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Case Laws
Showing 61 to 80 of 226 Records
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1982 (4) TMI 179 - ITAT MADRAS-B
Commencement Of Business, Foreign Company, Revenue Expenditure ... ... ... ... ..... nt case. As already stated, in our view, the transaction involving allotment of shares by the assessee-company is in pursuance of the agreement between TII and Diamond for carrying on the business in what may be called a partnership through the medium of the assessee-company and it relates to the very framework or the formation and existence of the assessee-company by way of its shareholding and does not involve any payment of any sum by the assessee-company or transfer of any asset owned and possessed by it to the foreign company, Diamond or the Indian Company TII the question as to whether the assessee acquired any capital asset by any expenditure incurred by it or the expenditure was only of a revenue nature does not arise for consideration. In the circumstances, we rejected the assessee s claim and uphold the findings of the departmental authorities that the assessee is not entitled to any deduction of the amounts claimed by it. 21. In the result, the appeal is dismissed.
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1982 (4) TMI 176 - ITAT MADRAS-A
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... ... ..... furnished though the AAC in appeal rejected the evidence on the ground that the returns are filed long after the statements before the Customs Authorities. It is stated that the business carried on by the assessee and other such persons is small involving no outlay by way of expenditure on any tenancy of premises or large scale investments and the transactions are carried on in small shacks. In such circumstances, it is unlikely that not only the assessee but also his sons might engaged themselves in these small business activities. Considering all the circumstances, we are satisfied that there is no case for imposition of penalty on the ground of the assessee having concealed particulars of income or furnished inaccurate particulars thereof so as to warrant levy of penalties. The penalties for both the years are cancelled and the appeals are allowed. 5. In the result, the appeal for the year 1971-72 is dismissed and the appeals for the years 1972-73 and 1973-74 are allowed.
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1982 (4) TMI 175 - ITAT MADRAS-A
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... ... ..... imited powers of disposition over the property, the property must be construed as belonging to the appellant and in this view the appellant is entitled to the exemption claimed for. It is, therefore, seen that the word belonging to in s. 5(1) (iv) of the WT Act will comprehend even less than full ownership as long as, as in this case, there is right of possession and enjoyment extending to the entire property. This legal inference gets all the more strengthened by the fact that the s. 5(1) itself used the word owned as for an example in s. 5(1) (iv) (b) and this clearly indicates that the words belonging to are used in contradistinction to the word owned so as to comprehend the type of limited (life-interest) ownership as in this case. The assessee is, therefore, entitled to succeed. 4. Hence, the appeals are allowed and that WTO is directed to compute the relief u/s 5(1) (iv) on the basis that the assessee is entitled to relief on the property at No. 22, Sir Theagaraja Road.
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1982 (4) TMI 174 - ITAT MADRAS-A
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... ... ..... 971) 82 ITR 741 (P and H), Addl. CIT vs. Desai Bros. (1977) 108 ITR 15 (Guj) and CIT vs. C.P.A. Yoosuf (1978) 113 ITR 225 (Ker). Contrary view of Andhra Pradesh High Court expressed in Shreeram R.B. and Co. (P) Ltd. vs. CIT (1968) 67 ITR 428 (AP) is no longer good in law as it has since been overruled by a Full Bench of Andhra Pradesh High Court in Nathwal Bankatlal Parikh and Co. vs. CIT (1980) 15 CTR (AP) 216 (1980) 122 ITR 168 (AP). The fact that the replacement was of old engine is stressed by the ld. Deptl. Rep. It makes no difference to assessee rsquo s case as in some of the cases decided, even this fact was identical. We are of the view that the facts warrant the allowance of assessee rsquo s claim. 4. In the result, the appeal is allowed. ITO is directed to allow the claim of the assessee at Rs. 23,250 as revenue expenditure. He is authorised to make consequential adjustment withdrawing the depreciation which he had allowed in his view that it is capital expenditure.
