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Case Laws
Showing 61 to 80 of 2141 Records
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1981 (12) TMI 80 - ITAT INDORE
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... ... ..... n the decision of the Tribunal in the case M/s. Vimalchand Kishanlal in ITA No.72/Ind/76-77 and also the decision of the Hon rsquo ble High Court of Madhya Pradesh in the case of Laxmi chand Muchhal, Indore in MCC No.15 of 1977,decided on 12th Oct., 1980. We have taken the facts into consideration as placed before us. The claim of the assessee was that the expenditure was for the purpose of earning the commission from this dalali business in which the assessee has to contact different people for each transaction. It is seen that the commission shown by the assessee was to the ex tent of Rs. 67,104 and Rs.87,240 respectively and the claims for messing expenditure were only for Rs. 5,522 and Rs.7,448 for the two respective assessment years. Having regard to the nature and line of the business of the assessee, we are of the opinion that the claim of the assessee was within reasonable limit and the same should be allowed in full. 3. In the result, the appeals are allowed in full.
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1981 (12) TMI 79 - ITAT INDORE
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... ... ..... y body in any Court of law. 15. Looking to the aforesaid facts and the entirety of circumstances it is proved that the facts of the case of Seth Gopaladas are distinguishable from the facts of the present case. In the present case the Karta and Smt. Chandrakanta wife of the Karta signed the partial partition deed on their behalf and on behalf of their minor son. The partition so made was duly acted upon and it is bonafide. Relevant entries were also made in the books of account. So the present case is not hit by the ratio of decision in the case of Seth Gopaladas. Even the latest decision of the Supreme Court in the case of Kalyani supports the order passed by the ITO under s. 171 of the Act. 16. Looking to the aforesaid facts we are fully satisfied that the order passed by the ITO under s. 171 is not erroneous and prejudicial to the interest of the revenue. So the order passed by the CIT under s. 263 is not correct and the same cancelled. In the result the appeal is allowed.
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1981 (12) TMI 78 - ITAT INDORE
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... ... ..... n completed as during the next two assessment years the assessee had to spend another Rs. 18,000 in the construction work. It pointed out that of course the completed portion of the building was rented out. The contention of the assessee before the AAC regarding the capitalisation of the yield was more or less accepted. The grievance of the assessee before us is that the multiple of more than 16 times was excessive and unreasonable. We have given our consideration to the submissions made by both the sides. 4. We have perused the orders of the authorities below along with the other papers placed before us. Having regard to the facts of the case, particularly when construction was yet to be completed during the year, we feel that it would reasonable to apply the multiple of 12 1/2 times of the capitalisation as determined by the AAC. The WTO is directed to work out the relief admissible to the assessee accordingly. 5. In the result, the appeal of the assessee is partly allowed.
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1981 (12) TMI 77 - ITAT INDORE
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... ... ..... r wealth. Briefly speaking, the ld. Deptl. Rep. Supports the order of the AAC. 3. We have gone through the orders of the authorities below for our consideration along with the submissions made before us. Admittedly, the returned wealth of the assessee was marginal, and she had filed the return in compliance with the notice issued by the WTO u/s 17. The finding of the AAC that for the asst. yr. 1971-72 the return was filed on 4th July, 1975 voluntarily, is not correct in view of the fact that the assessee did file the return for that earlier year. In pursuance of the terms of the notice issued by the WTO u/s 17 for that earlier year as well 4. Having regard to the facts of the case. We are of the opinion that there was no justification for the imposition of the penalty in the instant case in view of the narration and discussion made by us as above. We, therefore, cancel the penalty orders as sustained by the AAC. 5. In the result, the appeal by the assessee is allowed in full.
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1981 (12) TMI 76 - ITAT HYDERABAD-B
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... ... ..... ofits are concerned it will be that he might not remember. Since there is no specific question put in about his being partner we cannot come to the conclusion that any material was elicited which would militate against Subba Rao having entered into the deed of partnership with father. The ld Deptl. Rep. had sought to urge that Subba Rao should be construed as the benaimdar of the father. we have already given our reasons for concluding that Subba Rao was working in the firm. There is nothing to show that the share profits of Subba Rao went to his father and therefore we cannot accept the contention the Subba Rao was a benamider of his father. We cannot also agree that material was brought on record to show that the principles of agency were lacking in the present case because as we have already stated no specific question was put to Subba Rao when he was examined about the partnership aspect we would therefore uphold the order of the AAC and dismiss the appeal of the Revenue.
