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Showing 101 to 120 of 274 Records
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1989 (1) TMI 175
Assessment Year, Carrying On Business, Let Out, Profit On Sale ... ... ... ... ..... ly to the purchaser. 21. Applying Mrs. Shahzada Begum s case, it is explicitly clear that the Lordships of the A.P. High Court visualised a situation wherein the property had not been acquired but was in the process of being acquired that they had to pronounce the law as to whether something less or something lacking in the completed transaction, i.e., execution of a registered sale deed could answer to the requirements of section 54 of the Income-tax Act for claiming exemption from the exigibility of capital gains tax. In the circumstances of the case, to treat the payment of 92 of the cost of the property by the assessee to the seller coupled with the factum of the delivery of maiden s possession, in our opinion, is sufficiently an overtact to overlook the delay caused in the registration of the sale deed and treat the last factor as immaterial. The transaction, as we view, shall entitle the assessee to claim exemption under section 54. 22. In the result, appeal is allowed.
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1989 (1) TMI 174
Assessment Year, Valuation Officer, Valuation Report ... ... ... ... ..... Smt. Farida Banu wherein reference u/s. 16A was made and the report of the Valuation Officer obtained, the valuation of these properties, as returned by the assessee was accepted by the Wealth-tax Officer in the assessment year 1973-74 and not the higher valuation as determined by the Valuation Officer and the yet another circumstance that in the case of Smt. Bader Banu and Smt. Sayeeda Banu, other co-owners, the returned value was accepted for the assessment year 1973-74 on which issue we will not like to dwell in detail in view of our holding clearly that non-calling of a report from the Valuation Officer by the Wealth-tax Officer having jurisdiction in the case does not conform to the mandate of sec. 16A and fatal thereby disentitling the Wealth-tax Officer to take into consideration the valuation report though obtained in the case of other co-owners but by different Wealth-tax Officers. 10. In the result, we do not find any substance in these appeals which are dismissed.
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1989 (1) TMI 173
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... ... ..... s the assessee had provided in his paper book pages 1 to 4, the amount of advances received which were refunded in full and also copies of accounts in respect of advances received, which clearly indicate that they were transferred from the respective advances only. Therefore, to treat them as unexplained would be totally improper on facts and accordingly we confirm the order of the CIT(A) on these two issues as well. 10. In the cross objection the assessee has raised six grounds, out of which ground Nos. 1 and 2 are not pressed and as regards ground Nos. 3 to 6, he submitted that though the CIT(A) had remanded the issue back to the files of the ITO, the assessing officer having not carried out his directions by 31st March, 1988, it had become barred by time and consequently the issue raised by him are of academic importance only. Accordingly, these grounds are dismissed unanswered. 11. In the result, the appeal of the Revenue and cross objection by the assessee are dismissed.
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1989 (1) TMI 172
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... ... ..... t part of it. There are divergent views on the issue of merger. As some Courts have held that since the AAC has the authority of examining all that the ITO had examined, it should be concluded that the AAC had in fact considered all the matters as were done by the ITO, while some other Courts have held that where the AAC does not examined other issues, not raised in appeal before him, it has to be held that the theory of merger applies to the extent of matters that have been considered in appeal by the AAC. In view of the Supreme Court decision in the case of CIT vs. Vegetable Products (1973) CTR (SC) 177 (1973) 88 ITR 192 (SC), where two interpretations are available, the one i.e., favourable to the assessee has to be preferred. Respectfully following the said decision we would hold that the theory of merger applies in entirety to the other of the ITO and accordingly the CIT would not have any jurisdiction under s. 263. 6. In the result the appeal of the assessee is allowed.
