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Showing 81 to 100 of 136 Records
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1985 (6) TMI 56 - ITAT CALCUTTA-C
Assessment Year, Previous Year ... ... ... ... ..... ate mentioned in the Table is available even though the machinery is used for any length of time during the previous year. So, the assessee was entitled to full depreciation at the rate mentioned in the Table under rule 5(1). The ITO had no authority to reduce the said depreciation allowance to one-fourth. For this reason also, this condition imposed by the letter dated 20-12-1977 is invalid. Though the assessee complied with this invalid condition, the said fact does not validate the imposition of an invalid condition by the ITO and the assessee cannot be precluded from challenging the validity of the said condition. So we do not think that the assessee is estopped from challenging the validity of this condition imposed by the letter dated 20-12-1977. In such circumstances, it cannot be said that the order of the Commissioner (Appeals) is incorrect. We, therefore, decline to interfere with the impugned order which is hereby confirmed. 7. As a result, the appeal is dismissed.
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1985 (6) TMI 55 - ITAT BOMBAY-E
Charitable Or Religious Trust, Exemption Of Income From Property Held Under ... ... ... ... ..... income derived from such property held under trust is within the compass of section 11 as it does not involve the carrying on of any activity for profit. Reversing the finding of the Commissioner (Appeals) in this behalf, we answer the second question in favour of the assessee. 18. To gain absolute exemption, the application of the income has to be examined to know whether the entire income is applied for charitable purposes or any portion in excess of the percentage fixed in sub-clause (a) is allowed to be accumulated or set apart. This requires factual verification which the ITO has not done since the income was thought to be outside the scope of section 11. We, therefore, direct the ITO to examine the application of the funds from the provisions of section 11(1)(a) and to give the assessee such relief as it would be entitled, in each year, in the circumstances with this direction, we dispose of point No. 2. 19. In the result, the appeals by the assessee are partly allowed.
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1985 (6) TMI 54 - ITAT BOMBAY-D
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... ... ..... any rate, there is no illegality about it, for what is sought to be achieved, is tax relief in future wealth-tax assessments. The joint family has many other assets also and the marginal rate of tax at the time of gift was 8 per cent., therefore, the continuance of the interest in the corpus of Trust Fund would have been more burdensome and to get some relief the gifts were made in favour of an investment company belonging to the family group. Neither the assignments could be soundly attacked on moral grounds. 24. For the foregoing, we hold that the beneficiary was competent to transfer/gift the beneficial interest in the corpus of the Trust Fund and such a transfer made by Shashikant B. Garware, as Karta of the HUF, was valid and that the Revenue has no right to challenge the same in these wealth-tax assessments. The conclusion reached by the first appellate authority is unassailable and the same is affirmed by us. 25. These appeals, therefore, fail and they are dismissed.
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1985 (6) TMI 53 - ITAT BOMBAY-D
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... ... ..... t in holding that the interest was deductible under s. 57 against its income from other sources. In this case also loans were obtained for purchasing shares with the object of acquiring the controlling interest in the company concerned. It was held, that, thought the ultimate or ulterior motive of the assessee might have been to acquire controlling interest, the immediate purpose was to earn income form the dividends. The other decision relied upon by the assessee are distinguishable on facts and, therefore, we do not propose to refer to them in detail. Suffice it to say, that the immediate object of the company in acquiring the shares was with a view to earning the dividends, that the shares would ultimately yield once the company is put on a sound basis. All the other considerations, according to us are incidental or coincidental. We respectfully following the decision in (1980) 122 ITR 767 (Cal) uphold the order of the CIT (A) and dismiss the appeal filed by the assessee.
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1985 (6) TMI 52 - ITAT BOMBAY-D
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... ... ..... igh Court in Nav Bharat Vanijya Ltd. vs. CIT (1980) 123 ITR 865 (Cal) has come to a similar finding. No doubt, the Madras High Court in Addl. CIT. vs. Madras Motors and General Insurance Co. Ltd. (1979) 117 ITR 354 (Mad) has taken a different view in this regard. With great respect, we follow the Karnataka and Calcutta High Court s decisions in this respect. Accordingly, we confirm the view taken by the ITO as well as the CIT (A) with regard to the exclusion of the cost of the investments from the capital base. 8. As regards the alternative contention, we agree with the ld. Representative for the assessee inasmuch as, the debentures of ICICI do mot partake of the character of the items mentioned in cl. (vi) or (viii) of r. 1 of the First Schedule. As such, we are of the opinion, that the cost of investments should be taken as reduced by sum of Rs. 4,61,500 for purposes of arriving at the capital base under the Seconds Schedule. 9. In the result the appeal is allowed in part.
