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Income Tax - Case Laws
Showing 21 to 40 of 1345 Records
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1997 (12) TMI 145 - ITAT COCHIN
Business Income ... ... ... ... ..... n under section 80HHC of the Act. The only grievance of the department is that the assessee-company claimed deduction under this section in the prescribed form only on 20-7-1996, i.e. after completion of the assessment. Therefore, according to the department, the CIT(Appeals) was not justified in directing to allow the deduction under section 80HHC. The CIT(Appeals) by his letter dated 5-7-1996 directed the Assessing Officer to furnish his report regarding eligibility or otherwise of the assessee s claim for deduction under section 80HHC. The Assessing Officer by his report dated 2-9-1996 stated that the assessee is eligible for the deduction under section 80HHC. Therefore, the CIT(Appeals) directed the Assessing Officer to allow the deduction in question. We do not find any infirmity in the order of the CIT(Appeals) in directing to allow the deduction under section 80HHC. The revenue accordingly fails on this ground as well. 22. In the result, both the appeals are dismissed.
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1997 (12) TMI 144 - ITAT COCHIN
Concealment Of Income, Penalty, Estimate Of Cost Of Construction, Unexplained Investments, Immovable Property
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1997 (12) TMI 143 - ITAT COCHIN
Limitation Period, Issuance Of Notice, Set Aside, Evidence In Support, Partnership Firm ... ... ... ... ..... xpiry of the financial year on 31-3-1990. The assessee raised an objection for making the assessment under section 143(3) within the period of one month from the date of service of demand notice issued in consequence of such assessment objecting to the assessment. 9. The learned departmental representative was requested to produce record in proof of service of the notice under section 143(2) within 15 days after hearing the appeal on 25-11-1997. He was not able to produce any evidence in support of service of the notice or issuance of the notice on 6-4-1990. Therefore, we are unable to get at the truth of the matter. In the alternative, the only inference which can be drawn is that the notice was served after the limitation was over. The assessment made basing on the issue of such notice is not legally correct and it is bad in law. In this view of the matter, we set aside the orders of the lower authorities. 10. In the result, the appellant succeeds and the appeal is allowed.
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1997 (12) TMI 142 - ITAT CHANDIGARH
Addition To Income ... ... ... ... ..... f all the basic facts necessary for the disposal of the matter are already on record and if these facts appear in the order of the ITO and the AAC. In the case of Saurashtra Packaging (P.) Ltd. their Lordships of the Hon ble Gujarat High Court took a somewhat similar view by observing that when the relevant document which was a copy of dissolution deed was on the record, then the matter could be decided by the Tribunal by reference to the relevant provisions of the Gujarat Sales Tax Act and rules and the remand to the CIT(A) was not proper. 12. The aforesaid decisions are apt in the present case where nothing was to be confronted to the assessee on set aside and the case was capable of being decided on merits one way or the other, by the Tribunal itself. In concluding, I agree with the learned Account Member in respect of the fourth point of difference as well. 13. The matter would now go back to the Division Bench for passing an order in accordance with the majority opinion.
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1997 (12) TMI 141 - ITAT CHANDIGARH
Reference To High Court, Question Of Law ... ... ... ... ..... ilarly, in respect of secret commission, it was noted that the payees could not be produced at short notice from Kangra to Solan the distance being 400 kms. and even otherwise subsequent enquiries revealed that the employees of Vinod Kumar and Co., i.e., the payees, were not working in any of the vends in Kangra District in the month when the assessment was taken up for finalisation. As against this, the learned Judicial Member made observations in para 2 of the dissenting order (reproduced above) which were quite contrary to the view expressed by the Bench to which he was a party while deciding the quantum appeal. I do not wish to elaborate any further on this aspect of the matter. 5. In concluding, I agree with the learned Accountant member that the three questions proposed by the revenue were not of law as the decision of the Tribunal was based entirely on facts. 6. The matter would now go back to the Division Bench to pass an order in accordance with the majority opinion.
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1997 (12) TMI 140 - ITAT BOMBAY-E
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... ... ..... e, cancelled on this ground also. 20. With regard to the penalties imposed under s. 273, we are of the opinion that during the previous financial year, when according to the Department, the assessee had income from undisclosed sources , there was any material on record to show that the contention of the Department is correct. The assessee during the previous financial year could never be under the impression that the income claimed by it as agricultural income will be treated as income from other sources and will not be believed as having been source of cash credits. Therefore, in our opinion, there was no reason for the assessee to have come to the conclusion that it had income which was liable for advance taxes in the previous financial year. Accordingly, the penalties levied under s. 273 are also cancelled. 21. In the result, the appeals by the assessee are allowed. Department s appeals 22. In view of our decision in assessee s appeals the Revenue s appeals are dismissed.
