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Showing 161 to 180 of 288 Records
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1990 (12) TMI 133 - ITAT DELHI-A
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... ... ..... uine and reasonable. The expenditure incurred by assessee cannot be doubted simply on the ground of relationship or on the hypothesis that he cannot do work around the clock. The working capacity of a person differs from person to person. Looking into his bright career it is not impossible for a person to attend the work after his studies and the factor that he is related to a partner, is not hindrance but there is a probability of using the talent and intellect of own relative rather than giving benefit to any other person. Therefore, the relationship do not come in the way. The factors on which the learned CIT(A) and the ITO had gone to disallow this payment are not justifiable. Therefore, we set aside the order of the learned CIT(A) on this point and direct the ITO to allow this expenditure wholly and exclusively for the purpose of business as reasonable one. We therefore, allow this ground. 15. In view of our above discussion, the appeal of the assessee is partly allowed.
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1990 (12) TMI 132 - ITAT DELHI-A
Articles Or Things, Fixed Assets, Investment Allowance, Valuation Report ... ... ... ... ..... d be accepted. With these remarks, the issue is remanded to the file of the ITO. 16. It would be seen from the above observation that paucity of materials was the reason why the Tribunal set aside the matter to the assessing authority. There is no such reason for this year. All materials necessary have been considered by us. We may also mention that the fact that in a sister company s case, the ITO himself has allowed the deduction, cannot carry the assessee s case for, because each case will depend upon its facts. Finally, we may also refer to the decision of the Bangalore Bench of the ITAT in the case of Krishna Associates. That case was more or less similar to the Karnataka High Court decision in Datacons Ltd., considered above. So the facts of that case are entirely different. Under these circumstances, we are of opinion that the assessee is not entitled to Investment Allowance. 17. In the result, the assessee s appeal is treated as partly allowed for statistical purposes
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1990 (12) TMI 131 - ITAT DELHI-A
Central Excise, Excise Duty ... ... ... ... ..... assessee to take a different view with regard to these 7 drums. Therefore, the explanation given by the assessee that the identity of these 7 drums tallise with the identity of the drums given in letter dated 8-11-1977 does not help, specially in the circumstances when the assessee had taken a plea in the beginning that the drums were returned from the State Electricity Board as rejected drums. In view of this finding of the CEGAT which is applicable only with regard to 7 drums, we are of the opinion that these 7 drums were not sold as a rejected conductor as a scrap but rather a good conductor which was found at the time of seizure by the department. So far as other 25 drums dismantled by the assessee are concerned, there is no direct evidence to prove that these were good conductors. Therefore, it is clear that the addition on account of these 25 drums at the value of good conductor cannot be taken. 13 to 20. These paras are not reproducd here as they involve minor issues.
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1990 (12) TMI 130 - ITAT DELHI
Conveyance Allowance, Incentive Bonus ... ... ... ... ..... income, the loss from embezzlement can be deducted under section 28 itself. The authority for this proposition is the decision of the Supreme Court in the case of Badridas Daga v. CIT 1958 34 ITR 10. By extending that principle to salary income, it is possible to hold that a deduction is admissible under section 15 itself. 10. However, the question would still remain, whether the assessee is entitled to any deduction in this case. The total bonus received is Rs. 44,117. The additional conveyance allowance allowed to the assessee is to meet the expenses incurred in connection with the development of business. If the assessee were to incur any further expenditure over and above the travelling expenditure, then and then only the assessee would be eligible for a further deduction. That deduction has got to be justified by evidence like any other assessee. For this purpose, the ITO would allow the assessee a reasonable opportunity. 11. Subject to this, the appeal stands dismissed
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1990 (12) TMI 129 - ITAT CUTTACK
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... ... ..... ount as arbitration expenses in the case of ITO vs. Roy Choudhury and co. Berhampur in ITA No. 342 (Ctk) 87 dt. 24th Aug., 1989. 16. Coming to the appeal filed by the Revenue, the grounds relating to the assessment of arbitration award as well as award expenses and covered by our decision in the assessee s appeal and, therefore, these grounds have no force. 17. Coming to the assessment of pre-award interest, we uphold the order of the CIT(A) as it is in accordance with the judgment of the Hon ble Orissa High Court in the case of Govinda Choudhury and Sons. Respectfully following the aforesaid judgment, which is binding on us, we uphold ht order of the CIT(A) on this point. Since the assessee has offered the post-award interest and the additional ground moved by the assessee was not admitted by us the question of adjudicating the post-award interest does not arise. 18. In the result, the appeal by the assessee is partly allowed, whereas the appeal by the Revenue is dismissed.
