Court : Delhi
Decided on : Jul-16-2009
Reported in : 186TAXMAN14(Delhi)
..... ) that he was unable to sustain the rejection of books of account by invoking the provision of section 145(3) of the income-tax act, 1961. in the light of the discussions made above, we are therefore unable to persuade ourselves to sustain disallowance of business promotion ..... gifts of minor nature were, given to various persons, which included some officials also. this would nonetheless remain as sale promotion gifts and such an act was an act of business expediency on the part of the assessee. these are all finding of facts recorded by the tribunal. according to us, no substantial question ..... ,763 in all. the assessing officer disallowed 80 per cent of the expenses. when the matter was taken up by the assessee in appeal before the cit(a), the cit(a) sustained the disallowance of rs. 7, 49, 435 being 40 per cent of rs. 18,73,588 and rs. 11,66,166 being ..... various outlets of csd canteen, sale-cum-service melas were organized, and some of the items were distributed free to the participants of the mela. the cit(a) has also give a finding that the assessee produced certain evidences like certificate from the canteen officers stating therein that the gifts were received by ..... consolidated arguments covering all these appeals. the assessee is a partnership firm and is engaged in the business of trading. main business activities of the assessee is to act a commission agent of m/s. marico industries ltd., who are the manufacturers of saffola oil edible oil and non-edible oil (i.e., hair & .....Tag this Judgment!
Court : Delhi
Decided on : Sep-24-2009
Reported in : 186TAXMAN415(Delhi)
..... nct of delhi. it is thus a state public sector corporation. it filed its return for the assessment year 1997-98, which was assessed under section 143(3) of the income-tax act. the assessment order was passed on 11-2-2000 raising a demand of rs. 72,00,000. the petitioner filed an appeal thereagainst to the ..... -2004. against that order, the petitioner filed further appeal before the income-tax appellate tribunal (hereinafter referred to as 'the tribunal') - vide order dated 31-7-2008, the tribunal refused to entertain ..... cit(a), which was allowed partially. however, thereafter on 6-8-2002, notice under section 148 of the act was issued to the petitioner for reopening the aforesaid assessment and re-assessment order was passed on 26-3-2004. at the ..... same time, proceedings under section 271(1)(c) were also initiated. the petitioner preferred an appeal before the cit(a), which was partially allowed vide orders dated 25-10 .....Tag this Judgment!
Court : Delhi
Decided on : Jul-08-2009
Reported in : 187TAXMAN53(Delhi)
..... . lovely exports (p.) ltd.  216 ctr 195. the question before the hon'ble court was, can the amount of share application money be regarded as undisclosed income under section 68 of the income-tax act, 1961? it was pointed out that the court did not find any merit in the special leave petition for the simple reason that if the share application money ..... /s. diamond protein ltd. on 10-10-2002 with the assessee remained unexplained under section 68 of the act and added it to the income tax of the assessee. against this order of assessment, assessee preferred appeal before the cit (appeals) which was allowed by the cit (appeals) thereby deleting the addition made by the assessing officer. this order has been affirmed by the itat ..... in appeal preferred by the income-tax officer. it was argued before the itat that 111 deposits of rs. 19,000 each in cash were made in the bank account of m/s. diamond protein ltd. and ..... assessing officer, then, the department was free to proceed to reopen their individual assessments in accordance with law. thus, the conclusion was that the amount cannot be regarded as undisclosed income of the recipient assessee company. he was not able to distinguish the facts of that case. respectively following this judgment, it is held that the learned .....Tag this Judgment!
