Court : Chennai
Decided on : Jun-14-1990
Reported in : (1990)85CTR(Mad)175; 192ITR50(Mad)
..... thanikkachalam, j. 1. in compliance with the directions under section 256(2) of the income-tax act, 1961 (hereinafter referred to as 'the act'), in t.c. nos. 433 of 1979 and 490 of 1977, the tribunal referred the following questions to this court for our opinion ..... chitralaya films, rs. 391 was claimed in respect of kaveri films and rs. 32 was claimed in respect of government of west bengal. according to the income-tax officer, these amounts also related to the discontinued business and, therefore, he refused to allow the same. on appeal, the appellate assistant commissioner confirmed the ..... as stated above, the assessee agreed to reduce the amount to rs. 21,682. this amount was written off on march 31, 1969. the income-tax officer did not allow this amount for the reason that during the previous year relevant to the assessment year under consideration, the assessee did not have ..... the colour laboratory hereunder the above discount was given. according to the income-tax officer, the colour laboratory and the printing department with plant and machinery were already sold to a firm, gemini pictures circuit private limited. therefore, ..... rebate written off in this year related to a discontinued business. on appeal, the appellate assistant commissioner confirmed the disallowance made by the income-tax officer. aggrieved, the assessee filed an appeal before the tribunal. the tribunal, on considering the facts appearing on this aspect, deleted the .....Tag this Judgment!
Court : Chennai
Decided on : Dec-19-1990
Reported in : (1991)94CTR(Mad)71; 191ITR249(Mad)
..... period. so holding, the supreme court upheld the capital natural of the expenditure incurred by the assessee as well as its disallowance under section 10(2)(xv) of the indian income-tax act, 1922. applying the aforesaid principles to the present case, it follows that the expenditure incurred by the assesses was in the nature of capital expenditure. in neel kamal talkies v ..... this amount and, therefore, the departmental authorities were justified in disallowing the amount paid by the assessee as a capital expenditure. under section 256(2) of the income-tax act, 1962 (hereinafter referred to as 'the act'), at the instance of the assessee, the following question of law has been referred to the court for its opinion : 'whether, on the facts and circumstances ..... the business and also with a view to bring into existence an enduring benefit or advantage to the assessee. thus regarding the expenditure as an item of capital expenditure, the income-tax officer added back this amount. on appeal by the assessee before the appellate assistant commissioner, on a consideration of the terms of the agreement and the fact that mr. advani ..... the assessment proceedings for the assessment year 1972-73, the assessee claimed that the payment of rs. 1,00,000 should be subjected to tax treatment as an item of revenue expenditure in computing its taxable profits. the income-tax officer disallowed the claim made by the assessee as, according to him, the expenditure was incurred by the assessee once and for all .....Tag this Judgment!
Court : Chennai
Decided on : Mar-22-1990
Reported in : 186ITR738(Mad)
..... justify that conclusion, it is not open to the high court in a reference under section 66 of the indian income-tax act to reappreciate the evidence. in doing so, the supreme court referred to the following observations of the privy council in cit v. s. m. chitnavis  2 comp cas 464;  6 itc 453(at p. ..... ratnam, j.1. at the instance of the revenue, under section 256(2) of the income-tax act, 1961 (hereinafter referred to as 'the act'), the following questions of law have been referred to this court for its opinion : (1) whether, on the facts and circumstances of the ..... should have written off a major portion of the debt even in 1929. it was held that there was no material to support the finding of the income-tax authorities that the debt had become bad even in 1929 and should have been written off in that year, but that on the materials, there was no ..... effect that there was no prospect of any dividend being declared, the assessee wrote off the debt, as a bas debt, in 1936-37. the income-tax authorities took the view that it was possible for the assessee even in 1929 to know from the schedule filed by the insolvents that the debt was irrecoverable ..... incurred heavy losses and had closed down their business and their properties had also vested in the official receiver owing to their adjudication as insolvents. the income-tax officer took the view that the write-off was premature, as the official receiver had not declared any dividend and disallowed the claim of the assessee for .....Tag this Judgment!
