Court : Chennai
Decided on : Apr-28-2003
Reported in : III(2003)BC469; 118CompCas82(Mad); 2003(3)CTC95; (2003)2MLJ220
..... under the income-tax act. rule 39 of the income-tax (certificate proceedings) rules, 1962 (hereinafter referred to as 'the itcp rules') deals with the delivery of immovable property in occupation of defaulter or ..... rules, 1962 read with section 29 of the recovery of debts act. section 29 of the recovery of debts act, which occurs in chapter v of the act relating to the recovery of debt determined by tribunal, provides that the provisions of the second and third schedules to the income-tax act, 1961 and the income-tax (certificate proceedings) rules, 1962, as far as possible, shall ..... apply with necessary modifications as if the said provisions and the rules referred to the amount of debt due under the recovery of debt act instead of tax ..... property. rule 42 deals with the resistance or obstruction by the defaulter or by some other person at his instigation. rule 43 deals with the power of the tax recovery officer when there is resistance or obstruction by bona fide claimant. under rule 43, where the recovery officer is satisfied that the resistance or obstruction was occasioned .....Tag this Judgment!
Court : Chennai
Decided on : Jun-17-2003
Reported in : AIR2004Mad18
..... next contention of the defendant is that since the property is of value more than rs. 10 lakhs, the parties must have got the clearance from the income tax department, under section 230-a of the income tax act; for that, both parties must file a joint draft application. but, such an application cannot be filed before the land was exempted from the urban land ..... ; that has to be paid only at the time of sale transaction; a draft sale deed was not prepared by her for getting permission under section 230-a of the income tax act; she did not refuse to receive any letters from the defendant; she always had the means to complete the transaction; further, she has stated in the re-examination that the ..... exemption. therefore, the plaintiff is not guilty of breach of this term of the agreement.25. the other condition is to get clearance from the income tax authorities. an application under section 230-a of the income-tax act cap be made only after the grant of exemption by the urban land celling authorities. if any application is made before grant of such exemption, that ..... draft sale deed was forwarded to enable the defendant to secure necessary certificate under section 230-a of the income-tax act. the plaintiff was indifferent towards his obligations. in the year 1986, the income-tax act was amended with the introduction of chapter xx-c, the plaintiff was informed that the law required a joint application to be made to the competent authority for grant .....Tag this Judgment!
Court : Chennai
Decided on : Jun-20-2003
Reported in : 2003(3)CTC158; (2003)IIILLJ650Mad; (2003)2MLJ793
..... various educational functions and providing benefits to the deserving. it is further admitted that the hospital enjoys the benefit of section 80-g of the income tax act as well as section 10(22), besides substantial exemption from customs duty, etc. on import of medical equipment and supplies, all of which clearly ..... case, the supreme court was concerned with the exemption claimed under sections 11(1) and 12(15) of the income tax act. according to these provisions, the income derived from the property held under the trust wholly for charitable or religious purpose to the extent to which such ..... at the cost of the labour of the workers also. since the central government provides exemption to the hospital from customs duty, excise duty and income tax as also other such benefits, the hospital being a charitable institution and as they satisfy the requirement by providing free treatment to 40% of its ..... the required current or capital expenses and ensure the stability and the continuity of the project. this cannot be achieved without ensuring surplus of the income over expenses. whatever the object, such surplus does amount to profit. the element of such profit to a certain extent is inevitably implicit in ..... import at all since the term 'industry' is a technical one for the purpose of the act. even as a masterpiece of painting is priceless art, but is within 'good' under the sales tax law without any philistanic import.' their lordships further held that the university of delhi's case was .....Tag this Judgment!
Court : Chennai
Decided on : Dec-23-2003
Reported in : (2006)200CTR(Mad)678; 272ITR525(Mad)
..... for reproduction of film songs for a specific period is royalty and allowable as revenue expenditure and not a capital expenditure, which attracts the provisions of section 35a of the income-tax act.2. the assessee is an individual engaged in the production of audio cassettes with popular film songs. he carries on the business of manufacturing pre-recorded cassettes and selling the ..... of income tax was of the view that the royalty paid for acquiring the copy right should be treated as capital expenditure, since what was obtained ..... of royalty and should, therefore, be allowed as revenue expenditure in computing the assessee's income. his claim was accepted on 29.09.1996 for the assessment year 1985-86. for the assessment year 1984-85 also, the assessment was made under section 143(3) of the income-tax act on 19.3.1987 accepting the deduction of such expenditure. later on, the commissioner ..... the film songs will hardly be for a period of six months. in the assessment made, these payments were treated as having been made for acquiring capital assets. 5. the income tax appellate tribunal went into the question in detail in the appeals filed by the assessee, and directed that the entire royalty paid should be treated as a revenue expenditure and .....Tag this Judgment!