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1981 (12) TMI 75 - ITAT HYDERABAD-A
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... ... ..... that he had not or could not have gifted such amounts to his daughter over a period of years. In the absence of any such evidence showing that it is not possible to accept the explanation offered by the assessee, the stand taken by the lower authorities that the assessee is exigible to the penalty under s. 271(1)(c) cannot be accepted. We, therefore, cancel the penalty of Rs. 11,000 sustained by the AAC. 8. In respect of the small quantum of Rs. 1,000 on which the revenue has come in appeal, we are of the view that considering the other sons of the assessee, there is nothing improper in the stand taken by the assessee before us that this expenditure of Rs. 1,000 could have been met out of the funds accounted for by the assessee. The AAC was, therefore, justified in cancelling the penalty to the extent of Rs. 8,500 including the penalty on this sum of Rs. 1,000. 9. In the result, the appeal filed by the department is dismissed while the appeal filed by the assessee is allowed.
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1981 (12) TMI 74 - ITAT DELHI-E
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... ... ..... t section. It cannot be considered under any other section and disallowed, as s. 35-B is a self contained provision and sub-s,(ii) thereof clearly states that any expenditure referred in sub-s. (1) is not to be considered for allowance under any other provision of the Act. In view of this, I would delete the disallowance of Rs.9,296 . In the asst. yr. 1976-77, the claim was allowed on the same basis. 9. This type of expenses on buyers who came from foreign countries was considered by the Special Bench in M/S. J.H. and Co.,Bombay. In that case the AAC allowed into assessee lsquo s claim in respect of each expenses and the same was confirmed by the Special Bench in that case. Since the order of the CIT (A) is on the same basis, no interference is called for in the matter. The orders of the CIT (A) on this point are accordingly confirmed. The appeals are disposed of as above. 10. In the result, the appeals of the assessee are partly allowed and that of the Revenue are dismissed.
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1981 (12) TMI 73 - ITAT DELHI-E
Chargeable Profits, Computation Of ... ... ... ... ..... of voluntarily disclosed income. FORM B Form of declaration in respect of income under section 14(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975, in case of search and seizure. It will be clear that even these forms make a clear distinction between voluntarily disclosed income under section 3(1) and declaration made under section 14, after a search and seizure. The expression voluntarily disclosed income has not been applied to the latter type of declaration, in Form B. 10. In the light of the above discussion, we have to hold that the Commissioner of Income-tax (Appeals) was wrong in directing the exclusion of the amount of Rs. 2,50,000 declared under section 14(1) of the Voluntary Disclosure Act from the assessee s total income, for the purpose of assessment under the Act. 11. In the result, we set aside the order of the Commissioner of Income-tax (Appeals) on this point and restore the order of the ITO. 12. The appeal, filed by the revenue, is allowed.
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1981 (12) TMI 72 - ITAT DELHI-B
Legal Representative, Assessment Of ... ... ... ... ..... ssessee s letter as per page 8 of the assessee s paper book placed on our file, it was brought to the notice of the WTO that the deceased has made a Will and has appointed an executor. 25. Finally, in the case of Ashutosh Banik v. CIT 1981 132 ITR 544, the Gauhati High Court has held that the assumption of jurisdiction by an assessing officer is not a procedural matter, since assumption of the jurisdiction goes to the root of the matter hence, on the facts of the assessee s cases, the WTO could not have assumed jurisdiction over the son-one of the legal heirs of the deceased for assessment purposes---in respect of the estate/net wealth of the deceased assessee in the face of there being a Will and an executor of the Will. 26. The net result is, that the assessments stand annulled, the impugned order of the lower authorities stand modified accordingly and the other grounds taken by the assessee become of mere academic interest, rather infructuous, and are not being dealt with.
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1981 (12) TMI 71 - ITAT DELHI-B
Business Deduction ... ... ... ... ..... he assessee s business but for enabling the aforesaid company to establish a mill and thereby creating a source for making purchases which source was of an enduring benefit. In the case of P. Satyanarayanan a film distributor had advanced certain amount to the producer of a film. The facts of that case are again distinguishable. In the case of Rohtas Industries Ltd. the advances were made for securing raw material and the loss was allowed because such advances were held to be wholly and exclusively for the purposes of the business. The facts of that case are also distinguishable. Thus, none of the above judgments relied on by the learned counsel for the assessee help the case of the assessee. It is not necessary for us to refer to judgments relied on by the learned departmental representative. For the aforesaid reasons, we reverse the order of the AAC and hold that the sum of Rs. 2,29,990 is not a trading loss pertaining to this year. 14. In the result, the appeal is allowed.
