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Showing 221 to 240 of 266 Records
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1983 (11) TMI 46 - KARNATAKA HIGH COURT
Deduction, Other Sources ... ... ... ... ..... ixed deposits. The assessee failed in her appeal before the AAC and in further appeal before the Tribunal. Being aggrieved by the order of the Tribunal, the assessee has sought this reference on the question referred to above. As could be seen from the order of assessment, under the head Other sources , a sum of Rs. 10,101 was assessed as interest earned on the fixed deposits during the year. That was the interest that accrued to the assessee on her fixed deposits in the bank till the date of termination. The deduction of the excess interest by the bank was effected on account of the premature termination of the fixed deposits. This, in our opinion, had absolutely no connection with the interest earned by the assessee up to the date of termination. The Tribunal was, therefore, justified in disallowing the claim for deduction of Rs. 47,683 in the assessment of the assessee for the year 1975-76. In the result, we answer the question in the affirmative and against the assessee.
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1983 (11) TMI 45 - MADRAS HIGH COURT
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... ... ..... aging the business by advancing his own fund and if at all, the subsequent successful working of the mill by the lessee will go to his credit and not to the credit to the assessee company so as to enable it to acquire goodwill. Similarly, the successful working of the mills by the purchaser after his purchase, is not also a relevant factor for considering whether the company has acquired any goodwill at the time when it was sold. In this view, we remit the matter back to the Tribunal for deciding the question as to whether the assessee company had in fact any goodwill before the order of winding up was made and whether the goodwill, if any, acquired was lost because of the fact that the mill was being managed by the lessee between 1959 and 1970. In view of the remand order and in view of the fact that we are not in a position to answer the question straightaway on the basis of the order of the Tribunal, the question is returned unanswered. There will be no order as to costs.
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1983 (11) TMI 44 - GUJARAT HIGH COURT
Appeal To Supreme Court ... ... ... ... ..... e made in the exercise of statutory powers were income in the hands of the nominee or the legal representative of the original depositor. Since the position is concluded, we have to answer the question as indicated above. Mr. Patel for the assessee makes an oral application for grant of certificate for appeal to the Supreme Court, since in his submission, this court could not have ruled as it did, particularly in view of the decision of the Supreme Court in CIT v. Hukumchand Mohanlal 1971 82 ITR 624 (SC), and also because this involves a substantial question of law. We are of the opinion that having regard to the fact that the Division Bench of this court has ruled against the assessee in Narottamdas K. Nawab s case 1976 102 ITR 455 Chand s case 1971 82 ITR 624, this matter involves a substantial question of law and, therefore, we grant the certificate that this is a fit case for appeal to the Supreme Court. Oral application is, therefore, allowed with no orders as to costs.
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1983 (11) TMI 43 - KARNATAKA HIGH COURT
Capital Gains, Deduction ... ... ... ... ..... ust fall for deduction under s. 48. But, if the same sum is already the subject-matter of deduction under other heads like those under s. 57, we cannot understand how it could find a place again for the purpose of computation under s. 48. No assessee under the scheme of the I.T. Act could be allowed deduction of the same amount twice over. We are firmly of the opinion that if an amount is already allowed under s. 57 while computing the income of the assessee, the same cannot be allowed as deduction for the purpose of computing the capital gains under s. 48. The statement of law thus being made clear, it is not possible to answer the question one way or the other, since there is no finding recorded by the Tribunal in regard to the contention raised by the Department that it would amount to double deduction. We, therefore, decline to answer the question for want of a required finding and remit the matter to the Tribunal for fresh disposal in the light of the observations made.
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1983 (11) TMI 42 - BOMBAY HIGH COURT
Transfer Of Case ... ... ... ... ..... ved on any of the petitioners and the petitioners in all these three petitions had not engaged or authorised Shri D. C. Jain to appear on their behalf. The respondents are unable to produce before me the acknowledgments of notices served on the petitioners or any record to indicate that Shri D. C. Jain had an, authority to represent the petitioners. In these circumstances, the contention of the petitioners that they were denied reasonable opportunity of being heard before the passing of the impugned order is required to be upheld and the impugned order is required to be set aside as far as the petitioners in these three petitions are concerned. It is open to the Central Board of Direct Taxes to pass fresh orders, if so advised, under s. 127(1) of the I.T. Act, 1961, after service of proper notice. Accordingly, rule in each of the petitions is made absolute in terms of prayer (a). In the circumstances of the case, there will be no order as to costs in all the three petitions.
