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Case Laws
Showing 121 to 140 of 229 Records
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1985 (3) TMI 110 - ITAT HYDERABAD-A
Appellate Authority, Assessment Year, House Property, Income From Property ... ... ... ... ..... flats though the ownership in many cases may rest with the co-operative society. Later by another Circular No. 8, dated 24-3-1969 (see Taxmann s Direct Taxes Circulars, Vol. 1, 1985 edn., p. 1339) the Board tried to read the agreement itself as one resting the ownership in such members for the same result. A similar circular was issued for the wealth-tax purposes in Letter No. F. No. 8/2/69-IT (AI), dated 25-3-1969 of Sundaram s Law of Income-tax, Eleventh edn., Vol. 1, p. 894. We, therefore, set aside the order of the Commissioner under section 263 and restore the order of the ITO. 11. Since we have restored the order of the ITO in the preceding paragraph in IT Appeal No. 698 (Hyd.) 1983, the appeal in respect of quantum can no longer be treated as infructuous. Hence, the order of the Commissioner (Appeals) is set aside and the question in appeal restored to the Commissioner (Appeals) for fresh disposal in accordance with law. 12. In the result, both the appeals are allowed.
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1985 (3) TMI 109 - ITAT HYDERABAD-A
Profits In Lieu ... ... ... ... ..... the subject. Though, it prima facie appears to be hard, the scheme of the Act is now to exempt only receipts like compensation under the Industrial Disputes Act, 1947 and the Gratuity Act, 1972 up to specified limits. In other words, in view of the practice of avoidance of liability and postponement of liability on employee s remuneration by way of terminal compensation, the scheme of the Act is now to bring them to tax and exempt only what is considered a reasonable part of the same. The assessee has availed the benefit of exemption on gratuity. If there had been any unavailed part of such exemption, we could have certainly considered this payment for such set off of such unavailed relief. The assessee having fully availed the other reliefs regarding terminal benefits, we are afraid that the ITO is right and that his order should stand. It, is accordingly restored. The order of the first appellate authority is set aside. 4. In the result, the departmental appeal is allowed.
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1985 (3) TMI 108 - ITAT DELHI-E
Accounting Year, Assessment Year, Deemed Income, Municipal Corporation, Tax Liability, Terminal Tax, Trading Liability, Trading Receipt
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1985 (3) TMI 107 - ITAT DELHI-B
Additional Income-Tax On Undistributed Profits ... ... ... ... ..... , Rs. 8,496 could at the best be reduced under the aforementioned Rules and, thus, the distributable surplus would remain at Rs. 76,466. In accordance with the statutory requirement of section 104/109 of the Act, the assessee was under an obligation to distribute at least 90 per cent of the distributable surplus as dividend. In other words, it had to distribute at least Rs. 68,820 as dividends in order that it could claim compliance of the provisions of section 104/109. Since it had declared dividends of only Rs. 65,700 and since there were no mitigating circumstances as mentioned in the decision of the Hon ble Supreme Court in the case of Gangadhar Banerjee and Co. (P.) Ltd. or as mentioned in section 104(2) we would consider that the authorities below were justified in imposing the liability of additional tax upon the assessee under the provisions of section 104. 6. The impugned order of the Commissioner (Appeals) is upheld and the appeal filed by the assessee is dismissed.
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1985 (3) TMI 106 - ITAT DELHI-B
Bench Of Tribunal, Net Wealth, Question Of Fact, Question Of Law, The High Court, Tribunal's Order
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1985 (3) TMI 105 - ITAT DELHI-B
Adventure In The Nature Of Trade, Capital Asset, Capital Gains, Money Lending Business ... ... ... ... ..... t would not convert a capital transaction into a business transaction. Receipts of realisation of capital investment do not change in colour just because the property or investment is parcelled into parts before it is sold. From the facts on record and from the discussion in the assessment order, we are not able to get any dominant impression that the assessee was dealing in land when it sold away the Sikandrabad property by parcelling it in plots of lands. In these circumstances, we would hold that the surplus of Rs. 3,71,832 was assessable as profit under the head Capital gains only. Since we have taken the above view on facts, we need not decide the alternative argument of the learned counsel of the assessee based on the decision of the Hon ble Supreme Court in Groz-Beckert Saboo Ltd. s case. The contentions raised by the assessee in ground Nos. 1 to 6 of the petition of appeal, therefore, succeed. 8. to 12. These paras are not reproduced here as they involve minor issues.
