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Case Laws
Showing 61 to 80 of 1801 Records
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1978 (12) TMI 86 - ITAT MADRAS-A
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... ... ..... the character of joint family property. So far as the widow Smt. Jayalakshmi Ammal was concerned, she must be taken to have made a gift of her share in the property to the HUF. The AAC was, therefore, justified in holding that the assessment should be made in the status of HUF. 8. It is contended for the assessee that on the death of Shri Sundaravadivel Mudaliar, his estate devolved on the HUF consisting of his wife and sons and the assets and the properties belonged to the HUF and the assessment should hence be made in the status of HUF. In view of the decision of the Madras High Court in the case of Addl. CIT, Madras-II vs. V.N.A. Manickam Mudaliar and Ors.(a), on the death of Shri Sundaravadivel Mudaliar, the widow and his sons became entitled to the assets left by him as tenant-in-common and they took the properties as their exclusive properties and the contention urged on behalf of the assessee cannot be accepted. 9. In the result, the appeal fails and stands dismissed.
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1978 (12) TMI 85 - ITAT MADRAS-A
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... ... ..... r weighted deduction. It has been pointed out by the Bombay High Court in CIT vs. Eldee Wire Ropes Ltd(1)., that under s. 35B of the IT Act, 1961 where the legislature desired to exclude the expenditure incurred in India for the purpose of giving the benefit of deduction to the assessee, it had expressly done so by specifically mentioning such exclusion as in sub-cl. (Iii) of s. 35B (1)(b) and where that was not done, the expenditure could be incurred by the assessee either outside India or in India and would qualify for weighted deduction provided it pertained to the purposes mentioned in the various sub-sections of s. 35B. In view of this decision, we fail to see how the order passed by the ITO could be considered as erroneous and prejudicial to the interest of revenue. We are, therefore, of the opinion that the CIT was not justified in setting aside the order by taking action under s. 263. We accordingly, cancel the order of the CIT. 6. In the result the appeal is allowed.
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1978 (12) TMI 84 - ITAT MADRAS-A
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... ... ..... form of energy as is commonly understood i.e., motive force, the source of which is distributed. Electricity, coal, kerosene, oils and gas constitute energy or source of energy. While electricity can be distributed through over head wires, under ground cables etc., the other forms of power can be distributed only by physical delivery of coal, gas, oil etc. Distribution of gas cylinders would clearly constitute distribution of this particular form of power. It is not necessary that gas should be distributed as is done in some places through pipelines only because of the possibility of containing it within a container. As far as this form of power is concerned distribution through contained such as gas cylinders would also constitute distribution of power the business of the firm in which the assessee is a partner would therefore constitute an undertaking engaged in the distribution of power. The assessee is entitled to the relief under s. 5(1)(xxxii). 5. The appeal is allowed.
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1978 (12) TMI 83 - ITAT MADRAS-A
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... ... ..... been withdrawn. 5. True copy of the deed of partnership dt. 2nd April, 1973 has been placed before us. It is seen from cl 10 thereof that the assessee had reserved for himself absolutely the proprietary rights over all the assets, quota-rights, and goodwill. In others words, this provision eliminates operations of the provisions of s. 14 of the Partnership Act. In view of this provision, it cannot be said that there has been a transfer of the asset in respect of which development rebate had been granted to the assessee for the asst. yr. 1968-69. Therefore, there is no question of withdrawing the development rebate which had been already allowed. In this view, it is not necessary for us to consider the general question as to whether a transfer of an asset is involved when an assessee converts his proprietary business into partnership business. 6. For the above reasons we cancel the order passed by the TTO under s. 155. The order of the AAC is revesed and the appeal is allowed.
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1978 (12) TMI 68 - ITAT JAIPUR
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... ... ..... er of fact, there is no convincing evidence on record from which it could be proved that on the relevant date the assessee was having liquid cash of Rs. 28,455. If the aforesaid facts and circumstances are taken into consideration in their entirety, it would be clear that there were reasonable causes which prevented the assessee from making the payment of the tax within time as required under s. 140A of the Act. 6. As a matter of fact, the learned AAC himself was satisfied with the explanation of the assessee. Instead of cancelling the order of the penalty, the learned AAC only reduced the quantum of penalty. 7. Looking to the aforesaid facts, in our opinion, there were reasonable causes which prevented the assessee from making the payment of tax in time under s. 140A of the IT Act, 1961. So, there is no justification for sustaining the penalty of Rs. 2,500. 8. For the reasons discussed above, the order of the learned AAC is cancelled. 9. In the result, the appeal is allowed.
