Court : Chennai
Decided on : Jul-21-2004
Reported in : 2004(5)CTC410; 272ITR529(Mad)
..... . the original assessment for the assessment years 1972-73, 1973-74, 1974-75 and 1977-78 were sought to be reopened invoking section 147 of the income tax act by issuing a notice under section 148 of the income tax act, of course based on a search said to have taken place on 20.2.1980. during the search, assessee has alleged to have admitted that ..... reopening the assessment under section 147 of the income tax act. but, the apex court in the very same case also held that for the purpose of reopening the assessment, what is required to be seen is whether there were prima ..... and others.5. it is true, in raymond woollen mill's case, the apex court, while dealing with the power of the revenue under section 147 of the income tax act for reassessing the case held that sufficiency of the material relied on by the revenue is not relevant, inasmuch as, the same cannot be a criteria for the purpose of ..... and sale of semi-precious and precious stones respectively. 10. in any event, since the issue whether there were materials for the appellant/revenue to invoke section 147 of the income tax act are sufficient, bonafide, definite, relevant and reliable is purely a matter of fact, finding no substantial question of law, the appeals are dismissed. .....Tag this Judgment!
Court : Chennai
Decided on : Jul-07-2004
Reported in : (2004)192CTR(Mad)452; 270ITR394(Mad)
..... source and there is no escape. 11. the trial court without considering the actual effect of the amendment to section 194-a of the income tax act, which came into effect from 1.6.2003, had erroneously directed the insurance company, to deposit the entire amount including the deduction made statutorily. it is not the case of ..... of interest, on delayed compensation, whether it is a revenue receipt, exigible to income-tax, and it is observed: 'interest received on delayed payment of the compensation under the land acquisition act, is a revenue receipt exigible to income tax. the amended definition of interest in section 2(28a) of the income tax act, 1961, was not intended to exclude the revenue receipt of interest on delayed payment ..... petitioner submits that the insurance company is duty bound to deduct the income tax for the aggregate amounts of such income credited or paid during the financial year as interest, since it exceeded rs. 50,000/-, as contemplated under section 194-a of the income tax act. the relevant amended provision reads thus:'to such income credited or paid by way of interest on the compensation amount ..... awarded by the motor accident claims tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such .....Tag this Judgment!
Court : Chennai
Decided on : Oct-05-2004
Reported in : (2005)197CTR(Mad)86; 275ITR451(Mad)
..... during the assessment year 1993-94 and 1994-95 was also rejected; (iv) the issue of cost under section 43(1) of the income tax act (for brevity 'the act') of the assets purchased and leased back during the assessment year 1994-95 was also rejected;(v) the interest was levied for the delay ..... .4.11. in the course of reassessment, as held by the division bench of the kerala high court in commissioner of income-tax v. siva traders : 255itr77(ker) , the income tax officer is obliged to satisfy himself as to whether the materials produced by the assessee and available on record, had any rational ..... 9.2. this issue is settled by a decision of the delhi high court in commissioner of income tax v. bansal credits ltd.,  259 itr 69. on a plain reading of section 32 of the act and entry iii(2)(ii) in appendix i to the rules, it is clear that it is ..... return under section 234a of the act; and(vi)the higher depreciation on vehicles leased out as claimed by the respondent/assessee was also rejected.2.3. aggrieved by the said assessment orders of the assessing officer, the respondent/assessee preferred an appeal before the commissioner of income tax (appeals), who by an ..... section 32(1)(ii) of the act was allowable. even in the instant case, the issue is relating to the allowance of 100% depreciation on each bottle and the said decision squarely applies. that apart, the case of the assessee is also supported with another decision in commissioner of income tax v. alagendran finance ltd. : .....Tag this Judgment!
