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Showing 141 to 160 of 285 Records
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1992 (3) TMI 156 - ITAT MADRAS-C
Claiming Depreciation, General Reserve ... ... ... ... ..... is a matter of record that the surtax assessments for the assessment years 1982-83 and 1983-84 were made on 9-5-1985, that is to say, after the amendment of the said section by the Taxation Laws (Amendment) Act, 1984 with effect from 1-10-1984. This would mean that the amended provisions clearly applied with the result an order in revision under section 16 could be passed any time before the expiry of two years from the end of the financial year in which the order sought to be revised was passed. In this case, the surtax assessments in question were passed on 9-5-1985. Therefore, the order in revision could be passed on or before 31-3-1988. The impugned order in revision was passed on 7-3-1988. Therefore, it is not hit by the bar of limitation. We, therefore, reject the assessee s plea based on limitation. 41. In the result, the assessee s appeals relating to the assessment years 1982-83 and 1984-85 are allowed in part that relating to the assessment year 1983-84 is dismissed
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1992 (3) TMI 155 - ITAT MADRAS-C
Chargeable Profits, Interest Tax, Total Income ... ... ... ... ..... Singh v. Kasturi Lal AIR 1977 SC 265, the later enactment shall prevail over the earlier one. The Interest-tax Act is clearly the later enactment and consequently it shall prevail over the Income-tax Act. 17. The foregoing analysis will indicate that the total income of an assessee computed under the Income-tax Act will not cease to be the total income computed under the said Act, merely because a deduction which is not available under the Income-tax Act has been given to the assessee by virtue of the overriding provisions of a special Act, namely, section 18 of the Interest-tax Act 1974. It should, therefore, follow that for the purpose of the Surtax Act, the deduction allowed in respect of the interest-tax payable cannot lawfully be left out of reckoning. 18. In view of the foregoing, therefore, we hold that the Commissioner of Income-tax was not justified in passing the impugned common order in revision. We, therefore, cancel it. 19. In the result, the appeals are allowed
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1992 (3) TMI 154 - ITAT MADRAS-C
Assessing Officer, Assessment Proceedings, Capital Gains, Rental Income ... ... ... ... ..... ng secretly put up the structure on the piece of land in question. What is more, there is nothing on record to show that the other members of the family had at any point of time sought an injunction against the construction by the assessee of the said superstructure. 50. In view of the foregoing, therefore, we hold that, the assessee having put up the structure on the land in question out of his own money openly and to the knowledge of the other members of the family, and the other members of the family not having at any point of time sought an injunction against the said construction, the superstructure belongs to the assessee. We also hold that, in the facts and circumstances of the case, the lower authorities were justified in bringing to tax in the hands of the assessee in his individual capacity not only the rental income but also the capital gains in question. We, therefore, decline to interfere in the matter. 51. In the result, both the assessee s appeals are dismissed
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1992 (3) TMI 153 - ITAT MADRAS-C
Power Of Enhancement ... ... ... ... ..... naturally falls outside the scope of an enhancement of the assessment. 6. The revenue pointed out that the decision of the Kerala High Court in the case of Popular Automobiles also related to an enhancement in a case of an assessment made under section 144B. But we find that the issue decided in that case was whether an appeal by the revenue was maintainable where the Commissioner (Appeals) has omitted to consider an enhancement petition. The question whether enhancement is possible in a case of an assessment under section 144B because of sub-section (5) was not considered in that decision. We are, therefore, of the considered opinion that the CIT (Appeals) was not right in entertaining the enhancement petition. Consequently, his order setting aside the assessment with a direction to reconsider the issue was untenable. It is accordingly set aside. It follows that the appeal has to be restored to his file, for disposal in respect of the grounds of appeal raised by the assessee
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1992 (3) TMI 148 - ITAT MADRAS-B
Chargeable To Tax, Sale Proceeds ... ... ... ... ..... not limited in duration, which, by the same token, is a gift of the corpus. It should, therefore, follow that the true position of the assessee before us is that of a trustee. 19. The following conclusions emerge from the foregoing analysis (i) Under the relevant terms of the will, it is not the assessee before us but her four daughters who are the true legatees in respect of the Quilon property. (ii) The position of the assessee before us is merely that of a trustee. (iii) Consequently, the concept of application of income is inapposite and hence inapplicable to the case before us. (iv) The provision in the will to the effect The balance, if any, can be taken by my daughter confers but an illusory benefit on the assessee, when regard is particularly had to the fact that under the terms of the will, the four girls will have to be educated and married off. 20. In view of the foregoing, therefore, we decline to interfere in the matter. 21. In the result, the appeal is dismissed
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1992 (3) TMI 145 - ITAT MADRAS-A
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... ... ..... of the Revenue. 8. The facts covered by the present appeals are almost similar to the facts of the appeals in ITA Nos. 557 and 558/Coch/85. In these matters also the assessee was served with a notice by the sales-tax Department in respect of the asst. yrs. 1977-78 to 1988-89. The assessments are not yet finalised. It is for the sales-tax assessment authority to decide whether the assessee is liable or not for payment of sales-tax or purchase tax as the case may be for the assessment years in respect of the prawns and sea foods purchased by it for export. Under those circumstances, the assessee entertain a reasonable apprehension regarding its liability to pay the purchase tax. Respectfully following the earlier order of the Tribunal (Cochin Bench) rendered in the case of The Karthika Marine Industries Pvt. Ltd., we are inclined to hold that the purchase tax provision made by the assessee in its account is liable for deduction. 9. In the result, the three appeals are allowed.
