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Showing 61 to 80 of 136 Records
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1985 (6) TMI 76 - ITAT JAIPUR
Conveyance Allowance, Expenditure Incurred, Special Allowance ... ... ... ... ..... ursement of expenditure incurred to that of an allowance. We are, therefore, of the view that the entire amount of Rs. 25,417 should be exempt under section 10(14) and we hold accordingly. 4. As regards the additional ground of claiming of deduction at the rate of 40 per cent of the incentive bonus, the assessee filed copies of assessment orders up to the assessment year 1984-85, where the ITO has considered the same and had allowed the assessee the deduction so claimed. The assessee had preferred this additional ground before the AAC, who had rejected the same for the reason that the assessee did not make any claim before the ITO and it required further examination for which reliance was placed on the Calcutta High Court decision in the case of Jute Corpn. of India Ltd. v. CIT 1981 131 ITR 412, we reject this ground for the same reason. Moreover, the relief already granted covers all actual expenditure incurred. 5. In the result, the appeal of the assessee is partly allowed.
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1985 (6) TMI 75 - ITAT INDORE
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... ... ..... ing Workers Ltd. (1979) 118 ITR 1 (SC). In view of the facts available on record and respectfully following the ratio laid down by the above authorities of the Hon rsquo ble Madhya Pradesh High Court and of the Supreme Court in its various decisions, we have no hesitation in coming to the conclusion that all the primary facts were fully and truly disclosed by the assessee at the time of the original assessments and consequently the re-opening of the said assessments under s. 147(a) of the Act only tantamounts to a change of opinion and, hence, bad in law. We, therefore, quash the re-assessments made on the assessee under s. 147(a) of the Act in respect of the asst. yrs. 1974-75 and 1975-76. 7. In view of our findings above, we do not consider it necessary to discuss the other arguments of the ld. counsel with regard to the merits of the assessability of the sales-tax refunds during the years in question. 8. Accordingly, all the three appeals filed by the assessee are allowed.
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1985 (6) TMI 74 - ITAT INDORE
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... ... ..... er, the decision of the Special Bench of the Tribunal is binding on the subject and, accordingly, we hold that the amount of subsidy received by the assessee-company from the government, would not go to reduce the cost of asset for the purposes of allowing depreciation, etc., to the assessee. Accordingly, we reverse the decisions of the CIT(A) and of the IAC (Asstt.) in the matter and direct that for the purposes of allowing depreciation, etc., the amount of capital subsidy received by the assessee from the government should not be reduced from the cost of the assets. 16. Consequent to the above findings, ground Nos. 8 and 10 taken by the assessee with regard to allowance of investment allowance and depreciation are also allowed and the IAC (Asstt.) is directed to allow investment allowance and depreciation to the assessee without reducing the cost of fixed assets by the amount of capital subsidy received by the assessee. 17. In the result, all the appeals are partly allowed.
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1985 (6) TMI 73 - ITAT INDORE
Transfer Of Assets, Benefit Of Spouse Or Minor Child ... ... ... ... ..... retation of statutes. We are, therefore, of the view that the matter is fully covered by the decision of the Hon ble Supreme Court in the case of Smt. Mohini Thapar and the income from the property in question, which was admittedly acquired by the wife out of the funds gifted by the husband was taxable in the hands of the husband under section 64(1)(iv). All these appeals by the revenue, therefore, deserve to be allowed. 5. The revenue s Appeal No. 884 is allowed and the direction of the learned AAC to the ITO to treat the assessment of property income in the edge of Smt. Yeshodabai Tiwari as a substantive one is hereby revoked. Appeal Nos. 885 to 887 are also allowed and the order under appeal passed by the learned AAC directing the exclusion of property income from the income of the assessee, Shrihari Sarju Prasad Tiwari, is set aside and the assessment orders passed by the ITO assessing the said income in the hands of the said assessee under section 64(1)(iv) are restored.
