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Case Laws
Showing 41 to 60 of 109 Records
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1977 (10) TMI 73 - ITAT MADRAS-D
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... ... ..... uish between the phraseology used in ss. 38(2) and 10(3) therefore does not have any effect. in view of what I have expressed above I agree with the opinion of the Judicial Member that the disallowances made by the lower authorities are correct and the assessee would not be entitled to deduction of Rs.1,050,Rs.1,765 and Rs.2,077 respectively for the Asst.yr.s 1973-74,1974-75 and 1975-76. 6. It was sought to be contended before me that even though the car has been used by the Directors for purposes other than business, it would nevertheless be deductible because so far as the company was concerned the asset was allowed to be used only for the purpose of business. In my opinion the scope of question referred to me would not extend to the point now raised before me and hence I cannot give consideration to this contention. However, it is open to the Bench to consider admission of the said contention and decide the matter. 7. In the result the question is answered in the negative.
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1977 (10) TMI 72 - ITAT MADRAS-D
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... ... ..... vision was in existence. The main division, we are told, has been borrowing money from outside even earlier for its own business. If that be so and if there are no fresh or more borrowings from outside on the day the new undertaking was started, it cannot, as a matter of fact, be stated that the money borrowed from outside has been utilised in the new undertaking. It is even possible to find out as a mater of fact whether the assessee rsquo s own money has been utilised in the new undertaking or a portion of the borrowed capital has been diverted to it. Since there is not finding on this, the facts not having been investigated, it cannot be stated that any borrowed money has even as a matter of certainty been diverted to the new undertaking. Normally we would have sent the case back to the ITO to find out whether any portion of the money has been diverted to the radiator division. Since we have allowed the assessee rsquo s appeal on the legal question, this is not being done.
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1977 (10) TMI 69 - ITAT MADRAS
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... ... ..... towards clearing expenses, transportation, labour charges, the assessee rsquo s commission etc. The bill however did not show the exact commission to which the assessee was entitled. There also the contention on behalf of the Department was not specified and hence it was not a case where the assessee acted as agents of the importers. However, the High Court held that the contract construed as a whole, would not amount to a contract of sale by the assessee to M.R. and Co., and it was a transaction of agency not liable to tax under the Bombay ST Act. We, therefore, find that the decision in 39 STC p. 212 cannot properly be distinguished from the facts of the present case. 10. The sales involving the disputed turnovers in these two appeals are only sales occasioning the import of the goods and consequently are sales in the course of import not liable to tax under the Act. The assessments on that turnovers are therefore set aside. 11. In the result, both the appeals are allowed.
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1977 (10) TMI 67 - ITAT MADHYA PRADESH
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... ... ..... e first year in which the objection was taken was in respect of the calender year, 1963, but the assessment was done some time in 1969. Now, a certain practice may be wrong, but it would certainly show that there was no dishonest intention. Secondly, we cannot ignore the fact that appellant has been paying a very large amount of tax. The total tax for the year under the State and Central Acts came to Rs. 2,18,000. There was also no concealment. All sales as per accounts were shown in the returns. Only purchases from unregistered dealers were not shown therein. But this was due to the practice of sorting out these purchases at the time of assessment. When all purchases are duly shown in accounts and the dealer is paying tax to the extent of rupees two lakhs during the year with the returns, it would not be reasonable to infer that be acted dishonestly in not showing a small purchase turnover in the returns. 4. The appeal is allowed. Penalty under s. 43 of the Act is set aside.
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1977 (10) TMI 65 - ITAT JAIPUR
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... ... ..... te for the concerned assessment year. Since the firm had ceased to exist on the said valuation date, the deposits in question had escaped the assessee rsquo s notice. (iii) Tax effect of the assets not disclosed in the original returns was nominal. It is stated to be as follows (a) Svs. Shivduttrai Lila Rs. 144 (b) Kashiram Lila Rs. 75 (c) Murlidhar Lila Rs. 110 (d) Smt. Gorjadevi Lila Rs. 50 A plausible explanation has been given that for avoiding these paltry amounts of tax, one would not run the risk of inviting penalties under s. 18(1)(c) of substantial amounts. (iv) It has been stated that all these persons were almost illiterate persons and were very aged. The affairs were looked after by their Munim and hence the said omissions had occurred. (v) No material has been placed on record to show that the omissions were made with knowledge and intent. Mere omission to show certain items of assets, however serious, could not be the basis for levy of penalty under s. 18(1)(c).