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1985 (3) TMI 104 - ITAT DELHI-B
Late Filing ... ... ... ... ..... he orders imposing penalties. There was no basic legal infirmity attached to the penalty orders. The jurisdiction to frame the assessment and to initiate the penalty proceedings validly vested in the WTO and, therefore, on the grounds of alleged irregularity which supervened, the AAC could not have validly cancelled the penalties particularly when the notices initially issued by the WTO under section 18(2) had been validly served upon the assessee. Since he acted in contravention of the law laid down by the Hon ble Supreme Court in the abovementioned decision in Guduthur Bros. case we restore the appeals to his file with a direction that he shall re-decide the appeals on merits after hearing the assessee and the WTO and after considering as to whether there were or there were not any reasonable grounds for the delayed submission of returns on the part of the assessee in the three assessment years. 6. The appeals filed by the revenue are allowed for the purposes of statistics.
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1985 (3) TMI 103 - ITAT COCHIN
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... ... ..... in mind that s. 64 creates an artificial income with regard to the person in whose hands it is assessed and that the section must, therefore be construed strictly. 10. In view of what is stated above, the share income of the husband of the assessee for the period form 1st Jan., 1976 to 31st May, 1976 cannot be clubbed with the income of the assessee as the assessee had ceased to be a partner of the firm w.e.f. 1st Jan., 1976. But the share income of the husband of the assessee for the period from 1st June, 1975 to 30th Nov., 1975 accrued to the husband of the assessee at a time when the assessee was a partner of the firm. As already stated, there was a closing of accounts and the crediting of the share income to the accounts of the respective partner on 30th Nov., 1975. The share income of the husband of the assessee for the period form 1st June, 1975 to 30th Nov., 1975 is liable to be included in the income of the assessee. 11. In the result, the appeal is allowed in part.
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1985 (3) TMI 102 - ITAT COCHIN
Original Assessment, Substantially Interested ... ... ... ... ..... portion was allowable as a deduction. The issue as arising in the present case has not been considered by the Supreme Court. Further, in the present case, the department has no case that Shri P.G. Oommen was an employee of the assessee-company. In fact, a specific query was made by the ITO to the assessee in the letter dated 21-4-1980 as to whether there was employer-employee relationship between Shri P.G. Oommen and the company. In the reply dated 14-5-1980, the assessee clearly stated that there was no such relationship. No attempt has been made by the department to establish that there has been any such relationship. The issue involved in the present case is, therefore, squarely covered by the decisions of the Karnataka and the Punjab and Haryana High Courts. It follows that no income had escaped assessment in the original assessment. The order of the Commissioner (Appeals) has, therefore, to be upheld though for different reason. 8. In the result, the appeal is dismissed
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1985 (3) TMI 101 - ITAT CHANDIGARH
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... ... ..... . Gruswami Chettiar, instead of Revenue s support the contention of the assessee because in that case, it is held that .............Evidence regarding the shares of the partners should be offered within the four corners of the instrument used as the basis of the claim for registration and should not be made to depend on a reference and scrutiny of a number of other documents either between the same partners or between the partners and other third parties. In the instant case evidence regarding share is available within four corners as it is to be as per Indian Partnership Act, as per cl. 24 of the partnership deed and as per s. 13 of the Indian partnership Act, it is to be equal. Similarly, reliance of the ld. Departmental Representative on (1964) 53 ITR 655 (PB) is misplaced. As a matter of fact, the issue is covered by the Supreme Court decision on all fours in (1967) 63 ITR 485 (SC). 4. In the result, the action of the AAC is reversed and the assessee s appeal is allowed.