Court : Delhi
Decided on : Jan-23-2009
Reported in : (2009)222CTR(Del)526; 177TAXMAN434(Delhi)
rajiv shakdher, j.1. this is an appeal under section 260a of the income tax act, 1961 (hereinafter referred to in short as the 'act') against the judgment dated 05.10.2007 passed by the income tax appellate tribunal (hereinafter referred to in short as the 'tribunal') in ita no. 3224/del/2005 in respect of the assessment year 1996-97. before the tribunal the revenue as ..... well as the assessee, filed an appeal against the order of the commissioner of income tax (appeals) dated 26 ..... .04.2005 [hereinafter referred to in short as the 'cit(a)'].2. the revenue being aggrieved has preferred the present appeal and proposed the following questions of law for consideration of this court:(a ..... appeal pertaining to the assessment year 1996-97 without adverting to this aspect of the matter. this propelled the assessee to file an application under section 154 of the act before the cit(a), wherein he averred that failure on the part of the assessing officer to deal with the stand taken by him with regard to depreciation would constitute a mistake .....Tag this Judgment!
Court : Delhi
Decided on : Sep-14-2009
Reported in : 186TAXMAN205(Delhi)
..... in the present appeal under section 260a of the income tax act, 1961 (hereinafter referred to as the act) is whether the appellant-assessee is entitled to additional depreciation of 15% (in addition to the depreciation of 25% permissible under section 32(1) of the act). in order to get the benefit of additional ..... authorities below that the machinery is old/used machinery and the same cannot be interfered by this court under section 260a of the act as undoubtedly the income tax appellate tribunal is the final fact finding authority. in view of the finding of fact that machines in question are old machines, ..... claim of additional depreciation of rs. 9,74,392/- under section 32(1) of the act.4. from the aforesaid finding of the commissioner of income tax (appeals) which has also been accepted by the income tax appellate tribunal, it is clear that the machines were old and used machines. in fact, ..... shown as old cannot be interpreted to take away the benefit of additional depreciation.3. in view of the abovesaid position, the commissioner of income tax (appeals) has accordingly held as under:4.3.4 the next claim of the appellant that reconditioned machinery which had incorporated used and a ..... depreciation, it is necessary for the assessee to show that he has installed in his unit a new machinery as per section 32(1)(iia). all the three authorities below, namely, the assessing officer, the commissioner of income tax (appeals) and the income tax .....Tag this Judgment!
Court : Delhi
Decided on : Sep-22-2009
Reported in : 321ITR340(Delhi); 184TAXMAN375(Delhi)
..... present appeal under section 260-a of the income tax act, 1961 has been filed by the appellant company against the order dated 16.1.2009 passed by the income tax appellate tribunal for the assessment year 2001-2002 whereby the tribunal has held that for the purpose of computing 'book profit' under section 115jb of the act, the amount withdrawn from the revaluation reserve and ..... clause (i) of explanation 1 reads as under:115jb. special provision for payment of tax by certain companies(1) notwithstanding anything contained in any other provision of this act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this act in respect of any previous year relevant to the assessment year commencing on or ..... after the 1st day of april, 2001, is less than seven and one-half per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and ..... on such total income shall be the amount of income -tax at the rate of seven and one-half per cent.(2) every assessee, being a company, shall; for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of parts ii and iii of schedule vi of the companies act; 1956 (1 .....Tag this Judgment!
Court : Delhi
Decided on : Sep-22-2009
Reported in : (2010)229CTR(Del)250; 318ITR476(Delhi); 184TAXMAN483(Delhi)
..... legislative intention by reference to supreme court judgment in the case of navneet lal c. jhaveri v. k.k. sea, aac of income tax in : 56 itr 198 where a similar provision of the income tax act, 1922 i.e. section 2(6a)(e) was in issue by reproducing the relevant para in navneet lal's case as under ..... valmiki j. mehta, j.1. this appeal under section 260a of the income tax act, 1961 (hereinafter referred to as the act) is preferred by the revenue against the order dated 9.5.2008 of the income tax appellate tribunal (hereinafter referred to as the i.t.a.t.) whereby the tribunal has held that the payment of an advance ..... for a commercial purpose to the assessee company by its sister concern m/s pee empro exports pvt. ltd. is not deemed dividend under section 2(22)(e) of the act.2. ..... kept in mind, it is clear that sub-clause (e) of section 2(22) of the act, which is pari material with clause (e) of section 2(6a) of the 1922 act, plainly seeks to bring within the tax net accumulated profits which are distributed by closely held companies to its shareholders in the form of loans. ..... the speech of the then finance minister would show that the purpose of insertion of clause (e) to section 2(6a) in the 1922 act was to bring within the tax net monies paid by closely held companies to their principal shareholders in the guise of loans and advances to avoid payment of .....Tag this Judgment!
