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Case Laws
Showing 161 to 180 of 186 Records
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1992 (12) TMI 26 - KARNATAKA HIGH COURT
Double Taxation Avoidance Agreement ... ... ... ... ..... ific provision is made in the double taxation avoidance agreement, that provision will prevail over the general provisions contained in the Income-tax Act, 1961. In fact the Double Taxation Avoidance Agreements which have been entered into by the Central Government under section 90 of the Income-tax Act, 1961, also provide that the laws in force in either country will continue to govern the assessment and taxation of income in the respective country except where provisions to the contrary have been made in the Agreement. 3. Thus, where the Double Taxation Avoidance Agreement provides for a particular mode of computation of income, the same should be followed, irrespective of the provisions in the Income-tax Act. Where there is no specific provision in the agreement, it is the basic law, i.e., the Income-tax Act, that will govern the taxation of income. In view of the above, the question is answered in the affirmative and against the Revenue. Reference is answered accordingly.
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1992 (12) TMI 25 - PATNA HIGH COURT
Company, Salary ... ... ... ... ..... e Court to take a view in favour of the assessee have been retained by the Legislature under the 1961 Act as well. Having heard learned counsel for the parties, it cannot be disputed that the question which has fallen for our consideration in this case is squarely covered by our opinion rendered in the case of CIT v. J. G. Keshwani 1993 202 ITR 391 (Taxation Cases Nos. 56 to 59 of 1980 decided on October 29, 1992 ). In the said judgment, we have examined in detail the corresponding provisions as appearing under the 1922 Act and the 1961 Act. In my opinion, the said judgment is conclusive so far as this court is concerned for the question involved. In the above view of the matter, the question referred to this court is answered in the negative, i.e., against the assessee. However, there shall be no order as to costs. Let a copy of this judgment be transmitted to the Income-tax Appellate Tribunal, Patna Bench, Patna, in terms of section 260 of the Act. AFTAB ALAM J. - I agree.
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1992 (12) TMI 24 - KARNATAKA HIGH COURT
HUF, Partial Partition In HUF, Partition ... ... ... ... ..... f CIT v. Seth Gopaldas (HUF) 1979 116 ITR 577 (MP), that partial partition can be made only by the consent of all, it may be pointed out that the question of consent would not arise in this case as the sons were minors and they could not give any valid consent. It is the father who acted on their behalf. Thus, we would hold that the father in this case had every right to bring about a partial partition of the family properties among his sons inter se as part of his patria potestas. The above observation of the Calcutta High Court fully supports the contention of the assessee before us. The karta of a Hindu undivided family can always effect a partition and allot a share to his minor son. The partition may be absolute or partial. So long as the statutory requirement is satisfied, the same shall have to be acted upon by the Revenue. For the reasons stated above, we disagree with the view taken by the Tribunal. The question is answered in the affirmative and against the Revenue.
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1992 (12) TMI 23 - BOMBAY HIGH COURT
Advance Tax, Appeal To AAC, Appeals, Assessment Order ... ... ... ... ..... confined to the facts of that case. In that particular case all the authorities below right from the Income-tax Officer onwards proceeded on the footing that it was an order of rectification. The High Court also proceeded on that presumption. In our opinion, that judgment does not lay down any legal proposition of general application. That is confined to the facts of that case. There too we have got our own reservation. Whether a label put by the authorities below on a particular order is binding on the High Court is a question that may need serious consideration in view of a number of decisions of the Supreme Court on the point. As it is not necessary to go into that aspect of the matter in this case in view of the conclusion already arrived at by us that the appeal is maintainable under section 246(c) of the Act, we do not propose to discuss the same. In the result, the question referred to us is answered in the negative and in favour of the assessee. No order as to costs.
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1992 (12) TMI 22 - KARNATAKA HIGH COURT
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... ... ..... e scope of articles 226 and 227 of the Constitution, we are concerned here with the statutory jurisdiction of the High Court under section 256 of the Act. The reference has, no doubt, arisen out of an appeal filed by the assessee before the Bench of the Tribunal at Bangalore. It is unnecessary for us to examine whether the said appeal was within the competence of the Bench of the Tribunal at Bangalore. It may be a case of a specific allotment of work by the President of the Tribunal under rule 4 referred to above or it may be a case of a curable mistake it may also be a case of a total lack of jurisdiction. As we have no competence to consider this reference, we need not go into this question pertaining to the jurisdiction of the Bench of the Tribunal at Bangalore in entertaining the appeal of the assessee. Consequently, we are of the view that this reference to this court is not valid and it cannot be considered by this court the reference is accordingly returned unanswered.
