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Case Laws
Showing 141 to 160 of 288 Records
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1990 (12) TMI 154 - ITAT JAIPUR
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... ... ..... e disallowance sustained on estimate basis at Rs. 2,000 by the CIT(A) is directed to be deleted. 20. One more objection for the asst. yr. 1982-83 is regarding a disallowance of Rs. 6,000 being claim for development expenses while working out capital gains. The authorities below disallowed Rs. 6,000 out of claim of Rs. 16,325.69 for development expenses by estimate on the ground that it could not be shown to the ITO how this amount was arrived at. The learned counsel pointed out that complete details regarding this transaction were available on pages 43 to 50 of the paper book. He submitted that the property had been sold in part through M/s Lake Shore Palace Hotel Pvt. Ltd. who had rendered account to the assessee the details of which were available on page 46 of the paper book and hence, there was no justification in making the disallowance of Rs. 6,000 and hence this disallowance of Rs. 6,000 is directed to be deleted. 21. In the result, both the appeals are partly allowed.
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1990 (12) TMI 153 - ITAT JAIPUR
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... ... ..... CIT(A) had only mentioned that ITO s argument was not correct and directed that this investment allowance should be allowed. We may point our that the order of the learned CIT(A) is correct although he has not given the reasons for holding the view that the argument of the ITO is not correct but we find that he has mentioned it as a part of the argument of the assessee-company that the Ratlam factory was a unit of the assessee-company, namely, Associated Soap Stone Distributing Co. Pvt. Ltd. We may mention that according to s. 32A(1) the investment allowance has to be allowed to the assessee and not to particular units of the assessee. Since the assessee-company had a positive income as held by the learned CIT(A), there was no justification for disallowing this claim of the assessee and hence, the order of the learned CIT(A) is upheld. The objection of the Department on this point is also rejected. 13. In the result, all the four appeals filed by the Department are dismissed.
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1990 (12) TMI 151 - ITAT JAIPUR
Assessment, Benami Transaction
... ... ... ... ..... the operation of this Act. To my mind even though it does not arise out of the difference of opinion between the Members, still it appears to have relevance and in my view there is no reason why in the face of the provisions of this Act the property in the name of the wife cannot be said to belong to the husband, i.e., the assessee herein till the contrary was proved, which in this case, I hold, was not proved. 9. After consideration of the above, I am of the view that the eight power-looms run in the names of Smt. Shanti Devi and Smt. Mansa Devi belonged to them and that the income therefrom was not to be included in the income of the assessee. I, therefore, do not agree with the view of the learned Judicial Member. In this view of the matter I am of the opinion that the matter need not go back to the Commissioner of Income-tax for fresh enquiry. 10. 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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1990 (12) TMI 150 - ITAT JABALPUR
Assessment Proceedings ... ... ... ... ..... the above excerpt from the order of the Commissioner of Income-tax under section 263 that the Commissioner treated the assessment framed by the ITO, A-Ward, as patently wrong. However, the said excerpt cannot be construed in the manner the learned counsel did. It is plain and simple statement of fact as to the finding of the first appellate authority which is under challenge by the department in this appeal. The said excerpt is, therefore, of no help to the assessee. However, since the ITO, A-Ward, framed the ex parte assessment and the assessee was under the belief that the second assessment could not be validly framed, it is just and proper to set aside the said assessment with a direction to the ITO, A-Ward, Katni, to reframe the assessment after giving reasonable opportunity of being heard to the assessee. The order of the AAC is set aside and the assessment is referred back to the ITO for framing it afresh. 9. In the result, the appeal is allowed for statistical purposes
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1990 (12) TMI 149 - ITAT DELHI-D
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... ... ..... ting the A.L.V. of self-occupied residential house No. D-83. Defence Colony, New Delhi in conformity with the judgment of the Supreme Court in the case of Amolak Ram Khosla (1989) 131 ITR 589 (SC). 39. In respect of self-occupied property at D-83, Defence Colony, the ITO assessed income at Rs. 6,288 as declared by the assessee himself. His order on the point was confirmed in appeal by the CIT(A). 40. The only submission made by the learned counsel for the assessee in respect of ground No. 24 was that statutory deduction on account of repairs may be allowed. No other submission was made before us in respect of ground No. 24. The plea that deduction on account of repairs may be allowed, does not arise out of the impugned order of the CIT(A). We, accordingly, reject the contention advanced before us on behalf of the assessee. The finding of the CIT(A) on the point is accordingly confirmed. 41. For the foregoing reasons, the appeal is allowed partly to the extent indicated above.
