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Showing 181 to 200 of 290 Records
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1990 (3) TMI 110 - ITAT DELHI-A
Foreign Company, Investment Allowance, Road Transport Vehicle, Total Income ... ... ... ... ..... me Court decision in Addl. CIT v. Gurjargravures (P.) Ltd. 1978 111 ITR 1. The learned counsel for the assessee very fairly admitted that in the approval of the CBDT it is clearly mentioned that the permission u/s. 80-O is granted to the assessee up to 31-3-1982. Keeping in view the fact that provisions of sec. 80-HHB came into operation w.e.f. 1-4-1983. Therefore he did not submit any more on this ground. In view of the fact that the approval was granted up to 31-3-1982 for exemption u/s. 80-O and the provisions of sec. 80-HHB came into operation w.e.f. 1-4-1983 pertaining to the relevant assessment year under consideration, therefore, the Department s appeal has to be allowed and the decision of CIT(Appeals) has to be set aside. We, therefore, set aside the order of CIT(Appeals) for this year and restore back the order of the ITO. 21. In the result assessee s appeal for the asst. year 1982-83 is allowed and that of the Department stands allowed for statistical purposes only
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1990 (3) TMI 109 - ITAT DELHI-A
Book Entries, Trading Liability ... ... ... ... ..... statement was filed before the ITO. We have also heard the Sr. DR who has fully supported the addition made by the ITO. 23. The paper book filed by the assessee includes a copy of the bank statement at pages 12 and 13, which clearly shows that during the relevant accounting year two deposits of Rs. 1262.80 and Rs. 9600.92 were made in the bank account of the assessee on 29-10-80 and 29-12-80 respectively by transfer from the Bengal Potteries Ltd. The amount added by the ITO was in deposit in the bank account of the assessee on 29-6-87. Considering the bank statement and the submissions made on behalf of parties, we are of the opinion that the bank deposit was fully explained and that there was no justification for making the said addition. The addition of Rs. 9,935 is accordingly deleted. 24. Ground No. 6 has not been pressed before us and the same is accordingly rejected. 25. In view of what has been said above, the appeal stands partly allowed to the extent indicated above
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1990 (3) TMI 108 - ITAT CHANDIGARH
Accounting Year, Assessing Officer, Average Rate, Closing Stock. ... ... ... ... ..... e Allahabad Bench of the Tribunal in ITA No. 1013/All./85 in the case of Jewellers Co. v. ITO 1988 30 TTJ (All.) 54, for the proposition that for valuation of gold jewellery by assessee, assumption should be that whatever is left in the stock at the end of the year has come out of purchases of the year and what was sold during the year had come out of the opening stock. However, we would like to follow our own decision in the case of Gurditta Mal Mati Ram because in a jewellery business, it is not proper to assume that the items in the closing stock or for that reason purchases in the immediately preceding year shall necessarily be sold and that the old stocks are not normally kept. On the contrary, we have come across several cases where old jewellery remains unsold for number of years and if in such cases the assessee values those stocks on cost basis, no infirmity can be found with such a method. 13. In the result, lifting both the additions, we allow the assessee s appeal
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1990 (3) TMI 107 - ITAT CALCUTTA-E
Export Business, Orders Prejudicial To Interests, Total Income ... ... ... ... ..... nd in a statute, the court should not confine its attention only to the particular provision which falls for consideration but the court should also consider other parts of the statute which throw light on the contention of the Legislature and serve to show that the particular provision ought not to be construed as if it stood alone and apart from the rest of the statute. Every clause of a statute should be construed with reference to the context and other clauses of the statute so as, as far as possible, to make a consistent enactment of the whole statute. 38. In view of the foregoing, therefore, we hold first that, in the facts and circumstances of the case, the CIT rightly assumed jurisdiction under section 263 of the IT Act, 1961, and, secondly, that he rightly directed the ITO to allow the assessee the benefit of carry forward in respect of the sum of Rs. 91,822 only. We, therefore, decline to interfere in the matter. 39. In the result, the assessee s appeal is dismissed
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1990 (3) TMI 106 - ITAT CALCUTTA-A
Fixed Deposit ... ... ... ... ..... individual properties of the partners. In such a situation, the fixed deposits have to be taken as the property of the firm and the interest thereon has to be assessed in the hands of the firm. The ITO was wholly justified in his action in bringing Rs. 10,903 to tax in the hands of the assessee-firm. The decision of the Tribunal dated 4-7-1989 in the assessee s case for the assessment years 1981-82, 1982-83 and 1983-84 is not helpful to the assessee. In those years, the ITO made the additions towards the interest on the fixed deposits by resorting to orders u/s 154. In the assessee s appeals before the CIT(A), he deleted the additions. Thereupon the revenue filed appeals before the Tribunal, wherein the Tribunal held that the issue involved was a debatable issue and so the additions cannot be made through orders u/s 154. But in the assessment year under consideration, the addition has been made in the regular assessment made u/s 143(3). 7. In the result, the appeal is allowed
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1990 (3) TMI 105 - ITAT BOMBAY-E
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... ... ..... he grants can be given to any deserving case and not only to the working director or other family members of the company directors. Keeping in view this finding and also the fact that the amount donated by the employer to the Welfare Trust fund has been disallowed as deduction by the ITO in the assessment of the employer and the employee. The Welfare Trust in this case appears to be duly recognised and such trust normally includes the employer as the trustees/members of the governing body. In such a case, the directors or the persons having substantial interest in the company do not have a direct control on the functioning of the trust. In that view of the matter also it cannot be said that the reimbursement of the cost of the deep freezer purchased by the assessee is to be treated as perquisite within the meaning of s. 17(2)(iv) of the IT Act. We hold accordingly and delete the addition of Rs. 16,000 as salary income of the assessee. 4. In the result, the appeal is allowed.
