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Showing 61 to 80 of 200 Records
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1979 (1) TMI 140
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... ... ..... ssessees should have revised the returns after the decision of the Tribunal and should have included that interest income earned by their wives in their total income. This surely would have been an ideal solution but usually so much caution is not taken by anyone. This default may, be attributed to lack of proper legal advice but in no case can it be said that this failure to file revised returns could be equated with conscious concealment or furnishing of inaccurate particulars as contemplated by s. 271 (1) (c) of the Act. Moreover, we think that even this precaution might not have been helpful, because the Department could still say that the concealment had taken place in the original return and it was not cured by filing the revised return. In CIT vs. Biju Patnaik (1), it was held that no penalty could be imposed on an assessee for non-inclusion of such income in under s. 60 to 64 of the IT Act. 7. The appeals are allowed and the penalties by the learned AAC are cancelled.
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1979 (1) TMI 139
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... ... ..... d since they were doing service since 1961 although these creditors were not assessed to tax. Only in the case of the explanation regarding the source of the cash credit was not accepted because the assessee could not have saved enough to advance the loan and also the assessee could not produce the evidence in respect of Rs. 4,000 which was alleged to have been received by him from his father on partition. Further the ITO also had stated in his order that the creditor did not deposit this amount with the Bank or Post Office. The other creditors also did not deposit the money either in Bank or Post Office yet the ITO had accepted the source of the cash credit. In this case we find that the creditor had sufficient means to advance a loan of Rs. 10,000 to the assessee. In view of the facts, the lower authorities were not justified in treating the cash credit of Rs. 10,000 appearing in the name of the creditor as the income of the assessee. 6. In the result the appeal is allowed.
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1979 (1) TMI 138
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... ... ..... 14. Considering all these facts as a whole, the statement made by Shri S.N. Rana, subsequent deposits made by him with Ms. Rajkumar Agarwal, repayment of loan of Rs. 21,600 to the Bank, possession of agriculture holding agricultural income supported by a certificate, utilisation of manure, fertilizer etc. doubtful nature of the evidence given by Shri Omprakash, Shri Rana s social status and other attending circumstances, we are of the view that the amount of Rs. 50,000 stands proved by both direct and circumstancial evidence. Further the very fact that the ITO himself had a doubt as to the ownership of amount with the result of three different persons. On the material on record, therefore, this sum of Rs.50,000 cannot be undisclosed income of the firm and the same is deleted. We further hold that this sum of Rs. 50,000 belong to Shri S.N. Rana out of his agricultural income and not that of Shri Ramawatar, a partner of the firm. 15. In the result therefore, appeal is allowed.
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1979 (1) TMI 137
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... ... ..... 3. On behalf of the assessee, it is contended that the AAC was justified in law and on facts to give a direction to verify the liability and to allow the deduction in view of the fact that the wealth disclosed was considered in the computation of wealth of the assessee. The authorised representative of the assessee supports the order of the AAC. 4. We have given our consideration to the contentions of both the sides. We find that the value of Rs. 1,91,940 in respect of ornaments disclosed under the disclosure scheme was included in the net wealth of the assessee for the above year under appeal. We find also that the above income-tax liability has arisen out of the above disclosure of the wealth under the said scheme. Having regard to the facts of this case, we find that the assessee is entitled to the relief as directed by the AAC under the circumstances. We, accordingly find no reason to interfere with his order. The order of the AAC is confirmed and the appeal is dismissed.
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1979 (1) TMI 136
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... ... ..... Court in the case of V.L. Dutt(1), the assessee is not ordinarily bound to presume that the plea that he is putting forward was going to be disbelieved by the ITO. It would be open to the ITO to accept a plea even on a prima facie reading of the explanation. If the explanation was not found prima facie acceptable, then natural justice demands that the assessee should be appraised of the same so as to enable him to put forward any further materials or details. The rejection of such ground by merely disbelieving the explanation is, therefore, arbitrary and cannot be sustained. In the circumstances, we consider that there was no material to come to the conclusion that the assessee had no reasonable cause especially when the assessee s claim that the Accountant had let him down was not controverted by the Revenue. We, therefore, hold that the facts of the case did not warrant the imposition of penalties and we accordingly cancel the penalties imposed. 5. The appeals are allowed.