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1977 (10) TMI 64 - ITAT JAIPUR
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... ... ..... it was pointed out that for the delay of filing the return, the causes were the same which were given in the extension applications. 8. For the aforesaid facts it is clear that assessee was aware about his obligation to file the return. The explanation given by the assessee was accepted by the ITO upto 30th Sept., 1973. For the delay of 2 months, the same explanation was given by the assessee. Thus, there were reasonable cause which prevented the assessee from filing the return in time. The learned ITO or the AAC gave no finding that assessee in conscious disregard of his obligation failed to file the return in time. There is also no finding of the authorities below that the delay was contumacious or dishonest. Thus, we are of the view that there were reasonable causes which prevented the assessee from filing the return in time. Thus, the learned AAC erred in sustaining the order of penalty. 9. In the result, the appeal is allowed. The impugned order of penalty is cancelled.
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1977 (10) TMI 63 - ITAT JAIPUR
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... ... ..... inference that the assessee had deliberately shown a lower estimate in order to avoid levy of wealth-tax. We do not think that on the basis of the material on record any mala fide could be ascribed to the assessee. We find moreover that the authorities below themselves have dropped the proceedings under s. 18(1)(a) which had been initiated by the WTO for these very assessment years. We agree with the learned AAC that the assessee did labour under bona fide belief that for all these assessment years, his net wealth was below the taxable limit and as such he was not required to file the wealth-tax returns under s. 14(1) of the WT Act. We uphold the orders of the AAC. 6. Having taken the view that the penalties were rightly quashed by the learned AAC we do not consider it necessary to go into the assessee rsquo s obligation that the wealth-tax appeals were not in proper form. 7. In the result the Departmental appeals fail and the assessee rsquo s cross objections stand allowed.
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1977 (10) TMI 62 - ITAT JAIPUR
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... ... ..... as such are allowable deductions. 7. On half of the Department the finding of the learned AAC was supported. The learned Departmental Representative also relied on the decision in the case of CIT vs. Veeriah Reddiar 1976 CTR (Kar) (FB) 341 (1977) 106 ITR 610 (Ker) (FB). Thus it was contended that the expenses in question are in the nature of entertainment. 8. The Tribunal after considering the aforesaid contention agreed with the finding of the learned AAC. Annexure-C is the copy of the order of the Tribunal forming part of the statement of the case. 9. On the facts stated above, we refer the following question for opinion of the Hon rsquo ble High Court Whether on the facts and in the circumstances of the case, the expenditure in question was in the nature of entertainment expenditure in law? 10. The copies of the Draft Statement of the case was circulated among the parties inviting their suggestions, if any. No suggestions were made. Accordingly the statement is finalised.
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1977 (10) TMI 61 - ITAT HYDERABAD-B
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... ... ..... essee. Again, there is a finding in the order of the Addl. CIT that the original order of the ITO is invalid and there is also direction to the ITO to make a fresh assessment. Further from the fact that there is no time-limit provided to the CIT to dispose of the petition to him has to be made within the time prescribed similar to there being no time-limit to be appellate authorities to pass the orders and further in s. 153(3)(ii) the reassessment or recomputation is made on the assessee or any person in consequence to or to give effect to any finding or discretion contained in such orders are saved from time-limit. Similarly saving of s. 264 also finds in s. 153(3)(ii). Therefore, there is finding as well as a direction in this case it is open to the ITO to proceed under s. 153(3) which lifts the bar of limitation even though the period of limitation has expired. In the right of what I have expressed above, I am of the view that the order of the Judicial Member should stand.
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1977 (10) TMI 60 - ITAT GWALIOR
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... ... ..... and to adduce evidence in his defence. The assessing authority has to conduct a searching enquiry into these transactions and give a specific finding regarding each transaction a after consideration of all the evidence available. As regards railway collation forms, it would be necessary to conduct an enquiry to decide whether these have any relation to the business of appellant. It may be observed in this connection that if certain transactions entered in the Hundi accounts as well as railway collection forms, stand in the name of persons other than appellant or his Representative, the normal inference should be that they do not relate to appellant rsquo s business, and strong evidence is necessary to hold that the transactions really relate to appellant rsquo s business. 8. The appeals are, therefore, partly allowed. The order of the Addl. CST is set aside and the case is remanded to the assessing authority for further enquiry as directed above and disposal according to law.