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1990 (12) TMI 148 - ITAT DELHI-D
Capital Loss ... ... ... ... ..... had been purchased at the behest of the Distt. authorities and it was found that it was necessary for the mill to maintain the goodwill of and good relations with the Distt. authorities for otherwise the business of the sugar mill would have suffered. The Tribunal in that case recorded a finding that the purchase of the bonds was connected with the business of the assessee and the Hon ble High Court applying the principles laid down in Patnaik and Co. Ltd. s case held that the loss incurred on the sale of such bonds was a revenue loss. The facts of this case are also distinguishable from those of the instant case. 12. Having regard to the entire facts and circumstances of the case, we hold that there was no business expediency in purchasing the shares of the aforesaid company and, as such, the loss incurred on the sale of shares cannot be held as a business loss. It will be treated as a capital loss. 13 to 18. These paras are not reproduced here as they involve minor issues.
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1990 (12) TMI 147 - ITAT DELHI-D
Public Policy ... ... ... ... ..... ch a ground did not arise from his predecessor s order dated11-1-1985and was therefore not entertainable and that even on merits the amount in question was taxable as a trading receipt. 9. We have heard the learned representatives of both the sides on the cross objection. The assessee had itself tendered the amount in question as its income. Such an offer or admission has neither been explained to be the result of any inadvertence or mistake nor can such a plea be helpful now in view of the retrospective amendment of section 2(24)(vb) and section 28(iiib) with effect from 1-4-1967 by the Finance Act, 1990, as the amount is, treatable, as income/ profits and gains of business or profession . The cross objection was therefore, rightly and fairly conceded by the learned counsel for the assessee as devoid of any merit. It must therefore fail. 10. In the result, the appeal filed by the department as well as the cross objection preferred by the assessee, both fail and are dismissed
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1990 (12) TMI 146 - ITAT DELHI-D
Failure To Pay Advance Tax, False Estimate ... ... ... ... ..... e with reference to which the knowledge of the assessee or his belief that the estimate was being filed correctly is the point of time when the same is filed. Subsequent events may not have much to do with the knowledge of the assessee at the time of filing of the estimate unless it is possible to say that the subsequent events which resulted in profits were such that they could be reasonably foreseen by the assessee. 8. Applying the above principle of law to the facts of this case, we are satisfied that penalty in this case is unwarranted. Assessee has given the basis for estimating the income. There is no material on record to justify the inference that the estimate filed by the assessee on 13th March, 1981 was untrue to the knowledge of the assessee or that the assessee had reason to believe that the estimate filed by it was untrue. The CIT(A) was thus justified in cancelling the penalty imposed by the Assessing Officer. 9. In the result, appeal of the Revenue is dismissed
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1990 (12) TMI 145 - ITAT DELHI-C
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... ... ..... . 32,102 as under (a) Right Leather P. Ltd.Madras Rs. 2,400 (b) Sabri Enterprises,Madras Rs. 2,285 (c) Asst. Medical Officer,Bombay Rs. 2,088 (d) Century Rayon Corpn.Bombay Rs. 2,758 (e) Data Machines,Bombay Rs. 2,103 (f)UjjainCanalDivn,.Bombay Rs. 2,214 (g) Syndicate Bank ofBangalore Rs. 2,145 (h) State Bank ofMysore Rs. 2,024 (i) Koshi Project Ex-Er.Calcutta Rs. 3,085 (j) SouthEastern Rly.,Calcutta Rs. 11,004 . Rs. 32,106 The CIT(A) has upheld the disallowance. 23. The bad debts have been disallowed by the authorities below for want of evidence and details and also for lack of steps taken for the recovery of these debts. The CIT(A) has already discussed in details as to why these debts could not be allowed as a deduction for the asst. Year under appeal. We are in complete agreement with the reasons given by him in the absence of any further evidence brought on record on behalf of the assessee. 24. In the result both the appeals by the Revenue and the assessee are dismissed.