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1979 (1) TMI 135
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... ... ..... eferred as such, this statement obviously refers to it. As pointed out by the Gujarat High Court in the case S.P. Bhatt(1), the failure to maintain books of account cannot be said to constitute neglect as law does not require the maintenance of any verification of records. In any case the IAC having imposed penalty only on the basis of concealment, it is not possible to sustain the imposition of penalty on the basis of either the Explanation to Section 271(1)(c) or on the ground that the assessee had furnished inaccurate particulars of his income. We, therefore, find that there was no justification for the imposition of penalty on the facts of this case. In this view, it is unnecessary to decide the quantum of penalty though the contention of the assessee that penalty if imposable must be computed only in accordance with law as it stood on the date of filing of the return, is sound. In the circumstances, we cancel the order of the IAC. 9. In the result, the appeal is allowed.
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1979 (1) TMI 134
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... ... ..... l assessments. In the re-assessments he added the actual interest credited in the assessee s account with the Bank. The assessee s clear declaration in the returns that the amount was being declared on estimate would raise probabilities and create doubts the benefit of which can be given to him on the ratio of the decision of the Delhi High Court in CIT, Delhi vs. Narang and Co(1). In the asst. yr. 1973-74, there was a very small amount of annuity which also appears to have been inadvertently omitted by the assessee while filling the original return. We are, therefore, of the view that these mistakes are bona fide and inadvertently omitted by the assessee while filing the original return. We are, therefore, of the view that these mistakes are bona fide and inadvertent and there is no material on the record to hold that the assessee was guilty of any gross or wilful neglect and such less fraud. Hence, we cancel the impugned penalties. 6. In the result, the appeals are allowed.
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1979 (1) TMI 133
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... ... ..... t there was only a postal receipt of despatch of the notice under s. 210 but there was no acknowledgement slip of its having been delivered to the assessee. It is in evidence that the assessee has been denying the service of notice from the very start when the ITO required him to show cause why penalty should not be imposed under s. 273(c) of the Act. It was, therefore, for the ITO to prove that the notice was duly served on the assessee. Since there was no evidence on the record of service of notice under s. 210 on the assessee and the assessee has denied the receipt of any such notice merely because it was issued, does not mean that service was effected on the assessee. We have, therefore, to hold that no notice under s. 210 is proved to have been duly served on the assessee. If that be so, no penalty could be levied under s. 273(c) because the foundation for levying such a penalty was not laid. Hence, we cancel the impugned penalty. 7. In the result, the appeal is allowed.
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1979 (1) TMI 132
Reference Proceedings ... ... ... ... ..... that the AAC while deciding the assessee s appeal for the assessment year 1966-67 referred to in section 64 and section 11 of the Indian Contract Act. That order of the AAC, however, merged into the order of the Tribunal for that year. We have considered all the arguments advanced on behalf of the assessee before us and endorsed the conclusion of the Tribunal for the assessment year 1966-67. The Tribunal s decision did not proceed on the basis of section 64 or any provision of the Indian Contract Act. The Tribunal came to the conclusion that the profit was in fact earned by the assessee and his daughter Kumari Archana was merely benamidar and that was essentially a question of fact. We, therefore, reject this ground of appeal. 15. As a result of the above findings, we have to hold that the interest income of Rs. 920 has rightly been included in the assessee s total income for the assessment year under appeal. Accordingly, the assessee s appeal fails and the same is dismissed.
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1979 (1) TMI 131
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... ... ..... as therefore necessarily to be treated as the cost of the building or cost of its acquisition. The amount of Rs. 2,133 will, therefore, have to be deducted in computing the capital gains. We, however, find no reason for allowing the balances of Rs. 5,100 which relates tot he period5th Aug., 1961to5th Aug., 1970when there was no such necessity of keeping Chowkidar. 10. The last contention to various other expenses amounting to Rs. 4,827. The ITO allowed only 50 per cent thereof on the ground that there was no evidence for the payment and complete details were also not furnished. The AAC upheld his view. After considering the circumstances of the case and the nature of the expenses, we are of the view that the disallowance is excessive, we reduce it to Rs. 1000. We, therefore, direct that another sum of Rs. 1,413 should be taken as the cost of acquisition of the capital asset and should be deducted in computing the capital gains. 11. In the result, the appeal is partly allowed.
