Advanced Search Options
Case Laws
Showing 101 to 120 of 157 Records
-
1979 (9) TMI 58
Disallowance Of Cash Payments ... ... ... ... ..... s rendered, by the assessee to such payee , it is clear that there is a limited area within which payments by book adjustment can be considered to fall within the exception to the rule of prohibition contained in the said provision of law. According to the said cl. (e) it is the expenditure in respect of which the payment by way of book adjustment is made to the payee who directly supplied the goods or services to the assessee, that falls outside the mischief of the rule of prohibition. In this view of the matter, we are of the opinion that the Tribunal was right in holding that the prohibition in s. 40A(3) was attracted even in cases of payments by book adjustment and where the book adjustments were not made by the assessee directly in the accounts of the party who supplied the goods or services to the assessee. Thus, the answer to this question is in the affirmative. For the reasons recorded above, both the questions have been answered accordingly with no order as to costs.
-
1979 (9) TMI 57
Agricultural Land, Application For Reference, Question Of Law ... ... ... ... ..... 1, and consequently, the Commissioner was not precluded from revising the assessment under section 263 ? Before parting it may be made clear that the learned counsel for the assessee while arguing on question No. 3, was apprehensive that certain observations and the conclusions of the CIT after setting aside the order of the ITO and remanding the case to him, with the directions that the ITO should frame fresh assessment after giving a reasonable opportunity to the assessee to explain his case, may not be used against him while deciding the matter by the ITO. We think these apprehensions are without any basis. However, it is made clear that any observations made by the CIT are only limited to the order passed by him and will not be used against the assessee by the ITO while deciding the matter afresh. With these observations, we decline the prayer for reference so far as the third question claimed by the assessee is concerned. No order as to costs. B. S. DHILLON J.--I agree.
-
1979 (9) TMI 56
Works Contract ... ... ... ... ..... of the supply made by the department keeping to itself the ownership of the materials supplied. The difficulty with which the assessee has faced, since the very beginning of these assessments, has been the absence of stock register for the materials received from the department or of materials purchased by the assessee itself. The absence of the issue register also matters in this regard. Keeping these facts in view, the Tribunal came to the conclusion that-- ...There are no other circumstances to show that the materials were throughout under the control of the department and were not under the control of the contractor except for the purpose of using it in the construction. In such circumstances, we are of the view that the gross payment should be adopted as the basis for working out the profit... On the facts and in the circumstances of this case, therefore, we have got to answer the question in the affirmative and against the assessee. There will be no order as to costs.
-
1979 (9) TMI 55
Income Escaping Assessment ... ... ... ... ..... ds to taxing all amounts that had escaped assessment. In other words, where the ITO validly initiates reassessment proceedings under s. 147(a) in respect of a particular item, he can, during the reassessment proceedings, deal with all items falling under cl.(a) or cl. (b) though they may not have been dealt with specifically in the notice, that is to say, his jurisdiction is not limited only to the items in respect of which the notice was issued. As we have already observed above, the term such income in s. 147 refers only to the entire escaped income. We are, therefore, of Opinion that in the facts and circumstances of this case, the Tribunal was right in holding that the jurisdiction of the ITO under s. 147 of the I.T. Act, 1961, was confined to the assessment of such income as had escaped assessment and did not extend to revising or reopening the whole assessment. Accordingly, we answer the question referred to us in the affirmative, but there will be no order as to costs.
-
1979 (9) TMI 54
Assessment Notice, Jurisdiction To Reassess, Reassessment Notice ... ... ... ... ..... prising that had in fact the proceedings been closed by an order or noting, such a noting should not have been produced before the AAC or the Tribunal. The answer to questions Nos. 1 and 2, which the petitioner applies for being referred to this High Court, turns purely upon the construction of the above noting. The construction is so plain and obvious that it would be a waste of time to ask the Tribunal to state the case and refer questions Nos. 1 and 2 to us. If the ITO had no jurisdiction to reopen the assessments, questions Nos. 3 and 4, on which the petitioner wants a reference, would not arise and become academic, because these are questions which relate to the merits of the reassessment. However, we may point out that these two questions have already been answered against the department by this High Court in Commr. of Surtax v. Ballarpur Industries Ltd. 1979 116 ITR 528 (Bom). In the result, this application fails and is dismissed and the rule is discharged with costs.
