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Showing 61 to 80 of 123 Records
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1979 (4) TMI 63 - ITAT JABALPUR
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... ... ..... elief of Rs. 2,358 allowed by the ld. AAC. The ITO had disallowed Rs. 2,858 under the head miscellaneous expenses and a further sum of Rs. 1,000 under the head travelling expenses . The total sum claimed by the assessee during the entire year was Rs. 2,858 in the miscellaneous expenses and Rs. 2,008 in travelling expenses. The ITO has disallowed entire claim in respect of miscellaneous expenses and Rs. 1,000 out of the travelling expenses. We fail to explain as to how the ITO has disclosed total sale of Rs. 10,59,324. The assessee is wholesale dealer in cloth. The net income filed by the assessee as per return was Rs. 41,168. Considering the volume of the business and the net profit the claim of the expenses under these two heads should have been allowed by the lower authorities. Since the assessee is not in appeal against the order of the AAC on this point we confirm the addition retained by the Learned AAC, under these two heads. 9. In the result, the appeals are dismissed.
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1979 (4) TMI 62 - ITAT JABALPUR
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... ... ..... in question, or that there should be purchases therefore, or that the sale should be legal. On the other hand, what the section requires is merely an assumption to be made of a hypothetical open market, of the legality of the sale or the terms of the contract governing the alienability of the property in question. Where the property is of a personal nature the benefit of which cannot be sold, an assumption should be made that the purchaser on his purchase would be able to enjoy the property in the same manner as the assessee was doing. The national value which would be obtained under those conditions designed by the section as the value of the asset. The question whether there was in fact a market and the property could in fact be sold is wholly immaterial. 13. We, therefore, reject the argument advanced by learned counsel and hold that the WTO was right in including the agricultural land valued at Rs. 5,17,221 in the net wealth of the assessee. 14. The appeals are dismissed.
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1979 (4) TMI 61 - ITAT JABALPUR
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... ... ..... that there was no conscious disregard on the part of the assessee, he should be exonerated from the rigour of the penal provisions of the WT Act. 6. As already mentioned, the WTO did not examine the other two causes submitted by the assessee in his written reply, namely, death of the Accountant and dislocation in the office of the Legal Advisor. The WTO should have called upon the assessee to lead evidence and prove these facts. As he did not give any such direction, it is not open to the Department now to say that these facts were not proved. The explanation had been offered and if the WTO was not satisfied with the same, he should have called upon the party to substantiate it with evidence. 7. Keeping in view all the above facts, we are of the opinion that the default on the part of the assessee was not without reasonable cause and, therefore, no penalty could be exigible for late filing of the returns. 8. The appeals are, therefore, allowed and the penalties are cancelled.
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1979 (4) TMI 60 - ITAT JABALPUR
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... ... ..... e Insurance Act and the terms of the policy. For the assessee, original letter dates 22nd March, 1972 from the LIC of India, to the deceased Shri Chinta Man Rao was produced before us. This letter in clear terms stated that the deceased had wrongly obtained a loan on the policy which had been assigned by him to Shri Chandrashekar. We, therefore, hold that the amount of the policy would not be deemed to pass under s. 10 of the Act. We may, add that even insurance premia paid by the deceased within two years prior to his death would not come within the ambit of s.9 or s. 10 of the Act, because insurance premia is not a gift. 23. We, therefore, hold that the authorities below were not justified in including the amount of Rs. 1,22,678 in the estate of the deceased by invoking s. 14(1) of the ED Act. This amount could not be included under s. 10 of the Act as well. 24. The assessee s appeal is allowed and the addition is deleted. As a consequence, departmental appeal is dismissed.
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1979 (4) TMI 59 - ITAT INDORE
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... ... ..... t Rs. 90,000 as against Rs. 1,13,375 estimated by the Asstt. Collector of Estate Duty. The Department is aggrieved by this finding of the Appellate Controller. 3. Before us the learned counsel for the assessee submitted that even if the report of the registered valuer may, not be accepted as reliable, the fact that the deceased was assessed to wealth-tax during the asst. yrs. 1975-76 and 1976-77 at a valuation of Rs. 84,000 in respect of these agricultural lands, the value estimated by the Appellate Controller at Rs. 90,000 was quite reasonable. In our opinion, there is force in the contention of the Learned Counsel. Since the value of these lands has already been accepted by the Department at Rs. 84,000 as late as on Diwali 1975, its value at Rs. 90,000 on the date of the deceased, viz.17th Dec., 75 appears to be quite reasonable and we do not propose to interfere in the matter. Accordingly, the order of the Appellate CED is upheld. 4. In the result, the appeal is dismissed.