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1990 (12) TMI 128 - ITAT CUTTACK
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... ... ..... countable person is concerned, the provisions of s. 36(3) would be applied and consequentially frozen valuation in terms of s. 7(4) of the WT Act would be applied. On that basis the valuation of the residential property is required to be adopted at Rs. 90,300 though it related to the asst. yr. 1972-73 and there would be no difference between the such valuation and the valuation as on 31st March, 1971, but, inasmuch as, the accountable person has returned the valuation of Rs. 1,20,000 supported by valuation of the registered valuer, such valuation is retained because the accountable person cannot be said to be aggrieved by such valuation. Consequently the order of the ACED is modified and the Asstt. Controller is directed to adopt the value of Rs. 1,20,000 for the residential property. Inasmuch as, the provisions of s. 7(4) of the WT Act is applied it is not necessary to go into the general method of valuation of r. 1BB of the WT Rules. 7. In the result the appeal is allowed.
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1990 (12) TMI 127 - ITAT CUTTACK
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... ... ..... other 17. In this context, it is not correct to contend that the facts of the assessee s case are similar to the facts in the Calcutta case of James Finaly and Co. which has been approved by the Supreme Court and consequently the ratio of the Supreme Court applies to the assessee s case because there is a clear finding of fact that the assessee had changed the method of accounting from 1st April, 1973. Much water has flowed under the bridge thereafter based on such finding. Therefore, the plea that the ratio of the Supreme Court applies to the case of the assessee ipso facto is not tenable because it involves arguments and investigation of facts which could be established by a long-drawn process of reasoning on points on which there could be conceivably two opinions. It also involves a debatable point of law which is not apparent from record. It is not an obvious and patent mistake which could be corrected. 18. In the result, both the miscellaneous applications are rejected.
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1990 (12) TMI 126 - ITAT COCHIN
Capital Gains, Computation Of Capital, Cost Of Acquisition, Set Off ... ... ... ... ..... order it would appear that the ITO at the time of making the original assessment was aware of the dispute between the assessee and Smt. Kamalamma as the order has got obvious reference to the decree of the Sub-Court and to the estate duty payable on the property which was also a subject matter of compromise between the assessee and Smt. Kamalamma. Therefore, it cannot be held that materials were not before the ITO when he made the original assessment. From this, an inference can be drawn that the reassessment was triggered by change of opinion on the same set of facts which the revenue is not entitled to do. Thus, the objection of the assessee against reassessment under section 147(b) is upheld. In the view we take on the reassessment proceedings, we hold that it is not open to the CIT(A) to convert the originally assessed long-term capital gains into short-term capital gains even on the basis of acquiescence on the part of the assessee, if any. The cross objection is allowed
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1990 (12) TMI 125 - ITAT BOMBAY-C
Double Taxation Avoidance Agreement, Permanent Establishment ... ... ... ... ..... income from business or profession. It would include not only the provisions contained in sections 28 to 43A of the Act but also other provisions of the Act dealing with Computation of income under the head Profits and gains of business or profession . Art. III(3) provides for computation of the industrial and commercial profits by deducting all expenses and is thus a provision providing for computation of income under the head Profits and gains of business or profession . It would be a provision under section 90 of the Act and would be subject to the restrictive clauses of section 40A(5). There is no conflict between the provisions of DTAA and the Income-tax Act. One overrides the other as per the specific provisions of the statute. We, therefore, reject the contention of the assessee and hold that the CIT(A) was justified in deciding the matter against the assessee. The assessee fails on this ground. 6 to 18. These paras are not reproduced here as they involve minor issues.