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1990 (3) TMI 104 - ITAT BOMBAY-E
Business Loss, Sale Proceeds ... ... ... ... ..... of course, was fair enough to point out that the assessee face the prospect of being saddled with a liability for penalty for importing goods under a forged document. On these facts, we would make the following order (i) The claim of the assessee for deduction during the year should be restricted to Rs. 19,20,237 subject to verification of the account of the limited company, viz., M/s. Madura Coats Ltd. For ascertainment of the exact amount of sale proceeds realised on sale of imported goods (ii) Any reduction in the liability in this behalf consequent to the outcome of the litigation would be assessable at usual rate as provided under section 41(1) and (iii) Any future liability on account of penalty, if any, etc., which may arise to the assessee on the outcome of the litigation would be admissible on examination of the case on merits in the year in which such liability arises. 10. Subject to the above remarks, this appeal by the department will be treated as allowed in part
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1990 (3) TMI 103 - ITAT BOMBAY-D
Orders Prejudicial To Interests, Rule 1BB ... ... ... ... ..... )(b)(iiia), it is up to 15 of investment in land and building. In these circumstances, the CWT was justified in holding that the municipal value of the entire building at Rs. 1,68,080 which was only 1.09 per cent, was too low and, it should be taken on the basis of the standard rent determined under the Bombay Rent Control Act. 13. As regards the computation of standard rent, the CWT had directed to adopt the net return of 6 per cent on land and 9 per cent on the cost of construction. On this point, we leave it open to the assessees to bring necessary material on record justifying a lower rate in the fresh proceedings taken up pursuant to section 25(2) order of CWT and direct the WTO to afford adequate opportunity of being heard to the assessees and to consider the material brought on record justifying the lower standard rent to be adopted as gross maintainable rent. 14. With the aforesaid directions, all the appeals shall be treated as partly allowed for statistical purposes
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1990 (3) TMI 102 - ITAT BOMBAY-C
Advance Tax, Appellate Assistant Commissioner, Appellate Orders, Orders Passed, Regular Assessment, Tax Deducted At Source
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1990 (3) TMI 101 - ITAT BOMBAY-B
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... ... ..... perty allotted to him on partition cannot also be deemed to be property of the individual. On the facts stated above, neither of the provisions, namely, s. 64(2) (C) of the IT Act and s. 4(1A) (c) of the WT Act, come into operation in the present case after partition of the converted asset . This being the only decision on the point under the WT Act, we have to follow the same in preference to the decision of the Tribunal. Respectfully following the aforesaid decision and in view of what we have stated above, we hold that no part of the property would be includible in the assessment of the assessee either under cl. (b) because after the partition the property did not belong to the HUF, or under cl. (c) because the property received no partition belonged to the smaller HUF of the assessee. 13. The other dispute regarding valuation becomes redundant in view of our finding above. We, therefore, express on opinion with respect thereto. 14. In the result, the appeals are allowed.
