Court : Chennai
Decided on : Mar-15-1960
Reported in : AIR1961Mad14; 40ITR282(Mad); (1961)1MLJ48
..... ramachandra iyer, j. 1. the following questions have been referred under section 66(1) of the indian income-tax act: '1. whether the sum of rs. 12,447 is assessable to income-tax? 2. if so, whether it has been rightly assessed inthe assessment year 1951-52?'the assessee owns a bakery and a ..... rule as to the reopening of closed accounts and the limits thereof was considered by this court in mudalai nadar and co. v. commr. of income-tax and excess profits tax, : air1957mad130 where an attempt to extend it to cases other than trade debts and those analogous to it was discountenanced. in that case, excise ..... finlay j. also held that the accounts of the earlier years could be reopened, if necessary, and the amount credited. as pointed out in simon's income-tax, 2nd vol., 2nd edn. in article 180, the decision should be taken as one rendered in the special circumstances of the case. in our opinion, ..... 20 per centwas allowed as final settlement of the firm's claimagainst the govt. in submitting the accounts uptothe end of january 1918, to the income-tax authorities the company showed in the books the full costof the work done, but included on the credit sideonly the original scale of commission plus ten ..... , and received a payment of rs. 12,447 during the year of account, corresponding to the year of assessment 1951-52. in the assessment of the income-tax for that year, namely, 1951-52, the officer included the sum of rs. 12,447. the assessee contested the inclusion on two grounds, (1) .....Tag this Judgment!
Court : Chennai
Decided on : Feb-16-1960
Reported in : AIR1961Mad21; 39ITR660(Mad); (1961)1MLJ107
..... his gambling activities. that obviously is not enough to hold that gambling is his profession or even vocation, as these expressions have to be understood in the context of the income-tax act. after all, even a person who bets on horses for his pleasure or prestige also hopes to win his bet. neither such hope nor the actual realisation of that hope ..... we have extracted above was certainly not elaborate. the tribunal should certainly have been aware of the difference between the several heads of income listed in section 6 of the income-tax act. these heads are mutually exclusive. the department treated the income as falling under the head "business" of which the tribunal was conscious. that was set out in paragraph 2 of its judgment ..... it could only be brought under the residuary head in section 6 of the income-tax act, income from other sources.24. the next question is, whether that income of the assessee was exempt from taxation, and whether it satisfied the requirements of section 4(3)(vii) of the income-tax act, which runs:"any income, profits, or gains falling within the following classes shall not be included in ..... rate we would have respectfully declined to accept it as authority for deciding what constitutes income under the scheme underlying the indian income-tax act.12. the next question we have to consider is, under which of the heads enumerated in section 6 of the income-tax act the receipt of that income fell.13. we have no hesitation in holding that there was no material on .....Tag this Judgment!
Court : Chennai
Decided on : Feb-09-1960
Reported in : AIR1961Mad72
..... run 'profits means profits from a business,' without any further reference to the mode of computation of those profits in schedule i, that is read with section 10 of the income-tax act, as we have already pointed out, both the definition of profits in section 2(16) and the definition of business in section 2(3) and rule 1 of schedule i ..... pointed out that the definition of business in section 2(3) of the business profits tax act differs from that in the income-tax act and the excess profits tax act. the restrictive factor we have referred to, that only profits chargeable under section 10 of the income-tax act are assessable as profits under the business profits tax act and is not one of the requirements of liability to excess profits ..... adventure in the nature of trade, commerce or manufacture or any profession or vocation, the profits of which are chargeable according to the provisions of section 10 of the indian income-tax act, 1922:provided that where the functions of a company or of a society, incorporated by or under any enactment consist wholly, or mainly in the holding of investments or other ..... be held that what has been covered by sections 8, 9 and 10 at least in parts of the income-tax act, comes within the purview of the act (excess profits tax act).'that principle cannot apply to an assessment under the provisions of the business profits tax act, because, as we have already pointed out, section 2(3) definitely restricts the assessment of profits to profits from .....Tag this Judgment!
