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Showing 101 to 120 of 213 Records
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1982 (7) TMI 113 - ITAT BOMBAY
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... ... ..... ed from the total income of the previous year relevant for the assessment year under consideration. 5. In the instant case, considering the fact that the legislature has made specific provision for bringing forward of the earlier years depreciation and aggregating it with the current year s depreciation and considering the provisions of s. 80B(5) which has treated the basic total income for the purposes of deductions under Chapter VIA of the IT Act to be such final total income, in our opinion, the decision is obvious that the unabsorbed depreciation of the previous years had first to be aggregated with the current allowance for depreciation, as may be admissible. Only thereafter the relief under s. 80HH can be determined. Precisely this is what the ITO has done. In the circumstances, in our opinion, the order of the CIT(A) upholding the order of the ITO calls for no interference and it has to be upheld. 6. In the result, the appeal filed by the assessee is hereby dismissed.
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1982 (7) TMI 112 - ITAT BANGALORE
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... ... ..... ent appeal is filed. 2. The ld. Deptl. Rep. strongly urged that the Commr. (A) was wrong in excluding 1/3rd share income of Smt. Veena R. Hinduja from the total income of the assessee. Sec. 64(1) (vi) is clearly applicable and the share income is includible in the assessee s total income as the income has arisen directly or indirectly from the gift of Rs. 5,000 made by the assessee to her. The ld. counsel for the assessee submitted that Expln. 3 does not apply to s. 64 (1)(vi). Hence, the share income of Smt. Veena R. Hinduja cannot be included in the assessee s total income. 3. We have considered the rival submissions. The Explanations 3 to s. 64 is not made applicable to s. 64 (1) (vi). It is made applicable only to cl. (iv) and (v). In view of that, the 1/3rd share income of the assessee s daughter-in-law, Smt. Veena R. Hinduja is not includible in the assessee s total income. Thus, we uphold the order of the Commr.(A). 4. In the result, the appeal fails and is dismissed.
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1982 (7) TMI 111 - ITAT BANGALORE
Credit Facilities To Members, Providing Credit Facilities ... ... ... ... ..... sioner as well a that of the ITO. In other words, the view of the Gauhati High Court was that, prima facie, interest income from securities of a similar co-operative apex bank was eligible for exemption under section 81 even with its narrower scope compared to the present section 80P. Hence, in any view of the matter, we find no justification for withdrawing the exemption earlier allowed by the ITO in the case of the assessee which was obliged to buy the securities in order to remain in business of banking for providing credit facilities to its members , a business specifically listed under sub-clause (i) of clause (a) of sub-section (2) of section 80P. It is possible to hold that interest income, in the facts of the assessee s case, is business income in every sense. At any rate, there cannot be any doubt that this income is attributable to the said business. The common order of the first appellate authority is, therefore, upheld. 4. In the result, the appeals are dismissed.
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1982 (7) TMI 110 - ITAT BANGALORE
Business Expenditure, Diversion By Overriding Title, Partnership Deed, Total Income ... ... ... ... ..... by overriding title. Even otherwise, we are not in a position to accept the claim that the payment is not wholly and exclusively for the purpose of business. On facts found by us, the payment had been made in order to retain complete right over the assets of the partnership firm in order to earn profits. If the payment had not been made, the business could have been brought to a standstill unless and until her share due under the partnership deed had been paid of. It would have been allowable even under section 37 of the Act. We are not able to find any material to suggest that the payment is merely an application of income. No authorities were also cited on behalf of the revenue though serious attempt was made to show that the authorities cited in favour of taxpayer were not on all fours with the facts of the assessee s case. 4. Under the circumstances, we have to uphold the order of the first appellate authority for all the three years and dismiss the departmental appeals.
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1982 (7) TMI 109 - ITAT BANGALORE
Appellate Authority, Assessment Order, High Court ... ... ... ... ..... AAC. In view of the decision of the Karnataka High Court in Thalibai s case the assessee is entitled to succeed on the question of jurisdiction. In the view we have taken, it is not necessary to go into the further questions whether there was any justification in the records for presuming prejudice to the revenue or whether the Commissioner was really justified in taking the view that the matter called for further investigation, as to whether the assessee was eligible for higher rate of depreciation at 30 per cent. We do not go into these questions and allow the appeal on the simple ground that the order of the ITO had merged with the order of the first appellate authority and, subsequently, that of the Tribunal and, therefore, not available for action under section 263 even in respect of matters not dealt with in the appellate orders. 5. In the result, the appeal is allowed and the order of the Commissioner cancelled restoring the original assessment as modified in appeals.
