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Showing 121 to 140 of 273 Records
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1985 (7) TMI 154 - ITAT DELHI-A
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... ... ..... account. 6. Coming to the merit of the case, categorical finding of the CIT is that the ITO had not examined the original entries in the diary which was seized from the assessee and it was admitted to be Shri Suresh Kumar rsquo s own diary. This finding is correct and I see no reason to interfere with it. The direction of the CIT, therefore, that the said diary should be examined and assessment should be redone in its context after giving proper opportunity of hearing to the assessee is, in my opinion, unexceptional. Completion of the original assessment without examining the diary in question was erroneous and prejudicial to the interest of the Revenue. In view of the above discussion I see no justification to interfere with the order of the CIT setting aside the original assessment order and directing fresh assessments after taken into account the entries in the seized diary and after giving opportunity of being heard to the assessee. Accordingly the appeal stand rejected.
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1985 (7) TMI 153 - ITAT DELHI-A
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... ... ..... du Buildings (Lease and Rend Control) Act. 1960 a landlord cannot claim or received anything in excess of fair rent or agreed rent. In the present case, it has not been shown that the rent agreed on 1st July, 1971 was sham or that the Tea Co. was in any way connected with the assessee Trust so as to charge less than adequate rent . Again, having regard to the Municipal valuation which is a relevant factor, it cannot be said that the rent of RS. 650 agreed between the assessee Trust and the Tea Co. was such as to shock the conscience of the Court or to be such as did not represent adequate rent. We are, therefore, of the considered view that the learned CIT was not justified in taking the view that the rent charged from the Tea Co. was not adequate and that the ITO should make a fresh assessment after denying to the assessee Trust exemption under s. 11. The order of the ld. CIT under s. 263 is accordingly quashed. 12. In the result, the appeal filed by the assessee is allowed.
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1985 (7) TMI 152 - ITAT DELHI-A
Charitable Or Religious Trust, Exemption Of Income From House Property Held Under ... ... ... ... ..... nd Rent Control) Act, a landlord cannot claim or receive anything in excess of fair rent or agreed rent. In the present case, it has not been shown that the rent agreed on 1-7-1971 was sham or that the Tea Co. was in any way connected with the assessee-trust so as to charge less than adequate rent . Again, having regard to the municipal valuation which is a relevant factor, it cannot be said that the rent of Rs. 650 agreed between the assessee-trust and the Tea Co. was such as to shock the conscience of the Court or to be such as did not represent adequate rent. We are, therefore, of the considered view that the learned Commissioner was not justified in taking the view that the rent charged from the Tea Co. was not adequate and that the ITO should make a fresh assessment after denying to the assessee-trust exemption under section 11. The order of the learned Commissioner under section 263 is, accordingly, quashed. 12. Inthe result, the appeal filed by the assessee is allowed.
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1985 (7) TMI 151 - ITAT DELHI
Business Disallowance ... ... ... ... ..... in as we observed earlier, while dealing with the assessee s appeal, the Commissioner (Appeals) has taken the line of comparing the like with the like to arrive at the conclusion of reasonableness or excessiveness in the payments. For the reasons which we have discussed earlier and also with regard to the point that gross profit disclosed was found to be reasonable, just like fabrication charges, embroidery charges also formed part of the trading account, to say that there was inflation in embroidery work would be inconsistent with the finding that the rate of gross profit is reasonable. We, therefore, agree with the Commissioner (Appeals) s view that there was absolutely no justification for the addition of the sum of Rs. 2 lakhs. The deletion is justified and we confirm it. 7 and 8. These paras are not reproduced here as they involve minor issues. 9. In the result, the appeal filed by the assessee is allowed in part while the appeal filed by the department stands dismissed.
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1985 (7) TMI 150 - ITAT CUTTACK
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... ... ..... hat an estimate or a statement did not accompany the said payment does not, in our opinion, mean that the amount is anything other than advance tax. This conclusion is supported by the decision in the case of Traub (India) (P.) Ltd. The case of Kangundi Industrial Works (P.) Ltd. is distinguishable on facts because in that case, the assessee had been served with a notice under section 210 to pay advance tax on the specified dates. In the instant case, the assessee had not yet been served with a notice under section 210 and so, it was open to the assessee to make payment of advance tax on any day he choose. 11. For the above reasons, we come to the conclusion that there was no error in the assessment order passed by the ITO after obtaining prior approval of the IAC under section 144B and so, the jurisdiction assumed by the Commissioner under section 263 is not sustainable in the eye of law. 12. In the result, we cancel the impugned order under section 263 and allow the appeal.