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1992 (12) TMI 21 - ORISSA HIGH COURT
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... ... ..... remuneration or recompense for the services rendered by the employee is determined at a fixed percentage of turnover achieved by him then such remuneration or recompense will partake of the character of salary, the percentage basis being the measure of the salary and, therefore, such remuneration or recompense must fall within the expression salary as defined in rule 2(h) of Part A of the Fourth Schedule to the Act. The fact situation is identical here. The Assessing Officer had rightly assessed the amount under the head Salary . The Appellate Assistant Commissioner, after having correctly concluded that the amount was taxable under the head Salary , had erred in directing allowance of expenditure at the rate of 30 per cent. of gross receipt. The Tribunal s conclusions are not defensible. Our answer to both the questions are in the negative and in favour of the Revenue and against the assessee. The references are accordingly disposed of. No costs. D. M. PATNAIK J. -I agree.
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1992 (12) TMI 20 - ORISSA HIGH COURT
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... ... ..... e she was a partner and consequently was required to look after her interest and perform his duties as a man of prudence. There is no material to show that the assessee was acting as an employee. The Tribunal has recorded a categorical finding that there was not even an iota of evidence to support the Revenue s stand of existence of relationship of employer and employee between the assessee and Miss Girdhar. This essentially is a conclusion on facts. Additionally, we find that the agreement between the assessee and Miss Girdhar as referred to in detail by the Appellate Assistant Commissioner and the Tribunal indicates the nature of the duties which the assessee was required to undertake. From the agreement, it cannot be discerned that there was an element of relationship of employer and employee. The income has been rightly held to be taxable under the head Income from other sources . We accordingly answer the question in the affirmative. No costs. D. M. PATNAIK J. -I agree.
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1992 (12) TMI 19 - RAJASTHAN HIGH COURT
Expenditure On Constructing Traffic Island, Fresh Contention Before Tribunal, Interest Free Advances To Partners
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1992 (12) TMI 18 - RAJASTHAN HIGH COURT
Accounting, Income, Interest On Advance ... ... ... ... ..... inal copy of the agreement for reasons best known to it in spite of opportunity being given by the Income-tax Officer. The assessee has acquired a right to receive the interest and, therefore, the income has accrued. The right which has accrued in favour of the assessee is an enforceable right. An income may accrue without the actual receipt of the same, if a right has accrued to receive the said income by the assessee. Debitum in praesenti, solvendum in futuro. Once an income has accrued in a particular year it would be excluded from the computation of the total income of other years. In these circumstances, we are of the view that the Income-tax Appellate Tribunal was justified in coming to the conclusion that the interest on the amount advanced to Messrs. Citric India Ltd. has accrued to the assessee-company which was following the mercantile system of accounting. The reference is accordingly answered in favour of the Revenue and against the assessee. No order as to costs.
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1992 (12) TMI 17 - RAJASTHAN HIGH COURT
Failure To File Return In Time, Penalty, Reasonable Cause, Wealth Tax ... ... ... ... ..... of the two sections exist. Even the date of search has not been mentioned nor has it been mentioned as to whether any of the items mentioned in section 14(1) were seized as a result of search under section 132. For the applicability of the provisions, the conditions must be strictly fulfilled. If the declaration is considered under section 14(1), then each of the conditions of that section must be considered to have been satisfied and then only it could be held that the declaration was made under section 14(1). Since this basic finding has not been given and the matter has not been examined thoroughly in accordance with the various conditions stipulated for considering as to whether the declaration falls under section 14(1) or section 3(1), the reference is returned unanswered and the Income-tax Tribunal is directed to hear the parties and decide the matter in accordance with the observations made above. The reference is accordingly returned unanswered. No order as to costs.
