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Case Laws
Showing 161 to 180 of 300 Records
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1989 (9) TMI 142 - ITAT BOMBAY-A
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... ... ..... nses being treated as part of salary and not as perquisites for the purpose of computing the disallowance under s. 40A(5). The Tribunal s Special Bench decision in Glaxo Laboratories (India) Ltd. vs. ITO (1986) 18 ITD 226 (Bom) (SB) is against the Department and in favour of the assessee. Hence, this ground of appeal is rejected. 34. Department s next ground of appeal is directed against the disallowance under r. 6D being calculated on the basis of the aggregate expenditure and not on the basis of expenditure being each trip. On this point, we have the following two decisions of the Tribunal which are against the Department (1) S.V. Ghatalia vs. 2nd ITO (1983) 37 CTR (Trib)(Bom) 68 (1983) 4 ITD 583 (Bom) (2) Sundaram Finance Ltd. vs. IAC (1984) 18 TTJ (Mad) 348 (SB) (1984) 40 CTR (Trib) Mad) 1 (SB) (1984) 7 ITD 845 (Mad). Department s this ground of appeal deserves to be rejected and we do so. In effect, Department s appeal for asst. yr. 1982-83 is treated as partly allowed.
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1989 (9) TMI 141 - ITAT BOMBAY-A
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... ... ..... te of the order sought to be revised. Thereafter, it being a special law, period of limitation cannot be extended taking recourse to the provisions of s. 4 or 5 of the Limitations Act, as specifically laid down by Delhi and Karnataka High Courts. In this case, assessment order was passed by the ITO on 12th March, 1976 and the CIT, exercising jurisdiction under s. 263, by issuing notice to the assessee, decided the matter on 13th March 1978. As per the provisions of s. 263(2), prior to amendment which are applicable to the instant case, this power under s. 263(1) could be exercised before the expiry of a period of two years from the date of assessment order. i.e., before 11th March, 1978. Since the impugned order under s. 263 was passed by the CIT on 13th March, 1978, the same is without jurisdiction and void ab initio. We, therefore, set aside the order of the CIT under s. 263 and allow this appeal of the assessee. 21. In the result, appeal of the assessee is hereby allowed.
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1989 (9) TMI 140 - ITAT BOMBAY-A
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... ... ..... assessment stage, the same gets altered once the regular assessment is made. As per the provisions of s. 140A(2), such payment would be deemed to be payment towards regular assessment. In such circumstances, the only inescapable conclusion is that the payment would be regarded as a payment pursuant to an assessment made by the ITO and if such payment or part thereof is found to be a in excess of the demand as a result of an appeal or other proceedings, such excess would carry interest as per the provisions of s. 255(1A) of the IT Act. There can be no dispute regarding that. We may, in this connection, would like to mention that the Delhi High Court decision against which, it is claimed, an interim stay has been granted by the Supreme Court deals with payment made by way of advance tax, and has no direct bearing on payments made under s. 140A of the IT Act. The Tribunal has only derived indirect support from that order. 4. In the result, the reference application is rejected.
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1989 (9) TMI 139 - ITAT BOMBAY-A
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... ... ..... my view, the reasonings adopted by the AAC in rejecting the assessee conention are not valid and sound. It cannot be disputed that after the chemical process and with use of the aforesaid machines Reagents and Ingredients are manufactured/produced. According to me, in order to claim deduction under s. 32A of the Act, it is not necessary that an article manufactured should be saleable in the market as commonly understood by a layman. In order to claim deduction under that section, I am of the view that it would be sufficient if the items manufactured/produced are used in some way or the other. In the instant case in cannot be disputed that both Reagents and Ingredients are such items which are used by pathologists in carrying on their profession. I would, therefore, direct the ITO to allow investment allowance under s. 32A of the Act to the assessee subject to various conditions stipulated in that section are fulfilled by the assessee. 7. In the result, the appeal is allowed.
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1989 (9) TMI 138 - ITAT BOMBAY-A
Business Expenditure, Goodwill ... ... ... ... ..... e second principle is that any payment made for the use of the goodwill is a revenue expenditure. This matter has been elaborately discussed by the Bench which heard the appeals for the assessment years 1970-71 to 1974-75. The reasonings discussed by the Bench are not reproduced. In short, the Bench concluded the matter following the said principle of the Hon ble Supreme Court There is no doubt that the assessee-firm had paid the amount for the use of the goodwill with the consent of the partners and, therefore, the payment could only be considered as a revenue expenditure. The said conclusion is also supported by the decision in CIT v. Dharampal Shantisarup 1986 162 ITR 134 (Punj. and Har.). 11. We, therefore, hold that the CIT (Appeals) has erred in confirming the disallowance of the payments made to Shri Parmanand Patel for the use of the goodwill during the years under consideration. We, therefore, delete the said disallowances. 12. In the result, the appeals are allowed.