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1982 (7) TMI 108 - ITAT BANGALORE
Business Income ... ... ... ... ..... he instant case we have already pointed out that one of the objects of the assessee-company was to buy land and construct commercial, industrial and other types of buildings. The object of the company was, also to promote industries in the State of Karnataka and to achieve the target, the assessee-company constructed an industrial estate and let out the same. The assessee was also providing consultancy services to the occupants of the industrial sheds. These facts will clearly show that the income received from the industrial estate is a business income as those activities would amount to business activities. Thus, the income received from the industrial sheds is assessable as income from business. The Commissioner (Appeals) was wrong in holding that the income received from the sheds was assessable as income from property. We direct the ITO to assess the income from the industrial sheds as business income in these two years. 11. In the result, the appeals are partly allowed.
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1982 (7) TMI 107 - ITAT BANGALORE
Assessment Year ... ... ... ... ..... ar 1977-78. In the assessee s own case, though the first assessment was for the assessment year 1973-74 after arrival in India, seven years would start running from the assessment year 1973-74 and would end in the assessment year 1979-80 which is the seventh year. The assessee will, however, be eligible for exemption only for the assessment years 1977-78 to 1979-80. This also would show that the provision has been given effect prospectively and not retrospectively as wrongly assumed by the Commissioner who passed the impugned orders. It is in this view, the Commissioner for the assessment year 1977-78 allowed the assessee s revision petition. We are of the view that this Commissioner was right and the view expressed by the Commissioner for the assessment years 1978-79 and 1979-80 is wrong. We will, therefore, cancel his orders and restore the assessments. 4. In the result, appeals are allowed and the orders under section 25(2) of the Act passed by the Commissioner, cancelled.
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1982 (7) TMI 106 - ITAT AMRITSAR
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... ... ..... amount had necessarily be taken as a assessee s income at the time of receipt itself. It is true that the servicing charges are paid on advance according to the terms but at that point of time it is merely on advance and can be treated as assessee s income when it is adjusted towards the servicing receipt of a particular period. We further find that the ITO had himself applied his mind and had gone into the details of the accounts and had found as a matter of fact that the servicing charges collected in the earlier years alone could be considered towards the accrued income in this year. This was in accordance with the Post-Warranty Servicing Scheme followed by the assessee. We are, therefore, of the view that the CIT was not justified in setting aside the order of the ITO under s. 263 of the IT Act as according to us the order of the ITO was not erroneous or prejudicial to the interest of revenue. We, therefore, set aside the order of the CIT and allow the assessee s appeal.
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1982 (7) TMI 105 - ITAT AMRITSAR
Mistake Apparent From Record, Rectification Proceedings, Retained Assets, Seized Assets ... ... ... ... ..... ve an impression that interest was allowable on excess value of the assets over the liabilities due. It is not clear whether this was by way of concession or an interpretation of section 132B(4). If the intention of the department is to pay interest on the value of the assets retained, they should be fair to the taxpayers and if the assessee approaches the ITO for allowance of interest, such interest should be allowed according to the intention of the department. A brochure is issued in taxpayers information series but it is marked for official use only. It is meant for educating the taxpayers and if it gives an impression about the provision which should be the duty of the Government to see that the concession should be issued in the form of instructions to the departmental officers. The assessee will be free to move the ITO afresh for the allowance of interest under section 132B. We have decided the question in accordance with the provisions of law. The appeal is dismissed.
