Court : Chennai
Decided on : Mar-28-1994
Reported in : 213ITR533(Mad)
..... gulab c. gupta, j. 1. this is a reference under section 256(2) of the income-tax act, 1961, in accordance with the direction of this court referring the following three questions for the opinion of this court : '1. whether, on ..... also submitted that because of these purchases, there was a phenomenal increase in the business of the assessee-company with kothari sugars and chemicals ltd. the income-tax officer disallowed the claim holding that the establishment of business with kothari group was itself a capital asset and the shares had not been converted into stock- ..... and the second lot of 10,000 shares for less than five years. the assessee claimed that the above loss should be deducted in computing the income of the assessee from business on the ground that the loss arose in the course of business. the assessee supported the claim by producing the correspondence ..... was incurred in order to procure better business for the assessee-firm. this decision has received the approval of the supreme court in patnaik and co. ltd. v. cit : 161itr365(sc) . it was a case where the assessee, who was a dealer in automobile spare parts, had invested some amount in purchasing orissa ..... the investment in capital could only be treated as capital investment. reliance was placed on the decision of the supreme court in ramnarain sons (p.) ltd. v. cit : 41itr534(sc) . on appeal, the appellate assistant commissioner found as a fact that the shares had been purchased in order to have good business .....Tag this Judgment!
Court : Chennai
Decided on : Jun-15-1994
Reported in : 212ITR527(Mad)
..... declined to make a reference, the revenue approached this court in t. c. p. nos. 140 and 141 of 1980 under section 256(2) of the income-tax act, 1961 (hereinafter referred to as 'the act'), and this court directed, in the said proceeding, the tribunal to refer the question to it for determination whether, on the facts and in the circumstances ..... assessee to produce the recipient for cross-examination. the appellate assistant commissioner, however, mainly took notice of the trade practice and recorded his disagreement with the view of the income-tax officer as regards the brokerage paid to ashok leyland limited and others were concerned. 4. the tribunal, however, has agreed with the appellate assistant commissioner that there is a ..... parties at certain amounts and disallowed the entire amounts for the same reason for which he disallowed the commission payment to ashok leyland limited. for the balance brokerage, the income-tax officer observed that there might be likelihood of inflation in the payments and disallowed further sums. on appeal by the assessee, the appellate assistant commissioner held that the assessee ..... heavily relied upon a judgment of the supreme court in the case of lachminarayan madan lal v. cit : 86itr439(sc) . the assessee in this case had claimed deduction under section 37 of the act a certain amount of selling agency commission. the income-tax officer rejected the claim. but the appellate assistant commissioner allowed the claim and observed as follows (at .....Tag this Judgment!
Court : Chennai
Decided on : Nov-16-1994
Reported in : (1995)129CTR(Mad)258; 215ITR536(Mad)
..... thanikkachalam j.1. at the instance of the department under section 256(2) of the income-tax act, 1961, the income-tax appellate tribunal referred the following question for our opinion : 'whether, on the facts and in the circumstances of the case ..... expenditure of rs. 4,19,000. according to the assessee, such expenditure is revenue in nature. therefore, deduction should be allowed. however, the income-tax officer held that it is capital in nature. on appeal the appellate assistant commissioner held that the amount of rs. 4,19,000 expended by the ..... claimed the relief by treating this expenditure as revenue in nature. lastly, the learned counsel appearing for the assessee relied upon a decision in the case of cit v. sree bhagavathi textiles ltd. : 207itr826(ker) . according to the facts arising in that decision, the assessee, a spinning mill, claimed ..... appearing for the assessee submitted that the expenditure incurred for replacing the roof is only of revenue nature. in the decision of silver screen enterprise v. cit , the punjab and haryana high court while considering the distinction between the capital expenditure and the revenue expenditure observed as follows (at page 580) : ..... have to be treated as charges for repairs and, hence, exigible for deduction under section 37 of the act. again, learned counsel appearing for the assessee relied upon a decision in the case of cit v. mahalakshmi textile mills ltd. : 66itr710(sc) . according to the facts arising in the decision .....Tag this Judgment!
