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Case Laws
Showing 41 to 60 of 89 Records
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1977 (9) TMI 50 - ITAT GWALIOR
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... ... ..... have his case re-assessed and also paid tax even before the re-assessment, there is good reason to hold that there was no dishonest intention. Learned counsel for the CST argued that there was no question of any confusion in regard to tax liability in supply of ballast, and appellant obviously came forward for the re-assessment because the ITO had already taken this supply into consideration for the assessment of the dealer. But this argument appears to be far-fetched. It is true that the ITO had taken income of the business in ballast into consideration. But this income can also be derived from job work and in any case, there is no doubt that the assessing authority initiated the proceedings only after an application was made by the dealer and tax had been deposited by him. The circumstances of the case are, therefore, clearly such as would not call for imposition of penalty under s. 19(1) of the Act. 4. The appeal is allowed. Penalty under s. 19(1) of the Act is set aside.
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1977 (9) TMI 49 - ITAT GAUHATI
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... ... ..... ific section imposing penalty for an attempt at concealment of income. The provisions of s. 271(1)(c) are designed to punish only actual concealment of income. Without specific statutory provisions, penalty cannot be imposed for an attempt to concealment the income. It is of interest to note that even the offence of making a false statement in any declaration is separately dealt with under s. 277 as a matter for prosecution and the wording of that section excludes bonafide mistakes. Even the chapter Offence and prosecution does not include the attempt at concealment of income as a punishable offence. We are therefore, of the considered opinion that the filing of the revised return can at best amount to an attempt to conceal the income which, however, it not punish-able under the Act. This contention of the Revenue is, therefore, rejected. 12. In the circumstances the penalty imposed in this case cannot be sustained and it is, accordingly, cancelled. 13. The appeal is allowed.
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1977 (9) TMI 48 - ITAT DELHI-B
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... ... ..... s correct in directing that the share-income falling to be assessed in the hands of the HUF should to excluded from the assessments of the assessee-individual here. This contention of the Revenue is, therefore, rejected. 10. The legal contention remains. The question is whether s. 64 can be invoked in such a case as this so as to include Amarjit Kaur s share of profits in the hands of the assessee-individual here. I find Shri Chopra s reliance on the Full Bench decision is well-placed. The issue stands decided by the Full Bench of the Tribunal in favour of the assessee. Following the reasoning and conclusions recorded by the Full Bench, it is held that the AAC was correct in directing that the share of profits of the wife should be excluded from the assessments of the assessee here. 11. It was common ground that the issues in appeal and the contentions for both the parties were the same for all the assessment years in appeal here. 12. In the result, the appeals are dismissed.
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1977 (9) TMI 47 - ITAT DELHI-B
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... ... ..... rn the correct income did not arise from any fraud or wilful neglect of the assessee where the total income returned was less than 80 per cent of the total income assessed. A similar view was taken by the Allahabad High Court in CIT vs. Brij Ratan Lal Bhup Kishore (ITR No. 628 of 1972, decided on 20-9-76). Further the provisions of s. 271(1)(c) read with Explanation thereto also applied to the case where assessment had been made ex-parte on merit under s. 144 of the IT Act (see Addl. CIT vs. Swatantra Confectionary Works. We, however, find that the income considered by the IAC for calculating the penalty was Rs. 68,602. This stands reduced to s. 41,609. The item calling for penalty is, however, Rs. 25,000 only which is the only item of concealment found by us. The penalty has thus to be calculated on the basis of this figure. We therefore restrict the penalty to the minimum leviable with reference to the item of Rs. 25,000 only. 5. In the result, the appeal is partly allowed.
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1977 (9) TMI 46 - ITAT DELHI
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... ... ..... d any evidence that the spare parts of motor vehicles, the Department would be justified in treating the assessee as manufacturer of spare motor parts and assessing his turnover at the rate of 10 per cent. This decision also does not help the dealer. 19. Taking into consideration all the facts and circumstances of the case, I find no sufficient ground to interfere with the decision of the authorities below. It appears to me that although the dealer had himself been treating and holding that the sale of fuel injection equipment/components were liable to be taxed at 10 per cent, he toyed with the idea that he can get the advantage of reduced rate of tax if the equipment, he was dealing with is somehow, held to be part of the diesel engine as was held by the Hon ble High Court of Allahabad in Aggarwal Brother s case dealing with a particular type of diesel engines and not with the fuel injection equipment. These appeals have, therefore, no force. They are accordingly dismissed.
