Court : Chennai
Decided on : Dec-05-1949
Reported in : AIR1951Mad506; 18ITR586(Mad); (1950)2MLJ353
..... of himself and his two minor sons, chocka-lingam and meyyappan. daring the assessment year 1940-41, the assessee applied under section 25-a, income-tax act, for an order recording a partition which had taken place among the members of the family. the family was assessed till that date as an undivided ..... not the owner of the properties in their entirety. the question therefore is whether the partition so made satisfies the requirements of section 25-a, income-tax act. the question formulated by the appellate tri-bunal really covers more than one contention raised on behalf of the assessee, and the appel-lates ..... whether in the circumstances of the case the finding of the appellate tribunal that there has been no partition within the meaning of section 25-a, income-tax act is right?'this comprises and compresses the following four questions : (1) whether by the deed of partition dated 5-4-1940, a partition has ..... division may only be possible in the boons.'in a later case of the bombay high court, it was held that for purposes of the income-tax act, a joint family in spite of a severance of status, continues to exist as a unit or entity till all the properties belonging to the ..... entries would be enough.31. as a result of the foregoing discussion, i arrived at the following conclusions: section 25a, income-tax act, provides the machinery for computing and assessing the income of a joint hindu family which existed during the year of account but has ceased to exist during or prior to the .....Tag this Judgment!
Court : Chennai
Decided on : Dec-08-1949
Reported in : AIR1951Mad361; 18ITR423(Mad)
..... such year or accounting period and the expenditure laid out to earn such profits according to the ordinary principles of commercial accounting and subject to the specific provisions of the income-tax act. a trader may prefer to carry his profits forward or put them to reserve rather than consume or divert them. but they are nonetheless profits of the year or accounting ..... united provinces. the existence of tbe factory and a branch at calcutta certainly constitute a business connection. the case was decided under section 83 (1), income-tax act, 1918, where also the same expression occurs. in commissioner of income-tax burma v. messrs steel brothers and co. ltd., 3 rang. 614, a company incorporated in england and therefore non-resident in british india carried on ..... to the asseesee company directly or indirectly through or from a business connection or property in british india and are liable to tax under section 42 (1), income-tax act. the privy council decision in bank of chettinad ltd. v. commissioner of income-tax, madras , was a case where the entire system of banks in and outside british india were controlled by the same people and ..... . the following questions wera referred to us by the appellate tribunal under section 66(1), income-tax act :'1. whether in the ciroumatances of this case, it is correct to hold that profits were received in british india within the meaning of section 4 (1) (a) of the act on the ground that some sale proceeds of goodi were received in british india.2 .....Tag this Judgment!
Court : Chennai
Decided on : Dec-14-1949
Reported in : AIR1951Mad439; 18ITR849(Mad); (1950)2MLJ777
..... (all) . this decision, however, is not a direct authority on the interpretation of sections 4 (1) (c) and 4-a (c) (b), income-tax act, though the principle enunciated by the bombay high court is general and might be extended to the interpretation of these provisions as well.35. though the matter is ..... in cases decided before the decision of the privy council in chunilal mehta's case . english decisions given on the language of the english income-tax act levying a charge on profits and gains accruing or arising from the exercise of a trade, were accepted as govering the interpretation of the ..... judge was expanding the expressions 'accruing' or 'arising'. later, in the course of the judgment, it was pointed out that under the indian income-tax act profits did not necessarily arise at the place where the business was carried on or control exercised and the test of changeability was not the ..... assessee in calcutta. the appellate assistant commissioner held that the company was a resident' within the meaning of section 4-a (c) (b), income-tax act, as more than 60 per cent. of its profits arose in british india. the appellate tribunal accepting the above facts came to a different conclusion ..... arisen in britishindia and therefore the company was a resident in british india during the accountingperiod within the meaning of section 4-a (c)(b),income-tax act.3. the appellate tribunal differed from this conclusion. the tribunal held that profits from the sales in british india did not arise or accrue .....Tag this Judgment!
