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Showing 141 to 160 of 241 Records
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1984 (11) TMI 101 - ITAT BOMBAY-C
Bona Fide, Closing Stock ... ... ... ... ..... . 34,64,179 and the closing stock will have to be enhanced by Rs. 34,02,272, so that on this account, the assessee s income for the year 1982-83 will have to be reduced by Rs. 61,907. We have taken note of the fact that a statement was made at the bar, which was not controverted that in its subsequent accounting years the assessee has regularly followed the same system that it had followed originally up to the year ended 31-12-1975 and to which it had reverted in its account for the year ended 31-12-1979. To put it specifically, if our decision for deletion of the two additions now under consideration be held incorrect on this issue alone the assessee s income for the year 1981-82 will have to be reduced by Rs. 8,46,728 and for the year 1982-83 by an amount of Rs. 61,907. 38. In the circumstances, considering the facts and the law, we do not find any justification to sustain the disputed addition for any of the two years. 39. In the result, all the appeals are partly allowed.
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1984 (11) TMI 100 - ITAT BOMBAY-C
Business Expenditure, Entertainment Expenditure, Investment Allowance, Plant And Machinery, Sales Promotion
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1984 (11) TMI 99 - ITAT BOMBAY-C
Legal Representative, Levy Of Penalty ... ... ... ... ..... the other submissions made on behalf of the assessee. 9. Before parting with this appeal, we may mention that during the pendency of this appeal, the department had raised a preliminary objection to the effect that entertainment of appeal by the Commissioner of Income-tax (Appeals) was bad in law, inasmuch as the memorandum of appeal had been signed, verified and presented by Smt. Dhangauri Gopalji, executrix of the will of the deceased, and not by the legal heir of the deceased. Similar objection had been raised on behalf of the department in WT Appeal Nos. 2380 and 2381 (Bom.) of 1982 assessment year 1975-76 , and was rejected by the Tribunal on the ground that the executrix of the will of the deceased would be the legal representative of the deceased. It was she, who contested the penalty proceedings. In the circumstances, she had the right to file the appeal and the objection raised by the department is unsustainable. 10. In the result, the appeal fails and is dismissed.
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1984 (11) TMI 98 - ITAT BOMBAY-B
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... ... ..... ch weighted deduction under s. 35B (1) (b) (ix) of the Act will be admissible refers to the maintenance of a laboratory or other facility for quality control or inspection of goods. This will therefore, only apply where the assessee maintains a laboratory or other facility and not to payment made to others for inspection, or quality control of goods. The assessee is, therefore, not entitled even on a plain reading cl. (c), of r. 6AA to weighted deduction on export inspection fees. It is, therefore, not necessary for us to deal with there other submissions made before us whether this rule will apply only to expenses incurred on or after 1st August, 1981 or to all assessments or appeal proceedings pending on 1st August, 1981, i, e., the date of notifications of the rules. We have, therefore, no hesitation in coming to he conclusion that weighted deduction on export inspection fees of Rs. 2,220 was rightly not allowed by the revenue authorities. 9. The appeal is partly allowed.
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1984 (11) TMI 97 - ITAT BOMBAY-B
Reassessment, Non Disclosure Of Primary Facts ... ... ... ... ..... sy between the parties. We rest our decision on the Supreme Court, decisions discussed above in which it is mentioned that when all material facts are duly disclosed in the original assessment proceedings and when the ITO has recorded finding therein about genuineness of payments and allowed deduction after making due inquiry into those material facts, mere recording of contrary finding on those facts (which may have ultimately become final) in proceeding for subsequent assessment year would not form valid basis for reopening the assessment under section 147(a). The point whether such subsequent contrary finding would amount to information for reopening the assessment under section 147(b) does not arise for consideration in this case. 14. For the reasons already given, we uphold the decision of the Commissioner (Appeals) to the effect that reopening of the assessment under section 147(a) in the present case was bad in law. 15. In the result, the appeal fails and is dismissed.