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1981 (12) TMI 70 - ITAT DELHI-A
Income, Accrual Of ... ... ... ... ..... fits, which was at the end of the accounting period of the company of which the assessees were directors but which net profits came into existence only after the accounts had been audited and were certified by the auditors as representing the true state of affairs. We, accordingly, hold that the amounts of commission in the cases of both the assessees would fall to be assessed in the next year on receipt basis as was contended by the assessees. There was no charge of the revenue that the assessees had manoeuvred this position to reduce their tax liability in this year. The amounts had been duly shown by the assessees in the succeeding year on receipt basis. The assessees had also contended that the terms of appointment of the assessees were approved by the Company Law Board in March, 1978, which was after31-12-1977, the end of the accounting period. The two appeals are allowed. 7. As a result, the two appeals of the assessees are allowed. The department s appeal is dismissed.
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1981 (12) TMI 69 - ITAT DELHI-A
Capital Gains, Mode Of Computation ... ... ... ... ..... erused the decision of the Supreme Court in Miss Dhun Dadabhoy Kapadia v. CIT 1967 63 ITR 651, which has been followed by the Tribunal in the said case. In our view, this decision of the Supreme Court is inapplicable to the facts of the present case. We, therefore, respectfully follow the two orders of the Tribunal in the case of Kelvinator International Corporation and Arwood Corporation which we have quoted above and hold that the capital gains have been correctly computed by the ITO at Rs. 49,553. The method of computation of capital gains followed by the appellant, in the present case, by invoking rule 115 is totally uncalled for and unjustified by the facts of the present case. There is absolutely no scope for such a tortuous and circuitous method of computation of capital gains. It is just like touching one s nose by putting one s hand around one s head. We, therefore, entirely agree with the reasoning and conclusion of the Commissioner (Appeals) and dismiss the appeal.
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1981 (12) TMI 68 - ITAT DELHI-A
Deduction Of Tax At Source, Consequence Of Failure To Deduct ... ... ... ... ..... charged from the date on which such tax was deducted to the date on which such tax is actually paid. 4. The learned counsel for the assessee wanted to file certain statements before us to show that there was no default on the part of the assessee for which any interest could be charged under section 201(1A). We did not accept these statements because the assessee has not filed any appeal against the order of the Commissioner (Appeals) on this point. This is an appeal filed by the revenue and the position of the revenue cannot be made worse than what it would have been if no appeal had been filed by the revenue. The learned counsel for the assessee had also submitted on the point that there was no short deduction of tax at source and, therefore, no interest was chargeable. The Commissioner (Appeals) had not given any decision. If this position is correct, then the assessee may take such steps as may be permissible under the law. 5. In the result, both the appeals are allowed.
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1981 (12) TMI 67 - ITAT DELHI-A
Payment Of Tax, Interest Payable On Failure To Pay Tax In Time ... ... ... ... ..... by the WTO as recovery proceedings were taken against her during the pendency of the appeals. Needless to say, the WTO will adjust such payments before serving fresh demand notices on the assessee. 6. To enable the WTO to comply with these orders, we would set aside the impugned orders of the authorities below and restore the matter to the file of the WTO in order to comply with the requirements of law, in the light of our observations. 7. In the light of the above directions, we are not, for the present, going into the ground with regard to the valuation of jewellery. As far as the charging of interest for non-payment of tax is concerned, it would follow that as there has been no proper service of the notice of demand, in the first instance, it could not be said that there was any default on the part of the assessee in the payment of tax and the legal consequences of this finding will necessarily follow. 8. For statistical purposes, the appeals are treated as partly allowed.
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1981 (12) TMI 66 - ITAT DELHI-A
Appellate Assistant Commissioner, Procedure In Appeal ... ... ... ... ..... sons and nobody will hear (sic) it to say what the reasons were which weighted with the statutory authorities in passing the order. See the observations in Associated Tubewells Ltd. v. R.B. Gujarmal Modi AIR 1957 SC 742. As pointed out by the Supreme Court in the abovementioned judgment, incorporation of the reasons is necessary to demonstrate that the authority has considered the matter according to law and that its order may be subjected to judicial review. The contention of Mr. Aiyar fails. Therefore, in our opinion, the order of the AAC is vitiated both by the reason that the appellant was denied a fair opportunity of representing its case and also for the reason that it is not a speaking order. 5. Therefore, the appeal is allowed and the matter is restored to the file of the AAC. He should give due opportunity to the assessee-HUF to represent its case before him and he should decide the appeal before him on merits according to law. The impugned order is hereby set aside.