Court : Chennai
Decided on : Nov-18-1949
Reported in : AIR1951Mad551; 18ITR333(Mad)
..... further held that the right to receive payment in respect of the contracts arose in british india; and that for these reasons the respondent company could be assessed under the income-tax act, as resident in british india. the tribunal differed from these conclusions. the contract according to them was concluded at the place where the acceptance note was signed by the company ..... been found and is accepted before us in the course of the arguments, is not within british india but is in cochin state, though the income-tax act has been applied to the railway line.4. the income-tax officer and the appellate assistant commissioner were of opinion that the company is resident in british india as the profits of the business accrued and had ..... in cochin and doing business there, it was resident in british india in the year of account within the meaning of section 4a (c), income-tax act as its income arising in british india in that year exceeded its income arising outside. therefore its entire profits and gains whether accruing or arising in british india or outside in the yearof account would be taxable under ..... was outside british india. the appeal was, therefore, allowed by the appellate tribunal and the reference was made by them tothis court on the application of the commissioner of income-tax.5. the liability to pay income-tax under the income-tax act arises by reason of the receipt of income, profits and gains, from whatever source derived, in british india in the year of account or the .....Tag this Judgment!
Court : Chennai
Decided on : Nov-16-1949
Reported in : AIR1950Mad454; 18ITR150(Mad)
..... themselves as fair and equitable to layman unhampered by the specific directions contained in section 10. this argument seems to me to run counter to the whole scheme of the income-tax act. section 2 (4) which defines 'business' does not confine it to business carried on in british india. section 4 which is the charging section expressly and definitely subjects to indian ..... ,388. the assessee claimed unsuccessfully that this amount should be deducted either under section 10 (2) (ii) or under section 10 (a) (xii) which now corresponds to (xv) of the income-tax act.3. before us the first contention urged on behalf of the assessee by mr. bhashyam, the learned advocate, is that in respect of foreign profits the assessee should not be ..... . 453 being overdrawings of an employee against his salary should be treated as an irrecoverable loan of the applicants' money-lending business within the meaning of section 10 (2) (xi), income tax act, when that amount was not realisable after the death of such employee ?(b) whether the sum of rs. 84,388 paid by the applicants to the ceylon government as interest ..... default of paying estate duty is allowable as a deduction either under section 10 (2) (iii) or 10 (2) (xii), income-tax act ?' (note:-- section 10 (2) (xii) in the question has now been enacted as 10 (2) (xv) by section 3. income tax amendment act, 1946) the sum of rs. 453 referred to in the first question represents an amount of overdrawings by one of .....Tag this Judgment!
Court : Chennai
Decided on : Nov-17-1949
Reported in : AIR1950Mad626; 18ITR85(Mad)
..... with the trade and, therefore, falls outside the range of those items which can properly be brought into a profit and loss account of the business. 10. though section 10, income-tax act, allows interest paid on borrowed capital as a deduction in computing the profits of a trade or business, it does not allow a deduction in respect of the capital itself ..... been considered, both in england and here, to be the profits computed by ordinary methods of commercial trading or accountancy, subject, of course, to the specific directions contained in the income-tax act. the expenses incurred for the trade or business must be set against the receipts in order to arrive at the taxable profits and any payment, disbursement or expenditure may be ..... the claim of the assessee could be sustained and the learned advocate for the assessee has relied on these two grounds here. he also relied upon section 10(2)(xv), income-tax act, as justifying the deduction of the two sums now in question. 5. so far as the last contention is concerned, it cannot be said that there has been in this ..... of the tribunal is erroneous in law. the tribunal does not say whether the deduction was allowed as a bad debt whose deduction is authorised by section 10(2)(xi), income-tax act, or whether it was allowed as a business loss which had to be set off against the receipts in arriving at the true measure of the profits and gains of .....Tag this Judgment!
Court : Chennai
Decided on : Nov-18-1949
Reported in : AIR1950Mad704; 18ITR163(Mad)
..... against the profits of the year of account. but their claim was disallowed by the revenue authorities on the ground that the case did not fall within section 24 (2). income-tax act. in other words it was held that the speculations in forward contracts and grain futures constituted a separate and independent business and did not form part of the business of ..... .' the case raised the question whether the shipping business and underwriting business carried on by a company constituted one trade or two separate trades within the meaning of the english income-tax act, 1918. in the earlier part of the judgment the learned judge gave an indication as to the meaning of 'interdependence' and 'interlacing' the expressions used by him in the ..... fundamental question that arises for decision is therefore whether the two lines of business carried on by the assessees constitute the same business within the meaning of section 24 (2), income-tax act, or distinct businesses. under clause (2) :'where any assessee sustains a loss of profits or gains in any yean being a previous year, not earlier, than the previous year ..... was carried forward into the accounts, and the assessees claimed a right to act off this loss against the profits they earned daring the period, under section 24 (2), income-tax act, daring this assessment year, however, the assessees did not enter into any contracts for future deliveries. the income-tax officer disallowed the claim to set off on the ground that the satta business .....Tag this Judgment!
