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1954 (8) TMI 44
... ... ... ... ..... iable to pay Income Tax upon the excess sale proceeds of the machinery since it was carrying on the other business of commissioner agency. We must take it, therefore, that the finding of the Appellate Tribunal was that for no part of the accounting year did the assessee carry on the business of rice milling. To put it differently, the finding of the Appellate Income Tax Tribunal must be taken to mean that for no part of the accounting year the machinery of the rice mill was used. Upon this finding of fact, it is clear that....... + More
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1954 (8) TMI 43
... ... ... ... ..... delled. 4. It was contended on behalf of the Commissioner, H. R. E. that the scheme framed by the Board contains the following clause The decree will provide that on application to the Board, (he), or the Court with notice to all parties these rules can be further modified on due and sufficient cause shown. The petitioners, it was said, can utilise the above provisions and apply for the modification of the scheme. No doubt the existence of an alternative remedy will very often dissuade this Court from granting an applicati....... + More
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1954 (8) TMI 42
... ... ... ... ..... g that the same test must be applied in examining whether the quality of the income is agricultural within the meaning of Section 2 (1) (a) of the Act. The dictum of the learned Chief Justice cannot be applied in the context of the present case where the question at issue is of an entirely different character. For the reasons I have assigned I hold that no part of the dividend income of ₹ 36,229 received by the assessee from tea companies is agricultural income within the meaning of Section 2 (1) or is exempt from be....... + More
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1954 (8) TMI 41
... ... ... ... ..... hich had passed the appellate order relating to the first of the two chargeable accounting periods. Nor can I regard it wholly satisfactory that in stating the facts with regard to the third question, the Tribunal should not have explained the apparent want of conformity between the basis on which the Appellate Assistant Commissioner had proceeded and the basis adopted by itself, 11. In the result, we answer the first question in the negative and the second question in the affirmative. With regard to the third question, we....... + More
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1954 (8) TMI 40
... ... ... ... ..... e. This Section is wide enough to give powers to this Court to correct errors for which there is no other provision in the Code and that was the opinion of the Lahore High Court as given in -- 'Raju v. Emperor' AIR 1928 Lah 432 (H). But it is not necessary in this case to invoke the inherent powers of the Court since the revisional powers of the Court are sufficient for giving relief to the petitioner. 18. As I have already held that there was no proper and legal proclamation specifying the period of thirty days or....... + More
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1954 (8) TMI 39
... ... ... ... ..... nistrator or an executor is as much an assessee under the Act as any other individual, and if he carries on business or makes profit or receives dividends or makes capital gains, he is as much liable to pay tax as any other individual. Therefore, there is no force whatever in the contention that the administrator is not liable to pay tax on capital gains because the capital assets were not realised by the testator but by the administrator himself. 13. The third question raised is as to whether the capital gains tax is ultr....... + More
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1954 (8) TMI 38
... ... ... ... ..... that the amendment made in the Indian Income-tax Act, 1922, by Section 2 shall be deemed to be operative so as to apply in relation to all assessments subsequent to the assessment for the year ending on the 31st day of March, 1948. It is manifest that the Dominion Legislature intended that Section 1 (2) should apply to the assessments made subsequent to the assessment year 1947-48 and that Sections 3 to 12 shall apply to the assessment year 1947-48 and subsequent years. If the view that we have expressed is a correct view ....... + More
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1954 (8) TMI 37
... ... ... ... ..... s necessary on imperative to recall the Income Tax Officer, District III(2), to the scene for the purpose of challenging the Appellate Assistant Commissioner's order before the Appellate Tribunal while the transferee Officer appears to have been in charge of the case even before the Appellate Assistant Commissioner. It is true that the former officer had made the assessment order but it can hardly be necessary for purposes of good administration that an officer, making an assessment, should be detained to defend it in ....... + More
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1954 (8) TMI 36
... ... ... ... ..... her utilised for roping in further sums by being taken into account under section 4A(c)( b). It appears to me that the section is content with bringing the amount back to charge and leaving it there. There is no warrant in the language of section 11(14) for the view that an amount of repayment can be treated as income arisen in India and that not only can it be itself taxed, but it can also be utilised for the purpose of determining the residence of a company. In my view, the amount of ₹ 2,31,009 was rightly brought ....... + More
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1954 (8) TMI 35
... ... ... ... ..... s of Parliament. But at the same time it declared in' Section 4 that The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;........ The provisions of this section make it quite clear that although the Act of 1949 has been repealed, the substantive portion of the Act which was incorporated in the Criminal P. C. and which. became a part and parcel of it, continues to remain intact. The Act of 1952 was enacted with the sol....... + More
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1954 (8) TMI 34