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1992 (3) TMI 142 - ITAT JAIPUR
Central Excise, Fresh Information ... ... ... ... ..... le to explain the nature and the source of acquisition of money lent. It was in these circumstances that the action under section 147(a) for the assessment year 1974-75 was held to be valid. In the case before us, as we have already pointed out all the facts were before the ITO and the ITO had already applied his mind on those facts and hence it could not be said that the situation was similar to case of A. Pusa Lal. 10. We, therefore, uphold the decision of the CIT(A) and dismiss the appeal filed by the revenue. 11. The learned counsel for the assessee conceded that the cross objection had been filed because assessee did not know whether the proceedings had been taken under section 147(a) or 147(b). Since now it has been disclosed by the revenue that the proceedings were under section 147(a), the cross objection becomes infructuous. The same is, therefore, dismissed. 12. Accordingly, the appeal filed by the revenue and cross objection filed by the assessee are both dismissed
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1992 (3) TMI 141 - ITAT JAIPUR
A Firm, Income Of HUF, Individual Income, Individual Property Into HUF Property, Inherited Property, Share Income
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1992 (3) TMI 140 - ITAT JAIPUR
Total Income ... ... ... ... ..... . In the case of Jaora Oil Mill also the Hon ble High Court has observed that the contention that a loss can be used to set off the income in a particular year and can be carried forward under certain circumstances to the following assessment years will not by any logic convert it into an income. In the case of Prithipal Singh and Co. also it was held that income in section 271(1)(c) means positive income and where assessed amount was loss, penalty under section 271(1)(c) could not be imposed in spite of Explanations 3 and 4 annexed to section 271(1)(c). 5. In the circumstances, we hold that primarily on facts of the case it cannot be said that the assessee had concealed the particulars of his income. Moreover, respectfully following the judicial opinion also on the subject we hold that the penalty imposed by the Assessing Officer and upheld by the ld. CIT (Appeals) cannot be sustained and is, therefore, directed to be cancelled. 6. The appeal filed by the assessee is allowed
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1992 (3) TMI 139 - ITAT JAIPUR
Medical Expenses, Words And Phrases ... ... ... ... ..... company had earlier asked the late assessee to pay the amounts was obviously in view of the fact that the assessing authority as well as the first appellate authority had turned down the company s claim that the amount of Rs. 1,51,190 was a business expenditure in its hands. That point loses its importance since ultimately the view which the Tribunal took in the company s case was that the said amount was an allowable business expenditure which was incidental to business. Even if a view were to be taken that the consideration of the amount in the hands of the company was no bar, to the consideration of the taxability of the reimbursement of the amount in the hands of the late assessee, we are of the view that the amount was not treatable as a perquisite in his hands. Therefore the order of the learned Commissioner of Income-tax under section 263 on merits, cannot be upheld and has to be quashed. We hold accordingly. 6. In the result the appeal filed by the assessee is allowed
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1992 (3) TMI 138 - ITAT INDORE
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... ... ..... rned CIT(A). 4. We have heard the rival submissions and considered the matter minutely and have also gone through the case record placed before us. That the assessee had advanced money to sister concerns resulting in substantial credit balances with them is not in dispute. However, the fact that the assessee had control over the concerns is not established. It is also not rebutted by the Revenue that the assessee closed its business for want of supplies from these concerns against the amounts advanced and the amounts lying to the credit balance of the assessee were realised much later. It is not the case of the Revenue that the assessee in fact had access to any other funds for meeting the self-assessment tax payment. There being shortage of funds with the assessee it is held that the same constituted a reasonable cause thus preventing the assessee from making the payment for self-assessment tax. Penalty levied is, therefore, cancelled. 5. In the result the appeal is allowed.