Court : Chennai
Decided on : Dec-09-1949
Reported in : AIR1950Mad781; 18ITR320(Mad)
..... , the firm of talipatigala estate could be held to be controlled and managed in british india and is therefore resident and ordinarily resident in british india under section 4a,indian income-tax act? (2) whether the proceedings under section 34 could be initiated against a firm which was not assessed previously when one of the partners of the firm had been individually assessed ..... work, the collection of the rubber juice and the processing of the raw product into a commodity which in fit for sale in the market. under section 4-a(b), income-tax act, a firm is resident in british india unless the control and management of its affairs is situated wholly without british india. it is true that the residence of the individual ..... mad. 75 : a. i. r. 1920 mad. 344 cited by the learned advocate for the assessee dealt with the question of the basis of taxation under the income-tax act, 1918 and held that under the act, as it then stood, the profits of a foreign money lending business of a nattukottai chetty banker residing in british india accrued or arose outside british india ..... permissible in view of the terms of section 34, income-tax act. a firm or partnership is different from the members composing it for income-tax purposes and is recognised as a separate assessable unit under section 3, income-tax act, though according to the partnership act a partnership firm is not a single legal person, still for purposes of income-tax the firm is regarded as having a separate status .....Tag this Judgment!
Court : Chennai
Decided on : Nov-15-1949
Reported in : AIR1950Mad808; 18ITR181(Mad)
..... to which he stoutly objects or to pay a visit to his relations on occasions, thereby drags the joint hindu family into the wide net of section 4-a (b), income-tax act.17. section 4 a (b) by the use of the expression 'situated' with reference to 'the control and management' contemplates a place or locality where the control and management is ..... , madras bench:'whether on the facts and circumstances of this case the finding of the bench that the appellant is at resident within the meaning of section 4-a (b), income-tax act is tenable in law?' the assessee is a hindu undivided family whose manager is rajah kandimalla venkatarama narasimha rao bahadur, the zamindar of aswaraopet. he is a permanent resident of ..... that the undivided family is resident in british india. this position was contested by the assessee before the income-tax authorities and the appellate tribunal, but he was unsuccessful in his contention.2. the present section 4 a, income-tax act was inserted by section 5, income-tax amendment act, 1939 and clause (b) of that section, which is the relevant section for the purpose of this case ..... an affair of the family such as a business or other dealings or transactions relating to the family.8. the income-tax officer in the present case did not pay sufficient attention to the language of section 4-a (b) of the act. he held that the evidence adduced in the case, namely, that the karta was visiting british india off and on .....Tag this Judgment!
Court : Chennai
Decided on : Nov-09-1949
Reported in : AIR1950Mad715; 18ITR310(Mad)
..... agree with my learned brother. the question whether a visit is a casual or an occasional visit within the meaning of section 4-a (a) (iii), income-tax act depends not on mere presence in british india but on the quality of the presence in relation to the objects and intentions of the person sought to be ..... satyanarayana rao, j.1. the appellate tribunal referred to us the following question under section 66 (l), income-tax act:'whether in the circumstances of the case the applicant can be held to be a 'resident' in british india in the 'previous year' under section ..... the further contention raised on behalf of the assesses that the judgment of the appellate tribunal was influenced by the conclusion which was reached by the income-tax authorities in the prior year of assessment and this evidence was referred to for the first time in the order of the appellate tribunal and that ..... the controversy relates to the second requirement namely whether his visit to british india in 1942 was occasional or casual? the appellate tribunal as well as the income-tax officer and the appellate assistant commissioner have found that in the circumstances of the case the visit was not an occasional or a casual one and that, ..... tuticorin and later at authoor in a rented house. he subsequently re-turned to ceylon after the fear was removed. it is also found by the income-tax officer that in this year of accounting remittances to the tune of rs. 56,800/- were received from ceylon and that the amount was sent to .....Tag this Judgment!