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Case Laws
Showing 121 to 140 of 248 Records
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1988 (7) TMI 169 - CEGAT, CALCUTTA
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... ... ..... actually shooting at the officers should go scot free. But unfortunately, we cannot help exonerating the appellant because unless there is evidence either direct or circumstantial to show at least by preponderance of probabilities that it is the appellant who was concerned in the commission of the offence, it is not possible in our system of jurisprudence to find him guilty of such a charge. On going through the records we may state that the various circumstances set out engender a grave suspicion in our minds about the involvement of the appellant with the commission of the offence in relation to the goods in question. Suspicion, however grave it may be, can scarcely take the place of proof. The appellant, in any event, would be entitled to the benefit of doubt arising in the facts and circumstances of this case. Therefore, by giving the appellant the benefit of doubt, we exonerate him of the charge and set aside the impugned order appealed against. Pronounced in open court.
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1988 (7) TMI 168 - CEGAT, NEW DELHI
Classification of goods ... ... ... ... ..... ould have been served about the percentage of various properties so much emphasised by the learned advocate for the respondent company. Percentages are required to be given in the course of a test result where they are necessary for the purpose of classification of a product under the Central Excise Tariff. Tests undertaken at the departmental laboratories are with reference to the strict needs for classification under the Tariff. These tests are not required to be taken for giving a complete structure of a product and its various properties without reference to the Tariff 5. In view of the foregoing discussion, we find merit in the appeal of the Collector of Central Excise, Vadodara that there is no justification for setting aside the order-in-original on the ground that the reports of the departmental laboratories are vague or non-explicit and that the same required to be tested by an lsquo independent body. Accordingly, we set aside the impugned order and allow the appeal.
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1988 (7) TMI 140 - CEGAT, NEW DELHI
Pre-deposit of duty and penalty ... ... ... ... ..... . For penalties, the Bench feels that if the applicants are desired to make the deposit of full penalty amounts, it will amount to undue hardship. Accordingly, we dispense with the predeposit of the penalty amount of M/s. Associated Traders, M/s. Sarvodya Resin Works and M/s. Prabhat General Turpene on the condition of their depositing Rs. 20,000/-, Rs. 12,000/- and Rs. 20,000/- respectively. The applicants are directed to deposit these amounts within eight weeks from the receipt of this order. In case the applicants fail to comply with the terms of this order, 6. During the course of arguments, Shri A.E.S. Bedi, the learned Advocate, had made an alternative prayer for early hearing. Since the goods are under detention, we feel that there is justification for early hearing of the appeals. After the applicants comply with the terms of this order, the applicants may approach the Tribunal for the grant of early hearing. 7. In the result, the stay applications are partly allowed.
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1988 (7) TMI 139 - CEGAT. NEW DELHI
Set-off - Raw materials ... ... ... ... ..... he manufacturing stream and which while contribute to the manufacturing process lose their identity in the said process. In the instant case, we find while brine is the raw-material for the manufacture of caustic soda, the same cannot be taken into the manufacturing stream till it is treated with barium carbonate and is purified. The manufacturing process of the caustic soda can be said to start with the preparation of brine solution followed by its purification and thereafter followed by various other stages of manufacture like electrolysis, etc. The use of barium carbonate, therefore, has to be taken to be for the manufacture of caustic soda as a raw-material as it loses its identity in the process of purification of the brine. We, therefore, hold that barium carbonate is a raw-material used for the manufacture of the caustic soda. The case cited by the respondents also supports this view. 9. In view of above, we allow the appeal of the appellants with consequential relief.
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1988 (7) TMI 134 - ITAT PUNE
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... ... ..... t with the view of the learned Judicial Member in the sense that the material on record is sufficient to warrant the acceptance of the claim of borrowings from the creditors referred to above. 15. In the view that I have taken. I thought there is no need to refer to any case law nor any was cited before me nor as a Third Member I am called upon to go into a question of law except to consider whether the evidence on record warrants the acceptance of the claim of the borrowings. 16. To be fair to the Department, I must say that they made attempts to probe and pursue the creditors but could not secure a positive denial. From the evidence gathered, it is desired of us that we should infer a denial. In view of the positive affirmation by the creditors and the evidence on record, in my view, the Department did not prove its case, nor (sic) be inferred.) 17. The matter will now go before the regular Bench for the disposal of the appeal in accordance with the opinion of the majority.