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1979 (4) TMI 58 - ITAT INDORE
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... ... ..... ned regular books of accounts in which all these alleged transactions had been mentioned. Both these are in correct conclusions. So far as the AAC s observation is concerned, Mr. Atal himself admitted that it was wrong. So far as the ITO s conclusion is concerned, once the affidavit of Smt. Basantibai was before him should have ordinarily accepted that affidavit unless there was something to suspect either the genuineness of the credit or her capacity to give the same. For this he could have summoned the lady. However, without doing so he should not have straightaway rejected the evidence on surmises and conjectures. In the present circumstances we are left with no alternative but to send the matter back to the AAC who should now himself examine the lady and ascertain the genuiness of these credits including the capacity of the lady to do so. 6. For statistical purposes both these appeals shall be deemed to have been allowed and the cross-objections of the assessee dismissed.
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1979 (4) TMI 57 - ITAT HYDERABAD-A
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... ... ..... clude the three receipts in question also in the assessee s business receipts and compute the income on that basis. 19. It appears that the income returned by the assessee under the head business was arrived at by showing Rs. 1,07,294 as receipts from the Craftsmen s Guild at Mallepally and Rs. 1,08,761 as the business expenditure inclusive of depreciation in respect of that guild. Shri Devadas has pointed out that the ITO while excluding that sum of Rs. 1,07,294 from the business receipts and assessing it separately under the head income from property committed a mistake is not adding back Rs. 1,08,761 which was shown by the assessee as business expenditure relating to the guild. The ITO will no doubt look into the matter and rectify the mistake, if any, committed by him in the computation of the business income, which he has to do as per the directions of the AAC. 20. In the result, the Department s appeal is dismissed that the assessee s cross-objection is allowed in part.
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1979 (4) TMI 56 - ITAT GAUHATI
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... ... ..... Sept., 71. The assessee had filed an explanation stating that his business being outside Imphal, he could not gather particulars in time. The fact that his business was outside Imphal is accepted and the authorities below have rejected the explanation as not satisfactory without giving any reasons as to why it could not be considered satisfactory. From therefore, circumstances of the case, it is apparent that the delay in the filing of the return was not deliberate and as we have seen that the Department was not particular about the filing of the returns by the assessee in the earlier years also, there is nothing to show that there was any conscious contravention of the statutory obligation. In the circumstances, we are of the opinion that the imposition of penalty for this assessment years also is not justified by the facts of the case and cannot be sustained. We, therefore, cancel the penalty imposed for this assessment year also. 8. In the result, the appeals are allowed.
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1979 (4) TMI 55 - ITAT DELHI-A
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... ... ..... by the decision of this Court in Rattan Lal s case which is binding on us. The Tribunal was, therefore, justified in not referring the questions to this Court. For the same reason, we also decline to require the said questions to be referred to this Court. Mr. Kirpal, learned counsel for the Income-tax, stated that an appeal is pending in the Supreme Court against the decision in Rattan Lal s case. But, the mere pendency of an appeal is not by itself a valid ground for directing the Tribunal to refer the proposed questions to this Court when the decision of the Division Bench of this Court, with which we agree, covers the questions. We, therefore, dismiss ITC No. 199 of 1977 limine. We therefore, respectfully follow the said decision of the Delhi High Court and hold that the question raised by the Commr. in these reference applications are purely academic in view of the decision of the Delhi High Court in Girdhari Lal s case 10. Hence, the reference applications are rejected.
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1979 (4) TMI 54 - ITAT DELHI-A
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... ... ..... tres set is that the AAC should have deleted the entire disallowance of Rs. 750 out of travelling expenses, instead of sustaining the disallowance to the extent of Rs. 300 without giving any specific reason. Here again all the expenses are supported and no expenses of inadmissible nature has been pointed out. We agree with the assessee s contention that there was no justification for retaining a disallowance of Rs. 300. The disallowance is, therefore, deleted. 3. The next contention relates to the disallowance of Rs. 600 out of travelling expenses and Rs. 300 out of miscellaneous expenses in the Novelty Talkies set. Here again the entire expenses are supported and no instance of any inadmissible items has been pointed out either by the ITO or by the AAC. Accordingly, these items of disallowance are also deleted. 4. In the result, the only disallowance to be sustained is of an amount of Rs. 150 in respect of the M.S. Bansal and Co., set. The appeal is partly allowed, as above.
