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Income Tax - Case Laws
Showing 21 to 40 of 122 Records
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1986 (9) TMI 130 - ITAT HYDERABAD-B
Assessment Year, House Property, Profit On Sale ... ... ... ... ..... ings than one, the interpretation which is beneficial to the subject must be adopted. In support of this we may only refer to the two decisions of the Supreme Court in CIT v. Vegetable Products Ltd. 1973 88 ITR 192 and CED v. R. Kanakasabai 1973 89 ITR 251. In view of the same, we prefer to follow the decisions of the Karnataka High Court and that of the Delhi High Court referred to above which are in favour of the assessee in preference to the decision of the Madras High Court. Accordingly, we hold that though the assessee has used the house for her residence for less than two years she is entitled to the exemption under section 54 as the said provision does not speak of user for a continuous period of two years. Thus, the ITO was justified in allowing the claim of exemption under section 54 and the Commissioner was wrong in invoking the provisions of section 263. Accordingly, we cancel the order of the Commissioner under section 263. 5. In the result, the appeal is allowed.
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1986 (9) TMI 129 - ITAT HYDERABAD-B
A Firm, A Partner, Assessment Year, Attributable To, In Part, Minor Child, Orders Prejudicial To Interests, Partnership Deed, Share Income
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1986 (9) TMI 128 - ITAT HYDERABAD-A
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... ... ..... nalty or to authorise levy of penalty in a case like the present one before us. Under the circumstances, as the penalty proceedings under s. 271(1)(C) are quasi criminal in nature unless there are clear provisions authorising levy of penalty, the Tribunals are not entitled to levy penalty. In CIT vs. B.C. Srinivasa Setty (1981) 21 CTR (SC) 138 (1981) 128 ITR 294 (SC), the Supreme Court held that the charging section and the computation provisions together constitute integrated Code. When there is a case to which the computation provisions cannot apply at all, it is evident that such a case was not intended to fall within the charging section. This principle directly applies to the facts of the present case, in our humble opinion. We therefore hold that as there is no machinery provision for computing the quantum of penalty in a case like the present one before us there is no scope for levy of penalty at all. In the result, the appeal is allowed and the penalty is knocked off.
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1986 (9) TMI 127 - ITAT HYDERABAD-A
Assessable As, Income ... ... ... ... ..... e view that the said sum of Rs. 2,39,116 cannot be assessed again in the assessment year 1981-82. Accordingly, we delete the sum of Rs. 2,39,116 in the assessment year 1981-82. 8. Another ground in this appeal is with regard to Rs. 1,32,486 being the refund of sales tax brought to tax. An identical issue had come up for consideration before the Tribunal in IT Appeal No. 739 (Hyd.) of 1984 for the assessment year 1980-81 in the assessee s case. The Tribunal by its order dated 7-10-1985 restored the matter to the file of the Commissioner (Appeals). For the same reasons we think it proper to restore this item to the file of the Commissioner (Appeals). Accordingly we remit this item of Rs. 1,32,486 to the file of the Commissioner (Appeals) for fresh consideration in the light of our observations made in the above order of the Tribunal. 9. In the result, IT Appeal No. 1708 (Hyd.) of 1985 and 1346 (Hyd.) of 1986 are dismissed and IT Appeal No. 1706 (Hyd.) of 1985 is partly allowed.
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1986 (9) TMI 126 - ITAT HYDERABAD-A
Assessment Year, Foreign Enterprise, Gross Total Income, Mercantile System ... ... ... ... ..... und business practices in relation to the disputed claims. These reasonings will apply to the facts in relation to this assessment year also. Therefore, we uphold the order of the Commissioner (Appeals) on this point. 22. In ground No. 4, the revenue contends as follows 1. Tuticorin Port Trust 2. Madras Port Trust 3. Visakhapatnam Port Trust 4. M/s A.C.C., Tuticorin for rendering certain services, as are evidenced by the correspondence between the assessee and the customers and services were in fact rendered in pursuance of these agreements and he should have, therefore, held that the income represented by the sum of Rs. 1,48,77,973 actually accrued in the year of account notwithstanding the disputes referred to by the assessee. Similar ground was raised for the assessment year 1980-81 also and in paragraph 15 we have dismissed the ground stating the reasons therefor. For similar reasons, we reject this ground of appeal. 23. In the result, both the appeals are partly allowed.
