such items while vacating the property. In support of this, it has produced a certificate issued by the trustee of Shri Valli Ammal Kattalia, from whom the property has been taken on lease. It was explained that the expenditure has been incurred for putting up false ceiling, plastering, painting and making other decorations. He was, however, not able to give us the details of the expenditure. 5. Having regard to the circumstances under which the expenditure has come to be incurred, we think that a portion thereof must be taken as revenue and the balance as capital, on which depreciation could be allowed. On the facts and circumstances of this case, we hold that Rs. 10,000 out of Rs. 38,509 is to be allowed as revenue expenditure and the balance of Rs. 28,509 has to be capital expenditure and depreciation should be allowed thereon as for furniture and fittings. 6. The assessment will be modified accordingly. 7. The appeal is allowed in part.
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1978 (3) TMI 136 - ITAT MADRAS-C
Computing Value, Original Assessment, Provision For Gratuity, Quoted Equity Shares ... ... ... ... ..... aram Textiles Ltd., the gratuity scheme was in terms of the settlement dated 9-7-1970 under the Industrial Disputes Act, 1947, and in the directors report for the year ended 31-3-1971, it was pointed out that gratuity as per actuarial valuation amounting to Rs. 1,68,159 had been provided in the profit and loss accounts (exhibited in the balance sheet explicitly as a provision as per actuarial valuation and so also in the profit and loss account). The decision as in the case of T.V.S. and Sons Ltd. would hold good here also and the aforesaid provision is not a contingent liability on the facts of the case. Consequently, a revaluation was not called for of the shares in this company and we direct exclusion of the amount added of Rs. 118 brought to tax in the revised assessment. 25. We, therefore, agree with the conclusion of the AAC that the revaluation was not in order and hence the appeal of the department on this point fails. 26. In the result, the appeal is allowed in part.
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1978 (3) TMI 133 - ITAT MADRAS-B
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... ... ..... When particulars relating to the gifts were made available the claim cannot be rejected in the absence of proof to show that any portion of the claim was false. In respect of this cash credit the interest claimed by the assessee has been allowed to the extent of 50 per cent by the AAC. The assessee has contended before us that there is no justification for disallowing the remaining 50 per cent of the interest. For the reasons mentioned above we are of the opinion that there is no justification for disallowing the 50 per cent of the interest due on the above cash credit. On an overall view of the matter and also considering the fact that the business itself was closed subsequently, as stated above, we hold that no adequate case is made out to justify the addition of Rs. 7,500. We direct that the income returned in respect of the hotel business be accepted. We also set aside the disallowance of the interest in respect of the above credit. 4. In the result the appeal is allowed.
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1978 (3) TMI 130 - ITAT MADRAS-A
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... ... ..... aurasa son and those rights related back to the date of the death of the adoptive father. These texts or rules cannot be used for circumventing the plain intendment of the provision. This decision, on contrary, squarely goes against the accountable person. 13. Having regard to the above discussion, we hold that the deceased had full power of disposition over the property left by him, the value of which was includible in his estate under s.6 of the Estate Duty Act. There are, of course, some other grounds in this appeal by the accountable person. Both the sides, however, agree that it will be fair and in the interests of justice if the order of the Appellate Controller is set aside with a direction to consider those grounds afresh according to law on merits, after allowing the parties reasonable opportunity which, it was stated, was not available as the whole attention of the Appellate Controller was focussed on the main issue. 14. In the result, the appeal is partly allowed.
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1978 (3) TMI 128 - ITAT JAIPUR
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... ... ..... ishanker alone. 15. The learned Departmental Representative supported the order of the AAC. 16. In my opinion, the contention of the assessee must be accepted. From the affidavit and the statement of Gaurishanker it is clear that the transaction in question was entered on his behalf and appropriate entries were made in the books of the assessee maintained in the ordinary course of business. The profit earned on the said transaction were enjoyed by Gaurishanker. He disclosed these profits in his return and the assessment was made accordingly. There is no evidence on record to show that in substance the profits were earned by the assessee firm. 17. Looking to the aforesaid facts, evidence on record and the preponderance of probabilities it is established that the profits in question were earned by Gauri Shanker and, as such, the same could not be added to the total income of the assessee. 18. No other point was passed before me. 19. In the result, the appeal is allowed in part.