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1990 (12) TMI 124 - ITAT BOMBAY-C
Capital Gains, Foreign Currency, Indian Company, Non-resident Company, Previous Year ... ... ... ... ..... 0 on the date of the sale is not acceptable for two reasons. Firstly, the date of remittance of this amount was a later date. The conversion on the date of the sale into Swiss Francs is only theoretical inasmuch as this is not the amount shown in the books by the foreign company as it could not have remitted the sale proceeds in rupees immediately on the date of sale which took place in India and, secondly, the exchange fluctuations which have reduced the value of the sale price in terms of Swiss Francs cannot be treated as cost of acquisition nor can it be allowed as an expenditure incurred as no such deduction is provided under section 48 of the Act while computing capital gains. That is the finding given by the Kerala High Court in Stumpp and Schuele GmbH s case. For these reasons, we are of the view that the computation of capital gains made by the IAC and confirmed by the CIT(A) is correct and does not call for any modification. 10. In the result, the appeal is dismissed
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1990 (12) TMI 123 - ITAT BOMBAY-C
Banking Company, Deduction In Respect, Double Taxation Avoidance Agreement ... ... ... ... ..... tnam Port Trust 1983 144 ITR 146, has observed that this circular should be given effect to by the tax authorities. It is, therefore, not correct to say, as observed by the CIT(A), that the apprehension of discrimination in the mind of the company is not well founded. Such discrimination did exist in the section as it stood prior to the amendment and this fact was recognised by the authorities concerned when they amended the section by introducing clause (b) with effect from 1-4-87. Therefore, the deduction in respect of provision for bad and doubtful debts claimed under section 36(1)(viia) would, in our opinion, be available to the assessee-company by virtue of operation of Article 23 of the DTA Agreement for reasons stated by us hereinabove. We direct accordingly. Ground Nos. 9 and 10 for the assessment year 1985-86 and 8 and 9 for the assessment year 1986-87 would therefore be treated as allowed. 11.to 23. These paras are not reproduced here as they involved minor issues.
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1990 (12) TMI 122 - ITAT BOMBAY-B
Reassessment, Non Disclosure Of Primary Facts ... ... ... ... ..... al facts necessary for making a proper assessment and to the facts of this case section 147 of the Act was not applicable. In this view of the matter, which I thought could be decided on the basis of the facts on record, I have not made any reference to the case law referred to by the counsel before me. It is to be remembered that the issue before the Tribunal as well as before me was not whether the sum of Rs. 30,000 was includible in the assessment for the assessment year 1978-79 but the issue was whether the assessee had disclosed fully and truly all material facts necessary for making a proper assessment so that the provisions of section 147 could be invoked. It is to this point that we addressed ourselves and came to the conclusion that there was no failure on the part of the assessee in any manner to disclose the material facts fully and truly. 12. The matter will now go before the regular Bench for disposing of the appeal in accordance with the opinion of the majority.
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1990 (12) TMI 121 - ITAT BOMBAY-B
A Partner, In Part, Partnership Deed, Partnership Firm ... ... ... ... ..... ld that they were assessable in the status of association of persons . The claim of the assessees about there being a partnership stood negatived. In the case of CIT v. Har Parshad 1989 178 ITR 591, the Hon ble Punjab and Haryana High Court has also held that, the expression association of persons means an association in which two or more persons join in a common purpose or common action, and as the words occur in a section which imposes a tax on income, the association must be one the object of which is to produce income, profits orgains . 12. On the facts and in the circumstances of the cases with which the ITAT is seized of, since the individual shares of the members carrying on the business are indeterminate/unknown, tax has to be charged on the total income of the association as provided for under section 167A(2) of the Act. I hold accordingly, with the result that the impugned orders of the learned lower authorities in each of the cases stand upheld and the appeals fail
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1990 (12) TMI 120 - ITAT BOMBAY-B
Custom Duty, Plant And Machinery, Revenue Expenditure ... ... ... ... ..... transferring the plant and machinery or equipments would be an expenditure incurred by the assessee in the normal course of business. The customs duty in this case was paid by the assessee due to transportation of the machinery from Iraq to India. It was a transportation of the used machinery by the assessee from one place to another and, therefore, by incurring this expenditure by the assessee, there was no increase in the value of the asset or the capacity of the asset. There was no advantage in the capital field which could be said to be of enduring nature for treating the same as capital expenditure. Looking to the facts and circumstances of the case, we are of the opinion that the expenditure incurred by the assessee was an allowable deduction and we direct the allowance thereof. The assessee succeeds on this ground. Depreciation allowed with respect to this sum shall be withdrawn accordingly. 19. and 20. These paras are not reproduced here as they involve minor issues.