Court : Chennai
Decided on : Mar-23-1994
Reported in : 211ITR661(Mad)
..... , j. 1. the tribunal, at the instance of the revenue, has referred the following question, under section 256(1) of the income-tax act, 1961, for the decision of this court : 'whether, on the facts and in the circumstances of the case, the tribunal was ..... item-wise particulars regarding the written down value have not been given by the assessee. as a matter of fact, in the original assessment, the income-tax officer allowed depreciation of malaysian assets on a proportionate basis in the absence of particulars. it is true, the item-wise particulars of the written ..... consider the additions to the various assets during the relevant years in question, and the assessee was also directed to furnish the relevant particulars before the income-tax officer. he further seems to have arrived at the figure itself at rs. 2,85,212 on the basis of the particulars furnished before him, ..... those places were not available at the time of assessment. according to the income-tax officer, in terms of section 34 of the act, the depreciation can be allowed only if the prescribed particulars are furnished. on that account, the income-tax officer held that the assessee has not given the correct opening written down ..... above which go contrary to the terms of section 34 of the act. 4. it appears, before the tribunal, the assessee's counsel contended that the assessee had given particulars that the business was a composite one and the income-tax officer should have determined the written down value, and as he has .....Tag this Judgment!
Court : Chennai
Decided on : Sep-08-1994
Reported in : (1995)129CTR(Mad)127; 214ITR660(Mad)
..... it was not possible for the income-tax officer to decide the true profits of the assessee. what is to be taxed is the income of the assessee. the taxable income has to be reached in accordance with the provisions of the income-tax act. in a case where the income has accrued but its receipt has ..... been delayed there may be justification for the department to include the same in the taxable income. this, however ..... , can be done only if the income has really accrued or arisen to the ..... rs. 3,02,168 was that the loan has become stagnant. no enquiry whether the claim was correct was made by the income-tax officer. the income-tax officer, however, noticed that since the assessee has himself shown the accrued interest payable by him as expenditure he was not maintaining correct accounts ..... also held that the assessee is following two types of systems of accounting which was not permissible and, therefore, upheld the addition made by the income-tax officer. on a further appeal to the tribunal, the tribunal was of the opinion that even on a finding that the account was not .....Tag this Judgment!
Court : Chennai
Decided on : Mar-30-1994
Reported in : 211ITR928(Mad)
..... facet. the business was not separate and distinct business and, therefore, the requirement of the proviso to clause (i) to section 72(1) of the income-tax act was satisfied. the tribunal also found, on the facts, that there was a common administration, common fund, common place of business and common management and, ..... businesses are not separate or distinct business and, therefore, the requirement of the proviso to sub-clause (i) to section 72(1) of the income-tax act, 1961, is satisfied.' 10. in the light of the above findings on the facts based on materials placed before it, the tribunal found that the ..... assessee to carry forward the loss incurred in the business of managing agency. subsequently, the assessments were reopened under section 147(b) of the income-tax act on the ground that the losses incurred in the business of managing agency which were not carried on during the assessment yeas in question were ..... in the circumstances of the case and having regard to the proviso to sub-clause (i) of sub-section (1) of section 72 of the income-tax act, 1961, the appellate tribunal was correct in holding that the business carried on by the assessee was one and the same and, accordingly, the assessee ..... in the circumstances of the case and having regard to the proviso to sub-clause (i) of sub-section (1) of section 72 of the income-tax act, 1961, the appellate tribunal was correct in holding that the business carried on by the assessee was one and the same and, accordingly, the assessee .....Tag this Judgment!
Court : Chennai
Decided on : Aug-19-1994
Reported in : 213ITR771(Mad)
..... the absence of any proof of actual receipt of consideration in excess of what is shown in the transaction between the parties the provisions of section 52(2) of the income-tax act could be applied ? 3. whether the value of rs. 1,10,000 estimated by the appellate assistant commissioner for routes transfer is proper and legal 4. whether the appellate tribunal ..... compliance with the directions given by this court under section 256(2) of the income-tax act, 1961 (hereinafter referred to as 'the act'), the tribunal referred the following questions for our opinion : '1. whether, on the facts and in the circumstances of the case, there is liability to capital gains tax by reason of the transfer of the buses to the managing director, mr ..... to routes now for a sum of rs. 2,20,000 i.e., near about the same figure as found by the income-tax officer. hence the tribunal held that there is no scope for applying section 52(2) of the act and there is no liability to capital gains. regarding the route value, the tribunal agreed with the value fixed by the ..... which was confirmed by the appellate assistant commissioner on appeal. this determination of value has become final. on going through the account books, the income-tax officer came to the conclusion that capital gains tax should be levied and the provisions of section 52(2) of the act are attracted. he estimated the value of the route permits. the reason for levying capital gains .....Tag this Judgment!
