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Showing 121 to 140 of 220 Records
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1991 (5) TMI 100 - ITAT BOMBAY-C
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... ... ..... wed relief on that basis. 13. Before we part with this order, we would like to observe that we do appreciate the predicament in which the assessee is placed, as under the relevant provisions of the Act the accumulation of income is allowed only upto a period of 10 years which is the instant case is getting over on 31st Dec., 1991 and there is no hope that the reference would be disposed of by the Hon ble High Court by that time. If we were to accept the submissions made on behalf of the assessee, that would certainly soften the rigour of the extremely drastic restrictions contained in the relevant provision of the Act and would be more in conformity with the logic and equity. However, once it is shown that the case of the assessee comes within the letter of the law he has to be taxed, however great the hardship may appear to the judicial mind. Such hardship can be remedied only by the legislation and not by judicial interpretation. 14. In the result, the appeal is dismissed.
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1991 (5) TMI 99 - ITAT BOMBAY-C
Custom Duty, Deduction In Respect, Mercantile System, Previous Year, Revised Return ... ... ... ... ..... 1) of the Customs Act, 1962, the rate of duty applicable to the imported goods shall be the rate and valuation in force and under section 68 of the same Act, it shall be the date on which the goods were actually removed from the warehouse. In this view of the matter, we are not prepared to accept the stand taken on behalf of the assessee that it should be allowed deduction of customs duty liability at a higher figure than that claimed before the IT authorities. 20. However, in view of the aforesaid order of the Tribunal in the case of Raymond Woollen Mills Ltd., with which we fully concur, the customs duty payable by the assessee would have to be added to the value of the bonded goods shown in the stock-in-trade. The net result, as held by the CIT(A), would be that the assessee s income will have to be increased by the amount of the customs duty of Rs. 22,56,273. We would, therefore, uphold the order of the CIT(A) on this issue. 21. In the result, the appeal is partly allowed
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1991 (5) TMI 98 - ITAT BOMBAY-C
Carrying On Business ... ... ... ... ..... alty about the assessee being a manufacturer or a trader. In fact, a copy of the order of assessment for the assessment year 1988-89 has been placed before us in which the same, ITO has inter alia observed that the assessee s business continued to be same as in the last year, viz., commission agency in textiles. The Assessing Officer has proceeded to state that the details of commission received, expenses incurred etc., have been filed. In view of these facts, we are satisfied that the CIT (Appeals) was not justified in confirming the penalty levied under section 271B of the Act. The assessee being a kuchha Arhatia was not required to get its accounts audited under section 44AB and in not getting such audit report, it has not committed any default punishable under section 271B. We would, therefore, reverse the order of the CIT (Appeals) and direct that no penalty belevied on the assessee for default under section 271B. In the result, the appeals are allowed for both the years
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1991 (5) TMI 97 - ITAT BOMBAY-B
A Firm, Accounting Year, Sales Tax Act, Sole Selling Agency ... ... ... ... ..... dan Lal where the Supreme Court held that mere existence of an agreement and payment of commission does not make such payment genuine. However, in that case, the Tribunal found that on the day the selling agency agreement was executed, the selling agency firm had not even come into existence. In the present case, the selling agency has been functioning as such since 1968 and has been assessed to tax on the commission income received by it from the assessee since the assessment year 1972-73. Therefore, the ratio of the decision of the Supreme Court in this case would not be applicable to the facts of the present case. On an overall appreciation of the evidence on record and after carefully going through the various statements filed, we are satisfied that on this issue, namely, on the question of payment of commission to Bipco, the assessee is entitled to succeed. The order of the CIT(A) on this point is reversed. 20. In the result, the appeal of the assessee is allowed in part
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1991 (5) TMI 96 - ITAT BOMBAY-B