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1988 (7) TMI 131 - ITAT MADRAS-D
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... ... ..... come from the property in his income-tax return. In the circumstances, we agree with the AAC that the property was purchased by the assessee and, therefore, he was entitled to the relief. In this context we may reproduce the relevant observation of the Supreme Court in the case of CIT vs. T.N. Aravinda Reddy (1979) 12 CTR (SC) 423 (1979) 120 ITR 46 (SC) as follows We find no reason to divorce the ordinary meaning of the word purchase as buying for a price or equivalent of price by payment in kind or adjustment towards an old debt or for other monetary consideration from the legal meaning of that word in s. 54(1). If you sell your house and make a profit, pay Caesar what is due to him. But if you buy or build another, subject to the conditions of s. 54(1), you are exempt. The purpose is plain, the symmetry is simple, the language is plain. Why mutilate the meaning by lexical legalism. We, therefore, see no reason to interfere with the order of the AAC. The appeal is dismissed.
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1988 (7) TMI 129 - ITAT MADRAS-C
Capital Gains, Computation Of Capital Gains ... ... ... ... ..... and the amounts have been paid directly by the purchaser into the court where suits were pending for the recovery of the amounts. We many once more advert to the decision of the Supreme Court in the case of Miss Dhun Dadabhoy Kapadia v. CIT 1967 63 ITR 651 that in working our capital gains or loss the principles that have to be applied are those which are a part of the commercial practice or which unordinary manor business will resort to when making mutation for his business purpose. In other words, we cannot disagreed the concept of real income, that is the actual capital gains that across the assessee and as long as he had lost part of it because of burden on the property we do not see how that could be disregarded to impose a burden which is higher than what should be. Hence we accept the claim of the assessee that the decision applies to this case as will as direct the Income-tax Officer to recompute the capital gains accordingly. 15. In the result, the appeal is allowed.
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1988 (7) TMI 127 - ITAT MADRAS-A
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... ... ..... the assessee is now in appeal before us stating that while the writ petition is pending in the High Court the CIT(A) ought not to have expressed his opinion has stated in para 4 of his order. We have also heard the learned Departmental representative on this point. We are agreeable with the contention raised by the learned counsel appearing for the assessee on this point. We are also of the opinion that when a writ petition is pending challenging the validity of the s. 171(9) of the IT Act and when the matter is subjudice, the CIT(A) ought not the have expressed any opinion on this issue as stated in his order in para 4. Therefore, we set aside the finding of the CIT(A) as appearing in para 4 of his order. Consequently the WTO is directed to complete the assessment in accordance with the directions given by the CIT(A) untrammelled by the findings given by the CIT(A) in para 4 of his order. In that view of the matter the appeal filed by the assessee is allowed to this extent.
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1988 (7) TMI 124 - ITAT MADRAS-A
Business Expenditure, Shifting Of Office From One State To Another ... ... ... ... ..... incurred by a businessman would bring in some advantage as per his calculation. Sometimes it may go wrong also. But what has to be seen is whether it is for the more efficient and convenient method of management. I also find force in the argument of the learned counsel for the assessee that at times technical know-how purchased at considerable cost was being held to be on revenue account and on the same analogy the expenditure incurred in shifting the Administrative office could not be held to be on capital account. I may mention here that I find that the analogy sought to be drawn from the decision of the Madras High Court in Madras Auto Service Ltd. s case is not proper because I do not find on facts stated that by incurring this expenditure the assessee was able to save any expenditure under any other revenue head like in that case. 11. The matter will now go before the regular Bench so that the appeal can be disposed of an this point according to the view of the majority.
