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Showing 81 to 100 of 158 Records
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1986 (5) TMI 78 - ITAT INDORE
Assessment, Summary Assessment ... ... ... ... ..... section 144. As already observed above, when Form No. 6A is so filed, till it is disposed of the assessee shall not be deemed to be a defaulter in respect of the tax demanded on him and the same cannot be forcibly collected and that he would not be liable for any additional interest in respect of the tax so demanded. We are, therefore, unable to come to the same conclusion as has been arrived at by the AAC that the assessment gets automatically cancelled the moment Form No. 6A has been filed. We are also bound by the Supreme Court decision in the case of Kapurchand Shrimal where their Lordships have clearly observed that it would be the duty of the appellate authorities to set aside an order which is passed, for the reason, that it is not in accordance with the law and it would be their duty to give a specific direction for making of the proper assessment. We, therefore, quash the order of the AAC and restore that of the ITO. 6. The departmental appeal is accordingly allowed.
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1986 (5) TMI 77 - ITAT INDORE
Additional Evidence, Assessment Year, Firm Registration, In Part, Partnership Deed, Res Judicata
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1986 (5) TMI 76 - ITAT HYDERABAD-B
Business Expenditure ... ... ... ... ..... gation to pay interest should accrue. The liability to pay interest is as certain as the liability to pay cess. As soon as the prescribed date is crossed without payment of the cess, interest begins to accrue. It is not a penalty for which provision has been separately made by section 3(5). In truth the interest provided for under section 3(3) is in the nature of compensation paid to the Government for delay in the payment of cess. Ultimately, the Hon ble Supreme Court allowed the interest paid by the assessee before them as a revenue expenditure under section 10(2)(xv) of the Indian Income-tax Act, 1922 and allowed the appeal. Similarly, in this case we have to hold that the learned Commissioner (Appeals) correctly allowed Rs. 67,824 made up of Rs. 45,308 being the amount which is to be remitted towards deposit account and Rs. 22,526 which has been paid towards interest under section 23. In the result, there is no force in the departmental appeal and, hence, it is dismissed.
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1986 (5) TMI 75 - ITAT HYDERABAD-B
Firm, Registration, Continuation Of ... ... ... ... ..... 10-4-1985 signed by all the partners, in our opinion, should have been taken on file and the consequent delay should have been condoned. Further filing Form No. 12, scrutinising it are all procedural matters. Procedural law always is considered and applied in a manner so as to make it a handmaid to advance the cause of justice. The construction which has the effect of stultifying the benefit conferred by the statute should always be avoided. As there are conflicting decisions about the question of revisionary jurisdiction of the Commissioner with regard to continuation of registration under section 184(7) we have to prefer the Allahabad High Court decision cited before us as it is in favour of the assessee and hold that the Commissioner has no jurisdiction under section 263 with reference to the order granting continuation of registration under section 184(7). 15. In the result, the appeal is allowed. 16 to 26. These paras are not reproduced here as they involve minor issue.
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1986 (5) TMI 74 - ITAT HYDERABAD-A
Income From House Property ... ... ... ... ..... FCI and leased them out to FCI. The terms of the lease agreement provide that the assessee had also to render services by providing electricity, water supply, approach road, fencing, etc., and the assessee also undertook to repair the said godowns. The assessee claimed the activity of letting out the godowns constituted a business activity. The ITO disallowed the claim and computed the income under section 22 of the Act. The Commissioner upheld the ITO s order. The Tribunal ultimately confirmed the order of the Commissioner (Appeals) and treated the income derived by the assessee as income from house property and not as business income. As the said decision applies on all fours to the facts before us we respectfully follow it and hold that the lower authorities have correctly held that the income derived from the godowns let out to the FCI should be considered only as income from house property and not as business income. 13. In the result, the appeal fails and is dismissed.
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1986 (5) TMI 73 - ITAT HYDERABAD-A
Exemption, Gift To Spouse ... ... ... ... ..... maintenance after the death of the deceased. Hence, that case has no application. The decision of the Madhya Pradesh High Court in Shrigopal Rameshwardas v. Addl. CIT 1979 119 ITR 980 is a case relating to capital gains. While considering the word assessee in section 54 of the Income-tax Act, 1961 it was held that it refers only to living person and not fictional, artificial or juridical person. That decision has no application to the instant case. The decision of the Andhra Pradesh High Court in CIT v. Sanka Sankaraiah 1978 113 ITR 313 is a case dealing with section 64(1) of the Income-tax Act. It was held therein that the expression individual in section 64(1) does not comprehend in its meaning the karta of a joint Hindu family. That case has no bearing on the point in issue. 8. Thus, in our view, the assessee is entitled for the exemption under section 5(1)(viii) in respect of the gift, made to his wife to the extent of Rs. 50,000. 9. In the result, the appeal is allowed.
