Court : Chennai
Decided on : Mar-13-1978
Reported in : (1979)11CTR(Mad)146; 119ITR321(Mad)
..... , the sum of rs. 13,820 representing the difference between the assessee's outlay on government bonds and their sale proceeds is an allowable deduction under section 37 of the income-tax act, 1961 ?'and have observed (p. 244) :' in order to entitle a deduction under section 37, two conditions have to be satisfied : (1) the expenditure should have been incurred wholly and ..... and could recover only a sum of rs. 28,000 from him. the assessee wrote off the balance and subsequently claimed deduction for the amount in computing the income for the purpose of income-tax. it has been held that misappropriation of funds by the agent was incidental to the carrying on of the business and that the difference was deductible, in computing ..... . 3,127 which was stated to have been incurred in the purchase and sale of certain government bonds during the relevant accounting year. the taxing officer disallowed this sum of rs. 3,127 in computing the net income at rs. 80,310 after allowing some deductions. in the assessee's appeal before the aac, it was contended that the assessee had to ..... profits, under section 10(1) of the act of 1922.6. in addl. cit v. badrinarayan shrinarayan akodiya : 101itr817(mp) decided by a division bench of the madhya pradesh high .....Tag this Judgment!
Court : Chennai
Decided on : Jan-17-1978
Reported in : 117ITR308(Mad)
..... contractual liabilities of a firm may be jointly and severally enforced against the partners.' the provisions of section 25 of the partnership act cannot be imported into the income-tax act, 1961, unless there is any provision to that effect in the income-tax act or at least there was such a necessary implication arising from the provisions thereof. we are unable to discern any such provision ..... in this extreme argument is ito v. radha krishan : 66itr590(sc) , a case which arose under section 26a of the indian income-tax act of 1922. in fact, the full bench itself notes at page 151 and says: 'the indian income-tax act, 1922, contained a provision specially incorporating rule 50 of order xxi of the civil procedure code. it was in the light of that specific ..... ito v. radha krishan : 66itr590(sc) , held : 'the firm consisted of four partners a, b, c and d. the firm had been registered under section 26a of the indian income-tax act, 1922. a represented his hindu undivided family in the partnership and his share was 8 annas. in assessing a under section 23(5)(a) for the year the ..... partner of the firm is in any way obliterated. 16. in p. balchand v. tro : 95itr321(kar) , it was held (head-note): 'where the income-tax officer issues a certificate under section 222 of the income-tax act, 1961, to the tax recovery officer to recover the amount of tax specified and the certificate shows the assessee in default as a firm, which was unregistered, the .....Tag this Judgment!
Court : Chennai
Decided on : Apr-12-1978
Reported in : 117ITR705(Mad)
..... on an extent of 20.08 acres of wet lands and 26.86 acres of dry lands in the year 1971-72, under the travancore-cochin agricultural income-tax act. subsequently for the assessment year 1972-73, the petitioner has filed a composition application for 13.34 acres of wet lands only, after excluding certain lands ..... the principle laid down in that decision has to apply to the facts of this case. 8. section 9(2) permits inclusion in the husband's income, the income of a wife and minor child arising out of properties transferred by the husband directly or indirectly to the wife and the minor child otherwise than for ..... favour of his wife is a valid one, so long as the wife continues to live with the petitioner and the lands are enjoyed by him, the income should be included in his assessment. in respect of the lands settled in favour of his daughter, the commissioner held that she continues to be under ..... of section 9(2),this conclusion flows from the decision of the allahabad high court, referred to above. 9. as already stated, in this case, the cit has found that the settlement deeds executed by the petitioner in favour of his wife and minor daughter are valid. but he held, notwithstanding the fact that ..... therefrom by the coparcener was taxable as income of the huf and not as his individual income, that under the hindu system of law a joint family may consist of a single male member and widows of deceased male members, and that the i.t. act does not indicate that a huf as an assessable entity .....Tag this Judgment!
