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Case Laws
Showing 41 to 60 of 137 Records
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1979 (12) TMI 97 - ITAT JAIPUR
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... ... ..... he reasons stated above. 69. The position, thus, is that there is no indication either in the main provision, or in the Rules as to whether the capital employed is to be as on this first day of the previous year or on the last day of the previous year, or at any point of time during the previous year. This being the position, s. 80J has to be construed in a manner most beneficial to the assessee. This view was taken by Their Lordships of the Supreme Court in CIT vs. Vegetable Products Ltd. (14). Following this view, their Lordships of the Punjab and Haryana High Court extended this maxim to the value of immovable property in this case of Jaswantrai vs. CWT (15). In my view, therefore, the computation of the capital should be made according r. 19A as on the first day of the computation period and also on the last day of the computation period, and out of the two, which ever is higher, should be adopted as the capital employed in the undertaking in respect of the previous year.
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1979 (12) TMI 96 - ITAT DELHI-D
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... ... ..... ssessee made by voluntary disclosure in respect of the surrendered amount. The sum of Rs. 12,500 is purely an estimated figure which no doubt was added to the assessee s income but on a suggestion by the ITO. The present cases are distinguishable from the facts of the aforesaid judgment and this judgment also does not help the Revenue in any manner. The judgment in Durga Dutta Chunni Lal vs. CIT(6), is also not applicable to the facts of this case because in that case the controversy was as to on whom the onus lies to prove in terms of the explanation to s. 271(1)(c) and that the correct income did not arise from any fraud or gross or wilful neglect and penalty was held to be exigible because all the purchases had not been accounted for and there were numerous discrepancies in the accounts. Since I am holding that no penalty is exigible in this case, the ratio of the judgment in the case of Brij Mohan vs. CIT(7) will not be applicable. 6. In the result, the appeal is allowed.
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1979 (12) TMI 95 - ITAT DELHI-C
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... ... ..... n the IAC passed his final order, his jurisdiction to do so had been taken away by the amendment of s. 274(2), the order passed by him was without jurisdiction . The reference of the case law relied by the Revenue does not rebut the assessee s case because the facts and the question dealt with were different. Before parting with this appeal, we may mention that the argument of the Deptl. Resp. that the Tribunal was not competent to dispose off the appeal is not acceptable. When authority passes an order under the IT Law and a grievance is caused to the party, the party has a right to have that grievance redressed in accordance with the provisions of the law. When the IAC exercised jurisdiction, he exercised it under s. 271(1)(c) r/w s. 274(2) and an appeal lies against that order. Therefore, the Tribunal is competent to entertain that appeal and dispose it off and pass such order thereon as it thinks fit within the meaning of s. 254(1) of the IT Act. 4. The appeal is allowed.
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1979 (12) TMI 94 - ITAT DELHI-B
Assessment Year, Dispose Of, Impartible Estate, Res Judicata, Revised Return ... ... ... ... ..... ssee was not the holder of an impartible estate. (ii) That he was the absolute Ruler, the King, monarch up to the merger and after the merger in 1949, he was reduced to the position of an ordinary citizen to whom the provisions of personal law applied, he being a Hindu, the Hindu law. (iii) That the filing of the returns in the status of individual could not operate as resjudicata by conduct against the assessee from claiming his correct status of a HUF for income-tax purposes. (iv) The disposition of properties by the late assessee during his lifetime constituted an insignificant part of the properties of the HUF keeping in view the size of the assets of the HUF. 28. In the result, the revenue appeal is dismissed and the order of the AAC is confirmed. 29. IT Appeal Nos. 2580 and 2581 (Delhi) of 1977-78 and GT Appeal No. 51 (Delhi) of 1977-78 being merely consequential are also dismissed and the order of the AAC is confirmed. All the four appeals of the revenue are dismissed.