... ... ... ... ..... eliminary even to the setting up of a business can bear no comparison with the detailed activities which had taken place in the Bombay case. The other ground on which the assessee relied was that, in any event, the amount in question was a revenue expense, inasmuch as it had been expended for the purpose of guarding or preserving the capital asset of the business. In my view, the Tribunal dealt with that point correctly when it said that expenditure incurred for the purpose of preserving the capital asset of a business cou....... + More
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1954 (8) TMI 33
... ... ... ... ..... ary to refer to cases in which this principle has been clearly laid down as it has been very well recognised. In these circumstances, since the sales tax has been assessed on the company and not on the shareholders, the Collector is entitled to proceed against the assets of the company only and any proceedings taken against the shareholders or their personal assets are void and against law. Consequently, these petitions are allowed and it is hereby ordered that a writ of mandamus be issued to the Collector of Bulandshahr, ....... + More
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1954 (8) TMI 32
... ... ... ... ..... ompetent to the discharge of his office ought to confine himself Wilson v. Rastall 4 T.R. at p. 757. Applying this principle to this case it is manifest that the order of remand made by the Appellate Tribunal is not a legally valid order, and the first question referred to the High Court should be answered in favour of the assessee and against the Income-tax Department. In view of the answer to the first question, we do not consider it necessary to furnish any answer to the other two questions referred by the Income-tax Ap....... + More
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1954 (8) TMI 31
... ... ... ... ..... wn by Lord Haldane in John Smith and Son. v. Moore 1928 12 TC 266 (HL), thus - ............... fixed capital as what the owner turns to profit by keeping it in his own possession, circulating capital as what he makes profit of by parting with it and letting it change masters. Thus the expenditure is revenue expenditure and not capital expenditure. It is a payment incurred wholly for the purpose of business as contemplated in clause (iv) of section 13 of the Travancore Income-tax Act corresponding to section 10(2)(xv) of th....... + More
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1954 (8) TMI 30
... ... ... ... ..... t in this case all the necessary facts are not stated. Therefore, what we have to decide is whether on the facts stated the assessee is entitled to exemption from tax, under the relevant provision of the Income-tax Act, and if we come to the conclusion that the relevant provision of the Income-tax Act is section 4(3)(i) and not section 4(3)(ia), it is open to us to do so under our advisory jurisdiction. Therefore, in our opinion, this is a case which does not fall under section 4(3)(ia) but under section 4(3)(i). In our op....... + More
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1954 (8) TMI 29
... ... ... ... ..... n to decide the questions of law referred can arise, a hearing of the case must take place, because the section opens with the words The High Court upon the hearing of any such case etc. Where the party, who has caused the reference to be made and who is in the position of a plaintiff, fails to appear, no hearing of the case can take place and in my view since the preliminary condition of the sub-section is not satisfied in such a case, the consequent obligation of deciding the questions of law and delivering a judgment do....... + More
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1954 (8) TMI 28
... ... ... ... ..... questions raised before us. Our answer to question (2), which is really the substantial question, is in the negative. With regard to question (1) it is clear that the order, made by the Appellate Assistant Commissioner that the appeal was incompetent was made under section 31. That is the view we have taken in K.K. Porbunderwalla v. Commissioner of Income-tax, Bombay City 1952 21 I.T.R. 63. If the order of the Appellate Assistant Commissioner was made under section 3 then clearly an appeal lay to the Tribunal from that ord....... + More
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1954 (8) TMI 27
... ... ... ... ..... a debt or a loan can be allowed only if and to the extent the Income-tax Officer estimates it to be irrecoverable, it becomes wholly immaterial to enquire for practical purposes of taxation on what basis the assessee may himself make a claim. If the decisive factor be the view taken by the Income-tax Officer, what contentions are urged by the assessee are of no relevancy at all and I cannot see what useful purpose can be served by our answering the question referred. In my view, the question referred is pointless and in vi....... + More
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1954 (8) TMI 26
... ... ... ... ..... ass panes. I answer the second question accordingly. 2.. The decision of this Court was followed by the Board of Revenue in the revision application made before it by the applicant Haji Jamaluddin challenging the levy of the sales tax on him in respect of the sale of bangles. At the instance of the applicant the Board of Revenue has now referred the question already quoted for the decision of this Court. 3.. In our judgment the answer to the question posed must clearly be in the affirmative. The expression glass-ware is wi....... + More
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1954 (8) TMI 25
... ... ... ... ..... now abandoned. The taxing officer has in the absence of proof allowed a reduction of 30 per cent. from the entire bill amount and this does not appear to be either inadequate or unreasonable. On a consideration of the circum- stances, I am of opinion that no case is made out for interference in either of these petitions. Lastly, the learned advocate urged that the fines levied are rather severe. The amounts of taxes in respect of which there was default in payment are Rs. 243-11-3 and Rs. 956-6-3 respectively. The Advocate....... + More