Court : Chennai
Decided on : Aug-01-1956
Reported in : AIR1957Mad74; 30ITR565(Mad)
..... rajagopala ayyangar, j.1. these are petitions under section 66(2) of the income-tax act invoking our jurisdiction to direct the appellate tribunal to state a case and refer a question of law to this court for its decision. ..... assessee was examined before the officer on 26-11-1945 and he conceded that the return originally submitted was wrong and consented to certain additions to his income. the income-tax officer took action under section 28(1)(c) and issued notice under section 28(3) and when the assessee defaulted to appear in response thereto ..... sending his explanation, or being present in person while showing cause. where the assessee sends his explanation by post the income-tax officer may or may not apply his mind to that explanation and impose the penalty none the less; it the officer does so, he clearly of ..... heard.' so far we are in agreement. the judgment continued:'a person may show cause in writing without being present out it is obligatory on the income-tax officer to hear him or give him an opportunity of being heard, it should also be noticed that the assessee has been given the option of either ..... imposed on him penalties for concealing the particulars of his income or deliberately furnishing inaccurate particulars of the same within section 28(1)(c) of the act.3. the imposition .....Tag this Judgment!
Court : Chennai
Decided on : Feb-27-1956
Reported in : AIR1957Mad130
..... the assessee after the necessary scrutiny. when the assesses appealed to the tribunal, it confirmed the assessment.5. the question referred to this court under section 66(1) of the income-tax act was:'whether the sum of rs. 36094 being the re-fund of indian excise duty oh betel nuts importedfrom travancore state, was assessable as profits of the accounting period for ..... expended; that the original price for the goods having been reduced by agreement, the price actually paid and not the original price was the amount of the deduction allowable for income-tax purposes; and that the account to 30-6-1921 should be opened up and the deduction should be brought into conformity with the amount actually paid.'that contention was negatived ..... income-tax and excess profits tax.'6. it was not disputed that the excise dutythe assessee had paid in the year of account tothe government of india wasreflected in the pricesthe assessee charged his customers ..... .1. for the assessment year 1946-47, the period from 16-8-1944 to 16-8-1945 was the accounting year or the assessee for, income-tax and was also the chargeable accounting period for excess profits tax.the assesses firm traded in arecanut with its head office at virudhunagar witnin the taxable territories. the assessee obtained imports of arecanut from the travaacore .....Tag this Judgment!
Court : Chennai
Decided on : Sep-26-1956
Reported in : AIR1957Mad453
..... assets acquired before the previous year the actual cost to the assessee less all depreciation actually allowed to him under the act, or any act, repealed thereby, or under executive orders issued when the indian income-tax act, 1886 (ii of 1886) was in force.'if this definition of 'written down value' were read into the ..... the sum of rs. 81,863 which was the profit realised by the sale of these assets was not liable to tax as capital gain under section 12-b of the income-tax act. the contention of the assessee however was that this profit which was undoubtedly a capital gain was exempted from charge on ..... rajagopala ayyangar, j.1.the questions referred to this court under section 66 (1) of the indian income-tax act are:1. whether the modification of the assessment of capital gain from rs. 61,140 to rs. 81,863 by the appellate ..... the construction urged by learned counsel for the department.as admittedly no adjustment has been madeunder section 10 (2) (vii) in the assessee's assessmentto income-tax, the assessee is not entitled to havethis adjustment made in the computation of hiscapital gain under section 12-b. the decision of thetribunal was therefore correct ..... will or transfer on irrevocable trust shall not for the purposes of this section, be treated as sale, exchange or transfer of the capital assets;'the income-tax officer overruled this contention of the assessee but he drew a distinction between the difference between the written-down value of these assets and their original .....Tag this Judgment!
