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Showing 101 to 120 of 241 Records
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1984 (11) TMI 150 - ITAT NAGPUR
Profits In Lieu ... ... ... ... ..... t of voluntary retirement brought about in pursuance of a scheme of voluntary retirement, which, in other words, is a contractual termination. Once the compensation received is to be treated as profits in lieu of salary as per the definition in section 17(3), section 89 would automatically be attracted, as the same is made applicable to a payment which is treated as profits in lieu of salary under section 17(3). Once this premise is granted, the provisions of rule 21A(1)(c) and sub-rule (4) would automatically apply. Moreover, all the requirements specified in rule 21A(1)(c) are satisfied in the present case. We have, therefore, absolutely, no doubts in our mind that the compensation received by the assessee at the time of his voluntary retirement is includible under the head Profits in lieu of salary and, therefore, the same is eligible for relief under section 89, read with rule 21A. We, therefore, confirm the order of the AAC and dismiss the appeal filed by the department.
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1984 (11) TMI 145 - ITAT MADRAS-D
A Firm, Chit Fund, Partner In Firm ... ... ... ... ..... e receipt, the income of the Hindu undivided family . . . . We have set out the facts in the present case and the categorical finding by the AAC, which remains uncontroverted, is that Shri Srinivasan was fully engaged in the day-to-day management of the business, that he attended office everyday, devoted his time to chit collection and canvassing and is experienced in the line of business. He was looking after the business, whereas the other partners of the firm were away in Madras. Shri Srinivasan, thus, devoted his whole time to the business and it is clear, therefore, that the amount paid as remuneration to him was nothing, but compensation for services rendered by the individual. It was not a return for investment of family funds. Hence, the AAC was justified in directing the exclusion of that portion of the profits, namely, the amount stipulated as salary to Shri Srinivasan from the assessment of the assessee-HUF. The appeals of the department are accordingly, dismissed.
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1984 (11) TMI 143 - ITAT MADRAS-C
Hindu Undivided Family ... ... ... ... ..... v. R.M. Chidambaram Pillai 1977 106 ITR 292. It may be mentioned that this authority of the Supreme Court has been distinguished by the Full Bench of the Patna High Court in the case of Atma Ram Budhia on the ground that the question involved in that case was whether any portion of the salary drawn for services rendered by a partner of the firm was agricultural income liable to tax and not whether the income received by a partner was includible in his personal assessment or in the income of the HUF. The Patna High Court has further held that the decision of the Supreme Court in Raj Kumar Singh Hukam Chandji would apply to a case when we have to determine whether salary received by a partner from a firm for the services rendered by him is includible in his personal assessment or in the income of the HUF. 11. In view of the above discussion, the impugned order of the AAC is sound and calls for no interference. The same is, accordingly, confirmed. 12. The appeals are dismissed.
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1984 (11) TMI 141 - ITAT MADRAS-B
... ... ... ... ..... allowable as deduction as a matter of commercial or business expediency. In view of the facts and circumstances and the legal authorities cited supra, we hold that the remunerations paid to the Karta of respective HUF were only for the purposes of rendering services to the respective HUF business by looking after the affairs and interest of the HUF in the partnership business and the remuneration paid being reasonable amount and not excessive was allowable as a deduction as a matter of commercial or business expediency or as having been incurred wholly and exclusively for the purposes of business. Accordingly, we hold that the authorities were not justified in disallowing the remuneration paid to Kartas claimed by the respective HUFs. Consequently, we uphold that claim and reverse the decisions of the authorities and direct the ITO to allow the claim as deduction from the total income of the respective HUF for the asst. yr. 1979-80. 7. In the result, the appeals are allowed.
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1984 (11) TMI 138 - ITAT JAIPUR
... ... ... ... ..... ir goods. It is irrelevant that the assessee does not make a separate mention in the sale bill about the transportation charges and that he has not shown separately the hire income so received but includes the same as part of the sale price. So long as the fact remains that assessee did use his trucks for transportation of stones from his mines to his deport for the convenience of the customers, it must necessarily be concluded that this particular activity would tantamount to hiring of trucks. Therefore, on the account also the assessee s claim for depreciation at 40 per cent falls within the cl. E(1A) of Part-III of Appendix I of IT Rules, 1962. We, therefore, hold that the order of the CIT in this regard under s. 263 is erroneous and only that part of the order is set aside. So far as his order in respect of disallowance of 1/3rd of depreciation on cars and to reduce the depreciation on dumpers to 30 per cent is concerned, the same is up-held. The appeal is partly allowed.