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1978 (3) TMI 127 - ITAT JAIPUR
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... ... ..... sent case as discussed above, the assessee has produced very material evidence in support of its contention. When such a material evidence was on record, the authorities below were not correct in following the valuation given in the sale deed in question. The assessee in the revised return worked out capital gains as under Cost of land and Building . Rs. 1,23,501.00 Value of Machinery as per books . Rs. 19,000.00 . . Rs. 1,42,501.00 Sale price . Rs. 1,50,000.00 Less (1) Cost of assets Rs. 1,42,501.00 . (2) Exp. Incurred on sale Rs. 6,661.00 Rs. 1,49,162.00 . . Rs. 832.00 The capital gain worked out by the assessee is based on the basis of Valuer rsquo s report and the affidavit filed by the partner. Looking to the aforesaid facts and entire circumstances of the case, we are satisfied that the learned ITO was wrong in computing the capital against at Rs. 1,00,695. The capital gain was only Rs. 838. The tax shall be charged accordingly. 12. In the result, the appeal is allowed.
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1978 (3) TMI 126 - ITAT HYDERABAD-B
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... ... ..... for the Department has contended that these written notices should be treated as honest and the position of the assessee was no better than its position for the asst. yr. 1967-68. We have perused the written notices and these notices are in substantial compliance with form No. 10. Moreover the object of enacting provisions like s. 11 of the Act is to meet the laudable purpose viz., charity, and afford relief to the truest. In the light of this also, the provisions referred to cannot be interpreted in such a manner as to effect deprivation of such a relief. We are, therefore, of the opinion that merely because the written notice was not in the prescribed form No. 10 though there was substantial compliance at the hands of the appellant, the assessee would not be disentitled to exemption for the asst. yrs. 1969-70 and 1970-71. 5. In the result, the appeal for the asst. yr. 1967-68 fails and is dismissed. The appeals for the asst. yrs. 1969-70 and 1970-71 succeed and are allowed.
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1978 (3) TMI 125 - ITAT DELHI-E
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... ... ..... he assessee. The Representative further submitted that the messing expenses were incurred mainly on the customers apart from three members of the assessee rsquo s staff who participated in it. The assessee rsquo s Representative submitted that the expenditure in question was not of the nature of entertainment and relied on the Bombay High Court decision in IT Ref.No.437 of 1977 dt.7th Oct.,1977in the case of Shah Narji Nagjee(1). 4. We have heard the parties We agree with the assessee that the expenses in question, which were incurred to provide meals, tea, etc. to the assessee rsquo s customers by way of ordinary courtesy and in accordance with the long-standing practice or custom of the trade, cannot be treated as entertainment and hence the question of disallowance does not arise. We are supported in this view by the cited Bombay High Court decision, as also the Gujarat High Court decision in Patel Bros. and Co.(2). 5. In the result, the assessee lsquo s appeal is allowed.
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1978 (3) TMI 124 - ITAT DELHI-E
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... ... ..... bonafide or an accidental mistake in sending an unsigned return. The return filed by the assessee was taken by the Department to be a valid return for about a year before the mistake was detected. On the basis of this return the Department had issued as many as 5 notices under s. 143(2). A bonafide or unintentional mistake of the type sometimes does happen even while issuing the cheques. We consider that even though the return filed on 26th June, 1972 was not a proper return in the eye of law but that at the same time the filing of the return did show that the assessee was keen to act in accordance with the law and to tile the return within the statutory period. For the purpose of levying a penalty in respect of mistake of the type under consideration, the return filed on26th May, 1973has to be treated as though filed late but with a sufficient cause. The penalty levied in the circumstances has to be cancelled and we order accordingly. 3. In the result, the appeal is allowed.