Court : Chennai
Decided on : Jan-23-1978
Reported in : 118ITR94(Mad)
..... and in the circumstances of the case, the appellate tribunal was right in cancelling the penalty of rs. 30,000 imposed under section 271(1)(c) of the income-tax act, 1961, for the assessment year 1963-64? 2. whether the finding of the appellate tribunal that no penalty is exigible is a reasonable view to take on ..... assessed on that basis would not enable us to hold that the assessee had concealed the particulars of his income or had furnished inaccurate particulars thereof in order to attract section 271(1)(c) of the act. the supreme court in cit v. anwar ali : 76itr696(sc) has laid down this proposition. in the absence of material evidence ..... govindan nair, c.j.1. two questions have been referred to us by the income-tax appellate tribunal, madras bench, in relation to the assessment of a person engaged in the business of operating motor vehicles for profit.2. the questions ..... not been accepted by the department and assessments were made under section 144 of the i.t. act, 1961. this happened for the year 1963-64 as well, with which we are concerned in the reference before us. the income returned by the assessee was rs. 32,875. but as finally assessed by the aac and ..... , therefore, where, on the facts disclosed, the assessment was made on the basis of an estimatethat the bulk of the vehicles owned by the assessee should provide an income of rs. .....Tag this Judgment!
Court : Chennai
Decided on : Feb-17-1978
Reported in : 118ITR636(Mad)
..... of the case, the appellate tribunal was right in holding that the appellate assistant commissioner was justified in cancelling the orders passed under section 154 of the income-tax act, 1961, for the assessment years 1966-67 and 1967-68?'2. the assessee is a firm consisting of two partners, viz., t.s. krishna and ..... he then was, speaking for the court, observed at page 424 as follows :'but it is said that section 35 of the act even without the amendment would have enabled the income-tax authorities to reopen the assessment on the ground that there was a mistake apparent from the record. but from the record of ..... tribunal found that the ito took the decision to apply section 183(b) not on the basis of any available information as regards the individual total income of the two partners for these years, as the relevant returns had been filed by the said partners after the completion of the assessment mentioned above ..... in the business. similarly, for the assessment year 1967-68, in completing the assessment under section 143(3) on september 21, 1967, on a total income of rs. 86,150 he made similar observations.3. the audit party of the accountant-general appears to have raised an objection to the assessment so ..... earlier years. it was seen by the tribunal that the fresh calculations of tax proceeded on the footing that the share income of each of the two partners from the assessee-firm was to be looked upon as an unearned income. as in its view the change of opinion on the part of the .....Tag this Judgment!
Court : Chennai
Decided on : Feb-02-1978
Reported in : AIR1979Mad37; 115ITR243(Mad)
..... refer to the sections of the statute with which we are concerned. 'capital gains' is dealt with in s. 45 of the income-tax act, 1961, which we shall refer to as the act hereinafter, and is more or less the definition of the term, and the section reads thus-"45. capital gains.-any profits or ..... of construction of all india tax laws by the various high courts is eminently desirable. if any high court gives a decision against the department on a ..... concerned the interpretation or law in a taxing statute governing the whole of india, it should be deemed that the department had made up its mind to accept the decision in ratnam nadar's case (1969) 71 itr 433 (mad), as laying down the correct law. the income-tax act is an all india statute. uniformity ..... of i.-t., (1971) 81 itr 500. the karnataka high court did the same thing in the decision reported in commr. of income-tax v. srinivasa setti, 96 itr 667: (1975 tax lr 481).4. both the decisions of the kerala high court and the karnataka high court have also adverted to the possibility of ..... gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 53, 54, 54-b, 54-c and 54-d, be chargeable to income-tax .....Tag this Judgment!
Court : Chennai
Decided on : Nov-20-1978
Reported in : AIR1979Mad185; 117ITR55(Mad)
..... % of the amount paid by the assessee as royalty to messrs. jonas woodhead & sons, was capital expenditure and therefore not allowable as a revenue expenditure under the provisions of the income-tax act, 1961, for the assessment years 1967-68 and 1968-69".2. the assessee is a limited company incorporated on 8-3-1963 to carry on the business of manufacturing automobile ..... consideration for services provided by the english company of an enduring nature and was therefore capital in content. the assessee-company's appeals to the appellate assistant commissioner and the income-tax appellate tribunal failed and hence the question extracted above was referred to this court for its opinion.21. before the tribunal, the assessee relied on the ratio of the decision ..... , the assessee-company made payments of rs. 24,000/- and rs. 47,000/- for the assessment years 1967-68 and 1968-69 respectively to the english company as royalty. the income-tax officer disallowed one-fourth of the payments, namely rs. 6000/- for the assessment year 1967-68 and rs. 11,750/- for the assessment year 1968-69 on the ground that ..... 1. at the instance of the assessee, the income-tax appellate tribunal, madras bench 'b', madras, has referred the following question for the opinion of this court:--"whether, on the facts and in the circumstances of the case, the tribunal .....Tag this Judgment!