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1981 (12) TMI 65 - ITAT DELHI-A
Transfer Of Assets, Benefit Of Spouse Or Minor Child ... ... ... ... ..... o be invested by any of the partners. It is, however, also a fact that a business of this type cannot be done without any investment of capital. It is also a fact that the two partners have invested capital in the firm and so did the minor when he was admitted to the benefits of the partnership. Therefore, on the facts before us, the conclusion is irresistible that there is a direct connection between the admission of the minor to the benefits of the partnership and the interest earned on the initial capital introduced by the minor. This is not a case where no such connection has been established between the interest earned and the admission of the minor to the benefits of partnership. The rulings relied upon and cited on pages 14-16 of the paper book do not, therefore, help the assessee. Under the circumstances, therefore, interest earned on the capital investment would be includible in the income of the mother under section 64(1)(iii). 6. The appeal succeeds and is allowed.
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1981 (12) TMI 64 - ITAT DELHI-A
Firm, Registration, Continuation Of, Cancellation Of ... ... ... ... ..... were not apportioned amongst the partners in the year under consideration in the manner contemplated by the partnership deed or even if there is defect in the partnership deed which was not noticed in the prior years. See in this connection the commentary at page 1020 by Kanga and Palkhivala in Law and Practice of the Income-tax (7th edn., Vol. 1). That being the position in law, the orders of the tax authorities refusing continuation of registration to the firm on the ground that the profits have not been distributed amongst the partners in accordance with the provisions of the partnership deed or in the manner permissible under the Indian Partnership Act, 1932 cannot be sustained. The order of the AAC could not be sustained in law since the application for continuation of registration was made in time and was in order. The assessee-firm is entitled to the continuation of registration for the year under consideration. 10. Inthe result, the appeal by the assessee is allowed.
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1981 (12) TMI 63 - ITAT DELHI-A
Business Expenditure ... ... ... ... ..... d to look after his health and welfare so that he could do more for the assessee-company and help it in earning profits from his writings. It was not the assessee-company which was in demand but it was the author who in fact was in demand. The assessee was to be benefited and was to be at the receiving end by getting more of the writings from the said well known author and it was, therefore, in the interest of the assessee-company that he was kept in a proper shape and health. Such an obligation to pay would have admittedly been on the assessee-company if the author had been on the rolls of the assessee-company and such a roll did come into existence when the various writings of the author were for the assessee-company. The intervening periods between the writings did not destroy such a relationship. Seen from whatever angle, the payment in question has to be seen as made for commercial expediency and we order its deduction accordingly. 5. Inthe result, the appeal is allowed.
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1981 (12) TMI 62 - ITAT CHANDIGARH
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... ... ..... or under section 40A(2) of the Income-tax Act, Since the learned Commr. really followed the judgment of the Tribunal, we do not see any justification for interference in his order at the instance of the revenue in the manner required. Therefore, for all the years under appeal, the appeals of the revenue have to be dismissed. 24. This leaves us with the cross-objections filed by the assessee. These cross-objections challenge the sustention of the interest by the learned Commr. following the judgment of the Tribunal for the assessment year 1976-77 in the case of the assessee. Since following the judgment of the Tribunal we have confirmed the order of the Commissioner (Appeals) with regard to the appeals of the revenue and have dismissed them, the same treatment the cross-objections of the assessee deserve. We therefore, dismiss the cross-objections as well. 5. In the result, appeals of the assessee allowed, appeals of the revenue and cross-objections of the assessee dismissed.
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1981 (12) TMI 61 - ITAT CHANDIGARH
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... ... ..... was issued that the reasons were demanded by the assessee which were refused to be given by the ITO. Instant is not a case of communication of reasons regarding initiation of proceedings. 16. Before parting with the issue, we have to take note of the fact that earlier assessment framed as a consequence of s. 147(a) proceedings which was annulled by the AAC and accepted by the revenue on the short ground that no reasons were recorded, was repeated in the course of these subsequent proceedings which are subject-matter of this appeal. We are not going into the lengthy arguments regarding applicability of s. 147(a)(b) and sufficiency of reasons, etc., as we accept the main contention of the assessee on the main ground that reassessment in this case was bad in law, as the ITO did not put the material to the assessee even on her making for it, as is also observed by the AAC from the finding of his order, extracted and placed above. 17. The assessee s appeal is, therefore, allowed.
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