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1978 (3) TMI 123 - ITAT DELHI-C
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... ... ..... did not give any opportunity to the assessee to produce the creditor Dal Chand inspite of a written request made by the assessee in this application dt.30th March, 1975. Secondly, in the assessment proceedings, the only finding upheld by the Tribunal was that the cash credit was not proved to be genuine. There was evidence produced by the assessee to prove the genuineness of this credit. In the appeal against the assessment, the assessee has filed an affidavit of Shri Dal Chand before the AAC. In the penalty proceedings, Shri Dal Chand which was not allowed. Therefore, at best it is a case in which the explanation of the assessee has been considered to be unsatisfactory and the evidence produced by the assessee as insufficient to prove the genuineness of the credit. On such facts, penalty cannot be levied because there is not material to hold that the assessee has concealed any income. For these reasons, I cancel the impugned penalty. 4. In the result, the appeal is allowed.
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1978 (3) TMI 122 - ITAT CUTTACK
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... ... ..... section. We are unable to agree with the apprehension expressed by the AAC that if ignorance of the provision is taken to be a good cause, then every body will violate the same because provision cannot remain new for long and the same assessee cannot violate twice and still plead ignorance on the latter occasion. We have considered the contention raised by the learned Representative for the Department before us. We find that the AAC has asked the assessee to show cause as to why the appeal should not be dismissed under s. 249(4) of the Act and the assessee, in fact, gave reasons before him which were considered by the AAC. In this back ground, we do not think that any further written application for any further written application for condoning the delay was necessary. For the above reasons we direct that the appeal filed by the assessee before the AAC on 13th April, 1976 be admitted and disposed of in accordance with law by the AAC. 5. In the result, the appeal is allowed.
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1978 (3) TMI 121 - ITAT CALCUTTA-D
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... ... ..... s reconstituted on 10th April, 1965. There could be no dispute with regard to the throwing away of Rs. 21,000 by Sri Kishorilal Patodia. There is no dispute with regard to the genuineness of the firm and Sri Kishorilal Patodia had become partner in the constituted firm as Karta of the HUF. We fail to understand how the share of profit could be assessed in the hands of the individual in the changed circumstances. It might have been possible if Sri Kishorilal Patodia should not have thrown Rs.21,000 into the common hotchpot of the family. But once he created a HUF there is no legal flaw in becoming a partner in the reconstituted firm. This being the position the Commr. was not justified in invoking the provisions of s. 263 of Act and directing the ITO to assess the share of profit in the hands of Sri Kishorilal Patodia in his individual capacity. For reasons given hereinbefore we reverse the order of the CIT and restore that of the ITO. 6. In the result, the appeal is allowed.
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1978 (3) TMI 120 - ITAT BOMBAY-E
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... ... ..... rounds raised before him after giving full opportunity to the assessee. 15. So far as the appeals for the asst. yrs. 1970-71 to 1972-73. are concerned, we confirm the order of the A.A.C setting aside the assessments on the grounds as to whether the assessee was a manufacturer of petro-chemicals but the ITO will ignore all the observations made the AAC in that behalf and dispose of the question de novo after giving full opportunity to the assessee. In short, the various guidelines and restrictions placed by the AAC for deciding the question as to whether the assessee company in manufacturer of petro-chemicals or not will be treated as nonest for deciding the issue. 16. So far as the other grounds of appeals for the asst. yrs. 1970-71 to 1972-73 are concerned, we quash the order of the AAC setting aside the assessments and direct the AAC to dispose of them himself after giving opportunity to the assessee. 17. In the result, all the appeals are allowed for statistical purposes.