Court : Chennai
Decided on : Apr-24-1956
Reported in : AIR1957Mad133
..... ."7. the legislature in india took steps later than the parliament in england to meet this kind of possible evasion of tax liability. section 23-a was included in the indian income tax act by the amending act xxi of 1630. as enacted in 1930, the relevant portions of clauses (1) and (2) of section 23-a ..... m. r. morarka.2. proceedings were taken against gannon dunkerley & co., hereinafter referred to as the "company" under section 23-a of the income-tax act. which resulted in an order dated 11-3-1955. on an apportionment of those undisbursed profits each of the petitioners was liable to treat as part of his ..... in 1939 has to be tested with reference to the entry 54 in list i of the 7th schedule to the government of india act, 1935.25. in amina umma v. income-tax officer, kozhikode, (d), the learned judges quoted with approval the well settled rule of construction that was explained by chagla c.j. ..... but in my opinion that does not mean that legislation as to income-tax can never be regarded as legislation as to a thing in british india within the meaning of section 65 of the government of india act.in my opinion, a tax on income accruing or arising or received in british india by a person ..... power to enact that provision had to be founded on entry 54 in list i of the 7th schedule of the government of india act, 1935, "taxes on income other than agricultural income." it should, however, be remembered that what the legislature did in 1939 was to amend an existing provision of law and not to .....Tag this Judgment!
Court : Chennai
Decided on : Sep-18-1956
Reported in : AIR1957Mad151; 30ITR687(Mad)
..... 23a for the assessment years 1955-56 and 1956-57 and in the sums determined by the income-tax officer ?"the assessee is a private limited company falling within section 23a of the indian income-tax act. the books of account of the company disclosed a loss of rs. 23,686 for the ..... up it however appears that the assessee sought permission to include in the annexures certain order and directions relating to the collections of arrears of income-tax. but this was repelled by the tribunal which observes as follows (paragraph 9 of the statement of the case) :"the assessees learned ..... company far from earning profits actually incurred losses.the income-tax officer, the appellate assistant commissioner and the income-tax appellate tribunal have concurred in holding that the assessee falls within the mischief of section 23a of the act. the result is that super-tax has been levied on rs. 22,742 and rs ..... answer to these notices that the company paid income-tax and sur-charge under the motor vehicles act, amounts to the extent of rs. 11,310 over and above that already allowed in arriving at the distributable income, that the company had paid penal tax of rs. 5,895 which should also be ..... calendar year 1954, the previous year relevant for the assessment year 1955-56. the department did not accept the book results and estimated the profits of the company under the proviso to section 13. such estimated income .....Tag this Judgment!
Court : Chennai
Decided on : Aug-13-1956
Reported in : AIR1957Mad250
..... undivided family, the death or resignation of a manager is on a par with the death of an individual assassee as to attract section 24-b of the act. the fact, that the income-tax act refused to regard a mere severance of status in a hindu undivided family as putting an end to a joint family, might not fit in exactly with the ..... his predecessor, or being the legal representative of the ex-manager.if the analogy of the civil procedure code has to be invoked, the case of the hindu undivided family under the income-tax act is more akin to a trust represented by the trustee for the time being. in this illustration, when a trustee who represents the trust which is a party to an ..... representative of the deceased manager under section 2(11) c. p. code. in our judgment these decisions are wholly irrelevant for considering the scope of section 24-b of the income-tax act. the civil procedure code does not treat a joint hindu family as a juristic unit capable of instituting or defending a suit. when a manager is a party to an action, he ..... to the inspecting assistant commissioner ..... to cancel the levy of penal interest under the powers vested in him under rule 20 of the indian income-tax act.'the truth of the claim of the petitioner, that ho had moved the income-tax officer in the first instance to cancel the levy of 'penal' interest, was not challenged by the respondent. the date, 10-4-1954 .....Tag this Judgment!
Court : Chennai
Decided on : Oct-09-1956
Reported in : AIR1957Mad259; 31ITR61(Mad)
..... counsel's fee rs. 250.13. case refd. no. 80 of 1953: the question referred to us for decision under section 66 (2) of the income-tax act is:'whether on the facts and circumstances of the case, the share of the assessee's loss out of the sum of rs. 43,969 cannot be ..... although a firm is an assessable entity under the indian income-tax act a firm is not a. legal entity. in the eye of the law a firm is a compendious expression used to indicate that several persons ..... by the assessee but is carried on by the assessee along with a partner or partners. mr. joshi says that a firm under ' the indian income-tax act is an assessable entity and therefore a distinction must be made between a business carried on by a firm and a business carried on by an individual ..... loss could not be determined. in the present case, the firms themselves being non-residents and not being in receipt of taxable income have not been assessed under the indian income-tax act; there was no question of assessing the firms.it was further suggested that the departmental authorities were not desirous of assessing the individual ..... describe its partners but it is also equally true that under that law there is no dissolution of the firm by the mere incoming or outgoing of partners ..... but under the income-tax act the position is somewhat different. a firm can be charged as a distinct assessable entity as distinct from its partners who can .....Tag this Judgment!
