|
Advanced Search Options
Case Laws
Showing 141 to 160 of 241 Records
-
1985 (4) TMI 101 - ITAT CALCUTTA-B
Investment Allowance ... ... ... ... ..... appeal of the assessee has been heard by the Tribunal on 11-4-1985 and it is settled that the action under section 147(b) of the 1961 Act/34(1)(b) of the 1922 Act cannot be taken for a mistake committed by the ITO due to oversight or inadvertence in view of the decision in Indian and Eastern Newspaper Society s case. When the appeal of the assessee is taken up for hearing, the decision according to the Supreme Court is that no action can be taken under section 147(b) for the mistake committed by the ITO. Under the above circumstances, even after considering the various dates on which the argument was advanced by the departmental representative, the order passed by the ITO under section 147(b) on 15-3-1978 could not be maintained in view of the decision in Indian and Eastern Newspaper Society s case. As the order of the ITO was illegally passed under section 147(b), the order of the ITO is set aside and the original order is maintained. 7. In the result, the appeal is allowed.
-
1985 (4) TMI 100 - ITAT CALCUTTA-B
Investment Allowance ... ... ... ... ..... he business of manufacture of an article or thing, the printing done by the assessee with the machine is definitely an act of manufacture of an article. Therefore, the ITO was right in allowing the investment allowance to the assessee. The order passed by the ITO on this issue could not be taken as erroneous and prejudicial to the interest of the revenue. Moreover, the assessee s counsel in the course of the hearing indicated that the Tribunal has allowed investment allowance on X-ray machine. The assessee cited the decisions of the Tribunal in First ITO v. Dr. P. Vittal Bhat 1983 6 ITD 560 (Bang.) (SB) and Fourth ITO v. Dr. E. U. Mane 1982 1 ITD 648 (Nag.). If these decisions of the Tribunal are also taken along with the facts of the case, it is clear that the investment allowance was correctly allowed by the ITO and the order of the ITO on this issue was neither erroneous nor prejudicial to the interest of the revenue. The order of the Commissioner is, therefore, set aside.
-
1985 (4) TMI 99 - ITAT CALCUTTA
... ...
... ... ..... ailed discussion in the assessment orders, and the basis for the estimate adopted by the ITO, we come to the conclusion that the additions made by the ITO are without any basis and so are liable to be deleted. 11. We have considered the ground relating to the limitation raised by the assessee. But we do not find any force in the same. In our opinion, the ITO has clearly proceeded under section 147(a) of the Act and so the reassessment proceedings are within the period of limitation as prescribed under section 153(2)(b) of the Act. The absence of section 69C in the Act for the first two years supports the case of the assessee and even its presence in the third years does not throw any burden on the assessee to assume a higher estimate by the Revenue and to meet that point even when it was not raised by the Revenue. 12. For the above reasons, we hold that the reassessments made by the ITO are bad in law and so we cancel the same. 3. In the result, the three appeals are allowed.
-
1985 (4) TMI 98 - ITAT CALCUTTA
... ...
... ... ..... the beneficiaries were not named and identifiable on the date of order on the execution of the trust deeds. 6. This apart according to s. 166 nothing in the foregoing section of this Chapter shall prevent either the direct assessment of the person on whose behalf or for whose benefit the income therein referred to was receivable or the recovery from such person of the tax payable in respect of such income. In the present case obviously there can be direct assessment on the beneficiaries, i.e. the husbands of these girls who are not yet known and, therefore, s. 166 cannot apply. It was to provide for such cases that the Explanation has been added to s. 164. the trustees are therefore liable to be taxed at the maximum marginal rate in respect of 50per cent of share under s. 164(1) of the IT Act. 7. In the result all these appeals are allowed. The order of the AAC to this extent is set aside and it is directed that 50per cent of the trust be taxed at the maximum marginal rate.
-
1985 (4) TMI 97 - ITAT BOMBAY-E
... ...
... ... ..... case Lohiya Machines Ltd and Another vs. Union of India and Others in the last but one paragraph of their majority judgment, laid down that the retrospective amendment of s. 80-J brought about by the Finance (No. 2) Act, 1980, in so far as it amended s. 80-J by incorporating r. 19A in the section itself with retrospective effect from 1st April 1972, was merely clarificatory in nature and must accordingly be held to be valid. Considering all this, the order of the CIT (A) for the asst. yrs. 1972-73 and 1973-74 upholding the order of the ITO that in the computation of capital for the purpose of determining the relief under s. 80-J, the assets, where they were entitled to depreciation, should be taken at their written down value was perfectly justified. 8. The appeals filed by the Revenue for the asst. yrs. 1970-71 and 1971-72, therefore, succeed and are hereby allowed while the appeals filed by the assessee-company for the asst. yrs. 1972-73 and 1973-74 fail and are dismissed.