Business Income, Fixed Deposit, Previous Year, Raw Material, Textile Mill ... ... ... ... ..... have been rightly rejected by the Departmental authorities and rightly not pursued before the Tribunal by the assessee. Claim for bad debt is not available because, it is not written off in the books of and up to this year. Claim for business expenditure is not available because no disbursement had taken place in this year. However, a part of assessee s claim is acceptable as business loss, consequent upon the nationalisation of the mills, to the extent indicated above, and quantified below--- (1) Interest noted in para-2 above Rs. 17,07,108 (2) Payments shown in the analysis given in para-4 above, against--- (a) A(1)(iii) -- Amount paid to creditors for expenses Rs. 2,90,747 (b) A(1)(iv) -- Fixed Depositors Rs. 3,12,900 (c) B(1)(i) -- Amount paid to creditors for cotton etc. Rs. 1,87,388 (d) B(2)(ii) -- Amount paid to creditors for cotton etc. Rs. 152 ------------------------ Total Rs. 24,98,295 ------------------------ 10. In the result, assessee s appeal is partly allowed
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1991 (5) TMI 95 - ITAT BOMBAY-A
Carry Forward ... ... ... ... ..... urt in the case of Industrial Trust Ltd. wherein it was held that the ITO at Ajmer had no jurisdiction over the appellant and the notice issued by him and the returns submitted by the as pursuant to the notice issued by him were not valid and the fresh notices issued by the ITO, Central Circle-IV, Delhi with whom the jurisdiction lay and the assessments made by him were valid. However, in view of the Bombay High Court decision in the case of Telster Advertising Co.,(P.) Ltd. and that of the Supreme Court in Kulu Valley Transport Co.(P.) Ltd. s case the loss determined in pursuance of it return filed under section 139, though not filed within time, could not be denied to be carried forward prior to the amendment in sec. 80 of the Act, with effect from 1-4-1985. Considering all the facts and circumstances of the case, we uphold the orders of the CIT(A) for both the years under consideration. 11. In the result, both the appeals by the revenue fail. They are, therefore, dismissed
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1991 (5) TMI 94 - ITAT AMRITSAR
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... ... ..... ial Institution remains the same and no deeming provision was brought in the IT Act, interest on loan from State Financial Corporation and State Industrial Investment Corporation were also to be allowed on actual payment w.e.f. 1st April, 1991 and not earlier. Therefore, since in the present case the interest of Rs. 46,284 provided to be payable to Himachal Pradesh Financial Corporation and the previous year involved having ended on 31st March, 1989 for which the assessment year was 1989-90 certainly the provisions, which will to be applied for the asst. yr. 1991-92, could have no relevance for making disallowance on the ground that interest was not actual paid but was provided to be paid on accrual basis as on 31st March, 1989. 7. In view of the above, whatsoever may be the reasons recorded by the learned CIT(A) his decisions that the Assessing Officer was wrong in disallowing interest of Rs. 46,284 is held to be correct. 8. In the result, the Revenue s appeal is dismissed.
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1991 (5) TMI 93 - ITAT AHMEDABAD-C
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... ... ..... that this aspect might have been relevant. As far as the assessee company was concerned, it has legal existence and should be regarded as legal entity till on the basis of adequate evidence a finding was recorded that it was a fictitious company and the income belong to some other person. No such finding has been recorded. On the facts of the present case, principle laid down by the Supreme Court in the above decision would not be applicable to the assessee-company. When the assessee-company is to be taxed, what all that is required to be seen is as to what were the activities of the assessee company and what was the head of income under which the income arising from those activities would be assessable. From facts on record, we hold that the income was assessable as income from business. We accordingly modify the order of the learned CIT(A) and direct the ITO to treat the income as income from business and then make fresh assessment on that basis. 8. The appeal is allowed.
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1991 (5) TMI 92 - ITAT AHMEDABAD-C
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... ... ..... en lies on the Department to establish some blameworthy mental state of mind even in matters relating to levy of interest under s.216. we have, therefore, no hesitation in holding that the burden clearly lies upon the Revenue to prove that an estimate of advance tax furnished by the assessee was untrue to his knowledge at the point of time, when he submitted the estimate. The Department has not brought any material or evidence on record to prove the existence of mens rea or any guilty intention on the part of the assessee with reference to the facts and circumstances appearing at the time when the estimate was submitted. Considering the totality of the facts and circumstances, we find the estimate of advance tax furnished by the assessee was a honest estimate, which was prepared in a bona fide manner based on the estimate of advance tax furnished by the two partnership firms. We, therefore, cancel the penalty levied upon the appellant. 6. In the result the appeal is allowed.
