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Case Laws
Showing 61 to 80 of 205 Records
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1980 (7) TMI 145
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... ... ..... der s. 40(b). The HUF is an entity different from the Individuals composing it. Therefore, the interest paid to the HUFs cannot be considered as interest paid to a particular partner who joined the firm in his individual capacity. The ld. counsel for the assessee has laid down this proposition before us on the authority of the Andhra Pradesh decision reported at 120 ITR 502. This decision, we find, supports the assessee s view points. On behalf of the Revenue reference has been made to Allahabad High Court decision in the case of London Machinery Co(2). That decision has no application in the present case since in that case the assessee was partner in the firm in a representative capacity while in the present case Svs. Kashiram and Rattanlal joined the firm in the individual capacity. We hold, therefore, that the interest paid to the HUF was rightly excluded from the assessment by the ld. AAC and as such we upheld his decision. 5. In the result, the Departmental appeals fail.
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1980 (7) TMI 144
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... ... ..... ,096 50,000 66,530 addition made assessment order annulled pending in Tribunal It is no doubt true that in the year under consideration the assessee rsquo s margin of profit has felled a little low by 2 . But that itself does not entitle the revenue to reject the accounts and make huge additions to the disclosed profits of the assessee. From the above submission which was discussed at the time of the hearing before the Tribunal, the ld. Rep. for the revenue was present and has not been able to challenge. Merely because the assessee rsquo s disclosed book results were little low the addition could not have been made and further the assessee has given valid explanation both before the ITO and the CIT(A) which has been adequate and was not rejected by both the authorities. In our opinion. These additions of Rs. 50,000 and Rs. 10,000 have wrongly been made and are required to be deleted. They will now be deleted from the assessment. 5. In the result, the appeal is partly allowed.
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1980 (7) TMI 143
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... ... ..... Tribunal it is urged that on a mere receipt produced before the AAC the AAC, should not have directed the ITO to entertain the applications in form Nos. 11 and 12. We are, however, not convinced with the reasoning on the part of the Revenue. If the acknowledgement slip No. 51709 dt. 30th Dec., 1975 shows a receipt of the applications in form Nos. 11 and 12 alongwith the partnership deed and the returns of income, we see no reason why his applications should not be entertained on merits. The ITO will in addition to comply with the order of the AAC also satisfy himself that the receipt No. 51709 is in respect of the applications in form No. 11 and 12 also. If the receipt shows the delivery of these two applications in the IT Office as stated by the AAC, the assessee will be entitled to registration on his satisfying the ITO about the delay in the submission of the applications and the genuineness of the firm. 3. The appeal filed by the Revenue will be treated as partly allowed.
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1980 (7) TMI 142
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... ... ..... Counsels for the assessee Shri D.C. Bhamore and the ld. Authorised representative of the Department Shri V.P. Shrivastava. We have considered the respective pleas of both the sides and are of the view that the addition made by the authorities below is liable to be knocked off. We have seen that in the earlier two assessments years the account books maintained by the assessee in respect of the money-lending business were accepted and no addition was made by the authorities. Likewise, in the asst. yr. 1977-78 though the same Cahna Bahi was maintained by the assessee but there also the money-lending account was not tinkered with by the authorities below. Thus, on the totality of the circumstances, we do not think the authorities below could be said to be justified in disturbing the result shown by the assessee in the money-lending business, and as such, we delete the addition made by the ITO and confirmed by the AAC. 5. In the result, the appeal filed by the assessee is allowed.
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1980 (7) TMI 141
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... ... ..... ed at less than 1,000 per acre and if that was so the appellant had much more income than he had invested in the firm of Rameshkumar and Sureshkumar. In view of these facts the addition made by the ITO for the unexplained cash credit of Rs. 22,00 was not justified. He, therefore, deleted it. 8. Revenue has, therefore filed an appeal against the order of the AAC deleting the addition of Rs. 22,000. At the time of the hearing, however, the ld. Deptl. Rep. has not been able to controvert the voluminous evidence produced by the assessee both before the ITO and the AAC. In fact this was the evidence relied upon by the AAC while giving relief to the assessee. If the evidence relied by the AAC cannot be controverted, in our opinion, the decision of the AAC too cannot be interfered with. In our opinion the AAC has deleted the addition of Rs. 22,00 for good and valid reasons. It is upheld. 9. The appeal filed by the assessee is allowed and the appeal filed by the Revenue is dismissed.