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1977 (9) TMI 45 - ITAT COCHIN
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... ... ..... t be treated as income accrued. The monies received are merely advance payments and the income embedded therein can be found only after the collection statement has been received. 13. So we find that there was no case for concealment of income at all. 14. We need not under these circumstances consider the alternative argument i.e. the income returned by the assessee was much more than the income on which he was assessed. Even if we were to consider it, we have to agree with the assessee that there was in effect no concealment of income had the assessee been assessed under s. 143(1) he would have paid more tax then the amount on which he was finally taxed. 15. The reliance by the Department on India Sea Food case is irrelevant. In that case the assessee had claimed a loss whereas on assessment there was a profit. So, in effect, there was an addition made. Here, there is no addition made at all. 16. On these points, we hold that no penalty can be levied. The appeal is allowed.
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1977 (9) TMI 44 - ITAT BOMBAY-D
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... ... ..... e provication or the intention of the re-assessment proceedings and re-assessment orders in the case of the ITO, all clearly show that the assessments were re-opened on the ground that the provisions of s. 64 were applicable and no other count. This contention raised by Shri Tamhane is not acceptable to us. 14. For the reasons stated above we find that it cannot be said that the assessee had not disclosed fully and truly all material facts necessary for his assessments for the three years in question and that it was by virtue of the omission or the failure of the assessee to do so that the alleged income of the assessee escaped assessment. Therefore we hold that the reassessments were without jurisdiction and cancel them. 15. As indicated earlier, it is not necessary to pronounce an opinion on the other points raised on behalf of the assessee since, the appeals have to be allowed by virtue of our decision on the above mentioned preliminary point. 16. The appeals are allowed.
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1977 (9) TMI 43 - ITAT BOMBAY-B
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... ... ..... year. The last payments made by the other two creditors were in the immediately preceding year. Apart from the ipsi dixit of the assessee, there is nothing else to show that even on enquiries made by it through its employees and on reports received by it from its brokers and its agents it had abundant reasons to be convinced in this year that the further amounts due from the four creditors were not longer recoverable. The assessee s learned Representative frankly conceded that there is no documentary evidence in the nature of the enquiry reports or informations in support of what is thus stated before us. In matters of this kind, it is for the assessee to establish before making a claim of bad debts that they became bad and irrecoverable at some time during the accounting period. In the absence of such proof, the claim cannot be sustained. We hence confirm the order of the ITO and set aside the order of the AAC on this point. 7. In the result, the appeal is allowed in part.
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1977 (9) TMI 42 - ITAT BOMBAY-A
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... ... ..... aken as a different end product than a raw skin. in conclusion we held that the activities of the two firms constituted then as industrial undertakings. 7. However, the question as to how much was the value of the interest of the assessee in the assets, forming part of the industrial undertakings of the two firms which are exempt under cl. (xxxii) of s. 5(1) of the Act requires to be gone into. The capital of the assessee as standing in the books of the two firms cannot be taken as such as representing the value of the said interest of the assessee in the two firms. We would accordingly set aside the order of the AAC for the two years and send the matters back to him with the direction to determine the value of the assessee s such interest in the two firms in the respective years and to allow exemption only with regard the amounts so determined in accordance with law after affording the two sides an opportunity of being heard. The appeals are allowed for statistical purposes.
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1977 (9) TMI 41 - BOMBAY HIGH COURT
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... ... ..... ed on the general observations relied on by Shri Joshi, without due consideration to the tests outlined by the Supreme Court in certain rulings in respect of sales in the course of export. 49. The position which, therefore, emerges is as follows. In the light of the various considerations discussed above, it follows that the sale in question is a sale in the course of export. It is, therefore, not a sale within the State of Maharashtra and is not liable to tax on that basis. It, therefore, follows that the finding of the Dy. Commr. in his order, to the effect that the sale is a sale within the State of Maharashtra and liable to tax accordingly is wrong and has to be set aside. 50. The appeal, therefore, succeeds and is hereby allowed. The order of the Dy. Commr. to the effect that the sale is a sale within the State of Maharashtra and liable to tax accordingly is hereby set aside. It is held that it is not a sale within the State of Maharashtra and liable to tax accordingly.