-
1979 (9) TMI 53
Income Tax Act, Legal Representative, Previous Year ... ... ... ... ..... preme Court in CIT v. Amarchand N. Shroff 1963 48 ITR 59 (SC) and their lordships held thus By section 24B the legal personality of a deceased assessee is extended for the duration of the entire previous year in the course of which he died and, therefore, the income received by him before his death and that received by his heirs and legal representatives after his death but in that previous year becomes assessable to income-tax in the relevant assessment year. We are, therefore, of the opinion that the Tribunal was right in holding that the brokerage received up to the death of the deceased and arrears of brokerage received by Dr.Raghunath after his death but before the end of the previous year were liable to be clubbed together and assessed under S. 159 of the Act. As a result of the discussion aforesaid, our answer to the question referred to us is in the affirmative and against the assessee. In the circumstances of the case, we make no order as to costs of this reference.
-
1979 (9) TMI 52
Assessment Proceedings, Penalty Proceedings, Tax Authorities ... ... ... ... ..... an item as not amounting to income which may have been accepted as income in assessment. But that is altogether a different matter. The tax which would have been avoided if the income as returned by the assessee had been accepted as correct can be only determined by taking the tax in the assessment proceedings and by determining the tax which would have been assessed if the income as returned by the assessee had been accepted and, then, by deducting the latter from the former. In our opinion, the Tribunal went beyond its jurisdiction in reopening the assessment in penalty proceedings for purposes of determining the quantum of penalty payable under cl. (iii). For the reasons given above, our answers to the questions are in the negative, in favour of the department and against the assessee. It would, however, be open to the Tribunal to redetermine the amount of penalty within the maximum and minimum prescribed by cl. (iii). There shall be no order as to costs of this reference.
-
1979 (9) TMI 51
Assessed Income, Burden Of Proof, Levy Of Penalty, Total Income ... ... ... ... ..... led income. Mr. Rajgarhia has laid great reliance upon the decision of the Delhi High Court in the case of Durga Timber Works v. CIT 1971 79 ITR 63 for the proposition that the department is not bound to adduce independent evidence, if concealment of income is admitted by the assessee. It will at once be seen that this decision has hardly any application to a case where there is no admission to the concealment of income. The assessee might concede to the addition of an amount to its income, but that is not the same thing as admitting its guilt of having concealed its income. The two things are wholly distinct, and there should be no confusion between admission of concealment of income and conceding to the addition of a certain sum to income. Having regard to the discussion made above, the question is answered in the affirmative and against the department. Since nobody has appeared on behalf of the assessee, there will be no order as to costs. NAGENDRA PRASAD SINGH J.-I agree.
-
1979 (9) TMI 50
Assessed Income, Burden Of Proof, Cash Credits, Contract Business ... ... ... ... ..... ed with the onus of proving that the assessee was guilty of concealment or filing of inaccurate particulars, but the onus was on the assessee to prove that the returns filed by him was not due to any gross or wilful neglect on his part. In view of the principle laid down in Rukmani Bahu s case 1979 116 ITR 468 (All), we are unable to approach this case on the lines indicated the material on the basis of which the Tribunal has recorded the finding that the assessee concealed its income (sic). The facts relied upon by the Tribunal for reaching this conclusion were relevant, and constituted sufficient material on the basis of which such a conclusion could be reached. The assessee has also not been able to discharge the onus that lay on him in view of the Explanation, and as such the penalty was rightly imposed. We, accordingly, answer the question in the affirmative, in favour of the department and against the assessee. In the circumstances, there shall be no order as to costs.
-
1979 (9) TMI 49
Firm Assessment, Set Off ... ... ... ... ..... d to him, the principle should be extended to cases where interest has been received by the firm from only one of the partners while it has paid interest to other partners. We see no legal or statutory basis for accepting this contention, for, if this principle is accepted, it will render the provisions of s. 40(b) ineffective. Coming now to the second question, the ITO had committed a clear error of law in adjusting the amount of interest received from the fourth partner from the amount of interest paid to the three partners for the reasons already indicated. It is settled that such a palpable mistake could be corrected under s. 154 of the Act. The third question is covered by the reasoning given by us while answering the first question. We, accordingly, answer all the three questions in the affirmative, in favour of the department and against the assessee. The department is entitled to its costs which we assess at Rs. 200. Counsel s fee is also assessed at the same figure.