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1982 (7) TMI 104 - ITAT ALLAHABAD-A
Deduction Of Tax At Source, Interest Other Than Interest On Securities ... ... ... ... ..... s of cane growers, this was the first penalty for the defaults, and on the totality of the facts and circumstances, a lenient view should be taken of the defaults. The penalties are, therefore, reduced from 50 per cent sustained in appeal by the Commissioner (Appeals), to 25 per cent of the total tax deductible. The IAC is directed to work out the penalties accordingly and determine the relief to the assessee-company. 8. The levy of interest under section 201(1A) is obligatory where the assessee is held to have committed the defaults as laid down by sub-section (1) of section 194A and sub-section (1) of section 201. There is also no discretion vested in any authority to waive or reduce this interest which is fixed under the Act. It has not been shown to us that the interest levied under sub-section (1A) of section 201 has not been correctly worked out. We, therefore, see no reason to interfere with the levy of interest under section 201(1A). 9. The appeals are partly allowed.
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1982 (7) TMI 103 - ITAT ALLAHABAD-A
Assessment Year, Minor Child, Previous Year, Share Income ... ... ... ... ..... ssment year under appeal, both these ladies withdrew Rs. 7,500 each from their capital account and deposited the same in the Bank of Baroda. Since the money cannot be earmarked, it is difficult to believe that the withdrawal of Rs. 7,500 made by these two ladies was the very same amount which the assessee had gifted to them in the year 1973. It is no doubt true that the view taken by the income-tax authorities or taken by me may be a harsh one to the assessee. However, the authorities working under the Act, as well as the Tribunal, has to interpret the section as it is without being influenced by the fact of hardship. On the plain reading of the provisions of section 64(1)(vi), I am of the view that the income-tax authorities have rightly included the share income of the two ladies from the firm of Kamleshji Premchand in the total income of the assessee. I have, therefore, no hesitation in upholding the order of the AAC under appeal. 7. In the result, the appeal is dismissed.
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1982 (7) TMI 102 - ITAT ALLAHABAD-A
Accumulated Profits, Partnership Deed, The Constitution ... ... ... ... ..... trument of partnership and the actual state of affairs. If, on the other hand, no such business was carried on in the earlier years, this will have no effect on the business carried on by the firm evidenced by this instrument of partnership because it is not under dispute that for the year under consideration such a business was carried on. Thus, from whatever angle the matter is looked into, the recitation in clause 3 of the instrument of partnership regarding the continuance of the business of commission agency in hides and skins will have no effect on the validity or otherwise of the partnership under consideration here. Considering all this and looking to the totality of the facts and circumstances we have no hesitation in coming to the conclusion that the AAC rightly held that the assessee-firm was valid and genuine and should be granted registration if the other conditions for this purpose were satisfied. 7. The appeal filed by the revenue fails and is hereby dismissed.
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1982 (7) TMI 101 - ITAT AHMEDABAD-C
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... ... ..... sheets, profit and loss a/c pamphlets, share certificates etc. The High Court held that the assessee s business was wholly of manufacturing of goods within the meaning of cl. (2) of s. 23(2) of the IT Act, 1922. 3. In the present case the assessee used papers and processed it under a machine, used ink, chemicals. The firm produces a copy of the photograph of an original. We are of the view that this case is covered by the said decision of the Gujarat High Court and at least the activity of the firm amounts to processing and does cover by s. 5(1) (xxxii) of the Act. Therefore, the assessee is entitled to the exemption claimed. 4. The appeal is allowed.
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1982 (7) TMI 100 - ITAT AHMEDABAD-C
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... ... ..... ssee before him. It is an accepted principle in regard to administration of justice in this country that it is not enough that justice is only done but it should also appear to have been done. The AAC has disposed of the several contentions of the assessee by two sentences in para 5 of his order. From that kind of an order no higher judicial authority gather the impression that the AAC has individually applied his mind to the several objections of the assessee and then reached a conclusion against it. In order to ensure a just disposal of the assessee s appeal, it was required of the AAC to deal with the various issues raised by the assessee and write a complete and speaking order which would show that the had applied his mind to the various issues raised. Consequently, we set aside the order of the AAC under appeal and direct him to dispose of the appeal afresh in accordance with law. 3. For statistical purposes only, the appeal of the assessee may be treated to be allowed.