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1977 (9) TMI 40 - ITAT AMRITSAR
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... ... ..... on in business in the asst. yr. 1971-72. In the next following asst. yr. 1972-73, there was a loss of Rs. 1,863. The business was, ultimately closed after the asst. yr. 1973-74. One of the partners was also murdered in the year 1974. From these circumstances, it is well established that the attention of the partners was diverted from the business and that was not well managed. We, therefore, hold that the assessee has succeeded in establishing that it was prevented by a reasonable cause from filing the return on the due date. There is well established law that the levy of penalty under s. 271(1)(a) is not a mere concomitant of a delay in filing the return. Having regard to the circumstances pointed out by the assessee s counsel, we are fully satisfied that the submission of the return was delayed due to the fact that there was distraction from the business in the year under consideration. We, therefore, cancel the penalty. 4. In the result, the appeal succeeds and is allowed.
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1977 (9) TMI 39 - HIGH COURT OF JUDICATURE ANDHRA PRADESH AT HYDERAB
Cotton fabrics ... ... ... ... ..... 19, referred to supra. The High Court of Bombay in Punjab B. and S. Company Private Ltd. v. State of Maharashtra, (1979) 39 S.T.C. 386 had expressed an identical view that merely because cloth is sold in pieces and not in the form of takas or bales manufactured by the mills it does not cease to be manufactured cloth or cotton fabrics. Therefore, although rags and chindies are pieces of irregular shapes and sizes, it cannot be said that they are not manufactured cloth. Rags and chindies also do not cease to be manufactured cloth, merely because the purchaser put them to use as raw material for making paper or paper products.... - The fact that the rags in question are meant for the paper-mills makes no difference so long as they come within the meaning of cotton fabrics as defined in Item 19 of the First Schedule to the Central Excises and Salt Act. 4. We, therefore, set aside the impugned orders and allow these tax revision cases with costs. Advocate s fee Rs. 200/- in each.
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1977 (9) TMI 37 - JUDICATURE ANDHRA PRADESH AT HYDERABAD
Taxing Statute - Interpretation - Fertilizer - Valuation - Equalised freight and associate charges - Selling agent's commission
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1977 (9) TMI 36 - HIGH COURT OF DELHI
Lost or destroyed - Connotation of ... ... ... ... ..... urpose Section 23 applies and there is no valid reason for drawing a distinction that the duty liable to be remitted if the goods are after the payments of the duty and before their actual clearance, lost or destroyed in any other manner excepting their theft. Theft of the goods in the said circumstances cannot stand on a different footing. It is, therefore, reasonable to hold that the expression lost or destroyed is used in the generic and comprehensive sense and includes within it the case of loss to the party by pilferage. In this view of the matter, the claim of the petitioner must succeed and the contention of Mr. Nanda is rejected. 14. 8195 As a result, the writ petition is allowed and the impugned orders of the Central Government are set aside and the respondents are directed to consider the claim preferred by the petitioner afresh in the light of the rule of law laid down In this judgment. In the circumstances of the case, the parties are left to bear their own costs.
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1977 (9) TMI 35 - GOVERNMENT OF INDIA
Gases - Wet Chlorine Gas - Classification - Compression - Connotation of ... ... ... ... ..... e the wet chlorine in question will attack steel pipes or metal containers if stored as such. Government have decided that sniff gas is not considered to be falling within the ambit of Item 14H of the CET as stood at the relevant time. In the light of the law laid down by the Supreme Court in the DCM case, the Wet chlorine in quest.on does not fulfil the requirements of being goods within the meaning of Section 3 ibid. The very fact that the Department had to work out the quantity of chlorine on the basis of Hydrochloric Acid produced and converting the wet chlorine on the basis of an arithmetical formula goes to prove the inherent difficulty holding the gas under consideration excisable under Item 14H. 12. In view of the reasons set out above Government observe that the wet chlorine under consideration is neither compressed chlorine as understood in technology nor is such as is or can be bought and sold in the market. In the circumstances the review proceedings are dropped.