Court : Chennai
Decided on : Sep-15-2004
Reported in : (2005)193CTR(Mad)641; 272ITR165(Mad)
..... priority as between carried forward business losses, unabsorbed depreciation and unabsorbed development rebate of the previous years.'10.5. it is settled law that under section 32(2) of the income tax act, 1961, a legal fiction has been created that unabsorbed depreciation of the earlier year shall form part of the current year's depreciation allowance and, therefore, it shall have to ..... very order of priority that we have mentioned hereinabove has been set out, but no reasoning have been given in support of this conclusion.similarly, in a.n.aiyar's income tax act, 1961, 2nd edn., at p.824, the same order of priority as we have mentioned, has been set out byt barring the reference to the decision of this court in ..... of any claim by the assessee for deduction towards the depreciation allowance, the assessing authority cannot erroneously assume that such a claim would be untenable under the provisions of the income tax act. he further contends that the assessee cannot be compelled to seek depreciation allowance if he has not chosen to do so and as a result, the unabsorbed investment allowance should ..... . 2.1. the assessee is a public limited company engaged in the business of manufacturing papers. the assessee filed its return under section 139 of the income tax act for the assessment year 1991-92 declaring their income as 'nil', which was arrived at after adjusting the carry forward investment allowance relating to the earlier years. the assessee company claimed that the carry forward .....Tag this Judgment!
Court : Chennai
Decided on : Aug-27-2004
Reported in : 271ITR138(Mad)
..... . the order of the income-tax appellate tribunal confirming the order of the commissioner of income-tax (appeals) is under challenge.2. learned standing counsel for the income-tax department, mr. k. subra-maniam, submits that there is a legal fiction introduced in explanation 1 to section 271(1) of the income-tax act, 1961, that concealment, ..... the question raised being a question of fact recorded in favour of the assessee, that too concurrently by both the commissioner of income-tax and the income-tax appellate tribunal, no question of law arises for consideration by this court, more so when there is a settled legal position interpreting ..... ipso facto, will attract penalty.3. we are not able to accede to this contention for the reason that the explanation 1 contains two sub-clauses (a) and (b) which reads as under :'explanation 1 to section 271(1): where in respect of any facts material to the computation of the total income of any person under this act ..... the said differential amount of tax. the amount of tax is always looked differently than the levy of penalty and in the case of levy of penalty, always there should be ..... said that there is any legal fiction countenancing the establishment of mens rea. this is not a case of levy of tax for the differential amount of investment made on the construction of kalyana mandapam, but this is a case of levy of penalty on .....Tag this Judgment!
Court : Chennai
Decided on : Apr-06-2004
Reported in : 274ITR452(Mad)
..... to 1984-85. for the assessment year 1987-88, the assessment order was passed under section 143(3) of the income-tax act, 1961 on february 28, 1990, and for the assessment year 1988-89 on october 24, 1990. the commissioner of income-tax, who examined the matter, noticed that the initial assessment year for which the assessee had become entitled to the deduction under ..... and not one engaged in the business of banking or providing credit facilities for its members. as the commissioner of income-tax felt that the assessments for both the years required to be revised, he issued a notice under section 263 of the income-tax act to the assessee.3. by a common order, the commissioner directed the assessing officer to revise and modify the ..... , being aggrieved by the said common order passed in those two appeals, has preferred these two tax case appeals.4. a reading of section 80j(2) of the income-tax act would show that the deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the assessment year relevant to the previous year in which the industrial undertaking ..... assessments by disallowing the deductions under section 80p(2)(a). being aggrieved by the said order, the assessee filed i. t. a. nos. 1189 and 1190 of 1992 before the income-tax appellate tribunal, 'b' bench, madras. the appellate tribunal, after elaborately considering the matter, upheld the order of the commissioner only in regard to the deduction allowable under section 80j. the .....Tag this Judgment!
Court : Chennai
Decided on : Jun-16-2004
Reported in : 274ITR482(Mad)
..... allowance under section 32a of the income-tax act, 1961 (hereinafter referred to as 'the act'). the commissioner of income-tax, exercising the power of revision under section 263 of the income-tax act, passed a consolidated order dated march 14, 1990, holding that the assessee would not be entitled to investment ..... 88 and revise the assessments in accordance with the provisions of law.3. as against the order passed by the commissioner of income-tax under section 263 of the income-tax act, the assessee carried the matter in appeal before the income-tax appellate tribunal and the tribunal, following its earlier order in the assessee's own case, came to the conclusion that the ..... polishing of granite, it would not amount to manufacture or production of article and the assessee would not be entitled to claim investment allowance under section 32a of the income-tax act in respect of the machinery used. however, if the assessee has done something more, the assessee has to establish the same before the tribunal. the tribunal is directed ..... activities of the assessee, viz., mining granite from quarries and exporting them after cutting, polishing, etc., which tantamount to manufacture for the purpose of section 32a of the income-tax act, 1961 ?'2. the assessments of the assessee for the two years in question were completed by the assessing officer allowing the claim of the assessee with regard to investment .....Tag this Judgment!