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1985 (7) TMI 149 - ITAT CUTTACK
Discontinued Business ... ... ... ... ..... e of merger in the sense that the order under section 263 was passed after the appellate order was passed. Similar is the position in the case of Russell Properties (P). Ltd. Hence, relying on the only authority available on the issue before us, viz., Eimco-K.C. P. Ltd. s case we reject this ground. 14. The next ground relating to applicability of section 176(3A) was not pressed before us and so, we reject the same. 15. The last ground in this appeal is based upon the misconception that the order under section 263 was passed after 22-7-1981 which, as we found earlier, was not a fact. Hence, we do not find force even on this ground and so, we uphold the order of the Commissioner passed under section 263. 16. In the result, the first appeal being assessee s appeal for the assessment year 1975-76 is allowed while the remaining three appeals being the departmental for the assessment years 1975-76 and 1977-78 and the assessee s appeal for the assessment year 1977-78 are dismissed.
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1985 (7) TMI 148 - ITAT COCHIN
Deductions, Income Of Co-operative Societies ... ... ... ... ..... its expeller. The society had actually collected hulling and expeller charges from its members. In the question referred to the High Court also it is stated whether the assessee was entitled to exemption under section 81(i)(c) in respect of its income from marketing of agricultural produce of its members after processing it with the aid of power. Thus, it is clear that it is a case of marketing of agricultural produce of its members and, hence, that decision is not applicable. The decision in Gujarat State Warehousing Corpn. s case is a case of warehousing corporation dealing with exemption under section 10(29) of the Act and that has no application to the facts of the instant case. Thus, in our view, the assessee is not entitled for exemption under section 80P(2)(a)(iii). The Commissioner (Appeals) was wrong in allowing the exemption to the assessee. We reverse the order of the Commissioner (Appeals) and restore the order of the ITO. 6. In the result, the appeal is allowed.
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1985 (7) TMI 147 - ITAT COCHIN
Accounting Year, Chargeable To Tax, Trading Receipt ... ... ... ... ..... hen it would be open to the assessing authorities to come to the conclusion that, in spite of the adoption of the mercantile system of accounting, the amount has not accrued to the assessee. . . . Therefore, when the price of the drugs supplied by the assessee-company to the Health Services Department was only tentative but not fixed by contract or otherwise the entries made in accounts represent only mere claims. They do not represent any accrued income or income received. Therefore, the impugned order of the Commissioner (Appeals) is quite justified and we hold that the amount of Rs. 4,86,349 is rightly deleted. 11. As regards the second ground it is covered by the Madras Special Bench decision in Pioneer Match Works v. ITO 1982 1 SOT 331 where it is held that the Central subsidy amount cannot go to reduce the real cost of plant and machinery for the purpose of granting depreciation. Hence we are unable to find any merit in the departmental appeal and hence it is dismissed.
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1985 (7) TMI 146 - ITAT CHANDIGARH
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... ... ..... e period of limitation to expire. The notice issued under s. 147 (1) (b) was, therefore, held to be valid. In view of the above discussions we have no hesitation in holding that the ITO Central Circle V validly assumed jurisdiction under s. 147 (b) of the Act and rightly issued notice under s. 148 calling upon the assessee to file the return of her total income for making reassessment as income had escaped assessment within the meaning of s. 147 (b) of the Act. We, therefore, do not find any jurisdiction to interfere with the order of the authorities below on this point. 7. Another ground of appeal by the assessee is that the AAC has erred in rejecting the appeal of the assessee without going into the merits of the case. To this extent, we agree with the assessee and restore the issue regarding determination of grounds of appeal regarding quantum to the file of the AAC to be decided after giving opportunity to both the parties. 8. In the result, the appeal is partly allowed.