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1982 (4) TMI 173 - ITAT MADRAS-A
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... ... ..... hs later. In Bhogilal Menghraj and Co. Pvt. Ltd. vs. CIT (1979) 13 CTR (Bom) 101 (1979) 119 ITR 968 (Bom) also, only machinery had been installed and power connection was pending. In both these cases cited, assessee pleaded having set-up business mainly on the basis of mere installation of machinery. They were not poised for production. It is not so in assessee rsquo s case. Various activities were in progress. Repairing ships is one of the assessee rsquo s main activity. It had the dry dock, stores and technical personnel available from 1st April, 1975. While the assessee had claimed commencement of business only from 1st April,1975, repairing receipts were actually received shortly thereafter. Contracts for construction of vessels were received. Work relating thereto had also commenced. It has participated in further tenders for barges. These facts certainly put the assessee rsquo s case beyond the region of reasonable controversy. 7. In the result, the appeal is dismissed.
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1982 (4) TMI 172 - ITAT MADRAS-A
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... ... ..... venue in this matter is hyper-technical and reasonable. As for the reliance placed by the ld. Deptl. Rep. on the decisions of Kerala and Andhra Pradesh High Courts holding that the delayed payments will not earn interest, we have to point out that the assessee, in this case, had made the payment in time. These two decisions, conflicting as they are with the decisions of Gujarat and Bombay High Courts, are easily distinguishable as far as the assessee rsquo s case is concerned, because the payment in assessee lsquo s case is, made in time, while in both the cases before these two High Courts they were not so made. The assessee is therefore, entitled to succeed even on this point. The ITO is directed to allow the interest u/s 214 after including the tax paid on 14th March as advance-tax. Hence the appeal on this point is also allowed and consequently appeal for asst. yr. 1977-78 is allowed. 4. All the four appeals are allowed in the manner indicated in the preceding paragraphs.
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1982 (4) TMI 164 - ITAT MADRAS-A
Transfer Of Assets, For Benefit Of Spouse Or Minor Child ... ... ... ... ..... arent, it necessarily pre-supposes the existence of a separate source of income of the parent under which any positive income or loss is or can be determined. None of the appeals before us involves a case where the assessee has or had during the relevant previous year any particular source of income and the computation of income therefrom resulted in a negative figure. Even assuming that the object of the provision is to circumvent attempts of persons to divert their income or source of income so as to avoid heavy burden of tax and in such circumstances to ignore the effect of the transfer or diversion and to aggregate all the income including the diverted income in the hands of a parent even if the other source of income produce a negative income or loss, the section will have no application where the parent has no source of income at all. 10. In view of the foregoing reasons, we reject the objection of the department and uphold the orders of the first appellate authorities.
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1982 (4) TMI 162 - ITAT MADRAS-A
Capital Receipt, Concessional Rate, Contribution Towards Capital, Industrial Undertaking, Trading Liability
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1982 (4) TMI 161 - ITAT MADRAS
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... ... ..... he assessee rsquo s appeal. 2. We have heard the parties and are of the view that the case does not merit penalty. Regarding M/s. Hind Wire and Metal Industries, from which the assessee derived a substantial part of her income, we were informed that the firm itself filed its return late and the penalty proceedings initiated by the ITO under s. 271(1)(a) were dropped, accepting the assessee rsquo s explanation that the books of accounts of the firm could not be closed till 12th Sept., 1974. It appears that the assessee was helpless in the matter in ascertaining the share income in time and there is no material to controvert the assessee rsquo s submission that she could not anticipate the profits. In the circumstances, the assessee rsquo s plea that without knowing the correct share income till a later date the assessee could not have filed an estimate under s. 212(3A) appears to us well-founded. We would, accordingly cancel the penalty. The assessee rsquo s appeal is allowed.
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1982 (4) TMI 159 - ITAT JAIPUR
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... ... ..... profits was made in the books in the wrong ratio due to inadvertent mistake of Shri Gauri Shanker, one of the partners, who had written the books. First notice u/s 143(2) was issued by the ITO on 2nd July 1980, but the rectification entries were passed by the assessee on 4th April, 1979, meaning thereby, much before the enquiry was started by the ITO. It goes to show that the wrong entries were passed in the books on account of any inadvertent mistake. The share ratio, as stipulated in the deed, was not deviated by the assessee knowingly. For the reasons, we accept the case of the assessee and hold that the authorities below wrongly rejected the claim of the assessee for registration on this ground. 2. The appeal is allowed
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1982 (4) TMI 158 - ITAT JABALPUR
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... ... ..... d the orders of the authorities below. 4. We have considered the rival contentions. We are satisfied on the facts of the case that an addition was called for. The addition made is, however, excessive and needs to be reduced to a more reasonable figure. We reduce it to Rs. 25,000. 5. The next ground pertains to addition of Rs. 14,126 in the commission account. A perusal of the partners rsquo accounts revealed credits of Rs. 7,435 and Rs. 6,691 on account of commission received at the time of auction. Both the partners used to attend the auctions and they used to get money for not bidding at the auctions. These receipts were, therefore, held to be business income of the firm which the Commr. (A) confirmed. In our opinion the orders of the authorities below in this regard are correct and we uphold the same. 6. Lastly there is disallowance of Rs. 2,000 of the trading expenses since they were undetailed and unvouched. The disallowance is confirmed. 7. The appeal is partly allowed.
