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Showing 41 to 60 of 110 Records
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1978 (10) TMI 75
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... ... ..... to the facts in the case before the Supreme Court. The accumulated share of profits was not converted into deposits or loans. They still remained as accumulations belonging to the minor children who were admitted to the benefits of the partnership and they were simply allowed to be used by the firms. The interest in question was paid by the firms because these funds belonged to the minors who were admitted to the benefits of the partnership and not because of any arrangement or contract with them. The clauses relied upon by the learned counsel for the assessee do not refer to the accumulated profits remained by the respective firms. On the other hand they related to amounts, if any, advanced by the partners having been required for the business of the firms. The accumulated share of profits are not covered by the clauses referred to above and relied upon on behalf of the assessee. We have, therefore, no hesitation in upholding the order of the AAC. The appeals are dismissed.
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1978 (10) TMI 70
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... ... ..... giving another opportunity to the assessee to show cause against the imposition of the imposed penalties which would both involve the actual service of notice under s. 14(2) to him and also proof of facts which he pleaded in reply to the show cause notice. However, quite recently we have an occasion to consider the law relating to remand in ITA No. III(Ind)/77-78, Asst. yr. 1957-58, M/s. Badrilal Bholaram, Indore wherein we have held that now an order imposing penalty would not be within limitation under s. 275 of the IT Act. There are similar provisions in the WT Act contained in sub-s. (5) of s. 18 of the Act and for the detailed reasons mentioned in that order we are of the opinion that an order of imposition of penalties by the WTO at this stage would be bad in law. Consequently, remanding the cases now to the WTO would not be worth-while. 11. In view of the aforesaid discussion, we are of the opinion that the appeals of the assessee be accepted and the penalties deleted.
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1978 (10) TMI 69
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... ... ..... mentioned above. In other words, the WTO has imposed the penalties on that ground only. But s. 18(1)(a) requires existence of cause which the WTO may find to be unreasonable for non-filing of a return by the assessee. It has not been brought out what was the cause and whether such cause was reasonable for non-filing of the Wealth-tax return. However, before the AAC the above contentions stated in the preceding paragraph were raised. It is seen that the assessee s net wealth as per his return for the different years was below Rs. 1 lakh. Of course the WTO estimated at a higher figure. Having regard to the various circumstances of the case, we find that the assessee is entitled to succeed has reason to believe that he is not liable to wealth tax. We find that this cause given before the authorities below for non-filing of the return by the assessee, to be reasonable. We, therefore, cancel the order of the AAC and vacate the penalty order of the WTO. 8. The appeals are allowed.
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1978 (10) TMI 68
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... ... ..... of the income of his wife and minor son is supported by the decision of the Allahabad High Court in the case of Laxmikand Gupta in (1978) CTR (All) page 132. In the light of this discussion, we are unable to hold that the appellant had filed an estimate of advance tax which he knew or had reason to believe to be untrue within the meaning of s. 273(a) of the Act. It is now well settled that the mere fact that there was a variation between the income estimated for purposes of advance tax under s. 212 and the income returned by the appellant, would not attract levy of penalty under s. 273(a) of the Act, as held by Kerala High Court in the case of P.V. Kurien reported in 43 ITR 432. We, therefore, held that there was no justification for levy of penalty under s. 273(a) of the Act in the present case. Accordingly, we cancel the penalty of Rs. 12,650 sustained by the AAC which shall be refunded to the appellant if already collected from him. 5. In the result, the appeal is allowed.
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1978 (10) TMI 67
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... ... ..... t case is similar to that of the case of C.M. Kothari. We, therefore, hold that the provisions of s. 64 (i) (iii) of the IT Act, 1961 were correctly applied in this case. However, s. 64 provides that in computing the total income of the assessee there shall be included all such income as arises directly or indirectly to the spouse or minor children of such assessee. Accordingly we direct the ITO to include the amount of income arising on account of accrued interest to the wife of the assessee on the amount indirectly transferred by him was justified. 10. This leaves us the WT appeal in which the assessee is contesting the inclusion of Rs.15,000 and Rs.30,000 in his net wealth. Since the point at issue in this appeal is consequential to the view that we have taken in the aforementioned IT appeal, we direct the exclusion of Rs.15,000 only from the net wealth as determined by the WTO while we confirm the inclusion of Rs.30,000. 11. In the result, the appeals are partly allowed.