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1986 (9) TMI 125 - ITAT HYDERABAD-A
Assessment Year ... ... ... ... ..... ls against the decision of the learned Commissioner (Appeals) and to raise specific grounds in the appeals. However, the impugned order does not contain even one sentence as to how the learned Commissioner (Appeals) had the authority to clutch at the jurisdiction and decide the fresh claims. We, therefore, feel that in order to decide the above issues, which in substance amount to finding a ground to assume jurisdiction to decide the appeal before the Commissioner (Appeals), the matter should go back to the Commissioner (Appeals). We do not wish to pronounce on the tenability or otherwise of the respective contentions advanced by the parties on the question of jurisdiction. Further, we also do not want to pronounce on the merits of the two claims as it would become unnecessary at this stage. We, therefore, set aside the impugned order of the Commissioner (Appeals). 9. In the result, the appeal filed by the assessee will be deemed to have been allowed for statistical purposes.
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1986 (9) TMI 124 - ITAT HYDERABAD-A
Assessment Year, Business Expenditure ... ... ... ... ..... TO under section 40A(5) of the Act which was set aside by the Commissioner (Appeals). The disallowance involved is Rs. 60,215 in the accounting year relevant to the assessment year 1979-80 and Rs. 1,11,764 for the accounting year relevant to the assessment year 1980-81. The learned Commissioner (Appeals) held in his impugned orders that the matter is covered by the Tribunal s decision rendered in the assessee s case for an earlier assessment year. Both the parties agreed that the matter is covered by the order of this Tribunal dated 19-7-1984 passed in IT Appeal No. 664 (Hyd.) of 1983 for the assessment year 1976-77. Even otherwise, the matter is covered by the Andhra Pradesh High Court decision in CIT v. Warner Hindustan Ltd. 1984 145 ITR 24, the Gujarat High Court s decision in CIT v. Bharat Vijay Mills Ltd. 1981 128 ITR 633. Hence, this ground raised by the assessee in both the appeals should fail. 13 to 18. These paras are not reproduced here as they involve minor issues.
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1986 (9) TMI 123 - ITAT DELHI-E
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... ... ..... ose, we have to see whether there was any objective basis for the ITO rsquo s formation of the belief that the assessee rsquo s income had escaped assessment from the relevant assessment year. For ascertaining as to what was the basis of the formation of the ITO rsquo s belief, we have merely to look at the reasons recorded by him. A perusal thereof clearly shows that he took no assistance from s. 132(4)A for this purpose. He looked at the Tribunal rsquo s order and the assessment orders of Shri H.K. Rathi, and the original return of income filed by Shri Deepak Rathi and on their basis he formed his belief under s. 147(a) and we have held above the reopening on this basis as valid. 31. For the reasons stated above, we hold that the order of the ld. AAC is unsustainable in law and, on facts and, accordingly, we reverse it and sustain the initiation of proceedings under s. 147(a) of the IT Act, 1961 in the present case. 32. In the result, the departmental appeal stands allowed.
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1986 (9) TMI 122 - ITAT DELHI-E
Appellate Assistant Commissioner, Appellate Orders ... ... ... ... ..... ITO did not give credit for TDS and when the mistake was pointed out, he did not even think it fit to analyse as to how the request for interest on refund was untenable and not correct. The learned Commissioner (Appeals) was not correct in equating a taxpayer s agitation against charging of interest under sections 139(8) and 217 of the Act with his right to claim refund, from which right the claim of interest flows under section 243 in view of specific provisions of section 246 and clause (f) noted above. 9. Therefore, reversing the Commissioner (Appeals) order and holding that the ITO wrongly declined the assessee s claim we direct that necessary interest under section 243 be computed and allowed to the appellant. The statistical working we leave it to the ITO. 10. Since permission to withdraw ground No. 1 in each of the three appeals was granted to the assessee s advocate the said grounds accordingly stand dismissed. 11. The assessee s appeals are treated as partly allowed.