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1989 (9) TMI 137 - ITAT BOMBAY-A
Assessment Year, Foreign Company, Indian Company ... ... ... ... ..... spects different from the terms contained in the original agreement. This agreement had also received approval of the Government of India. In such circumstances, we are of the view that the agreement entered into 1979 is a different agreement and, therefore, the effective rate of tax on the royalty received would be only 40 . The CIT(A) s order in this regard is confirmed. 4. The second ground of appeal is that the CIT(A) was in error in deleting the addition of Rs. 7,74,073 made by the ITO on protective basis. The impugned amount has already been taxed on an accrual basis in an earlier year and it is an admitted fact that the same has been included only on a protective basis. We have confirmed the addition of this amount in an earlier year on accrual basis there would, therefore, be no justification for including this amount once again on cash basis for the year under consideration. For that reason we uphold the order of the CIT(A). 5. In the result, the appeal is dismissed.
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1989 (9) TMI 136 - ITAT BANGALORE
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... ... ..... ereof had right to use In this case, the amount awarded as interest was by way of compensation and such receipt was held to be not the income of the assessee. 25. The principle laid down by the High Courts of Andhra Pradesh and Punjab and Haryana is that whenever an amount is received by an assessee by way of compensation on account of some injury suffered in respect of property belonging to him, the same cannot be classified as taxable income, with respect to their Lordships of the Madras High Court who decided MARIAPPA GOUNDER S case we are inclined to apply the principle inter alid down by the Andhra Pradesh and Punjab and Hariyana High Courts to conclude that amount received by the owner as compensation on account of deprivation of use of his property is not taxable. For these reasons we accept also the alternative submission made by Dr. Krishnan. 26. For the foregoing we direct deletion of Rs. 36,400 included in the taxable income. 27. The appeal stands allowed in part.
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1989 (9) TMI 135 - ITAT AHMEDABAD-B
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... ... ..... lage for which the assessee received compensation of Rs. 1,90,400 should be taken as nil in asst. yrs. 1976-77 and 1977-78 as till the end of these relevant years, the assessee s right to receive compensation had not been acknowledged by the Thane Municipal Council and the value of assessee s right, title or interest, if any, in the said land cannot be valued at more than nil figure as the municipal council had already taken possession of the said land in the year 1960-63 and the land had also been entered in revenue records showing Thane Municipal Council as the owner thereof. However, as the assessee has hereself declared the value of the said land at Rs. 1,90,400 in asst. yr. 1979-70 which is included in the declared value of property at Thane totalling to Rs. 2,60,400, we do not find any reason to interfere with the findings given by the AAC directing the WTO to accept the declared value of Rs. 2,60,400 for Thane property. 7. In the result, all the appeals are dismissed.
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1989 (9) TMI 134 - ITAT AHMEDABAD-A
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... ... ..... in the relevant definition was lost or stolen or destroyed it would not be included Income Tax Officer computing the net wealth of an assessee provided the same had not been insured the jewellery in question was not insured and the assessee has not received any amount of compensation from the Calcutta party or from any other concerned person or department so far over a period of 13 years In view of aforesaid facts we are of the considered opinion that such a right to receive compensation in lieu of lost jewellery has no market value on the relevant valuation date. We therefore, hold that the Dy. CWT. (A) should have reduced the value of Rs. 5,20,000 adopted by the WTO Accordingly we accept the cross objection submitted by the assessee and hold that the value of jewellery be taken at Nil as against Rs. 1,20,000 sustained by the Dy. CWT (A) 8. In view of our aforesaid finding the Revenue s appeal fails and is dismissed and the cross objection filed by the assessee is allowed.
