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Case Laws
Showing 141 to 160 of 249 Records
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1984 (1) TMI 110 - ITAT CHANDIGARH
Net Wealth, Debt Owed ... ... ... ... ..... m)(ii) of the Wealth-tax Act, 1957, the assessee was not eligible for the deduction of a debt which was secured on exempted property. Even in a case where the debt was taken on the security of the house property which exceeds the sum of Rs. one lakh, the assessee would not be eligible, for the deduction of the debt at any rate up to a limit of a lakh of rupees as it would be secured on a property which was exempt from assessment to that extent. (ii) That, the loan borrowed on the security of the life insurance policy was similarly not deductible for the assessment year 1973-74, as the life insurance policy was exempted from wealth-tax. The Tribunal s decision also in the case of Champalal Saraogi held that loan from LIC taken against security of insurance policy by the assessee cannot be deducted as insurance policy is exempt. In the light of above discussion and for the reasons given by the AAC in her order, her action is confirmed. 6. In the result, the appeal is dismissed.
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1984 (1) TMI 109 - ITAT CALCUTTA-E
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... ... ..... use) to accrue or arise in India shall be only such part of the income as is reasonably attributable to the operations carried out in India. It can be legitimately urged for the Department that a portion of the fee payable under this agreement is liable to be taxed India under this provision of law even if the whole of it is not. Therefore it will be open to the Department to contend and for the authorities below to hold that a part of the fee in question is taxable in India, even otherwise the facts are found to be similar to Carborandum s case. However before doing so the crucial fact as to whether the technicians were employees of the assessee or the Indian company should be determined so that there is further scope for the controversy to arise again and again. 8. In the result, we restore the matter back to the file of the CIT (A) for a fresh decision in the light of the above observations. For statistical purposes this appeal shall be deemed to have been allowed as such.
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1984 (1) TMI 108 - ITAT CALCUTTA-E
Conveyance Allowance, Life Insurance Corporation, Special Allowance, Travelling Expenses ... ... ... ... ..... ry to give our decision whether the amount of Rs. 8,546 granted to the assessee was wholly and exclusively incurred by him to meet travelling expenses in performance of his duties as a development officer. It is sufficient to indicate that we do not agree with the observation of the AAC in paragraph 8 of his order. In view of his finding it was not necessary for the ITO to determine whether the assessee actually spent the entire amount in performance of his official duties and as such his omission to discuss this aspect could not be relied upon by the AAC in deleting the addition made by the ITO. 10. On a careful consideration of the facts and circumstances of the case and materials on record, we are of the opinion that the ITO was correct in making the addition of Rs. 8,546 and the AAC was not justified in deleting this amount. As such we set aside the order of the AAC and restore that of the ITO. 11. In the result, the appeal is allowed and the cross-objection is dismissed.
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1984 (1) TMI 107 - ITAT CALCUTTA-E
Annual Value, House Property, Municipal Taxes ... ... ... ... ..... deductible for a particular year may be very heavy. Therefore, they enacted in sub-section (2) of section 24 that the total amount deductible under sub-section (1) thereof in respect of property of the nature referred to in sub-section (3) of section 23 shall not exceed the annual value of the property as determined under that section. So far as the observation of the Hon ble Supreme Court regarding the scheme of the Act are concerned, the argument of the departmental representative appears to be quite plausible but since that question was not actually decided by their Lordships, we are afraid we are not in a position to ignore the clear cut decision of the High Courts on that score alone. 4. In view of the proposition of law as explained above, we direct that subject to the verification that the arrears in question have not been claimed as a deduction in any earlier year, the claim in the present year shall be allowed. 5. In the result, the appeal is allowed in these terms.
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1984 (1) TMI 106 - ITAT CALCUTTA-D
Business Expenditure ... ... ... ... ..... elow. But the admissibility of the present claim as ex gratia without reference to the provision of the Payment of Bonus Act, has still not been considered. The Commissioner (Appeals) has only observed that the assessee cannot claim bonus which is not admissible by giving the name of ex gratia payment. Certainly he cannot claim the same as such, but if the payment has absolutely nothing to do with bonus it may have to be considered on its own merits. From this aspect of the matter the allowance has not been examined by the authorities below. We, therefore, direct that the allowability of this claim shall be considered afresh from this limited angle. In this behalf we may refer to Macneill and Magor Ltd. v. CIT 1983 141 ITR 521 (Cal.) for the proposition that a liability incurred after the close of the accounting year relating to the accounting year this may be allowable as a deduction otherwise. 8. In the result, the appeal is partly allowed for statistical purposes as above.