Court : Chennai
Decided on : Apr-19-1994
Reported in : (1995)127CTR(Mad)329; 212ITR220(Mad)
..... jayasimha basu, j. 1. pursuant to the order of this court under section 256(2) of the income-tax act, 1961, the following questions of law have been referred to us for our decision : '1. whether, on the facts and in the ..... was an individual and a minor at the relevant time, for the assessment years 1966-67 to 1969-70 included interest from certain loan transactions. the income-tax officer relying upon the fact that the entire capital that was received by the minor at a family partition had been invested with a small number of ..... the same constituted money-lending business by the assessee. the tribunal rightly held that the interest earned by the assessee on annuity deposits has to be taxed under the head 'income from other sources'. 5. sri n. v. balasubramaniam, learned counsel for the revenue, submitted before us that the facts found by the tribunal ..... the assessee was carrying on the business of money-lending, and that the interest income should be taxed under the head 'income from other sources'. he invited our attention to the definition of the word 'business' in section 2(13) of the act and to the decisions of the supreme court in narain swadeshi weaving mills v. ..... cept : 26itr765(sc) and sole trustee, loka shikshana trust v. cit : 101itr234(sc) . .....Tag this Judgment!
Court : Chennai
Decided on : Dec-21-1994
Reported in : 215ITR723(Mad)
..... that the amount of rs. 20,00,348 represented capital expenditure and was not a permissible deduction under section 10(2) (xv) of the indian income-tax act, 1922. the expenditure for the acquisition of a plant was surely of a capital nature and any loss suffered in that transaction would naturally be of ..... interest and storage charges for breach of contract for purchase of a capital asset should be allowed as an expenditure allowable under section 37 of the income-tax act, 1961 ?' 2. the assessee is a private limited company. the assessee wanted to set up a project for manufacturing chemical process and pumps in ..... j. 1. at the instance of the department, the tribunal referred the following question for our opinion under section 256(1) of the income-tax act, 1961 : 'whether, on the facts and in the circumstances of the case, the appellate tribunal was right in law in holding that ..... the commissioner of income-tax (appeals) confirmed the order passed by the income-tax officer. however, on appeal, the tribunal allowed the claim made by the assessee. learned standing counsel appearing for the department ..... way of interest and storage charges. the assessee claimed that this sum is a revenue expenditure for the assessment year 1977-78. the income-tax officer disallowed the assessee's claim on the ground that the damage is due to purchase of machinery which is capital in nature. on appeal .....Tag this Judgment!
Court : Chennai
Decided on : Jun-16-1994
Reported in : (1995)129CTR(Mad)351; 212ITR620(Mad)
..... janarthanam, j. 1. this is a reference, at the instance of the revenue, under section 256(2) of the income-tax act, 1961 (for short, 'the i. t. act'), requiring this court to decide the following questions of law : '(1) whether, on the facts and in the circumstances of the case, the appellate tribunal is correct in holding that ..... reference on the aforesaid two questions. 8. we now propose to consider the tenability or otherwise of the second facet of the submission of learned junior standing counsel for the income-tax department, revolving on the second question referred to us for decision. 9. it is not as if there are no materials for the appellate tribunal to record a finding that ..... 20 per cent. thereafter. the amount not realised from that party was shown as rs. 21,720 and this was written off and claimed as a 'business loss'. 4. the income-tax officer, while computing the assessment for the year 1972-73, did not allow the loss as claimed by the assessee on the ground that the assessee had invested moneys for ..... a portion of the advance and, hence, the same should be allowed as 'business loss'. 6. mr. n. v. balasubramanian, learned junior standing counsel for the income-tax cases, placing implicit reliance on the decision in cit v. coimbatore pictures (p.) ltd. : 90itr452(mad) , would contend that the appellate tribunal committed a serious error of law, in holding the two sums, as .....Tag this Judgment!