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1989 (1) TMI 171
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... ... ..... clauses, the supplementary agreement dt.15th May, 1976between Satellite Engg.Co., and Meteor Pistons Milano was deemed to have been executed prior to1st April, 1976. In that case the Hon ble High Court of Gujarat was interpreting the proviso and Expln. 1 to s. 9(1) (vi) and had held that in truth and substance the agreement had been arrived at prior to1st April, 1976. They also held that the approval of the Central Government was not required to be given before1st April, 1976. 21. We are, therefore, of the view that even in regard to Indian Hotels Co., the assessee IHC was entitled to the benefit of the proviso to s. 9(1) (vii) in respect of 95 per cent of the receipts. Therefore, the orders of the learned CIT for asst. yr. 1984-85 and of the learned CIT(A) for the asst. yr. 1985-86 cannot be sustained. No other point or points were argued in these appeals before us. 22. In the result ITA 808 and 6570/Del/88 are allowed whereas S.P. No. 86/Del/88 is dismissed as infructuous.
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1989 (1) TMI 170
Assessment Order, Orders Prejudicial To Interests ... ... ... ... ..... Act relating to the failure to file the return could not be attracted unless the assessee had been given an opportunity of rectifying the defect within a time or extended time specified by the ITO for this purpose. Therefore, the learned Commissioner was not justified in annulling the assessment and in treating it as invalid right away. He should have only set aside the assessment order with directions to the ITO to give an opportunity to the assessee in terms of section 139(9) to remove the defect arising out of the return being unsigned and unverified. Thereafter, the ITO could have completed the assessment in accordance with law as mentioned above. Since this has not been done by the learned Commissioner, his order was modified to this extent that the assessment order will stand set aside with directions to the ITO to complete the assessment afresh after following the exercise mentioned in section 139(9) as referred to above. 6. In the result, the appeal is partly allowed.
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1989 (1) TMI 169
Assessment Year, Business Profits, Mineral Oil, Profits And Gains, Shipping Business ... ... ... ... ..... el for the assessee contended that Section 44B has been introduced w.e.f. 1-4-1983 under which the net income has to be determined at 10 per cent in the case of non-residents engaged in the business of providing services or facilities in connection with or supplying plant and machinery on hire or to be used in the prospecting of or extraction or production of mineral oils. The said provision was not on the statute book at the relevant time and here the assessees acting through the ONGC have agreed to the determination of their income at 15 per cent. They, therefore, cannot take the benefit of Sec. 44BB. Further the said section may not apply in the case of a mere transport vessel which is used merely to transport men and material to and fro. The facility hired out has to be intimately connected with the prospecting of oils etc. A mere transport facility cannot be governed by the provisions of Section 44B. 9. In view of the above discussion all the three appeals are dismissed.
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1989 (1) TMI 168
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... ... ..... e tow documents were considered by the tax authorities below. He now in addition also filed copies of assessment orders, relating to the instant year in the cases of these two donee foundations, showing that registrations under s. 12-A(a) were granted to them and they were allowed the benefit of s. 11. Thus, according to him, to tax authorities below erred in making denial of the claim. The learned Departmental Representative on the other hand supported the orders of the tax authorities below. 7. We prima facie find much force in the claim of the assessee, but since the claim has not been examined by the IAC (Asst) on merit, we deem it fit and proper to remit this point to the IAC (Asst) with the direction to examine the claim of the assessee on merit. The learned counsel for the assessee pointed out that IAC (Asst) may not be required to examine this point in case ultimately the income of the assessee is a minus figure. If this be so, the IAC (Asst) may not examine the same.
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1989 (1) TMI 167
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... ... ..... is can be done by passing an independent order indicating how the original order would stand amended. In this case neither the ITO has stated that the assessment order is amended nor he has stated the manner in which the same is intended to be amended. Towards the end of his order he states that interest is chargeable under s. 139(8) . Then he states that the mistake is apparent from record . But he nowhere states that the mistake is rectified and the original order is amended and if so how. He makes an independent order directing to charge interest under s. 139(8) which is not permissible under s. 154. 7. It is stated by the learned AAC that the interest chargeable in this case was Rs. 52,590 and it is unfortunate that although the assessee is sought to be burdened with such a heavy amount of liability, the officer would not bother himself even to pass a proper order. 8. For the reasons discussed above, we find no force in the present appeal and the same is hereby dismissed.