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1979 (12) TMI 93 - ITAT DELHI
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... ... ..... earlier previous years. We are unable to agree with the view of the AAC that these amounts were indirectly allowed as a deduction and that s. 41 would be applicable, as there is no material to support such a conclusion. On the authority of the decisions of the Supreme Court and of the Punjab and Haryana High Court, we hold that the royalty receipts would be taxable as income in the hands of the assessee in the three respective years of their collection, namely, Rs. 1,075 1967-68 asst. yr. Rs. 2,879 in 1968-69 asst. yr. and Rs. 8,742 in 1969-70 assessment year. The ITO is directed to take appropriate action and to bring to charge these amounts in the said asst. yrs. in accordance with law. Accordingly, we accept the alternative contention of the ld. counsel and delete the addition of Rs. 12,697 from the income of the assessee in the asst. yr. 1972-73. 13. Since the assessee s main contention in the appeal has not been accepted, this appeal should be treated as partly allowed.
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1979 (12) TMI 92 - ITAT DELHI
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... ... ..... had shown the value of the said property at the same figure, namely at Rs, 2,12,000.00 for the first three years 1971-72, 1972-73 and 1973-74 and for the 4th year 1974-75 he had shown the value thereof at Rs. 2,17,000.00. As against this, the WTO adopted the value as under 1971-72 Rs. 2,25,600.00 1972-73 Rs. 2,46,200.00 1973-74 Rs. 2,72,800.00 1974-75 Rs. 3,12,500.00 The assessee did not succeed before the AAC and is in further appeal before us. 3. As per the instructions of the CBDT, the value adopted for one year has to remain effective for the succeeding two years. Since the Department had accepted the value as shown at Rs. 2,12,000.00 in respect of the year 1970-71, the same would be adopted for the succeeding two years, namely, 1973-74 and 1974-75. We consider that it will be fair if the value is taken with an increase of Rs. 25,000.00 namely at Rs. 2,37,000.00 in each of the said two years and we order accordingly. 4. In the result the four appeals are partly allowed.
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1979 (12) TMI 91 - ITAT CHANDIGARH
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... ... ..... Bihar Textiles(2) and for the reasons recorded above and with utmost respect we are not inclined to follow the said judgment. We were also addressed arguments that the noted notices were not sent on the address given but since as a fact we are holding that notices dated 24th Feb., 1975 were served on the assessee after 24th Feb., 1975 and the WTO letter dated 18th March, 1977 did not come to the notice of the assessee, there being no evidence placed before us of its having been despatched, we are not dealing with that aspect at all. 6. On merits, we were not addressed any arguments by the parties. 7. For the reasons recorded above, we, therefore, cancel penalties for all the four years and allow these appeals. 8. Before parting with the case, we like to observe that if we have not recorded any argument or having recorded the same have not analysed it, it is because it is either considered frivolous or has not been considered necessary for adjudicating the appeals before us.
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1979 (12) TMI 90 - ITAT CHANDIGARH
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... ... ..... se is not excluded. Pathak, J also expressed his disagreement with observations of the majority in the Loka Shiks-hana Trust case (1975) 101 ITR 234 (SC) and expressed his agreement with the observations of Beg, J to the extent that they were to the effect that it was the genuineness of the trust that it was the genuineness of the trust that it is truly charitable which determined the issue. For the same reasons, his Lordship also did not agree with the observations in the Indian Chamber of Commerce case (1975) 101 ITR 796 (SC). 9. Therefore, relying on the various judgements as noted by the Hon ble Supreme Court in its judgement dt. 19th Nov., 1979, we hold that there is absolutely no case for the Revenue, as far as the facts in the present case are concerned, even to argue that the appellant, charitable trust, is not entitled to exemption under s. 11 of the Act. We, therefore, allow these appeals and the additions made in the reassessments are vacated. 10. Appeals allowed.
