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Showing 81 to 100 of 226 Records
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1982 (4) TMI 148 - ITAT HYDERABAD-B
Deemed Gift ... ... ... ... ..... ed in the book Guide to the Companies Act, at page 112, it is clear that a shareholder does not buy any interest in the property of the company when shares were allotted to him. On the allotment of shares the shareholder becomes entitled to participate in the profits of the company in which he held the shares, if and when the company declares, subject to the articles of association, that the profits or any portion thereof should be distributed by way of dividends 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 person to another without adequate consideration, the question of application of section 4(1)(a) 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. 4. The appeal is allowed.
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1982 (4) TMI 147 - ITAT HYDERABAD-A
Firm, Method Of Computing Partners' Shares ... ... ... ... ..... es administering the Income-tax Act have to follow this provision. As long as the provision remains on the statute book, the Tribunal also has to give due effect to the same. It is mandatory, therefore, to levy the tax with reference to the total income of the particular registered firm. That is all that the ITO has done in the present case. It is fully in conformity with the relevant statutory provisions and as such even if it be considered that there is an element of hardship, an appellate body like the Tribunal cannot interfere with the computation as made. 9. We, therefore, come to the conclusion that the plea of double taxation cannot be accepted because no tax has been levied in respect of the same income on the same assessee twice, and further such relief as was contemplated by the Legislature in respect of firm s tax has been granted in working out the apportioned income to be included in the hands of the assessee. 10. The result is, the appeal fails and is dismissed.
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1982 (4) TMI 146 - ITAT HYDERABAD-A
Flat Rate, Religious Trust ... ... ... ... ..... e to deal with the separate note, recorded by the ITO. This note we have set out earlier. But this note has to be considered in the background to which we have referred. The ITO has merely stated that the rate of 65 per cent should have been applied. When the revenue was throughout contesting the finding of the IAC (Audit) that higher rate was applicable, and had not accepted it, the mere mention that higher rate was applicable, in the separate note cannot be equated with the ITO forming a reason to believe that the provision of section 147(b) were attracted. We would, therefore, come to the conclusion that the recording of this note separately does not alter the conclusion which we have arrived at. We would, therefore, uphold the decision of the AAC quashing the income-tax assessments also for the assessment years 1974-75 and 1975-76 though for slightly different reasons from those which weighed with him. 15. IT Appeal Nos. 902 and 903 (Hyd.) of 1981 are also thus dismissed.
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1982 (4) TMI 145 - ITAT HYDERABAD-A
Capital Receipt, Concessional Rate, Contribution Towards Capital, Industrial Undertaking, Trading Liability
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1982 (4) TMI 144 - ITAT DELHI-E
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... ... ..... e could not have been assessed in lieu of jewellery found and seized during the search on 8th Sept., 1976/ 9th Sept., 1976. On this score also, orders of the lower authorities merit to be reversed, which we do. 16. Yet, that apart, under s. 69A of the Act, the unexplained money in lieu of acquisition of jewellery found in the bank locker and seized could be assessed in the hands of the assessee only if the assessee was found to be the owner of that jewellery and there is no material on record to warrant inference that the assessee was the owner of the jewellery more so, in the face of the fact that the bank locker stood in the name of Shri Misha Vadera as also in the face of the statement dt.1st Dec., 1976recorded on oath by the ITO from Mrs. Tej Kaur who has since categorically owned the jewellery. On this reasoning also the orders of the lower authorities cannot be sustained. 17. As a result of our discussions as above the appeal by the assessee succeeds and stands allowed.
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1982 (4) TMI 143 - ITAT DELHI-D
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... ... ..... in their share premium account and these have been charged to account in the balance sheet and not in the profits and a loss account and admittedly so, since it depicts the correct method of accountancy. The balance sheet of the assessee is audited by renowned chartered accountant and the realignment of the capital structure of the company can neither give rise to increase in capital, since there is no new raising of capital by way of issuance of shares, nor it can be said that the expenses are connected with the business of the assessee, since the expenses relate to entries inter se capital structure of the assessee-company, hence, in that view of the matter, the claim of the assessee for deduction in lieu of expenditure incurred in connection with issue of bonus share is held to be in the nature of capital expenditure, with the resultant effect that this issue also stands decided against the assessee. 17. In the result, the appeal by the assessee fails and stands dismissed.