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1989 (9) TMI 133 - ITAT AHMEDABAD-A
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... ... ..... in the assessment year under consideration. It is also an admitted fact that the assessee is not dealing in loose tea but sells the same in sealed boxes. As observed by the ITO the quantitative tally in boxes was furnished during the course of the assessment proceedings. In our opinion, it is not possible to maintain a static g.p. rate from year to year since this primarily dependent on various factors, some within the control of the assessee and others not so. In such a case one has to consider the overall picture and decide whether the g.p. rate disclosed is reasonable or not. On the facts of the present case however we would opine that there was no basis to reject the books and maintain an addition to the trading results specially when the sales had increases tremendously and it was but natural that there would be a nominal decline in the g.p. rate. We, accordingly the addition of Rs. 5,000 maintained by the CIT(A). 23. In the result, both the appeals are partly allowed.
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1989 (9) TMI 132 - ITAT AHMEDABAD-A
Assessment Year, Previous Year, Sales Tax ... ... ... ... ..... assessment year and because of the retrospective effect of the Explanation he would not get the benefit at all. The assessee should at least be entitled to get the deduction in one assessment year. It would not be the intention of the Legislature to deprive persons of vested right. 4. Lastly, if the benefit of the proviso was not to be given for the asst. years 1984-85 to 1987-88 while it would be given for the years 1988-89 onwards, that would be an unreasonable basis for classification which would have no reasonable nexus with the object of the Explanation. In other words, it would be discriminatory. The Legislature is presumed to act constitutionally and therefore, such an interpretation has to be avoided. Therefore, the assessee who has paid the last instalment of sales tax after the end of the accounting period but before the filing of the return as in the present case would be entitled to deduction in the year in which the liability was incurred as in the present case.
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1989 (9) TMI 131 - HIGH COURT OF DELHI
Words and Phrases - "Smuggling activities" and "sumggling" - Detention - Prosecution - Adjudication - Evidence
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1989 (9) TMI 130 - HIGH COURT OF GUJARAT
Departmental Circulars ... ... ... ... ..... rs be granted an opportunity to file reply/further reply to the show cause notices before the authority concerned. In the facts of the case, it is directed that if the petitioners have not replied to show cause notices, the petitioners shall file their reply latest before October 19, 1989. In cases where the petitioners have already filed their reply, the petitioners will be at liberty to file further reply on or before October 19, 1989. Thereafter the authorities shall proceed further with the show cause notices in accordance with law. 10. A needless clarification at the instance of the learned Counsel for the petitioners be made. Petitioners will be at liberty to raise all available contentions of facts and law before the departmental authorities. It will also be open to respondents to contend that no such contention as may be raised by petitioners is available to the petitioners. Subject to the aforesaid observations and directions, petition is rejected. Notice discharged.
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1989 (9) TMI 129 - HIGH COURT OF GUJARAT AT AHMEDABAD
Natural Justice - Valuation (Central Excise) ... ... ... ... ..... any material on this point, the decision arrived at by the Collector (Appeals) on this point cannot be interfered with while exercising powers under Articles 226/227 of the Constitution of India. 10. In above view of the matter, as far as the decision with regard to deduction on account of loss in price due to sale at lower price of fents, rags, chindies is concerned, it cannot be sustained as being in contravention of the principles of natural justice. To that extent, the order passed by the Collector (Appeals) is required to be reversed and set aside and hereby it is set aside to that limited extent only. The matter is remanded to the Appellate Collector, Central Excise Customs (Appeals), Bombay for affording an opportunity of being heard to the petitioner on this point and decide the issue in accordance with law. Rest of the order passed by the Collector (Appeals) is not disturbed. Rule made absolute to the aforesaid extent, with no order to costs. Petition partly allowed.
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1989 (9) TMI 127 - HIGH COURT OF GUJARAT AT AHMEDABAD
Writ Jurisdiction - Existence of alternative remedy ... ... ... ... ..... y the consignee and one sample is kept by the department and the third sample is sent for testing, shows that in case of difficulty or genuine doubt, another sample can be sent for retesting. 14. There is no justifiable ground for the petitioner to harbour an apprehension that the appellate authority would act arbitrarily and would not consider the request of the petitioner for retesting another sample by an independent agency in just and proper manner. In short, on the basis of such apprehension we would not like to entertain the petition. On the contrary we would like to presume that the appellate authority will act reasonably and will try to see that no party goes with a feeling that it has been deprived of its right to put up its case by leading proper evidence. 15. In view of the aforesaid findings, discussion and observations the learned Counsel for the petitioner seeks permission to withdraw the petition. Permission granted. Disposed of as withdrawn. Notice discharged.
