Court : Kolkata
Reported in : 180ITR221(Cal)
..... . sengupta, j. 1. at the instance of the commissioner, west bengal-iv, the following question of law has been referred to this court under section 256(2) of the income-tax act, 1961 ('the act'), for the assessment year 1967-68 :'whether, on the facts and in the circumstances of the case, thetribunal was justified in law in holding that the assessee is entitled ..... in the books of ashutosh cold storage and the assessee was found to have claimed it in part ii of the said return to have been credited out of past taxed income. the income-tax officer rejected this contention on the ground that there was no evidence and that the assessee ever maintained any personal books of account. but as the latter himself had ..... intangible addition of rs. 50,000 in the assessment of the said firm. this was not acceptable to the income-tax officer inasmuch as the said credit was not given by the firm in the assessee's capital account nor did he maintain any books for such account. consequently, the sum ..... partner of five firms, namely, biswanath dutta, biswanath dutta and co., biswanath cold storage, kashinath cold storage and ashutosh cold storage.4. in the course of the assessment proceedings, the income-tax officer noticed in the assessee's personal account with biswanath cold storage a credit of rs. 11,713. this sum was claimed to represent the assessee's share in the .....Tag this Judgment!
Court : Kolkata
Reported in : 205ITR487(Cal)
..... after defraying expenses were not held in trust for charitable purposes and were not exempt from taxation under section 4(3)(i) of the indian income-tax act, 1922 ; and (d) the amounts spent for performing sraddha and other ceremonies for the spiritual benefit of the testator, etc., were not ..... kumar sen, j.1. pursuant to the direction of this court made in an application under section 256(2) of the income-tax act, 1961, the tribunal has referred the following questions :'(1) whether, on the facts and in the circumstances of the case ..... and religious purposes. on a consideration of the materials on record and facts and circumstances of the case, the tribunal maintained the order of the income-tax officer partly allowing the expenses incurred on motor car upkeep expenses and partly allowing the expenses incurred on trustees' remuneration.10. in our view, ..... family deity and, thereafter, spend amounts on charitable and public purposes and, lastly, to pay the remuneration, allowances and private donations. the income-tax officer determined the income of the trust estate at rs. 2,91,625 and deducted therefrom the amounts spent on charitable objects such as feeding of the poor ..... pay remuneration and meet expenses of shebaits and allowances to members of the family, upkeepof horses, carriages, repairs, etc., out of the income. the commissioner of income-tax (appeals) held that the testator gave away the estate to the deity and created an absolute debutter thereby. the assessee was not satisfied .....Tag this Judgment!
Court : Kolkata
Reported in : 207ITR813(Cal)
..... , the appellatetribunal, held that the expenditure was only of a revenue nature and that the assessee was entitled to deduction under section 37 of the income-tax act, 1961.18. there, it was held that the agreement between the assessee and the agent-company fixed a period of ten years during which the ..... sengupta, j.1. in this reference, the following question has been referred to us by the tribunal under section 256(1) of the income-tax act, 1961 :'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the assessee is entitled ..... of rs. 4,408 was debited in the previous year relevant to the assessment year 1962-63, the assessee claimed deduction of this amount. the income-tax officer held that since the information and knowledge received by the assessee were of an enduring nature, the expenses were capital expenditure and he, accordingly, ..... to others any information derived from technical or other data to be received from the collaborator under the said agreement. the argument of the income-tax department that the expenditure could be on capital account where the indian company continues to get the benefit of technical know-how in the sense ..... said agreement but also after the expiry or termination of the agreement. the disallowance made by the assessing officer was upheld by the commissioner of income-tax (appeals). on the assessee's appeal, the tribunal held that the payment under the agreement with the said foreign company of the amount of .....Tag this Judgment!
Court : Kolkata
Reported in : AIR1965Cal535,69CWN423,57ITR194(Cal)
..... it is for the assessee to conduct his business, and in his wisdom or otherwise to fix the remuneration to his staff. the income-tax act does not clothe the taxing authorities with any power or jurisdiction to determine the reasonableness of the amount so fixed and paid by the assessee. the only test for ..... masud, j. 1. this reference under section 66(2) of the income-tax act 1922 relates to the assessment year 1954-55, the corresponding previous year of which ended on the 30th june 1953. the facts are briefly ..... is not paid or because the expenditure is not solely and exclusively for the business, and not on the ground that in the opinion of the income-tax officer or other taxing authorities the remuneration is 'unreasonably' high either because the employee does not in the opinion of the authorities, deserve so much, or because the ..... s decision to increase the director's remuneration in any case we cannot agree. the company may increase the director's remuneration without cogent reasons, but the income-tax authorities are not bound to accept the increase. similarly the revenue authorities cannot question the quantum of the remuneration or honorarium of the managing director in cases ..... provisions of section 87(3) of the indian companies act.' 3. in the relevant previous year a sum of rs. 6,000/- was paid to shri dayaram poddar, the managing director as his office allowance besides a sum of rs. 4,078/- as commission. the income-tax officer allowed only rs. 200/-as office allowance per .....Tag this Judgment!