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1979 (1) TMI 130
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... ... ..... ril, 1969. The same view has been taken by the Punjab and Haryana High Court in the case of Suresh Seth(4) and by the Karnataka High Court in C.S. Manvi and Ors. It is true that the Kerala High Court in the case of CWT vs. Smt. V. Pathummabi (2), took a contrary view of the decision of the Allahabad High Court, which is binding on us and also because of preponderance of opinion being in favour of the assessee. We are of the view that the AAC was justified in following the decision of the Allahabad High Court in directing the WTO to recompute the penalties according to the law in force prior to1st April, 1969. It may be mentioned that the Supreme Court decision in the case of Gwalior (Rayon) Silk Manufacturing (Weaving) Co. Ltd. (3), relied on by the Department is distinguishable as it does not relate to penalty but arrears of interest under s. 220(2) and (3) of the Act and, therefore, has no bearing on the point at issue. 7. In the result, the Revenue s appeals are dismissed.
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1979 (1) TMI 129
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... ... ..... f Banwarilal Ray in 1964 his legal heirs were not traceable. The learned Departmental Representative, on the other hand, pointed out that the deceased used to return this amount as his asset while filing wealth tax returns. He urged that there was nothing to show that the amount in question became bad in 1964 after the death of Banwarilal Ray. 28. The claim of the accountable person from the very beginning was that after the death of Banwarilal Ray, the debtor, none of his legal heirs was traceable. We were told that no portion of this amount was recovered by the accountable person of the deceased even to-day. In that view of the matter, we hold that the amount of Rs. 85,000 had already become barred in 1964 on the death of the debtor Sri Banwarilal Ray. We therefore, delete the addition of Rs. 85,000. 29. The ground of appeal against valuation of Jewellery had not been pressed by the learned counsel for the accountable person. 30. In the result, the appeal is partly allowed.
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1979 (1) TMI 128
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... ... ..... even this fixed deposit was simultaneously given as a security for taking a loan of Rs. 2.25 lakhs. The company was also given an open loan of Rs. 5 lakhs from the same bank w.e.f. the same date. It would be seen, therefore, that the fixed deposit of Rs. 3 lakhs was necessitated for business consideration of getting additional finances from the bank. It did not represent surplus funds. The Departmental Representative had pointed out the absence of loans in the balance sheet and submitted that this shows how sound the finances of the company were. But it is submitted before us, on behalf of the assessee, that banks would not finance their business because they were dealing in foreign liquors and it would appear that the banks had been cautioned against giving advances for that type of business. So, we do not think that these two reasons would in any way affect our final decision that the dividend declared by the company is reasonable. 12. The Departmental appear is dismissed.
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1979 (1) TMI 127
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... ... ..... ent firm. 14. We have already observed above that genuineness of the firm is not in doubt at all and it is also not the Revenue s case that and requirement prescribed under the law and the rule was lacking or not complied. On the facts of the case, therefore, irrespective of the reasoning of the AAC, we have absolutely no doubt in our mind that his conclusion that the firm was entitled to registration benefits, is a correct one and any contrary decision would have been wrong and unjustified. We, therefore, hold that the ITO wrongly denied the registration benefits to the respondent and the situation having been remedied by the AAC, we find no occasion to interfere with his order. We have given several independent grounds as to how the respondent firm could not be denied the benefits of registration under s. 185(1)(b) of the Act. Therefore, on each of such grounds, we uphold the AAC s order. There being no merits in the Revenue s appeal, it is dismissed. 15. Appeal dismissed.
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1979 (1) TMI 126
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... ... ..... O included a sum of Rs. 75,000 in the net wealth of the assessee for the asst. yrs. 1960-61, 1961-62 and 1962-63. The Hon ble high Court held that when the assessee had not admitted the income which had accrued to him during the relevant accounting periods for the asst. yrs. 1957-58, 1958-59 and 1959-60 existed with him on any date in part or whole as his asset, there was no presumption that the whole income or any part of it continued as an asset of the assessee and there was no material whatever to indicate that there were any assets other than those disclosed in existence on the valuation dates. The said judgment fits like gloves to the case before us. In view of the categorical submission made for the assessee that no benefits of intangible additions have been or intended to be taken, it is not a fit case where penalty proceedings should have even been initiated, much less any justification for levy of the penalties. 6. Deleting the penalties, we allow these two appeals.