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1985 (6) TMI 51 - ITAT BOMBAY-D
Appeal To AAC, Condition Of Delay In Filing ... ... ... ... ..... know of the receipt of the demand notice and the assessment order by his former accountant on 27-9-1983, he arranged for the filing of the appeal to the Commissioner (Appeals) on 31-12-1983. There is no material or circumstance which would indicate that the facts stated by the managing director of the appellant-company are untrue or improbable. Having regard to these facts, we consider that these facts would constitute sufficient cause for the delay of 63 days in the filing of the appeal in the present case before the Commissioner (Appeals). We, therefore, hold that the decision of the Commissioner (Appeals) refusing to condone the delay is incorrect. We, therefore, condone this delay and admit the appeal and restore the appeal to the file of the Commissioner (Appeals) for disposal on merits, after giving an opportunity to the appellant to substantiate its case. 8. In the result, the appeal is allowed. 9. In view of above order, the stay petition is dismissed as infructuous.
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1985 (6) TMI 50 - ITAT BOMBAY-D
Charge Of Tax ... ... ... ... ..... ate, there is no illegality about it, for what is sought to be achieved is tax relief in future wealth-tax assessments. The joint family has many other assets also and the marginal rate of tax at the time of gift was 8 per cent and, therefore, the continuance of the interest in the corpus of trust fund would have been more burdensome and to get some relief the gifts were made in favour of an investment company belonging to the family group. Neither the assignments could be soundly attacked on moral grounds. 24. For the foregoing, we hold that the beneficiary was competent to transfer/gift the beneficial interest in the corpus of the trust fund and such a transfer made by Shashikant B. Garware, as the karta of the HUF, was valid and that the revenue has no right to challenge the same in these wealth-tax assessments. The conclusion reached by the first appellate authority is unassailable and the same is affirmed by us. 25. These appeals, therefore, fail, and they are dismissed.
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1985 (6) TMI 49 - ITAT BOMBAY-D
Exemption, Gift On Marriage Of Relative ... ... ... ... ..... occasion of daughter s marriage or such other auspicious occasions, particularly where the subject of the gift is movable property, which can be gifted by mere delivery of possession. It would be too much to say that immediately after the marriage ceremonies proper, the girl ceases to be dependent on her parents even while the subsequent ceremonies are still going on and she has not left along with her husband, her parents house. Considering all these and, looking to the totality of the facts and circumstances, we have no hesitation in coming to the conclusion that on the gift made by the assessee of gold ornaments to his daughter on the day following the marriage of the value of Rs. 14,872, the exemption of Rs. 10,000 as laid down under section 5(1)(vii) was available. Since after this exemption the value of the gift is less than the basic exemption of Rs. 5,000, the gift-tax assessment has to be cancelled. 6. The appeal filed by the assessee succeeds and is hereby allowed.
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1985 (6) TMI 48 - ITAT BOMBAY-D
Assessment Year, Previous Year ... ... ... ... ..... p. 904) The Calcutta High Court in Nav Bharat Vanijya Ltd. s case has come to a similar finding. No doubt, the Madras High Court in Madras Motor and General Insurance Co. Ltd. s case has taken a different view in this regard. With great respect, we follow the Karnataka and the Calcutta High Courts decisions in this respect. Accordingly, we confirm the view taken by the ITO as well as the Commissioner (Appeals) with regard to the exclusion of the cost of the investments from the capital base. 8. As regards the alternative contention, we agree with the learned representative for the assessee, inasmuch as the debentures of ICICI do not partake of the character of the items mentioned in clause (iii) or (vi) or (viii) of rule 1 of the First Schedule. As such, we are of the opinion that the cost of investments should be taken as reduced by the sum of Rs. 4,61,500 for purposes of arriving at the capital base under the Second Schedule. 9. In the result, the appeal is allowed in part.
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1985 (6) TMI 47 - ITAT BOMBAY-C
Business Income ... ... ... ... ..... on it is mentioned that local reputation cannot be said to be a judicial basis in assessment proceeding. We have not relied on local reputation but on the statements of the assessee, materials found during search and statement of Mr. Cunnanan as corroborated by other circumstances. The other two cases were cited in support of the proposition that particular income must be proved to have been earned during the relevant accounting year. We have come to the conclusion that both the assessees had indulged in smuggling activity in the relevant accounting year. One of them had made trips to Bangkok. From materials on record we have come to the conclusion that the income of each of the assessees from smuggling activities in the relevant accounting year must have been not less than Rs. 50,000. This estimate, according to our opinion, is fair and reasonable. Consequently, the above decisions are of not any assistance to the assessees. In the result, the appeals fail and are dismissed.