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1982 (4) TMI 142 - ITAT DELHI-D
Method Of Accounting, Hybrid System ... ... ... ... ..... not in our view detract in any manner, from the finding of fact arrived at by us that profits of the previous year under consideration could not be correctly deduced from the method of accounting followed by the assessee, even though that method was followed by the assessee in subsequent years as well. The revenue succeeds. The ITO s finding is restored. The AAC s finding is reversed. 13. Appeal is allowed. Per Shri V. Dongzathang, Accountant Member --- On the facts of the case, I fully agree with my learned brother. The assessee-firm, in this case, is not a mere consultancy firm but carrying out treatment of indoor patients. In such a case, the bills raised by the assessee would include cost of medicines purchased in cash or credit. As such, mixed system of accounting as adopted by the assessee cannot deduce the correct income. Cases of professionals like lawyers, chartered accountants and doctors, who are doing only consultancy, are not comparable to the facts of the case.
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1982 (4) TMI 141 - ITAT DELHI-C
Depreciation, Allowance of ... ... ... ... ..... thereon. Their Lordships followed the decision of the same High Court in M.Ct. Muthiah v. CIT 1974 97 ITR 516 (Mad.) which followed the decision of the Supreme Court in CIT v. Ramniklal Kothari 1969 74 ITR 57. In the case of the present appellant before me, there is no dispute that the car is owned by him and that the said car has been utilised for the purpose of business of his partnership firm Prakash Book Depot. It, therefore, follows that the said car has been used for the purpose of his business by the assessee and, therefore, he is entitled to depreciation on his car under section 32. I, therefore, respectfully follow this decision of the Madras High Court and allow the appellant s claim. The decision of the Delhi High Court in CIT v. Hindustan Cold Storage Refrigeration (P.) Ltd. 1976 103 ITR 455 relied on by the appellant in his grounds of appeal is not directly in point and it is not, therefore, necessary to discuss the same. 5. In the result, the appeal is allowed.
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1982 (4) TMI 140 - ITAT DELHI-C
Business Income ... ... ... ... ..... or 28(i) of the Act. 12. We now come to the decisions relied upon by the representative for the assessee. The decision of the Calcutta High Court in K.N. Daftary s case has already been distinguished by us and so also the Calcutta High Court s decision in Kesoram Industries and Cotton Mills Ltd. So is the position regarding the decisions of the Madras High Court in V.T. Kuppuswamy Pillai and Co. and K.S. Sheikh Mohideen. In Home Industries and Co. the question was regarding the taxability under the head Capital gains arising, if any, from the sale of goodwill, which was taken as capital asset . Same is the position in the decision reported in the case of B.C. Sirinivasa Setty. The decisions relied upon by the representative for the assessee are, therefore, distinguishable. 13. The sum and substance of our above discussion is that the decisions of the tax authorities on the point at issue are upheld. 14. to 27. These paras are not reproduced here as they involve minor issues.
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1982 (4) TMI 139 - ITAT DELHI-B
Deductions, Profits And Gains From Newly Established Industrial Undertaking ... ... ... ... ..... on under section 80J. As pointed out by the Hon ble Allahabad High Court the view taken by the Commissioner is a pure technicality. I, therefore, respectfully follow the decisions of the Allahabad High Court and the Patna High Court, referred to above, and hold that the requirement that audit report should be filed along with the return of income by an assessee in section 80J(6A) is only directory. I further hold that there was sufficient and proper compliance with the provisions of section 80J(6A) in the present case and that the ITO had rightly accepted and allowed the assessee s claim for deduction under section 80J(1). I do not find anything erroneous and prejudicial to the interests of the revenue in the order of the ITO which called for interference by the Commissioner under section 263. In this view of the matter, I cancel the order passed by the Commissioner under section 263 and restore the assessment order passed by the ITO. 10. In the result, the appeal is allowed.
