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Showing 61 to 80 of 157 Records
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1979 (9) TMI 98
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... ... ..... r the business of the assessee and have not been expended exclusively for the said purpose, and further that the disallowance has been made by the ITO on flimsy grounds. Lastly, he supported the impugned order of the AAC. 7. The ITO has disallowed Rs. 25,000 our of a total claim of Rs. 59,120 on the ground that expenses incurred related to newspaper advertisement which cover the whole of the country, a situation over which the assessee has no control. The advertisement related to the business of the assessee and have not been shown to be an allowable expenditure under any provision of IT Act. These have been expended for the business of the assessee, as such, having considered all the aspects of the case, as also the submissions made by the rival parties before us, we are of view that the Revenue have not made out any case, justifying our interference with the impugned order of the AAC, which we do uphold, with the result that the appeal by the Revenue fails and is dismissed.
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1979 (9) TMI 97
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... ... ..... fact is not controverted that the assessee has since been granted instalments for paying the tax demanded for the assessment year under appeal by the ITO. The contention of the assessee that the payment of tax could not be made due to paucity of funds, gets ample support from the above fact. More so, levy of penalty is not automatic. The penalty has to be levied on the facts and in the circumstances of the case and in the present case, the contention of the assessee that the payment could not be made due to paucity of funds goes unrebutted. Accordingly, we are of the view, and do hold, of course respectfully following also the ratio of the decision of the Hon ble Punjab and Haryana High Court in the case of R.B.L. Banarsi Dass and Co. (P) Ltd.(1), that levy of penalty on the facts and in the peculiar circumstances of the case, in appeal before us, was not warranted. As such we cancel the orders of the lower authorities, with the result that the appeal succeeds and is allowed.
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1979 (9) TMI 96
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... ... ..... s property is located on Lower Circular Road. Again, that property is encircled by other properties as could be seen from the map contained in the paper-book. The Revenue on the other hand, submitted that there is no difference in the location of the two properties as was contended on behalf of the assessee. In this connection, it was highlighted that earlier 7/1A and 7/1B Lower Circular Road were formerly known as 49 Theatre Road. 10. We have considered the rival submissions and are of the view that both the parties have estimated the property in question to their advantage. Under the circumstances, we are of the opinion that the average of the two rates Rs. 7,000 per cottah and Rs. 16,000 per cottah, if adopted, would meet the ends of justice. This property should be valued at the rate of Rs. 11,500 per cottah. 11. The ITO is, therefore, directed to modify the assessment in the light of the observations made in this order. 12. In the result, the appeal is allowed in part.
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1979 (9) TMI 95
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... ... ..... leted from both the assessments. 4. The order cash credits are in the following accounts - 1972-73 Bhanlal Rajnikant Rs. 2,500 1975-76 Ambalal Gandhi Rs. 5,000 Suffice it to state that the assessee had not produced before the departmental authorities any satisfactory evidence about the genuineness of the loans. Shri Sathe, learned Counsel for the assessee, produced a cancelled pro-note said to be the document relating to the loan Rs. 2,500 on which an endorsement is made in indicating that the amount was repaid by cheque. In the first place this evidence was not produced before the departmental authorities and we do not seen any valid reason for admitting it. Secondly, it is conceivable that assuming that the repayment was made by a cheque, the cheque might have been a bearer cheque and no one can say who had cashed it. It follows that the addition relating to the corresponding interest is also sustained in each of the two assessments. 5. Both the appeals are partly allowed.
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1979 (9) TMI 94
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... ... ..... We have found that the labour pool activity, which is the subject matter of dispute was foisted on the assessee by force of circumstances. The assessee s receipts in the two years in this behalf amount to Rs. 27,42,798 and Rs. 10,39,063. The expenditure involved in the two years has been of Rs. 27,56,090 and Rs. 10,31,606. The facts according to us speak for themselves and it is not possible for us to hold that the rate of payments or receipts have been fixed by the assessee with a profit motive. If at all any profit or loss has arisen, it is accidental and not intentional. Therefore, we are also inclined to accept the assessee s submission that the object of public utility in the case of the assessee does not involve an activity of profit. Accordingly, we hold that the assessee Association is established for charitable purposes within the meaning of s. 2(15) of the IT Act and is entitled to benefit under s. 11 of the IT Act, 1961. 8. In the result, the appeals are allowed.
