Court : Delhi
Decided on : Nov-02-1970
Reported in : ILR1971Delhi555; 82ITR345(Delhi)
..... 'b' has refered the following question under section 66 (1) of the indian income-tax act, 1922 (hereinafter referred to as the act) :- 'whetheron the facts and in the circumstances of the case, the managing agency remuneration was the income of b. n. bhaskar earned in his individual capacity or the income of the hindu undivided family 'of which he was the karta ?'(2) the assessed ..... several decisions of the supreme court. but the position has now been clarified by the supreme court in a recent case, viz., rai kumar singh hukam chandji v. commissioner of income-tax : 78itr33(sc) , in which the supreme court after considering the case law on the subject, has laid down the following broad principle :- 'thebroader principle that emerges is whether ..... the hindu undivided family and directed that this remuneration should be assessed in the hands of b b. n. bhaskar as an individual. the department preferred an appeal before the income-tax appellate tribunal (hereinafter referred to as the tribunal) aginst the order of the appellate assistant commissioner, but the tribunal dismissed the appeal and confirmed the order of the appellate ..... commissioner. the tribunal has, however, made this refernce at the instance of the commissioner under section 66(1) of the act. (5) shri a. n. kirpal, the learned counsel for the revenue, has sought to support the order of the income-tax officer on the following grounds:- (i)that the managing agency firm of m/s bhaskar brothers came into existence at a .....Tag this Judgment!
Court : Delhi
Decided on : Nov-23-1970
Reported in : ILR1971Delhi75; 81ITR126(Delhi)
..... filed and the sum of rs, l,70,000.00 paid to delhi glass works limited was claimed as an allowable deduction under the income-tax act. (8) the income-tax officer rejected the assessed's claim regarding rs. 1,70,000.00 as an allowable deduction as according to him the payment of that amount ..... , the payment of rs. 6,00,000/, was only a capital expenditure and was not a permissible deduction under section 10(2) (xv) of the income-tax act, 1922. (31) on behalf of the assessed certain cases were cited, ft however seems to us that those cases have no reference to the point which ..... take up on lease for a period of thirty years was an admissible deduction under section 10(2)(xv) of the indian income-tax act, 1922 (hereinafter to be referred to as the act). as is well-known this is a residuary head of revenue expenditure and reads as under :- '(xv)any expenditure (not ..... benefit to his trade. the amounts were outgoings on capital account and were not allowable deductions. (29) in r. b. seth moolchand v. commissioner of income-tax , during the assessment year 1952-53, the assessed applied for certain new licenses for working mines and incurred an expenditure, inter alia, of rs. 3200. ..... under section 10(2) (xv) of the act. the calcutta high court had answered the question in the affirmative and its decision was affirmed in appeal by the supreme court. (15) the privy council in tata hydro-electric agencies, limited, bombay v. commissioner of income-tax, bombay presidency and aden 1937 64 la. 215 .....Tag this Judgment!
Court : Delhi
Decided on : Sep-04-1970
Reported in : AIR1971Delhi138; 80ITR206(Delhi)
..... the four donees was a permissible deduction?2. messrs. new india colour co., delhi a partnership firm registered under section 26-a of the income-tax act, is the assessed in the case. the assessment years under reference are 1957-58 and 1958-59; the relevant previous years being the years ending ..... the account of the donees was a permissible deduction within the meaning of sub section (2) of s. 10 of the income-tax act as representing interest on amounts invested by the donees with the firm.8. the claim of the assessed-firm having been disallowed by the ..... jagit singh, j. 1. the following question of law has been referred by the income-tax appellant tribunal (delhi bench 'b') under provisions of section 66 (1) of the indian income-tax act, 1922 (hereinafter referred to as 'the income-tax act').'whether on the facts and in the circumstances of the case, the interest credited to the amounts of ..... with the corresponding amounts. the firm carried out the instructions and submitted a voucher which the assessed signed. on a reference being made by the income-tax appellate tribunal it was held that the gifts were valid as it was not necessary for the assessed to have drawn the cash amounts from the ..... that on the day of the entry the firm did not have sufficient cash in hand.' an appeal was then filed by the department to the income-tax appellate tribunal. the tribunal allowed the revenue's appeal by holding that the gifts were not valid. it was considered that there was noting besides .....Tag this Judgment!