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1989 (9) TMI 125 - HIGH COURT AT CALCUTTA
MODVAT scheme ... ... ... ... ..... titioner. The only determination that is made in the Writ application, is that the petitioner should be deemed to have been opted out from the said MODVAT Scheme with effect from the date of his prayer, but the petitioner s liability to pay excise duty in usual and ordinary course except under the MODVAT Scheme remains and the petitioner is liable to pay the same. The show cause notices that were issued demanding excise duty were set aside only to the extent that it cannot realise duty under the MODVAT Scheme when the petitioner had opted out of such scheme. I also make it clear that this determination will not affect the right of the respondents to proceed for realisation of excise duty, payable by the petitioner, otherwise than in accordance with the MODVAT Scheme. 10. The writ petition succeeds to the extent indicated above. There will be no order as to costs. 12-9-1989 (Mentioned) As prayed for let the operation of the order be stayed for a period of two weeks from date.
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1989 (9) TMI 124 - HIGH COURT OF KERELA AT ERNAKULAM
Stay/Predeposit of duty - Writ Jurisdiction ... ... ... ... ..... ). I do not think the proper course is to interfere with the order of the Tribunal, but to give another opportunity to petitioner to place the relevant material before the Tribunal. Petitioner, if advised, may make a fresh application before the Tribunal and the Tribunal shall consider the same on merits uninfluenced by the observations made in Ext. P7. Till such time as tribunal takes a decision on that application, Ext. P7 shall not be given effect to and thereafter Ext. P7 will be subject to such orders as the Tribunal may pass on the application to be made within three weeks from today. With this direction, Writ Petition is disposed of.
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1989 (9) TMI 123 - MADRAS HIGH COURT
Circles - Stainless Steel Circles - Customs ... ... ... ... ..... e applicable from time to time to stainless steel sheets. ... 19. Therefore, the legislative intent is very clear that earlier under the Heading 73.15(2) as it stood, circles were not included. That came to be specifically included on 1-1-1981. Under these circumstances, it is not open to the fiscal authorities to treat circles on a par with sheets and levy duty at 220 per cent. If pursuant to that levy, a demand had been made and the appellants were obliged to pay, certainly they would be entitled to refund because we hold that circles admittedly imported by the appellants would fall under Clause (1) of Heading 73.15, namely, not elsewhere specified . In such an event, the duty will be only 40 at the relevant time and not 220 per cent. 20. Therefore, we set aside the judgment of the learned Single Judge and allow these appeals. There will be a mandamus with a direction to refund. The said refund shall be made within eight weeks from today. There will be no order as to costs
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1989 (9) TMI 122 - HIGH COURT OF GUJARAT AT AHMEDABAD
Printed books - Words and phrases - 'Antique' - Meaning and scope ... ... ... ... ..... letters wherein it is merely stated that the Heading of antique does not exclude printed books cannot be granted. The question as and when arises on actual import of a book or books will have to be decided with reference to the facts and evidence concerning the said book. Such question cannot be decided at this stage in an academic fashion when there is no actual import and when there is no evidence about any particular book. As and when there is such import, the question will have to be first adjudicated by the Customs Authorities, at which stage, the petitioner would be entitled to raise all contentions which are raised in the petition and such other contentions as he maybe advised, including one that in the alternative, the book would be covered by the Heading 97.05 or any other Entry. 5. In view of the aforesaid discussion, we do not find that there is any case made out for interference at this stage by the High Court. Hence, this petition is dismissed. Rule discharged.
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1989 (9) TMI 121 - HIGH COURT OF GUJARAT AT AHMEDABAD
Dutiability - Stage of levy in case of evasion - Condition of goods ... ... ... ... ..... aged, sub-standard cloth which can be called rags. Therefore, once it is found that the petitioner manufactured sound cloth, the petitioner had become liable to pay duty on the product manufactured by it. In the instant case it was a device adopted by the petitioner to convert sound cloth manufactured by it into rags by cutting the same into pieces of shorter length. The petitioner knew that which was being removed out of the factory premises was not rags, but was sound cloth having outward appearance of rags. Rags were not manufactured by the petitioner. Only with a view to evade payment of excise duty, a device was adopted by the petitioner. Therefore the contention raised by the learned counsel for the petitioner by referring to the provisions of Section 4 of the Act read with Rule 9 of the Rules has also no merits. 8. No other contention is raised. 9. There is no substance in the petition. Hence rejected. Rule discharged. Ad-interim relief granted earlier stands vacated.
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