Court : Chennai
Decided on : Mar-30-1978
Reported in : 49CompCas375(Mad); 118ITR60(Mad)
..... depreciable asset on the expiry of the specified period ; or(d) as regards any other depreciable asset for which no rate of depreciation has been laid down by the indian income-tax act, 1922, or the rules made thereunder, on such basis as may be approved by the central government by any general order published in the official gazette or by any special ..... should be deducted from the accumulated profits to find out the value of the dividends sought to be distributed by virtue of section 2(22)(d) of the income-tax act, 1961 (hereinafter called ' the act '). and whether by virtue of the above proceeding in reduction of the capital, there had been any resulting capital gains which can be assessed in the hands of ..... hands of the assessee as there was no extinguishment of any right of the assessee and consequently there was no transfer within the meaning of section 2(47) of the income-tax act, 1961, by the assessee of any capital assets for the assessment year 1963-64 '2. the year of assessment is 1963-64, the corresponding accounting period ending on 31st march ..... the shareholder will be less than the minimum liable to income-tax, the person responsible for paying any dividend to the shareholder shall, so long as the certificate is in force, pay the dividend without any deduction.' 6. section 205 of the companies act is as follows:'(0 no dividend shall be declared or paid by a company for any financial year except .....Tag this Judgment!
Court : Chennai
Decided on : Dec-06-1978
Reported in : 127ITR520(Mad)
..... a medial note as between these two extreme propositions and recognised the continued existence of the firm in spite of the change in the constitution. the income-tax act went a little further and recognised the firm for the purpose of assessment as a unit independent of the partners constituting it.'14. the court further observed (p. 164) : ' we ..... the appellate tribunal was right in holding, in the facts and circumstances of the case, that the provisions of section 187(2) of the income-tax act, 1961, were not applicable and that for the assessment year 1969-70, two separate assessments had to be made for the periods from april 1, 1968, to october 17, 1968 ( ..... partners even if there had been such a provision in the partnership deed. that was the view taken by the supreme court in cit v. seth govindram sugar mills : 57itr510(sc) . 11. section 42 of the partnership act, 1932, reads : ' 42. subject to contract between the partners a firm is dissolved-- (a) if constituted for a fixed term, by the expiry ..... the previous year shall, for the purposes of inclusion in the total incomes of the partners, be apportioned between the partners who, in such previous year, were entitled to receive the same ; and (ii) when the tax assessed upon a partner cannot be recovered from him, it shall be recovered from the firm as constituted at the time of making the assessment .....Tag this Judgment!
Court : Chennai
Decided on : Nov-29-1978
Reported in : 128ITR215(Mad)
..... of the case, the appellate tribunal was right in cancelling the penalties of rs. 50,000 and rs. 25,000, levied under section 271(1)(c) of the income-tax act, 1961, for the respective assessment years 1961-62 and 1962-63?'2. a business in the name of m. m. ali motor service was being carried on ..... the assessment year 1962-63, he added a sum of rs. 6,000.5. all these additions have become final, since they have been confirmed by the income-tax appellate tribunal.6. the question with which we are concerned in the present reference is the penalty levied on the assessee. the iac levied a penalty of rs. ..... cash through book entries passed in the account of mir . baquir ali. under those circumstances, all the authorities held that the assessee alone should be taxed in respect of the income from the two lorries and consequently added a sum of rs. 7,000 for the assessment year 1961-62 and a sum of rs. 5,000 ..... had taken over the business with effect from april 1, 1957, and that the said firm filed a separate return of income and application for registration under section 26a of the indian i.t. act, 1922. it has been held that the said firm was not a genuine firm and that matter has become final because ..... furnished inaccurate particulars so as to attract liability to penalty under section 271(1)(c) of the i.t. act, 1961.9. with regard to the addition made to the income from the petrol bunk business, here again it was only on the basis of an estimate, since the assessee was not able to support by .....Tag this Judgment!