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1979 (9) TMI 93
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... ... ..... for the assessee has stated before us that he has filed revised returns of wealth for the assessee and assessments have been made accepting those revised returns by the Department from 1968-69 onwards. The revised return could not be filed for asst. yr. 1967-68, since limitation had lapsed. The fact that the Department has accepted the revised returns clearly supports the assessee s contention that the assessee did retain his half share in the sum of Rs. 5,12,000 which remained as his asset though the amount remained with his son who was charged with the duty of discharging tax liabilities of the assessee under the ED Act, IT Act and property tax and certain miscellaneous duties. The total amount due to the assessee has more than been received by him. That being the position, we completely agree with the learned AAC that no gift is involved in this case and he was correct in cancelling the assessment. The order of the AAC is confirmed and the department appeal is dismissed.
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1979 (9) TMI 92
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... ... ..... nnual value. There is no other purpose of s. 23. We, therefore, do not agree with the Revenue s submission that the provisions of the Expln. To sub-s (2) of s. 23 excludes the applicability of the second proviso to s. 23(1) only for a limited purpose, namely, computation of the annual value of a residential unit and for no other purposes. In our view, the Expln, to sub-s. (2) of s. 23 clearly excludes the applicability of the second proviso to s. 23(1) to the self-occupied property. We, therefore, hold that the expression so, however, that the income in respect of any residential unit referred to in cl. (a) or cl. (b) is in no case a loss occurring in the end of cl. (b) sub-cl. (ii) of the second proviso to s. 23(1) will apply only to that property which is not covered by s. 23(2). In view of these findings, the assessee is entitled to claim the set off loss relating to the house property against the other income of the year under appeal. 5. In the result, appeal is allowed.
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1979 (9) TMI 91
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... ... ..... of wrongful act would apply. This authority is misplaced by the Revenue s representative, inasmuch as, it relates to the amendment made in the substantive law. The question before the Supreme Court was as to what rate-either the unamended rate or the amended rate of penalty would be levied. The law prescribing the rate of penalty, in our opinion, is clearly a part of substantive law and, therefore, the law that was in force on the date of commission of wrongful act will apply. But this principle will not hold good in the case of procedural law. 12. Having considered the entire material available on record, we are of the considered opinion that Shri Chadha rightly argued that the IAC had lost his jurisdiction after 1st April, 1976. We, therefore, quash the impugned order of the IAC. The order of the IAC having been quashed on the legal objection itself, we do not enter into the merits of the case. The penalty is, therefore, cancelled. 13. In the result, the appeal is allowed.
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1979 (9) TMI 90
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... ... ..... rom bona fide belief that the offender was not liable to act in the manner prescribed by the Statute or expected, by the authorities. The ruling of the Hon ble Supreme Court will apply even to s. 18 (1)(c) after its amendment, whereby an explanation was added and the word deliberately was omitted. We have, therefore, no hesitation in coming to the conclusion that on the facts and circumstances of the case, the penalty under s. 18(1)(c) was not justified and was wrongly imposed by the IAC. It is, therefore, not necessary for us to discuss the alternative contention raised before us by Dr. Vaish that the penalty has to be struck down even on the ground of jurisdiction of the IAC to impose the penalty under s. 18(3) r/w s. 18(1)(c) of the WT Act, 1957 on or after 1st April, 1976, when the jurisdiction of the IAC to impose the penalty was taken away by the Taxation Laws (Amendment) Act, 1975 w.e.f. 1st April, 1976. The penalty is, therefore, cancelled. 10. The appeal is allowed.
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1979 (9) TMI 89
Countervailing duty - Writ jurisdiction - Determination of dutiability ... ... ... ... ..... as to whether the countervailing duty can be taken into account while interpreting the scope and ambit of exemption Notification has been carefully considered by the Customs authorities and the order of the appellate authority and the revisional authority cannot be said to be perverse or the view taken by them cannot be construed as unsustainable. It is now well-settled that it is for the Officer appointed under the Act to determine the question, whether an article attracts duty, the rate of duty and the applicability of exemption and unless their orders suffer from serious infirmities, the same cannot be disturbed in the exercise of writ jurisdiction. In my judgment, the three authorities below have come to a correct conclusion and the view taken by them is in consonance with the rules of interpretation and the provisions of the statute. In such circumstances, it is not permissible to disturb the same. 11.Accordingly, the petition fails and the rule is discharged with costs.