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1989 (1) TMI 166
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... ... ..... he case of the Department that this interest related to a period for more than one year nor was the claim of the Revenue that the rate charged was excessive It was also pointed out in the order of the Commissioner(A) that even in the earlier asst. yr. 1980-81 the interest was claimed by her husband and the assessee paid interest to her husband and the husband was assessed to tax on that amount. In these circumstances, we are of the view that the Commissioner(A) was justified in allowing the assessee rsquo s claim. While allowing the assessee rsquo s claim the Commissioner(A) had calculated interest on the amount of Rs. 40,000 due to the assessee by her husband and deducted the appropriate interest on that amount and allowed only the balance. We do not know whether this is the agreement reached between the parties but in any case there was no objection taken to this adjustment made by the Commissioner(A), by the assessee. We therefore confirm his order and dismiss this appeal.
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1989 (1) TMI 165
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... ... ..... ade. In addition, he asked the assessee to produce certain partners for this examination. The case was being heard from before and as already stated, a partner of the assessee did appear before the ITO on26th March, 1983and later inspected the books. Even if the letter dt.22nd March, 1983it treated as a notice under 143(2), it cannot be said that the assessee failed to comply with all the terms thereof. In our view, therefore, the ITO was fully justified in proceeding under s. 143(2) than under s. 144. 17. Further as is evident on28th March, 1983, the assessee filed a revised return and, therefore, under s. 153(1)(c), the assessment could be made within one year from that date i.e. upto28th March, 1984. The assessment was made on26th Sept., 1983and was, therefore, within time. We, therefore, do not find any infirmity int the assessment order The cross objection, therefore, has to be dismissed. 18. In the result, the Revenue appeal and the assessee s cross objection dismissed.
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1989 (1) TMI 164
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... ... ..... out of quarters to contractors, employees who were engaged in setting up of assessee s business was not chargeable to tax under any head of income. We, therefore, do not find any error in the orders passed by the learned CIT(A) and the Revenue s appeal has to be dismissed. 7. The assessee has filed cross objections challenging the finding of the learned CIT (A) that the reopening of the assessment under s. 147(b) was not valid. The learned counsel for the assessee conceded that in case the findings of the learned CIT (A) on the points raised in the Revenue s appeal are upheld, the assessee s objection would be merely academic. We, therefore, did not hear the parties on this issue and since in view of our findings discussed above, the cross objection raises a mere academic issue, we decline to decide the same and would reject the cross objection as infructuous. 8. In the result, the Revenue s appeal is dismissed, the assessee s cross objection is also rejected as infructuous.
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1989 (1) TMI 163
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... ... ..... . We have minutely considered the respective submissions of the parties. No doubt, the land has been treated as non- agricultural in the assessments under the WT Act for the asst. yrs. 1965-66, 1966-67 and 1967-68, but all that cannot be taken as final. The observations of Hon ble Delhi High Court and Gujarathi High Court in DLF United Ltd, and Lila Vati Thakore Lal Patel do not appear to concur with the narrow view taken by Madhya Pradesh High Court in CIT vs. Laxmi Development Co. We prefer to follow the judgment ofDelhiand Gujarat High Court, referred to above. The evidence on record shows that it was agricultural land in the year 1962, when purchased and it was agricultural land in 1966, when acquired. It is no body s case that it was ever sought to be converted into any other use. In this view of the matter itis held that the land in question is agricultural land and capital gain arising out of its transfer is not exigible to tax. 12. In the result the appeal is allowed.
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1989 (1) TMI 162
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... ... ..... been held to be entitled to weighted deduction under s. 35B in the case of M/s. R.D. Ramnath and Co., for the asst. yrs. 1977-78 to 1979-80 and in the case of Ram Nath Exports Pvt., Ltd, for the asst. yrs. 1977-78 to 1979-80. Copies of these orders have been placed in the placed in the paper book on Pages 30 to 38 and 39 to 46. Respectfully following these orders, we allow the claim of the assessee in respect of foreign delegation expenses also. 17. Regarding weighted deduction on rent of Export Division, we would like to add that we have already considered 50 per cent of the expenses of the Export division for weighted deduction as reasonable. In that background, we are of the opinion that 50 per cent of the rent of the export division will also be entitled to weighted deduction. Consequently, the weighted deduction withdrawn by the CIT(A) on such expenses at Rs. 6,881 cannot be sustained. His order to this extent is reversed. 18. In the result, the appeal is partly allowed.