Court : Chennai
Decided on : Mar-08-1960
Reported in : AIR1961Mad79; 40ITR118(Mad); (1960)2MLJ282
..... circumstances of the case the sum of rs. 63,259, received by the assessee from the government is income and can be brought to tax under any of the provisions of the indian income-tax act.' the assessee is a private limited company, which commenced business at madras in 1941, in the purchase and ..... business for a period. not being income from business the receipt should he held to fall under section 6(v); income from other sources. the receipt, being of a casual, non-recurring nature, would be exempted from tax under section 4(3) clause (vii) of the indian income-tax act. 21. we, therefore, answer ..... and to that extent, his capital asset should be deemed to have been sterilised. in glenboig union fireclay co. ltd. v. commissioner of income-tax, (1922) 12 tax cas 427, the assessee company, who were manufacturers of fireclay goods, had a leasehold right over certain fireclay fields. a railway line ran ..... other property, for example, a business. the rent received by the assessee from the government in respect of the property was assessed by the income-tax officer, and that is no longer in dispute. the compensation would, therefore, represent only the loss occasioned to the assessee by reason of ..... contested on behalf of the assessee on the ground that it represented only a capital receipt; the contention was, however, overruled both by the income-tax officer and on appeal by the assistant appellate commissioner. on further appeal to the tribunal, it was held that the requisition of the property .....Tag this Judgment!
Court : Chennai
Decided on : Jul-19-1960
Reported in : AIR1961Mad146; 40ITR469(Mad); (1961)1MLJ93
..... where a subject of legislaion is not enumerated it must belong to parliament is embodied in article 248.therefore, even if the impugned sections of the income-tax act are held to impose a tax not on the income, but on a loan and thus outside the ambit of entry 82 in list i of schedule vii to the constitution, the legislative authority therefor could ..... of the assessment should be left to be agitated in the appeal.7. sections 2(6a)(e) and 12(1b) were introduced by way of amendment in the indian income-tax act, by the finance act of 1955, and they came into operation from 1st april 1955. the former section brought into the definition of the term 'dividend' three types of payments made by ..... the one share held by him in favour of his fourth son. there is no dispute that the company is a 'controlled company' coming within section 23-a of the income-tax act, and that, during the relevant period, the petitioner was a shareholder therein.4. the company earned considerable profits; a sum of rs. 25,000 out of the undistributed profits was ..... . i. no. 7-i/55-56 dated 28-2-1957, and to quash the order of the additional income-tax officer, special circle, madras, assessing the petitioner to tax under section 34 of the indian income-tax act.2. the petitioner, an assessee, was assessed to an income of rs. 3362 for the year 1955-56 (the corresponding year of account being 13-4-1954 to 12 .....Tag this Judgment!
Court : Chennai
Decided on : Jan-06-1960
Reported in : AIR1960Mad366; 38ITR664(Mad); (1960)IIMLJ96
..... 57 and 1957-58, the petitioner voluntarily submitted returns. it may be that she was entitled to do so under s. 26(2) of the indian income-tax act. but the fact is that the return was filed by her, not as representing the estate of the deceased, but in her own right, claiming as ..... suit. the real question that had to be decided was whether those certified copies were admissible in evidence.while holding that s. 54 of the indian income-tax act did not bar the reception of the evidence, the learned judges also held that the widow of the deceased assessee was entitled to obtain the certified ..... return were public documents which could be proved by the production of certified copies, and that s. 54 of the indian income-tax act did not make the issue of a certified copy of income-tax return to an assessee illegal.it was also held that the assessee was not bound to treat the documents as confidential. ..... or the assessment orders thereon.(17) a writ of mandamus will, therefore, be issued to the third additional income-tax officer, salem, directing him to conform to the provisions of s. 54 of the indian income-tax act, and not to grant copies of the returns filed by the late g. v. rangaswami naidu and of ..... -heirs, it is well settled that one is not the agent of the other. sec. 24-b of the indian income-tax act makes a legal representative of a deceased person liable to the tax assessed as payable by the deceased, the liability being however limited to the extent of the estate left by the deceased .....Tag this Judgment!
Court : Chennai
Decided on : Aug-30-1960
Reported in : AIR1962Mad26; 41ITR297(Mad)
..... to a transfer of assets to three minor children aforesaid so as to attract the provisions of sec. 16(3)(a)(iv) of the income-tax act ? (3) if the answer to the first question is in the negative, the income-tax officer having rejected the claim of partition under s. 25a and the assessee not having independently appealed, against such decision, whether the assessee ..... thereafter. neither transaction, neither the pooling nor the subsequent partition, consitutued a transfer of assets, direct or indirect, within the mischief of sec. 16(3)(a)(iv) of the income-tax act.(26) the result is that after 19-12-1952, the income from the properties allotted to the minor children including the daughter belonged only to them, and it was not the ..... element of transfer, within the meaning of sec. 16(3)(a)(iv). the learned counsel referred to the observations of manohar lall, j, in indra singh v. commissioner of income-tax : 11itr16(patna) :'the property of an individual cannot become the property of a joint hindu family be mere expression of intention unless the property is transferred to the joint ..... certainly cannot constitute an unequivocal declaration of the admitted individual investing his self-acquired properties with the character of joint family property referred to in subramania iyer v. commissioner of income-tax, madras, : 28itr352(mad) (11) the conclusions of the tribunal recorded in paragraph 3 of its judgment ran :'we hold that the agency business of the assessee belonged only .....Tag this Judgment!