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1979 (12) TMI 89 - ITAT CHANDIGARH
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... ... ..... cks, closing stock valuation in that case was given a clean go-bye and which the same as in the case of the assessee. 9. After closely perusing the facts of the case and hearing the parties, in our opinion, the ITO clearly misdirected himself in adopting the value of the closing stock in the assessee s case at market rate and the assessee s method of valuation was in conformity with the earlier years, pattern of closing stock as also in conformity with the other jewellers. Therefore the AAC s approach in the case has been correct that there was no under valuations of stock at all. On such view of the matter, we dismiss the Revenue s appeal. While deciding this appeal, we have closely perused the orders of the ITO and the AAC and the evidence placed before us in the form of copies of trading accounts and other evidence filed before the ITO and the AAC as also the ITO s notice under s. 143 (3) and the assessee s reply thereto. 10. In the result, revenue s appeals is dismissed.
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1979 (12) TMI 88 - ITAT BOMBAY-D
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... ... ..... tta Railway Co. Ltd. (1940) 8 ITR 280 (Mad) and 11 ITR 380. It only remains to deal with the decision of a Bench of the Tribunal relied on by the assessee. Therein the ITO allowed a similar claim, but later he passed an order reversing it under s. 154. The Tribunal held that s. 154 would not apply since its allowability depended on a long drawn process or reasoning. While holding so, they also observed that the appropriation to the Capital Redumption Fund was a deduction by an overriding title. These observations while disposing of a matter of appeal against order under s. 154 have no relevance here. 9. On a consideration of all the facts, we are satisfied that the assessee is not entitled to claim that Rs. 2,10,000 set apart for the Capital Redumption Fund is not part of the Society s income. The Society also cannot claim that there is a diversion by overriding title. There is no loss to be considered under s. 28 nor any expenditure under s. 37. 10. The appeal is dismissed.
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1979 (12) TMI 87 - ITAT BOMBAY-D
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... ... ..... he AAC that no addition was called for to the trading results as shown by the assessee. 6. We many further notice that the ITO violated the ratio of the following decisions in not putting across to the assessee basis of the proposed addition before finally making it and in not bringing comparable cases on record. 1. Y.V.M. Somaraju and Co. vs. CIT(1), 2. S.S. Setty and Sons vs. CIT(2), 3. Kmoyammankutty vs. ITO(3), 4. P. Subbaraidu and Co. vs. CIT(4). We may further notice that the ITO had not brought any material on record reflecting the trading conditions existing during the relevant accounting year. Trading conditions need not remain uniform from year to year and it would normally be necessary for the ITO to deal with the relevant trading conditions. Apart from this, we find that for the two subsequent years, the trading results shown by the assessee have been accepted. We therefore, agree with the conclusion of the AAC. 7. In result, the departmental appeal is dismissed.
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1979 (12) TMI 86 - ITAT BOMBAY-B
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... ... ..... a High Court where cash deposits were surrendered by the assessee on the basis that there was no material on record to show that surrendered item was the income of the assessee. Even in the case where the assessee had offered to be penalised, in other words, conceded the minimum penalty, it was not sustained by their Lordships of Mysore High Court in D. Halappa Sons vs. CIT (1974) 95 ITR 543 (Mys) because none of the authorities had stated that the assessee had consciously concealed the particulars of income. 11. The penalties in these two cases cannot be sustained even as per proviso, as no gross neglect of fraud has been established by the Revenue and the assessee s contention in this regard is supported by CIT vs. Musaddilal Singh (1977) 106 ITR 672 (All) and Addl. CIT vs. Kashiram Mathura Prasad (1979) 119 ITR 497 (Pat). The penalties in both these years are, therefore, remitted and the two appeals of the assessee are accepted. 12. In the result, the appeals are allowed.