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1991 (5) TMI 91 - ITAT AHMEDABAD-C
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... ... ..... the loss can be regarded to have occurred. Everything would depend upon facts of the case. In the present case the assessee filed complaint to the police and on the complaint of the assessee Mangaram was prosecuted. When criminal prosecution was pending, the assessee on the facts of the present case could have entertained reasonable belief that amount could be realised under pressure of criminal case. Consequently, the assessee was justified in waiting till the result of prosecution became known to the assessee. On the facts of the present case, the loss would be deemed to have occurred in S.Y. 2033 and the assessee had rightly claimed deduction in the relevant year. The conclusion reached by us is supported by the principle laid down by Supreme Court in the above mentioned decision. We, therefore, set aside the order of the ITO and CIT(A) on this point and direct the ITO to allow deduction of the said amount as business loss under s.28 of the Act. 9. The appeal is allowed.
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1991 (5) TMI 90 - ITAT AHMEDABAD-C
Firm Consisting, Wholly And Exclusively ... ... ... ... ..... t for the assessment year 1986-87 the assessee had incurred expenses of Rs. 80,953 and the return of the assessee was accepted by the Department under section 143(1) of the Act. Mere fact that the return of subsequent year was accepted under section 143(1) would not mean that the expenses for assessment year 1984-85 were allowable. Allowability of expenses for assessment year 1984-85 has to be determined independently after considering the facts of the case. The return in which income shown is below Rs. 1 lakh is now accepted by the Department under section 143(1) as a matter of administrative policy and instructions to that effect have been given to the Income-tax Officers. Acceptance of return under section 143(1) for subsequent years would therefore, be irrelevant as far as the point in controversy was concerned. 13. For reasons given above, we set aside the order of the CIT(A) and restore the order of the ITO disallowing the expenses in question. 14. The appeal is allowed
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1991 (5) TMI 89 - ITAT AHMEDABAD-B
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... ... ..... not do, despite his residing in India with his second son for more than one year before his death. We, therefore, hold that for the purpose of the moveable property in question, which was admittedly out of India, the late Sri Gandhi was not a domicile of India at the time of his death. 10. The ACED seems to have been influenced by the purchase of a plot at Morvi by the deceased. The plot was purchased in 1964 and the conduct of the deceased in not making any effort to get a house constructed thereon upto the year 1979 suggests that he did not intend to reside in India. Similarly the investments made by the deceased in India are also no convincing proof of his intention to regain his domicile of origin. The deceased was having similar property in U.K. also. 11. To sum up we are of the opinion that the property in question is not includible in the principal value of the estate of the deceased passing on his death. The addition be, therefore, deleted. 12. The appeal is allowed.
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1991 (5) TMI 88 - ITAT AHMEDABAD-B
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... ... ..... position of penalty under. That provision thus stands vitiated vide CIT vs. Lakdhirlalji (1972) 85 ITR 77 (Guj) 9. The argument that the CIT(A) had heard the assessee on that point does not cure the inherent and foundational defect in this case. For that reason the catena of rulings cited by the Deptl. Rep., which are on durability of defects in notices and proceedings under s. 292 B, are not helpful to the Revenue. 10. Since no satisfaction for commission of default punishable under s. 273(2)(aa) was recorded by the ITO in the assessment order, remand of the case to him would serve no purpose as that foundational defect cannot now be cured. 11. To sum up we hold that for the reasons recorded hereinabove, penalty levied under s. 273(2)(aa) of the Act in this case is not at all legally sustainable. The order under appeal can, therefore, not be upheld. 12. The order of CIT(A) is set aside and the penalty levied under s. 273(2)(aa) set aside. Consequently the appeal is allowed.
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1991 (5) TMI 87 - ITAT AHMEDABAD-B
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... ... ..... position of penalty under. That provision thus stands vitiated vide CIT vs. Lakdhirlalji (1972) 85 ITR 77 (Guj) 9. The argument that the CIT(A) had heard the assessee on that point does not cure the inherent and foundational defect in this case. For that reason the catena of rulings cited by the Deptl. Rep., which are on durability of defects in notices and proceedings under s. 292 B, are not helpful to the Revenue. 10. Since no satisfaction for commission of default punishable under s. 273(2)(aa) was recorded by the ITO in the assessment order, remand of the case to him would serve no purpose as that foundational defect cannot now be cured. 11. To sum up we hold that for the reasons recorded hereinabove, penalty levied under s. 273(2)(aa) of the Act in this case is not at all legally sustainable. The order under appeal can, therefore, not be upheld. 12. The order of CIT(A) is set aside and the penalty levied under s. 273(2)(aa) set aside. Consequently the appeal is allowed.