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1984 (11) TMI 96 - ITAT BOMBAY-B
Industrial Undertaking, Reconstruction Of Business, Splitting Up ... ... ... ... ..... this and looking to the totality of the facts and circumstances, we have no hesitation in coming to the conclusion that the Commissioner (Appeals) rightly held that the industrial undertaking set up by the assessee for manufacture and production of pharmaceutical products will be governed by the provisions of section 37(3D) for the year of commencement of manufacture or production and the succeeding two years and, therefore, for the assessment year 1979-80 under consideration in the present appeal, the assessee-company will be governed by the provisions of section 37(3D), exempting the industrial undertaking from the operation of section 37(3A). This means that the disallowance of Rs. 17,662 under section 37(3A) made by the ITO was not justified and was rightly deleted in appeal by the Commissioner (Appeals). On this issue, therefore, the order of the Commissioner (Appeals) appears to be correct and is upheld. 6. The appeal filed by the revenue fails and is hereby dismissed.
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1984 (11) TMI 95 - ITAT BOMBAY-B
Accounting Year ... ... ... ... ..... re is excessive. 23. We must finally deal with a submission made on the basis of the computation of profits in respect of Promise Toothpaste . The department s case is that for the year ended 30-6-1981, no commission had been paid and the profit was Rs. 87 lakhs. Now, we have checked up the figures. These figures have been taken from the statement given by the assessee for deduction under section 80J of the Act. The assessee has not shown the commission payments in respect of the sales. But that does not mean that no commission was payable on the sales of the toothpaste. Commission had been paid on that turnover also but, for some reason or other, in the computation for section 80J, the assessee had not shown it in the statement. This error had been pointed out to the assessee s chartered accountant. 24. On the above facts, we are of the opinion that no disallowance need be made under section 40A(2). 25 to 31. These paras are not reproduced here as they involve minor issues.
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1984 (11) TMI 94 - ITAT BOMBAY-A
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... ... ..... e principles of those case are not applicable. 7. We have heard the rival submissions and considered the material on record. It is true that the facts are not identical as in the cases of Hoshiarpur Electric Co. and Pune City Electric Co., as the contribution there was under the statute. But the basic thing to be seen is, at the time of receipt, what was the exact nature of receipt, contribution of the subscription was made under the resolution passed by the Association to purchase the flat and the office premises. The flat and office premises are the capital assets and contribution received towards that should be taken as capital receipt. Therefore, on the date of receipt, contribution received towards the capital assets, in our view and following their Lordships of the aforesaid cases in (1946) 14 ITR 622 (Bom), this is a capital receipt and cannot be taxed as revenue receipt. We, therefore, confirm the view taken by the CIT(A). 8. In the result, the appeals are dismissed.
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1984 (11) TMI 93 - ITAT BOMBAY-A
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... ... ..... receipts the assessee has from them. Security deposits, therefore, as mere money deposits have no relation at all with the receipts of the business. They cannot, therefore, be treated as the assessee s income. Merely because part of the deposits remained unpaid to the depositor what was originally not an income receipt cannot be converted into income especially through a mere book entry on the part of the assessee. The creditors in the first place can always call for the return of the deposits. The assessee on the contrary can never regard it as its own business receipts. From either point of view this cannot constitute its income. The decision in Devies vs. Shell Co. of China Ltd. also helps the assessee. We direct that these amounts be deleted. 9. The last amount is a small one of Rs. 646 comprised of small items. looking to the nature of the amount and the extent, we do not think, it would be proper to bring this to tax. The addition is deleted. 10. The appeal is allowed.
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1984 (11) TMI 92 - ITAT BANGALORE
Export Markets Development Allowance ... ... ... ... ..... by the assessee for obtaining credit at a concessional rate. If that were so, there would have been no difference between loans obtained at ordinary rates of interest in the market and the concessional loans. Interest paid on all loans would have been entitled to weighted deduction because all the loans were obtained for the export business. We do not see any valid distinction between the two types of loans. We have already stated that no expenditure was incurred by the assessee in obtaining the credit. This is an expenditure incurred after the credit is obtained. The ratio of the decision of the Karnataka High Court in Ullal Narayan Mallya and Sons case would apply to the issue before us. Section 35B(1)(b)(viii) would apply only to such expenditure which are of the nature of an after sales service. Interest would, therefore, fall out of the pale of section 35B(1)(b)(viii) for the same reasons as freight and export duty. 6. In the result, the assessee s appeals are dismissed.