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1984 (11) TMI 137 - ITAT JAIPUR
... ... ... ... ..... equired for filing of the returns was quite short when compared with the date of assessment, i.e., 7th March, 1978. The Madras High Court in the case of Addl. CWT vs. Babulal K. Shah and Anr. (1978) 114 ITR 370 (Mad), had held when the assessee are to file IT and WT returns determination IT of liability would be a necessary ingredient in arriving at the net wealth. The return of wealth would, therefore, follow the IT return. The judgment does not mention any creditors or debtors but the decision lays emphasis on the determination of income-tax liability as relevant criteria. This has been followed by the Tribunal in the following cases Tribunal, Bombay Bench B (1982) 12 TTJ 134 (Bom). Tribunal, Delhi Bench (1983) 15 TTJ 271 (Del). Tribunal, Madras Bench (1983) 3 ITD 293 (Mad). We, therefore, relying on the Madras High Court decision and the decision of the Tribunal as cited by the assessee s counsel before us, uphold the order of the AAC and dismiss all the Revenue s appeals.
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1984 (11) TMI 136 - ITAT JAIPUR
... ... ... ... ..... e constant and uninterrupted power supply. The fact that the power line belongs to the RSEB who obviously failed to replace it and the assessee felt complied to do so at its own cost makes the assessee s case stronger. We, therefore, allow the appeal and delete the disallowance. Insofar as the expenditure shall be allowed as Revenue expenditure, the assessee will no be entitled to depreciation thereon. 3. The next ground pertains to the disallowance of Rs. 6,678 out of expenses on complimentary passes. The ITO allowed Rs. 5,000 out of Rs. 11,678 treating the expenditure as entertainment expenditure. In our opinion, even this conclusion which has been confirmed by the CIT (A) is erroneous. The expenditure on giving complimentary passes to certain authorities and also to the distributors, etc., it not in order to entertain them or offer hospitality to them, but is pure business expenditure. We, therefore, allow this ground also and delete the addition. 4. The appeal is allowed.
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1984 (11) TMI 135 - ITAT JAIPUR
Capital Gains, Dissolution Of Firm, Sale Proceeds ... ... ... ... ..... ction provides that the liability of the partners jointly or severally and also provides the attachment of the properties of the firm. All these provisions are limited to and in relation to the various proceedings on the firm made for the various transactions up to the date of the dissolution of the firm. The order passed by the ITO would have been valid had the property been sold during the lifetime of the partners and the recoveries effected thereon. As far as recovery of the taxes from out of the assets of the firm are concerned, the department is well within its rights by means of provisions of section 189, but as far as assets that are concerned in respect of capital gains on the sale of the property, the assessment is bad in law and could not have been effected at all on the firm as there was no firm in existence on the date of the sale of the property. The order passed by the Commissioner (Appeals) is, therefore, upheld. 6. The departmental appeal is thereby dismissed.
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1984 (11) TMI 134 - ITAT JAIPUR
Advance Tax, Assessment Proceedings, False Estimate, Inaccurate Particulars, Levy Of Penalty, Penalty For Concealment
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1984 (11) TMI 133 - ITAT INDORE
... ... ... ... ..... effect of the Full Bench ruling of the Hon ble M. P. High Court. In the case before us, a copy of the old partnership deed was produced before us. The deed shows that it was a partnership at will and there was no provision that the death of a partner the firm would not dissolve. The result, therefore, is that the provisions of the Partnership Act would apply and the firm automatically got dissolved on the death of a partner and the new firm reconstituted thereafter was a successor of the old firm. Therefore, two assessments were required to be made and the ITO rightly assessed the income for both the periods separately and treated the firm for the second period as a registered firm. After the Taxation Laws (Amendment) Act, 1984, the CIT s order has lost its sanctity and has become patently erroneous. This appeal, therefore, deserves to be allowed and the order under appeal is accordingly set aside and the assessment order made by the ITO is restored. 4. The appeal is allowed.