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1990 (12) TMI 119 - ITAT BOMBAY-A
Assessing Officer, Development Allowance, Investment Allowance, Mistake Apparent From Record, Plant And Machinery
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1990 (12) TMI 118 - ITAT BOMBAY-A
Assessed Tax, Late Filing, Registered Firm, Tax Liability ... ... ... ... ..... ti High Court in the case of Maskara Tea Estate. Besides this, the High Court of M.P. after consideration of the decision of the Rajasthan High Court in Builders Engineers Co. s case has held that penalty under section 271(1)(a) was leviable on a registered firm even though it had no tax liability within the meaning of expression assessed tax as given in Explanation 2 to section 271(1)(i)(b). This decision was rendered by the M.P. High Court in Kaluram Ladharam v. CIT 1989 44 Taxman 219. It appears that it was not brought to the notice of the Bench D of the Tribunal when the case of Bombay Novelty Stores had come up for hearing. 8. In view of the direct decision of the Bombay High Court on the point coupled with the fact that the same view has been adopted by the High Court of Madhya Pradesh, we are of the opinion that the penalty, on the facts of the present case, was rightly levied and the order of the AAC calls for no interference. 9. In the result, the appeal is dismissed
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1990 (12) TMI 117 - ITAT BOMBAY-A
Provident Fund ... ... ... ... ..... on should be treated as penal and what proportion as compensatory. While determining the proportion we have to bear in mind that the Supreme Court has held that the expression damages occurring in section 14B is in substance a penalty. Keeping in view what has been held by the Supreme Court and the special facts of the present case as per para 6 above, we think it reasonable to treat 60 of the amount paid under section 14B of the Act as penalty and the remaining 40 as compensatory in nature and we hold accordingly. 15. In view of the above discussions, the order of the CIT(A) is modified and deduction is allowed to the extent of 40 of the damages levied at Rs. 1,61,689.20 paise. For the balance payment made under section 14B of the Act and the penalty levied for the delayed payment of ESIC dues we hold that the deduction is not admissible and the order of the CIT(A) to that extent is reversed and that of the ITO is restored. 16. In the result, the appeal stands partly allowed
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1990 (12) TMI 116 - ITAT BANGALORE
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... ... ..... having ownership. A wrongful occupant always runs the risk of being dispossessed by the rightful owner so long as he has not perfected title by adverse possession. Such right should be taken at a discounted value. With regard to the extent of discount, it may vary from asset to asset and from circumstance to circumstance. In principle, we uphold the view of the Commissioner (Appeals) in giving a discount in the case of C.F. Colaco. 12. The Commissioner (Appeals), in the appeal for assessment year 1980-81, in the case of C.F. Colaco, discounted by 50 on the rate adopted in respect of the land owned by the firm. The revenue has not challenged the rate of discount. 13. In the case of C. Colaco (for assessment year 1979-80), the Appellate Asstt. Commissioner has not given any discount. In the circumstances, we direct that the same percentage of discount be given in the assessment for 1979-80 on the rate adopted for that year. 14. For the foregoing, the appeals are allowed in part
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1990 (12) TMI 115 - ITAT AHMEDABAD-B
Cash Basis, Trading Receipt ... ... ... ... ..... he system adopted by the assessee. Howsoever such remarks and observations might have been justified in the facts and circumstances of the case, we wish that those would not have been made without a study of the relevant rules which the assessee was bound to follow. Moreover such remarks and observations raised a question mark against the wisdom of income-tax authorities who had approved of the method of accounting adopted by the assessee in past years as also in subsequent years. In view of the fact that the assessee had succeeded on merits we would not like to comment more on this aspect of assessee s grievance. 32. Ground No. 9 in assessee s appeal relate to the change of interest under section 215 of the Act. It seeks consequential relief, which, we are sure, would be taken due care of by the ITO at the time of giving effect to this order. 33. In the result, Revenue s appeal fail and is dismissed while assessee s appeal succeeds in part and is, accordingly, partly allowed
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1990 (12) TMI 114 - ITAT AHMEDABAD-A
Dissolution Of Firm, Investment Allowance ... ... ... ... ..... case of Lakshmi Wvg. Factory v. Addl. CIT 1979 116 ITR 80 has also taken a similar view while dealing with the question relating to withdrawal of development rebate on the dissolution of the partnership firm. The Hon ble Gujarat High Court held that development rebate allowed to a partnership firm cannot be withdrawn under section 34(3)(b) r.w.s. 155(5) of Income-tax Act because surplus assets of the partnership are distributed amongst the partners on the dissolution of the firm. There cannot be said to be utilisation of the assets in which the development rebate was allowed otherwise than for the purposes of the business of the undertaking. It was held that development rebate cannot be withdrawn under such circumstances. 8. In view of the aforesaid discussions, we are of the considered opinion that the CIT(A) has rightly held that there was no justification in withdrawing the investment allowance granted to the assessee. 9. In the result, the revenue s appeals are dismissed
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