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1977 (10) TMI 59 - ITAT GAUHATI
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... ... ..... ther as a gift-deed it contained any limitation upon the interest transferred to the sons. 12. Taking all the circumstances into consideration we find that the property was impressed with the character of joint family property before the partition dt. 19th April, 1960 and consequently the property received by the assessee was on behalf of his joint family of which he was the karta and that property as well as the income therefrom could be assessed only in the status of an HUF. The assessment are, therefore, directed to be made in the status of HUF with regard to this property. 13. As regards the claims of the assessee that the business was also built up with the income earned from the property received on partition, there is scarcely any evidence. Therefore, the authorities below were right in rejecting that claim. We, accordingly, confirm the assessment of the business and the income therefrom in the status of an individual. 14. In the result, the appeals are partly allowed.
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1977 (10) TMI 58 - ITAT GAUHATI
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... ... ..... , however, what was corrected was only a typographical error in the date of execution not at all affecting the conditions of the partnership agreement. Such a correction could be made with retrospective effect and was in fact to affirm that the original partnership deed thus corrected was in force in the corrected from during the previous year relevant to this assessment year. The assessee had brought to our notice the decision of the Patna High Court in the case of Shri Ram Mills 95 ITR 279 (Pat) where it was held that a mere mistake in the recital of the deed of execution would not make a partnership deed invalid. 9. We are, therefore, of the opinion that there being no evidence to contradict the claim of the assessee that the firm was genuine and there being no infirmity in the document which was corrected with retrospective effect, the AAC was right in directing the ITO to grant registration to the assessee. We, accordingly, confirm his order. 10. The appeal is dismissed.
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1977 (10) TMI 57 - ITAT DELHI-D
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... ... ..... e family every year through the books of Chandra Textiles. In the accounting year for the asst. yr. 1976-77 against through his account in the books of the said firm Khacheru Mal fully paid back the loan of Rs. 41,853 to the assessee family. As per cl. 9 of the partnership deed dt.16th Dec., 1970of the said firm it was clearly the Khacheru Mal had jointed the partnership in his individual capacity. It was also clarified by Shri Monga that there was no clause in the partnership deed requiring contribution of capital to any particular extent. Thus, the circumstances of the case go to show clearly that the order of the AAC rests on a strong foundation. I decline to interfere. C.O. No. 108(Del) of 1977-78, In ITA No. 821 of 1977-78, (Asst. yr. 1973-74) 5. Shri Monga submitted that the cross objection was only in support of the AAC rsquo s order. Hence this is incompetent and requires to be dismissed as such. 6. In the result, both the appeal and the cross objection are dismissed.
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1977 (10) TMI 56 - ITAT DELHI-A
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... ... ..... e patients and that he did not work the clinic after 2 P.M. and that the machines were lying in tact as mycroscopic tests were not done by him, it cannot be said that the reliefs given by the AAC are not justified. 6. I have heard the submissions of the parties in detail and have gone through the records of the case. I have been three reports of the Inspectors (two before the ITO and one before the AAC). In my opinion the AAC has given valid reasons for scaling down the estimates of income. It is true that the assessee has not maintained proper books of account and hence I agree with the submission of the Departmental Representative that an estimate of assessee rsquo s income has necessarily to be made in this case. The short question however is as to whether the estimate of income as taken by the AAC is correct or not. In my opinion the estimates as taken by the AAC are fair and reasonable and call for no interference. The appeals have no force and are accordingly dismissed.
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1977 (10) TMI 55 - ITAT DELHI-A
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... ... ..... counsel for the assessee Shri H.G. Malik brought to my notice a decision of the Supreme Court in 88 ITR 439 that where the ITO himself proceeds on the basis of s. 147(b) and not on the basis of s. 147(a) it is not open to the appellate authority to justify the proceedings as if they were taken under s. 147(a). The reason is that the formation of the required belief by the ITO and recording his reasons for taking action as also obtaining of sanction if necessary, under s. 151 are all mandatory provisions for taking action under s. 147(a). 7. For the above reasons I am of opinion there is no failure on the part of the assessee to disclose the necessary particulars and therefore the provisions of s. 147(a) had not application and the action taken by the ITO was time barred. I therefore, set aside the assessment made by the ITO. In this view of the matter, I do not wish to discuss the various decided cases cited before me and also on merit. 8. In the result the appeal is allowed.