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1990 (12) TMI 144 - ITAT DELHI-C
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... ... ..... ve or retro-active operation. 34. The assessee has raised one more point in this appeal, i.e., regarding the inclusion of Rs. 63,278 for the purpose of disallowance under section 37(3B). We find that these amounts were paid to various commission agents. On the basis of certain contracts, they were entitled to a small percentage of sales as commission agency. The ITO and the CIT (Appeals) had treated these as sales promotion expenses. In our opinion, it would appear to be more for remuneration for having effected the sales. The commission is paid only after the sales are effected and the sales proceeds recovered. These cannot be considered as sales promotion expenditure. This has already been decided by the Tribunal in a number of cases. Please see the decision in the case of Mopeds India Ltd. v. IAC 1984 7 ITD 324 (Hyd.) and ITO v. Meera and Co. 1986 15 ITD 227 (Chd.). So, on this point, the assessee s grounds would be allowed. 35. In the result, the appeal is partly allowed.
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1990 (12) TMI 143 - ITAT DELHI-C
Bona Fide, Long-term Capital Gains ... ... ... ... ..... d all the facts relating to the same and material to the computation of his total income have been disclosed by him. 8. In the instant case we find that the assessee s explanation cannot be said to be bona fide because of the changing stands taken at different times. Upto the stage of penalty proceedings before the first appellate authority the stand of the assessee has been that a sum of Rs. 22,500 was lying in the form of cash with the assessee in a particular account. Now the explanation before us is that it was not cash which was lying with the assessee, but the jewellery. This stand is also not supported by any evidence. The explanation submitted by the assessee in the background of the above facts cannot be said to be bona fide. 9. We, therefore, hold that having regard to all facts and circumstances of the case and the legal position discussed above, penalty of Rs. 12,500 was rightly confirmed by the first appellate authority. 10. In the result, the appeal is dismissed
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1990 (12) TMI 142 - ITAT DELHI-C
Accounting Year, Capital Employed, New Industrial Undertaking, Previous Year, Profits And Gains
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1990 (12) TMI 141 - ITAT DELHI-B
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... ... ..... t in the absence of assessee having proved its claim for being eligible for extra depreciation allowance meant for Approved Hotels , the Assessing Officer was justified in not allowing that allowance to the assessee. We may observe that we are not in a position to comment as to why the Assessing Officer did not object to this claim of the assessee for the asst. yr. 1983-84 as we do not have complete facts before us for that year and even if he had committed a mistake in that year about which also we cannot be certain, it would not mean that the mistake should be allowed to be perpetuated by us. We may also mention that the circular letter filed by the assessee s counsel before us was in the first instance not filed before the authorities below and should normally not be considered by us and in any case it is not a Notification by the Central Government approving the assessee s hotel for the purposes of s. 33 of the IT Act. 12. Accordingly, both the appeals are partly allowed.
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1990 (12) TMI 140 - ITAT DELHI-B
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... ... ..... ur view, is untenable. Firstly simply because of denial by the aforesaid parties the assessee s contention could not be rejected. Secondly, if it is assumed that the assessee did this part of the business on its won account even then the ITO had to show how the as earned profit on these transactions when in respect of other similar transactions the assessee suffered losses. All purchases and sales are duly recorded in the books of the assessee and the Assessing Officer has not mentioned that the difference in the purchase price ad the sale price in respect of these transactions was such that it should leave a net profit of 10 per cent. In our view, therefore, the addition of Rs. 41,000 is based on conjectures and is thoroughly untenable and has to be deleted. We order accordingly. 16. In view of our findings recorded above, it is not necessary for us to deal with the assessee s contention about telescoping of the additions. 17. In the result, the assessee s appeal is allowed.
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1990 (12) TMI 139 - ITAT DELHI-B
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... ... ..... that reimbursement of medical expenditure paid to the Managing Director/employees does not amount to perquisite. However, fact remains that the cash payment made to the assessee is a part of the salary paid to him. Under s. 40 (c) any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to a director.... is to be disallowed in case it is found to be excessive or unreasonable, and, in any case, the allowance under this head cannot exceed Rs. 72,000. Thus, for the purpose of s. 40 (c) it is immaterial as to whether the cash reimbursement is a perquisite or salary. The expenditure has been incurred by the company and if otherwise provisions of s. 40 (c) are attracted, the disallowance is warranted. Considering the facts and circumstances of the case, we see no reason to interfere with the order of the CIT(A) in this regard. 10. No other point has been pressed. 11. In the result, the appeal of the assessee is partly allowed.