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1982 (4) TMI 157 - ITAT INDORE
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... ... ..... rinciple of natural justice and the court would quash the order made. It was also held that the authorities acting under that IT Act have to act judicially and one of the requirements and judicial actions is to give a fair hearing to a person before deciding against him. As mentioned earlier, the ratio in the decision relied on by the assessee is not application to the facts of the case, as the issue involved was materially different, i.e., whether interest could be levied without application for extension of time, etc. That apart, the facts in the present case are distinguishable. Hence, the case laws relied on by the assessee are of no help to the assessee. As decided by us above, the order of the AAC cancelling the order of the ITO is upheld with the direction that the ITO should give notice and proper opportunity to the assessee of being heard and to dispose of the matter in accordance with law. In the result, the appeal by the revenue is allowed for statistical purposes.
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1982 (4) TMI 156 - ITAT INDORE
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... ... ..... the sale proceeds of the land question cannot to be charged to capital gains. Even on merits on perusal of the notification and from the language used in the notification, it is quite clear that if at all any area falls within the mischief of the said notification, it would be only 1.9 acres as contended by the ld. counsel for the assessee. The intention of the legislature is clear that only lands which were fit for organisation can fall within the mischief of the said notification. According to the notification only they are falling within one km. on either sides of Indore Dhar Road up to distance of 8 kms. from the corporation limit of the road will fall within the definition of the capital asset but in the case of the assessee as evidenced from the papers and the plan filed by him only 1.9 acres of land falls within the mischief of the said notification and the remaining position cannot be charged for capital gains. 4. In the result, the appeal of the assessee is allowed.
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1982 (4) TMI 155 - ITAT INDORE
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... ... ..... the order under appeal deciding the aforesaid appeals on merits. Further, in view of the decision of the Special Bench that the r. 1BB is procedural and mandatory, it is obligatory, on the part of the WTO to apply r. 1BB to the remaining properties in time (3) and items (4) and (5) of the properties mentioned above. We are, therefore, of the opinion that this is a fit matter to be remitted back to the file of the WTO to consider the proposition of law laid down in (1979) 116 ITR 26 (Cal) while arriving at the value of the properties, namely, items (1), (2) and a portion of (3), which have been rented out for commercial purposes and to apply r. 1BB for the remaining properties in item (3) and item (4) and (5). The aforesaid appeals are, therefore, remitted back to the file for the WTO so as to arrive at the correct value of the properties following the aforesaid directions. 6. In the result, the appeals of the assessee are deemed to have been allowed for statistical purposes.
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1982 (4) TMI 154 - ITAT INDORE
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... ... ..... any particular point of time. In fact, there is no finding as such by the ITO or the AAC. We respectfully agree with the decision of the Jaipur Bench to the effect that the word including used in the above section goes to indicate that there may be other personal effects apart from those articles and effects mentioned in the section itself. The Department, in the present case, on the other hand, has not placed any material to refute the contentions and submissions made on behalf of the assessee right from the stage of the ITO as far as this point is concerned. 6. Having regard to the facts and the materials placed before us and the decisions referred to above, we are of the opinion that the silver utensils in the present case have rightly been claimed by the assessee to be personal effects and were not capital, the sale proceeds of which are not capital gains. In this view of the matter, we cancel the order of the AAC. 7. In the result, the appeal by the assessee is allowed.