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1992 (12) TMI 16 - RAJASTHAN HIGH COURT
Failure To File Return In Time, Penalty, Reasonable Cause, Wealth Tax ... ... ... ... ..... by evidence, then the veracity of such evidence is to be examined and in case of doubt the benefit has to be given to the assessee. In the present case, the Income-tax Appellate Tribunal has proceeded on the basis that the valuation in the past had been on rent capitalisation method. In the present case, in the quantum appeal before the Appellate Assistant Commissioner of Wealth-tax, the valuation was reduced by a sum of Rs. 15,000. It is not known as to whether the matter was taken to the Tribunal or not because the amount of tax involved was only Rs. 607. The finding which has been given by the Tribunal is primarily one of fact and cannot be said to be perverse or unreasonable and, therefore, we are of the opinion that the Income-tax Appellate Tribunal was justified in cancelling the penalty of Rs. 12,423 levied under section 18(1)(a) of the Wealth-tax Act, 1957. Accordingly, the reference is answered in favour of the assessee and against the Revenue. No order as to costs.
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1992 (12) TMI 15 - RAJASTHAN HIGH COURT
Business Expenditure, Gratuity ... ... ... ... ..... nder section 37, then under section 28(i) itself. The Income-tax Appellate Tribunal was also not correct in coming to the conclusion that the provisions contained in section 40A will not be applicable since no provision has been made in the books of account. This matter was also considered and the argument was negatived in Shree Sajjan Mills Ltd. v. CIT 1985 156 ITR 585 (SC) referred to above and the Supreme Court observed that such an interpretation would lead to an absurd result. We are, therefore, of the view that the Tribunal was not justified in holding that the claim of gratuity was allowable under section 37 or under section 28 of the Income-tax Act, 1961. We are also of the view that the Income-tax Appellate Tribunal was not at all justified in coming to the conclusion that the claim of the assessee is not hit by section 40A(7)(a) of the Income-tax Act, 1961. The reference is, therefore, answered in favour of the Revenue and against the assessee. No order as to costs.
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1992 (12) TMI 14 - RAJASTHAN HIGH COURT
Additional Grounds, Appeal To Tribunal ... ... ... ... ..... Appellate Tribunal has also not decided the issue in terms of the provisions of section 250(5) and unless a finding is recorded that the omission to take the ground in the form of appeal was not wilful or unreasonable, no directions could have been given to entertain the said additional ground. The matter is, accordingly, sent back to the Tribunal to record a finding in terms of section 250(5) of the Act or to direct the Appellate Assistant Commissioner to act in terms of the provisions of the said section and observations made above and then to proceed in accordance with law. Accordingly, the reference is answered in favour of the Revenue and it is held that the Tribunal was not justified in setting aside the order of the Appellate Assistant Commissioner and directing him to entertain the additional ground. The matter shall now be heard by the Tribunal in terms of the judgment given by this court and appropriate order passed after hearing the parties. No order as to costs.
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1992 (12) TMI 13 - RAJASTHAN HIGH COURT
Charitable Purpose, Charitable Trust, Exemptions, Private Charitable Trust, Public Charitable Trust
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1992 (12) TMI 12 - RAJASTHAN HIGH COURT
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... ... ..... bmitted and the assessment was not framed under section 144 on account of non-compliance with the notice issued under section 148. It was on account of the issue of notice under section 143(2) that the information/statement which was not submitted along with the return were subsequently submitted and, therefore, the assessment was framed under section 143(3). Mere writing of section 148 will not escape the assessee of the liability to pay tax in accordance with the return which was submitted by him. The view which has been taken by the Tribunal is not in accordance with law and the Tribunal has gone on technicalities which is not sustainable under law. In these circumstances, we are of the view that the Income-tax Appellate Tribunal was not justified in coming to the conclusion that the assessment was framed under section 148 and was not framed under section 143(3). Accordingly, the reference is answered in favour of the Revenue and against the assessee. No order as to costs.