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1991 (5) TMI 86 - ITAT AHMEDABAD-B
Movable Property, Principal Value Of Estate ... ... ... ... ..... not do, despite his residing in India with his second son for more than one year before his death. We, therefore, hold that for the purpose of the movable property in question, which was admittedly out of India, the late Sri Gandhi was not a domicile of India at the time of his death. 10. The ACED seems to have been influenced by the purchase of a plot at Morvi by the deceased. That plot was purchased in 1964 and the conduct of the deceased in not making any effort to get a house constructed thereon up to the year 1979 suggests that he did not intend to reside in India. Similarly the investments made by the deceased in India are also no convincing proof of his intention to regain his domicile of origin. The deceased was having similar property in U.K. also. 11. To sum up we are of the opinion that the property in question is not includible in the principal value of the estate of the deceased passing on his death. The addition be, therefore, deleted. 12. The appeal is allowed
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1991 (5) TMI 85 - ITAT AHMEDABAD-B
Assessee Carrying On Business, Backward Area, Bench Of Tribunal, High Court, Industrial Undertaking, Profits And Gains
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1991 (5) TMI 84 - ITAT AHMEDABAD
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... ... ..... d on death of any of the partners and would not be attracted when the firm was dissolved by deed of dissolution. I am unable to accept the above submission. As already stated when the provisions of s. 187(2) are properly scrutinised it is clear that they refer to circumstances in which the old firm continues with changes in the partners or changes in the shares of the partners. When there is express dissolution factually, nothing contained in s. 187(2) would apply. Mere fact that the proviso does not refer to dissolution by act of parties would not mean that when there is dissolution by act of parties, provisions of s. 187(2) would not be inapplicable. I hold that when there was dissolution of the firm by act of parties provisions of s. 187(2) would not be applicable and that the assessment would be required to be made in accordance with the provisions of s. 188 of the Act. The submissions made on behalf of the Department are, therefore, rejected. 6. The appeal is dismissed.
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1991 (5) TMI 83 - ITAT AHMEDABAD
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... ... ..... tion to the ITO under s. 143(2) objecting to said change. I hold that the orders passed by the ITO looking to the substance of the matter, were appealable to AAC and AAC was not justified in refusing to entertain the appeals. Consequently, the orders passed by the AAC cannot be sustained. 11. Normally, it would have been necessary to rector the matter to AAC to decides the appeals on merits. However, on merits, the point in controversy is covered in favour of assessee by the orders of the Tribunal for earlier two assessment year passed above. Consequently, it would be futile to restore the mater to the AAC. For reasons given while dealing with appeals for asst. yrs. 1980-81 and 1981-82 I hold that the trust in question was a specific trust and that assessment was required to be made in accordance with the provisions of s. 161(1) of the Act. I direct the ITO to make assessment accordingly. 12. The Department appeals are dismissed while the appeals filed by the as are allowed.
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1991 (5) TMI 82 - ITAT AHMEDABAD
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... ... ..... s are incurred wholly and exclusively for the purposes of business carried on by the assessee. Similarly, deduction in respect of interest under s. 36(1)(iii) would be allowable only if the said interest had been paid in respect of capital borrowed for the purpose of the business carried on by the assessee. The only fiction created by s. 41(2) was that balancing charge would be chargeable to income-tax as income of the business even if the business was no longer in existence. From this, it does not follow that expenses which are debited by the assessee in that year for the activities which were not business activities would be allowable as deduction from that income. As already stated unabsorbed depreciation would stand on different footing because of express provisions in s. 32 r/w s. 41(5) of the Act. Consequently, I set aside the order of the CIT(A) and restore the order of the ITO assessing the balancing charge of Rs. 38,378 as business income. 11. The appeal is allowed.
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1991 (5) TMI 81 - ITAT AHMEDABAD
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... ... ..... eligible for deduction under section 80C. The ITO has disallowed the claim on the ground that in the bank account, the amounts received by way of PF and maturity amount of CTD had been deposited. When the account maintained by the assessee in the bank comprises of several deposits, including deposits from income earned by the assessee and when investments are made out of the funds of the joint account, the Department would not be entitled to say that particular amount did not represent income chargeable to tax. Considering the entire circumstances, I hold that in the present case, AAC was not justified in confirming the disallowance of deduction in respect of investment of Rs. 15,000 made by the assessee from funds to his credit in the bank account particularly when his income chargeable to tax during the year amounted to Rs. 69,217. I, accordingly, direct the ITO to allow deduction in respect of investment of Rs. 15,000 under section 80C of the Act. 6. The appeal is allowed.
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