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1979 (12) TMI 85 - ITAT BANGALORE
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... ... ..... rebate was Rs. 1,87,686 the income of the priority industry was Rs. 1,20,791 which could be treated as being available out of the balance of Rs. 2,07,617 assessed to tax. But this plea implies that the unabsorbed depreciation and development rebate is to be set off against income from other sources leaving the income from priority industry in fact for deduction under s. 80-J. Such an implication cannot be accepted since the unabsorbed depreciation and development rebate related to the priority business. Therefore, we are unable to accept the assessee s contention. The decision of the ITO to carry forward the deduction under s. 80-J, as not allowable in this assessment year was correct and must be confirmed. However he has to recompute the amount of deduction that has to be carried forward in the light of our decision above. For that purpose, the orders of the authorities below are set aside and the matter is restored to the ITO. The appeal shall be treated as partly allowed.
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1979 (12) TMI 84 - ITAT AMRITSAR
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... ... ..... ourt took the view that the return was not invalid, we find no jurisdiction to agree with the ITO that a return dt. 29th Aug., 1975 was invalid. For the reasons, we hold that the return dt. 29th Aug., 1975 was not invalid and omission to sign the return was simply a defect which was curable not only before the ITO but even before the appellate authority. We are, therefore, of the view that in the circumstances of the case, it cannot be said that no return was filed on 29th Aug., 1975. Omission to sign the return is merely irregularity which can be cured even at the stage of the appeal. There is no scope of any debate in this view and, therefore, we hold that the view taken by the CIT(A) is erroneous. The application of the assessee made under s. 154 cannot be partly rejected on this ground. For the reasons, we reserve the order of the authorities below and direct the ITO not to charge penal interest under s. 139(8) upto 6th May, 1977. 5. In the result, the appeal is allowed.
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1979 (12) TMI 83 - ITAT ALLAHABAD-B
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... ... ..... ce, these appeals before us. 5. Heard the learned counsel for the assessee Shri M.H. Singhal and the learned authorised representative of the Department Shri Sheo Prasad. In this case, we have noted that the assessee has not challenged the findings given by the ITO in respect of his HUF assessment. Thus, if the assessment in the case of HUF has not been challenged by the assessee and he has accepted the same even on protective basis, the question of further adding the same to the income of the individual will not arise as, if the ITO was not satisfied with the plea of the assessee, he should have treated the HUF as an AOP but since he failed to do the same, we consider it reasonable to hold that there was no justification on the part of the authorities below to have added back the income from property to the income of the individual also. In this view of the matter, we delete the addition made in both the years under consideration and allow the appeals filed by the assessee.
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1979 (12) TMI 82 - ITAT ALLAHABAD-A
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... ... ..... t Rs. 3,93,000 (15,770 x 25) . 5. Value of one half share of the assessee was, thus taken at Rs. 1,96,500 for both the years under appeal. Aggrieved, the assessee went up in appeal to the AAC who agreed with the WTO. 6. Before us, Shri Sadh argued that the WTO was not justified in taking the multiple 25 and that proper multiple is 16. Rental income as computed by the approved valuer at Rs. 15,720 was not disputed by the WTO. The only dispute is that the multiple 25 which was taken by the WTO is not correct. In our opinion, the WTO should have taken the multiple 20 instead of the 25. We accordingly direct the WTO to recompute the value of the property taking the multiple 20. 7. Ground No. 7 having been raised in the grounds of appeal pertaining to the asst. yr. 1975-76 has not been pressed by the assessee s counsel and, therefore, the same is rejected. No such ground was raised by the assessee for the next following year. 8. In the result, both the appeals are partly allowed.
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1979 (12) TMI 81 - ITAT AHMEDABAD-B
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... ... ..... rship in the firm, hence no goodwill and accordingly in could not be subjected to any gift-tax. 10. Under s. 2(D) of the said Indian Partnership Act, 1932 a third party has been defined and used in relation to a firm or to a partner therein, meaning any person who is not a partner in the firm. The minor not being partner, but having been admitted to the benefits of the partnership, as such is a third party vis-a-vis the firm and the partners constituting the firm as per the above definition, with the result that the minor was not entitled to any goodwill and the goodwill could not be subjected to any gift-tax in lieu of the goodwill as in the present case since the minor has not acquired any goodwill. 11. In the result, we agree with the findings of the AAC and uphold the impugned order, though on the reasoning mentioned above. In the result, the appeal by the Revenue fails and is dismissed, while the cross objections by the assessee become infructuous and are also dismissed.