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1988 (7) TMI 122 - ITAT MADRAS-A
Assessment Year, Income From Other Sources, Interest Income, Representative Assessee ... ... ... ... ..... ons to the effect that neither section 41 (of the 1922 Act) which gave an option to the department to tax either the representative assessee or the beneficial owner of the income nor the parallel provisions of the 1961 Act contemplated assessment of the same income both in the hands of the trustees and the beneficiaries, instances have come to the notice of the Board of such double assessment. This also indicates that the department is also well aware that there is no question of the assessment of the trustee apart from the assessment of the beneficiary because the income which can be assessed in the hands of the trustees can only be the income that could be assessed in the hands of the beneficiary. There can be no other income which is liable to tax. In this view we find that the assessment in the present case was misconceived. We, therefore, set aside the assessment and direct the Income-tax Officer to frame fresh assessment in accordance with law. 10. The appeal is allowed
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1988 (7) TMI 120 - ITAT JAIPUR
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... ... ..... ing Foreign Exchange Regulation Act, the Asstt. Director of Enforcement Directorate vide his order dt. 26th Aug., 1985 had categorically observed that the bank accounts maintained belonged to Salas only and that the partner of the firm M/s Maliram Pooranmal had nothing to do with it. They also observed that copies, which were provided by him contained endorsement in the hand of John Ashlyn only and that there was no evidence to establish that the transactions really pertained to the partner of M/s Maliram Pooranmal. With these observations we are of the view that on facts, the assessee must succeed in view of lack of evidence to establish the suspicion that was in the mind of the Income-tax authorities that it was a transaction in which the assessee had exported goods at a much lower value, resulting in the escapement of income. Accordingly, we quash the re-assessment for both the years. The appeal for asst. yr. 1967-68 succeeds and that of asst. yr. 1968-69 succeeds in part.
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1988 (7) TMI 118 - ITAT JAIPUR
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... ... ..... worked out was proper, this claim also fails. 9. On the issue of interest paid to partner the observation of the CIT(A) in para 5 of his order reads I agree with the assessee s argument that interest only at 9 per cent can be added on the debit balance of the partner. On this basis the addition to the extent of Rs. 6,300 is sustained and the assessee thus gets a relief of Rs. 6,300. The plea raised was that the firm had non-interest bearing amounts. The learned Departmental representative was also heard. 10. On this issue, the submission of the assessee before CIT(A) was that the partnership deed required charging of interest at 9 per cent on the debit balance of the partner, which is why the interest to the extent of 9 per cent was confirmed by CIT(A). We do not find any infirmity in his order on this issue as well and we confirm the same. The cross-objection is infructuous to the extent of the departmental appeal, which is dismissed and the remaining part stands dismissed.
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1988 (7) TMI 116 - ITAT JAIPUR
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... ... ..... rival submissions and considered the material on record. There is not dispute on the facts that the proposed draft was not signed by the ITO which was referred to the IAC for approval under s. 144B. Merely because it was forwarded with the conversing letter, which is signed by the ITO, is not sufficient to accept the claim of Shri Ranka that when the forwarding letter was signed, it should be taken that the proposed draft was also signed. According to us, the proposed draft is not an order at all especially when it is not signed by the ITO. There is no question of treating such proposed draft, which is referred to the IAC for approval, unless a formal order of the ITO is passed thereafter. Therefore, when the assessee has filed an appeal against that order, it could not have been entertained by the CIT(A), because it was not signed by the ITO. In our view, the CIT(A) has committed an error in entertaining such an appeal. 4. In the result, the appeal of the Revenue is allowed.
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1988 (7) TMI 115 - ITAT JAIPUR
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... ... ..... leted. Further assessee has bona fide belief and under that belief he paid the tax. Subsequently, if the ITO added and after that assessment as became liable for penalty on the basis of that addition, the penalty in such a case is not justified when assessee bona fidely paid the due tax. In the case of Jaipur Metals and Electricals Ltd. vs. CIT (1974) 97 ITR 721 (Raj) their Lordships of the Rajasthan High Court held that there Tribunal was in error when it held that the estimate furnished on 13th Sept., 1956 ceased to the honest by subsequent events. The levy of penalty on the assessee was, therefore, not valid in law as it amounted to punishing the assessee for his incapacity to predict. 9. Considering the facts of these cases and the decision of their Lordships of the Rajasthan High Court referred above, in our view, there is no case for penalty under s. 273(a) also. Accordingly, the penalty so levied is cancelled. 10. In the result, the appeals of the assessee are allowed.
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1988 (7) TMI 114 - ITAT JAIPUR
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... ... ..... he office premises to safe guard the office premises, in our view, there should not be any disallowance for that reason. Accordingly the addition made on this basis is deleted. 9. The next issue for our consideration in this appeal is whether AAC erred in charging penal interest under s. 139(8) of the Act. We heard the rival submissions. In our view if any interest is due on or after the appeal effect, the same may be given effect in charging the interest under s. 139(8) also. 10. The last issue for our consideration in this appeal is whether AAC erred in not granting full depreciation separately to both the aforesaid partnership firms which are separate and distinct partnership firms. This is a consequential issue to the first issue when we have held that they are two separate and distinct firms. The depreciation should be allowed in the case of both the firms as per provisions of s. 32 r/w s. 38(2) of the Act. 11. In the result, the appeal of the assessee is partly allowed.