Court : Chennai
Decided on : Feb-15-1990
Reported in : (1990)82CTR(Mad)84; 186ITR339(Mad)
..... blue mountain engineering corporation : 112itr839(mad) , this court ruled that in spite of the slight change in the phraseology between section 3 of the indian income-tax act, 1922, and section 4 of the 1961 act, the income-tax officer continues to have an option to assess either the unregistered firm or the individual partners there of and the assessment of a firm after a ..... that decision would not, therefore, be of any assistance to the revenue. we, therefore, hold considering the provisions of section 3 of the indian income-tax act, 1922, and sections 2(31) and 4 of the 1961 act, that the income-tax officer had an option to assess the association of persons as a unit of assessment or the members of the association as individuals in ..... granted registration to the said firm for the assessment years 1960-61 and 1961-62 and completed the assessments as well. however, the commissioner of income-tax, in the proceedings taken under section 33b of the indian income-tax act, 1922, was of the view that the reconstituted partnership was invalid in law and that, therefore the assessee was not entitled to the benefit ..... the members of such an association individually. to similar effect is the decision in j. c. thakkar v. cit : 27itr658(bom) , where it has been laid down that the indian income-tax act, 1922, advisedly and clearly gives an option to the income-tax authorities either to assess the unregistered firm and then proceed to assess each individual partner of that firm or not .....Tag this Judgment!
Court : Chennai
Decided on : Jan-25-1990
Reported in : 186ITR648(Mad)
..... , certain facts are necessary, namely, whether the assessee has taken any steps to challenge the order of the tribunal confirming the penalty levied under section 271(1)(c) of the income-tax act, 1961. in the absence of the assessee or counsel for the assessee bringing to the notice of this court any subsequent development regarding the steps taken to challenge the order ..... , for concealment of income had become final ?' 2. at the outset, we may mention that the respondent/assessee, though served with notice, has not taken any steps either to appear in person ..... , the income-tax liability attributable to the concealed income of rs. 1,90,000 has to be deducted for the purpose of levy of penalty under section 18(1)(c) of the wealth-tax act, 1957, for the assessment year 1966-67 (2) whether, on the facts and in the circumstances of the case, the penalty levied under section 271(1)(c) of the income-tax act, 1961 ..... of the case and refer certain questions of law that are said to arise out of the order of the income-tax appellate tribunal, madras (hereinafter called 'the tribunal'), for the opinion of this court under section 27(1) of the wealth-tax act, 1957, the tribunal, by its order dated february 26, 1979, referred the following two questions : '(1) whether, on the facts .....Tag this Judgment!
Court : Chennai
Decided on : Feb-13-1990
Reported in : (1990)82CTR(Mad)81; 183ITR200(Mad)
..... references under section 256(1) of the income-tax act, 1961 (hereinafter referred to as 'the act'), at the instance of the assessees, the following common question of law for the assessment years 1972-73 and 1973-74 has been referred to this court for its opinion: ' ..... the assessment years 1972-73 and 1973-74 and could not be subjected to tax. we may also in this connection usefully refer to cit v. shoorji vallabhdas and co. : 46itr144(sc) , where the supreme court pointed out that the levy of income-tax is on income and though the act had taken note of the twin points of time at which the liability to ..... matter is the income and if income does not result at all, there cannot be a ..... tax is attracted, viz., the actual of the income or its receipt, yet the substance of the .....Tag this Judgment!
Court : Chennai
Decided on : Dec-20-1990
Reported in : (1991)93CTR(Mad)128; 191ITR278(Mad)
..... were both minors, aged 12 and 1, respectively. an application was made on september 14, 1955, for the recognition of the partition under section 25a of the indian income-tax act, 1922. the income-tax officer declined to recognise the partition by his order dated march 29, 1956. sathappa chettiar preferred i.t.a. no. 214 of 1956-57 before the appellate assistant commissioner ..... consequently, the income arising therefrom should be considered as the income of the hindu undivided family for the assessment years ..... , tiruchi, who, by his order dated january 21, 1957, accepted the claim of partition and directed the income-tax officer to make an assessment on that basis. as a result of the partition dated april 13, 1955, the father, sathappa chettiar, became liable to pay to pariannan a certain ..... somasundaram, j. 1. in these tax cases, at the instance of the assessee, the following question of law is refereed to this court under section 256(1) of the income-tax act, 1961 (hereinafter referred to as 'the act'), for its opinion : 'whether, on the facts and in the circumstances of the case, the property 'grove estate' belongs to the assessee-hindu undivided family and, .....Tag this Judgment!