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1985 (3) TMI 100 - ITAT CHANDIGARH
Partnership Deed ... ... ... ... ..... i Chettiar, instead of the revenue s support the contention of the assessee because in that case it is held that ...Evidence regarding the shares of the partners should be offered within the four corners of the instrument used as the basis of the claim for registration and should not be made to depend on a reference and scrutiny of a number of other documents either between the same partners or between the partners and other third parties.... In the instant case, evidence regarding share is available within four corners as it is to be as per the Indian Partnership Act, as per clause 24 of the partnership deed and as per section 13, it is to be equal. Similarly, reliance of the learned departmental representative on Rai Bahadur Jodha Mal Ghungar Mal s case is misplaced. As a matter of fact, the issue is covered by the Supreme Court decision on all fours in Parekh Wadilal Jivanbhai s case. 4. In the result, the action of the AAC is reversed and the assessee s appeal is allowed.
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1985 (3) TMI 99 - ITAT CALCUTTA-C
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... ... ..... ought as capital contribution to the firm. There is a strong force in the submission made on behalf of the Revenue that mere paying of municipal taxes, repairing charges etc. by the firm will not alter the legal position. 13. Before we part with matter, we would meet the contention of the assessee, when he says that the past record of the case is to be followed and, therefore, the ITO should not be allowed to be inconsistent in his approach. It has no force in view of the fact that principles of estoppel and res judicata is not applicable to taxation matters. On the totality of the facts of the case, it is applicable, We reject the contention of the learned representative in this view of the matter. 14. In view of what we have discussed above, we are of the opinion that the AAC went wrong in deleting the addition of Rs. 25,000 added in the assessment order. Accordingly, we reverse his order and restore that of the ITO. 15. In the result, the appeal by the Revenue is allowed.
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1985 (3) TMI 98 - ITAT CALCUTTA-C
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... ... ..... ce are not wanting where on one hand the creditor has written off the debt and has claimed the same as bad debt on the representation that because of business expediency no legal action was taken against the debtor and on the other, the debtor has written back the liability coming out of the clutches of s. 41 of the Act on the plea that it was his unilateral act. It could well be that there was no contract between the debtor and the creditor for the remission of mind of the two, and none of them was bothering for the liability. 8. In view of above discussion, in our judgment, the ratio of the case of CIT vs. Sugauli Sugar Works (P) Ltd. cannot be applied to the instant case in abstract without verification of the facts. Order of the CIT(A) is, therefore, cancelled. The case is referred back to the ITO for making enquiry from the creditors of the assessee as to whether liability has ceased or has been remitted. 9. In the result, the appeal is allowed for statistical purposes.
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1985 (3) TMI 97 - ITAT CALCUTTA-C
Annual Value, House Property, Municipal Corporation ... ... ... ... ..... Taxation Laws (Amendment) Act, 1984 by making a provision that actual amount of tax paid irrespective of the period to which it pertains would be an allowable deduction in the year of actual payment. Section 23 was applicable to the case of the assessee has to be interpreted in the light of this amendment. Where facility has been given for claiming deduction in the year of actual payment, the question of claiming the said deduction on accrual basis does not and should not arise. However, in the instant case, there is no accrual of the liability at all. 8. Order of the Tribunal, Calcutta Bench, relied upon by the learned counsel for the assessee has not considered the provisions of the Calcutta Municipal Act, and the amendment of first proviso to section 23 of the 1961 Act was also not then in existence. We, therefore, respectively, express our inability to follow the same. We find that the order of the AAC is proper, it is confirmed. 9. In the result, the appeal is dismissed.
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1985 (3) TMI 96 - ITAT CALCUTTA-C
Interest Paid By Company, Trading Loss ... ... ... ... ..... ars that the members of the aforesaid co-operative unit fought amongst themselves and they could not run the factory smoothly and the factory was virtually closed down. Majority of the workers who started the said co-operative unit left the service of the assessee-company. The balance of Rs. 5,798 remained due for several years. As the original members of the co-operative unit did not have any considerable assets no action could be taken by the assessee-company for realisation of the balance. On a consideration of the facts and circumstances of the case, we feel convinced that the debt in question became bad during the year of account and was rightly written off in the assessee s books of account. The claim for bad debt in respect of the amount of Rs. 5,798 deserves to be allowed. The assessment shall be modified accordingly. 16. No other point has been pressed before us in this appeal. 17. For the foregoing reasons, the appeal is allowed partly to the extent indicated above.