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1984 (1) TMI 105 - ITAT CALCUTTA-C
HUF Property, Individual Property ... ... ... ... ..... that this decision does not help the revenue. In the case or Malchand Thirani and Sons v. CIT 1980 121 ITR 976, the Calcutta High Court has made it clear that the provisions of section 6 of the Hindu Succession Act use the words Mitakshara coparcenary property and not the words, joint family property . Therefore, the main section 6 of the Hindu Succession Act cannot apply where a Hindu dies without leaving a coparcener for it is elementary that inheritance can never remain in abeyance. Further, section 6 has no application to the property received by a member of a joint family on partition. In view of our aforesaid observation, we hold that the properties left by the husband of the assessee were assessable as HUF properties for the purpose of wealth-tax and, accordingly, the lower authorities were not justified in including one-third interest in the HUF Balkrishanlal Poddar in the net wealth of the assessee. 6. Both the appeals by the assessee, thus, succeed and are allowed.
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1984 (1) TMI 104 - ITAT CALCUTTA-B
Transfer Of Property ... ... ... ... ..... us which is fit to be annulled. This leaves us with the question regarding the valuation of the gifted property. A perusal of the assessment order would show that the assessee returned the value of the gift at Rs. 1,10,000 on the basis of the rental method which was also supported by the report of an approved valuer. The GTO enhanced the value at Rs. 2,00,000 by applying land and building method. It is to be noted that there was no dispute about the fact that the house property in question was mostly tenanted and a portion of the same was occupied by the assessee himself for his own residence. On a consideration of this fact we are of the opinion that the rental method was the proper method in view of the decision of the Calcutta High Court in many cases. Viewed thus, we would hold that the value of the gift returned by the assessee was fair and reasonable and that was to be accepted in toto. We direct accordingly. 6. In the result, the appeals are allowed as indicated above.
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1984 (1) TMI 103 - ITAT CALCUTTA-B
Unexplained Investment ... ... ... ... ..... y assessed varied between Rs. 3,874 to Rs. 12,980 and it was only in the year 1957-58 that the assessment was made at a figure of Rs. 58,526 when again it was found that as much as Rs. 87,000 had been invested by the assessee in the house property in this year and the subsequent year so that it follows that the assessee s status apart from his shop and the built house was not very high. 7. Upon an overall consideration of the facts and circumstances of this case, we are of the opinion that the assessee has miserably failed to prove that the ornaments in question either belonged to the ladies regarding which his relations have made their claim or were the personal belonging of his family, as claimed by him. They were his business assets but there is no claim for deduction of Rs. 50,000 as being the loss incurred in the normal course of business as was made in the case of V.B. Palekar. We, therefore, accept the appeal, set aside the order of the AAC and restore that of the ITO.
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1984 (1) TMI 102 - ITAT CALCUTTA-A
Trading Receipt ... ... ... ... ..... ssable to tax under the Act. Having regard to the objects for which the company was formed as well as the nature of the operations which the company indulged in, this Court held that the transactions of acquiring leases and turning them to account by way of sub-leases were in the nature of trading activity within the objects of the company and not enjoyment of property as landowner and the amounts received by way of salami were trading receipts and the profit therefrom were liable to income-tax. Therefore, this case does not apply to the facts of the case before us. 13. In view of what we have discussed above, we would hold that the disputed amount was a receipt of salami and not a trading and/or revenue receipt. In view of our above findings, we consider it unnecessary to deal with the issue regarding the application of the provisions of section 10(3). So also, the various decisions cited by both the parties before us. 14. In the result, the departmental appeal is dismissed.
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1984 (1) TMI 101 - ITAT BOMBAY-E
Domestic Company, Intercorporate Dividends ... ... ... ... ..... le to tax under the Act and since income from the Unit Trust of India is not liable to income-tax, the dividend therefrom cannot be treated to be dividend from a domestic company. This argument is misconceived. The qualifying words, on which the Commissioner (Appeals) has placed reliance, relate to any other company appearing in section 80B(2). The Unit Trust of India comes within the first part of the definition of domestic company which means an Indian company. In other words, since the Unit Trust of India is an Indian company under section 80B(2) of the 1961 Act, read with section 32(3) of the Unit Trust of India Act, we need not go into the second part of section 80B(2). In this view of the matter, I am of the opinion that the assessee, being a domestic company is entitled to the deduction under section 80M in respect of the dividend income received by it from the Unit Trust of India. I, therefore, accept the claim of the assessee. 6. In the result, the appeal is allowed.