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1988 (7) TMI 113 - ITAT JAIPUR
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... ... ..... ustrial undertaking and specific deduction is allowed under the Act. That does not affect the gross total income assessed under the IT Act. Therefore, the specific deduction allowed under s. 35B of the Act or s. 80J of the Act should not be deducted while allowing deduction under s. 80HH from the gross income. Accordingly, the view taken by the CIT(A) is also confirmed. 6. The last issue for our consideration in this appeal is whether CIT(A) erred in directing the ITO to restrict the disallowance on car expenses to 1/7th instead of 1/5th and to allow full depreciation on car. In restricting the disallowance to 1/7th CIT(A) followed the order of the Tribunal in the case of M/s Saboo Engineering Works. When the facts of this case are similar to those in M/s Saboo Engineering Works, we do not find any infirmity in the view taken by the CIT(A) following the order of the Tribunal. Thus the view taken by the CIT(A) is confirmed. 7. In the result, appeal of the Revenue is dismissed.
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1988 (7) TMI 112 - ITAT HYDERABAD-B
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... ... ..... e time of his visits. This understanding with the labour contractor is borne out by the deposition of the contractor. The CIT(A), having admitted that in the face of the statement given by Sri Abdul Hamid Khan, it is very difficult to sustain the addition for the asst. yr. 1977-78, has, however, sustained the addition for the asst. yr. 1980-81 only for the reason that proper explanation was not forthcoming from the accountant and that such moneys could have been retained in the firm. In our opinion, the onus on the assessee stood discharged so far as his explanation is concerned. For these reasons, we delete the addition. 32. In the grounds of appeal for the asst. yr. 1980-81, the assessee has also objected to the disallowance of Rs. 4,576 towards personal expenditure of partners in jeep/car expenditure. Having heard the submissions, we are of the opinion that the disallowance is reasonable and, therefore, we uphold the same. 33. In the result, the appeals are partly allowed.
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1988 (7) TMI 111 - ITAT HYDERABAD-B
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... ... ..... xcluded, the rate will not be 7 per cent but a lower percentage. We find some force in this submission. The assessee is collecting sales-tax along with the sale consideration and the sales-tax payable is debited to the trading account. The gross profit rate found out by the Commissioner was thus by including the sales-tax collection also. In our opinion, this adjustment must be made in respect of the liability towards sales-tax. We will therefore, direct the ITO while giving effect to the Commissioner s order to rework the gross profit rate by excluding the sales-tax. We may at this juncture make it clear that by taking the gross profit rate, the Commissioner was only attempting a rough and ready method of fixing the market value of the closing stock. He has not assumed, as submitted, that the goods were actually sold. 10. Subject to this difference in the gross profit rate to be adopted while valuing the closing stock at market value the appeal would be treated as dismissed.
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1988 (7) TMI 110 - ITAT HYDERABAD-B
Assessable Value, Assessment Year, High Court, Income Tax, Liability For Excise Duty, Manufacturing Company, Mercantile System, Supreme Court
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1988 (7) TMI 109 - ITAT HYDERABAD-A
A Partner, Assessment Year, Minor Child, Partnership Firm, Total Income ... ... ... ... ..... part of the capital account of the trustee. It is an amount standing in the name of the trust. The trust is not by itself a partner in the firm. The trustee can be a partner but the trust is not. The amount credited to this trust is in the nature of interest given to a loan. Therefore, the interest of Rs. 7,000 credited to this account does not have any characteristics of income accruing from the benefits of partnership. It is de hors the business run by the partnership firm. Explanation 2A will not support the inclusion of this amount because that Explanation covers only income arising to the trustee as a partner in the firm. If the income does not arise to the trustee in the capacity as a partner then it would not be covered and the department cannot utilise this Explanation. 11. For these reasons, we will hold that the assessee is entitled to the exclusion of Rs. 7,000 credited to the loan account. The rest of the additions are confirmed. 12. The appeal is partly allowed.
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