-
1985 (4) TMI 96 - ITAT BOMBAY-E
Unexplained Investment ... ... ... ... ..... hri Markhi Ganga till the date of arguments before us. Considering all the circumstances, we hold that the assessee had failed to prove that Shri Markhi Ganga had given loan to the assessee on 23-5-1967 in cash and that it was that cash amount which she had deposited in the firm. The assessee has failed to prove the real source of this amount and in the circumstances of the present case, the ITO was fully justified in inferring the said amount represented income from undisclosed sources. The reasons given by the Commissioner (Appeals) for setting aside the order of the ITO are not at all convincing. The learned Commissioner (Appeals) have not taken into account of the natural probabilities inherent in these circumstances. We, therefore, set aside the order of the Commissioner (Appeals) on this point and restore that of the ITO. 9. In the result, the appeal for the assessment year 1968-69 is allowed, while the appeals for the assessment years 1969-70 and 1970-71 are dismissed.
-
1985 (4) TMI 95 - ITAT BOMBAY-E
Assessment Year, Discretionary Trust, Private Trust ... ... ... ... ..... tance of this submission does not mean that we are ignoring the provisions of the trust deed and advancing the date of vesting. What we are pointing out is that where complete discretion is given to the trustees for income as well as corpus, under the provision of section 21(4) there is only one beneficiary both for income and corpus and his interest cannot be less than the full value of the property. 14. Shri Chokshi also made a point that the valuation given by the actuary should not have been disturbed by the WTO since the actuary was an expert on the line. In our opinion, it is open for the WTO to consider the valuation of the properties where the expert has made certain assumption in evaluation which is not valid in law. In the case before us the actuary has assumed that for a period of 31 years the beneficiary has no interest at all in the trust properties. That assumption, as we have pointed out, is not justified on the facts of the case. 15. The appeals are dismissed.
-
1985 (4) TMI 94 - ITAT BOMBAY-E
Assessment Year, Discretionary Trust, Private Trust ... ... ... ... ..... tance of this submission does not mean that we are ignoring the provisions of the trust deed and advancing the date of vesting. What we are pointing out is that where complete discretion is given to the trustees for income as well as corpus, under the provision of section 21(4) there is only one beneficiary both for income and corpus and his interest cannot be less than the full value of the property. 14. Shri Chokshi also made a point that the valuation given by the actuary should not have been disturbed by the WTO since the actuary was an expert on the line. In our opinion, it is open for the WTO to consider the valuation of the properties where the expert has made certain assumption in evaluation which is not valid in law. In the case before us the actuary has assumed that for a period of 31 years the beneficiary has no interest at all in the trust properties. That assumption, as we have pointed out, is not justified on the facts of the case. 15. The appeals are dismissed.
-
1985 (4) TMI 93 - ITAT BOMBAY-D
... ...
... ... ..... purposes of tax exemption could not be said to be outside the rule making authority concurred on the CBDT under s. 80J(1) of the IT Act. 1961. It has been further held that r. 19A, insofar as it provided for the computation of the capital employed as on the first day of the computation period, was within the rule-making authority of the CBDT under s. 80J(1). The Supreme Court further held that since r. 19A did not suffer from any infirmity and was valid in its entirety, the Finance (no. 2) Act, 1980, insofar as it amended s. 80J by incorporating the provisions of r. 19A, as sub-s. (1A) in s. 80J with retrospective effect from 1st April, 1972 was merely clarificatory in nature and was accordingly valid. In view of the aforesaid Supreme Court decision, we uphold the ITO s order by reversing the CIT (A) s order. 5. In the result, ground No. 4 is decided against the Department and ground No. 5 is decided in favour of the Department. In other words, the appeal is partly allowed.
-
1985 (4) TMI 92 - ITAT BOMBAY-D
Assessment Year, Discretionary Trust, Private Trust ... ... ... ... ..... to discharge. Considering the facts of the present appeals in the light of the judgments of the Bombay High Court in Keshub Mahindra s case and of the Calcutta High Court in Mahamaya Dassi s case, we are clearly of the view that section 168 has no application as Nariman Irani had not left a will. The property had vested in the heirs immediately upon death of Nariman Irani and the heirs can only be assessed as owners according to their share of interest. The impugned assessments made against Salma Irani in her capacity as administrator deserve to be struck off as bad in law. 15. It was mentioned by Shri Y.P. Trivedi that the heirs of Nariman Irani had filed separate returns showing their respective income and that assessments have been passed on protective basis. In view of the same, we do not think it proper to consider the merits of certain claims for deduction made by the assessee before us. 16. In the result, the appeals are allowed. The impugned assessments are set aside.
