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Case Laws
Showing 121 to 140 of 233 Records
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1987 (10) TMI 118 - ITAT MADRAS-C
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... ... ..... he Will came into operation and the assessee had a right to receive the policy amounts. Such right was property and the market value thereof had to be determined for wealth-tax purposes. Merely because the LIC disputed the claim or even refuted it, the assessee s right did not cease to be property. Such right had to be valued on each of the relevant valuation dates. In the view that we have taken, the value of such right on each of the valuation dates at 30 per cent would have come to Rs.1,18,740 or in round figures Rs.1,20,000. This would have been the value we would have upheld were we to come to the conclusion that the provisions of s. 19A were not applicable. But having held that the provisions of s.19A are applicable, as we have already held, no portion of the amount of Rs.3,95,870 is assessable in any of the, the years in the hands of the assessee as legatee. Hence the said amount would fall to be excluded as held by the AAC and the appeals on the Revenue are dismissed.
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1987 (10) TMI 117 - ITAT MADRAS-C
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... ... ..... without any objection and let the ITO to make an assessment order against the deceased, it would not be open to such a person to take up a plea as a last resort that the proceedings were a nullity especially when the consequence of permitting him to raise such a plea would be to debar a fresh assessment on him. Such a case, according to the Gujarat High Court, would constitute an exception to the general rule that an assessment against a dead person is a nullity and though gross irregularity is involved, especially when there is apparent indifference and not more inadvertence on the part of the ITO, the assessment would still be valid and effective qua the legal representative. Viewed from the ratio of this judgement also, the order of the CIT(A) setting aside the assessment in the present case and ordering for bringing on record all legal representatives and making an assessment on them is, in our view, a proper order. 7. In the result, the appeal fails and stands dismissed.
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1987 (10) TMI 114 - ITAT MADRAS-C
Deduction, Intercorporate Dividends ... ... ... ... ..... o Managing Director, other salary, rent travelling, conveyance, motor car expenses, Director sitting fees, legal charges for representing income-tax case, some expense on maintenance of property, etc. The aforesaid items came to over Rs. 75,000. These are all items which are clearly admissible deductions u/s. 37 of the IT Act in computing the business income. There was also a nominal amount of bank charges of only Rs. 40 which was allowed under the head Business income . We do not consider on the facts of this case that there was any warrant, for making any apportionment of the expenditure which was rightly allowed u/s 37 in arriving at the surplus assessed under the head Business , between the heads Business and Other sources . Accordingly, we are of the view that there is no mistake prejudicial to the interests of the revenue in the assessment as made. Therefore, we set aside the order u/s. 263 of the CIT and restore that of the ITO. 6. In the result, the appeal is allowed.
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1987 (10) TMI 113 - ITAT MADRAS-C
Carry Forward And Set Off Of Business Loss, Losses ... ... ... ... ..... on. The observations of the Supreme Court only state that carry forward of loss pre-supposes the permissibility and possibility of carried forward loss being absorbed or set off against profits and gains of a subsequent year. In the present case, the losses were incurred in a year in which the assessee was a resident. There was the possibility of the loss being carried forward and absorbed and on a plain reading of the statute, even if the status changed, there was also the permissibility of such set off. We are, thereof, of the view that the interpretation which we have placed does not in any way go against the ratio of the judgement of the Supreme Court referred to. We would, for the sake of completeness, state that the assessee had also relied on a decision of the Tribunal in ITA NO. 287/Mds/34 dt. 30th April, 1985 in which the conclusion arrived at was similar. The result is that we have to agree with the findings of the CIT (A) and the appeal of the Revenue is dismissed.
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1987 (10) TMI 112 - ITAT MADRAS-C
Net Wealth, Executors ... ... ... ... ..... had a right to receive the policy amounts. Such right was property and the market value thereof had to be determined for wealth-tax purposes. merely, because the LIC disputed the claim or even refuted it, the assessee s right did not cease to be property. Such right had to be valued on each of the relevant valuation dates. In the view that we have taken, the value of such right on each of the valuation dates at 30 per cent would have come to Rs. 1,18,740 or in round figures Rs. 1,20,000..This would have been the value we would have upheld for inclusion in each asset. year were we to come to the conclusion that the provisions of section 19A were not applicable. But having held that the provisions of section 19A are applicable, as we have already held, no portion of the amount of Rs. 3,95,870 is assessable in any of the years in the hands of the assessee as legatee. Hence, the said amount would fall to be excluded as held by the AAC and the appeals of the revenue are dismissed.