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1982 (4) TMI 138 - ITAT DELHI-B
High Court, Tribunal's Order ... ... ... ... ..... has a statutory duty to inquire into the truth of a petition. Hudson v.Hudson 1948 p. 292 Halsbury s Laws of England, para 1515 . The luminous footnote cites rulings and states that This rule probably also applies where the statute bestows a discretion rather than imposing a duty. Halsbury s Laws ofEngland, 4th Edn., P. 109 . To sum up, where public duties cast by statute are involved, private parties cannot prevent performance by invoking estoppel. We do not discuss further since the facts here exclude estoppel. Emphasis supplied by us 8. In our view, these two decisions of the Supreme Court as well as the decision of the Allahabad High Court directly answer the assessee s contentions on the alternative plea of estoppel or stare decisis as was sought to be argued by the learned counsel for the assessee. We, therefore, respectfully follow these decisions and reject ground No. 2 in all the three years. 9 to 11. These paras are not reproduced here as they involve minor issues.
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1982 (4) TMI 137 - ITAT DELHI-A
Exemption, Pension ... ... ... ... ..... under rule 37(1A)(a) of the commuted value or one-third of his pension, is exempt from tax under section 10(10A)(i). This decision of theDelhiHigh Court has since been accepted by the CBDT vide Circular No. 286, dated17-11-1980. Since the factual position in the present cases is similar to that in the case of Karunakaran and since the decision of the Delhi High Court in Karunakaran s case has been accepted by the CBDT, we, respectfully, following the aforesaid decision of the Delhi High Court, hold that the terminal benefit received by each of the assessees before us on his retirement from the Central Government Service and absorption in the public sector corporation, namely, Food Corporation of India, under rule 37A(1)(b) of the Central Civil Services (Pension) Rules, equal to twice the amount of the commuted value of one-third of his pension in the case of each assessee is exempt from tax under section 10(10A)(i). 6. Holding likewise, we allow the appeals of the assessees.
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1982 (4) TMI 136 - ITAT DELHI-A
Exemption, Casual And Non-recurring Receipt, Gratuity ... ... ... ... ..... as casual even if it is not likely to occur again See in this connection Ramanathan Chettiar v. CIT 1967 63 ITR 458 (SC). The word casual in section 10(3) must be read as meaning the antithesis of that which is governed by something more than mere chance---something out of which, according to the probabilities of business or to the known course of practical experience, a rational expectation of profit arises See Lola Indra Sen, In re. 1940 8 ITR 187 (All.). The gratuity received, in view of the Life Insurance Corporation ofIndia(Agents) Regulations was a receipt which was foreseen and anticipated by the assessee as an agent on his retirement after attaining the age of sixty. Even though it was not likely to occur again, yet the receipt being foreseen and anticipated cannot be regarded as a casual receipt. Section 10(3) is, therefore, not attracted in the present case. 10. In the result, the appeal by the revenue is allowed and the cross-objection by the assessee is dismissed.
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1982 (4) TMI 135 - ITAT DELHI-A
Assets, Annuity ... ... ... ... ..... or had not claimed and been allowed depreciation in the income-tax assessments in respect of the cars in question. Secondly, in any case, each assessment relating to a particular assessment year is an independent assessment and the questions arising therein, have to be disposed of according to the legal position as ascertained or found by the forum concerned. Absence of the word exclusively in clause (viii), according to us, makes no difference. An asset, which is a business asset, giving rise to a claim for depreciation can, according to us, not be said to be an asset intended for personal or household use . It may be noted that there is no provision in the Wealth-tax Act corresponding to section 38(2) of the Income-tax Act, contemplating cases of different partial users. Thus, for purposes of clause (viii), no splitting of an asset can be made to allow even a partial exemption. The revenue succeeds. 17. The revenue s appeal is allowed. The assessee s appeals are dismissed.