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1978 (10) TMI 66
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... ... ..... t the assessee s case had been fully explained. He deleted the additions. 9. The Department is on appeal before us. We find that the AAC s finding that every credit in the capital account is supported by a corresponding debit in the personal account is by and large correct. However, the personal bank account has number of credits during this accounting year. The assessee should have explained from where these credits had come. While accepting the explanation of the assessee, the AAC ought to have looked into this aspect and found out whether the credits found in the personal bank account are also properly explained. In fairness to the Department, it is necessary to make an investigation and the assessee is bound to explain these credits to the satisfaction of the ITO. For this purpose, we are setting aside this part of the order of the AAC. The assessee would explained the credits found in the personal bank account. 10. For statistical purposes, the appeal is partly allowed.
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1978 (10) TMI 65
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... ... ..... me of hearing of the appeal. This leaves only one other ground for consideration, namely that the AAC was wrong in not allowing the c.c. charges on hire purchases amounting to Rs. 2400. We find that a ground was raised by the assessee before the AAC in respect of this item but it has not been considered and disposed of by him. It is the case of the assessee that the amount in question represents an opening balance in that account which has been brought forward from the year 1971 onwards and that the name amount also appears as closing balance at the end of the year and that there was no justification for treating this amount as income of this year. As the AAC has not considered this ground raised by the assessee, we would remit this ground to the AAC for consideration and disposal in accordance with law. To this extent, the appeal is restored to the file of the AAC for disposal. For statistical purposes, the cross objection filed by the assessee is treated as partly allowed.
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1978 (10) TMI 64
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... ... ..... elay of 4 complete months and the assessee could have filed the return earlier as there was nothing new in the net wealth of the assessee as compared to the earlier years, The penalty is, therefore, justified. 6. We have carefully considered the rival submissions and we find no justification for the imposition of penalty. The assessee had filed the return voluntarily though the return is belated. The net wealth returned by the assessee has been accepted without any interference in it. The assessee s assertion that he cooperated in the completion of the assessment and paid tax properly has not been controverted. The delay is nominal of about 4 months and the submissions of the assessee that he had to collect the particulars regarding his immovable property, the loan account, the value of the shares from the journals, deserve consideration and is considered as reasonable cause for this nominal delay. The penalty is, therefore, cancelled. 7. In the result the appeal is allowed.
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1978 (10) TMI 63
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... ... ..... wance in the assessment of individual partners, the registered firm is not entitled to carry forward the unabsorbed depreciation allowance to the next year and set it off against its business income. Such unabsorbed depreciation allowance is allocated amongst the partners of the firm and when such allocation is made either of business loss or of depreciation allowance, it is the partners who would be entitled to carry forward that loss or depreciation allowance and set it off against their other income. Once an allocation is made, there remains nothing with the firm which is to be carried forward on account of either there being no income or income being insufficient to absorb depreciation allowance. We, therefore, hold that the AAC rightly decided the issue in favour of the assessee and there is no merit in this Revenue s appeal which is dismissed. 6. We have already observed above that there is no relief sought for in the cross objection, which is dismissed as infructuous.
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1978 (10) TMI 62
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... ... ..... The case is examined and the total income is computed as below Net Profit as per P and L A/C. . Rs. 1,211 Less Dividend and Capital gains . Rs. 538 . . Rs. 673 Add Interest to IT Deptt. . Rs. 190 . . Rs. 863 Add Disallowable under. s 40(A) (8) . . Assessee has furnished details of interest paid on unsecured loan. Total interest paid as per details filed comes to 39,505. Amounts disallowable 15 per cent of the above comes to . Rs.13,425 Capital gains . Rs. 38 Other Source . . Dividend Rs. 500 . Less Under. s. 80M Rs. 300 . . Rs. 200 Rs.200 Total Income . Rs. 14,526 Rounded off . Rs. 14,530 Allow credit for tax deducted at source on interest Rs.22,543 and on dividend Rs. 136 Assessed Under. s 143(3) as above. . Sd. . (A.K. Chanda) . ITO I Ward, Comp. Dist. II/Calcutta. Tax Calculation . . IT 65 per cent on Rs. 14,530 Rs. 9,442 SC 5 per cent on Rs. 9,442 Rs. 472 . . Rs. 9,914 . Less TDS Rs.22,679 . Refundable Rs.12,765 . Sd/-(A.K. Chanda) . ITO I Ward, Comp. Dist. II . Calcutta.
