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Case Laws
Showing 101 to 120 of 186 Records
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1992 (12) TMI 108 - ITAT PUNE
Assessing Officer, Capital For Purposes, General Reserve, Surtax Liability, Tax Liability ... ... ... ... ..... (A) was wrong in his appreciation of the judgment of the Supreme Court and also in rejecting the claim of the assessee. In fact the accounting year of the assessee for the assessment year 1984-85 ended on 29-2-1984 and the beginning of the accounting year is 1-3-1983 on which date the excess provision was very much there forming part of the general reserve of the company. The fact that the excess has been written back on 29-2-1984 would only go to reduce the capital as on 1-3-1984 relevant for the assessment year 1985-86 only. There has been misappreciation of fact which led to the rejection of the claim of the assessee. Accordingly, we reverse the order of the CIT(A) and upholding the ground of the assessee, we direct the Assessing Officer to treat the excess provision for taxation of Rs. 4,31,964 as part of general reserve forming part of capital for the purpose of Rule 1 of Second Schedule to the Companies (Profits) Surtax Act, 1964. 6. In the result, the appeal is allowed
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1992 (12) TMI 107 - ITAT PUNE
Members' Club ... ... ... ... ..... ances and particularly the explanation furnished regarding the actual working of the machinery and pipelines installed in the factory building completely on the four walls of the building itself cannot be treated separately as a building only though the machinery and pipelines installed in it. Without the support of the walls neither the machinery nor the pipelines can be put to actual working for manufacturing of aata, maida, rava, soji, besan etc. Therefore from the explanation furnished on behalf of the appellants and by applying the functional test held in the above quoted certain decisions, there is no alternative except to come to a conclusion that the factory building is not the building but is an integral part of plant and machinery eligible for allowing investment allowance as allowable to plant and machinery itself. It is also eligible for other claims as made before the authorities below. 20. to 26. These paras are not reproduced here as they involve minor issues .
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1992 (12) TMI 106 - ITAT PUNE
Members' Club ... ... ... ... ..... s and C.K. Mammed Kayi and Sodra Devi and observed that they are not helpful to the revenue. Therefore, there is no force in the contention of the learned departmental representative as the aforesaid judgments were duly considered by the Bombay H.C. 24. If according to the revenue the Association of Persons as such including a members club is to be treated as a taxable entity then instead of depending on the interpretations of various Court s section 3 of the Wealth Tax Act could have been simply amended or enlarged to include AOP as a taxable entity. On the contrary, the Finance Act, 1992 made a specific amendment to section 45 of the Wealth Tax Act to specify social club as one of the exempted categories for Wealth Tax. 25. In the light of conspectus of judicial decisions, Board s circular and latest amendment excluding social club form Wealth Tax, we have no hesitation to uphold the orders of the CWT(A) as they are in accordance with the law. 26. The appeals are dismissed.
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1992 (12) TMI 105 - ITAT PUNE
Natural Justice ... ... ... ... ..... t justified in rejecting the claim because the expenses incurred were wholly and necessarily for the purpose of business, even if there is no contract or agreement for paying such allowance or for making such reimbursement of such expenses. The expenses have been incurred actually and bonafide and there is no dispute about it. It is immaterial whether the cars of the employees were used partly for personal purposes or not. Insofar as the assessee has reimbursed the expenses of the cars for user relating to business purposes, they are admissible as a deduction as a commercial expediency. It is neither capital expenditure nor personal expenses. Consequently, we reverse the decision of the CIT(A) on this point for the assessment year 1986-87 and direct the Assessing Officer to allow the deduction. 22. Accordingly, the appeals of the revenue for the assessment years 1985-86 and 1986-87 are allowed, while the appeal of the assessee for the assessment year 1986-87 is partly allowed
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1992 (12) TMI 104 - ITAT PUNE
Closing Stock, Market Value ... ... ... ... ..... n merits of the case after affording reasonable opportunity to the assessee in order to promote substantial justice as there is no delay in filing the first set of appeals and hence the filing of condonation petition is not necessary. Accordingly, the first set of appeals are allowed for statistical purposes. 21. Coming to the second set of appeals (WTA Nos. 157 to 162/PN/92), the proceedings were taken with reference to the memorandum of appeal filed by the assessee on 27-9-1991 which ought to be held as part and parcel of the first set of appeals and which go to rectify the mistake, if any, found in the first set of appeals filed by the general power of attorney. Therefore, they relate back to the date when the original set of appeals were flied on 26-4-1991, as held by the Patna High Court in the case of Gouri Kumari Devi. Inasmuch as the first set of appeals have been restored to the CWT(A), the second set of appeals have become infructuous and are consequently dismissed.