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1997 (12) TMI 139 - ITAT BOMBAY-E
Non-Disclosure Of Primary Facts ... ... ... ... ..... not force the Assessing Officer to refer a matter to the Valuation Officer, is distinguishable inasmuch as in the present case the assessments had been completed on the basis of the report of the Valuation Officer and so the direction of the Dy. CIT (Appeals) in the present does not tantamount to usurpation by the first appellate authority of the discretion legitimately vested in the Assessing Officer. In this view of the matter, we find no infirmity in the direction given by the Dy. CIT (Appeals) and we reject the ground for the assessment years 1980-81 to 1982-83. We have upheld the reopening of the assessments under section 17(1)(a) we find that they can be upheld as an alternate measure under section 17(1)(b) in view of the decision of the apex court in the case in Associated Stone Industries (Kotah) Ltd. 12. In view of the above, the appeals for the assessment years 1978-79 and 1979-80 are allowed and the appeals for the assessment years 1980-81 to 1982-83 are dismissed.
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1997 (12) TMI 138 - ITAT BANGALORE
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... ... ..... nauguration expenses (i) Delhi Cloth and General Mills Co. Ltd. vs. CIT (1994) 118 CTR (Del) 109 (1994) 208 ITR 785 (Del) and (ii) CIT vs. Aluminium Industries Ltd. (1995) 126 CTR (Ker) 150 (1995) 214 ITR 541 (Ker). We agree with the contentions of the assessee on this issue in principle that inauguration expenses have got to be considered to be part of the normal business expenses of the assessee and are to be allowed. However, the detailed break-up of the expenses as given in the assessment order shows that an amount of Rs. 37,700 related to catering expenses. Such expenses are clearly of the nature of entertainment expenses and are, therefore, required to be disallowed, except for the amount of Rs. 5,000. We, therefore, direct that disallowance in this regard be restricted to the amount of Rs. 32,700 only (Rs. 37,500 Rs. 5000) and delete the balance disallowance. 20. In the result, the appeals filed by the assessee are partially allowed to the above-mentioned extent only.
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1997 (12) TMI 137 - ITAT BANGALORE
Best Judgment Assessment, Capital Gains ... ... ... ... ..... s 17,30,522 chargeable to tax under section 45(4) rounded off 17,30,520 The contention on behalf of the assessee is that the market value as determined by the Assessing Officer without appreciating that the market value of the assets has been inflated while computing the capital gains is not justified. But no evidence has been brought to our notice in this regard. Therefore, the contention on behalf of the assessee that the computation of capital gains is excessive, arbitrary cannot be countenanced. Therefore, it is rejected. We do not find any reason to interfere with the computation of the short term capital gains by the authorities below. 9. The last ground is against levy of interest under sections 234A, 234B and 234C of the Income-tax Act. Interest under the above sections is leviable as a part of the assessment. The jurisdictional High Court of Karnataka has upheld the validity of the above sections. Hence, we uphold the levy. 10. In the result, the appeal is dismissed.
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1997 (12) TMI 136 - ITAT AMRITSAR
Business Expenditure ... ... ... ... ..... the above the CIT(Appeals) find force in the plea of the assessee and deleted the addition. The Revenue is in appeal before us. 17. The learned D.R. has placed reliance on the order of the Assessing Officer and the learned counsel for the assessee placed reliance on the order of the CIT(Appeals). 18. At the very beginning, it may be pointed out that the learned D.R. failed to argue as to how the amount of unutilised credit in the modvat account of the assessee can be treated as the income of the assessee because that amount cannot be encashed by the assessee and utilisation thereof was subject to statutory limitations. In the absence of reply to the query, we conclude that this amount of modvat credit cannot be treated as total income of the assessee and the CIT(Appeals) rightly deleted the same after following the answer to query published in Excise Law Times, November, 1987. 9. The result is that all the appeals of the assessee are allowed and that of Revenue is dismissed.
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1997 (12) TMI 135 - ITAT AHMEDABAD-C
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... ... ..... essee out of the scheme which was intended to help the small and marginal tax- payers. It is clear from a reading of the Board s Instruction No. 1617 dt. 18th May, 1985, and Circular No. 176, dt. 26th Aug., 1987, issued by the Directorate of Inspection (IT and Audit) admittedly reflecting the Board s views that the Government is prepared to suffer the loss of revenue by making summary assessments under s. 143(1) on the ground that the time and effort involved in unearthing the loss is the commensurate with the benefit likely to be obtained and they may be better channelised in scrutiny of cases involving larger revenue. 5.6 In the instant case, the orders under s. 143(1) were passed by the AO in pursuance of the aforesaid Instruction of the CBDT and hence these do not suffer from any grievous error. We, therefore, hold that the CIT acted without jurisdiction. We accordingly reverse his findings and allow the appeals of the assessee. 6. In the result, the appeals are allowed.
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1997 (12) TMI 134 - ITAT AHMEDABAD-C
Deductions, Income Of Co-operative Societies ... ... ... ... ..... his direction of the CIT(A) to the assessee as the assessee can press its claim of deduction under section 80P(2)(a)(i) before the A.O. which shall be liable to be examined by the A.O. on merits. We accordingly decline to interfere and uphold the finding of the CIT(A). 29. The third objection raised by the assessee reads as under - The ld. CIT(A) further erred in not deciding the alternative claim of the respondent for allowance of proportionate expenses for earning dividend income, in case the dividend income was held taxable by higher appellate authorities . This objection is consequential to the objection No. 2 raised above. Since we have upheld the decision of the CIT(A) setting aside this issue and restoring it to the file of the A.O. and the whole issue is open for examination before the A.O. This objection has become infructuous. The same is accordingly filed. 0. In the result the appeal of the revenue as well as the cross objection of the assessee are allowed in part.