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1979 (9) TMI 88
Valuation - Related person/Favoured buyer ... ... ... ... ..... een the petitioner and M/s. Vijay Trading Corporation and that fact also indicates that the real manufacturer was M/s. Vijay Trading Corporation. The Excise authorities did not come to the conclusion that the agreement was bogus or not genuine and the mere fact that it is not in writing is not sufficient to conclude that the agreement was not at arms length. In my judgment, the orders of the Excise authorities are clearly erroneous and deserve to be set aside. The petitioner is also entitled to order of refund and the order of rejection of that claim is also required to be set aside. 7. Accordingly, the petition succeeds and the rule is made absolute in terms of prayer (a) of paragraph 19 of the petition. The respondents are also directed to refund the amount claimed by the petitioner after ascertaining the correctness of it. In the circumstances of the case, there will be no order as to costs. The respondents to refund the amount within a period of three months from to-day.
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1979 (9) TMI 87
Writ jurisdiction ... ... ... ... ..... or the purpose of giving interim relief as the only and final relief on the application...........An interim relief can be granted only in aid of and as ancillary to the main relief which may be available to the party on final determination of his rights in suit or proceeding...... Since there is no main relief asked for in this Writ Petition against the order at Exhibit B and the demand notice Exhibit D . It will be impermissible for this Court to exercise its jurisdiction under Article 226 merely to grant time to the petitioner to prosecute an appeal with an appropriate prayer for interim relief under Section 35 of the Act because he has a period of ninety days from date of order to prefer such an appeal. The petitioner should have been diligent on receipt of the order and taken steps to prosecute the appeal in time and obtain interim relief which he has asked now, from the appellate authority. For the above reasons, this Writ Petition is rejected without rule being issued.
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1979 (9) TMI 86
Paints and varnishes - Quasi judicial orders - Statute - Writ jurisdiction ... ... ... ... ..... nic pigments separately is accurate and that would also indicate that the decision arrived at by the Excise Authorities was clearly perverse. In my judgment, this is a fit case in which this Court should interfere with the orders passed by the Excise Authorities and grant relief to the petitioners. 13. Accordingly, the petition succeeds and the rule is made absolute and the orders passed by the Excise Authorities on June 11, 1968, February 6, 1970 and September 30, 1974 being exhibits G , J and L are quashed and set aside. The petitioners are also entitled to refund of amount as claimed in prayer (c) of paragraph 44 of the petition. It is not necessary to quash the trade notice issued in the year 1974 as it is now well-settled that the trade notice has not force of law. In the circumstances of the case there will be no order as to costs. The respondent should refund the amount mentioned in prayer (c) of paragraph 44 of the petition within a period of three months from today.
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1979 (9) TMI 85
Valuation - Filling charges would form part of the assessable value ... ... ... ... ..... ope of wholesale cash price at the factory gate. The Court held that if the wholesale price 5s available at the factory gate, then irrespective of the quantum of such sales at the factory gate the wholesale price would be the assessable value provided the transactions are at arm s length. 8. From this judgment, it follows that the cost of manufacture plus manufacturing profit which are the essential components of value for purposes of levy of excise duty are ordinarily synonymous with wholesale price at the factory gate, which includes the element of delivery. For purposes of charging excise duty incurred by a manufacturer, all expenses upto the point of sale at the factory gate would thus necessarily form part of the ex-factory price. 9. Accordingly, the Government of India set aside the impugned order-in-appeal and restore the order-in-original passed by the Assistant Collector by holding that the filling charges of Rs. 5/- per M.T. should form part of the assessable value.