Court : Chennai
Decided on : Jul-19-2004
Reported in : (2005)197CTR(Mad)487; 275ITR46(Mad)
..... an industrial undertaking for the purpose of relief under section 80hhc ?'2. in brief, the assessee-company has claimed rs. 44,09,187 as deduction under section 80hhc of the income-tax act, 1961, which includes interest on deposits of rs. 2,19,088 received from the state bank of india, for the assessment year 1990-91. the assessing officer disallowed the ..... was right in holding that the interest on deposit with the s.b.i. should be treated as income derived from an industrial undertaking for the purpose of relief under section 80hhc of the income-tax act is answered against the revenue in a decision reported in cit v. n. s. c. shoes : 258itr749(mad) , wherein this court held as follows (page 751) ..... be business income. aggrieved by the same, the department filed a further appeal before the income-tax appellate tribunal which was dismissed. hence, the present appeal by the appellant/revenue.4. ..... deduction.3. the assessee filed an appeal before the commissioner of income-tax (appeals), wherein the commissioner, by an order dated february 19, 1993, allowed the appeal and directed the assessing officer to recompute the deduction under section 80hhc of the income-tax act, taking into account the sum of rs. 2,19,000 being interest received and held to .....Tag this Judgment!
Court : Chennai
Decided on : Apr-02-2004
Reported in : 2004(172)ELT149(Mad); 267ITR606(Mad); 146STC688(Mad)
..... . after referring to several decisions of the supreme court and different high courts, a division bench of this court observed : ' . . . the benefit under sections 80j and 80hh of the income-tax act can be availed of only if the assessee is able to prove that it is engaged either in the manufacture or in the production of articles. extraction of granite cannot ..... ) holding that the assessee, engaged in cutting and polishing of diamonds, amounts to manufacturing or production of goods and is entitled to deduction under section 80-i of the income-tax act, 1961 ?'the specific question, therefore, was whether the assessee in cutting and polishing diamonds amounts to manufacture or production of goods. the tribunal had taken the view that the ..... -88, the assessee claimed investment allowance in respect of cranes and in respect of assessment year 1988-89, the company claimed allowance under section 32ab of the income tax act (hereinafter referred to as 'the act'). the assessing officer disallowed the claim, firstly on the ground that cranes were transport vehicles and further on the ground that no manufacturing process was involved in ..... whether, on the facts and in the circumstances of the case, the appellate tribunal was right in law in upholding the finding of the cit (appeals) that the assessee was eligible for deduction under section 32a of the income-tax act, 1961 ? 2. whether, on the facts and in the circumstances of the case, the appellate tribunal was right in law in upholding .....Tag this Judgment!
Court : Chennai
Decided on : Apr-20-2004
Reported in : (2004)190CTR(Mad)517; 268ITR436(Mad)
..... of immovable property was a relinquishment of the capital asset and therefore there was a transfer of a capital asset within the meaning of the income-tax act. the court in the said judgment has clearly mentioned that it does not find any reason to differ from the finding arrived at in : [ ..... assessee could have also assigned that right. hence, what he acquired under the said agreement for sale was therefore property within the meaning of the income tax act, 1961 and consequently a capital asset. the court further held that his giving up of the right to claim specific performance by conveyance to him ..... agreement dated 3.4.1986, the assessee had acquired a right in the property. the word 'property' used in section 2(14) of the income tax act is a word of widest amplitude and that any right that could be called property would be included in the definition of 'capital asset'. under the ..... in the first company and the first company was to be dissolved. the respondent was allotted 45 shares in the second company. the commissioner of income tax took the view that capital gains arose from the acquisition of 45 shares in the second company and directed the officer to revise the assessment. however ..... having been received.'7. section 45 of the act is to the effect that any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in sections 54 etc., be chargeable to income-tax under the head 'capital gains', and shall be .....Tag this Judgment!