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1992 (12) TMI 95 - ITAT MADRAS-D
Income, Deemed To Accrue Or Arise In India. ... ... ... ... ..... Member that the amounts received by the assessee for technical services rendered by visiting experts in pursuance of the collaboration agreement entered into prior to 1-4-1976 are not liable to be taxed because of the proviso to section 9(1)(vii). The assessments have therefore, to be annulled. The matter will now go before the regular Bench for the disposal of the appeals in accordance with the opinion of the majority. ORDER On a difference of opinion between the two Members, the following question was referred to the Third Member -- Whether on the facts and in the circumstances of the case, the technical service fees paid by M/s. Bharat Heavy Electricals Ltd. to the engineering personnel of M/s. Sulzer Brothers Limited, are taxable under section 9(1)(vii) of the Income-tax Act? The Third Member has agreed with the learned Judicial Member. In conformity with the opinion of the majority of the Members who heard the case, the assessments are annulled. The appeals are allowed.
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1992 (12) TMI 93 - ITAT MADRAS-B
From Other Sources, Right Shares, Supreme Court ... ... ... ... ..... n held in time, the dividends in question would have been brought to tax only in the related assessment years. And it is a matter of record that the normal course of holding Annual General Meetings and declaring dividends in those meetings, was rendered impossible owing to the intervention of the Madras High Court. The result is that the application of the normal rule of accrual has resulted in an unintended hardship. in that all the three years dividends are brought to tax in one assessment year. Clearly, this is one of those situations which Parliament has not envisaged. And, as we see it, in such rare instances. it will be only fair to hope that the Income-tax authorities concerned will look into the matter sympathetically and redress the unintended hardship which the assessees before us had been subjected to. In expressing this hope, we are merely following the Madras case of Seth Lunidaram Tikamdas v. CIT 1980 121 ITR 824. 64. In the result, all the appeals are dismissed
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1992 (12) TMI 92 - ITAT MADRAS-B
Closing Stock, Market Value ... ... ... ... ..... nor permissible to pick out a word or a sentence from the judgment of the Supreme Court divorced from the context of the question under consideration and treat it to be the complete law declared by the court. The judgment must be read as a whole and the observations from the judgment have to be considered in the light of the questions which were before the court. A decision of the Supreme Court takes its colour from the questions involved in the case in which it is rendered and, while applying the decision to a later case, courts must carefully try to ascertain the true principle laid down by the decision . We cannot therefore read the decision of the Supreme Court in A.L.A. Firm s case as authorising the Income-tax Officer to substitute his own estimate of the market value for the value of the closing stock as agreed to by the partners in the dissolution accounts. We have, therefore, no hesitation in confirming the order of the Commissioner(Appeals). The appeal is dismissed
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1992 (12) TMI 87 - ITAT MADRAS-A
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... ... ..... bulk of the receipts of the assessee is required to pay the salary of the staff particularly when the main business of the assessee is labour-oriented. We find that the attachment of the bank account affects the conduct of the business of the assessee to the extent that the entire purpose of the appeal may be frustrated. Even though the demand is high and the assessee has offered to pay only Rs. 50,000 per month, in the peculiar circumstances of the case, we direct that the assessee shall pay the sum of Rs. 50,000 before the end of this month and we grant interim stay of the recovery of the tax. We also direct the AO to revoke the attachment of the bank accounts. The AO may issue notice under r. 2 of the Second Schedule to the IT Act so that the Revenue will have the protection of r. 16 as the assessee cannot aliminate any of its properties without the permission of the AO. The appeal itself will be posted for hearing in January, 1993. 6. This petition is treated as allowed.