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1979 (12) TMI 80 - ITAT AHMEDABAD
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... ... ..... sessee has not been categorical in his assertions about the claim made, being in toto, in respect of cartons as above, and since we have held that packing expenses in lieu of carton used on goods meant for export qualify for weighted deduction in terms of export market development allowance under s. 35B of the Act being expenses in the nature of advertisement publicity and covered under sub-cl. (i) of cl. (b) of sub-sec. (1) of s. 35B of the Act, we direct the ITO to work out the relief on these expenses and allow it to the assessee for all the three assessment years under appeal. The appeals by the assessee for all the three assessment years succeed and are allowed. 24. In the result, the ITA Nos. 739 and 740 /Ahd/78-79 by the assessee and the cross objections Nos. 223 and 224/Ahd/ 78-79 arising out of ITA Nos. 739 and 740 and ITA No. 976 / Ahd/ 78-79 by the assessee succeed and are allowed, while ITA No. 1026/Ahd 78-79 by the Revenue partly succeeds and is allowed in part.
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1979 (12) TMI 79 - HIGH COURT OF JUDICATURE AT BOMBAY
Customs - Classification of goods ... ... ... ... ..... dustrial diamonds so that the higher 40 ad valorem duty could be attracted. It is patently clear that these two sets of orders are mutually contradictory and destructive of each other and cannot stand together. Mr. Dada states that the petitioner has no objection in paying the 40 ad valorem duty for the simple reason that these diamonds imported by the petitioner are, in fact, industrial diamonds as is disclosed by the orders dated 1st May 1973 and 6th March 1976. 5. In the result, the two impugned orders dated 17th March 1973, the appellate order dated 9th April 1974 and the revisional order dated 4th December 1975 are set aside and the petition is allowed in terms of prayers (a) and (b). The authority shall refund to the petitioner the sum of Rs. 13,000/- being the fine paid by the petitioner under the two orders dated 17th March 1973 within four weeks from today. The respondents shall also pay to the petitioner the costs of the petition. Rule is made absolute accordingly.
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1979 (12) TMI 78 - SUPREME COURT
Whether the High Court was in error in acquitting the appellant of the charges under Section 135(1),(a) and (b) of the Customs Act?
Held that:- In the instant case, while holding that the respondent was in conscious possession of the gold bars in question, the High Court has acquitted him only on the ground that the porsecution had failed to prove that the gold in question had been imported after 1947 without the necessary permission of the Reserve Bank, or without payment of duty and that the further question as to whether the accused knew that it was smuggled gold `does not really arise'. With this reasoning the High Court acquitted the respondent on the first two charges under Section 135 of the Customs Act. The High Court overlooked several tell-tale circumstances appearing in evidence which unerringly pointed to the conclusion that the gold in question was smuggled gold. These circumstances are : (a) The gold biscuits in question bore foreign markings which proclaimed their foreign origin. (b) This gold was of 24 carat purity which was not available in India at the material time. This circumstance reinforces the inference of its being smuggled gold. (c) These gold biscuits were found concealed and stitched in the folds of a jacket specially prepared for this purpose. (d) The gold, was in the shape of gold biscuits and was of huge value, which at the then prevailing market rate, was ₹ 1,85,000. (e) After the seizure of this gold the accused absconded and continued to be a fugitive from justice till March 14, 1962.
Thus the High Court was in error in acquitting the appellant of the charges under Section 135(1),(a) and (b) of the Customs Act - allow this appeal, set aside the acquittal of the accused, Natwarlal Damodardas Soni, and convict him under Section 135(1)(a) & (b)
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