Court : Delhi
Decided on : Nov-11-2009
Reported in : 185TAXMAN424(Delhi)
..... the central government to enter into an agreement with the government of any country outside india for the granting of relief in respect of income on which, both income tax (including supertax) under the act and income tax in that country, under the income tax act and the corresponding law in force in that country, had been paid. the central government could make such provisions as necessary for implementing ..... the agreement by notification in the official gazette. when the income tax act, 1961 was introduced, section 90 contained therein initially was a reproduction of section 49a of the 1922 act. the finance act, 1972 (act 16 of 1972) modified section 90 and brought it into force with effect from 1-4-1972. the object and ..... grant exemption therefrom vests absolutely in parliament and no other body, howsoever high, can exercise such power. once parliament has enacted the income tax act, taxes must be levied and collected in accordance therewith and no person has the power to grant any exemption therefrom. the treaty-making power under article 73 is confined only to ..... situation is the same in india; that unless there is a specific exemption granted by parliament, it is not open for the central government to grant any exemption from the tax payable under the income tax act.31. in our view, the contention is wholly misconceived. section 90, as we have already noticed (including its precursor under the 1922 .....Tag this Judgment!
Court : Delhi
Decided on : Oct-15-2009
Reported in : 187TAXMAN111(Delhi)
..... before the previous year, the actual cost to the assessee less all depreciation actually allowed to him under this act, or under the indian income-tax act, 1922(11 of 1922), or any act repealed by that act, or under any executive orders issued when the indian income-tax act, 1986 (2 of 1886), was in force;[provided that in determining the written down value in respect of buildings ..... section 32, 'depreciation actually allowed' shall not include depreciation allowed under sub-clauses (a), (b) and (c) of clause (vi) of sub-section (2) of section 10 of the indian income-tax act, 1922 (11 of 1922), where such depreciation was not deductible in determining the written down value for the purposes of the said clause (vi);]c) in the case of any ..... jurisdiction to examine a question of law which arose from such facts. the relevant portion of the judgment laying down this principle is as under:under section 254 of the income-tax act, the appellate tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. the power of the tribunal ..... amount to ntpc.6. the assessing officer (ao) disallowed the claim on the ground that the same was not covered under the provision of section 82 of the income tax act (hereinafter referred to as 'the act'). according to the ao, the money was contributed towards capital expenditure, incurred by the ntpc in laying infrastructure facilities for coal handling supply. by doing so, the .....Tag this Judgment!
Court : Delhi
Decided on : Jul-21-2009
Reported in : 186TAXMAN155(Delhi)
..... , submissions of the assessee was that the claim made by the assessee, treating the aforesaid payment as revenue expenses under section 37(1) of the income-tax act, was a bona fide move. two opinions were possible and in case it was held by the assessing officer that the claim is allowable under section ..... the assessing officer, thus, considered that such an amount would be covered by the provisions of section 35dda and not under section 37 of the income-tax act as claimed by the assessee.3. as per the provisions of section 35dda which came into effect from 1-4-2001, the deduction is allowed at ..... ground of commercial expediency and thus expenditure so incurred would be allowable as an expenditure under section 37(1) of the income-tax act. this also demonstrates that in the income-tax return filed by the assessee when the assessee is claiming expenditure because of payment made under section 18(1) of the industrial ..... 122 taxman 620 (delhi), no more remains valid in view of legislative amendment in section 271 by the finance act, 2008. by this amendment, sub-section (1b) is inserted to section 271 of the income-tax act retrospectively with effect from 1 -4-1989 as per which it is not necessary for the assessing officer to record ..... assessment year 2001-02 declaring a loss of rs. 44,37,666. the return was processed under section 143(1)(a) of the income-tax act. subsequently, the case was taken up for scrutiny and notices under section 143(2) were issued on 29-10-2002 by the assessing .....Tag this Judgment!