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1986 (9) TMI 121 - ITAT DELHI-C
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... ... ..... n this regard, the Special Bench preferred (in Shree Arbinda Mills, to follow the decision of the Bombay High Cout in CIT vs. Tejaji Paras Ram Kharwala (1953) 23 ITR 412 (Bom) in preference to the decision of the Gujarat High Cout in Karsandas Bhagwandas Patel vs. G.V. Shah, ITO, Rajkot and Ors. (1975) 98 ITR 255 (Guj). 9. In any case, it is apparent that, on this issue, two equally valid opinions are possible, one in favour of the assessee. In such a situation, it is settled law that the interpretation in favour of the tax payer has to be preferred. Sec. CIT vs. Vegetable Products Ltd. 1973 CTR (SC) 177 (1973) 88 ITR 192 (SC). In this view, we hold that the CIT had no jurisdiction to interfere under s. 263 after31st July, 1984. 10. In the view we have taken, above, we do not find it necessary to consider the assessee s submission before us on the merits of the CIT s directions to the ITO for the assessment of capital gains computed at Rs. 2,42,512. 11. The appeal is allowed.
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1986 (9) TMI 120 - ITAT DELHI-C
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... ... ..... ng in holding that the appeal had to be dismissed in limine. Here again the decision turned on a reading of s. 61 of the old Act of 1922 r/w r. 22 made thereunder as also r. 7 of the Tribunal Rules, 1946. Hence this decision does not come in the way of accepting the assessee rsquo s claim if it meets the requirements of r. 45 (2)(e) in the light of s. 2(35) referred to above. The result is that we find no valid reason given by the commissioner(A) for dismissing the appeal at the threshold. We vacate his order and restore the appeal to his file for disposal afresh on merits after giving the assessee a reasonable opportunity of being heard. 6. The assessee has raised various objections before us on the merits of its claim for exemption under s. 11. As the appeal is being restored to the commissioner(A) for a de nevo consideration on merits, we do not find it necessary to consider the objections on merits before us. 7. The appeal is deemed to be allowed for statistical purposes.
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1986 (9) TMI 119 - ITAT DELHI-C
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... ... ..... he Department that the cotton crop is sown in the month of May, that the flowering occurs in September and that it is only in the month of October that the crop comes. Therefore, the question of there being any standing crop in August did not and could not arise. The Assistant Controller was not speaking in terms of the potential value of the crop, He was only refer ring to standing crop, which question could not arise with reference to the month of August. We have seen the audit memo and we find that it cannot be said that any information was given to the Assistant Controller on the basis of which the assessment could have been reopened. There was no information and what the Assistant Controller did was to review and change the opinion on the facts already before the ACED at the instance of the accountable person. Therefore, on facts, the reopening was invalid in terms of s. 59 of the ED Act, 1953. Therefore, the reopening is cancelled. 10. The appeal is accordingly allowed.
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1986 (9) TMI 118 - ITAT DELHI-C
Assessment Order, Assessment Year, Capital Gains, Computation Of Capital, Reference To IAC, Reference To Valuation Officer, Wealth Tax Return
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1986 (9) TMI 117 - ITAT DELHI-C
Bank Deposits, Compulsory Deposit Scheme, Failure To Pay Advance Tax, False Estimate, Income Tax, Penalty Proceedings
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1986 (9) TMI 116 - ITAT DELHI-B
Appellate Tribunal, Powers Of ... ... ... ... ..... e decision of the Supreme Court, the Tribunal should have set aside its previous order in exercise of its inherent powers and reheard the parties on merits without going into the question whether the subsequent application was made within time or not, as the Tribunal should not allow the party to suffer for its own mistake. This decision also, although on its face it may appear to be in favour of the assessee applicant, does not assist it. The decision was rendered with reference to the facts mentioned above. In the present case the appeal was not dismissed ex parte nor did the decision of the Tribunal become a nullity as in the above case. Therefore, this decision can also not be taken advantage of by the assessee. We are, therefore, of the considered view that the preliminary objection taken on behalf of the department is correct and so the present miscellaneous application is not maintainable. 5. Accordingly, the application of the assessee applicant fails and is rejected.