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1977 (9) TMI 34 - KERALA HIGH COURT
Agricultural Land, Income Tax, Wealth Tax, Whether Allowable Deduction ... ... ... ... ..... Tribunal. We do not wish to foreclose any possible investigation that might be necessary in regard to this aspect of the matter. We, therefore, answer the question of law as follows The wealth-tax paid by the assessee on his agricultural lands is an allowable deduction under section 5(j) of the Kerala Agricultural Income-tax Act, 1950, provided the expenditure was wholly and exclusively incurred for the purpose of deriving agricultural income. Whether the expenditure was so incurred or not, is a matter to be found by the Tribunal for which purpose the Tribunal will take back the Agricultural Income-tax Appeal No. 243 of 1974 to its file and proceed to dispose of it in accordance with law. We answer the question of law to the extent indicated, in favour of the assessee and against the department. No costs. A copy of this judgment under the seal of this court and the signature of the Registrar will be sent to the Agricultural Income-tax Appellate Tribunal, as required by law.
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1977 (9) TMI 33 - KERALA HIGH COURT
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... ... ..... the department and against the assessee. In respect, however, of the following items in the said paragraph, viz. 1. Interest on Government securities, 2. Dividends, and 3. Interest received (gross), we direct the Tribunal to take back the Appeals Nos. 231 and 232/Cochin/ 73-74, to its file and proceed to investigate the question in the light of the observations contained herein and proceed to enter its finding thereon in accordance with law. We, answer the question referred against the assessee and in favour of the department to the extent indicated above. There will be no order as to costs. I.T.Rs. Nos. 51 and 52 of 1975. In the light of the answer that we have given to the question of law referred in I.T.Rs. Nos. 78 and 79 of 1977, the question of law referred in I.T.Rs. Nos., 51 and 52 of 1975 has become academic and there is no need to answer the same. We accordingly, decline to answer the question of law referred in these two income-tax references. No order as to costs.
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1977 (9) TMI 32 - KERALA HIGH COURT
Law Applicable ... ... ... ... ..... as to the incorrectness of the firm s assessment was made after the terminus a quo above mentioned. (The learned judge, to whose views the court gave its anxious and respectful consideration is Hidayatullah J. and the reference was to the views expressed by the learned judge in an earlier pronouncement of the Supreme Court in Habibullah s case 1962 44 ITR 809 (SC)). It appears to us that the principle of the above decision bears similarity to the point that we have to tackle in this reference. That principle was affirmed and re-stated in the later decision of the Supreme Court in Commissioner of Income-tax v. K. S. Rashid 1972 85 ITR 118 (SC). Both on the construction of the section and in the light of the principle of the judicial decisions noticed supra, we are of the opinion that the view taken by the Tribunal was correct. We answer the question of law referred in the affirmative, that is, in favour of the assessee and against the department. We make no order as to costs.
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1977 (9) TMI 31 - PUNJAB AND HARYANA HIGH COURT
Mercantile System ... ... ... ... ..... m of accounting, it cannot be said that income from interest had actually accrued to it on October 31, 1970. Mr. Awasthy then relied upon Commissioner of Income-tax v. Dr. Sham Lal Narula 1972 84 ITR 625 (Punj), for the proposition that where the rate of interest is specified, it must be deemed to accrue at the end of the year. That case is also distinguishable. Because the assessee in that case had been paid accumulated interest on the amount awarded by the Land Acquisition Collector as compensation to him, and the Division Bench clearly observed that the interest on the compensation amount was paid to the assessee in order to compensate for the loss of income which would have accrued to him year after year. The analogy of that case cannot be extended to the case of a loan advanced under an oral agreement. For the reasons mentioned above, we answer the question in favour of the assessee-company and against the revenue. The parties are, however, left to bear their own costs.
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1977 (9) TMI 30 - BOMBAY HIGH COURT
Mercantile System ... ... ... ... ..... ur opinion, not of much importance. If the liability arises then a claim can be made bona fide at any stage before higher authority, who is competent to grant relief. In the present case such a claim was made before the Appellate Assistant Commisioner but was negatived by him. If the liability is arising pursuant to a demand made by a department of the Central Government, it would be improper on the part of the taxing authority to reagitate the same matter and contend that since no claim for deduction was made before the Income-tax Officer, it cannot be made later on before either the Appellate Assistant Commissioner or the Tribunal when the matter is under investigation by these authorities in assessment proceedings. Thus, in our opinion, the Tribunal was right in taking the view that the assessee was entitled to a deduction. The question referred to us is accordingly answered in the affirmative and in favour of the assessee. The revenue shall pay the costs of the assessee.
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