Court : Chennai
Decided on : Feb-20-1990
Reported in : 186ITR453(Mad)
..... of proper documents for remittance through banks and other recognised channels of repatriation. even so, we are unable to read the circular as preventing the income-tax officer from ascertaining the quantum of the remittance from ceylon, through an irregular channel. in our view, according to the circular, if resources are ..... provided other requirements regarding the date of migration and the giving of intimation to the income-tax officer are also satisfied. it is further provided that the actual remittance of money through bank, etc., need not be established. in other words, ..... and not to insist upon the same. however, in paragraph 2 of the circular, repatriation of funds from ceylon will be accepted by the income-tax officer only on production of adequate evidence by the assessee to the effect that he had sufficient resources in that country to cover the remittances, ..... investments, as the assessee should have necessarily paid commission for repatriating the money from ceylon. estimating such commission at 50 per cent., the income-tax officer brought to tax rs. 1,15,000 under the head 'other sources'. aggrieved by this, the assessee preferred an appeal before the appellate assistant commissioner and ..... references under section 256(2) of the income-tax act, 1961, (hereinafter referred to as 'the act'), at the instance of the assessee, the following question has been referred to this court for its opinion : 'whether .....Tag this Judgment!
Court : Chennai
Decided on : Oct-05-1990
Reported in : 191ITR1(Mad)
..... . ito 168 itr 332, held as follows (headnote) : 'prior to the amendment with effect from october 1, 1975, the punishment for offences under sections 277 and 278 of the income- tax act was imprisonment only. hence, a firm which is a juristic entity cannot be proceeded against under sections 277 and 278 in respect of returns furnished in 1971. similarly, section 193 ..... prosecution against the company which was a registered company. the period of assessment in the allahabad high court case related to the assessment years 1965-66 and 1966-67. the income-tax act, between april 1, 1964, and october 1, 1975, provided on conviction a minimum punishment of six months rigorous imprisonment under clause (i) of section 277 and not less than three ..... the allahabad high court, in modi industries ltd. v. b. c. goel : 144itr496(all) , took the view that the word 'person' occurring in sections 277 and 278 of the income-tax act, 1961, in view of the definition clause in section 2(31), included a company. the company was hence facie liable to be prosecuted for the commission of an offence under ..... be admitted to the benefits of partnership. any document which went beyond this section cannot be regarded as valid for the purpose of registration under section 26a of the indian income- tax act. 20. in c. a. abraham v. ito : 41itr425(sc) , the supreme court, while considering imposition of penalty on a firm after dissolution of partnership, held (at page 430) 'that .....Tag this Judgment!
Court : Chennai
Decided on : Jan-23-1990
Reported in : (1990)81CTR(Mad)218; 186ITR175(Mad)
..... from letting out of the properties purchased and owned by it and. in that view, brought to tax the income returned asincome from property', subject to the deductions under section 24 of the income-tax act, 1961 (hereinafter referred to as the act'). on appeal by the assessee-company to the appellate assistant commissioner, he took the view that as the records of the ..... assessee-company showed that the assessee was not doing any business in real estate and the income derived by the assessee-company was rental income from the properties acquired ..... the carrying on of business and trading activities in property. 4. we may first point out that under the provisions of the act, there are several heads into which income is divided and though the tax is one, the income may arise from diverse sources with reference to which different rules of computation apply and the manner of computation has also been enumerated ..... in the relevant provisions of the act. however, it must be remembered that the heads of income enumerated in the act are in a sense mutually exclusive and income which appropriately falls under one head, cannot be assigned or subjected to tax under another head. the aforesaid principles are too well-settled. however, the question .....Tag this Judgment!