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1982 (4) TMI 153 - ITAT INDORE
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... ... ..... es We find that the arguments which are advanced before us are different from the stand taken by the WTO at the assessment stage. The WTO has simply adopted the enhanced share of profit of the partner from the firm in which assessment certain deletions were made. Correspondingly reduction has to be given to wealth-tax as well. That apart, the case which the ld. D.R has taken pains to make out before us cannot be said to have arisen out of the order of the AAC impugned before us. On this we agree with the assessee rsquo s ld. Counsel that the Department cannot make out a new case at this stage. Be that as it may, from the facts available in the present appeal, the addition made by the WTO was not supported by adequate materials and the AAC has rightly deleted the addition on reasons recorded by him in the appellate order. We find no infirmity in his order to justify our interference. His order is, therefore, upheld. 5. In the result, the appeal by the revenue stands dismissed.
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1982 (4) TMI 152 - ITAT INDORE
Penalty, For Late Filing Of Return ... ... ... ... ..... the legal representative. The WTO issued show cause notice to him before directing that penalty under section 18(1)(a) should be paid by the present assessee. But from the order of the WTO it is seen that the assessee was silent When no cause, whether reasonable or not, is shown, it implies that there was no cause for the delay in filing of the wealth-tax return in the present case. 7. At the same time, from the materials available and from the facts discussed above, it cannot be said that the penalty proceedings under section 18(1)(a) were pending at the time of the death of the deceased. In fact, the penalty proceedings, in question, commenced only after the due date and factually long after the death of late Kapoorchand. In this view of the matter, we are of the opinion that the AAC was not right in deleting the penalty as done by him in the present case. Accordingly, we reverse his order and restore that of the WTO. 8. In the result, the appeal by the revenue is allowed.
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1982 (4) TMI 151 - ITAT INDORE
Estate Duty, Net Wealth, Orders Prejudicial To Interests, Tribunal's Order ... ... ... ... ..... n the estate of the deceased. In other words, this very issue was subjected even otherwise to the judicial scrutiny of the first appellate authority, i. e., the AAC in the wealth-tax assessments for the earlier years. In other words, the orders of the WTO have merged with the orders of the AAC. 9. As discussed earlier, the Commissioner considered that the orders of the WTO were erroneous, as the stand of the revenue was not considered by him in the reassessments and the liability was not disallowed. On this ground alone, we find that it is not possible to sustain the orders of the Commissioner impugned before us, in view of what we have stated above. There was no error in the orders of the WTO as the same were not in conflict with the orders of the Tribunal at that particular point of time when such orders were passed (sic). In this view of the matter, the impugned orders of the Commissioner before us are cancelled. 10. In the result, the appeals by the assessees are allowed.
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1982 (4) TMI 150 - ITAT HYDERABAD-B
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... ... ..... ge 112-it is clear that a share holders does not buy any interest in the property of the company when shares were allotted to him. On the allotment of shares the shareholders became entitled to participate in the profits of the company in which he held the shares. If and when the company declared subject to the articles of association that the profits or any portion thereof should be distributed by way of dividends among the distributed by way dividened among the shareholders. There can therefore, be no question of any sale of the property of the company by the company to any shareholder. Only when there is a transfer of property by one by one persons to another without adequate considerations the questions of applications of s. 4(1)(a) of the GT Act would arise for consideration. When there is no transfer there can be no deemed gift whatsoever. We therefore hold that the assessment made in this case is not warranted in law. It is accordingly cancelled. The appeal is allowed.
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1982 (4) TMI 149 - ITAT HYDERABAD-B
Business Income ... ... ... ... ..... y in its books of account did not debar it from claiming the same as deduction. The Bombay High Court in the case of Central Provinces Manganese had referred to the ratio of the above ruling of the Supreme Court and following the same held on similar facts, as obtaining in this case, that the assessee would be entitled to claim as deduction in the year in which the liability arose. In this case, even if the above amounts collected by the assessee as sales tax deposits are liable to be included in the trading receipts of the assessee, yet, on the basis of the above rulings, the assessee would be entitled to the deduction of the above sums. We, therefore, agree with the Commissioner (Appeals) that the additions made for these years by the ITO are not sustainable. The order of the Commissioner (Appeals) is, therefore, upheld on this point. 5 and 6. These paras are not reproduced as they involve a minor issue. 7. In the result, the appeals of the revenue fail and stand dismissed.
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