-
1979 (9) TMI 48
Capital Gains Tax, Extinguishment Of Right, Partner From Firm, Retirement Of Partner ... ... ... ... ..... of the firm. This fact distinguishes the case from that of Tribuvandas 1978 115 ITR 95 (Bom). The other decision of the Bombay High Court, namely, Aslot s case 1978 115 ITR 255, turned on the interpretation of the retirement deed, and the view that the assignment of the interest of the retiring partner amounted to a transfer was based on the principle laid down in the case of Tribuvandas 1978 115 1TR 95 (Bom). We are of the view that none of these cases can apply to the facts of the present case as all that the assessee received on his retirement from the firm in respect of his share in the goodwill was its value to which he was all along entitled. The case did not fall within the purview of s. 2(47) of the Act and a fortiori s. 45 becomes inapplicable. We, accordingly, answer the question in the affirmative, in favour of the assessee and against the department. The assessee is entitled to its costs, which is assessed at Rs. 200. Counsel s fee is assessed at the same figure.
-
1979 (9) TMI 47
Capital Asset, Levy Of Capital Gains Tax ... ... ... ... ..... ided in favour of the assessee and against the revenue. As regards question No. 2 in I.T. Reference No. 99 of 1974, in view of our finding on question No. 1, the said question need not be answered as in view of the findings of fact regarding the question whether the sale in question was a sham transaction or not, and if it was not a sham transaction as to how much were the actual sale proceeds, the amount of capital gains tax shall have to be determined accordingly. In view of our findings on question No. 1 in I.T. Ref. No. 99 of 1974, the questions of law referred to this court in the I.T. References Nos. 98 and 100 of 1974 need not be answered as the penalty proceedings shall follow the decision in the main case on question No. 1 in I.T. Reference No. 99 of 1974, which question shall be determined by the Tribunal after recording its finding on the real question involved in the case. We order accordingly. However, there will be no order as to costs. J. V. GUPTA J.--I agree.
-
1979 (9) TMI 46
Assessment Order, HUF Property ... ... ... ... ..... hania in the assets of the HUF. This being the position and as no opportunity had been given by the Assistant Controller while making the final assessment, although in view of the pronouncement of the Supreme Court no such opportunity need have been given, the order passed by the Appellate Controller directing such an opportunity to be given was correct. The decision of the Kerala High Court in the case of Ameen Pillai Rawther Hassan Kari Rawther v. Asst. CED, AIR 1966 Ker 100, in so far as it lays down that no liability for estate duty can be imposed on persons who have not been made parties to the proceedings, does not, in view of the pronouncement of the Supreme Court in Madan Lal Lohia s case 1977 108 ITR 627, lay down the correct law. We, accordingly, answer both the questions in the affirmative, in favour of the department and against the assessee. The department is entitled to its costs, which are assessed at Rs. 200. Counsel s fee is also assessed at the same figure.
-
1979 (9) TMI 45
Association Of Persons, Firm ... ... ... ... ..... of income. In that case, the Supreme Court was dealing with s. 4(3)(i) of the 1922 Act and with a trust the activities of which were not limited within the taxable territories. It was in that context that it was observed that accumulated involved a conscious act in praesenti giving a clear indication on the part of the trustee to set apart the income for future spending on religious or charitable purposes within the taxable territories. As pointed out by us, in the instant case, it is not in dispute that the trust is concerned With charities within India and, therefore, any part of the income which is not applied in a year and is carried forward can be said to have been accumulated for application to charitable and religious purposes in India within the meaning of sub-s. (1)(a). For the reasons given above, we answer question No. 1 in the negative and question No. 2 in the affirmative in, favour of the assessee and against the department. There shall be no order as to costs.