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1978 (12) TMI 67 - ITAT JAIPUR
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... ... ..... 2,000 is excessive. Accordingly, the disallowance is sustained. 13. The other contention of the assessee is that the assessee has paid Rs. 501 as donation to Prajya Jain Sewak Samittee, Bijainagar, an institution which enjoys the benefit of s. 80 G of the IT Act, 1961. The assessee has filed a certificate before the Tribunal. The certificate was not filed before the authorities below. So on this point the matter shall go back to the ITO. He shall examine this certificate. If he finds that it is genuine, claim under s. 80G shall be allowed. 14. Now we would take up the other appeal (ITA No. 256). The learned AAC imposed penalty of Rs. 7,000 for concealment of Rs.7,000 under s. 271(1)(c) of the Act. While deciding the quantum appeal it has been held that the learned AAC had no jurisdiction to make the addition. So the addition, were deleted. So the impugned order of penalty is cancelled. 15. In the result, appeal No. 1196 is allowed in part and appeal No. 256 is allowed fully.
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1978 (12) TMI 66 - ITAT JABALPUR
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... ... ..... s, we found this type of order-sheet maintained by the Department. The assessee had stated before the ITO even as per the order-sheet dt. 23rd Feb., 1976 that he had surrendered the cash credit, no penalty should be levied. Further, it is seen that just to avoid further litigation, the assessee had surrendered this amount of cash credit. The ITO also has not brought out any further material to show that this was the concealed income of the assessee. The penalty also was levied under the substantive section and Explan. was also not applied. The learned AAC had correctly observed that penalty on the ground of concealment can be imposed only if there is conscious and deliberate concealment on the part of the assessee. He had further observed that this burden is imposed on the Revenue by virtue of the provisions of s. 271(1)(c). We have considered all these facts and sustain the order of the learned AAC. 4. The miscellaneous application of the Department is, therefore, dismissed.
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1978 (12) TMI 65 - ITAT JABALPUR
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... ... ..... urposes of penalty is the date of such completion . The assessments were completed in all these three cases on 28th Nov., 1962. 28th Dec., 1963 and 8th Feb., 19965 respectively, which means after 1st April, 1962, and therefore, the action for imposition of penalty could be initiated and completed only under s. 271 (1) (a) of the IT Act, 1961. As penalty could be initiated and completed only under s. 271 (1) (a) of the IT Act, 1961. As penalty under s. 271 (1) (a) could not be levied after the expiry of a period of two years from the end of the financial year in which the proceedings were completed vide s. 275 (a) (i) of the IT Act 1961, which period had already expired for assessment years under appeal, the penalties imposed by the ITO and sustained by the AAC have to be cancelled. 8. It is not necessary to refer to other grounds raised by the appellant. The appeal are allowed and the penalties imposed by the authorities below for all the three assessment years are cancelled.
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1978 (12) TMI 64 - ITAT INDORE
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... ... ..... tion made by the AAC. 2. The second dispute relates to shop expenses. The ITO disallowed the whole of these expenses on the ground they included expenditure on travelling for purchase of cloth and also that since gross profit was being estimated, there was no question of expenses The AAC held that the travelling expenses were minor and were debatable to P and L A/C and we find no reason to interfere with his conclusion The simple reason is that even according to the ITO gross profit rates were applied in computing the profit of the assessee. They were not net profit rates and in order to run a shop naturally some expenses have to be incurred such as payment of electricity bills etc. The assessee disclosed fairly large incomes and once gross profit rate was applied actual expanses had to be allowed to it. The expenses claimed in the present were not unreasonable and had always been allowed earlier. Consequently, we find to substance in these appeals which are hereby dismissed.
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1978 (12) TMI 63 - ITAT HYDERABAD-B
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... ... ..... la Rao s contention is well-founded. It is elementary that if a firm consists of two partners and one of the partners retires from the firm, there is an automatic dissolution of the firm. We have no manner of doubt that the appellant-firm was dissolved automatically on the retirement of one of the partners. A new firm came into existence on the first day of the accounting year relevant to the asst. yr. 1972-73. The appellant was well justified in filing only Form No.11. If that was so, the authorities were not justified in refusing to grant the benefit of registration to the new firm. It was admitted that form No. 11 filed was within the statutory period and no doubt was also cast on the genuineness of the firm. We have no hesitation in holding that the new firm, the appellant, is entitled to claim the benefit of registration. We direct the ITO to grant registration to the firm for the relevant assessment year accordingly. 3. In the result, the appeal succeeds and is allowed.