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1982 (7) TMI 99 - ITAT AHMEDABAD-C
Discretionary Trust, Interest Income ... ... ... ... ..... on the facts of the case. The inclusion of income in the hands of the trustees on the above basis is clearly unsustainable, in our opinion. 7. It was also submitted before us that the trustees had no authority to make the above advances to the beneficiaries. Now if this submission is considered in the light in which it is made then provisions of section 60 would not apply at all. Since the said provisions would apply to a valid transfer of income. Now if the trustees had no authority to make such advances and if it is so assumed even then we fail to see how the income from such advances could be said to be accrued to the trustees. This submission, therefore, does not advance the case of the revenue any further. 8. In light of the above discussion, therefore, we come to the conclusion that the inclusion of income from interest in the hands of the trustees for all the years under appeal was not justified. We, accordingly, delete the same. In the result, the appeals are allowed.
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1982 (7) TMI 98 - ITAT AHMEDABAD-B
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... ... ..... ess of entering into partnership as a partner and the firm in question did not carry on any activity of entering into partnership. Thus the receipts by the assessee was only for surrendering his right, etc., which arose to the assessee on the basis of partnership agreement. The receipt was, therefore, rightly held as of capital nature and not that of revenue nature. The revenue s appeal therefore fails. 12. Now so far as asst. yr. 1972-73 is concerned, Shri Shah had fairly stated tha the appeal was filed more or less on the protective measure. In fact the appeal filed by the assessee clearly supports the order of the CIT(A) in his favour and no further relief is sought for in the appeal. In this view of the matter, therefore, this appeal, in our opinion, becomes infructuous. The same is accordingly dismissed. 13. In the result the appeal filed by the assessee for 1972-73 and by the Department for 1973-74 are dismissed. The appeal for 1973-74 filed by the assessee is allowed.
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1982 (7) TMI 97 - ITAT AHMEDABAD-B
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... ... ..... ived the receipt in bona fide belief or managed the receipt in collusion with the inward clerk. The benefit of doubt always goes to the assessee in penalty proceedings being quasi-criminal in nature. In view of these facts, when the assessee is not a habitual defaulter and in the beginning he filed Form No. 6 for extension of time and before that he claimed that he has filed the return and produced the receipt, in our view, there is no case for penalty. The Department has not proved a prima facie case against the assessee. No material has been brought on record to prove mens rea or guilty mind of the assessee or that the assessee has wilfully disregarded the statutory obligations imposed on him. In our view, the entries along in the inward register are not sufficient to penalise the assessee which the Department has made the main base for penalty. 4. In the result, the penalty imposed by the ITO and confirmed by the CIT(A) is cancelled. The appeal of the assessee is allowed.
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1982 (7) TMI 96 - ITAT AHMEDABAD-A
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... ... ..... ial withdrawals year after year including the withdrawals made for purchase of a house property, the income from which is assessed in the hands of Pithwa. It is well-settled that the reasonableness of payment of remuneration has to be judged from the point of view of commercial expediency and not by subjective standard of the taxing authorities. In light of these facts, therefore, the disallowance as made by the authorities below, which is based on erroneous application of law and wrong appreciation of facts, is unsustainable in our view. We accordingly delete the disallowance. 5. The next contention relates to the disallowance of riksha charges of Rs. 2,000 out of Rs. 14,000 claimed by the assessee. Here, again, the ITO has made the said disallowance without any convincing reasons by a bald observation that the expenditure was not for the purpose of business. There is no material to support this finding. We accordingly delete the said disallowance. 6. The appeal is allowed.
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1982 (7) TMI 95 - ITAT AHMEDABAD
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... ... ..... ecision in respect of an earlier year was arrived at. But this rule, in our judgement, does not apply indealing with an order u/s. 25A(1). Income from property of a Hindu undivided family, hitherto assessed as undivided, may be assessed separately in an order u/s. 25A(1) had been passed. When such an order is made, the family ceases to be assessed as a Hindu undivided family. Thereafter, that family cannot be assessed in the status of a Hindu undivided family unless the order is set aside by a competent authority. The partition may be invalid but by the ITO s order, the seal of validity has been placed upon it. That seal could be removed only by appropriate proceedings under the Act and it would be outside our function in these proceedings to pass any order consequent upon that invalidity. 12. We, therefore, hold that it was not open to the ITO and the AAC to go behind the order passed u/s. 171 and combine the income of the two HUFs. 13. In the result, the appeal is allowed.
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1982 (7) TMI 94 - HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYD.
Customs - Shortlanded goods liable to penalty and not duty - Writ jurisdiction - Appeal - Limitation
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