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1983 (11) TMI 41 - MADRAS HIGH COURT
Horse Racing, Income ... ... ... ... ..... de in the Act, for him to approach the ITO, at the end of the year, by submitting proper returns of income, to get back any excess amount paid. Originally, the petitioner has filed the writ petition for the issue of mandamus forbearing the respondents from deducting or collecting income-tax at source and in view of the fact that deduction had already been made, the petitioner was allowed to convert the petition into one for certiorarified mandamus. In view of the clear position in law, and so long as the provisions are not challenged, it is not possible to give any relief to the petitioner as prayed for. As the petitioner very much relies on the judgment of this court in Janab A. Syed Jalal Sahib v. CIT 1960 39 ITR 660 which, as explained above, cannot be relied upon, in view of the subsequent amendment introduced in the Act, the contentions of the petitioner cannot be accepted. In the result, the writ petition fails and is dismissed. But, there will be no order as to costs.
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1983 (11) TMI 40 - KARNATAKA HIGH COURT
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... ... ..... a safeguard for the assessee when he objects to the proposed assessment. When the objection is filed, the ITO is required to take the assistance of the IAC and he should be guided also by his directions while completing the assessment. The IAC is required to, peruse the entire record and he should issue such direction as would enable the ITO to complete the assessment. Such directions may be either beneficial to the assessee or prejudicial and in the latter event further opportunity of being heard shall be afforded to the assessee. It seems to us, therefore, that s. 144B(4) contains the procedure for completing an assessment and it cannot have the effect of invalidating the assessment when not complied with. The Tribunal, therefore, was justified in directing the ITO to redo the assessment after following the procedure prescribed under s. 144B(4) of the Act. In the result, we answer the question in the affirmative and against the assessee. There will be no order as to costs.
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1983 (11) TMI 39 - KARNATAKA HIGH COURT
Firm, Registration ... ... ... ... ..... we have held that if the deficiency of the stamp duty is made good it shall relate back to the date of the execution of the document. The Tribunal, therefore, was justified in stating that the instrument was duly stamped when the Deputy Commissioner certified that the deficiency was made good on April 22, 1978. As to the second ground above referred to, suffice it to state that it is well settled law that two or three documents may be read together for the purpose of determining whether a partnership existed as between the partners. It is true that the shares are not specifically mentioned in the partnership deed dated September 29, 1972. But in the absence of any such specification, the Tribunal was justified in holding that the partners had equal shares. There is, in our opinion, no infirmity or illegality in granting registration for the assessment year 1973-74 and continuation for 1974-75. In the result, we answer the question in the affirmative and against the Revenue.
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1983 (11) TMI 38 - MADRAS HIGH COURT
Claiming Allowance, Developement Rebate ... ... ... ... ..... e assessee, however, refers to the decision of the Bombay High Court in CIT v. Caltex Oil Refineries (India) Ltd. 1979 119 ITR 216 and of the Karnataka High Court in International Instruments (P) Ltd. v. CIT 1980 123 ITR 11. It is no doubt true that these decisions proceed on the basis that the creation of a development rebate in the earlier year will be taken as a basis for the claim for development rebate in the succeeding year. But, in our view, those decisions have not kept in view the conditions set out in s. 34(3)(a). However, having regard to the view taken by this court on the interpretation of s. 34(3)(a) and also of the Supreme Court in Indian Overseas Bank Ltd. v. CIT 1970 77 ITR 512, we cannot accept the said decisions referred to by the learned counsel for the assessee as laying down the correct legal position. We have, therefore, to answer the question in the negative and against the assessee. The Revenue will get costs from the assessee. Counsel s fee Rs. 500.
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1983 (11) TMI 37 - GUJARAT HIGH COURT
Cash, Wealth Tax ... ... ... ... ..... her words, even in respect of cash asset lying in foreign country, it is open to the assessee to prove the valuation by leading proper evidence in that behalf. In that view of the matter, therefore, we are of the opinion that the amount lying in fixed deposit in the Chartered Bank, Colombo, in the assessee s account cannot be said to be cash, because in the first place, it was not ready money available for the use of the assessee, and in any view of the matter, because certain restrictive covenants were attached to the said fixed deposit account which was frozen under the foreign exchange regulations in force for the time being prescribed by the Government of Ceylon and, therefore, inclusion of the said amount in the valuation of the assets of the assessee will have to be deleted. We, therefore, answer the question referred to us In the affirmative, i.e., in favour of the assessee and against the Revenue. The Commissioner shall pay the costs of this reference to the assessee.
