Court : Chennai
Decided on : Jan-09-1967
Reported in : AIR1968Mad327; 67ITR735(Mad)
..... the accounting year ended february 1, 1955, he was assessed on a total income which included rs. 10253, as foreign income after deducting the statutory allowance under the third proviso to sec. 4(1) of the income-tax act 1922. the total foreign income consisted of rs. 2400 as salary and the balance, as working share of ..... the assessee's of profits. in the firm of v.t.v. dharmaperumal pillai, the income-tax officer noticed that a sum of rs. 15,000 had ..... was revised under sec. 35, is not clear. but we are of the view that so far as rs. 10253 that was brought to tax by the income-tax officer is concerned, there can be no doubt that the charge should in any case be sustained on the accrual basis. the controversy, therefore, ..... without actual cash being handled, may as much result in remittance as by the physical transfer of cash. this proposition is supported by authority. commissioner of income-tax v. subramaniam chettiar, ilr (1927) mad 765 = air 1927 mad 841, decided by a full bench of this court held that credit entries made on ..... be treated as payments though that interest was not actually paid in british india. this decision was approved by the supreme court in indermani jatia v. commissioner of income-tax, u. p. : 35itr298(sc) . in taking that view, the supreme court observed:'this decision ilr (1927) mad 765 = air 1927 mad 841 .....Tag this Judgment!
Court : Chennai
Decided on : Sep-27-1967
Reported in : AIR1969Mad69; 70ITR240(Mad)
..... (2)(xv). the supreme court in the second case pointed out'--'in determining whether an amount expended by the assessee is deductible under section 10(2)(xv) of the indian income-tax act, the nature of the expenditure or outgoing must be adjudged in the light of accepted commercial practice and trading principles- the expenditure must be incidental to the business and must ..... dividend income and interest in the relative previous year and paid wealth tax in a certain sum on his holding of stock. the sum paid as wealth ..... comprised of dividends and interest as an allowable expenditure under section 57(iii) of the income-tax act 1961, but unsuccessfully before the revenue.the tribunal relied on kumbakonam electric supply corporation ltd. v. commissioner of income-tax madras. : 50itr809(mad) and dismissed the aseessee's appeal in each case. that was of course a case under section 10(2)(xv) in which a ..... and in the circumstances, the claim for deduction of wealth tax paid by the assesses as an admissible expenditure is lawful. the revenue as well as the tribunal negatived the claim and the references have come before us under section 66 (1) of the income-tax act 1922 or under section 256(1) of the income-tax act 1961. each of the assessees as an individual received .....Tag this Judgment!
Court : Chennai
Decided on : Jan-18-1967
Reported in : AIR1968Mad231; 67ITR553(Mad)
..... received by the bank in the previous years ending 31-12-1955, 31-12-1956, 31-12-1957 and 31-12-1958, were chargeable to income-tax under section 8 of the income-tax act read with the notification issued under section 60 as amended in 1954? 2. whether, if the answer to the first question is in the affirmative and if ..... under section 10, on foot that no part of the overhead expenses and interest on borrowed capital is attributable to government securities under the explanation to section 8 of the income-tax act?'in the other reference, at the request of the assessee, the questions referred to us by the tribunal under the same provision, are--'1. whether the interest on mysore securities ..... references, the main question for consideration is as to the applicability, to the facts and circumstances, of the first proviso to s. 8 and the two explanations thereto in the income-tax act 1922. the assessee is a well known banking company with its registered office at madras. it holds securities issued by the then mysore durbar of the value of about 21 ..... ) deducted from such interest by way of commission by a banker realising such interest on behalf of the assessee. this new proviso was expanded by section 9 of the indian income-tax (amendment) act 1939, the effect of which was, so far as the present references go, that a similar benefit, as in the case of deduction of expenses, was given in respect .....Tag this Judgment!