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1984 (1) TMI 100 - ITAT BOMBAY-E
Charitable Or Religious Trust, Per Annum, Public Charitable Trust ... ... ... ... ..... rcumstances, we are unable to agree with the contentions of the learned counsel for the assessee that the ratio of the decision of the Special Bench in the case of Trustees of Sabrina Charitable Trust v. Third WTO 1983 3 SOT 262 (Bom.), would apply to the facts of the present case. This argument overlooks that the case of Trustees of Sabrina Charitable Trust was a case of genuine trust whereas in the present case, the trust is there only in name. As rightly pointed out by my learned brother by relying on the observations of the Supreme Court in the case of Durga Prasad More, we are not expected to put on blinkers while looking into the documents produced before us nor to ignore the facts of life as held by the Supreme Court in the same decision. For these reasons, I agree with my learned brother that the assessee is not entitled to exemption from tax in the years under appeal either under the 1961 Act or under the 1957 Act. 4. Accordingly, the appeals deserve to be dismissed.
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1984 (1) TMI 99 - ITAT BOMBAY-E
Religious Trust ... ... ... ... ..... a further scrutiny, if it was finally decided to admit it. We, therefore, hereby direct that the ITO will take the audit report on record and process the assessee s plea for exemption under section 11 afresh. Since the orders of the lower authorities have proceeded without consideration of the audit report, the assessment order is set aside. The ITO will reframe the assessment afresh in accordance with law. 9. In the circumstances, we find it unnecessary to deal with the assessee s other grounds of appeal, namely, concerning the applicability of the provisions of section 13(1)(bb) to the facts of the present case. As stated earlier, the assessee has appealed against the orders of the authorities below on as many as 13 grounds. The ITO will, in the reassessment proceedings, apply his mind to the assessee s objections taken before us to the denial of exemption by application of the provisions of section 13(1)(bb). 10. In the result, the appeal will be treated as partly allowed.
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1984 (1) TMI 98 - ITAT BOMBAY-D
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... ... ..... ollowed by the assessee (i) have been regularly followed in the subsequent years, (ii) constitute recognised methods of accounting and (iii) reflect the true profits of the business over a period of years are not in doubt. Hence, the CIT(A) was quite justified in his decision. We find support of this conclusion of ours in the decision cited earlier and especially the decision in the case of Snow-White Food Products, Sundararaj and American Express. Further, we find that the Supreme Court has dismissed the Special Leave Petition by the Department against the judgment in the case of Ferozpur Finance (1983) 144 ITR (St.) 50 . In the instant case, there is no doubt that the recovery of the amounts from the sister-concerns were in real jeopardy and so, the income therefrom could not be taxed because they never represented the real income of the assessee for the purpose of IT Act. For the above reasons, we uphold the order of the CIT(A). 10. In the result, the appeal is dismissed.
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1984 (1) TMI 97 - ITAT BOMBAY-D
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... ... ..... . I have gone through the aforesaid order of the Tribunal in the case of Gopal Shriniwasan Trust. I find that the said decision supports the case of the assessee because it is based on the decision of the Supreme Court in the case of Trustees of Gordhandas Govindram Family Charity Trust. Apart from the above, the status of the assessee has been taken in the assessment order as an AOP and rightly so because of the provisions of section 164(2). Section 80L(1)(c) refers to an AOP after referring to an individual and HUF in clauses (a) and (b). It is after mentioning an AOP, that another entity is envisaged, namely, BOI. In my considered opinion, what follows after the words body of individuals qualify only the words body of individuals and not an association of persons , which stand quite independently. Hence, the assessee is entitled to relief even as an AOP under section 80L(1)(c). For the above reasons, I uphold the order of the AAC. 8. In the result, the appeal is dismissed.
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1984 (1) TMI 96 - ITAT BOMBAY-D
Valuation Date, Wealth Tax ... ... ... ... ..... on the trustees. It is a matter of advantage for the trustee who is otherwise assessable under section 3 itself. The Supreme Court has pointed out in Trustees of H.E.H. Nizam s Family (Remainder Wealth) Trust s case that the provisions of section 3 are subject to the other provisions of the Act and when a trust is assessed, section 3 has to be read along with section 21. Now, the result of Shri Inamdar s submission would be that the benefit of section 21 would not be available to the assessee. The trustees would be assessable under section 3 itself without any of the limitations placed by section 21. However, we need not give a finding that the assessee would be assessable without referring to section 21. That benefit has been given by the AAC, and the department has not come on appeal on that point. But it is clear that the second argument taken by the assessee also does not help. 19. In the result, we will dismiss the departmental appeals as well as the assessee s appeals.