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1978 (10) TMI 61
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... ... ..... ions had taken place in the year 1968. It is but natural that businessman may or may not stay at the same place or may or may not carry on business on the same premises. Therefore, it is impossible for the assessee to keep a track of persons with whom it had dealings four years ago. Therefore, simply because the parties could not be served with summons, it does not necessarily mean that the transactions are bogus. Accordingly, we see no justification to sustain the additions of Rs. 4,750, Rs. 2,900 and Rs. 3,472. Accordingly, we direct that an addition of Rs. 3,450 can only be maintained. We partly uphold the order of the AAC, but for the reasons other than those of his. We may further clarify that it is not understood as to how the AAC has restricted the addition to Rs. 2,750 taking 10 per cent of the amount being the difference between the purchase price actually paid and the purchase price indicated in purchases. 16. In the result, the Department appeal is partly allowed.
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1978 (10) TMI 60
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... ... ..... mental in brining about the debit balance of Rs. 20,146. Therefore, even the arguments made use of by the AAC would be of no avail to the Department. The ITO s action also cannot be sustained because the partnership cannot be compelled to charge interest on the debit balance of the partner without sufficient material to support it. In the result, the addition of Rs. 1,800 is deleted. 13. For the Asst. yr. 1974-75, the point involved is that the valuation of the opening stock should be adjusted with reference to the closing stock, should we at all be pleased to uphold the ITO s action for the earlier year. Since we have set aside the assessment order on the issue for the earlier year, we would likewise set aside the AAC s order and the ITO s order for the Asst. yr. 1974-75 as well and direct the ITO to redecide this matter after taking appropriate action for the earlier year. 14. In the result, the appeals for both the years may be treated as allowed for statistical purposes.
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1978 (10) TMI 59
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... ... ..... plication of the Commissioner and it was not suggested by the learned Departmental Representative before us that the Tribunal omitted to take into consideration any specific relevant material or has taken into consideration any irrelevant material. Therefore, we find that the answer to the question is self evident. 16. As regards the second question, the findings of the Tribunal that the method of accounting of the firm is mercantile, that the income if any, is taxable only under the head business and that it accrued sometime before asst. yr. 1973-74 are not only based upon an appreciation of the relevant material, but also not challenged on behalf of the Department. It is well settled that when such is the factual position, the income, if any, cannot be brought to tax as and when it is received. The Tribunal s answer to the second question is also self-evident. 17. For the reasons stated above, we hold that no referable question of law arises from the order of the Tribunal.
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1978 (10) TMI 58
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... ... ..... tiles. It was also stated that Shri Joshi had helped the assessee developing the export market and also in preparing tenders, furnishing information and other activities incidental to such export. Accordingly, we confirm the order of the AAC on this count. 8. The last ground pertains to the AAC holding that the expenditure incurred for provision of ordinary hospitality to the customers of the assessee was not in the nature of entertainment and consequently deleting the addition made by the ITO as entertainment expenses of Rs. 1,144 for the year under appeal. As this was the expenditure incurred for provision of ordinary hospitality to the customers of the assessee the AAC was fully justified in allowing the claim of the assessee in view of the recent decision of the Bombay High Court in the case of Shah Nagjee (ITR 437/77 dt. 7th Oct., 1977). Accordingly, we confirm the order of the AAC on this count also. 9. In the result, the departmental appeal fails and stands dismissed.
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1978 (10) TMI 57
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... ... ..... tiles. It was also stated that Shri Joshi had helped the assessee developing the export market and also in preparing tenders, furnishing information and other activities incidental to such export. Accordingly, we confirm the order of the AAC on this count. 8. The last ground pertains to the AAC holding that the expenditure incurred for provision of ordinary hospitality to the customers of the assessee was not in the nature of entertainment and consequently deleting the addition made by the ITO as entertainment expenses of Rs. 1,144 for the year under appeal. As this was the expenditure incurred for provision of ordinary hospitality to the customers of the assessee the AAC was fully justified in allowing the claim of the assessee in view of the recent decision of the Bombay High Court in the case of Shah Nagjee (ITR 437/77 dt. 7th Oct., 1977). Accordingly, we confirm the order of the AAC on this count also. 9. In the result, the departmental appeal fails and stands dismissed.