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1985 (3) TMI 95 - ITAT BOMBAY-D
Assessment Year ... ... ... ... ..... ourt dated 30-11-1977 granting letters of administration would not make any difference as far as the legal position regarding the title was concerned. 16. We may mention here that the stand taken by the ITO was not logical. On the one hand, he observed that it was the administrator in whose hands the entire income should be assessed. On the other hand, he did not take steps to assess the administrator. He assessed the entire income in the individual assessment of Mrs. Veera. On the facts on record, we are satisfied that half the income was liable to be assessed in the hands of Mrs. Veera, while the other half was liable to be assessed in the hands of Mrs. Asha. Consequently, the order of the ITO assessing the entire income in the hands of Mrs. Veera and making protective assessment of Mrs. Asha was erroneous and was rightly set aside by the AAC. We confirm the order passed by the learned AAC. 17. In the result, all the departmental appeals are liable and are hereby dismissed.
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1985 (3) TMI 94 - ITAT BOMBAY-D
Capital Employed, Mistake Apparent From Record, Original Order, Retrospective Amendment, Tribunal's Order
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1985 (3) TMI 93 - ITAT BOMBAY-B
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... ... ..... ) with which we agree we find from the copy of the account of Messrs KPS Films vide the assessee s letter dt. 14th Aug. 1976 which was presumably found during the course of the search that the assessee had paid sum of Rs. 4,95,000 towards the cost of the picture to Messrs KPS Films upto 31st July, 1975. The amount paid during the period from 17th June, 1975 to 31st July, 1975 amounted to Rs. 2,85,000. In the circumstances, it is only reasonable to hold that Messrs KPS films did have the capacity to pay the sum of Rs. 3,00,000 or near about to the assessee as claimed. The letter, the genuineness of which has not been disputed, indicate that these amounts were received by the assessee for short duration as these were paid back between 2nd Jan., 1976 and 5th July, 1976. Having regard to the above discussion, we hold that the deletion of the addition of Rs. 3,05,000 is also justified. 12. In the result, the order of the CIT (A) is upheld and the Departmental appeal is dismissed.
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1985 (3) TMI 92 - ITAT BOMBAY-B
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... ... ..... d and society in 1977. He was allotted and occupied the flat on 1st Jan., 1980. Joining the society and paying the amounts cannot really amount to purchase of a house even under the modified terms as above. On the contrary, allotment of the flat would certainly give the assessee certain specific obligations and rights. The manner in which the amounts are paid and the period over which they are paid may not also be of much relevance. In the peculiar circumstances of the case, therefore, I would hold that the assessee has purchased a house as required under s. 54 and looking at the manner in which the project was started, the house constructed, allotment made and the co-operative society continued, the assessee must be deemed to have satisfied the conditions of s. 54 for exemption. This is so, even though it is not possible to strictly point out any particular day or point of time at which the purchase was made. The assessee is entitled to the relief. 8. The appeal is allowed.
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1985 (3) TMI 91 - ITAT BOMBAY-A
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... ... ..... becomes a partner in his own account and amounts are advanced to the firm by him from his individual account and also by the HUF. The amount of interest paid to the HUF account cannot be disallowed. While the interest paid in his account has to be disallowed. That is not the situation here. We are not persuaded to agree with the approach made in the case reported in CIT vs. sajjan Raj Diwan Chand (1981) 21 CTR (Guj) 26 (1981) 126 ITR 654 (Guj) for the reason we have explained herein. We think that decision has necessarily to be overruled. Therefore, following the decision of Their Lordship of the Bombay High Court in the case of Pannalal Hiralal and Co. and the latest decision of the Full Bench of the Gujarat High Court in the case of L. Chotalal and Co., we find no force in the cross objections filed by the assessee. 9. in the result, the assessees appeals in ITA Nos. 3661 and 3662 are allowed, while the appeals of the Revenue and assessee s cross-objections are dismissed.
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