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1979 (1) TMI 125
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... ... ..... complied with the provisions of law as soon as his belief that the returns have to be filed only on receipt of notice was found to be erroneous. The facts of the case clearly show that the assessee failed to file the returns for these two years under appeal on sufficient grounds of bona fide belief. 10. The breach of the assessee for not filing the returns of income in time is a technical and venial one. The penalty can be levied for conscious disregard of the provisions of law or for a contumacious conduct of the assessee. But for a venial or technical breach of law, the penalty will be fully justified not to do if it is found that the assessee did not contravene the provisions of law consciously. In this case, the facts clearly show that the breach of law by the assessee was on a bona fide belief and without conscious disregard of the provisions of law and the penalties have, therefore, been wrongly imposed. These are cancelled. 11. In the result, both appeals are allowed.
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1979 (1) TMI 124
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... ... ..... M was not pressed before th Tribunal. Apart from this, the learned representative for the assessee has not produced any evidence to show what services were rendered by Smt. M. To the assessee company as an executive employee. The assessee s submission that since Smt. M was acting as executive PRO, the assessee s claim for deduction of Rs....... should be allowed, loses force in view of the fact that no evidence whatsoever was placed either before the IT authorities or before us to show the nature of services rendered by Smt. M even as executive P.R.O. We, therefore, uphold the order of the AAC on this point. 9. Before we part with this order, it may be mentioned that in respect of the asst. yr. 1973-74, the learned representative for the assessee did not press the ground regarding deduction claimed under s. 80G of the Act. The same is, therefore, rejected. 10. In the result, the appeal for the asst. yr. 1973-74 is partly allowed and for the asst. yr. 1974-75 is allowed full.
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1979 (1) TMI 123
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... ... ..... tantially the claim of the assessee, that is to say a major part of the work of these employees can be held to come under one or the other of the sub-cls. of s. 35B(1)(b) but as part of their duty they could not have avoided attending also to such work as falls within the excluded category of sub-cl(iii). Accordingly, part of the salary should be apportioned and attributed as expenditure on such excluded activity depending upon the facts and circumstances of the case. In the present case, having regard to the fact that out of the total turn-over of Rs. 8,21,73,000 in round figures, export sales amounted to only Rs. 50,440 against the total salary payment of Rs. 1,07,972, we estimate that 20 per cent of the expenses can be attributed to excluded activities under sub-cl(iii) and hold that the assessee is entitled to weighted deduction on the 80 per cent of the amount claimed. We direct allowance of weighted deduction accordingly. 6. In the result, the appeal is partly allowed.
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1979 (1) TMI 122
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... ... ..... was constituted to pronounce on the scope and content of the various sub-cls. of s. 35B(1)(b). Our attention has not been drawn to any authority or Judicial pronouncement of the Bombay High Court or of the Supreme Court. If the ITO had attempted to revise the order in pursuance of any Bombay High Court or Supreme Court decision having a direct bearing on the issue, the matter might have been different. In the present case, there is scope for argument, elucidation and debate on the interpretation, applicability and content of the various sub-cls. of s. 35B(1)(b). We, therefore, hold that the ITO was not justified in seeking to withdraw the relief given in the original assessments by resorting to s 154. That debatable issues cannot be made the subject matter of s. 154 is now settled law in view of the Supreme Court decision in the case of Volkart Brothers and Ors. (1). 6. In the above circumstances, we, therefore, vacate the orders of the AAC and the ITO and allow the appeals.
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1979 (1) TMI 121
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... ... ..... ss and this action of the ITO was confirmed by the AAC in appeal. it is against the sustenance of disallowance of Rs. 5,000 from travelling expenses incurred in foreign countries that the assessee has come up in appeal before us. 10. We have heard the rival submissions of both the sides and we are of the view that the entire expenses on travelling including expenses on lodging and boarding cannot be allowed and as such disallowance in respect of lodging and boarding deserves to be disallowed. As the ITO had disallowed to Rs. 5000 out of foreign travelling expenses on estimate basis, we restrict the disallowance to Rs. 500. only and as such we modify the order of the AAC and hold that the assessee is not entitled to foreign travelling expenses to the tune of Rs. 2,500 instead of Rs. 5,000. Accordingly the assessee will be entitled to weighted deduction of Rs. 2,500 allowed by us by way of travelling expenses. 11. In the result, the appeal is partly allowed as indicated above.
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