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1992 (3) TMI 137 - ITAT HYDERABAD-B
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... ... ..... cannot be satisfactorily explained by the assessee, it is open to the Revenue to hold that it is the income of the assessee and no further burden lies on the Revenue to show that income is from any particular source. This ratio is exactly similar to the ratio laid down in A. Govindarajulu Mudaliar vs. CIT which we have already discussed in the prior paras and, hence, it need not be separately taken up. 12. Having regard to the facts as well as the legal position, we hold that there is believable evidence on record to establish the identity of the cash creditor, her capacity to lend the amount of Rs. 32,000 and also the transactions entered in the account books of the company. Therefore, we hold that the finding of the lower authorities that Rs. 32,000 should be treated as undisclosed income of the assessee under s. 68 of IT Act in our opinion cannot be held to be sound either in law or on facts. We, therefore, reverse their finding and allow the appeal. The assessee succeeds.
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1992 (3) TMI 136 - ITAT HYDERABAD-B
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... ... ..... er, he has to make the investigation, if required, by reopening the assessment under s. 147 if he is of the view that income chargeable to tax had escaped assessment. If he has material to legally invoke the provisions of s. 147, then there is no bar for him to investigate the matter further. But, when a decision has been rendered by the Tribunal on identical facts, the first appellate authority or the AO is bound to follow it and cannot fill up the gaps or overcome the decision of the Tribunal by further investigation. The remedy for the Department perhaps lies elsewhere by a reference application against the order of the Tribunal. 13. On the facts of the case, therefore, we are of the view that the decision of the Tribunal is binding on the Revenue authorities which they should scrupulously follow. We, therefore, vacate the orders of the CIT(A). Consequently, the additions made by the AO do not survive and, as such, stand deleted. 14. In the result, the appeals are allowed.
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1992 (3) TMI 135 - ITAT HYDERABAD-B
Applied To, Late Filing, Legal Representative, Penalty Proceedings ... ... ... ... ..... n by the LR cannot be visited with penalty under section 18(1)(a) since it does not appear to be correct under law. Since the D.C. (Appeals) proceeded on a wrong premise we set aside his orders. However, we hold that the default period commences only from 26-6-1987, but not from the respective due dates viz., 31-7-1979, 31-7-1980, 31-7-1981 and 31-7-1982 respectively. Shri Atchuta Ramayya contended that Smt. Jayalakshmi the present LR was only a housewife but does not know anything and after her husband s death various particulars of his properties are to be secured by her and for this purpose, the time of 35 days given cannot be sufficient and further extension of six months is justifiable under the circumstances. We accept this contention and we hold that the default period should commence from 1-1-1988 and the period of default should be taken at 13 completed months for assessment years 1979-1980 to 1982-1983. 5. In the result, the appeals of the revenue are partly allowed
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1992 (3) TMI 134 - ITAT HYDERABAD-B
Natural Justice, Rectification Of Mistakes, Show-cause Notice, Tribunal's Order ... ... ... ... ..... on the occasion of her daughter s marriage, such a transfer cannot be said to be without consideration. In other words the discharge of the legal obligation cast on the mother under section 20 of the Hindu Adoptions and Maintenance Act, namely that she should perform the daughter s marriage by incurring reasonable expenses therefor would constitute an adequate consideration for the transfer of 3.52 acres of land made by her to her daughter on the occasion of the latter s marriage. Thus the essential attribute, namely the absence of consideration for the transfer of 3.52 acres of land by the assessee to her daughter is absent in this case and consequently the question of treating the transfer of 3.52 acres of land by the assessee to her daughter in connection with her marriage, cannot by any stretch of imagination be regarded as a gift. The same view was taken by the Deputy Commissioner (Appeals) and we confirm the same. 11. In the result the appeal of the Revenue is dismissed
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1992 (3) TMI 133 - ITAT HYDERABAD-B