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1986 (5) TMI 72 - ITAT GAUHATI
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... ... ..... ubewells. On appeal the CIT(A) found that the tubewells were necessary to supply water needed for during the Asbestos manufactured by the assessee. These tubewells were not used for supplying drinking water at any residential premises. These deed tubewells were part and parcel of the factory complex itself. Hence, he directed that investment allowance in accordance with the law should be allowed on these tubewells. 9. We have heard Shri R. C. Joshi, ld. Representative for the Department who stated that the CIT(A) erred in his decision. On the other hand, Shri H. Khound, ld. Representative for the assessee supported the order of the CIT(A). We have considered the contentions of both the parties as well as the facts on record. We find force in the contentions raised for the assessee. In out opinion the CIT(A) has arrived at the correct decision in the facts and circumstances of the case and so we uphold his order on this point. 10. In the result, the three appeal are dismissed.
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1986 (5) TMI 71 - ITAT DELHI-E
Capital Asset, Gold Bonds ... ... ... ... ..... the above that the investment made by the assessee in gold bonds was on the totality of the facts and circumstances of the case and the overall impression gained therefrom, was an investment. This investment was to purchase an asset. Section 2(14) provides legal authority for its chargeability on the transfer of a capital asset. Now National Defence Gold Bonds are excluded from the definition of capital asset by sub-clause (iv) of clause (14) of section 2. This sub-clause (iv) was inserted by the Taxation Laws (Amendment) Act, 1962 with effect from13-12-1962. This was in operation during the assessment year under appeal. Therefore, capital gains arising from the sale of gold bonds on the facts of the case stated supra were exempt from tax. They could not be included into the total income of the assessee. The authorities below erred in bringing them to tax. We, therefore, direct that the amount of Rs. 31,500 be deleted from the total income of the assessee. 13. Appeal allowed.
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1986 (5) TMI 70 - ITAT DELHI-E
Method Of Accounting, Valuation Of Stock ... ... ... ... ..... question and (c) the general practice in similar business or profession 12. Even this provision of law entities the assessee to a claim of bonus if it is reasonable with reference to the pay of the employee and the condition of his service and is conformably to the general practice in similar business or profession also keeping in view the profits of the business for the previous year. Now in the case of the assessee as pages 72 to 76 of assessee s paper book reveal, payment of bonus is a stipulation of employment, i.e., a contract of service as a part of salary and it is specifically mentioned in all the three appointment letters that 20 per cent of salary shall be paid as bonus, hence, even section 36(1)(ii), (proviso) the claim is admissible as deduction. We hold and direct accordingly. On ground No. 3, the assessee succeeds. 13. In the net result, the appeal stands allowed partly, since on ground Nos. 1 and 3, the assessee succeeds and on ground No. 2, the assessee fails.
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1986 (5) TMI 69 - ITAT DELHI-E
Service Of Notice ... ... ... ... ..... these four years under section 17 have been held by us to be not valid and legal service vis-a-vis the person named therein, i.e., the assessee, penalties for these years stand cancelled. The assessee is held to be entitled to immunity under the provisions of the Voluntary Disclosure Scheme for belatedly filing of the returns for these years on31-12-1975. 9. As regards revenue s appeals, in the face of the categorical finding of the learned first appellate authority that for the assessment year 1971-72 as also for the assessment years 1974-75 and 1975-76, no notices under section 17 have been served, the revenue s appeals are held to be devoid of any force, since no material has been placed before us to controvert the above finding of fact. 10. In the net result, the assessee s appeals for the assessment years 1969-70, 1970-71, 1972-73 and 1973-74 succeed and stand allowed while revenue s appeals for the assessment years 1971-72, 1974-75 and 1975-76 fail and stand dismissed.