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1979 (9) TMI 84
Carbon black is classifiable ... ... ... ... ..... emplation of Item 14.I (4a) of Central Excise Tariff. Accordingly, their contention is that the assessment of the goods during the relevant period would be under the residuary item namely 14.I(5) of the Central Excise Tariff. 4. Government have carefully considered the question whether the Carbon Black is an organic pigment or an inorganic one. After carefully considering the literature on the subject, Government observe that Carbon Black is an element which finds mention only in Inorganic Chemistry and it is more appropriately classifiable as an inorganic pigment only. 5. Since only organic pigments fall within the Item 14.I(4a), the Carbon Black manufactured by the petitioner would not be covered by the tariff entry. Its correct classification would accordingly be under Item 14.1 (5) of Central Excise Tariff during the relevant period. 6. The result is that the revision application succeeds and is allowed accordingly. Consequential relief may be granted to the petitioners.
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1979 (9) TMI 83
Adjudication finalised after seven years - Effect ... ... ... ... ..... y made a grievance that the Assistant Collector took seven years to adjudicate his case, which is not proper, and has tended to deprive him of an opportunity to explain his position properly. 3. Having regards to the facts and circumstances of the case therefore, Government allow the revision application.
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1979 (9) TMI 82
Appellate Order - Non-implementation of - Sugar - Admissibility of rebate ... ... ... ... ..... cific to ad valorem with effect from 1-3-1969. The wholesale price based on tenders contracted before 1-3-1969 having been applicable even after 1-3-1969 the petitioners rightly claim that from this price (which included the Central Excise duty) they should have been allowed abatement of the duty payable at the ad valorem rates for computing the assessable value. In view of the foregoing the revision application is allowed with consequential benefits to the petitioners. EDITOR S COMMENTS Non-implementation of an Appellate Order is an act of insubordination and amounts to disrespect and contempt of the appellate authority. It is regretted that the Government of India has not recommended any administrative action against the officer concerned even though it held that the non-implementation of Appellate Order in this case was improper and illegal. To maintain judicial discipline it is necessary that the officer found guilty of such a contemptuous act should be severely punished.
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1979 (9) TMI 81
Show Cause Notice/Demands once withdrawn cannot be re-issued ... ... ... ... ..... the labels attached to the reams. If the department had any doubts about the correctness of the declaration made on the labels it was necessary for it to adduce satisfactory and cogent evidence by undertaking physical verification of the weight that the declared weight of the ream did not in fact include the weight of the paper wrapper. No such evidence has been brought on record, to prove the fact nor even an attempt to collect such evidence appears to have been made by the authorities below. In the circumstances the contention of the petitioners in the revision applications that the declared weight of the ream on the label in fact included the weight of the paper wrapper also remains uncontroverted. As this contention of the petitioners has not been disproved, the demands for the short levy in question which are not hit by the mischief of time bar are also not maintainable in law. 8. In the result the other two revision applications also succeed and are allowed accordingly.
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1979 (9) TMI 80
Tariff Item 68 - Scope ... ... ... ... ..... He further contended that the goods involved had been classified by the Department under Tariff item 14E since 1962. Only when Tariff item 68 was introduced in 1975 Budget, the Department reclassified the goods falling under Tariff item No. 68. The goods involved are also exempted as these are cleared in bulk in a quantity which is more than 1000 doses. They contain a single therapeutical agent and sold in a form not meant for use as such in therapy. 2. In view of the above facts, the petitioners contention that goods clearly fall outside the purview of Item 68 Central Excise Tariff cannot be controverted. The revision application is accordingly allowed.
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1979 (9) TMI 79
Revision - Driage loss in tobacco - Criteria for fixation - Losses due to driage ... ... ... ... ..... anarayan Murty on this aspect is that unless an allegation is made against the petitioner that he has removed the tobacco illegally or stealthily, the driage pleaded by the petitioner ought to have been accepted. It is not possible to accede to this submission. It is not possible to. the Authorities to say whether the petitioner has illegally or stealthily removed any material. It cannot be said that unless such removal is proved, the loss pleaded by the reason must be accepted. As stated above, the quantum of loss is a matter for determination by the appropriate authorities having regard to all the relevant circumstances. The fact that an appeal and revision are provided against the orders of the Collector is a sufficient guarantee against arbitrariness. Both the authorities have rejected the petitioner s claim for higher percentage of loss. Therefore, I do not find any grounds warranting interference in these two Writ Petitions and they are accordingly dismissed. No costs.
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