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1979 (4) TMI 53 - ITAT CHANDIGARH
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... ... ..... id by the assessee as part of the entry ticket which the assessee bears to earn and keep goodwill of the persons who matter in the conduct of the business of the assessee. The expenditure is, therefore, wholly and exclusively laid out for the purpose of the business of the assessee. This view was taken by the Tribunal earlier and we do not find any justification to differ therefrom. Therefore, the expenditure for both the years respectively amounting to Rs. 8,189 and Rs. 4,442 was rightly deleted by the AAC. 6. In so far as the expenditure on tea for the persons to whom free tickets are concerned, it cannot be said that the expenditure does not partake of the character of entertainment expenditure. The claim of the assessee that a part therefore was on the employees has not been established. We, therefore, reverse the order of AAC on this issue and restore the additions of Rs. 2,044 and Rs. 1,879 respectively for the asst. yrs 1975-76 and 1976-77. 7. Appeals allowed in part.
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1979 (4) TMI 52 - ITAT CHANDIGARH
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... ... ..... ious notices and framed the assessment under the Act, which is patently illegal and without jurisdiction. Their is a difference between passing an order under a wrong section and taking the proceedings under the wrong Act, which had not come into force, as per provisions of s. 297(2)(a) of the Act, reproduced above. According to s. 297(2)(a) of the Act it should have been taken that the Act had not been passed when the ITO was proceeding with the return, which had been filed before 1st April,1962. Following authorities are relevant in this connection - Inter-Asian Footwear Corporation vs. AAC(3) Kalawati Devi Harlalka vs. CIT and Others(4), CIT vs. Allahabad Bank Ltd.(5),S.P. Jaiswal vs. CIT (6),Narinder Singh Dhingra vs. CIT (7),Sri Padmapat Singhania vs. CIT (8),D.D. Kapoor and Others vs. CIT(9), Raj Kumar Singh Hukam Chandji vs. CIT (10). 7. We, therefore, hold in this case that the reassessment framed under s. 143(3) of the Act is bad and is cancelled. 8. Appeal allowed.
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1979 (4) TMI 51 - ITAT CHANDIGARH
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... ... ..... ssee himself has income from coaching and share from M/s. Mahabir Stores. This income from tailoring and sewing claimed by Smt. Achhro Devi belongs to her and has been accepted as such by the Revenue. The quantum of her income clearly shows that she was in a position to have savings from her income. It has not been denied that she had no savings at all. The question, therefore, is whether Rs. 20,000 she could save from her tailoring profession. 17. On the facts recorded supra, the quantum of Rs. 20,000 could have easily been saved by Smt. Achhro Devi and we hold that the amount of Rs. 20,000 was saved by her. The factum of gift by her to her husband has been accepted by both of them being the donor and the donee. Since the donor was in a position to have savings from her own sources, the gift was apparently a valid gift and that the gifted amount was not income of the assessee which could be taxed under s. 69. The order of the AAC is, therefore, upheld. 18. Appeal dismissed.
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1979 (4) TMI 50 - ITAT CALCUTTA-B
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... ... ..... Lines shall be treated as income from business, while the rental income received from outsiders in the sum of Rs. 4,15,251 shall be treated as income from house property. To that extent, we uphold the order of the AAC. 10. With regard to the sum of Rs. 43,960, being the amount claimed by the assessee as repairing expenses on Mazdoor Lines and since allowed by the AAC, we are of the opinion that in the light of the above bifurcation of rental income, this issue needs to be probed further. As such, we set aside the order of the AAC on this count and remand the case to the ITO with the specific directions that in respect of this claim of Rs. 43,960 the ITO will allow these expenses to the assessee, to the extent, these expenses on repairing are referable to Mazdoor Lines, and we further direct that the disallowance out of the expenses referable to repair of Mazdoor Lines, will be to the extent to which they are not of a capital nature. 11. In the result, the appeal is allowed.
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1979 (4) TMI 49 - ITAT CALCUTTA-B
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... ... ..... ition, it could not be said that the payment by the assessee during the year under appeal was actually incurred for and in the course of business for earning income therefrom. This point also came up for consideration before E Bench of the Tribunal, Calcutta in the case of the assessee relating to the asst. yrs. 1972-73 to 1974-75 and the said Bench in ITA Nos. 5509 to 5511 (Cal) of 76-77, on the same facts as they are now, held that the amount paid to the Association was not for commercial expediency and it was not an expenditure laid out wholly and exclusively for the purpose of business for the assessee and accordingly the said Bench upheld the disallowance in so far as the amount paid to the Association was in dispute. We find ourselves in full agreement with the reasoning and findings of he said Bench on this point. We accordingly restore the order of the ITO and reverse the order of the AAC on this point. 12. In the result, the appeal of the Revenue is allowed in part.