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1984 (11) TMI 91 - ITAT BANGALORE
Transfer Of Assets For Benefit ... ... ... ... ..... ical qualification especially when the experience gained was not referable to the qualification which he possessed. But, in the present case, the facts are quite different because the spouse of the assessee had gained experience in the same field and had been paid remuneration for the same work which she is doing for the assessee s company as she had been doing in the earlier public limited companies. It is quite clear on the facts of the case that the remuneration received by the assessee s spouse was entirely due to her own professional qualification and work and it had nothing to do with her being the spouse of the assessee. The very exception provided under section 64 is only to exclude such kind of genuine remuneration received for work done by the spouse. Hence, we are in entire agreement with the Commissioner (Appeals) that the remuneration of the spouse cannot be added to the total income of the assessee and we, accordingly, confirm his order. The appeal is dismissed.
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1984 (11) TMI 90 - ITAT BANGALORE
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... ... ..... e, feasible, that can be used, (of road, etc.) that can be traversed (theatre, of door, window, etc.) real, that can be used as such. The dictionary meaning is quite clear. It cannot be said that the valuation under rule 1BB is not practicable just because it gives a lower value than the rent and building method. Stroud s Judicial Dictionary also states that the word practicable cannot be construed as meaning equitable, fair or reasonable. If the property was subject to various types of encumbrances, easements, etc., that rule 1BB could not be applied, we could have said that it was not practicable to apply that rule. Looked at from any angle, it is difficult to say that rule 1BB does not apply to valuation of the property in question. We, therefore, set aside the order of the Commissioner (Appeals) and restore the assessments to the WTO, who would strictly value the property in accordance with rule 1BB while framing the assessments. 6. In the result, the appeals are allowed.
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1984 (11) TMI 89 - ITAT BANGALORE
Additional Tax, Assessment Year, Distributable Income, Income Tax, Previous Year, Undistributed Profits
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1984 (11) TMI 88 - ITAT ALLAHABAD-B
Investment Allowance ... ... ... ... ..... misplaced. In the aforesaid two cases, their Lordships were dealing with a cold storage plant, where articles are stored and preserved. A hotel is far too different from a cold storage. Here, the atmosphere is controlled for the convenience of the visitors and not for the preservation of articles or things, whereby utility of the said good is added and an act of production, in the economic sense, results. Adding to the comfort of the visitors by having a controlled temperature cannot be equated with preserving food stuff at a controlled temperature. The creation of a controlled temperature in the atmosphere cannot, in our opinion, be regarded as manufacturing or producing a thing or article. The claim of the assessee in terms of section 32A is, therefore, not sustainable in law. In this view of the matter, we reject the assessee s claim. 24. In the result, the assessee s appeal stands partly allowed. 25 to 28. These paras are not reproduced here as they involve minor issues.
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1984 (11) TMI 87 - ITAT ALLAHABAD-A
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... ... ..... es and cash. We are not concerned what evidence was given in their personal assessments as those assessments are not in appeal before us. Suffice it to say, there is not even a iota of evidence regarding any such investments by these two partners. No set off can, therefore, be given for their alleged investments in the firm of M/s Triloki and Co. 20. Another contention of the ld. counsel for the assessee was that the income earned by the partners of the assessee firm in the asst. yr. 1975-76 itself should also have been given set off against the unexplained investments of the firm. In our opinion, there is no merit in this contention. There is no evidence that the above income was available to the partners or to the firm in the form of cash between the period 1st Oct., 1974 to 9th Oct., 1974, which also had been used as advance towards pawning of the articles of gold of gold and silver. This contention also, therefore, fails. 21. In the result, all the appeals are dismissed.