Contemporanea Expositio ... ... ... ... ..... that these decisions, in our view do not apply to the facts before us. In view of the above, we are in respectful disagreement with the decision of our learned Brother. 43. Coming to the additional ground, we are of the view that the issue has become academic. We are informed that the Assessing Officer has not only selected this case for scrutiny but even the assessment has been completed by computing the book profit on similar lines. Since the Assessing Officer has computed the book profit in the similar manner, no purpose would be served to admit the additional ground. Moreover, this ground does not arise out of the order of the first appellate authority. The appellant had not even taken up this ground before the Assessing Officer. However, we are rejecting the additional ground only because it is academic in nature now. We, therefore, decline to admit the additional ground. 44. We accordingly uphold the order of the CIT (Appeals). 45. In the result, the appeal is dismissed
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1992 (3) TMI 132 - ITAT HYDERABAD-B
Assessing Officer, Revenue Expenditure ... ... ... ... ..... re Trust so as to fall back on or be backed by the provisions of the ID Act but only with the Executives Welfare nor is it constituted pursuant to any agreement that has been entered into by the assessee-company with its executives. In this connection this resembles the situation that arose in the case of Sree Saraswathi Mills Ltd. as relied upon by the Revenue in the case of India Pistons Repco Ltd. at 432 because in Sree Saraswathi Mills Ltd. s case as in the case of Executive Welfare Trust herein there was no settlement but only the voluntary creation of the fund by the employers. In the circumstances we are satisfied to reject the stand of the assessee in the case of Executives Welfare Trust in favour of the Revenue unlike in the case of Employees Welfare Trust where we have supported the stand of the assessee in its favour. Thus the second ground of appeal is accepted by us in part only. 5.10, 5. 11 and 6. These paras are not reproduced here as they involve minor issues.
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1992 (3) TMI 131 - ITAT HYDERABAD-B
Benami Transaction, Works Contract ... ... ... ... ..... f he is of the view that income chargeable to tax had escaped assessment. If he has material to legally invoke the provisions of section 147, then there is no bar for him to investigate the matter further, But, when a decision has been rendered by the Appellate Tribunal on identical facts, the first appellate authority or the Assessing Officer is bound to follow it and cannot fill up the gaps or overcome the decision of the Appellate Tribunal by further investigation. The remedy for the Department perhaps lies elsewhere by a reference application against the order of the Appellate Tribunal. 13. On the facts of the case, therefore, we are of the view that the decision of the Income-tax Appellate Tribunal is binding on the revenue authorities which they should scrupulously follow. We, therefore, vacate the orders of the CIT (Appeals). Consequently, the additions made by the Assessing Officer do not survive and, as such, stand deleted. 14. In the result, the appeals are allowed.
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1992 (3) TMI 130 - ITAT HYDERABAD-A
Account Books, Agricultural Land ... ... ... ... ..... satisfactorily explained by the assessee, it is open to the revenue to hold that it is the income of the assessee and no further burden lies on the revenue to show that income is from any particular source. This ratio is exactly similar to the ratio laid down in A. Govindarajulu Mudaliar s case which we have already discussed in the prior paras and hence it need not be separately taken up. 12. Having regard to the facts as well as the legal position, we hold that there is believable evidence on record to establish the identity of the cash creditor, her capacity to lend the amount of Rs. 32,000 and also the transactions entered in the account books of the company. Therefore, we hold that the finding of the lower authorities that Rs. 32,000 should be treated as undisclosed income of the assessee under section 68 of Income-tax Act in our opinion cannot be held to be sound either on law or on facts. We, therefore, reverse their finding and allow the appeal. The assessee succeeds
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1992 (3) TMI 129 - ITAT HYDERABAD-A
Assessment Proceedings, Income Returned, Penalty Proceedings ... ... ... ... ..... celament and hence the levy of penalty was justified. The above would show that penalty proceedings can be initiated and penalty can be sustained even with regard to agreed additions made in the assessment proceedings. 14. In view of the Madras High Court decisions quoted above, the argument of the learned counsel that penalty cannot be sustained on agreed addition cannot be taken as a correct legal concept. 15. Having regard to all the above, we have to hold that there is clear concealment on the part of the assessee in not disclosing an amount of Rs. 21,701.23 as part of its income for assessment year 1979-80 or to that extent the assessee furnished inaccurate particulars of its income for assessment year 1979-80. The assessee also admitted that the said amount represented its income for assessment year 1979-80.The penalty imposed by the ITO is clearly sustainable. We find no ground to interfere with the orders of the lower authorities. 16. The appeal falls and is dismissed
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