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1979 (4) TMI 48 - ITAT CALCUTTA-B
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... ... ..... e opinion that there were no facts and circumstances enough to distinguish and differentiate the facts of the cases for the asst. yrs. 1973-74 and 1974-75 with those of the earlier assessment year in the cases of the assessee and the disallowance of Rs. 6,000 out of director s remuneration in each of the asst. yrs. under appeal was not made by the ITO on any basis. In the light of above and coupled with the fact that the said director was one of the four directors who were being paid remuneration, and the said remuneration remained stagnant since the year 1962-63 and he was looking after the left-over business of the assessee-company attending income-tax assessments etc., and that his full medical expenses in the years under appeal were allowed by the lower authorities, we do hold that the disallowance out of the director s remuneration were not justified and accordingly the disallowances are deleted for both the years under appeal. 7. In the result, the appeals are allowed.
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1979 (4) TMI 47 - ITAT CALCUTTA-B
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... ... ..... ribunal, Calcutta has dismissed the appeal of the Revenue for reasons recorded therein. The Bench held that the assessee was not obliged to show such interest income in its accounts and in that view of the matter, the ITO was not justified to bring it to tax on mere presumptuous accrual basis. The order of the AAC on this point in the circumstances of the case calls for no interference and the same is, therefore, affirmed. 6. The facts, the parties, the reasonings of the ITO and the AAC as also contentions raised by the Revenue and the assessee in both the years remain the same, the present appeal being in respect of the asst. yr.1974-75 while the appeal before the Tribunal was relating to the asst. yr. 1973-74 we find ourselves in agreement with the findings arrived at in the previous decision of the Tribunal and accordingly hold that no interference is called for with the order of the AAC, which is upheld. 7. In the result, the appeal of the Revenue fails and is dismissed.
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1979 (4) TMI 46 - ITAT CALCUTTA-B
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... ... ..... dministrator to the estate of late Kesharbai Khemka. Further, the assessee, in appeals before us got the share for a consideration of Rs. 20,000 her father-in-law, one of the legal heirs to the estate of late Kesharbai Khemka by way of a registered assignment deed and accordingly, she does not fit into the definition of legatee within the meaning of sub-s.(6) of s. 19A of the Act. We are also of the opinion that the share in the estate of late Kesharbai Khemka, which the assessee acquired from her father-in-law, has rightly been included and assessed as her wealth and the contention of the learned counsel for the assessee that it could be included for rate purposes only does not seem to be tenable in the light of our above discussion and solely on the ground that the estate has also been subjected to wealth-tax as a separate entity. We therefore, uphold the orders of the authorities below. 15. In the result, all the four appeals by the assessee fail and are hereby dismissed.
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1979 (4) TMI 45 - ITAT CALCUTTA-A
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... ... ..... pointed out that these transactions were completed much before that date and the loan had been given on 31st July, 1970. It was also pointed out that under s. 13(2)(a) the amounts continue to remain invested were to be considered if they were not in a period before 1st day of Jan., 1971. It was pointed out that it was even prior to that date. Therefore, it was submitted that the provisions regarding adequate interest and the adequate security were not applicable to this particular loan given to Agro-based Industry Pvt. Ltd. 8. We have considered the facts of the case and we are of the view that the provisions of s.13 as amended were not applicable to the loan which was given in the month of July 1970. It was therefore wrong on the part of the ITO to have included it on that ground. We therefore uphold the order of the AAC though on a different ground. The question of consideration of the additional evidence before the AAC therefore does not arise. 9. The appeal is dismissed.
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1979 (4) TMI 44 - ITAT CALCUTTA-A
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... ... ..... any deduction in respect of any liability. In conformity with the view so expressed by the Special bench of the Tribunal, we hold that the AAC was in error in reducing the aggregate of the amounts representing the values of the assets of Rs. 37,33,257 by the amount of the current liabilities and provisions of Rs. 13,47,317. In fact, the development rebate reserve of Rs. 6,100 is a reserve and does not represent either borrowed monies or debts owned by the assessee and the AAC was in error also on the score in excluding the said amount from the capital employed in the industrial undertaking. In terms of the view taken by the Special bench of the matter, we hold that the entire sum of Rs. 37,33,257 being the aggregate of the amounts representing the values of the assessee, should be treated as the capital employed in the industrial undertaking in terms of s. 80J of the Act. On this basis, the assessee firm will be entitled to deduction of Rs. 2,23,995 under s. 80 J of the Act.
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