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1986 (9) TMI 115 - ITAT DELHI-B
Annual Charge, House Property ... ... ... ... ..... , the assessee has filed a letter before us, to the effect that his wife had not remarried so far. Therefore, in terms of the said agreement the liability of the assessee for maintenance was there at the rate of Rs. 100 per month. However, so far as the son is concerned, the agreement dated19-7-1948does not give the age of the son but only describes him as a minor. The assessment year involved being 1974-75, it is not possible to hold that the assessee s son continued to be below 18 years of age on the relevant date. Therefore, the assessee cannot say that there was any liability for the maintenance of the son in terms of the said agreement, so far as the assessment year in question is concerned. Therefore, the annual charge in terms of section 24(1)(iv) could be said to be only worth Rs. 1,200 and not Rs. 4,500. We hold accordingly. To the said extent, the ITO would allow the assessee s claim under section 24(1)(iv). 7. The department s appeal is accordingly, partly allowed.
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1986 (9) TMI 112 - ITAT COCHIN
Income, Assessable As, Appellate Assistant Commissioner, Appealable Orders ... ... ... ... ..... day or even from month to month and that it will accrue only when the accounts are closed. The closing of accounts may depend upon the contract between the parties or the operation of any law. But the profits accrue due only when the accounts are closed. In the present case the accounts are closed only on 31-3-1978 and the net profit of Rs. 73,197.36 was apportioned by the firm in its profit and loss account as under Rs. Mrs. Kochuthresia 21,959.19 Miss Etty Antony 43,918.44 Shri P.A. Jose 7,319.73 From the above it will be seen that the assessee was not given any share of profit in the said firm. According to the ratio laid down by the Supreme Court in the case mentioned supra the assessee is not entitled to any share of profit in the profits ascertained on 31-3-1978. Hence, she is not liable to be assessed on the amount of Rs. 14,845 for the assessment year 1978-79. We, therefore, confirm the order of the AAC. 8. In the result, the appeal filed by the revenue is dismissed.
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1986 (9) TMI 111 - ITAT CHANDIGARH
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... ... ..... by the lower authorities. The claim of the assessee is that he withdrew Rs. 10,000 on 19th Oct., 1983 a part of which was utilised for the running of the car also. This submission has been rejected by the lower authorities summarily without looking into the magnitude of his household expenses. I have also looked into the copy of account of the assessee in M/s Gupta Construction Co. and find that prior to 19th Oct., 1983 from 1st April, 1983 there are no withdrawals for house hold expenses. Even after 19th Oct., 1983 there are no such withdrawals. In such circumstances, I set aside the order of the AAC for fresh determination after taking into consideration the magnitude of the household expenses of the assessee and the availability of funds from these withdrawals for user of the car. While predetermining the issue, he will also take into consideration the decision of the Tribunal dt. 30th April, 1982 referred to above. 6. In the result, the appeal is allowed for statistics.
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1986 (9) TMI 108 - ITAT CALCUTTA-A
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... ... ..... cent. 12. Learned Departmental Representative supported the orders of the tax authorities below. 13. The estimate of income should be based upon some material and it should be just and proper. Merely because the assessee did not maintain books of account there should not be arbitrary estimate. In view of the fact that the ITO estimated the profits at 7.5 per in the asst. yr. 1980-81 we deem fit and proper to direct the ITO to estimate the profits in the asst. yr. 1979-80 at 7.5 per cent but it appears that the assessee itself has shown the profits much more than at 7.5 per cent of the receipts. If this is correct, the ITO shall accept the returned income of the assessee in the asst. yr. 1979-80. 14. In the result, all the appeals on the point of registration are allowed and on the point of quantum of income the appeal for the asst. yr. 1977-78 is allowed for statistical purpose, that for the asst. yr. 1978-79 is dismissed and that for the asst. yr. 1979-80 is partly allowed.
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1986 (9) TMI 106 - ITAT BOMBAY-D
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... ... ..... TR 603 (SC), the Supreme Court has held that the liability to tax in respect of any readjustment had to be determined according to the strict legal form of the transaction. The Court observed It is now well settled that the taxing authorities are not entitled in determining whether a receipt is liable to be taxed to ignore the legal character of the transaction which is the source of the receipt and to proceed on what they regard as the substance of the matter .......The taxing authority is entitled and indeed is bound to determine the true legal relation resulting from a transaction. If the parties have chosen to conceal by a device the legal relation it is open to the taxing authority to unravel the device and determine the true character of the relationship. But the legal effect of a transaction cannot be displaced by probing into the substance of the transaction. This passage answers the alternative argument of the assessee. 9. In the result, the appeal stands dismissed.
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