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1985 (6) TMI 46 - ITAT BOMBAY-C
Bonus Shares, Capital Gains ... ... ... ... ..... present case. 23. For the reasons discussed above, we are unable to accept the contentions of the learned counsel for the appellants that no capital gains can arise on the sale of bonus shares by the two appellants. There is no dispute before us about the correctness of the amount of capital gains computed by the ITO, who has accepted the computation made by the appellants as correct. We, therefore, confirm the orders of the Commissioner (Appeals) on this point in both the appeals. 24. In the result, IT Appeal No. 5544 (Bom.) of 1983 filed by Rohiniben Trust is dismissed, Ground Nos. 1 and 2 in IT Appeal No. 594 (Bom.) of 1983 filed by Podar Organisation (P.) Ltd. are rejected. FINAL ORDER OF THE SPECIAL BENCH The order of the Special Bench by majority, thus, is that the shares in question are capital assets, the surplus on the sale of which is liable to be taxed under the head Capital gains . 2. In the result, the appeal in IT Appeal No. 5544 (Bom.) of 1983 stands dismissed.
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1985 (6) TMI 45 - ITAT BOMBAY-B
Valuation Of Assets, Immovable Property, Valuation Officer ... ... ... ... ..... rged in the present case is that the assessee s valuer returned a much lower figure than what the appellate authorities upheld for the earlier years. In our view, if this really led to a suspicion about the inaccuracy of the value returned, the only course left to the WTO was to resort to section 16A. No layman can substitute his arbitrary valuation for the technical valuation given by an expert. This unfortunately the WTO did not do. One way of correcting this would be to direct acceptance of the expert valuation produced by the assessee since that stands unchallenged. In view, however, of the tortuous route this case has taken with a valuation made in 1979 and another in 1985 though not one for the relevant assessment year and other factors, we do not direct the WTO to do so. On the contrary, we direct that the value of this property be worked out on the rent capitalisation method and on the basis of rule 1BB. 24. The appeals are dismissed. The cross-objections are allowed.
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1985 (6) TMI 44 - ITAT BOMBAY-B
Capital Or Revenue Expenditure, Retirement Of Partner ... ... ... ... ..... partner to the goodwill of the appellant-firm would be nil, because he was a partner only for a short period of eight months and that what has been provided for in the deed of retirement is only a bounty or boon granted by the continuing partners in favour of the retiring partner. These arguments of the revenue ignore the terms of the documents, which we have quoted above and also their legal effect. Further, these arguments overlook the valuable rights which the retiring partner had acquired when he joined the appellant-firm on 1-11-1978 and which valuable rights were not separately evaluated and credited to his account on the date of his retirement. We, therefore, respectfully follow the decision of the Supreme Court in the case of Devidas Vithaldas and Co. and of the Bombay High Court in the case of C.N. Patuck and hold that the assessee is entitled to the deduction of this amount paid to the retiring partner in these two years. 21. In the result, the appeals are allowed.
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1985 (6) TMI 43 - ITAT AMRITSAR
Assessment Year, In Part, Partnership Firm, Share Income ... ... ... ... ..... in that it was to derecognise partial partitions after 31-12-1978. 7. In view of the above discussion, we hold that the ITO was justified in applying the provisions of section 171(9) for the assessment year 1980-81. So far as the assessment year 1979-80 is concerned, that section cannot be invoked but as noted above, we are informed by the assessee s counsel that there was no dispute about the inclusion of the income from the firm in that assessment year. The ITO consequently on this footing is justified in holding as per clause (b) of sub-section (9) of section 171 that the HUF previously assessed shall continue to be liable to be assessed under the Act as if no partial partition had taken place for the next assessment year. 8. In view of the above discussion the appeal of the revenue, for the assessment year 1979-80 becomes infructuous calling for no relief in view of the admission made on behalf of the assessee while the appeal for the assessment year 1980-81 gets allowed.
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1985 (6) TMI 42 - ITAT ALLAHABAD-A
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... ... ..... lth of the firm. Where a firm owns a house and a partner resides in a portion of the house, the exemption provided by s. 5(1)(iv) should be taken into consideration in determining the net wealth of the firm. This authority, in our opinion is on all fours in this case. The authorities relied upon by the Revenue are no doubt against the assessee. But in view of the ratio in the case of R. Gopal Ramnarayan vs. Third ITO (1980) 126 ITR 360 (Kar), we are inclined to follow the decision of their Lordships of Patna High Court in the case of Nandlal Jalan. Respectfully following the said decision of their Lordships of Patna High Court, we hold that the AAC was perfectly justified in holding that the assessee is entitled for deduction under s. 5(1)(iv) of the WT Act on the property held by the firm for tannery and residential purposes. He rightly directed the WTO to allow the relief as per law. We accordingly uphold the finding of the AAC. 6. In the result, the appeals are dismissed.