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1983 (11) TMI 36 - KARNATAKA HIGH COURT
Deduction From Profits And Gains, New Industrial Undertaking ... ... ... ... ..... ayable irrespective of the profit or loss cannot be termed as profit. Secondly, the 8th partner is also not entitled to share the assets and liabilities upon dissolution of the firm. Section 184 of the I.T. Act requires that the partnership should be evidenced by an instrument and the individual shares of the partners should be specified in the instrument. The instrument in this case does not specify the share of the 8th partner except the payment liable to be made to him by way of salary at the rate of Rs. 400 per month. By reading the original instrument along with the deed of rectification, it seems to us that there is no relationship of partners as between Sri T. Raghavendra Rao and the other seven partners. In the view that we have taken, it is unnecessary to refer to the decisions cited by Sri Bhat, counsel for the assessee. In the result, we answer the question in the affirmative and against the assessee. In the circumstances of the case, we make no order as to costs.
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1983 (11) TMI 35 - KARNATAKA HIGH COURT
Deduction From Profits And Gains, New Industrial Undertaking ... ... ... ... ..... uot; (2) This section applies to any industrial undertaking which fulfils all the following conditions, namely ............. (iv) it employs ten or more workers in a manufacturing process carried on with the aid of power, or employs twenty or more workers in a manufacturing process carried on without the aid of power. " To understand the above provisions, no canon of construction is called for. The wordings are unambiguous. It provides that " if the assessee employs ten or more workers... " In the absence of any definition of the word " worker ", the court has to take its ordinary meaning which may mean casual, permanent or temporary. There is, therefore, no reason why the word " worker " shall not include all these three categories. The Tribunal was, therefore, justified in reversing the view taken by the Commissioner of Income-tax (Appeals) and also the ITO. In the result, we answer the question in the affirmative and against the Revenue.
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1983 (11) TMI 34 - MADRAS HIGH COURT
Delay In Filing Return ... ... ... ... ..... ollowing the view taken by this court consistently, we have to answer the question in the affirmative and against the Revenue. Having regard to the conflicting decisions on the point in question, the learned counsel for the Revenue makes an oral application for grant of leave to appeal to the Supreme Court against the decision just now rendered. The learned counsel for the Revenue also brings to our notice that there is a direct reference by the Tribunal to the Supreme Court under s. 257 on this point and the said reference is pending before the Supreme Court. In view of the fact that there is a conflicting opinion between the various High Courts on the question involved in this case and in view of the fact that the question has already been referred to, and the same is pending before, the Supreme Court, we grant leave to the Revenue to appeal to the Supreme Court against our pronouncement just now made. The assessee will get its costs from the Revenue. Counsel s fee Rs. 500.
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1983 (11) TMI 33 - BOMBAY HIGH COURT
Donation For Charitable Purposes, Exemptions, Society For Educational Purposes ... ... ... ... ..... hich have followed with respect, are clear on the point that the presumption is not available at the initial stage. Shri Joshi relied upon the decision of the Delhi High Court in Mahavir Metal Works P. Ltd. v. Union of India 1974 95 ITR 197 (Delhi), but in my judgment, this decision would not assist the learned counsel in claiming that the presumption under sub-s. (2) is available even at the initial stage while initiating the proceedings. In my judgment, on the facts and circumstances of the case, it is clear that the initiation of the proceedings by the competent authority was clearly without jurisdiction and the same is required to be quashed. In view of this conclusion, it is not necessary to consider the claim of the petitioners about the validity of the provisions of Chapter XX-A of the Act. Accordingly, the petition succeeds and the rule is made absolute in terms of prayer (a-1) of the petition only. In the circumstances of the case, there will be no order as to costs.
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1983 (11) TMI 32 - MADRAS HIGH COURT
Donation For Charitable Purposes, Exemptions, Society For Educational Purposes ... ... ... ... ..... of the Act. Accordingly, the common questions referred to us in T.Cs. Nos. 405 to 407 of 1978 are answered in the affirmative and against the Revenue. There will be no order as to costs in any of these tax cases. The learned counsel for the Revenue makes an oral application for leave to appeal to the Supreme Court against our answer in T.Cs. Nos. 595 and 596 of 1978. It is seen that leave to appeal to the Supreme Court has been granted against the decision in Addl. CIT v. Aditanar Educational Institution 1979 118 ITR 235, which we have followed here, in S.C.P. No. 214 of 1979 by order dated April 19, 1979 and in S.C.P. No. 315 of 1979 by order dated April 27, 1979. As we have followed the decision referred to above in T.Cs. Nos. 595 and 596 of 1978 and as leave has been granted against the said judgment, we have to grant leave in these cases also. We, therefore, grant leave to appeal to the Supreme Court against the judgment rendered by us in T.Cs. Nos. 595 and 596 of 1978.