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1985 (6) TMI 72 - ITAT HYDERABAD-B
Actual Cost ... ... ... ... ..... was towards the additional cost of machinery. The balance amount was towards loss of interest and loss on account of delay in production. Eventually, the assessee received only Rs. 16,000. The proportionate amount towards the additional cost of machinery would be 26/46 x 16,000, i.e., Rs. 9,000. The expenditure incurred prior to commencement of business was capitalised only to the extent of 75 per cent. Therefore, in round figures about Rs. 6,500 out of this amount would be attributable to reimbursement of expenditure on the asset up to the stage they were ready to be put into use. To arrive at the actual cost in commercial terms, which is the starting point of section 43(1) Rs. 6,500 would have to be deducted from the cost as taken in the assessment and no more. To this extent the revenue succeeds in its appeal. The depreciation, etc., will be worked out by the ITO after recomputing the actual cost in accordance with our aforesaid findings. 8. The appeal is allowed in part.
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1985 (6) TMI 71 - ITAT HYDERABAD-B
Assessment Year, Entertainment Expenditure, Expenditure Incurred, Mistake Apparent From Record, Original Assessment
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1985 (6) TMI 70 - ITAT HYDERABAD-B
Enduring Nature, Revenue Expenditure ... ... ... ... ..... y the Supreme Court in Empire Jute Co. Ltd. v. CIT 1980 124 ITR 1. The Supreme Court pointed out that even if expenditure is incurred for, obtaining an advantage of enduring benefit, there may be cases where the expenditure may nonetheless be on revenue account and the test of enduring benefit may break down. What is material to consider is the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable on application of this test. The above ratio squarely applies to the instant case. No income-yielding capital asset has been created by planting trees and no enduring benefit has been derived by the assessee. Thus, the expenditure incurred is allowable as revenue expenditure. Accordingly, we allow the same and delete the addition of Rs. 52,982. 3. Ground No. 2 relating to expenditure on land survey is not pressed. Accordingly, it is dismissed. 4. In the result, the appeal is partly allowed.
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1985 (6) TMI 69 - ITAT HYDERABAD-A
Income, Assessability Of ... ... ... ... ..... ... ---Chaturvedi and Pithisaria s Income-tax Law, Vol. 1, 3rd edn. In view of the above analysis, the condition that the assessee should have gone into production after 1-1-1976 is only a safeguard and does not influence the purpose and, therefore, is not relevant in determining the character. Therefore, we are of the opinion that the decision of the Andhra Pradesh High Court in the case of Sahney Steel and Press Works Ltd. does not govern the issue in this case. 16. For the reasons given above, we are of the opinion that the receipt is capital in nature. 17. The next question would be whether these receipts could be considered for the purpose of the actual cost under the proviso to section 43(1). Shri Ramachandra Rao had conceded before us that the subsidies can be adjusted against the cost of the assets. In view of the concession, we hold that the ITO would be justified in making such adjustments in depreciation. 18. No other issue is pressed. The appeal is partly allowed.
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1985 (6) TMI 68 - ITAT DELHI-E
Reassessment, Non-Disclosure Of Primary Facts, Valuation Of Stock, Return Of Income, Interest For Late Filing Of Return, General Principles
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1985 (6) TMI 67 - ITAT DELHI-E
Capital Gains, Earnest Money, Held By Assessee, Income Tax, Residential House Property ... ... ... ... ..... will have no right or interest in the same. Ultimately the sale deed, was executed in favour of the assessee on7-5-1973. So the assessee was holding the property with effect from18-11-1970. The said West Patel Nagar property was agreed to be sold by the assessee on the basis of agreement to sell on12-8-1975and possession to the purchaser was given in September 1975 and ultimately sale deed was executed and registered on10-2-1976. In view of these facts and also in view of the law laid down as discussed above, the asset, namely, West Patel Nagar property, sold in February 1976 was held by the assessee for more than 36 months before its transfer. As such, on the transfer of the said property, there would be long-term capital gains and the same was to be assessed in the hands of the assessee. The finding of the learned AAC to the contrary is not correct. For the reasons discussed above, the assessee shall get relief accordingly. 22. In the result, the appeal is allowed in part.