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1985 (7) TMI 145 - ITAT CHANDIGARH
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... ... ..... of the Full Bench and earlier decision having been overruled, which was relied upon by the Tribunal in earlier cases, and also finding that this is the only Full Bench decision available on the issue which goes against the assessee, earlier decision of the Tribunal has to be reviewed and the issue decided in favour of the Revenue. We are, therefore, unable to confirm the action of the AAC. We are persuaded to have a different view then before because of Full Bench decision in Chhotalal and Sons vs. CIT (1985) 44 CTR (Guj) 149 (1984) 150 ITR 27 (Guj) whch overrules earlier decision in CIT vs. Sajjanraj Devanchand (1981) 21 CTR (Guj) 26 (1980) 126 ITR 654 (Guj). Since the learned counsel for the assessee was not in a position to bring any other decision to our notice from Full Bench of any other High Court even Gujarat High Court decision has got to be followed, as per Godawari Devi s case. The action of the AAC is, therefore, reversed. 6. In the result, the appeal is allowed
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1985 (7) TMI 144 - ITAT CHANDIGARH
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... ... ..... ay, 1984. Therefore, on that basis, we cancel the penalty. However, we are not going into the other reasons forwarded, though it is not clear as to how total penalty of Rs. 18,331 was reduced by the AAC to Rs. 9,166 as he took into consideration conduct of the assessee in respect of assessment years right from 1971-72 to 1972-73 and he found that some of the returns were filed in time while others were late. But we are not concerned with that aspect of the matter, as we have cancelled the penalty on simple basis that since s. 139(8) interest stands charged, in the light of CIT vs. M. Chander Shekhar (1985) 44 CTR (SC) 110 (1985) 151 ITR 433 (SC) penalty cannot be sustained. 5. ITA No. 117 The revenue in its appeal has contested the reduction of penalty from Rs. 18,331 to Rs. 9,166. Since we have allowed the assessee s appeal, automatically the Revenue s appeal is not left with any life. 6. In the result, assessee s appeal is allowed whereas the Revenue s appeal is dismissed.
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1985 (7) TMI 143 - ITAT CHANDIGARH
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... ... ..... if any further evidence was required that may be made known to the assessee but no such requisition was made by the ITO for furnishing evidence from all the workeRs. The CIT (A) has recorded a clear finding that the claim represented the contractual obligation on accrual basis as is evident from the extract reproduced above The ld. counsel for the assessee also filed in the paper book a copy of the order of the ITO for asst. yr. 1982-83 where the full claim of the assessee for leave with wages has been accepted, inasmuch as to addition on this account has been made. Even this conduct on the part of the ITO established that it is a case of contractual obligation and not under the Factories Act as considered by the ITAT for the asst. yr. 1972-73. In view of the fact that the obligation is contractual the claim of the assessee on accrual basis is admissible in full No interference with the order of the CIT(A) is, therefore, called for. 6. In the result, the appeal is dismissed.
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1985 (7) TMI 142 - ITAT CHANDIGARH
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... ... ..... AC, the approval by the superior authority could not be regarded as an order passed by him and, therefore, the CIT was competent to invoke jurisdiction under s. 33B of the IT Act, 1922. The facts before us are different inasmuch as here the ITO had contemplated an addition of Rs. 22,849 but was ordered to be not included in the income of the assessee by the IAC, Therefore, the ratio of the decision of the Calcutta High Court is also not available to the Revenue. 7. In view of the detailed discussions made above, we have no doubt in our mind that the CIT is not competent to invoke jurisdiction under s. 263 of the IT Act where the order has been passed by the ITO in consequence of the directions issued by the IAC under s. 144A. The assessee, therefore, succeeds. The order of the CIT being without jurisdiction is annulled. 8. Since we have annulled the order of the CIT we are not going into other grounds of appeal raised by the assessee. 9. In the result, the appeal is allowed.
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1985 (7) TMI 141 - ITAT CHANDIGARH
Advertisement Expenditure ... ... ... ... ..... C/o free sampling given to Shri Harcharan Singh and 498.26Shri Mohinder Singh. July 1976To C/o free sampling given to Shri Mohinder Singh and 1,290.99Shri T.K. Gupta.To C/o free sampling given to Piccadilly Cinema, 1,548.08Chandigarh. August 1976To C/o free sampling given to Shri Pritam Singh on his 1,857.34daughter s marriage.To C/o free sampling given to Shri Mohinder Singh on his 1,747.96daughter s marriage.To amount of free sampling given to Shri H.R. Seth. 620.16To amount of free sampling given to Shri B.P. Gupta 1,345.17and Shri Arjinder Singh.To free sampling given to Shri Harcharan Singh and Shri 1,700.69Mohinder Singh. ----------Total 41,767.90 ---------- 5. Before we part with the matter, we may observe that the assessee s claim in respect of free sampling, as detailed above, is nothing but an action of obliging friends and relations and it cannot be permitted to be deducted legally as advertisement expenses. 6. In the result, the revenue s appeal is partly allowed.