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1997 (12) TMI 133 - ITAT AHMEDABAD-C
Sworn Statement, Disclosure During Search, Concealment Penalty ... ... ... ... ..... , 6, 7 and 12 of the Statement recorded at 4.00 A.M. on 9-7-1987 and question answer No. 6 of the Statement recorded on 21-7-1987. The said questions - answers clearly point out that the assessee was virtually given a tacit assurance of immunity from penalty for his having made the disclosure during search and the revenue cannot be allowed to approbate and reprobate at a later stage that while the disclosure is binding on the assessee, he would still not be entitled to immunity. In our view the entire issue needs to be looked from the stand point of Revenue s credibility and reliability in the minds of the assessee at large as pointed out by both the Gujarat and the Bombay High Courts in their Judgments referred to supra. 12. In the light of the above discussion, and in the totality of facts and circumstances of the case as well as in law we hold that there is no justification for the impugned penalty. The same is accordingly deleted. 13. In the result, the appeal is allowed.
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1997 (12) TMI 132 - ITAT AHMEDABAD-B
Investment Deposit Account ... ... ... ... ..... d provision the legislature has intended to restrict the provision so that the assessee has to make actual payment of the cost of the machineries during the previous year for the purpose of availing deduction under section 32AB of the Act. In the case of R.B. Jodha Mal Kuthiala v. CIT 1971 82 ITR 570, the Supreme Court observed that it is true that equitable considerations are irrelevant in interpreting tax laws, but those laws, like all other laws, are to be interpreted reasonably and in consonance with justice. Further the Apex Court in the case of Bajaj Tempo Ltd. v. CIT 1992 196 ITR 188/62 Taxman 480 held that a provision in a taxing statute granting incentives for promoting growth and development should be construed liberally to advance the objective of the provision and not to frustrate it. Considering the entire circumstances of the case, we are of the view that the finding recorded by the first appellate authority requires no interference. 3.6 The appeal is dismissed.
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1997 (12) TMI 108 - SC ORDER
Previous Year, Income From Other Sources ... ... ... ... ..... es) For the Respondent Ms. Kamini Jaiswal, Advocate ORDER The civil appeal is dismissed. There shall be no order as to costs.
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1997 (12) TMI 107 - SC ORDER
Preproduction, Interest ... ... ... ... ..... cluded by a decision of this court in Tuticorin Alkali Chemicals and Fertilizers Ltd. v. CIT 1997 227 ITR 172. In view of that the appeal is allowed. The judgment under appeal is set aside. There will be no order as to costs.
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1997 (12) TMI 106 - SC ORDER
Capital Or Revenue, Colloboration Agreement, Technical Fees, Royalty ... ... ... ... ..... are not persuaded to hold that the view taken by the High Court is erroneous the appeals are dismissed. There will be no order as to costs.
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1997 (12) TMI 105 - SC ORDER
Collaboration Agreement ... ... ... ... ..... ORDER We have perused the order of the High Court. We have also seen the agreement. We are not persuaded to hold that the view taken by the High Court is erroneous; the appeals are dismissed. There will be no order as to costs.
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1997 (12) TMI 104 - SUPREME COURT
Whether the balance-sheet figures as on March 31, 1972, should be taken for ascertaining the break-up value of the shares gifted and not the balance-sheet figures as on March 31, 1973 ?
Held that:- Having regard to the fact that the gift was made on the verge of the close of the accounting year ending on March 31, 1973, the balance-sheet as on March 31, 1973, should be taken as the basis for ascertaining the break-up value of the shares as on March 28, 1973. However, suitable adjustments will have to be made if there has been any variation in the value of the assets of the company between March 28, 1973, and March 31, 1973. That, however, is not the case of the assessee. Under these circumstances, the judgment under appeal is upheld. The appeal is dismissed.
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1997 (12) TMI 103 - GUJARAT HIGH COURT
Business Expenditure, Commission Paid To Partner, HUF Partner ... ... ... ... ..... be a spouse of the Hindu undivided family as such, we are of the view that when the Hindu undivided family is included in the definition of person , in the context of clause (xii) of section 5(1), children of such Hindu undivided family would only mean such of the members of the Hindu undivided family who are children, and, therefore, the gifts by the Hindu undivided family in favour of its children would be exempt under clause 5(1)(xii) of the Act, as held by us above. In view of the above discussion, we hold that the Tribunal was in error in law in holding that the applicant-Hindu undivided family was not entitled to the exemption under section 5(1)(xii) of the said Act in respect of gifts given to the daughters of the karta of the Hindu undivided family for the purposes of education. The question referred to us is, therefore, answered in the negative in favour of the assessee and against the Revenue. The reference stands disposed of accordingly with no order as to costs.
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