-
1985 (4) TMI 91 - ITAT BOMBAY-D
Investment Allowance, Manufacture Or Production ... ... ... ... ..... s case cannot amount to processing of goods. Accordingly, the assessee s claim for being treated as an industrial company had been correctly rejected by the lower authorities. 12. As section 32A is designed to give relief in certain cases of business venture, the article or thing for being eligible for investment allowance under the said provision must be a property capable of marketability. Assuming that the entertainment is the subject of sale to the person who enjoys the film, there is nothing which lie in turn could sell to others and, thus, it is clear that there is no subject-matter of saleable value. Article or thing must be a property capable of sale and the nature of activity carried on by the assessee does not answer to this description. We are, therefore, of the view that the authorities below were right in rejecting the claim for investment allowance and the assessee, in our opinion too, is not eligible for this benefit. 13. In the result, the appeal is dismissed.
-
1985 (4) TMI 90 - ITAT BOMBAY-B
... ...
... ... ..... pon the same trust and subject to the same powers and provisions as are herein declared and contained. In accordance with this clause in the trust deed, the trustees have kept these donations as part of the corpus of the trust of the trust fund, on the objects of the trust declared in the deed of trust. Clause 8 imposes an obligation on the trustees to hold such donations as part of the corpus of the trust and not fritter them away. So even if the letters of to the donors containing their specific directions at pp. 7 to 9 of the paper-book are to be eschewed for the reason that they were not produced before the Departmental authorities, it is clear that these donations have been received only towards the corpus of the trust and held by the trustees as forming part of the trust corpus. The assessee is, therefore, entitled to the benefit of exemption under s. 12 of the Act. Accordingly the addition of Rs. 33,000 to the income of the appellant is deleted. The appeal is allowed.
-
1985 (4) TMI 89 - ITAT BOMBAY-B
Appellate Tribunal, Assessment, Capital Gains, Time Limit For Completion of ... ... ... ... ..... is no justification for such a conclusion either on facts or in law. It, therefore, follows that the order of the Commissioner (Appeals) deleting this addition by holding that the assessee is entitled to the benefit of section 47(ii) in respect of the addition of Rs. 6,31,381 added by the ITO s capital gains is right and the same has to be upheld. 5. In view of the above conclusion reached by me on the objections raised by the revenue in its appeal to the grant of exemption to the assessee under section 47(ii), the various other submissions raised by the assessee s learned counsel and by the learned departmental representative in reply thereto (which are fully set out in the order of my learned brother) become academic and, therefore, do not require any further examination and decision. I, therefore, do not express any opinion on any of those contentions. 6. For the reasons discussed above, I agree with the learned Vice President that the revenue s appeal has to be dismissed.
-
1985 (4) TMI 88 - ITAT BANGALORE
Method Of Accounting, Hybrid System ... ... ... ... ..... hat for the year ended 30-6-1978 out of the billed amount of Rs. 55,196.35, Rs. 42,688.40 was not collected. Out of this, Rs. 40,462 was collected in the next year. In the next year, there was a balance of Rs. 1,48,490 to be collected. This increased to Rs. 2,32,495 but it is seen that for the year ended 30-6-1980 the assessee collected Rs. 6,57,680 out of Rs. 8,37,240 billed. For the year ending 30-6-1981 the outstanding was Rs. 2,97,000 but during the year ended 30-6-1982 it decreased to Rs. 2,22,776. It is also noteworthy that out of Rs. 18,05,004 billed on 30-6-1982 as much as Rs. 16,72,826 was collected during the same year. On the whole, it does not appear that the change in the method of accounting is to defraud the revenue. As a matter of fact, the facts leading to such an inference have not been noticed by the ITO in his order. We, therefore, do not see any reason to interfere with the order of the Commissioner (Appeals). The appeal filed by the revenue is dismissed.
-
1985 (4) TMI 87 - ITAT BANGALORE
Profits And Gains ... ... ... ... ..... tisans, who were paid wages and who were carrying on the manufacturing process on behalf of the assessee and the matter was remitted to the ITO to ascertain the actual activity of the assessee. In the present case, admittedly, the assessee does not pay any wages to any one who is engaged in the manufacturing process on behalf of the assessee. Therefore, it cannot be said that the assessee employs 10 or more workers in a manufacturing process as required by the section. The workmen employed by an agency of the assessee, which may itself be a different industrial undertaking, cannot be regarded as the workmen of the assessee for the purposes of this section because the object of this section is to encourage setting up of an industrial undertaking which will be defeated if the employees of others are to be treated as the employees of the assessee. We, therefore, agree with the authorities below that the assessee was not entitled to the deduction claimed. The appeal is dismissed.