Court : Chennai
Decided on : Apr-21-2003
Reported in : 267ITR74(Mad)
..... is right in law in holding that the criminal court's finding that the assessee is guilty of wilful default and hence punishable under the income-tax act has no relevance to the subject matter of appeal before them ?(c) whether, on the facts and in the circumstances of the case, the ..... tribunal accepted the explanations by the assessee and quashed the penalties which were inflicted by the assessing authority and the commissioner of income-tax (appeals) under section 271(1)(a) of the income-tax act, 1961.2. the appeal is at the instance of the revenue and the following substantial questions of law are canvassed.'( ..... of section 139 or by such notice, as the case may be, or' 5. it is obvious that the law poses discretion in the income-tax officer or the appellate assistant commissioner or even in the commissioner (appeals) to find out whether there has been a reasonable cause on account of ..... tribunal is right in law in admitting an argument which is based on facts would have certainly been advanced before the assessing officer, the commissioner of income-tax (appeals) and before the criminal court ?'3. the relevant year is 1985-86 and the returns were bound to be filed before june 30, ..... returns. the language of section 271(1)(a) is as follows :'271. (1) if the income-tax officer or the appellate assistant commissioner or the commissioner (appeals) in the course of any proceedings under this act, is satisfied that any person-- (a) has without reasonable cause failed to furnish the return of .....Tag this Judgment!
Court : Chennai
Decided on : Apr-30-2003
Reported in : (2004)191CTR(Mad)478; 269ITR390(Mad)
..... have always been taxable before and after the amendment to rule 3. only the mode of valuation of some of the perquisites has undergone change after the amendment.6. the income-tax act itself does not set out the manner in which the perquisites are to be valued. that is dealt with by the rule making authority, namely, the central board of direct ..... been stated that '. . . in respect of employees drawing salary up to rs. 1 lakh no perquisite value will be taken for computing the taxable income.''perquisites' is defined in an inclusive way in section 17(2) of the income-tax act. 'perquisites' as defined therein forms part of 'salary', which is defined in section 17(1), sub-clause (iv) of which refers, inter alia ..... in contrast to the employees of the government and of the private sector, and further their being burdened with additional liability to tax. the amended rule in their view is violative of article 14.2. rule 3 of the income-tax rules, 1962, deals with the valuation of perquisites. before proceeding further, we may record here that in the counter affidavit filed by ..... or to effect a contract for an annuity.4. 'salaries' is one of the heads of income referred to in section 14, which, inter alia, provides that 'all income shall, for the purposes of charge of income-tax and computation of total income, be classified under the following heads of income :-- a. salaries ; c. income from house property ; d. profits and gains of business or profession ; e .....Tag this Judgment!
Court : Chennai
Decided on : Apr-24-2003
Reported in : (2003)185CTR(Mad)185; 263ITR83(Mad); (2003)3MLJ9
..... 9-12-1992, is engaged in production and distribution of motion pictures mainly in tamil language. there was a search under sec. 132 of the income tax act at the business premises of the assessee on 13-9-1996 during which, certain books of accounts and documents were found and seized. till the ..... are the directors in the assessee company. a notice came to be issued under sec. 158bc of the income-tax act. in response, the assessee filed its return income for the block period suggesting that the 'undisclosed income' was 'nil'. questionnaires were issued and written submissions were also filed along with the answers. the statements ..... first contention is, therefore, rejected.7. the next contention of the learned counsel was in respect of sec. 40a(3) of the act. he assails the finding of income tax appellate tribunal in so far as it pertains to some films which were produced prior to the amendment to sec. 40a(3). it ..... expenditure under sec. 37. for this purpose, learned counsel relied on a decision of the punjab high court in attar singh gurmukh singh v. income tax officer, ludhiana . as against this, the learned standing counsel for the department reiterated that firstly the amendment cannot be said to be a procedural ..... held that the provision has been made to safeguard the revenues of the state and if the measures were taken to check the evasion of income-tax, it could not be said that the said measure was ultra vires on the ground of arbitrariness and being violative of art. 14 of .....Tag this Judgment!