Court : Delhi
Decided on : May-26-1970
Reported in : AIR1971Delhi49; 81ITR1(Delhi)
..... income-tax v. dalmia jain (jind state) charity trust, delhi. (4)income-tax reference no. 43 of ..... ) this judgment would dispose of the following six income-tax references made under section 66(1) of the indian income-tax act, 1922 (hereinafter referred to as the act):- (1)income-tax reference no. 40 of 1965. the commissioner of income-tax v. jaipur charitable trust, delhi. (2)income-tax refernece nc. 25 of 1965. the commissioner of income-tax v. yogiraj charity trust delhi. (3)income-tax reference no. 42 of 1965. the commissioner of ..... the trust which was spent on religious and charitable purposes within the taxable territories was exempt under section 4(3)(i) of the indian income-tax act, 1922.'(3) reference no. 40 of 1965 relates to assessment years 1954- 1955, 1955-56, 1956-57, 1957-58, 1958-59, 1959-60 and 1960-61. the assessment years covered .....Tag this Judgment!
Court : Delhi
Decided on : Dec-24-1970
Reported in : 41CompCas596(Delhi); 81ITR303(Delhi)
..... it was neither paid nor credited to the assessed. in order that a dividend may be said to be ' credited ' within, the meaning of section 16(2) of the indian income-tax act, 1922, the credit must be in such form that the dividend is unconditionally available to the member concerned.19. it is apparent that, on the facts in that case, the ..... . as a matter of fact the companies had distributed the dividend. it was some of the shareholders who refused to take them in that form. section 16(2) of the income-tax act, 1922, which was repealed subsequently, applied to the year in question. that section was interpreted by their lordships of the supreme court in the case of j. dalmia v. commissioner ..... in which it has been assessed.13. it is true that the assessed itself had included that dividend income in its return for the year in question but there is no estoppel in the income-tax act and the assessed having itself challenged the validity of taxing the dividend during the year of assessment in question, it must be taken that it had resoled from ..... the position which it had wrongly taken while filing the return. quite apart from it, it is incumbent on the income-tax department to find out whether a .....Tag this Judgment!
Court : Delhi
Decided on : Sep-14-1970
Reported in : 80ITR687(Delhi)
..... commissioner on the ground that it was attributable to the assessed's duties as a salaried employee rather than as a professional man and inasmuch as section 7 of the income-tax act, 1922 is exhaustive of the various deductions permissible under the head 'salaries' no such deduction could be allowed by the tribunal.(18) it is true that under sub-section (2 ..... seems to us that on the finding recorded by the tribunal the expenditure incurred by the assessed was allowable as a deduction under section 10(2)(xv) of the indian income tax act, 1922 and was neither an expenditure of capital nature nor personal expenditure. this was the view taken by the madras high court in dr. p. vadamalayan v. commissioner of ..... hardayal hardy, j. (1) the following common question of law arising out of two orders passed by the income-tax appellate tribunal (delhi bench 'c'), has been referred to this court at the instance of the commissioner of income-tax, under section 256(1) of the income-tax act, 1961. 'whetheron the facts and in the circumstances of the case the expenditure of rs. 6,979.00 out ..... in the aforesaid hospital and that the deduction of the expenditure would to that extent be justified against the income computed under section 7 of the indian income-tax act, 1922: but since the assessed was claiming the deduction of the total expenditure from his total income, it did not make any difference even if it is apportioned under two separate heads.(7) the tribunal .....Tag this Judgment!
Court : Delhi
Decided on : May-29-1970
Reported in : 79ITR63(Delhi)
..... ]64itr637(bom) where it was said at page 655 of the report:'a perusal of the opening words of section 271(1) and section 275 of the income-tax act, 1961, would show that the proceedings for imposition of penalty have to be commenced before the completion of assessment proceedings. section 275 provides that no order imposing a penalty under ..... , the onus is upon the department to establish that the assessed is guilty of violation of the provisions contained in section 28 of the income-tax act, 1922, the material portion of which is identical with section 271 of the act of 1961. in such circumstances, it becomes the duty of the department to lead independent evidence to establish these facts and not merely ..... case, the levy, of penalty under section 271(i)(c) of the income-tax act, 1961, is justified ' 2. the assessed is a registered firm dealing in timber. for the assessment year 1960 ..... tribunal (delhi bench b) to this court under section 256(1) of the income-tax act, 1961, which will hereafter be referred to as the act:' 1. whether, on the facts and circumstances of the case, the penalty order is in contravention of the provisions of sections 274 and 275 of the income-tax act, 1961 ? 2. whether, on the facts and in the circumstances of the .....Tag this Judgment!