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1986 (5) TMI 68 - ITAT DELHI-C
Reassessment ... ... ... ... ..... point. 15. Ground No. 5 of the appeals in question read as below That without prejudice to the above grounds, the learned AAC ought to have directed the WTO to apply the rates of wealth-tax to Part A of the trust fund as if the said Part A was an independent trust and should not have merged the same with the Part B of the trust fund for the purposes of wealth tax inasmuch as according to the AAC the two parts of the trust are independent of each other, one of which is a specific and determinate and the other one is allegedly indeterminate. The submission made above are correct. Two separate assessments have to be made with regard to the trust funds, one of Part A under sub section (3) of section 21 and another of Part B in terms of sub section (4) of section 21. The orders of the AAC imply this yet in view of the aforesaid ground of appeal, we do clarify the position as desired by the assessee s learned counsel. 16. In the result, we will treat the appeals as partly allowed.
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1986 (5) TMI 67 - ITAT DELHI-C
Export Market Development Allowance ... ... ... ... ..... were either excessive or which were not due to the assessee under section 35B(1)(b). The ratio of the decision of the Tribunal in Industrial and General Products case, therefore, also does not help the case of the assessee at all. 15. In conclusion, we would hold that none of the grounds which had been preferred by the assessee in the three assessment years are tenable. The orders passed by the Commissioner are upheld in all the three assessment years. The jurisdiction was properly assumed by the Commissioner and the only one thing which can be said about the orders passed by the Commissioner is that he was lenient in granting certain deductions in the assessment year 1981-82 which were not in fact due to the assessee under the amended law. Since we have no powers of enhancing the assessment, we have left the orders passed by the Commissioner unaffected in the assessment year 1981-82. 16. For the abovementioned reasons all the three appeals filed by the assessee are rejected.
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1986 (5) TMI 66 - ITAT COCHIN
Balancing Charge, Purchase Of Lorry ... ... ... ... ..... e Bombay High Court has differed from the decision of the Mysore High Court in the case of Raja Bai Nikam v. CIT 1967 65 ITR 496. In the instant case the expenses claimed by the assessee, namely, finance charges and insurance were not directly referable to the realisation of the sale price. So even as per this decision also the claim of the assessee is not allowable. 6.2 Admittedly, the sale price was fixed at Rs. 1,15,000 as per the translation of sale agreement dated 1-4-1978 filed before us. Out of the same, it was agreed that an amount of Rs. 22,400 was to be paid to the assessee and Rs. 92,600 was to be paid to the Motor and General Finance Ltd., towards the outstanding loan. Who receives the sale price is immaterial. What is material is moneys payable for the sale of the asset. So, the AAC was not correct in holding that Rs. 81,820 represented the actual sale proceeds. We, therefore, reverse his order and restore that of the ITO. 7. In the result, the appeal is allowed.
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1986 (5) TMI 65 - ITAT COCHIN
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... ... ..... AAC nor before the Tribunal was it claimed by the revenue that there could be an assessment in the status of body of individuals . The Tribunal have in held that P could not be assessed, as an individual on the income derived from the firm was incompetent to modify or alter the status to that of body of individuals without notice to that body of individuals mandatorily required under section 139(2). The Tribunal should have annulled the assessment with liberty to the ITO to assess the income in the status of body of individuals, if permitted by law, after issuing notice to that body of individuals, to submit a return as required by section 139(2). 3. In the instant case, the departmental representative in the course of the arguments specifically urged that if the Tribunal finds that the assessment should have been made in the status of a firm finding may be given accordingly. So, in the instant case, the Tribunal is perfectly competent to alter the status to that of a firm.
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1986 (5) TMI 64 - ITAT COCHIN
Business Expenditure, Year In Which Deductible ... ... ... ... ..... n payment and since it is only a trade discount it cannot be allowed in view of the Kerala High Court decision in the case of Quilon Marine Produce Co. A perusal of the order of the ITO shows that the ITO has not disallowed the aforesaid payment as it was not a commission payment as contended by the departmental representative, but it was disallowed by the ITO on the ground that it was paid in India. Further, it is seen from the ITO s order that the ITO has not given any finding that it is a trade discount. Since this Bench of the Tribunal has been consistently following in a number of cases that the payment to Kasturi Nagesh Pai is an expenditure incurred for collecting information, etc., for the purposes of export business, we hold that the commission payment made to Kasturi Nagesh Pai amounting to Rs. 2,44,760 is an allowable deduction under section 35B. 10. In the result, the appeal filed by the assessee is allowed in part and the appeal filed by the revenue is dismissed.