Court : Chennai
Decided on : Nov-17-2003
Reported in : (2004)187CTR(Mad)48; 265ITR372(Mad)
..... . the second question is as to whether the tribunal was right in sustaining the action of the assessing officer in charging interest under section 216 of the income-tax act.17. the assessee made payments of advance tax on june 15, 1986, september 30, 1985 and december 15, 1986 in the sums of rs. 32,40,000, rs. 32,40,000 and rs. 65 ..... that these figures could not be estimated accurately while filing the estimations for the first and second instalments and while paying the advance tax.19. the tribunal has upheld the levy of interest under section 216 of the income-tax act by observing that as the previous year of the assessee had ended on august 31, 1985, the assessee had sufficient time to review ..... eligible business as computed in accordance with the requirements of parts ii and iii of the sixth schedule to the companies act. from that figure the amount equal to the depreciation computed in accordance with section 32(1) of the income-tax act is to be deducted. after such deduction, that amount is to be increased by the aggregate of the amounts set out ..... . there is, therefore, no scope at all for importing the concept of different heads of income found in the income-tax act, into the calculation of profit required to be made in terms of section 32(3) of the act which makes the calculations made in accordance with the companies act, the starting point for making the deductions and additions provided for in section 32(3 .....Tag this Judgment!
Court : Chennai
Decided on : Nov-05-2003
Reported in : (2004)187CTR(Mad)481; 266ITR33(Mad)
..... , a decision rendered by a three judge bench. the court therein considered sections 2(47), 34(3)(b) and 155(5) of the income-tax act, 1961 and held that in order to attract section 34(3)(b), it is necessary that the sale or transfer of the assets must be ..... allowance that had been allowed within the period allowed by law.3. the deputy commissioner of income-tax, however, by an order made on march 26, 1993, which is captioned as an order under section 155 of the income-tax act, withdrew the investment allowance that had been availed of against the reconstituted firm on the ground ..... that there had been transfer of assets and liabilities of the old firm to the new firm and therefore, section 155(4a) and sub-clause (5) of section 32a of the act had been contravened. ..... a-vis properties distributed among the erstwhile partners.13. counsel also sought to rely on the decision of this court in the case of wilson industries v. cit : 259itr318(mad) wherein it was held that the asses-see referred to in section 155 is the assessee who had claimed and obtained the ..... within the meaning of the expression 'otherwise transferred' under section 34(3)(b), having regard to the definition of 'transfer' in section 2(47) of the act'.9. in this case, on the old firm being dissolved, no transfer resulted at the time of dissolution. the dissolved firm of the assessee did not .....Tag this Judgment!
Court : Chennai
Decided on : Dec-15-2003
Reported in : (2004)187CTR(Mad)562; 266ITR27(Mad)
..... investment is made the full amount is payable and interest is paid thereon for the specified period, the investment as also the interest being eligible for concessions/exemptions under the income-tax act. the chance given to the investor to win a prize is a free chance, and is not a chance given in return for a price or contribution paid. the scheme ..... tribunal was right in holding that distribution of prizes under the district level gift linked savings mobilisation scheme did not constitute 'lottery' and the provisions of section 194b of the income tax act are not applicable and if applicable, as to whether the tribunal was right in cancelling the penalty imposed.2. in order to encourage thrift as also to mobilise funds for ..... excess of rupees five thousand by way of winnings from lottery, was required to deduct income tax on the amount so paid at the rates in force. 7. prior to 1.4.2002, the act did not contain a definition of 'lottery'. in the finance act, 2001, an explanation was added below section 2(24)(ix), which explanation reads thus:'explanation:-- for the purposes ..... winnings, the person responsible for paying shall, before releasing the winnings, ensure that tax has been paid in respect of the winnings.'6. by the finance act, 1972, which introduced section 194b, a new sub-clause (ix) was introduced in the definition of 'income' in section 2(24) of the act, which reads thus:'2(24) .... (ix) any winnings from lotteries, crossword puzzles, races .....Tag this Judgment!