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1980 (7) TMI 140
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... ... ..... after the due date, the ITO was not bound to pass any orders on those applications. We do not find any force in this objection. It may be, as held by the Andhra Pradesh High Court in the case of T. Venkatara Krishnaiah and Co. vs. CIT, A.P.(1), that omission of the ITO to pass any order on the assessee s applications for extension of time does not have the effect of extending the time, but in the absence of any communication from the ITO, the assessee would be reasonable in entertaining a bona fide belief that the extension of time had been allowed. In our opinion, unless any communication is sent by the ITO to the assessee in regard to the fate of his applications for extension of time, he has not way of knowing about it. In such circumstances, he would be, in our opinion, justified in entertaining a bona fide belief that the time applied for has been allowed. In the circumstances, we decline to interfere with the order of the AAC. 6. In the result, the appeal is dismissed.
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1980 (7) TMI 139
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... ... ..... hether such allowance of interest was to be given against the head Income from business in the light of the findings of his predecessor, which were not challenged by the Dept. in an appeal before the Tribunal. It is for this reason that since the AAC had not considered it necessary to set aside his orders under s. 154 and restore the matter to his file for fresh disposal in accordance with law. In pursuance of these orders of the Tribunal the AAC has now passed the present orders under appeal directing the ITO to allow the mortgage interest amounting to Rs. 5,558 and Rs. 5,660 against the business income as deductions from the assessee s business income in the two assessment. yrs. We are unable to see anything wrong in this order of the AAC, which is in conformity with the directions given by the Tribunal and also the findings recorded by the earlier AAC. We, therefore, do not see any reason to interfere with the orders of the AAC. 3. In the result, the appeals are dismissed.
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1980 (7) TMI 138
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... ... ..... at the counsel never did so and nor did the assessee give any instructions to the counsel to admit the default. Apart from this, we do not think that the ld. AAC could possibly use the admission for the Asst. yr. 1975-76 in the appeal for the Asst. yr. 1974-75. Each assessment year is an independent year and one cannot be mixed up with the other. Apart from this, according to the recent decision of the Punjab and Haryana High Court in Chhat Mull Aggarwal vs. CIT (1), the admission made by an assessee is not binding on him and the AAC is bound to go into the merits of the case. In the present case, there was no admission made for the Asst.yr. 1975-76. Consequently, the AAC was wholly unjustified in dismissing the assessee s appeal summarily. 5. In the result, therefore, we set aside the order of the AAC and restore the appeal to his file with the direction that he should decide it afresh on merits in accordance with law. The appeal shall stand allowed for statistical purposes.
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1980 (7) TMI 137
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... ... ..... ourable to the assessee. All the ingredients of a debt were present it was a present liability of an ascertainable amount. 15. In view of the observations of their Lordships as stand reproduced above, we also restore this facet of the case to the files of the WTO with the directions that the claim of the assessees made in lieu of deduction claimed for income-tax and wealth-tax liabilities relating to preceding years in computation of net wealth of the assessees for the assessment years under appeal shall be dealt with afresh in accordance with law and in the light of the observations of their Lordships of the Supreme Court and for the purposes the assessees shall be given reasonable opportunity of being heard. 16. The orders of the lower authorities on the above scores are set aside and the cases are restored to the files of the WTO with the directions as above. 17. In the result, all the appeals by the assessees shall be taken, for statistical purposes, to have been allowed.
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1980 (7) TMI 136
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... ... ..... re the AAC and has contended that the notices were properly served, and accordingly has opposed the contention raised by the ld. counsel for the assessee. 6. We have since perused carefully the original Acknowledgement Slips relating to the service of notices by the AAC on the assessees and feel satisfied that there has been no proper service of notices on the assessees, since the Acknowledgement Slips bear some illegible initials and the perusal of these slips do not inspire the confidence that the notices about the dates of hearings have been served on the respective assessees. 7. In the light of our above findings, we restore all the appeals to the file of the AAC of WT, Gauhati Range, Gauhati, with the directions that the subject matter be re-heard and decided afresh, in accordance with law and after giving a reasonable opportunity of being heard to the assessees, with the result, for statistical purposes, the appeals by the assessees, shall be taken to have been allowed.