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1985 (6) TMI 41 - ITAT AHMEDABAD-A
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... ... ..... . To the extent as above the consolidated order of the CIT (Appeals) shall be treated as modified and the ITO is directed to pass the appropriate orders in accordance with law. 16. In the result, both the appeals are allowed in part. K. R. DIXIT, J.M. I agree with the decision of my ld. brother. However, on the question of Excise liability I would like to add a few words to make my view clear. Sec. 43B applies to a case where Excise duty remains to be paid. The applicability depends only on the fact that the duty remains to be paid on or after 1st April 1984 when the section came into effect. It has nothing to do with the year in which the liability was incurred. Therefore, no question of retrospective effect of the said section arises in this case. The application of the section is mandatory if the liability remain to be discharged on or after 1st April 1984. Therefore, the assessee can get the deduction only in respect of previous year in which the liability is discharged.
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1985 (6) TMI 40 - ITAT AHMEDABAD-A
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... ... ..... a borrowing by the assessee or an expenditure in the nature of discount for discounting the usance bills rolling out finance earlier than the date of maturity of the bills. 7.3 In respect of guest house expenses the amount was already disallowed by the assessee itself and the same is also disallowed by the ITO by committing a mistake adverse to the assessee and, therefore, does not require any verification. 7.4 In respect of details of other expenses as held earlier nothing is found by the CIT for the purpose of disallowance while the ITO has to some extent disallowed part of the sundry expenses and, therefore, there is no necessity to examine the same again. 8. We, therefore, hold that assumption of jurisdiction of CIT under s. 263 was not justified and, therefore, illegal. On merits, the issues are decided in favour of the assessee except relief under s. 80J. We, therefore, set aside the order of the CIT on the basis of illegality. 9. In the result, the appeal is allowed.
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1985 (6) TMI 39 - ITAT AHMEDABAD-A
Transfer Of Property ... ... ... ... ..... f power of appointment, it is the date on which the power of appointment was exercised, which is the material date. Therefore, the valuation has to be done as on that date and not on the date when the trustees by their second resolution made the power effective. Therefore, for the purpose of valuation of the interest of the assessee which has been transferred as indicated above, this matter has been rightly restored to the GTO by the Commissioner. Regarding other assessees the Commissioner s order is modified to the effect that the valuation has to be taken as on the date on which the power of appointment has been exercised by the assessees. In determining the value of the gift in the case of all the assessees, the value of shares should be decided in the light of all the relevant evidence which has been submitted so far and which may be produced by both the parties before the GTO including the aspect of discounting the value of shares. 20. All the appeals are partly allowed.
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1985 (6) TMI 38 - HIGH COURT OF JUDICATURE AT BOMBAY
Set-off of duty - Inputs - Connotation of - Manufactured tobacco ... ... ... ... ..... it F) is set aside and quashed. It is further directed that all reliefs flowing from this order should be granted to the petitioner-company within six months from today. 9. Rule is made absolute in terms aforesaid but, in the circumstances, with no order as to costs. 10. As the bank guarantee given by the company in favour of the Collector also includes the period after coming into force of the amended notification, being Notification No. 105 of 1982, dated 28lh February 1982, the said bank guarantee shall continue to enure for the benefit of the Union of India for the period on and from 28th February 1982 in respect of liability, if any, that may be due from the company to the Union of India on and from 28th February 1982. This bank guarantee shall be kept alive by the company for a period of six months from now in order to enable the excise authorities to consider the position after coming into effect of the aforesaid Notification No. 105 of 1982 dated 28th February, 1982.
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1985 (6) TMI 37 - HIGH COURT OF JUDICATURE AT BOMBAY
Central Excise - Legal and valid - Writ jurisdiction ... ... ... ... ..... llenge to the legality and validity of the impugned notification. The questions involved therein were altogether different from the one in this petition. 5. The impugned notification being legal and valid, the excise authorities will have to consider the petitioners claims and contentions on the applicability or otherwise thereof to the petitioners case. On this aspect, it will be open to the petitioners to contest the matter before the excise authorities on all such grounds as advised. And the said authorities will have to consider and decide the same on merits and in accordance with law. 6. In the result, this petition fails and the same is dismissed. Rule stands discharged but, in the circumstances, with no order as to costs. 7. At the request of the petitioners learned Counsel, interim order passed at the stage of admission will continue to subsist till and inclusive of Monday, 22-7-1985 and will, unless extended or modified by the Appeal Court, stand vacated thereafter.
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