Court : Chennai
Decided on : Apr-27-1967
Reported in : AIR1968Mad262; 67ITR584(Mad)
..... facts and circumstances of the case, the loss of rs. 1,93,750 was an allowable deduction under sec. 10 of the indian income-tax act'.under sec. 10(1) of the income-tax act, the tax shall be payable by an assessee under the head 'profits and gains of business, profession or vocation' in respect of the profits ..... this bombing in december 1941 fell within the accounting year. when the assessee claimed that these losses should be deducted under s. 10(2) of the income-tax act, the department held that the losses in question represented capital assets and, therefore, would not be an allowable deduction.when the assessee appealed to the tribunal ..... ramakrishnan, j.(1) the facts that led to this reference under sec. 66 of the indian income-tax act of 1922 are within a narrow compass, and they can be put down briefly.(2) the assessment year is 1942-43 and ..... cannot. for the test of loss being incidental to the business, the learned counsel relies on the decision in badridas daga v. commissioner of income-tax, : 34itr10(sc) as well as commissioner of income-tax, u. p. lucknow v. nainital bank ltd., : 55itr707(sc) . for understanding the scope of these two decisions, a brief ..... profitable to the assessee nor to the department'.the above said bombay decision followed an earlier judgment of the patna high court in motamal jethamal v. commissioner of income-tax b and o : 15itr155(patna) , where manohar lal j., applied the principles in (1929) 14 t.c. 364, for allowing an assessee .....Tag this Judgment!
Court : Chennai
Decided on : Jan-16-1967
Reported in : AIR1967Mad427; 65ITR348(Mad)
..... void on the view that it was not filed within the assessment year and that in view of the provisions of s. 22(2-a) of the income tax act 1922, which according to him applied to the case, the loss returned by the return of the petitioner would have to be ignored and not carried forward. ..... not accept the observation in udaya ltd. v. commr. of income tax, madras, : 36itr469(mad) (fb) justifies the view. it was held there that a return showing income below the taxable limit submitted voluntarily in answer to the general notice under s. 22(1) of the income tax act was a good return, which could not be treated as a ..... mere waste paper. this is such a case and the return was before the assessment was made and within four years of the assessment year. see commr. of income tax v. raman chettiar, : 55itr630(sc) . ..... s.10(2)(vi) will follow and not precede the set off permissible under s. 24(2). the view in 1966 1 itj 9 receives support from commr. of income tax calcutta v. jaipuria china clay mines, : 59itr555(sc) . the supreme court there observed-'but it is wrong to assume that s. 24(2) also ..... contrary is incorrect. if the matter were res integra, it would have been necessary for this court to deal with the point in greater detail, commr. of income tax, madras v. speed-a-away (p) ltd., 1966 1 itj 9 decided by a division bench of this court to which one of us was a party .....Tag this Judgment!
Court : Chennai
Decided on : Aug-09-1967
Reported in : 72ITR107(Mad)
..... made under that provision, such an order could not be regarded as an order of assessment made under sections 3 and 4 of the income-tax act. we are of opinion that, on principle, m. m. parikh, income-tax officer v. navanagar transport and industries limited, without doubt, covers the second question and we must, therefore, answer it, against the assessee. there will be no ..... ascertainable amount. ' 6. shah j. dissented, but the difference lay on a very narrow point. according to him, on the terms of section 3 of the income-tax act, 1922, there was only a liability to be taxed and that liability became effective not later than the year of account. the learned judge was of opinion that the liability did not give rise to ..... ltd., : 59itr569(sc) the supreme court held that the amounts covered by notices of demand under section 18a of the income-tax act in respect of advance tax were debts owed within the meaning of section 2(m) of the wealth-tax act on the valuation date. that was, of course, where a demand has been made and there was no step taken by the ..... for the revenue has conceded so much, and, quite rightly too. 10. the second question is related to provision for corporate additionalsuper-tax under section 23a of the income-tax act, 1922, and it is asfollows : ' whether the provision made for tax payable under section 23a where no order under section 23 a had been passed before the valuation date is an allowable deduction in .....Tag this Judgment!
Court : Chennai
Decided on : Jul-27-1967
Reported in : 24STC459(Mad)
..... assess the escaped turnover.11. but the learned counsel appearing for the respondent-assessing authority urges that whatever may be the view in regard to section 34(1) of the income-tax act, there cannot be any more doubt at the present moment, in regard to the interpretation of a provision like the one found in rule 5(7), in view of a ..... case an earlier assessment under the agricultural income-tax act had been made and confirmed. later on the same agricultural income-tax officer reinterpreted the terms of a lease deed relied upon on the earlier occasion and came to the conclusion that the rent under that lease ..... court. in maharajadhiraj sir kameshwar singh v. state of bihar : 37itr388(sc) the supreme court had to consider section 26 of the bihar agricultural income-tax act which contains a clause 'if for any reason any agricultural income...has escaped assessment for any financial year or' etc., etc., and is therefore in pari materia with the clause in rule 5(7). in that ..... of the expression 'turnover which has escaped' in rule 17(1).there is no real analogy between rule 17(1) of the madras general sales tax rules, 1939, and the provisions of section 34 of the indian income-tax act, 1922.6. relying upon these observations learned counsel contended that the turnover now assessed was before the assessing officer on the earlier occasion, that .....Tag this Judgment!