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1987 (10) TMI 109 - ITAT MADRAS-A
Business Expenditure, Mercantile System Of Accounting ... ... ... ... ..... e account in the year of reimbursement. In the circumstances the provision made by the assessee reflects the price differential which is an extra liability to be borne by the assessee in the course of carrying on the business and in the capacity of a businessman in respect of a present obligation which is to be discharged subsequently. In the case of the assessee following mercantile method of accounting the provision made for the definite obligation is in accordance with the method of accounting consistently followed by the assessee and will be permissible deduction in computing taxable profits. Reliance was placed on the dicta of the Supreme Court laid down in the case of CIT v. Gemini Cashew Sales Corpn. (1967) 65 ITR 643. In this view of the matter we reverse the orders of the authorities and direct the Income tax officer to allow the claim of the assessee as a deduction in computing the total income for the assessment year 1981-82. 6. In the result the appeal is allowed.
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1987 (10) TMI 107 - ITAT JAIPUR
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... ... ..... nt case, there is absolutely on such finding available or there is no evidence that is placed on record by which it could be concluded that CIT(A) had not properly examined or had come to a wrong conclusion without examining certain facts. Even these are absent in the instant case. The various case laws cited by the assessee and that of the Department only lay down the principles which have been observed by us above and, rather, our observed by various authorities. We are, therefore, of the view that merely for the reason that in the initial few days of the start of M/s Oswal Traders the partners of the assessee firm having provided some help in setting it up does not lead to the conclusion that the firm belongs to the assessee firm. The ld. CIT(A) was, therefore, justified in allowing the appeal of the assessee and there being no infirmity in his order nothing contrary having been brought on record by the Department, we confirm his order and dismiss the departmental appeals.
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1987 (10) TMI 106 - ITAT JAIPUR
Question Of Law ... ... ... ... ..... ent made in the assessee s own case. It is now settled law that if the point raised don reference relates to the construction of a document or the interpretation of the relevant provisions of the statute, it is a pure question of law - See Oriental Investment Co. (P.) Ltd. v. CIT 1969 72 ITR 408 (SC), G. Venkataswami Naidu and Co. v. CIT 1959 35 ITR 594 (SC), and a host of other decisions of the Supreme Court. I am therefore of the opinion that the order passed by the Tribunal gives rise to a question of law notwithstanding the fact that identical amounts were allowed as a deduction in the earlier assessment years, which fact is relevant for the purposes of allowing it as a deduction more than for deciding whether such a deduction would give rises to a question of law or not. 6. I therefore, agree with the view expressed by the learned Judicial Member. The matter will now go before the regular Bench for the disposal of the reference application according to the majority view.
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1987 (10) TMI 105 - ITAT HYDERABAD-B
Deemed Dividend, Accumulated Profits, Hundi Loans ... ... ... ... ..... 20-9-1984 and another order dated 6-8-1986 in IT Appeal Nos. 146 and 147/Hyd/86 held that once their identity and genuineness is not doubted and the document is in English, no disallowance can be made under section 69D. We find that the documents in the assessee s case are similar to the documents in the above cases. The reasoning given therein would equally apply to the instant case. We follow the above orders of the Tribunal. In the instant case, the confirmatory letters of the parties with their income-tax file numbers have been furnished. The identity and the genuineness of the transactions is not doubted. The documents are in English. They cannot be called as hundi documents. Hence, they are not hit by section 69D. Following the above Tribunal orders, we hold that the addition of Rs. 2,15,343 cannot be sustained. Accordingly, we delete the same. 10. Other grounds raised in the appeal are not pressed and they are rejected. 11. In the result, the appeal is partly allowed.
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1987 (10) TMI 104 - ITAT HYDERABAD-B
Valuation Of Assets, Interest Of Partner In Firm ... ... ... ... ..... usted while competing the interest of the assessee in the firm of M/s. Universal Oxygen Company, Vijayawada (kurnool). The other decisions need not specifically be dealt with as we are satisfied that the assessee is entitled to succeed in this appeal even on consideration of the authorities, so far consider by us. The request of the learned Departmental Representative that the matter should be restored back to the WTO to ascertain the market value of the empty cylinder, according to us, is not permissible as it would amount to giving opportunity to the revenue to fill up gaps in its case. We, therefore, set aside the impugned order of the AAC and direct the Wealth-tax Officer to allow Rs. 9,90,000 as a liability, Assuming without admitting that the value of gas cylinders is about Rs. 3,78,567 even then nothing can be assessed as there turned figure was a loss of Rs. 3,78,567. Hence, in any view of the matter the appeal of the assessee is to be allowed and hence it is allowed.