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1984 (1) TMI 95 - ITAT BOMBAY-C
Advance Tax, Interest Payable By Government ... ... ... ... ..... tral Government shall pay simple interest at twelve per cent per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year in which they are payable under sections 207 to 213 exceeds the amount of the tax determined on regular assessment, from the 1st day of April next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expiry of the financial year during which it is payable by reason of the provisions of section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment to the date of regular assessment. 8. Therefore, the Commissioner (Appeals) s decision directing the ITO to allow interest under section 214 in respect of refund is held to be erroneous and contrary to the provisions of section 214. 9. In the result, the revenue s appeal is allowed.
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1984 (1) TMI 94 - ITAT BOMBAY-B
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... ... ..... ssessee s claim by relying on a circular letter therefore, No. 317/23/73-WT dt. 24th July, 1973 issued by the CBDT, wherein it was clarified that the exemption u/s 5(1)(iv) was available even for the house used for commercial purposes. He pointed out that this Circular was binding on the WTO. Accordingly, he held that the value of the office premise amounting to Rs. 80,750 was exempt u/s 5(1)(iv) of the Act and directed the WTO to recompute the assessee s wealth after excluding the value of the officer premises therefrom. This is being objected to by the revenue in the present appeal. 4. After hearing the ld. counsel on both sides, we do not see any reason to interfere with the order of the AAC which is in conformity with law. There is no dispute that the circular in question is binding on the departmental authorities and that the AAC has rightly followed the same, which was over looked by the WTO. In the circumstances, we confirm the order of the AAC and dismiss the appeal.
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1984 (1) TMI 93 - ITAT BOMBAY-B
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... ... ..... ssessee s claim by relying on a circular letter therefore, No. 317/23/73-WT dt. 24th July, 1973 issued by the CBDT, wherein it was clarified that the exemption u/s 5(1)(iv) was available even for the house used for commercial purposes. He pointed out that this Circular was binding on the WTO. Accordingly, he held that the value of the office premise amounting to Rs. 80,750 was exempt u/s 5(1)(iv) of the Act and directed the WTO to recompute the assessee s wealth after excluding the value of the officer premises therefrom. This is being objected to by the revenue in the present appeal. 4. After hearing the ld. counsel on both sides, we do not see any reason to interfere with the order of the AAC which is in conformity with law. There is no dispute that the circular in question is binding on the departmental authorities and that the AAC has rightly followed the same, which was over looked by the WTO. In the circumstances, we confirm the order of the AAC and dismiss the appeal.
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1984 (1) TMI 92 - ITAT BOMBAY-B
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... ... ..... jected to this ground of appeal by stating that no appeal lies against non-grant of interest. The order of the Commissioner (Appeals) is also silent on the point as to how he has decided this ground though no specific right is given for appeal under section 246 of the Act (see the Special Bench decision in the case of Indian Tyre and Rubber Co. (I.) (P.) Ltd. It is because of the fact that in draft order the ITO had made specific mention regarding allowability of interest under section 214, he presumed that the ITO had no objection in deciding appeal on this ground. Therefore, on legality of this aspect of appeal for non-grant of interest the matter is sent back to the Commissioner, (Appeals) to consider the same and pass the appropriate order in accordance with law. Hence, the decision of Commissioner (Appeals) regarding grant of interest under section 214 is set aside until the order is passed on legality of maintaining appeal as directed. 13. The appeal is allowed in part.
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1984 (1) TMI 91 - ITAT BOMBAY-A
Aggregation Of Property ... ... ... ... ..... tion of India. The Patna High Court has, on this point, discussed at length the ratio decidendi of the Madras High Court in the case of V. Devaki Ammal and dissented from it. To the same effect are the decisions of the Gujarat and the Andhra Pradesh High Courts in the case of Ramniklal J. Daftary and C. Vanajakshi Venkata Rao. Since apart from the decision of the Madras High Court all the other judicial decisions cited before us are in favour of the department s contention, we prefer to follow the said decisions and hold that the interest of the lineal descendants of the deceased in the joint family property governed by Mitakshara law, as in the instant case, stands to be included in the value of the estate of the deceased for determining the rate of estate duty on the estate passing on the death as envisaged by section 34(1)(c). In this view, we reverse the decision of the Appellate Controller on the point and allow the department s appeal. 7. Department s appeal is allowed.
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