Court : Chennai
Decided on : Sep-15-1960
Reported in : AIR1961Mad485
..... rs. 19,538, the whole of which he claimed as a deduction under section 10(2)(xv) of the income-tax act, in computing 1m assessable income in the assessment year 1934-55. the income-tax officer disallowed the claim in its entirety.he held that the expenditure was of a capitil nature, incurred by the ..... scientific way.8. daring the arguments before us we were referred to passages in paragraphs 1277 and 1278 at pages 438 following in gunn's commonwealth income-tax law and practice, 4th edition. this reports of the cases on which those passages were based are not available, and that handicaps us. the ..... the expenditure to maintain his efficiency in his profession. as in the australian case noted in paragraph 1278, at page 440, in gunn's commonwealth income-tax law and practice, fourth edn., it would he much less correct to say that the assussee gained an enduring benefit by his study tour abroad ..... nothing new can be added- the case-law was reviewed at length by the supreme court in assam bengal cement co. ltd v. commissioner of income-tax, wast bengal, ).5. it should be taken as well-settled that the question what is the inference to be drawn from the facts established in ..... of the assessee while abroad. the assistant commissioner allowed a deduction of rs. 9769.the department appealed to the triburai. the tribunal agreed with the income-tax officer that the expenditure of rs. 9769 was of a capital nature, but did not disturb the finding of the assistant commissioner, that that half .....Tag this Judgment!
Court : Chennai
Decided on : Mar-16-1960
Reported in : AIR1961Mad69; 40ITR170(Mad); (1960)2MLJ259
..... assessment or re-assessment could be done and completed without any notice to the shareholder. that is wholly opposed to the scheme of the income-tax act. at any rate, it is wholly opposed to the scheme of the income-tax act, as explained in the decisions of this court and other courts. we have no hesitation in rejecting the contention, that the department had right ..... -sundaram mills (private) ltd., a company which admittedly fell within the scope of section 23-a of the indian income-tax act.2. for the assessment year 1950-51, the previous accounting year for which ended on 1-4-1950, the assessee was assessed to tax, and that assessment was completed on 31-5-1953. subsequently, on 31-3-1957, an order was passed ..... expiry of that period, and further since the service of a valid notice is a condition precedent to the assumption of jurisdiction under section 34 of the act, we have to hold that the income-tax officer had no jurisdiction to reopen the assessment or to re-assess the assessee, even though there was a valid order under section 23-a of the ..... were taken to reopen the assessment of the assessee for the assessment year 1950-51. a notice was issued by the income-tax officer under section 34(1)(b) of the act, and it was served on the assessee on 14-9-1957.3. the assessee applied under article 226 of the constitution for the issue of a writ of prohibition, to .....Tag this Judgment!
Court : Chennai
Decided on : Feb-09-1960
Reported in : AIR1960Mad517
..... agreement with it.'it is against this background we have to answer the question referred to this court under s. 66(1) of the income-tax act:'whether on the facts and in the circumstances of the case is the payment of rs. 5260 in question during the year of account an ..... from the company to the assessee. the assessee wrote off the unrecovered balance as a bad debt, and that claim was allowed by the income-tax department in assessing the assessee from its profits in its money-lending business. one of the films so taken over was a tamil picture 'mohini ..... the assistant commissioner in paragraph 5 of his order.(3) the principal ground on which the income-tax officer rejected the assessee's claim was that the payment in question was compensation for a wrongful act. elaborate arguments were addressed to us by the learned counsel for the assessee that the payment ..... and the observations at p. 215 (of itr): (at p. 97 of air), in income-tax appellate tribunal bombay v. chhaganmal mangilal , an contended that in such cases, where there had been no determination that a wrongful act had been committed by this assessee, no question could arise of viewing the expenditure as the ..... expenditure as an allowable item of deduction in the assessment of its income in the assessment year 1946-47.(2) the income-tax officer negatived the claim mainly on the ground:'however, the amount paid was towards compensation for a wrongful act, viz., infringement of copyright and cannot therefore be an admissible deduction .....Tag this Judgment!