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1984 (11) TMI 132 - ITAT HYDERABAD-B
... ... ... ... ..... ld be assessed with maximum marginal rate. 16. The learned counsel for the assessee also relied upon the Supreme Court decisions rendered in Banarsi Das v. WTO 1965 56 ITR 224 and Trustees of Gordhandas Govindram Family Charity Trust v. CIT 1973 88 ITR 47, for the proposition that mere realisation of interest does not involve earning of income, much less the trustees under a discretionary trust earning income for themselves. This matter was already dealt with by the Pune Bench of the Tribunal in its order in which it has approved this proposition. As we are following the Pune Bench decision, it is quite redundant to say that we are accepting the proposition canvassed before us. 17. In the result, we hold that the status of the trustees under the trust deed dated 14-7-1920 should be held to be that of an individual and, therefore, we hold that the assessee is entitled to the deduction under section 80L. In view of our decision, all the four appeals filed before us are allowed.
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1984 (11) TMI 131 - ITAT HYDERABAD-B
A Firm, Assessment Year, Income Tax Proceedings, Registration Of Firm, Res Judicata ... ... ... ... ..... e should imagine, is a statutory requirement. We should also imagine that similarly having chosen to accept an amount as having been partitioned between the members of the family, it may not be open to the revenue to take a different view in respect of the erstwhile coparceners assessments as long as such order of partition stands. We do not consider it necessary to go into the case law on the subject, as this legal position, we are of the view, is self-evident. Even if we were to hold that the principles relied upon by the authorities would justify their taking a different stand in this assessment, we would still be unable to disturb the order of the first appellate authority because we are of the view that both the orders of partition and registration are correct even as specifically found by the first appellate authority. In any view of the matter, the departmental appeal has to fail and it is, accordingly, dismissed. 7. In the result, the departmental appeal is dismissed.
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1984 (11) TMI 130 - ITAT HYDERABAD-A
Charitable Trust ... ... ... ... ..... trust are invested in debentures or loans then clause (a) of sub-section (2) of section 13 applies. Thus, in the instant case, the assessee is hit by section 13(2)(a) and section 13(3) of the 1961 Act and as such under section 21A of the 1957 Act, the assessee is liable to wealth-tax and it is not entitled to exemption under section 5(1)(i). 8. We find force in the alternative contention raised by the assessee by way of additional ground, which we have admitted. Under section 21A, wealth-tax shall be leviable and recoverable from the trustee or the manager in the like manner an to the same extent as if the property were held by an individual. In view of the above status, the assessee has to be taken as individual. Once the status is taken as individual, exemption under section 5(1)(xxiii) will be available to the assessee. Thus, we direct the WTO to allow exemption under section 5(1)(xxiii). 9. No other contention was raised. 10. In the result, the appeals are partly allowed.
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1984 (11) TMI 129 - ITAT DELHI-C
... ... ... ... ..... It is often said that every one is presumed to know the law, but that is not a correct statement there is no such maxim known to the law. Since the quantity of the gold held by the assessee has been disclosed by the assessee in the IT return from year to year it cannot be said that the assessee concealed the particulars of the gold and its value. It cannot also be said that the returns in this case are not voluntary. From details filed it is seen that the returns were filed by the assessee suo motu and voluntarily on 8th Dec., 1980 for the asst. yrs. 1974-75 to 1980-81. That being the position the assessee cannot be visited with penalty under s. 18(1)(a) as he was under the bona fide belief that he was not assessable under the WT Act and no return was required to be filed by him for this year. The penalty imposed under s. 18(1)(a) is accordingly not justified in the circumstances and on the facts obtained in this regard. It is accordingly cancelled. 3. The appeal is allowed.
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1984 (11) TMI 128 - ITAT DELHI-C
Appellate Authority, Intercorporate Dividends, Tribunal's Order ... ... ... ... ..... behalf of the assessee that for the purpose of granting relief under section 80M, the deduction under section 80K of Rs. 18,91,198 should be totally ignored. If we understood the contention of the assessee correctly, then accepting the interpretation placed by the assessee upon the interpretation of these sections 80AA and 80M, would mean that the assessee would get relief under section 80K of Rs. 18,91,198 and again the full relief of Rs. 26,27,908, which does not seem to us to be the Legislature s intention. If the intention of the Parliament is to nullify effect of section 80M(2), it would have done so in very explicit terms. We, therefore, hold that this view canvassed on behalf of the assessee is not borne out by the language of section 80M(2), read with section 80AA. The view taken by the Commissioner (Appeals) appealed to us to be correct and we endorse it. 8. This para is not reproduced here as it involves minor issue. 9. In the result, the appeal is allowed in part.