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1978 (3) TMI 119 - ITAT BOMBAY-D
Revenue Receipt ... ... ... ... ..... the rights of the members of the appellant-society in the property are transferable or saleable. The obligation of the member to pay to the appellant-society the share of the surplus realised from the transfer is a contractual obligation as a member of the society and no specific services are contemplated to be rendered by the assessee in regard to these transfers which is entirely the member s own look out. The other decisions cited by the learned departmental representative support the principles already discussed earlier that an organised activity or a motive of making profit is not necessary or essential to constitute a receipt in the nature of income. 11. For the reasons set out above, we agree with the revenue that the various amounts received by the assessee in these years, already referred to, are liable to inclusion in the assessee s hands as part of its income and reject the contention of the assessee in this respect. 12. In the result, the appeals stand dismissed.
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1978 (3) TMI 118 - ITAT BOMBAY-B
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... ... ..... issue. It is evident that the last substantial amount lent to Shri Chowdhary was in August, 1963, and thereafter the deceased did not make any further major advance. The Accountantable Person made efforts to collect the amounts, which efforts started immediately after the death of the deceased. She was unsuccessful and was ultimately forced to file a suit against the debtor which also was unfruitful. The debtor when into insolvency and the Accountable Person, as stated before us was not able to recover even a single pie right upto the present date. Shri Chowdhary was indebted not only to the assessee but to some other parties whose debts were discharged only to the extent of Rs. 11,000 by him by selling his machinery etc. He did not own any other assets of his own. Taking all these factors into consideration, we are of the opinion that no interference with the Appellate Controller s order is called for and we dismiss the Revenue s appeal. 7. The Revenue s appeal is dismissed.
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1978 (3) TMI 117 - ITAT BOMBAY-B
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... ... ..... issue. It is evident that the last substantial amount lent to Shri Chowdhary was in August, 1963, and thereafter the deceased did not make any further major advance. The Accountantable Person made efforts to collect the amounts, which efforts started immediately after the death of the deceased. She was unsuccessful and was ultimately forced to file a suit against the debtor which also was unfruitful. The debtor when into insolvency and the Accountable Person, as stated before us was not able to recover even a single pie right upto the present date. Shri Chowdhary was indebted not only to the assessee but to some other parties whose debts were discharged only to the extent of Rs. 11,000 by him by selling his machinery etc. He did not own any other assets of his own. Taking all these factors into consideration, we are of the opinion that no interference with the Appellate Controller s order is called for and we dismiss the Revenue s appeal. 7. The Revenue s appeal is dismissed.
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1978 (3) TMI 116 - ITAT AMRITSAR
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... ... ..... ion to impose penalty for concealment of an income. Penalty order passed by the IAC is dated 21st, 25th March 1977. The objection of the counsel, therefore, is that on 21st 25th March 1977, the IAC had not jurisdiction to impose penalty on the assessee. On merits the contention of the assessee is that no penalty can be imposed, inasmuch as the Revenue failed to establish that the additions made in the assessment of the assessee represented its income. Also it is submitted that there is no concealment due to fraud or gross or wilful negligence. Since the addition has been deleted, penalty cannot be sustained. Deletion of the addition means that there is no concealed income. It being so, the order of the IAC is set-aside. The penalty is not imposable as the very basis of imposing penalty has disappeared. We do not propose to enter into the merits of the legal objection raised by the assessee s counsel. 8. In the result, both the appeals of the assessee succeed and are allowed.
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1978 (3) TMI 115 - ITAT ALLAHABAD-B
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... ... ..... ect. Therefore, the case of the assessee is fully supported by the Andhra Pradesh decision in the case of Trikanji Punia and Sons (1). The decisions of the Gujarat High Court in the cases of Trilok Chand Chuni Lal (2) and Das and Co. s (4) case also support the assessee s claim. The Allahabad decision in the case of Goswamy Bros (2). relied upon by Shri Shukla also supports the assessee s case. The observations in that case also show that profit on the cost of materials supplied by the Government has to be computed only in those cases where the cost of materials has been included by the assessee in the total amount, for which tender had been submitted. On the facts of the present case, this decision will not support the action of the ITO. We, therefore, hold that the authorities below were not justified in estimating profit on the cost of materials supplied to the assessee by the Government for the execution of the contracts. The addition of Rs. 7,186 is accordingly deleted.
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