Court : Chennai
Decided on : Dec-20-1956
Reported in : AIR1957Mad347
..... the outgoing was incurred to conduce to that end."16. these principles, in "our opinion, could well be invoked in applying the provisions of section 10 (2) (xv) of the income-tax act.17.two other cases were referred to, though they did not themselves deal with payments of gratuities to a retiring servant.18. in b. w. noble ltd, v. mitchell, (1926 ..... sum of rs. 40,000 paid to mr. j. h. philips on his retirement from the service of the company was not an admissible deduction under section 10 (2) (xv), income-tax act, 1922?"2. the facts were never in dispute. the assessee which was a private limited company, was incorporated in 1928 to carry on business in the manufacture of leather. gordon ..... the past services of the employees in any business operations which were carried by the tax-payer".15. there is no analogous provision in the indian income-tax act. with reference to a claim under section 51 of the australian act, somewhat analogous to section 10 (2) (xv) of the indian act, the learned authors extracted a passage in an australian decision:"it has never been ..... are necessarily incurred in carrying on a business for the purpose of gaining or producing such income shall be allowable deductions except to the extext to which they are losses or outgoings of capital......."though not in pari materia with section 10 (2) (xv) of the income-tax act one of the tests imposed by section 51 is the expenditure should be necessarily incurred .....Tag this Judgment!
Court : Chennai
Decided on : Dec-18-1956
Reported in : AIR1957Mad376
..... that' there was no statutory provision enabling the revenue authorities to proceed against the property of persons who were not defaulters,4. section 46 (2) or the indian income-tax act, 1922, runs thus:'the income-tax officer may forward to the collector a certificate under his signature specifying the amount of arrears due from an assessee, and the collector, on receipt of such certificate ..... a suit to establish the tight claimed by either. but for the additional powers conferred on the collector by the above-mentioned proviso, we are of the opinion that the income-tax act does not provide for recovery of arrears due from the assessee from persons in possession of property which they do not admit to be the assessee's property for instance ..... mr. rama rao sahib, who appeared for the respondents, that in, exercise of the additional powers conferred on the collector under the proviso to section 48 (2) of the indian income-tax act, i.e., the powers of a civil court for the purpose of the recovery of an amount due under a decree, the collector may attach property ostensibly standing in the ..... a claim, eyen though the collector purported to proceed under the provisions of the revenue recovery act only, and cited in this connection hiraluxmi pandit v. income-tax officer : 27itr643(patna) . in that case, on a certificate sent by the income-tax officer under section 46 (2) of the income-tax act, the collector proceeded to put up for sale certain property as the property of the .....Tag this Judgment!
Court : Chennai
Decided on : Aug-30-1956
Reported in : AIR1957Mad418; 29ITR842(Mad)
..... as disclosed in the balance-sheet'. the latter figure might or might not have been arrived at on a basis identical with the method of computation prescribed by the indian income-tax act. but until the total profits and gains are thus ascertained -- and this can be ascertained only in the course of assessment proceedings against a company whose dividends are in question ..... the company' at the end of the proviso can only mean total profits and gains of the company, as computed under the indian income-tax act, for it is the ratio between this figure and the amount of income actually subjected to income-tax which determines the proportion of the dividend in regard to which an assessee is entitled to -- or bound to suffer -- grossing up ..... construction of section 16(2) an assessee is entitled to the grossing up and relief under section 18(5) in cases where the income of a company whose dividends are in question is not assessed to tax under the indian income-tax act. section 16(2) which we have set out consists of two paragraphs. if the matter rested wholly on the first paragraph without ..... amount having been remitted to british india in the same accounting year.4. the chettinad company was not assessed to income-tax in british india under the indian income-tax act; hut the assessee stated that the chettinad company had been in receipt of interest income on advances made by it to a resident company -- the south indian corporation (madras) ltd., registered under the indian companies .....Tag this Judgment!