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1978 (10) TMI 56
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... ... ..... e tax in accordance with s. 212(3A). It does not cover a case where the assessee having filed a valid estimate does not pay the tax and such a contingency is covered by s. 218 of the Act. We are supported in our view by the decision of the Madras Tribunal in ITA No.324/Mds.)/76-77 decided on 30th June, 1977. We may also refer to the decision of the Madras High Court in the case of R.V.N. Nagappa Chettiar and others(1), where it has been held that for failure to pay advance tax in accordance with sub-s. (3) of s. 18A of the I.T. Act, 1922 penalty cannot be levied under sub-s. (9) of that section, all that can be done is to charge interest in accordance with sub-s. (6) or (8). It has also been held that penalty be levied only for failure to submit an estimate of tax payable by the assessee or for knowingly furnishing a false estimate. In view of the above, we set aside the order of the AAC and cancel the penalty order levied by the ITO. 5. In the result, the appeal is allowed.
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1978 (10) TMI 55
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... ... ..... l neglect on the part of the assessee. It is no doubt true that once the basic conditions of the explanation are satisfied, the onus is on the assessee to establish that the failure to return the correct income did not arise due to any frauds, gross or wilful neglect on his part. But the assessee can be said to have discharged the onus if on the facts and the probabilities of the case one can come to the conclusion that there was no fraud or gross or wilful neglect on reasons started above, we are satisfied that on the part of the assessee and therefore under the provisions of the explanation to s. 271(1)(c) the assessee cannot be deemed to had concealed the particulars of his income or furnished inaccurate particulars of his income. We accordingly hold that on the facts and in the circumstances of the case, the IAC was in error in levying the penalty under s. 271(1)(c) r/w the explanation thereto. The penalty levied by him is accordingly cancelled. 9. The appeal is allowed.
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1978 (10) TMI 54
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... ... ..... ght from the year 1948 could have certainly saved Rs. 50,000 upto the asst. yr. under consideration. We therefore, hold that the entire investment was made by the assessee out of his savings from agricultural profession and no investment was made by him out of the income from undisclosed sources. We, therefore, order the deletion of the addition of Rs. 20,000 sustained by the AAC. 5. Another contention raised by the assessee is that he AAC was not justified in estimating the net ALV of the house property at Rs. 1,000. The assessee owns a house and showed the properly income at Rs. 250. The ITO estimated the ALV at Rs. 3,200. Shri Gupta argues that for the next following two years the ITO himself assessed the property income at Rs. 250. It is not disputed by the Revenue that the property income was assessed at Rs. 250 for the following years. This being so, we reduce the estimate of the AAC on property income from Rs. 1,000 to Rs. 250. 6. In the result, the appeal is allowed.
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1978 (10) TMI 53
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... ... ..... sment. An order which is made by the ITO to give effect to the order of the AAC is an order of assessment under s. 143. If that is the position. Then, in view of s. 2 (40) of the Act, the regular assessment as contemplated by s. 214(1) should be the assessment made by the ITO if there is no appeal therefrom, but in a case where there is an appeal, the order is passed by the ITO finally is to give effect to the direction, if any, of the appellate authority. Having regard to the scheme of the Act and the context in which the expression has been used, regular assessment under s. 214 would include in the particular facts and circumstances of the case an assessment made by ITO pursuant to the direction of the AAC Kooka Sidhaw and Co. vs. CIT (1934) 54 ITR 54 (Cal) relied on. Applying the ratio of the Calcutta High Court decision the direction given by the AAC appears to be fully justified and does not call for any interference. 5. The appeal of the Revenue fails and is dismissed.
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1978 (10) TMI 52
Sentence revision ... ... ... ... ..... consideration every aspect of the case and also the age of the respondent and the attendant circumstances thereof before giving lesser punishment. Sitting in revision, I do not think the reasoning given by the court below is wrong for giving a lesser sentence. In my view, the reasons stated by the court below, on the facts and circumstances of the present case, are special and adequate reasons to impose a lesser sentence on the respondent herein. In these circumstances, the conviction and sentence imposed by the Court below is confirmed and this revision to enhance the sentence is dismissed. 4. Mr. K. Ramaswami, learned Counsel appearing for the respondent in this revision petition has made an endorsement on the appeal filed by him against the conviction of the respondent herein in C.C. No. 1084 of 1972, which is numbered as Crl. AP. No. 656 of 1976, stating that it is not pressed. In view of this endorsement, the appeal Crl. AP. No. 656 of 1976 is dismissed as not pressed.
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