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1985 (7) TMI 140 - ITAT BOMBAY-E
Property Passing On Death ... ... ... ... ..... he intrinsic value of the shares which had taken place by reason of death of the deceased. This plea requires consideration and if, on considering the materials the conclusion was that the value of the property had in fact depreciated by reason of death of the deceased, the said depreciation should be taken into account in fixing the price. In the present case, this aspect has not been considered at all. In the circumstances, we have no option but to restore the matter to the Controller (Appeals). We restore the matter to him with direction that he would give opportunity to both the parties to bring on record the necessary material for determining the question whether the value of the shares of Hico Products Ltd., had depreciated by reason of the death of the deceased. If it is proved to his satisfaction that the value had so depreciated that depreciation shall be taken into account and the price shall be estimated accordingly. 13. In the result, the appeal is partly allowed.
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1985 (7) TMI 139 - ITAT BOMBAY-D
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... ... ..... d in that behalf a security deposit of Rs. 2,22,300 had been made with the purchaser. Owning to the inability of the assessee, the machine was not purchased and the purchaser forfeited the amount. That is how the amount was lost and the assessee is asking for the same to be treated as a trading loss. If the purpose had gone forward, it would have resulted in acquisition of a capital assets. The payments, therefore, was in the capital filed. This infructuous expenditure cannot assume a different complexion merely because the contract of purchase fall through. Consequently, we hold that the forfeiture had resulted only in a capital loss and the same cannot be treated as a revenue loss. The disallowance is, therefore, confirmed. 17. In the result, the appeal by the Revenue is dismissed except in regard to ground No. 3 pertaining to relief under s. 80-O which is remanded to the first appellate authority for fresh decision on merits. The appeal by the assessee is allowed in part.
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1985 (7) TMI 138 - ITAT BOMBAY-D
Property Passing On Death, Made Within Statutory Period, Principal Value Of Estate ... ... ... ... ..... der this head. It is the actuarial value as on the date of death in respect, of the said renewal commission, which would constitute property passing on death. Such actuarial valuation would take into account the future contingencies about lapsing of certain policies. The parties were not in a position to state before us whether the figure of Rs. 63,257.35 mentioned in the certificate of the LIC represented actuarial valuation or not. If it did not represent actuarial valuation, the assessee would be entitled to obtain such valuation and submit for inclusion. We, therefore, set aside the order of the Controller (Appeals) on this point and restore the matter to the Assistant Controller with direction to give opportunity to the accountable person to produce such material as he considers necessary on this point and include the value of the beneficial interest in the renewal commission as on the date of death of the deceased. 12. In the result, both the appeals are partly allowed.
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1985 (7) TMI 137 - ITAT BOMBAY-D
Charitable Or Religious Trust ... ... ... ... ..... ssessee is not carrying on a business but has only let out the asset for fetching the maximum lease income. 11. The decisions also support the assessee s case. That the intention of the assessee to make good income out of the asset and not to do business is a relevant criterion, is clear from the decisions in the cases of New Savan Sugar and Gur Refining Co. Ltd. and Sultan Bros. (P.) Ltd. The decision of the Bombay High Court in the case of D.L. Kanhere directly deals with the case of a cinema lease and fully supports the assessee s stand. The decision in the case of Karanpura Development Co. Ltd. lays down that the objects, powers and intention of the assessee have to be seen in arriving at a decision about the activity of the assessee. Both on facts and in the light of the principles laid down by the decisions, we hold that the assessee-charitable trust does not carry on a business and would not be caught by the provisions of section 13(1)(bb). 12. The appeals are allowed.
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1985 (7) TMI 136 - ITAT BOMBAY-A
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... ... ..... . However, the prices slowly picked up. Thus, the price of the flat would be more in subsequent months, so far as Meena Kumari s flat is concerned it has been sold in April 1983 and the flat is at Bandrar. The case is therefore, not at all comparable. Having regard to all these aspects, particularly keeping in view that the IAC (Acq.) himself dropped the acquisition proceedings in the case of second floor in Prithvi Apartments which was sold at the rate of Rs. 700 per sq. ft. on 27th Nov., 1982 and the fact that the flat in question was not ready for occupation and the transferees had to incur a cost of about Rs. 1 1/2 lakhs on it and were able to occupy it in April, 1984 only, we hold that on the basis of material on record, it cannot be accepted that the apparent consideration does not represent the fair market value of the flat. In this view of the matter, we hold that the order of the IAC (Acq.) cannot be sustained even on merits. 8. In the result, the appeal is allowed.
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1985 (7) TMI 135 - ITAT BOMBAY-A
Assessment Year, Charitable Or Religious Trust, Charitable Purpose, General Public Utility, Income From Property, Religious Purpose
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