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1982 (4) TMI 134 - ITAT DELHI-A
Agricultural Land, Held By Assessee, Land Acquisition, Right To Receive Compensation, Valuation Date, Wealth Tax
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1982 (4) TMI 133 - ITAT DELHI-A
Attributable To, Late Filing ... ... ... ... ..... ince the element of mens rea or guilty intent was not required to be taken into consideration while imposing the penalty either under section 273(c) or under section 271(1)(a). As regards the ratio of the Full Bench decision of the Punjab and Haryana High Court in Patram Dass case, their Lordships have laid down the ratio that the only requirement for imposition of penalty under section 271(1)(a) is the absence of reasonable cause for the tax delinquency. Their Lordships have further held that the onus is on the assessee to prove that there was reasonable cause for having filed the return belatedly. The ratio of both these decisions favour the revenue and we do respectfully follow the same, and since there is no material on behalf of the assessee to prove any reasonable cause for the delay in filing the returns of income, the penalties since imposed and sustained on the assessee stand confirmed. 27. In the result, all the four appeals by the assessee fail and stand dismissed.
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1982 (4) TMI 132 - ITAT COCHIN
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... ... ..... plant by the Indian Tobacco Co., is not adequate for the waiver of this liability of Rs. 10,17,371, we have to uphold the claim of the assessee before us that no benefit can be said to have arisen to the assessee under the agreement. We also are of the opinion that the attempt on the part of the revenue to raise this question at this late stage, namely the question regarding the applicability of s. 28(iv), cannot be permitted as it really involves going into further evidentiary material to determine whether the consideration for the relinquishment of this sum of Rs. 10,17,371, namely, the utilisation of the plant for a period of 7 years is adequate or not. It was not the case of the revenue either when the ITO made the assessment or when the CIT(A) decided the appeal that the consideration was inadequate nor has any material been placed before us to show that the revenue cannot be allowed to raise this question before us at this stage. 6. The appeal is, therefore, dismissed.
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1982 (4) TMI 131 - ITAT COCHIN
Charitable Or Religious Trust ... ... ... ... ..... c)(ii) and section 13(2)(h) read with section 13(3) for the assessment year 1976-77. The order of the Commissioner (Appeals) allowing such claim is modified. 21. The Commissioner (Appeals) by his order has directed the ITO to recompute the income. In doing so, he has not considered the claim of the assessee that the voluntary contribution received during the accounting period is not the income of the assessee and that it is only a capital receipt. We, therefore, direct the ITO to consider this question also in recomputing the income of the assessee, subject to the directions of the Commissioner (Appeals) other than the one for allowing exemption under section 11. 22. In the result, the appeal filed by the assessee for the assessment year 1975-76 is allowed. The order of the Commissioner is set aside and that of the ITO is restored. For the assessment year 1976-77 the appeal filed by the revenue is partly allowed and the ITO is directed to recompute the income as stated above.
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1982 (4) TMI 130 - ITAT CHANDIGARH
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... ... ..... the order of the ITO and restoring it to his file to be made de novo and prayer in the said appeal is that his order should not have been set aside. In respect of annulment of reassessment, the ld. Counsel for the assessee has placed his reliance on the case of Munnalal Murlidhar, according to which, if the assessee is denied an opportunity to produce evidence, the assessment would be vitiated. Similar was the reliance of the ld. counsel for the assessee in the case of Radhey Shyam Jagdish Prasad, wherein the case of Munnalal Murlidhar was relied upon, but this will be of academic nature, in the light of our finding that the reassessment proceedings in the instant case were not properly initialled by the ITO. In the light of our above finding in the assessee s appeal, the contentions raised in the Revenue s appealed not survive and become infructuous and the same as such are rejected. 20. In the result, the assessee s appeal is allowed and the Revenue s appeal is dismissed.
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1982 (4) TMI 129 - ITAT CHANDIGARH
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... ... ..... ntributed the capital which has not been considered and mentioned in the impugned assessment order by the ITO. On these facts, there is hardly any case for making any addition whatsoever much less the addition of Rs. 15,000 to the total income of the assessee. 13. Much has been made by the Revenue about the surrendering of the amount of Rs. 15,000 as per entry dt. 8th March, 1978 by Shri Lal Chand. The entry has been abstracted above in para 3 to project that Lal Chand was not surrendering the amount even if conceded for the sake of argument that the amount was liable to be taxed as income of the firm. Even otherwise, he has projected to the ITO that the amount of Rs. 71,000 had been considered in his personal assessment at Patiala and, therefore, even on this ground when the two sides did not understand the same thing in the same sense, there could not be any addition. The amount of Rs. 15,000 is, therefore, deleted from the total income of the assessee. 14. Appeal allowed.
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