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1986 (5) TMI 63 - ITAT COCHIN
A Partner, Assessment Year ... ... ... ... ..... nts as on the date of reconstitution, the profits had been apportioned on time basis. In the assessment, the income of the firm is determined and the same is allocated to the various partners and the minor in accordance with the shares specified in the deed. The profit sharing ratio is not altered. Therefore, it is incorrect to say that the partners have not distributed the profits in accordance with the terms agreed upon. Determination of the profits is beside the issue. A particular method adopted by the partners cannot be said to have been done with any design. So long as there are no mala fides, the genuineness of the firm is not open for any suspicion. The Commissioner (Appeals) has rightly concluded this issue against the revenue and we fully concur with the reasons given by him in paragraph 6 of his impugned order. 11. On the whole we are satisfied that the firm is genuine and registration has been rightly granted by the Commissioner (Appeals). The appeal is dismissed.
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1986 (5) TMI 62 - ITAT CHANDIGARH
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... ... ..... alth on account of value of the right to receive compensation for different years therefore, would work out as under. Asst. yrs. Value adopted by the WTO Less deduction to be allowed out of the value adopted by the WTO Balance to be included in the net wealth . . page Amount . 1979-80 9,23,650 15 per cent 1,38,647 7,85,103 1978-79 6,79,816 20 per cent 1,75,962 7,03,850 1977-78 7,55,008 25 per cent 1,88,752 5,66,260 1976-77 7,20,206 30 per cent 2,16,061 5,04,150 1975-76 6,85,404 35 per cent 2,39,191 4,45,510 1974-75 6,00,602 40 per cent 2,60,240 3,90,360 7. We however, do not find any merit in the submissions made on behalf of the assessee that no value is includible in the net wealth of the assessee for the assessment years. This issue stands settled against the assessee as per Supreme Court decision reported in (1980) 122 ITR 21 (SC) referred to above. 8. In view of the above discussions, the appeals by the Revenue are dismissed and those by the assessee are partly allowed.
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1986 (5) TMI 61 - ITAT CHANDIGARH
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... ... ..... in the case of CIT vs. D. Rajagopal (1984) 41 CTR (Kar) 5 (1985) 154 ITR 375 (Kar) the assessee was the Managing Director of a firm and was paid salary as such as director. His wife became a partner in that firm. In that case the finding of facts was that the husband was only a graduate and did not possess any technical qualification within the meaning of provisions of s. 64(1)(ii), therefore, his salary was included in the hands of the wife. In the instant case husband of the assessee is a specialist by experience of over thirty years and as such his salary was rightly excluded by the AAC. We are also in agreement with the definition given in the Webster Dictionary with which the AAC has very ably dealt in his order and making any observation will lead to the same conclusion arrived at by the AAC for granting relief to the assessee. In the light of above discussion, action of the AAC is hereby confirmed. 6. In the result, all the three appeals of the Revenue are dismissed.
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1986 (5) TMI 60 - ITAT CHANDIGARH
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... ... ..... al Technically speaking, there is no mistake either in the order of the Tribunal or the lower authorities as the claim made by the assessee was Rs. 78,776. At the same time, it cannot be denied that the investment allowance due is Rs. 1,05,035 being 25 per cent of the value of the machinery. One of the conditions is that the assessee should create reserve equivalents to 75 per cent of the investment allowance admissible. That reserve has been created by the assessee and debited to the profit and loss account. The only mistake committed by the assessee at that time was that he should have debited the entire claim and not 75 per cent thereof. These are factual mistake and, therefore, in our opinion, they need to be corrected. We accordingly, direct the ITO to allow investment allowance at Rs. 1,05,035 instead of Rs. 78,776 earlier allowed by the Tribunal. The order of the Tribunal, therefore, stands modified accordingly. 5. In the result, the miscellaneous petition is allowed.
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1986 (5) TMI 59 - ITAT CHANDIGARH
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... ... ..... the period 1st April, 1981 onwards will have to be excluded. The final shape will be like this Total enhanced compensation is Rs. 15,56,312. Out of this amount interest on the enhanced compensation for the period 1st April, 1981 to the final dates of payment will have to be excluded. Out of the balance amount 25 per cent will be deducted to arrive at the value of the right to receive enhanced compensation as on the valuation date viz. 31st March, 1981. The AAC as pointed out earlier, has allowed deduction of Rs. 1,00,268 out of the enhanced compensation awarded by the High Court. Even for this compensation, the amount of interest included therein for the period 1st April, 1981 to the date of payment shall first be excluded and on the balance, deduction, of 25 per cent will be given. The order of the AAC is modified accordingly. The WTO shall recalculate the additions to be made to the net wealth of the assessee on this basis. 10. In the result, the appeal is partly allowed.
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