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1987 (10) TMI 103 - ITAT DELHI-D
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... ... ..... nd pleasure sometimes the dak was refused and sometimes it was accepted. The law of limitation operates alike on the assessee as well as the department. Once the limitation starts running, it does not stop for any one unless the law excepts any gap. In the present case there is no request for the condonation of delay from the sides of the department. It is another matter that even if such a request was there and the delay was held explained, we could not have condemned a delay of more than 30 days under section 27(2). Here since service, by refusal, was made on26-6-1986the delay was of 220 days which could not be condoned. The assessee respondent s preliminary objection has therefore to be upheld and as a result, these Reference Applications will have to be rejected in limine as time barred. In view of the preliminary objection, the parties were not called upon to address us on the merits of these Reference Applications. 4. The Reference Applications are accordingly rejected.
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1987 (10) TMI 102 - ITAT DELHI-C
Business Income, Chargeable As ... ... ... ... ..... n of the Supreme Court in P.M. Mohammed Meerakhan v. CIT 1969 73 ITR 735. We, therefore, agree with the CIT Appeals that the assessment of the profit should be on the basis that it was a business profit. The computation of such profit is not in dispute before us as there are no grounds challenging the computation of business income. 12. Coming to the assessee s alternative contention, we may observe that, in view of our finding, it is not necessary to decide that issue. However, we agree with the Departmental Representative that having regard to the various decisions, capital gains on the sale of agricultural land cannot be considered to be an agricultural income. On the second ground also, we do not find any force in the submission of the learned Counsel for the Assessee. As already stated, our observation in this regard is only for the proper disposal of the matter. For both the years, therefore, we dismiss the Departmental appeals and the cross objection is also dismissed.
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1987 (10) TMI 101 - ITAT DELHI-B
Depreciation, Extra Shift Allowance ... ... ... ... ..... r has been placed before us and we find no reason whatever in the order of the Commissioner to show how extra shift allowance was admissible in the case of cold storage. The only reason discernible from his order is that a cold storage plant has to run all the 24 hours. That is a compulsion by the very nature of the activity and it does not mean that the machinery is being subjected to any extra burden than usual. We do not know of any cold storage or ice factory in which the plant is closed after running 8 hours or 16 hours in a day and the learned counsel for the assessee did not point out any such practice in this line of activity. We are, therefore, of the view that the assessee was not entitled to any extra shift allowance but was entitled to depreciation 15 per cent as against 10 per cent allowed. We accordingly allow the revenue s appeal and setting aside the order passed on this point by the CIT (A), we direct the ITO to allow depreciation to the assessee 15 per cent.
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1987 (10) TMI 100 - ITAT DELHI-B
Return Of Income, Revised Return ... ... ... ... ..... ime to consider the revised return. 11. For the reasons discussed above, we are of the opinion that in the present case the revised return was filed within the time prescribed u/s 139(4)(b), it was a valid return and would extend the period of limitation for the completion of assessment in terms of section 153(1)(c) and the assessment was made by the ITO within such extended period of limitation. The assessment made by the ITO, therefore, was not invalid on that account. As already mentioned the learned AAC has not disposed of the other grounds raised in the appeal before him and his order under appeal has to be reversed. The matter will, therefore have to go back to the learned AAC for disposal of the other grounds raised in the assessee s appeal. 12. The revenue s appeal is therefore, allowed. The order under appeal is cancelled and the learned AAC is directed to re-hear the assessee s appeal on other grounds and dispose them off on merits. The cross-objection is sustained.
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1987 (10) TMI 99 - ITAT DELHI-B
Question Of Fact, Partition In HUF ... ... ... ... ..... y prior to18-6-90. This has therefore nothing to do with the previous years coinciding with the assessment years except that this relates to the fact of assessment being made prior to18-6-90. Since the object of clause (a) of subsection (9) of section 171 is to nullify the effect of recognition of partitions made before 18-6-90 in respect of partitions taking place after 31-12-78, the importance of making an assessment in the status of HUF prior to 18-6-90 assumes significance. It is for this reason I am unable to agree with the learned Judicial Member when he proposed that a question of a law dies arise out of the order of the Tribunal because the previous year for the assessment year 1980-81 ended on Diwali 1979 in which year the claim for partial partition in the HUF was made. 12. For these reasons, I express my agreement with the view expressed by the learned Accountant Member. The matter will now go before the regular Bench for disposal according to the majority opinion.