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1992 (12) TMI 84 - ITAT MADRAS-A
Natural Justice ... ... ... ... ..... ay the salary of the staff particularly when the main business of the assessee is labour-oriented. We find that the attachment of the bank account affects the conduct of the business of the assessee to the extent that the entire purpose of the appeal may be frustrated. Even though the demand is high and the assessee has offered to pay only Rs. 50,000 per month, in the peculiar circumstances of the case, we direct that the assessee shall pay the sum of Rs. 50,000 before the end of this month and we grant interim stay of the recovery of the tax. We also direct the Assessing Officer to revoke the attachment of the bank accounts. The Assessing Officer may issue notice under Rule 2 of the Second Schedule to the Income-tax Act so that the revenue will have the protection of rule 16 as the assessee cannot alienate any of its properties without the permission of the Assessing Officer. The appeal itself will be posted for hearing in January 1993. 6. This petition is treated as allowed
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1992 (12) TMI 82 - ITAT JAIPUR
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... ... ..... Jhaveri Baders that the evidence sought to be relied upon by the Departmental Officers suffered from many contradictions and discrepancies. 28. Taking all these factors into account, we would agree with the submissions of Shri Ranka which may be summed up to the effect that the evidence on which the Revenue has relied and on the basis of which impugned additions have been made in all these three years is not fit to be relied upon in view of the statements on oath given by Shri P.C. Dhadda and lots of contradictions, inconsistencies and falsities discovered in the statement of John Ashlyn and the failure of the Revenue to prove the genuineness of the documents on the one hand and the liability of the assessee in this case to have discharged even a negative burden. 29. Accordingly all the additions made by the lower authorities to the originally assessed income of the assessee in the three years in appeals before us are directed to be deleted. All the three appeals are allowed.
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1992 (12) TMI 80 - ITAT JAIPUR
Business Expenditure, Transport Business ... ... ... ... ..... al attitude means ignoring the law and public interest, we would rather shun such a misguided liberal approach . Judged in the light of the discussion made so far, I have no hesitation in coming to the conclusion that making payments to the police personnel on the routes would be an act in contravention of the provisions of Indian Penal Code (Act XLV of 1860) and would accordingly amount to infraction of law besides being opposed to public policy. That would not be a normal incident of the business. It would, therefore, be disqualified as an allowable business expenditure on the ground of being in infraction of law and also being opposed to public policy. Therefore, the allowability of the expenditure in question in these appeals for various years cannot be accorded judicial recognition. The orders of the DC (Appeals) shall have therefore to be vacated. 14. In the result the DC (Appeals) s order in all the appeals are vacated, those of the ITO restored and all appeals allowed
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1992 (12) TMI 79 - ITAT JAIPUR
A Partner, Business Income, Export Business, Interest Income, Partnership Firm, Share Income
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1992 (12) TMI 78 - ITAT HYDERABAD-A
Agricultural Land, Business Income, Capital Asset, Capital Gains, Income From Business ... ... ... ... ..... R 716 (All.) and CIT v. MLM. Mahalingam Chettiar 1977 107 ITR 236 (Mad.) cited and relied upon by the learned counsel for the assessee generally support the assessee s case and the arguments that the assessee did not carry on any adventure in the nature of trade but the transaction amounts to maximum realisation as price to the capital asset held by the assessee and hence it is only a capital accretion. We, therefore, hold that the assessee is liable for capital gains tax. We direct the Income-tax Officer to compute capital gains according to law after duly taking consideration our findings in this order and determine the capital gains tax payable by the assessee for each of the three assessment years under consideration. We set aside the orders of the lower authorities determining the business income at Rs. 69,908 for assessment year 198586, Rs. 1,07,756 for assessment year 1986-87 and Rs. 32,575 for assessment year 1987-88. 23. The appeals of the assessee are partly allowed
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1992 (12) TMI 77 - ITAT HYDERABAD-A
Applied To, Cash Credits, High Court, Levy Of Penalty ... ... ... ... ..... assessee in penalty proceedings in a case where the assessee has admitted that the cash credit represents his concealed income. There is ample authority for the proposition that the Revenue need not prove anything further during penalty proceedings if, during the assessment proceedings, the assessee has already admitted that the credits represented his concealed income. As already mentioned above, in the case before us, the assessee had, without any ambiguity, admitted that the cash credits in the names of Sri Ramavatar Sharma and his wife were its own concealed income and, therefore, the ITO was not obliged to prove anything further at the time of penalty proceedings. 39. In view of the totality of the circumstances, we are, therefore, of the view that the assessee is guilty of concealment and penalty under section 271(2)(c) has rightly been levied by the Revenue. We, accordingly, confirm the order of the CIT (Appeals). 40. In the result, the assessee s appeal is dismissed.