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1990 (3) TMI 100 - ITAT BOMBAY-A
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... ... ..... Development Rebate Reserve of . . Asst.yr.1976-77 reversed on capletion of eight years) . . Total 11,22,031.83 11,22,031.83 It was thus allocated to the persons, who constituted the firm in the year 1976-77 and in the ratio they had in that year. These two factors, in our opinion, clearly establish that the parties intended that they had interest in the development rebate as per the sharing ratio of the year of creation of the development rebate reserve. At that time, the assessee was not a partner and, therefore, she had no right therein and that is why she was not given any share therein at the time of transferring the development rebate reserve, to the individual accounts of the partners. On the aforesaid facts and circumstances of the case, we confirm the orders of the CWT(A) in holding that no part of the development rebate reserve was assessable in the hands of the assessee as she was not a partner and had no interest therein. 6. In the result, the appeal is dismissed.
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1990 (3) TMI 99 - ITAT ALLAHABAD-B
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... ... ..... nder consideration, there being no case of the Department that either there was a change in the constitution of the firm in the accounting period or that the Form No. 12 was filed late. This registration could have been cancelled by the Revenue only after having recourse to the procedure laid down under s. 186 of the IT Act, 1961. Admittedly, the Revenue has not resorted to this procedure. Therefore, the order of the ITO is not in accordance with law and as such the learned CIT(A) should have reversed it and he patently erred in not doing so. In as much as, the order of the learned CIT(A) is wrong we set it aside. The result is that registration which already stood granted to the assessee firm in earlier years would continue for the year under consideration also. It will however, be open to the Revenue to initiate action in terms of s. 186(1) of the IT Act, 1961, if it is otherwise permissible in law. 12. For statistical purposes, we will treat the present appeal as allowed.
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1990 (3) TMI 98 - ITAT ALLAHABAD-A
Business Income, Business Premises, Central Excise, Penalty Proceedings, Set Off ... ... ... ... ..... , in the business of gold ornaments, but the initial investment nonetheless remained unexplained. The aforesaid unexplained investment is deemed to be assessee s income by the statute in view of the provision of section 69 of the IT Act, 1961. This investment, having been concealed by the assessee, was clearly an item of income different from the assessee s income under the head business and as such it will have to be said of this item that it represented concealed income of the assessee other than business income. While computing the tax sought to be evaded with reference to this item, Explanation 4 to section 271(1)(c) will be clearly applicable and the CIT (Appeals) was, therefore, concealed income with reference to which penalty ought to be imposed in accordance with law taking into account the provisions of Explanation 4 to section 271(1)(c) of the IT Act, 1961 into account. We accordingly uphold this part of his order. 18. In the result, the appeal stands partly allowed
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1990 (3) TMI 97 - ITAT AHMEDABAD-C
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... ... ..... es of the Tribunal from time to time have applied different multipliers. For instance, the Tribunal, Ahmedabad Bench in the case of WTO vs. Manibhen Jainsingbhai adopted the rate of capitalisation at 8.33 times while in various other cases the multiplier of 10, 11 or 12.5 times have been taken. The legislature in its wisdom has now provided in the aforesaid rules relating to valuation contained in Sch. III a definite multiplier and a definite way of computing the net maintainable rent for valuation of immovable properties according to rental method and we find no reason not to apply that formula for valuation of the property in question. 7.7 We, therefore, set aside the orders passed by the CWT(A) and restore this matter back to the WTO for determining the value of the aforesaid immovable property in accordance with the new rules relating to valuation contained in Sch. III of the WT Act, 1957. 8. In the result all these appeals are treated as allowed for statistical purpose.
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1990 (3) TMI 96 - ITAT AHMEDABAD-C
Business Expenditure ... ... ... ... ..... e mere inability of the assessee society to explain as to how that amount was arrived at cannot convert the nature of these payments, which is nothing but an additional purchase price into distribution of profits. The determination of percentages must be left to the wisdom of the Board of Directors and merely because the mechanics for arriving at that figure was not furnished, no adverse view can be taken against the assessee society. Even if the percentages adopted were such as to keep the profits at a pre-determined level, still the nature of the payment does not get converted into distribution of profits. The lone instance relied upon by the Income-tax Officer, in my opinion, does not advance the case of the Revenue. In this context the past practice adopted by the assessee society and approved by the department over a period of years cannot be jettisoned as irrelevant. 15. The matter will now go before the regular bench for deciding the case according to majority opinion.