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1992 (12) TMI 11 - RAJASTHAN HIGH COURT
Business Expenditure ... ... ... ... ..... document or judgment of the Rajasthan High Court or the ultimate decision in the matter has been produced. Even the copy of the judgment in the civil suit has not been annexed or produced before us. So far as the legal position is concerned, it has already been explained above that, if there is a liability and simply because it has been challenged in appeal or in a court of law, it will not disentitle the assessee from claiming deduction for such liability when the accounts are maintained on the mercantile basis. Since considerable time has already passed and the present reference does not contain full facts, it would be in the interest of justice that the reference be returned unanswered to the Tribunal for deciding the same in accordance with law. Accordingly, the reference is returned unanswered and the Tribunal shall hear the parties afresh when all documents shall be produced and then an order in accordance with law shall be passed by the Tribunal. No order as to costs.
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1992 (12) TMI 10 - ALLAHABAD HIGH COURT
Business Expenditure, Company, Disallowance, Salary Paid To Managing Director ... ... ... ... ..... The learned Tribunal, in its finding, has held that there was no evidence to show that the increase was justified by the services rendered by him. It has also held that the decision of the Appellate Assistant Commissioner holding that the remuneration of Rs. 600 per month would be fair was reasonable. These are all findings of fact which this court is not authorised to review and the legal effect is that to the extent the salary has been disallowed, it was excessive and unreasonable having regard to the legitimate business needs of the company in spite of the fact that the words legitimate business needs of the company have not been used by the Tribunal. For the above reasons, we hold that the Tribunal was right in upholding the disallowance of a part of the remuneration paid to the managing director, Ram Awadh Dubey, and we answer the aforesaid question in the affirmative and in favour of the Revenue. The Commissioner shall, get his costs of his reference from the assessee.
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1992 (12) TMI 9 - PUNJAB AND HARYANA HIGH COURT
Excise Duty, Liquor Business ... ... ... ... ..... the appellant before the Supreme Court. The sales tax was, therefore, held payable on the total turnover which included excise duty as well. Their Lordships were not dealing with provision like section 206C of the Act which requires tax to be collected at source on the amount payable by the buyer to the seller at the time of sale. That judgment is of no help to the respondents. I am, therefore, of the view that the sellers, namely, the distilleries (manufacturers) are not entitled to collect tax at source on the amount of excise duty already paid by the buyers into the Government treasury as that is not the amount payable by them to the sellers at the time of sale/purchase of liquor. For the reasons recorded above, the writ petitions are allowed and the respondents are directed not to collect tax at source on the amount of excise duty paid by the petitioners into the Government treasury at the time of obtaining distillery permits. The parties are left to bear their own costs.
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1992 (12) TMI 8 - RAJASTHAN HIGH COURT
Law Applicable To Penalty Proceedings ... ... ... ... ..... n the Revenue and reducing the quantum of concealment in the facts and circumstances of this case. The Tribunal has wrongly proceeded on the assumption on the basis of admission of the assessee that the income received from the employees of the Posts and Telegraphs Department was Rs. 40,000. There was no evidence in support of its conclusion and no evidence was brought by the assessee on record to prove that the figures received from the Posts and Telegraphs Department were incorrect. We are further of the view that the Income-tax Appellate Tribunal misdirected itself in computing the amount of concealed income at Rs. 5,000 as against Rs. 25,071 computed by the Inspecting Assistant Commissioner and thus reducing the penalty imposed under section 271(1(c) of the Income-tax Act, 1961, to Rs. 7,500. It is further held that the penalty could be imposed on the basis of the law as was prevalent on the date of furnishing of the original return. The reference is answered accordingly.
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1992 (12) TMI 7 - RAJASTHAN HIGH COURT
Income, Interest ... ... ... ... ..... it has not been received. The assessee has produced the copy of the minutes which was recorded by the secretary of the assessee with regard to his discussion with the joint Secretary, Government of India, in which the joint Secretary had informed him that the assessee s claim for interest had been rejected. The said minutes have been recorded in the regular course of business by the assessee-company and have not been disbelieved. It is mentioned in the order that there was a change in the policy of the Government of India with regard to the payment of interest subsequently which covers even the period under dispute. In these circumstances, the Tribunal was justified in upholding the order of the Commissioner of Income-tax with regard to deletion of the amount of Rs. 5,64,493 which was added by the Income-tax Officer as interest accrued to the income of the company. Accordingly, the reference is answered in favour of the assessee and against the Revenue. No orders as to costs.
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