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1980 (7) TMI 135
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... ... ..... existence, hence there could not be said to be any change in the constitution of the firm when the sole surviving partner on a subsequent date joined hands with another and constituted a new entity-a new firm. Their Lordships of the Gauhati High Court were not seized of a matter where one of the partners having died, the sole surviving partner could not continue the firm, since the firm came to an end by the death of one of the two partners and a single partner could not constitute a firm within the meaning of s. 4 of the Indian Partnership Act, 1932 but their Lordships were seized of the facts, where there were three partners, apart from a minor who was admitted to the benefits of partnership, and subsequently the widow of the deceased partner was taken as a partner, hence the above observations-findings of their Lordships, are distinguishable vis-a-vis the facts of the assessee s case in appeal before us. 17. In the result, the appeal by the Revenue fails and is dismissed.
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1980 (7) TMI 134
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... ... ..... C out of car expenses and depreciation in respect of the cars of the assessee company. 5. The last contention relates to the disallowance of Rs. 2,000 out of the directors travelling expenses. This disallowance was made by the ITO on estimate basis r. 6D of the IT Rules, 1962. The ITO did not specify any inadmissible items but generally stated that certain items were of inadmissible nature. The AAC simply confirmed the disallowance and the assessee s counsel had placed the details of the travelling expenses before the ITO. However, no copy was filed before us. Therefore, we are not in a position to finally decide the point. In our opinion, the point requires further investigation in as much as the ITO had not specified the items of inadmissible nature. Accordingly, we set aside the order of the AAC and of ITO and restore the matter to the file of the ITO for a fresh decision in the light of the observations and according to law. 6. In the result, the appeal is partly allowed.
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1980 (7) TMI 133
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... ... ..... cond marriage were there. Though it may not be a relevant factor but the fact remains that whereas the tax levied before the appellant order of the Tribunal was of Rs. 1,380, Rs. 1,240 and Rs.1,853 only in these three years the penalties levied were in sums of Rs.36,832, Rs. 21,580 and Rs. 4,520 respectively. The ld. Deptl. Rep. had stated that earlier the assessee had been filing the returns but we consider that fact should go in favour of the assessee and not against her in normal circumstances, the assessee had abided by the loss but, and it was only when the misrounding circumstances became too bad and dark that, she had to think of some more important things than merely to file the returns. It was not the loss of the property that was material to her but what was more important to her was the loss of marriage which she was trying to save, and she was justified in doing so. The penalties levied shall accordingly be deleted. 5. In the result, the three appeals are allowed.
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1980 (7) TMI 132
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... ... ..... ustification for allowing separate items of expenditure when the net income from the contract has been estimated. Thus, this claim of the assessee fails and this ground is rejected. 10. The last contention is that the CIT (A) was wrong in not allowing full depreciation on cars maintained by the assessee. The authorities below have disallowed 50 per cent of the depreciation on cars as relating to the personal use of the cars by the partners. There are two cars maintained by the firm and there are four partners. It is submitted that these care are used mainly for purposes of the business and the extent of personal use, if any, is negligible. keeping in view the facts of the case, we consider that it would be fair and reasonable to disallow only 1/3rd of the depreciation on the cars as relating to the personal use of the cars by the partners. The ITO is directed to make the necessary modification in the assessment order. 11. In the result the appeal is partly allowed, as above.
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1980 (7) TMI 131
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... ... ..... alty was not exigible on facts. The Deptl. Representative on the other hand relying on the orders of the authorities below submitted that the penalty as levied was justified. 3. After hearing both the parties, I am of the view that the penalty is not exigible on facts. The assessee did not have the intimation of his share in different firms in which he was a partner. Therefore, his estimate of income could not be taken as untrue or one which he had reasons to believe to be untrue. I, therefore, cancel the penalty on facts. Apart from that the default is of venial nature for which penalty need not have been levied Hindustan Steel Ltd s case.(1). 4. In the result, the appeal is allowed.