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1978 (12) TMI 62 - ITAT HYDERABAD-A
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... ... ..... n R.C. No. 25 of 1975. In the penultimate paragraph of the judgement, this is what the Andhra Pradesh High Court observed It is well settled that there is no prohibition in law against forming partnerships or sub-partnerships and they are entitled to registration if they are found to be genuine and the applications for registration under the IT Act are in accordance with the rules. Admittedly, the sub-partnerships in the present case are found to be genuine. It is not the case of revenue that there are no sub-partnership at all. The applications for registration are also found to be in order. The sub-partnership had their own business or procuring capital to one of the partners of the main firm and also to share the profits and losses accrued to or received by him . These observations squarely apply to the facts of the present case. In view of the decision of the Andhra pradesh High Court the appeals filed by the Department must fail. 3. In the result, the same are dismissed.
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1978 (12) TMI 61 - ITAT GAUHATI
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... ... ..... e day-to-day stock register is not maintained the provisions of s. 145 cannot be attracted. The revenue, has relied upon the case law reported at 81 ITR 609 and 84 ITR 106 to support its case. But we do not find that facts to these cases can be compared to the facts of the case of the assessee. Since the facts and circumstances of the case relied upon by the Revenue are not pari materia the ratio there of have no application here. On the other hand, we find on facts a finding has been given by the AAC that except for day-to-day stock tally, the books are acceptable. The learned counsel for the assessee also submitted that the assessee was maintaining proper books of account and even day-to-day stock could be ascertained from the ledgerised entries on any particular date. This was not controverted. On the entirety of the above facts and circumstances we do not find any justification to interfere in the orders of the AAC. 8. The appeals of the Revenue are, therefore, dismissed.
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1978 (12) TMI 60 - ITAT CUTTACK
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... ... ..... tal expenditure incurred on the purchase of types at the commencement of the assessee s business has to be treated as capital expenditure. But we find force in the alternative contention raised by the learned representative for the assessee to the fact that replacements made during the previous year itself should be allowed as revenue expenditure. We therefore, direct the ITO to look into this matter and allow the assessee an opportunity of showing that a portion of the aforesaid expenditure was incurred by way of replacement of types. If the assessee succeeds in showing as aforesaid, then the ITO should allow the replacement expenses. Otherwise, he would be justified in treating this expenditure as capital expenditure. For this purpose, we set aside the reassessment of the ITO and direct him to do the assessment afresh in accordance with law after giving a reasonable opportunity of being heard. 6. In the result, the appeal may be treated as allowed for statistical purposes.
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1978 (12) TMI 59 - ITAT COCHIN
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... ... ..... f this amount has not been given to the assessee. We had requested Mr. V.R. Nair to furnish us with the working. We find that the ITO had levied an interest of Rs. 756 on the amount due under the Voluntary Disclosure Act. He had calculated the interest for a period of seven months. It would appear that the interest which the assessee would have to pay from 1st April, 1976 would be more or less equal to the amount which has been already demanded from him. So there is no way of knowing that any further interest is due from the assessee. Even if interest is to be paid we have to hold that such interest has already been paid. 13. In view of the above finding we are of opinion that the assessee had complied with all the requirements of s.14(5A) of the Voluntary Disclosure Act. The assessee is therefore entitled to the immunity given under this Act. The penalty therefore has to be cancelled. In view of this we are not considering the other points raised. 14. The appeal is allowed.
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1978 (12) TMI 58 - ITAT BOMBAY-E
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... ... ..... arch, 1975 was cancelled by the Commissioner under s. 263 on 11th Dec., 1975, immediately after which the assessee filed an appeal to the AAC against the earlier order of the ITO on 26th Dec., 1975. All these facts, according to us, vindicate the assessee s case that the delay in filing the appeal was for good and reasonable cause. As regards the lapse on the part of the assessee to enclose demand notice along with the memorandum of appeal also, we are inclined to accept the assessee s submission that it amounts only to an irregularity and the AAC should have given the assessee an opportunity to rectify or regularise the appeal. Having regard to the above discussion, we set aside the order of the AAC and restore the appeal to his file with a direction that he should give the assessee an opportunity to file a certified copy of the demand notice and then proceed to consider the appeal on merits according to law. 6. In the result, the appeal is allowed for statistical purposes.