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1977 (10) TMI 54 - ITAT CUTTACK
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... ... ..... f Rs. 19,505.00. Estimate of the escaped turnover at Rs. 4,46,000, is reasonable and proper. (ii) The assessee was not entitled to exemption of tax according to sl. 56 of the schedule of exempted goods. (iii) It was entitled to claim concessional rate of tax according to sl. 3-G of the schedule of taxable goods on production of declaration in form E. Reasonable opportunity should be given to the assessee by the assessing officer to produce declarations in form E. (iv) Penalty is reduced to 1 1/2times of the tax to be assessed on Rs. 4,46,000.00. The assessing officer shall make the calculation. 20. For the going reasons, the appeal is allowed in part. Estimate of the escaped turnover at Rs. 4,46,000 is upheld. Penalty is reduced to 1 1/2 times of the tax to be imposed on the above escaped turnover. The case is remanded to the assessing officer for further enquiry and reassessment in the light of observations made above. Excess tax and penalty, if realised, should be refunded.
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1977 (10) TMI 53 - ITAT CUTTACK
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... ... ..... made by the assessee for recovery of the debts and assurance given by the debors it appears that the debts are established to have become bad during the year in question and the assessee s claim on this point is an allowable-deduction. We accordingly direct that the disallowance of the sum of Rs. 7,281 under the head bad Debts should be deleted. 6. The assessee had taken an additional ground of appeal that is against disallowance of legal expenses amounting to Rs. 2,869. In the interest of justice we admit this ground. This claim was disallowed by the lower authorities on the ground that the assessee s cloth business was discontinued and, therefore, it was not an admissible-deduction. But we have held that the cloth business had not been discontinued and, accordingly, we have to hold that the claim of the assessee is also an admissible-deduction for the year under appeal when there was no dispute about the genuineness of the expenses. 7. In the result, the appeal is allowed.
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1977 (10) TMI 52 - ITAT CUTTACK
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... ... ..... of each assessee. On appeal, the AAC held that the basic exemption was available to each assessee under the provisions of the Act and so allowed the same to the assessee. Shri S. Misra Contended before us that the AAC was not correct in his decision while Mr. M.J. Swamy, on the other hand, supported the order of the AAC. Having heard the contentions of both the parties, we are of opinion that the AAC is quite correct in his decision. The provisions of the Act regarding the deductions and allowances are to be applied in the case of each assessee who is sought to be taxed under the Act. Hence, the assessee is entitled to the statutory exemption of Rs. 5,000 out of capital gains sought to be assessed in his hands. Hence, we uphold the decision of the AAC on this point also. 8. In the result, the three appeals filed by the two assessee (ITA Nos. 1434 Hyd). 1435 (Hyd) and 1436 (Hyd) of 1976-77) are allowed and the Departmental appeal (ITA No. 1471 (Hyd) of 1976-77) is dismissed.
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1977 (10) TMI 51 - ITAT COCHIN
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... ... ..... the fact that the earlier year s accounts were not yet completed, is a reasonable cause. The Department could take action for penalty in respect of the earlier year. The assessee may be properly penalised but then the earlier year s accounts remaining incomplete is certainly a reasonable cause for the subsequent year s delay. We, therefore, think that in respect of the asst. yr. 1973-74 the delay could be excused till the date of filing of the return for the year 1972-73. Since it makes sometime at least to finalise the accounts, we could give an additional period of two months. Under the circumstances, we are of opinion that the penalty could be levied for the asst. yr. 1973-74 for a period of eight months. 3. On the same token the penalty for the asst. yr. 1974-75 will stand cancelled, there being hardly any delay in filing of the return after the date of filing of the return for 1973-74. 4. In the result, the appeal for 1973-74 is partly allowed and 1974-75 fully allowed.
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1977 (10) TMI 50 - ITAT COCHIN
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... ... ..... ich was in force regarding amortisation as at the beginning of the accounting year should be given effect to and the assessee would be entitled to the amortisation at these rates. For the asst. yr. 1971-72 the claim of Rs. 16.28 lakhs is fully supported by the circular which was in enxistence on 1st April, 1971. So the assessee s claim must be allowed. 3. For the asst. yr. 1973-74, however, different considerations prevail. For this year, rules have been framed and r. 9A governs the allowance. Although there Rules came into force in 1976, if the assessee is agreeable, these, Rules will govern the allowance for the asst. yr. 1973-74 onwards as per sub-r. 9A ii(a)(ii). We think, the matter should be remitted back to the AAC who can dispose of the appeal according to the new rules after obtaining in writing the option of the assessee under this Rule. 4. The Departmental appeal for 1971-72 is dismissed and the appeal for 1973-74 will be treated as allowed for statistical purpose.
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