-
1985 (4) TMI 86 - ITAT AMRITSAR
... ...
... ... ..... n, we have no hesitation that assumption of jurisdiction by the Competent Authority was not well founded on law or facts. It is only when the understatement of the consideration is done with a view to enable the transferee or transferors to avoid tax either under the IT Act or the WT Act that the Competent Authority is entitled to initiate the proceedings for the acquisition of the property after recording the reasons under s. 269C of the IT Act. The understatement of the consideration by itself cannot lead to finding that it was done with a view to facilitate avoidance of tax either by the transferor or by the transferees. Taking this view of the matter, we have no hesitation in striking down the order as one passed in contravention of the procedure laid out in Chapter XXA. We, therefore, direct that if the property had already been acquired the property should be released forthwith. This disposes of the appeals in favour of the three appellants. 5. All the appeals allowed.
-
1985 (4) TMI 85 - ITAT ALLAHABAD-A
... ...
... ... ..... 6. The assessee appealed to the AAC. The AAC on the facts of the case held that no refreshment was attributable to the partners. His finding was that the refreshment related to the visitors only. He further held that the assessee was entitled to the deduction of Rs. 5,000 under s. 37(2A) of IT Act, 1961. Since the disallowance was also of Rs. 5,000, he held that it was within the permissible limit of the above section. He accordingly deleted the addition of Rs. 5,000. 7. The Department is now in appeal before me. After hearing the parties. I am of the opinion that no interference is called for in the order of the AAC inasmuch as I agree with his finding in full. 8. In the Cross Objections, the assessee has supported the deletions by the AAC with regard to Rs. 13,885 and Rs. 5,000. Since, I have confirmed the findings of the AAC on this score, these objections are infructuous. 9. In the result, both the appeal and the Cross Objections are respectively dismissed and rejected.
-
1985 (4) TMI 84 - ITAT ALLAHABAD-A
... ...
... ... ..... ely Dr. R.K. Agrawal and Smt. Nisha Rani Agrawal, Dr. R.K. Agrawal and Rajiv Agrawal and Dr. R.K. Agrawal and Rohit Agrawal. One of the contentions of the ITO for refusing the claim of partition by the assessee was that these three entities had claimed the status of HUF. In my opinion that was not relevant for deciding the issue before the ITO. The issue before the ITO was whether there was a partition in the family with regard to the sum of Rs. 1,35,000. Admittedly none of the above persons had left the family. The question of their status was, therefore, irrelevant in the context of the present case. That question is left open for decision of the ITO having jurisdiction over the above persons. 8. Since I have confirmed the order of the AAC accepting the claim of partial partition in the family, I also accept his findings deleting the additions relating to incomes of partitioned assets in all the above three assessment years. 9. In the result, all the appeals are dismissed.
-
1985 (4) TMI 83 - ITAT ALLAHABAD-A
Cash System, Revocable Transfer ... ... ... ... ..... case. This is a exception to the above exception provided in section 62. We are, however, not concerned with this proviso in the present case. Section 62(2) as stated above, only states that after the power to revoke the transfer has arisen, the income will be assessable in the assessment of the transferor. This case, in my opinion, therefore, does not help the assessee as it applies only after the power to revoke arises. I have already held above that the case of the assessee is one of a revocable transfer and, therefore, it is section 61 which applies to his case. Section 62 deals with the exceptions which do not apply to the case of the assessee as stated above. I, therefore, hold that the income from Lok Bharti is assessable in the assessments of the assessee of the years under appeal in terms of section 61 as was held by the ITO. I, therefore, set aside the order of the AAC and restore that of the ITO on this issue. 13. In the result, all the appeals are partly allowed.
-
1985 (4) TMI 82 - ITAT AHMEDABAD-B
... ...
... ... ..... ed against the said parties and Maskati Cloth Market Association had certified that the matter was pending in insolvency and the said parties were not capable of meeting their dues. It is true the certificate of Maskati Mahajan is dt. 7th Oct., 1982 it cannot be said that the financial position of the said parties had become weak only on that date. In fact the other evidence like criminal complaints and insolvency proceedings as stated earlier would support the claim of the assessee that the amount, due had become bad during the relevant previous years. In a case like this ordinarily the assessee is the best judge of the situation. As pointed out by their Lordships in Sarangpur Cotton s case in absence of any overwhelming evidence to rebut the claim of the assessee, on fulfilment of the requisite conditions as aforesaid the assessee s claim in our opinion must be allowed. We therefore, uphold the decision of the CIT(A) on this point. 5. In the result the appeal is dismissed.
............
|