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1978 (12) TMI 57 - ITAT BOMBAY-E
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... ... ..... Rs. 52,000 to the assessee. Moreover, the said sum of Rs. 52,000 is preceded by a number of other receipts so much so it is difficult, if not impossible, to say on the basis of the slip of paper found that the assessee had really advanced a sum of Rs. 50,000 to M/s. Madhusudan Gordhandas and Co. In any event, it is still more difficult to say in view of the fact that on the same day there is a receipt of Rs. 52,000 that the advance, if any, is not properly and satisfactorily explained. In this view of the matter it is held that the addition of Rs. 50,000, which has to be made, if at all, under s. 69 of the IT Act, is not justified. As a natural corollary, the addition of Rs. 4,000 by way of estimated interest on the aforesaid sum of Rs. 50,000 is not justified. Both the additions are, therefore, deleted. 5. In this view of the matter, it is not necessary for us to consider whether the proceedings re-opened under s. 147(a) were valid. 6. In the result, the appeal is allowed.
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1978 (12) TMI 56 - ITAT BANGALORE
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... ... ..... ept the assessee s claim but the Tribunal had accept the assessee s claim but the Tribunal had accepted it and this was upheld by the High Court. The facts here are the same. The assessee claims relief under s. 80E before the losses of the earlier years are set off and, in our opinion, the assessee s claim is correct and is to be allowed. The same was the position in the case of Indian Transformes Ltd. Accordingly, we allow the appeal on this point and direct relief under s. 80E to be given in respect of the total income before set off of loss. The position in respect of relief under s. 80G is similar. We, therefore, hold, following our earlier order, that the AAC has rightly allowed relief under under s. 80G before setting off the loss of earlier years. The order of the AAC in this regard is upheld. The departmental appeal is also partly allowed to the extent that 1/3rd of the travelling expenses of Shri V.K. Poddar, director is, entitled to weighted deduction under s. 35B.
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1978 (12) TMI 55 - HIGH COURT OF JUDICATURE AT BOMBAY
Rate of duty (Customs) - Bill of Entry and amendment thereof ... ... ... ... ..... Assistant Collector under the order dated 16th March 1966, which was subsequently upheld in appeal by the Appellate Collector of Customs by his order dated 26th April 1967 and in revision by the Government of India by its order dated 23rd August 1972, was improper, done in an impermissible manner, and if that would be so, the orders would be required to be quashed and the amount which is paid to Government would be required to be refunded to the petitioners. 28. Accordingly the impugned orders dated 16th March 1966, 26th April 1967 and 23rd August 1972 are quashed and the 1st respondents are directed to refund and repay to the petitioners the amount of Rs. 1,60,842.39 recovered by the 1st respondents in pursuance of the said impugned orders. To the above extent the Rule is made absolute. 29. The respondents will also pay to the petitioners the costs of the petition quantified at Rs. 500/- (five hundred). The writ to be carried out by the 1st respondents by 31st January 1979.
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1978 (12) TMI 54 - HIGH COURT AT CALCUTTA
Non-levy or short levy - Promissory Estoppel - Agreement between the Govt. and the assessee - Show Cause Notice
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1978 (12) TMI 53 - HIGH COURT OF BOMBAY
Shifts - Connotation of - Explanation to Notification - Scope ... ... ... ... ..... 68 by the petitioners to the Assistant Collector, Central Excise Department annexed to the petition. In view of these facts, we do not see any merit whatsoever in the contention raised by Mr. Sukthankar. In this view of the matter, the demands made by the Department on the basis that the petitioners are running a third shift must be held to be illegal and improper and in contravention of the Notification, dated May 14, 1968 and all the three demand notices must be quashed and set aside. 7. In the result, the petition must succeed. The rule is made absolute. The three impugned demand notices, dated October 19, 1968, October 24, 1968 and October 25, 1968 and also the decision of the appellate authority, dated May 6, 1970 as also the order of the Central Government, dated January 15, 1973 holding that the factory worked in three shifts. In the circumstances of the case, there will be no order as to costs. The bank guarantee furnished by the petitioner-factory stands discharged.
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