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1984 (11) TMI 86 - ITAT ALLAHABAD-A
Actual Cost, Carrying On Business ... ... ... ... ..... urther income or with a view to carrying on his other business. Stock-in-trade cannot, therefore, include a commodity, which is acquired for the purpose of being let on hire. In view of this decided authority, we reject the contention of the learned departmental representative that tin sheets could be treated as stock-in-trade of the assessee. 17. Our finding, therefore, is that each GC sheet is in the nature of a plant. Since its value did not exceed the sum of Rs. 750, the assessee was entitled to the deduction of its actual cost in the year under appeal in the computation of its income. We have already stated above that the Commissioner (Appeals) had allowed such a deduction though as a depreciation equal to 100 per cent of its cost. We, therefore, confirm his finding, though for different reasons. On our this finding, the assessee on its own admission is not entitled to any investment allowance. 18. to 27. These paras are not reproduced here as they involve minor issues.
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1984 (11) TMI 85 - ITAT AHMEDABAD-C
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... ... ..... Explanation also, therefore, cannot justify the levy of penalty in the present case. The penalty levied has been correctly cancelled by the CIT(A). I, therefore, agree with the decision of the ld. Accountant Member. 22. The matter will now go back to the Bench which originally heard it for proper disposal according to law. 6th Feb., 1985 ORDER UNDER SECTION 255(4) OF THE IT ACT, 1961 Order BY THE TRIBUNAL In this case because difference of opinion between the two members, the following question was referred for the opinion of the Third Member Whether, on the facts and in the circumstances of the case, the penalty for concealment of income can be imposed in this case? 2. The Third Member has passed on 19th Nov., 1984 agreeing with the view taken by the ld. Accountant Member. 3. On the basis of the majority decision it is now held that the CIT(A) was justified in cancelling the penalty imposed by the ITO under s. 271(1)(c) of the Act. 4. In the result, the appeal is dismissed.
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1984 (11) TMI 84 - ITAT AHMEDABAD-C
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... ... ..... firm. It is in this context that their Lordships held that the accumulated profits in that case need not be equated with deposits made or loans advanced. The position is different in respect of both the firms here. Apparently, the interest is paid on amounts with the firm prior to the accumulation of profits. In that sense the position is similar to the one covered by the decision of the Gujarat High Court in Smt. Shardaben Kishorebhai Patel s case, Income Tax Application No. 15 of 1983 of judgment dt. 24th March, 1983. The decision in Misrimul Sowcar, does not advance the case of the department any further. Both on facts and in the light of the decision of the Supreme Court there is no justification for holding that the interest accruing to the minor partners in the present case is relatable to their admission to the benefits of partnership thus attracting the provisions of s. 64. 9. The matter will now go back to the original Bench which heard the case for proper disposal.
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1984 (11) TMI 83 - ITAT AHMEDABAD-C
Continuation Of Registration ... ... ... ... ..... -9-1979. In this case, the previous year relevant for the assessment year ended on 30-6-1979, therefore, the question does not arise to treat this firm as unregistered firm in view of the provisions of section 30(5). On this sole ground the order of the ITO cannot be restored being erroneous in law and facts. Furthermore, the AAC has assigned cogent and relevant reasons with which we agree, as his reasons are supported by the decision of the Hon ble Allahabad High Court in the case of Mathura Prasad Annoolal. The AAC has rightly distinguished the case relied upon by the ITO and rightly decided the issue on keeping reliance on the case of Mathura Prasad Annoolal. In view of our above discussion and reasons thereto, we hold that the AAC is justified in directing the ITO to grant continuation of registration under section 184(7) to the assessee-firm on the totality of the facts and circumstances of the case. Hence, we confirm his order. 6. In the result, the appeal is dismissed.
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1984 (11) TMI 82 - ITAT AHMEDABAD-C
Minor Child, Partnership Deed ... ... ... ... ..... with the firm or in the nature of loans advanced by them to the firm. It is in this context that their Lordships held that the accumulated profits in that case need not be equated with deposits made or loans advanced. The position is different in respect of both the firms here. Apparently, the interest is paid on amounts with the firm prior to the accumulation of profits. In that sense, the position is similar to the one covered by the decision of the Gujarat High Court in Smt. Shardaben Kishorebhai case. The decision in Misrimul Sowcar s case does not advance the case of the department any further. Both on facts and in the light of the decision of the Supreme Court, there is no justification for holding that the interest accruing to the minor partners in the present case is relatable to their admission to the benefits of partnership, thus, attracting the provisions of section 64. 9. The matter will now go back to the original Bench, which heard the case for proper disposal.
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