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1983 (11) TMI 31 - MADRAS HIGH COURT
Business Expenditure, Interest On Borrowed Capital ... ... ... ... ..... nts have been debited with interest at 6 per cent. on their borrowing from the firm. But, admittedly, the firm has been paying interest at 91 per cent. to the banks on its borrowing. Therefore, while determining the quantum of disallowance under the head Interest paid on the borrowings , on the ground that it had been spent for non-business purposes, the interest at the rate of 9 1/2 per cent. on its borrowing alone should be taken into account, and the interest at 6 paid by the partners on their loan to the firm cannot at all be taken into account. Therefore, we are of the view that the Tribunal is not correct in holding that the interest at 6 per cent. alone should be calculated for the purpose of disallowance of the interest paid on the borrowed amounts as against 9 1/2 per cent. actually paid by the firm on its borrowing. In this view of the matter, we have to answer the question referred to us in the negative and against the assessee. There will be no order as to costs.
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1983 (11) TMI 30 - ANDHRA PRADESH HIGH COURT
Business, Income ... ... ... ... ..... e are expected to go strictly by the letter of law and are not to be swayed by considerations, viz., whether the assessee is suffering hardship or that he is getting away with a bonanza. The language of the enactment is the guide to its intention and in view of the well-established proposition that subsidy given to an undertaking to assist or improve its business constitutes income of such an under taking, we have no other option but to hold that the amount concerned herein does constitute income in the hands of the assessee for the relevant assessment year and has to be assessed as such. The question referred to us is, accordingly, answered in the following terms On the facts and in the circumstances of the case, the amount of Rs. 14,655 received by the assessee from the Government of Andhra Pradesh for the relevant accounting period was liable to be included in the total income assessable for the assessment year 1974-75. We answer the reference in favour of the Department.
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1983 (11) TMI 29 - BOMBAY HIGH COURT
Attributable, Tax Credit Certificates ... ... ... ... ..... er. It is obvious that the order under challenge which makes a departure from the earlier view is clearly illegal and the petitioners are entitled to the relief and are entitled to the grant of necessary tax credit certificate for the assessment years 1967-68 and 1970-71. It is not in dispute that there is no other impediment in the way of the petitioner to the grant of this certificate. Accordingly, the petition succeeds and the rule is made absolute, and while upholding the finding of the Commissioner of Income-tax that the manufacture and production of ferro manganese falls under Item 1A(2) of the First Schedule to the Industries (Development and Regulation) Act, 1951, the ultimate order of rejecting the appeal is set aside and the respondents are directed to grant the necessary tax credit certificate for the assessment years 1967-68 and 1970-71 to the petitioner within a period of four weeks from today. In the circumstances of the case, there will be no order as to costs.
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1983 (11) TMI 28 - MADHYA PRADESH HIGH COURT
Delay In Filing Return, Legal Representative, Penalty, Wealth Tax ... ... ... ... ..... defines an assessee, also includes the legal representative. But on that basis, in the present case, the respondent, considering the facts and circumstances of the case, cannot be held liable for payment of any penalty under s. 18(1)(a) of the Act as this is not a case where the original assessee had died before the expiry of the date for submitting his wealth-tax return so that after the death of the assessee, the legal representative becomes the assessee, who should have filed the return before the expiry of that date on which the original assessee had to submit his wealth-tax return. In the result, our answer to the question referred to us is that, on the facts and circumstances of the case, the Tribunal was right in law in holding that penalty proceedings under s. 18(1)(a) of the W.T. Act could not be initiated against the legal heirs. The reference is, therefore, answered in favour of the legal heir, namely, the respondent, and against the Department. Costs as incurred.
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1983 (11) TMI 27 - MADHYA PRADESH HIGH COURT
Business Expenditure ... ... ... ... ..... not genuine or was excessive, etc. On the contrary, the Department had admitted the said position. The karta, Shri Nandkishore, is an experienced person in the business run by the firm and, therefore, the payment of salary to the karta was for business expediency. In these circumstances, we are of the opinion that the salary paid to Shri Nandkishore was an expenditure laid out wholly and exclusively for the purpose of the business of the family and must be held as an allowable deduction. It may also be pointed out here that substantially the same question came up for consideration before another Division Bench of this court in CIT v. Prakashchandra Agrawal (M.C.C. No. 105 of 1980 dated 22-3-1982 1985 151 ITR 14 , in which it was held that it was a permissible deduction from the income of the assessee-family. We, therefore, answer the question referred to above in the negative in favour of the assessee and against the Department. There will, however, be no order as to costs.
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