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1985 (6) TMI 66 - ITAT DELHI-C
Assessed Tax, Late Filing, Levy Of Penalty, Registered Firm, Tax Deducted At Source ... ... ... ... ..... he said decision the relevant provisions have undergone material change. In contradistinction with the expression any tax used under the 1922 Act, the expression assessed tax has been used in section 271(1)(a)(i) of the 1961 Act and this expression has been defined in the Explanation. Having regard to the fact that the High Courts have taken conflicting views on the issue, it will only be proper for me to say that both views are reasonably possible. If that be so, I think I am bound by the Supreme Court decision in the case of CIT v. Vegetable Products Ltd. 1973 88 ITR 192 wherein it has been held that in a case where two views are reasonably possible, the Court should take the view in favour of the assessee. In this view of the matter, I am inclined to agree with the learned Judicial Member and hold that the penalty under section 271(1)(a)(i) cannot be imposed on the assessee-firm. The case will now go back to the Bench for deciding the appeal according to the majority view.
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1985 (6) TMI 65 - ITAT DELHI-B
Penalty, For Late Filing Of Return ... ... ... ... ..... the position for the assessment year 1971-72. The assessee being a private limited company, the audit of its accounts was necessary and the report of audit had to be filed along with the returns. Considering these aspects, we are of the view that so far as the assessment year 1970-71 is concerned, there was a reasonable cause for the delay up to 8-10-1971 for filing the return and, therefore, in the absence of a reasonable cause, thereafter, penalty, was leviable for the period 8-10-1971 to 3-10-1972. Similarly, so far as the assessment year 1971-72 is concerned, the audit was made on 23-4-1973, and since the reason for the delay thereafter has not been established, penalty was leviable under section 271(1)(a) for the period 23-4-1973 to 20-12-1974. We, therefore, uphold the levy of penalty for the above periods which shall be calculated by the IAC. 11. In the result, IT Appeal Nos. 1700 and 1701 fail and are dismissed, whereas IT Appeal Nos. 1702 and 1703 are partly allowed.
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1985 (6) TMI 64 - ITAT DELHI-B
Question Of Law, Rule 1BB ... ... ... ... ..... n of a larger Bench in Smt. Razia Begum s case to resolve an identical issue, namely, whether a referable question of law arose out of the order passed by the Tribunal in following the Special Bench decision in the case of Biju Patnaik and held that same being the facts, a question did arise out of the order. 2. My task is now made very much easier for the very simple reason that the Special Bench to which the learned Accountant Member made reference in his order has since decided that a referable question of law arises out of the order of the Tribunal. The question whether the operation of rule 1BB is retrospective in its operation or prospective is definitely a question of law and is not a question of fact. It involves the interpretation of the rules. 3. I am, therefore, of the opinion that a question of law does arise out of the order of the Tribunal. Now the matter will go to the regular Bench for disposal of the reference application in accordance with the majority view.
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1985 (6) TMI 63 - ITAT DELHI-A
Assessment Year, Previous Year ... ... ... ... ..... ant Member--While agreeing with the conclusion recorded by the learned Judicial Member, I would add that the token payment made to the assessee was with the sole purpose of honouring a freedom fighter. He had no legal right to receive it and it was not a pension for any service rendered. Naming it as a pension is not at all material. It was a gift by the State Government. Thus, this was a casual payment. A voluntary payment made without consideration, even if it is paid continuously over a period, is not income if it depends solely on the whim or sweet will of the payer. It was held by the Bombay High Court in the case of H.H. Maharani Shri Vijaykuverba Saheb of Morvi v. CIT 1963 49 ITR 594 at p. 605 that such voluntary payment which cannot be traced to any source but only to the whim of the donor cannot be considered as income. That being the legal position it is hoped that as a policy no effort should be made to bring such small payments made to the freedom fighters to tax.
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1985 (6) TMI 62 - ITAT COCHIN
Method Of Accounting ... ... ... ... ..... from the specific items mentioned as items 28 and 30 in the Fifth Schedule on which emphasis has been laid by the Allahabad High Court in income-tax decisions. Apart from the position obtaining for sales tax purposes, and without going into the question of manufacture or consumption in the manufacture of a commodity, the decision in the present appeal would rest on the clear case of production. We uphold the order of the Commissioner (Appeals) in this regard. 33. The last point in dispute relates to the grant of investment allowance under section 32A. This was denied to the assessee on the ground that the company is not an industrial undertaking manufacturing or producing an article. Our discussions in connection with the application of section 80J would leave us no doubt as to the availability of the relief under section 32A as well to the assessee. On this point also we do not inter fere with the order of the Commissioner (Appeals). 4. The departmental appeal is dismissed.