Court : Chennai
Decided on : Sep-29-1967
Reported in : 25STC160(Mad)
..... us.11. it has been strenuously urged that there is a vital difference in the assessment under the two acts and that while the total income is what is assessed as a whole under the income-tax act, the assessment to sales tax is severable because such a tax is imposed on receipts from individual sales or purchases of goods. in support of this contention our attention ..... lal shukla of cawnpore, in re : 10itr239(all) . in the first of these cases chagla, c.j., on behalf of the tax bench construed the scope of the power to enhance the assessment under section 31 of the income-tax act, 1922, and held :it is clear that the appellate assistant commissioner has been constituted a revising authority against the decisions of the ..... ) and 34(2)(a) and (b) is consistent with the view that the power of enhancing the assessment under section 31 extends to the entire range of assessment. though the income-tax act, 1922, adopts a different scheme, and decisionssthereunder may not always be apposite to the construction of other fise enactments like the madras general sales ..... enhancing the assessment is that, in exercise of that power, new sources of income cannot be gone into : prabhudas ramji v. commissioner of income-tax : 62itr621(guj) . when the state legislature uses in section 31 of the madras general sales tax act, 1959, a language identical with section 31 of the income-tax act, 1922, followed by a similar scheme of revision powers, we fail to see .....Tag this Judgment!
Court : Chennai
Decided on : Aug-01-1967
Reported in : AIR1968Mad269; 68ITR14(Mad)
..... which was done after making allowance from the original cost for the normal and extra depreciation admissible under the income-tax act, as well as the ordinary and extra shift allowance admissible for depreciation is provided in that act. he allowed rs. 6,66,931 in addition to rs. 79,194, already allowed by the wealth ..... was not correct. the tribunal also accepted the contention for the revenue that the allowance of rs. 4,70,220 being the income-tax liability of the assessee in the first of the two years was inadmissible. in doing so, it thought that it was fortified by authority. commissioner ..... depreciation for the period prior to 30-6-1954. we think the contention is well founded. what the wealth-tax officer is called upon to determine for purposes of the wealth tax act is the net wealth and the value of the assets has to be determined in the manner provided by section 7 ..... , for revenue, has conceded this in view of kesoram industries and cotton mills ltd. v. commissioner of wealth-tax, calcutta : 59itr767(sc) .(6) on the first question the relevant provisions of the wealth tax act, 1957, are these. section 3 is the charging section. it says that there shall be charged for every ..... tax act, 1957, of two questions; (a) whether, in computing the net wealth, the assessee is entitled to deduction of the sum of rs. 6,66,931, the arrears of depreciation in each of the two years; and (b) whether the assessee is entitled to deduction of the sum of rs. 4,70,220, being the income-tax .....Tag this Judgment!
Court : Chennai
Decided on : Mar-28-1967
Reported in : 21STC186(Mad)
..... was of the view that levy of penalty is of a quasi-criminal nature and took into account decisions rendered under section 24b of the income-tax act, 1922. it also considered that section 15 itself was silent as to penalty. it therefore concluded that the penalty levied was without authority.2 ..... apart from any constitutional question, which is not raised before us. the scheme of section 24b of the income-tax act, 1922, is totally different from section 15 of the madras general sales tax act, 1959. section 15 directs that when a dealer dies his legal representative shall be deemed to be a ..... and 25 of the madras general sales tax act, 1959, is supported by the fact that section 159(3) of the income-tax act, 1961, clearly provides, unlike section 24b of the income-tax act, 1922, that the legal representative of the deceased shall for the purposes of the act be deemed to be an assessee. the ..... deeming is complete and the legal representative is regarded as the dealer for the entire range and purpose of the act. ..... a short point, but one of importance, arises in this case, to wit, whether penalty under section 12(3) of the madras general sales tax act, 1959, can be levied on the legal representative of the deceased. the tribunal has taken the view that it is not permissible. one muthukrishnan .....Tag this Judgment!