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1987 (10) TMI 98 - ITAT DELHI-A
Assessable As Income, Non-resident Company, Actual Operating Cost ... ... ... ... ..... s with the money irretrievably for this purpose of his business. If there is a prospect of recovery of money by reimbursement or the money is spent at the behest of someone else with a promise to reimburse it that would never be the expenditure contemplated for deduction under the Income-tax Act. This is amply borne out by a series of decisions and I would like to rely for my present purpose on one decision of the Orissa High Court in Sajowanlal Jaiswal v. CIT 1976 103 ITR 706. Though for the purpose of section 40A (3) of the Income-tax Act, the word expenditure used in section 40A (3) came up for interpretation in this case their Lordships of the Orissa High Court relying upon the meaning assigned to the word expenditure in the dictionaries, because the word expenditure was not defined in the Income-tax Act, held that the expenditure was such where money was spent irretrievably. This would show that the money spent by the assessee, in this case, was not for its own purposes.
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1987 (10) TMI 97 - ITAT DELHI-A
Reference, Question Of Fact ... ... ... ... ..... e or mistake of the ITO. Therefore, the Appellate Tribunal took the view that there was no information within the meaning of section 17(1)(b) contained in the audit objection or audit note which could have justified the reopening of the assessment as interpreted by the Supreme court in the case of Indian and Eastern newspaper Society v. CIT 1979 119 ITR 996. Therefore, the Appellate Tribunal upheld the conclusion reached by the learned AAC. 5. We have heard the learned representatives on both the sides on these reference Application. At the outset it may be noticed that so far as the proposed question No. 1 is concerned, the Appellate Tribunal had mentioned the basis for holding that there was no information contained in the revenue audits objection. The finding of the Appellate Tribunal in that regard was also based on facts. Therefore, based upon such findings, no question or questions of law could be said to arise. 6. The Reference Applications therefore fail and rejected.
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1987 (10) TMI 96 - ITAT DELHI-A
Business Expenditure ... ... ... ... ..... the arbitrator. No award is seen to have been published on such stamp paper. Furthermore, the award is a mere piece of paper unless the same is made a rule of the court. In the present case no such procedure is seen to have been followed. Thus, the so-called award is a mere piece of paper not creating any liability against the assessee and in favour of the other party. 10. In the light of the above discussion it is seen that no expenditure was required to be incurred by the assessee in connection with his business and covered under section 37 of the Income-tax Act, 1961. This business expediency is not established. Thus, for these reasons and the reasons of the lower authorities we are inclined to hold that the disallowance was rightly made and such action was correctly confirmed by the learned Commissioner of Income-tax (Appeals). Since we see no mistake in the finding, the same is confirmed. 11. The paper book has been considered. 12. In the result the appeal is dismissed.
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1987 (10) TMI 95 - ITAT DELHI-A
Penalty For Concealment, Purchase In Cash ... ... ... ... ..... nor it is a case of furnishing of inaccurate particulars, so as to defraud the revenue. Therefore, the penalty is not imposable on facts. 10. The Hon ble Delhi High Court in the case of Mediratta Engg. Corpn. had a case before them in which a sum of Rs. 24,00 was debited in the books of the assessee towards the purchases of nickel but the assessee was not in a position to produce the Kawari from whom the purchase had been made and the amount had been surrendered by the assessee for taxation. Even, then theHon ble Courtheld that this was merely a case here an expense claimed by the assessee had been disallowed for want of complete proof. The penalty was, therefore, not imposable. The ratio of this case is applicable to the case before us. We are, therefore, satisfied that there is no case for imposition of penalty upon the assessee. The penalty levied by the ITO by his order dated 30th January, 1984 is and amended by his order dated 8-10-1984 is cancelled. 11. Appeals allowed.
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1987 (10) TMI 94 - ITAT DELHI-A
Revision, Orders Prejudicial To Revenue ... ... ... ... ..... rview of the CIT u/s. 263 by virtue of the provisions in sub-section (2), ibid. The Legislature has not given retrospective operation to the newly substituted sub-section (2) in any manner either expressed or implied. Therefore, the position of law which is very clear on the basis of the assessee that an assessment u/s. 147 was not open to review u/s. 263 has not been taken away. Therefore, in our considered opinion the CIT did not have lawful jurisdiction to call for and examine the record with regard to the order made by the ITO on22-8-1983. Since the CIT did so, his order is ab initio void. We hold it so and cancel it. 11. We would like to observe that the parties before us addressed us on the merits of the case from both the sides. However, in view of our decision that the CIT had no lawful jurisdiction and the entire proceedings were ab initio void, we do not think it necessary to go into the merits of the case. 12. In view of what is stated above, the appeal is allowed.
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