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1992 (12) TMI 76 - ITAT HYDERABAD-A
Actual Cost, Capital Asset ... ... ... ... ..... Bombay High Court s decision in Vidarbha Co-op. Marketing Society Ltd. s case which is stressed before us is that a provision conferring exemption from tax must be construed in a strict manner and the person who claims the exemption must fall within the 4 corners of the exemption provision. We have no quarrel with this proposition at all and according to us in this case, the assessee fulfilled all the conditions laid down for exemption under section 80P(2)(a)(vi) and, therefore, it is entitled to full exemption under that provision and as such we are of the opinion that the learned Commissioner (Appeals) is correct in his ultimate finding though his order does not spell out much discussion on the subject. We fully agree with the conclusion reached by him in his impugned orders. 10. In the result, we find that there are no valid grounds to interfere with the orders of the learned Commissioner (Appeals). The departmental appeals are found to be without merit and hence dismissed
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1992 (12) TMI 75 - ITAT DELHI-E
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... ... ..... evious year. The claim for exemption under s. 10(6)(viia) has been rejected on the ground that there was a long time gap between the period during which the income accrued and the period covered by the assessment. The ground on the basis of which the assessee s claim for exemption has been disallowed is untenable. The remuneration in respect of which tax had been paid by the employer became due to the assessee within a period of 24 months of his arrival inIndia. The mere fact that the amount becoming due was remitted to the technician much later would not disentitle him to claim the benefit of exemption available under cl. (A) of s. 10(6)(viia) in respect of the tax paid on his behalf by his employer. I am of the view that in view of the provision of cl. (A) of s. 10(6)(viia) the assessee was entitled to exemption in respect of the amount of tax paid on his behalf by his employer, namely, M/s Modi Rubber Ltd. 13. In view of what has been said above, the appeal stands allowed.
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1992 (12) TMI 74 - ITAT DELHI-E
Revocable Transfer, Right To Receive ... ... ... ... ..... lting Trust in favour of the Settlor or his legal representatives and the assets affected thereby shall belong absolutely to the Trustees of the Trust to be held on the same terms of the Trust Deed if the Trust is no longer in existence then the entire Trust Fund and future income shall be held absolutely for such public charitable purpose as the trustees may determine. Accordingly, the intention of the Settlor is confirming that he does not want any interest in the trust and is further affirming that there is no retransfer or reassumption to the original settlor. 6. In this view of the matter, we are of the opinion that the Revenue has no case viewed from any angle on the facts and circumstances of the instant case. We, therefore, set aside the order impugned as it is standing on the weak foundation. Accordingly, we direct deletion of the inclusion of Rs. 4,277 in the assessment by accepting the ground of appeal. 7. In the result, the appeal of the assessee is allowed hereby
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1992 (12) TMI 73 - ITAT DELHI-E
Factory Building, Valuation Date ... ... ... ... ..... cement of the unit. The criterion for determining the period of exemption is based on the commencement of the operations for the establishment of the unit. These operations for establishment of the unit cannot be simultaneous with the setting up of the unit, as urged on behalf of the Commissioner, but must precede the actual setting up of the unit. In fact, it is the operations for establishment of a unit which ultimately culminate in the setting up of the unit. On this interpretation, it is clear that in this case, the claim put forward by the respondent for exemption has been rightly held to be allowable by the High Court. 10. No doubt, the aforesaid decision of the Hon ble Supreme Court pertains to the provisions of section 5(1)(xxi) of the Wealth-tax Act, 1957, but necessary support can be drawn from the said decision to convince us that the order passed by the CWT (Appeals) is correct in law. The same is, accordingly, confirmed. 11. In the result, the appeal is dismissed
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1992 (12) TMI 72 - ITAT COCHIN
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... ... ..... CIT. The creditor is also an income-tax and wealth-tax assessee. In his wealth-tax return he has stated that he has advanced a loan of Rs. 1,30,000 on 19th Aug., 1981 and a further sum of Rs. 95,000 on that day itself by drafts. In the wealth-tax return for 1981-82 he has also shown that he had a cash of Rs. 2,25,000 on hand. The account of the assessee with the bank also would show that they have been repaying the amount by cheque or demand draft. In view of the above, we hold that the assessee has discharged the onus on his part and that the CIT(A) was not justified in sustaining the addition of Rs. 2,25,000 on the ground that the assessee has not proved the genuineness of the credit transaction and the creditworthiness of the creditor. Hence, we delete the addition of Rs. 2,25,000. In view of this finding, we hold that the assessee is entitled to get deduction of the sum of Rs. 24,750 as interest on the loan amount of Rs. 2,25,000. 6. In the result, the appeal is allowed.
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