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1990 (3) TMI 95 - ITAT AHMEDABAD-B
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... ... ..... any or if at all, over the shares of the beneficiaries was totally removed. Admittedly the settlor died on 4th Sept., 1967 and after his death his share, what was there in the trust property/income in the behalf, came to be added to the specific shares of his 5 daughters. The beneficiaries as well as their shares were quite known and determined and, therefore, the trust was required to be treated as a specific trust as had been done in the past and in the subsequent years. The claim of the appellant for deduction of aggregate market value of the interest of beneficiaries at Rs. 7,43,270 was thus required to be accepted. 11. In the result this appeal succeeds and is hereby allowed. The order under appeal is set aside and the WTO is directed to allow deduction of Rs. 7,43,270 being the aggregate market value of the interest of the beneficiaries as also deduction of Rs. 1,50,000 from the bank balance of Rs. 1,55,000 as exemption under s. 5(1)(xxiii) of the Act to the assessee.
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1990 (3) TMI 94 - ITAT AHMEDABAD-B
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... ... ..... le income for the immediately four preceding assessment years and which cover those assessments which have been completed prior to the date on which the first instalment was due viz., 15th June, 1978 as also the assessment for which the return was filed and self-assessment tax was required to be paid. The decision of the Bombay High Court is a direct authority on the subject under consideration. 8.1 Even on the merits of the case we are satisfied with the explanation tendered inasmuch as this was the year in which the undertaking of the company passed on to the Gujarat Electricity Board and the quantum of compensation was in a fluid state. This becomes apparently clear from the assessment order itself where the ITO had subjected to tax only a part of the amount whereas in a subsequent order passed under s. 154 the same had been hiked up to a substantial figure. On both these scores we are satisfied that no penalty is exigible. The same is cancelled. 9. The appeal is allowed.
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1990 (3) TMI 93 - ITAT AHMEDABAD-B
Lease Rent, Previous Year, Revenue Expenditure ... ... ... ... ..... t involved in these cases. As has been discussed above, in view the expressed provision of sec. 21(1) and 21(2), the WTO could make and in fact he did make direct assessments on the beneficiaries. While doing so, he was not justified in restricting the benefit of exemption u/s. 5(1)(iv) to the extent of respondents share in one house property only. If one goes by the analogy adopted by the WTO that no single property of the trust can be said to be exclusively belonging to a particular beneficiary, then on the same analogy it shall have to be accepted that the value of the interest of the beneficiary in all the house properties of the trust would qualify for exemption u/s. 5(1)(iv) in the case of beneficiary. 8. To sum up we are satisfied that the learned AAC has decided the issue in these cases rightly and in accordance with well settled proposition of law. We, therefore, find no force in these appeals and dismiss them as such. 9. Both the sets of appeals are hereby dismissed
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1990 (3) TMI 92 - ITAT AHMEDABAD-B
Assessment Order ... ... ... ... ..... as observed that in the instant case, the finding is that the assessment order alleged to have been passed by the ITO, Calcutta, was got passed in other words, the order of the Calcutta ITO has been found to be suspicious and collusive. This is a finding of fact. If that be so, it was an invalid order . (Page 140 of the report.) Therefore it was the first order which was found to be suspicious and collusive . The High Court has held it to be invalid. Since the first order was invalid the second could be passed. Therefore in this case the second order was invalid. The AAC was wrong in setting aside the first order. The second order as stated above, is non est. The AAC has not decided the grounds of appeal before him. Therefore the matter is restored back to him to decide those grounds according to law. 7. The second ground in this appeal is that the AAC ought to have upheld the order of the ITO. Therefore the result is that the appeal is partly allowed for statistical purposes
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1990 (3) TMI 91 - SUPREME COURT
Whether the Central Excises and Salt Act, 1944 stood extended to and was in force in the State of Mizoram?
Held that:- On a consideration of the matter, we are of the view that the question whether the interlocutory order in the suit was overborne by this Court's order dated 29-4-1988 or not was not a matter of concern in the writ petition in the High Court and that, that question would require to be considered in the forum before it was sought to be raised. It is quite possible that the order dated 29-4-1988 had the effect of neutralising the order in the suit. It was not necessary for the High Court to have gone into that question as it is not for us to do that here either. The observations of the High Court in paragraphs 10 and 11 of its judgment excerpted above were therefore unnecessary for the purposes of the case before it. The High Court came to the conclusion that the Act stood extended to and remained operative in the State of Mizoram. That was sufficient to dispose of the controversy before it. We, accordingly, delete the said observations in paragraphs 10 and 11 form the judgment of the High Court.
The certificate dated 7th August, 1987, issued by the Commissioner of Excise and Taxes, Government of Mizoram, Aizawl, it is hardly necessary to emphasise, would not survive after the judgment of the High Court was rendered. The observation of the High Curt in para 8 of its judgment implying that matter had to be clarified only in the suit is wholly erroneous. Accordingly, the observations of the High Court in para 8 of the judgment are also deleted.
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