Court : Delhi
Decided on : Mar-24-1970
Reported in : ILR1970Delhi85
..... it would be a judicial function to grant a sanction envisaged by section 151. the supreme court in s. narayanappa and others v. commissioner of income-tax, bangalore : 63itr219(sc) construed a similar provision of the income-tax act of 1922. they held that the proceedings for assessment or re-assessment under section 34(1)(a) start with the issue of a notice and ..... objections is that the notices served by respondent no. 3 were invalid as there was no valid sanction of the central board of direct taxes as was pre-requisite by virtue of the provisions of section 151 of income-tax act, 1961. it is not necessary to discuss all the points raised by the petitioner by way of the challenge to the validity of ..... , j. dalmia and s. p. jain.(3) briefly stated, the facts leading up to these petitions are that on returns of income being filed for the various assessment years, in accordance with the provisions of indian income-tax act, 1922, the iacome-tax officer, special investigation circle, patna made assessments on the petitioner as an individual for the assessment years 1949-50, 1950-51 and ..... ) all these petitions have been filed by shri r. dalmia challenging the validity and legality of notices served on him under section 148 of the income-tax act, 1961 apart from challenging the validity, legality and constitutionality of sections 147 and 148 of the income-tax act, 1961. petitions bearing nos. 663-664 and 665 of 1965 relate to notices served by respondent no. 3, the .....Tag this Judgment!
Court : Delhi
Decided on : Oct-23-1970
Reported in : 81ITR500(Delhi)
..... above, we hold that a sum of rs. 33,624.00 out of rs. 83,624.00 was rightly assessed under section 12b of the indian income-tax act. the remaining amount of rs. 50,000.00 was not rightly assessed. the question referred to this court is answered accordingly.(19) in the circumstances of ..... arises only on the transfer of a capital asset which has actually cost to the assessed something in money. the actual cost in the context of the income-tax act can only be cost in terms of money. it cannot, it would appear, apply to transfer of capital assets (assuming that the goodwill is a ..... ) following question has been referred to this court under section 66(1) of the indian income-tax act, 1922 (hereinafter referred to as the act) :- 'whetherthe sum of rs. 83,624.00 was rightly assessed under section 12b of the indian income-tax act, 1922?'(2) the case relates to assessment year 1947-48, the previous year for which ..... at the time of transfer was rs. 1,49,037.00. the income-tax authorities treated the excess, viz., l,30,785 as profits under the second proviso to section 10(2)(vii) of the income-tax act and assessed this amount to income-tax. it was contended on behalf of the assessed that since substance of the ..... asset. the question as to whether the transfer of a good-will of a firm would attract section 12b of the act, was considered by the madras high court in the case of commissioner of income-tax, madras v. k. rathnam nada : : 71itr433(mad) . it was held that the amount received on .....Tag this Judgment!
Court : Delhi
Decided on : Apr-28-1970
Reported in : ILR1970Delhi544; 79ITR196(Delhi)
..... tribunal the assessment was upheld. thereupon the assessed moved the tribunal to state a case to the high court under section 66(1) of the indian income-tax act of 1922, which it had done and the following question has been referred: 'whetheron the facts and circumstances of the case the sum of rs. ..... estate. the syndicate's total receipts amounted to 3,000 and the balance remaining after deduction of certain expenses was sought to be taxed under schedule 'd' of the english income-tax act. it was held that the transaction was not a concern in the nature of trade. the learned counsel strongly relied on the observations ..... prakash narain, j. (1) this reference has been made by the income-tax appellate tribunal, (delhi branch 'a') under section 66(1) of the indian income-tax act, 1922. along with the statement of case forming part thereof the tribunal has also attached a copy of the original assessment order ..... case of annual profits and gains and those words again are ruled by the first section of the act which says that when an act indicates that income tax shall be charged for any year at any rate the tax at that rate shall be charged in respect of the profits and gains according to the schedules.' ..... allotted 70,000 ordinary shares of rs. 10 each fully paid up to the assessed. (5) this amount of rs. 7 lacs was taxed by the income-tax officer in the hands of the assessed as profits received from an adventure in the nature of trade. the assessed dissatisfied with the assessment appealed .....Tag this Judgment!