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1989 (1) TMI 161
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... ... ..... ver, on record to show that the ITO had made deliberated application of his mind to these aspects of assessment, the Commissioner had jurisdictional facts to assume lawful jurisdiction to make the impugned order. We uphold his order as having learn made after assumption of lawful jurisdiction on the basis of jurisdictional facts. We also find that the Commissioner did not direct the ITO to charge interest under above sections. He merely directed the ITO to verify about the liveability of the interest and charge the same as per law. If interest is not leviable as per law the ITO will not be able to do so. The assessee is at liberty to project any legal or factual situation before the ITO including amendment in relevant law. Hence with the directions of the learned Commissioner the assessee cannot find any fault, as these are reasonable and fair directions issued in accordance with law. We, therefore, confirm the order of the Commissioner and dismiss the appeal of the assessee.
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1989 (1) TMI 160
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... ... ..... able to tax from purchase and sale of gold or silver. It is also clear that the assessee was found in possession of the bullion. The assessee s explanation has not been accepted by the ITO. The assessee was found to be in possession of the bullion on23rd Jan., 1976. Therefore, in accordance with the provisions of s. 69A, the value of the bullion may be deemed to be the income of the assessee for the financial year 1975-76. This is a clear provision of law and, therefore, notwithstanding that the assessee was following calendar year for the regular business carried on the value of the bullion was taxable on the basis of the provisions of s. 69A in the assessment year following the financial year in which the assessee was found to be the owner of this bullion. That date being23rd Jan., 1976the amount should have been, if otherwise, taxable, on merits assessed in the asst. yr. 1976-77. It is wrongly included in the asst. yr. 1977-78. It is deleted. Appeal on this ground allowed.
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1989 (1) TMI 159
Assessment Proceedings, Assessment Year, Central Excise, Financial Year, Original Assessment, Reassessment Proceedings
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1989 (1) TMI 158
Assessment Proceedings, Assessment Year, Orders Prejudicial To Interests ... ... ... ... ..... ever, on record to show that the ITO had made deliberated application of his mind to these aspects of assessment, the Commissioner had jurisdictional facts to assume lawful jurisdiction to make the impugned order. We uphold his order as having been make after assumption of lawful jurisdiction on the basis of jurisdictional facts. We also find that the Commissioner did not direct the ITO to charge interest under the above sections. He merely directed the ITO to verify about the leviability of the interest and charge the same as per law. If interest is not leviable as per law the ITO will not be able to do so. The assessee is at liberty to project any legal or factual situation before the ITO including amendment in relevant law. Hence with the directions of the ld. Commissioner the assessee cannot find any fault, as these are reasonable and fair directions issued in accordance with law. We, therefore, confirm the order of the Commissioner and dismiss the appeal of the assessee.
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1989 (1) TMI 157
Allowable Expenditure, Assessment Year, Closely Held Company, Payment To Relative ... ... ... ... ..... ommission agent, assuming, there was such agreement and payment, does not bind the ITO to hold that the payment was made exclusively and wholly for the purpose of the assessee s business. Although, there might be such an agreement in existence and the payment might have been made, it is still open to the ITO to consider the relevant facts and determine for himself, whether the commission paid has been paid and is deductible in computing the total income of the assessee. This is clear from the judgment of the Hon ble Supreme Court in the case of Lachminarayan Madan Lal. 21. Thus, we see that not only on the facts of the case there is no evidence in support of the claim that commission was paid for the services rendered by M/s. Niki Tasha (India) Pvt. Ltd., but the manner and method, in which the ITO proceeded to disallow the claim is also justified in the absence of any evidence. The appeal of the assessee has, therefore, to be dismissed. It is dismissed. 22. Appeal dismissed.
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1989 (1) TMI 156
Accounting Year, Assessment Year, Cash Basis, Cash System, Investment Company, Mercantile System, Tax Deducted At Source
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