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1985 (6) TMI 61 - ITAT COCHIN
Advertisement Expenditure, Industrial Undertaking ... ... ... ... ..... stion is whether the person who had revived the industry can be said to have set up the industry and whether his incomes under the excluded category of businesses. The Tribunal held that the industrial undertaking set up by the assessee for manufacture and production of pharmaceutical products will be governed by the provisions of section 37(3D) for the year of commencement of manufacture and the succeeding two years. In this case also the manufacture began only from 1-9-1977 and as the assessee continued the manufacture from 1-4-1978 and as the accounting year fell in the second year of the business after the unit began manufacturing, the assessee, in our opinion, following the Bombay Tribunal decision is entitled to exemption under section 37(3D). In view of this finding, the assumption of jurisdiction by the learned Commissioner under section 263 would not be valid. 14. In the result, the appeal is allowed and the revisional orders of the Commissioner are hereby cancelled.
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1985 (6) TMI 60 - ITAT CHANDIGARH
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... ... ..... denied to installations, fittings storage tanks, jetties, dry docks, tramways, railway sidings, pipelines, etc. which do not depreciate at a higher rate mere by additional use as is evident from reading of all the entries following the entry relating to electrical machinery under Item III(iv). Any attempt, therefore, on the part of the ITO to deny extra shift allowance on generator is not in keeping with the intent and purposes of depreciation and principles underlying the relief by way of extra shift allowance. In any view of the matter, we see no reason why the extra shift allowance should be refused on generator. We have taking the same view in I.T.A. No. 2755/Mds/77-78 dt. 13th Nov., 1978 where one of us was a party. The order of the AAC has, therefore, to be confirmed for different reasons . 4. For the very same reasons given in the above referred case and for reasons given by CIT(A) in his order, his action is confirmed. 5. In the result, revenue s appeal is dismissed.
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1985 (6) TMI 59 - ITAT CHANDIGARH
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... ... ..... not that secret commission is paid for the first time. Right from the period the assessee is in trade of this type, commission payment is warranted and without this no business can be possible. This commissions is not also excessive. Our attention was also drawn to a Tribunal decision, Bombay Bench B in the case of First ITO vs. French Dyes and Chemicals (I) (P) Ltd. (1985) 21 TTJ (Bom) 412 (SB). In the said decision there are certain observations made regarding non-disclosure of names, as the ld. Members observed that disclosing a name would create problems, with which we agree. In other words we are fortified by the said decision in our finding. Even as per consistent view of this Bench, addition of this type paid to boost up the sales, has been held as allowable. In the light of the above discussion and for the reasons given by the AAC in her order, his action is hereby confirmed. 5. In the result, assessee s appeal is partly allowed and the Revenue s appeal is dismissed.
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1985 (6) TMI 58 - ITAT CHANDIGARH
Deductions, Capital Or Revenue Expenditure, Return Of Income, Advance Tax, Interest Payable By Assessee
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1985 (6) TMI 57 - ITAT CHANDIGARH
Advertisement Expenditure ... ... ... ... ..... rrespondence entered into with the agents prove that the commission was paid for rendering specific services. Promotion of sale would ordinarily imply expenditure incurred prior to effecting sales. Commission is paid after sales had been effected and as such it cannot be covered by the definition of words promotion of sales . It is a reward or a salary for effecting sales. There is a contractual relationship of master and agent. Agent takes the responsibility of supply of goods, ensuring payment and effecting after sale services under the warranty period. Thus, there are certain duties attached to the payment of commission. If there are no sales, there is no commission. As such, it cannot be said that the payment of commission is extravagant or socially wasteful expense. In the light of above discussion and for the reasons given by the Commissioner (Appeals) in his order his action is hereby confirmed. 7 to 9. These paras are not reproduced here as they involve minor issues.
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