-
1979 (9) TMI 44
Firm Assessment, Registered Firm, Share In Firm, Unregistered Firm ... ... ... ... ..... without any violence to the principle of double taxation in respect of the same income. The Tribunal further held that there was no question of option being exercised by any assessing authority. In those circumstances, this court held that the assessee was not entitled to the benefits of registration and that the assessment as an unregistered firm was proper and legal. Hence, that case would not, in any way, advance the claim of the revenue. For all the reasons stated, our answer to the question is in the negative holding that the assessment on the unregistered firm was improper and illegal in view of the admitted fact that the ITO had already elected and opted to assess the share income of the partners individually knowing fully well that he could assess the assessee in the hands of an unregistered firm if the claim of the assessee for registration under a. 26(A) was ultimately refused. The respondent-assessee shall have the costs of this reference. Advocate s fee Rs. 300.
-
1979 (9) TMI 43
Computation Of Capital, Initial Depreciation, New Industrial Undertaking ... ... ... ... ..... ing the conference hall so as to add to its utility and appearance. We, accordingly, answer the first and third questions in the affirmative, in favour of the assessee and against the department. The second question is answered against the assessee and in favour of the department. The fourth question is answered by saying that the computation had to be done in accordance with r. 19A. The fifth question is answered by saying that the loans taken by the assessee could not be deducted while computing its capital which had to be done under r. 19A and not r. 19. The sixth question is returned unanswered. The seventh question is answered in the affirmative, in favour of department and against the assessee. The eighth question is answered by saying that the amount of Rs. 26,635 should have been added to the cost of erection for purposes of calculating the assessee s claim for initial depreciation under s. 32(1)(v) of the Act. In the circumstances, parties shall bear their own costs.
-
1979 (9) TMI 42
Failure To Furnish Information, Mens Rea ... ... ... ... ..... the Commissioner has to exercise his discretionary power fairly, reasonably and judiciously. In view of the finding of the Commissioner that the omission or default on the part of the assessee in this case, being the first of its kind and the omission not being deliberate or mala fide, we feel it just and proper to hold that the Tribunal has to consider, on merits, whether this is a fit case for the levy of fine and if it is a fit case to levy fine, what is the amount of fine to be levied. The Tribunal has not considered this aspect on merits as it felt that without mens rea no fine can be levied under s. 285A(2). We, therefore, answer the question in the negative holding that the Tribunal was net justified in cancelling the fine levied by the Commissioner on the ground that no mens rea has been established, on a proper interpretation of the provisions of s. 285A(2) of the Act and direct the Tribunal to dispose of the appeal on merits and pass final order thereon. No costs.
-
1979 (9) TMI 41
Reasonable Classification ... ... ... ... ..... ion. The said sub-rule only empowers the IAC to reduce the interest leviable under the Act, if in his opinion there are good grounds to do so in a genuine case. This is a provision favourable to the appellants and other assessees. But the argument was that as there are no guidelines for the exercise of the power under that sub-rule, levy of 12 interest under s. 217 becomes violative of art. 14. We fail to see that there is any vice in sub-r. (5) of r. 40. On the other hand, it is favourable to assessees, as they have the opportunity of getting the interest reduced. Further no provision of an enactment could be struck down on the ground that a rule framed thereunder is violative of any constitutional provision. If any rule is found to be ultra vires, only the rule can be struck down and not the provision of the Act under which it is framed. Hence, we reject this contention. For the reasons stated above, we make the following order (i) The appeals are dismissed. (ii) No costs.
-
1979 (9) TMI 40
Assessment Order, Assessment Proceedings, Failure To Disclose Material Facts, High Court, Notice For Reassessment, Original Assessment
-
1979 (9) TMI 39
Fixed Assets, Written Down Value ... ... ... ... ..... real value of the assets was less than the depreciated value shown in the balance-sheet and further, to show to what extent the value of the assets specified in the balance-sheet was in excess of the real value. Mere submission that the value mentioned in the balance-sheet was inflated is not enough unless cogent material is brought on record to prove the extent to which the value given in the balance-sheet might be in excess of the real value of the assets. We, therefore, hold that the written down value of the fixed assets of the assessee as per income-tax returns cannot be considered as real value of such assets, under s. 7(2)(a) of the W.T. Act, 1957, merely because a note has been made in the balance-sheets that some arrears of depreciation could not be adjusted, unless material is produced by the assessee before the WTO to show that the written down value as per the income-tax assessments represented the true value of the assets. The reference is answered accordingly.
....
|