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1990 (12) TMI 138 - ITAT DELHI-B
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... ... ..... have given our careful consideration to the rival contentions. The mere fact that legal proceedings had not been instituted against the parties does not warrant the conclusion that the debts have not become bad. Instituting of legal suit for recovery of outstanding amounts is not a condition precedent for allowance of bad debts. It is disputed that the two amounts in respect ofAmritsarparties were in relation to the trade of the assessee. The parties situated atAmritsarand the assessee located at Dehradun it is not improbable that the assessee was unable to trace these parties. The amounts have been written off by the assessee in its books of accounts. The amount of bad debt written off by the assessee in any year is assessable if the same is recovered in the subsequent assessment years. Considering the facts and circumstances of the case, the disallowance of Rs. 10,953, in our view, is unsustainable and is hereby deleted. 14. In the result, appeal of the assessee is allowed.
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1990 (12) TMI 137 - ITAT DELHI-A
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... ... ..... ted income earned after filing of the estimate 1,59,000 Net estimated income 9,23,077 The aforesaid explanations submitted by the assessee clearly established that the estimate submitted by the appellant company showing an estimated income of Rs. 10 lakhs cannot be said to be dishonest or mala fide. The Hon ble Calcutta High Court in the case of CIT vs. Birla Cotton Spinning and Weaving Mills Ltd. has held that the burden of proving that an estimate of advance tax submitted by the assessee was false or inaccurate to his knowledge, is on the Revenue. Such estimate cannot be made with mathematical precision and mere difference between the estimated income submitted by the assessee and the income returned or finally assessed income would not justify imposition of penalty under s. 273 of the IT Act. Considering the totality of the circumstances we are of the view that the penalty imposed upon the appellant company deserves to be cancelled. 6. In the result, the appeal is allowed.
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1990 (12) TMI 136 - ITAT DELHI-A
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... ... ..... which is a meagre sum. As against this, the ld. Deptl. Representative Smt. Kumar supported the action of the Revenue authorities. 14. We have considered the rival submissions, In view of the fact that Rs. 1,900 has shown by the assessee in his wealth-tax return and this was a cash balance as on the beginning of the accounting year1st April, 1978, therefore, the amount of Rs. 1,900 stood explained. At the most it could be said that Rs. 600 had not been explained. So addition of Rs. 2,000 is uncalled for. Out of Rs. 2,500, Rs. 1,900 is properly explained, only a sum of Rs. 600 can be said to be income from undisclosed sources. We, therefore, modify the order of the CIT(A) to this extent and direct the ITO to give relief accordingly, 15. The next grievance in the assessee s appeal relates to the charging of interest under ss. 139(8) and 217(1)(a) of the IT Act. This is a consequential relief. Therefore, no discussion is required. 16. In the result, the appeal is partly allowed.
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1990 (12) TMI 135 - ITAT DELHI-A
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... ... ..... any reasons in support of his conclusion, the order under s. 263 could not be supported. In this connection the following decisions cited on behalf of the assessee are also relevant (i) CIT vs. Ratlam Coal Ash Co. (1987) 56 CTR (MP)305 (1987) 34 Taxman 443(MP) (ii) Vingal Leasing and Finance Ltd. vs. ITO (1988) 41 Taxman 62(Del) The case of speculation could not arise in the case of an investment company. The observations regarding the writing of the order sheet in the hands of the ITO, as already stated above, are unmerited. In fact, the entire approach of the learned Commissioner appeared to be based on mere suspicion. This is clear from the 8 points that we have referred to above. Having carefully considered the facts as mentioned above, we are of the view that the assessment orders could not be said to be erroneous or prejudicial to the interests of the Revenue. The order under s. 263 is, therefore, quashed. 5. In the result the appeals filed by the assessee are allowed.
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1990 (12) TMI 134 - ITAT DELHI-A
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... ... ..... s counsel is concerned, every case stands on its own footing on the given facts and circumstances of the case. The ratio laid down in those cases cannot be mechanically applied in another case where the facts are different as this is a case before us. Therefore, the Department has every right to point out the inherent weakness in the explanation given by the assessee regarding source of income and come to the conclusion that the assessee had miserably failed to discharge the onus of proving creditworthiness of these creditor ladies and their capacity to advance loan to the assessee firm. This view is supported by the decision of the Hon ble Supreme Court in the case of Shreelekha banerjee. Therefore, we are of the view that the learned CIT(A) had rightly held the cash credits appearing in the assessee s books of account as undisclosed income of the assessee firm. This ground is hereby rejected. 11. In view of our above discussion, the appeal of the assessee is partly allowed.
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