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1980 (7) TMI 130
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... ... ..... sment framed in pursuance of this notice is illegal and is, therefore, annulled . Since we are in agreement with the AAC, we do not think it necessary to reiterate the position of law explained by him. His order annulling the assessment is in accordance with law and needs no interference at our hands. 6. In deciding the matter as above, we have taken into consideration the authority cited by revenue. The authority cited is applicable as a binding force within the jurisdiction of the Hon ble High Court. Since the appeal relates to the State of Jammu and Kashmir, the authority is not binding. On the other hand, we have other authority cited in the order of the AAC and therefore, the question is of difference of judicial opinion before us. We have guide lines by the Supreme Court that in such a situation, the interpretation that favours the subject and is reasonably possible, should be adopted. We have followed this principle in arriving at the above decision. Appeal dismissed.
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1980 (7) TMI 129
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... ... ..... (b), a reference has been made to order of the AAC dt. 23rd Nov., 1974 by the ld. Counsel for the assessee and the Revenue has not brought to our notice any other order. But in so far as this order is concerned, this is subsequent to the issue of the notice under s. 17 on 26th March, 1974 because the order is dt. 23rd Nov., 1974. We do not accept the contentions and the arguments raised by the AAC that the WTO had information from the order of the AAC. However, even if it were to be accepted, this apparently is inconsistent with the facts of the case and cannot hold water as the order of the AAC is subsequent to the issue of notice under s. 17 and the satisfaction on the basis of the information has to be prior to the issue of the notice. 8. We, are, therefore, convinced that the WTO acted without jurisdiction. It was merely a change of opinion and his proceedings were without legal authority. The orders of the authorities below are, therefore, cancelled. 9. Appeal allowed.
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1980 (7) TMI 128
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... ... ..... from the Revenue. The penalty, therefore was rightly cancelled by the AAC. 6. After giving careful thought to the rival submissions and what is recorded by the authorities below, we are in agreement with the submissions made on behalf of the assessee that there was no mala fide act of furnishing inaccurate particulars of income or concealing the income in showing the total of purchases at Rs. 2,55,386.71. The mistake detected is, therefore, not one which should be visited with penalty under s. 271(1) (c). After perusing the explanation given by the assessee before the ITO on 17th Nov., 1978 which the ITO could not have considered and the orders of authorities below, we find that the order of the AAC does not need any interference at our hands. We would like to record that as a matter of fact, it was verified from ITO s record that the assessee had not prepared and submitted any balance sheet for the assessment year for which the penalty had been levied. 7. Appeal dismissed.
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1980 (7) TMI 127
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... ... ..... the Assessing Officer by writing one line only, reproduced below Trade orders of Rs. 50,000 and Urban tax Rs. 42,646 payable disallowed in the absence of any documentary evidence. The AAC lifted the addition in para 6 of his order, which is in the following terms. In the asst. yr. 1975-76, the appellant objects to the disallowance of Rs. 50,000 as sundry debtors. The WTO has added back Rs. 50,000 as the trade creditors in the absence of any documentary evidence. I fail to understand that the WTO has never asked for any documentary evidence and he has arbitrarily disallowed the sundry creditors of Rs. 50,000. He is, therefore, directed to allow the sundry creditors at Rs. 50,000. The net wealth of the assessee is reduced by Rs. 50,000 for the asst. yr. 1975-76 on this account also. By observing that any other decision than the one reached by the AAC would have been incorrect and wrong, we confirm his order on the above issue. 7. In the result, Revenue s appeals are dismissed.
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1980 (7) TMI 126
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... ... ..... er issued by him. Having regards, to the totally of the circumstances we think that in the interests of the justice this case should go back to the ITO for re-examination of the genuineness of the loan transaction of Rs. 27,000 and interest payment thereon, as appearing in the assessee s books of account, with reference to the credit-worthiness of the loan creditor Sri Agarwalla who was assessed to income-tax on the interest income that was claimed have been received from the assessee. We, therefore, vacate the order of the AAC on this point and set aside the assessment for this limited issue with the direction of re-doing the same in the light of the observations that we have made above and after allowing the assessee opportunity of being heard to reconcile the discrepancies pointed out by the ITO in the loan account between Sri Agarwalla and the assessee. (7) In the result the appeal shall be treated as allowed for statistical purposes. 4. The Misc. Application is allowed.
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