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1984 (11) TMI 127 - ITAT DELHI-A
... ... ... ... ..... of Smt. Devibai for the asst. yr. 1978-79 that the sum of Rs. 48,000 brought by her to India when she migrated on 5th Jan., 1977 was her own money and since the same amount which has been assessed by the ITO as income from undisclosed sources had been disapproved by the AAC and since the order passed by the AAC does not seem to have been appealed against, we see no justification for the assessment of Rs. 8,000 on the imaginary basis that the assessee had earned the sum in question by utilising the funds which belonged to him and which had been brought to India in the name of the assessee rsquo s wife. 6. We have given the above findings after appraising the evidence on record as we are in agreement with the ld. Departmental Representative that the assessee was not entitled to any confessional treatment under the aforementioned circular of the Board which actually did not apply to a case like that of the appellant. 7. In the result the appeal filed by the assessee is allowed.
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1984 (11) TMI 126 - ITAT DELHI-A
Export Business, Export Promotion, Import Entitlements, Profits And Gains ... ... ... ... ..... nor lop it off even infinitesimally. Such an exercise is not within its power. Hence, we do not find it necessary to express any opinion on the taxability of the amount in question under section 28(iv). 47. We may mention in particular that the issue whether the impugned sum was a capital receipt or not was specifically considered by the Commissioner (Appeals), who decided this in favour of the assessee. His decision was reversed by the learned Accountant Member but endorsed by the learned Judicial Member. Hence, this aspect was fully within the frame of the question referred to us. We have also given our finding in this regard. 48. In the result, we would agree with the conclusion recorded by the learned Accountant Member in paragraph No. 42 of his order, wherein he has reversed the order of the Commissioner (Appeals) and restored the order of the IAC. The matter will now go back to the Bench, which originally heard the matter for disposal in accordance with section 255(4).
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1984 (11) TMI 125 - ITAT DELHI-A
Central Government, Standard Deduction ... ... ... ... ..... he has to go and collect the pension pay order and/or to deposit the same in his bank account. He has also to incur diverse expenditure on correspondence with the pension paying authority as and when interim reliefs are allowed or allowable to the pensioner by the Government of India. Further, as rightly argued by Mr. Syali and Mr. Nargolwala, the assessee is not required to prove that he is actually incurring an expenditure in relation to the employment in the sense in which we have interpreted the said expression. In this connection, we also accept the interpretation given in this behalf by the above Benches of the Tribunal, as also by the Allahabad Bench of the Tribunal in the case of Swaroop Kishan IT Appeal No. 15 (All.) of 1978-79, decided on 10-8-1978 . 26. We, therefore, on the facts and in the circumstances of the case and our above discussion, uphold the order of the AAC in the present case. 27. In the result, the appeal by the revenue fails and is hereby dismissed.
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1984 (11) TMI 124 - ITAT DELHI
... ... ... ... ..... e apparently not questioned. The payments made by the said company to Mr. K.K. Modi were, thus, genuine payments. The CIT(Appeals) has, therefore, deleted the addition of Rs. 20 lakhs made by the ITO. 117. In the appeal filed by the revenue, the Departmental Representative has canvassed the same arguments which were advanced by the ITO to make the above addition of Rs. 26 lac and odd. In reply, the ld. counsel for the assessee, Mr. Vaish had relied on the order of the CIT(Appeals). He also highlighted that the IAC (Asst.) in the assessment order for asst. yr. 1973-74 had held that s. 40A(2)(a) was not attracted. 118. We have given consideration to the above arguments. For the reasons stated in the aforesaid earlier order of the Tribunal for asst. yr. 1971-72, with which we agree, and for the reasons stated by the CIT(Appeals), with which we also agree, we uphold the order of the CIT(Appeals) on this point also. 119. In the result, the appeal by the revenue is partly allowed.
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1984 (11) TMI 123 - ITAT DELHI
Assessment Year, Question Of Law, Rule 1BB, Tribunal's Order ... ... ... ... ..... the case of the co-owner, Mohd. Haroon Japanwala, and dismissed the departmental appeal. The orders of the WTO, the Commissioner (Appeals) and the Tribunal are at Annexures A , B and C , respectively, and they from part of the statement of the case. 9. It is on the above facts that question of law as given in paragraph No. 1 has been raised. We find that the Tribunal has dismissed the departmental appeal and had confirmed the order of the Commissioner (Appeals). We would reframe the question as under Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the consideration of rule 1BB of the Wealth-tax Rules in respect of the assessment year 1976-77 though the rule came into existence on 1-4-1979 on the ground that the said rule had retrospective effect ? 10. Though the notice was served, no suggestions have been received from the assessee. The departmental representative has also no suggestion to make. So the statement is finalised.
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