Court : Kolkata
Reported in : 200ITR596(Cal)
..... ajit k. sengupta, j.1. in this reference at the instance of the commissioner of income-tax under section 256(2) of the income-tax act, 1961, the following question of law has been referred to this court for the assessment year 1977-78 :'whether, on the facts ..... held the same to be excessive. accordingly, he treated the above sum as a revenue receipt.3. the assessee took up the matter before the commissioner of income-tax (appeals) contending that, on termination of the managing agency agreement, the right of occupation by the tenant ceased to exist and, therefore, the leave and ..... for giving the third floorof premises no. 7, red cross place, on leave and licence basis to ramnagar cane and sugar company ltd. according to the income-tax officer, it was not a lease on long-term basis nor was the agreement registered, it was merely an agreement of leave and licence which was for ..... 55,200 as advance payment of rent. it was observed by the supreme court that prima facie, premium or salami was not income and it would be for the income-tax authorities to show that facts existed whichwould make it a revenue receipt. the sub-lease did not contain any condition or stipulation from ..... and in the circumstances of the case, the tribunal was justified in holding that the sum of rs. 2 (two) lakhs received by the assessee was a capital receipt and not chargeable to tax .....Tag this Judgment!
Court : Kolkata
Reported in : 207ITR979(Cal)
assessment--procedure--loss return--assessing officer, without examining audited accounts and past assessment records determining income at `nil' unjustified.facts :the assessee-company filed a loss return along with audited profit and loss a/c, balance sheet and other statements. the ito without considering the audited financial statements and other statements rejected the loss return filed by the assessee and computed the total income at `nil'.held :the cit(a) himself looked into the audited accounts as well as the past assessment records of the assessee-company and, thereafter, computed the total income of the assessee for the asst. yr. 1982-83. the procedure adopted by the cit(a) was fully justified. in fact, the ito should have himself followed the same procedure which the cit(a) did. the ito was not justified in rejecting the loss return filed by the assessee-company in toto without examining the audited profit and loss account, balance sheet and other statements accompanying the return as well as the past assessment records of the assessee-company.conclusion :ignoring audited financial statements and other documents accompanying the return and rejecting the `loss return' and determining `nil' income is unjustified. application :also to current assessment years.income tax act 1961 s.144Tag this Judgment!
Court : Kolkata
Reported in : 113ITR476(Cal)
..... is at the instance of the assessee, m/s. dulichand omprakash, under section 256(2) of the income-tax act, 1961. the question called for from the tribunal is :'whether the conclusion arrived at by the tribunal that the sum of rs. 87,000 was the income of the assessee from undisclosed sources was perverse in the sense that no reasonable man would come ..... aggrieved, the assessee went up in appeal before the appellate assistant commissioner against the assessments in both the said assessment years. the appellate assistant commissioner upheld the decision of the income-tax officer in adding back the amount credited in the name of tarachand surana. he also noted that the cash position of the assessee did not justify the alleged loans from ..... tarachand surana. there was a further appeal to the income-tax appellate tribunal for both the assessment years by the assessee. in the meantime, penalty proceedings had been initiated and tarachand surana had been examined by the inspecting assistant commissioner and ..... not been retracted by his subsequent evidence. the tribunal concluded that the genuineness of the loans from tarachand surana to the assessee was not established. the addition made by the income-tax officer was accordingly upheld by the tribunal.5. mr. r.n. bajoria, learned counsel for the assessee, has contended before us that on the evidence adduced by tarachand surana, .....Tag this Judgment!
Court : Kolkata
Reported in : (1989)80CTR(Cal)140,179ITR122(Cal)
..... , in the opinion of the income-tax officer, clearly not explainable. the income-tax officer, accordingly, made an addition of rs. 37,048 to the total income of the assessee under section 40a(3) of the income-tax act, 1961.4. the assessee appealed to the appellate assistant commissioner of income-tax challenging the addition of rs. 37 ..... . the facts leading to this reference are that the assessee, an individual, is a wholesale dealer in jaggery. before the income-tax officer, it was submitted on behalf of the assessee that he started a ..... under section 256(2) of the income-tax act, 1961, for the assessment year 1975-76 :'whether, on the facts and in the circumstances of the case and on a proper interpretation of rule 6dd of the income-tax rules, 1962, read with the central board of direct taxes circular no. 220 dated may 31, ..... 1977 (see  108 itr 8), the tribunal was justified in upholding the disallowance of rs. 22,098 in terms of sub-section (3) of section 40a of the income-tax act, 1961 ?'2 ..... the payee, having regard to the nature of the transaction and the necessity for expeditious settlement thereof and also furnishes evidence to the satisfaction of the income-tax officer as to the genuineness of the payment and the identity of the payee.' 10. the board, therefore, issued a circular on may 31 .....Tag this Judgment!
Court : Kolkata
Reported in : 203ITR511(Cal)
..... respect of the said litigation was a capital expenditure and not revenue expenditure.6. the assessee thereafter made an application under section 256(1) of the income-tax act, 1961, whereupon the aforesaid questions were referred to this court.7. it has been submitted on behalf of the assessee that the amount of rs ..... shyamal kumar sen, j.1. in this application under section 256(1) of the income-tax act, 1961, the following questions have been referred to this court for determination :'(1) whether, on the facts and in the circumstances ..... for the said tea estate had not been executed in favour of the assessee and disputes between the parties were pending adjudication in court. the income-tax officer held that the legal expenses incurred in connection with the acquisition of any investment were capital expenditure. he also held that an amount of ..... that it was not paid for any legitimate business needs of the assessee-company. on appeal, the appellate assistant commissioner affirmed the order of the income-tax officer. on further appeal, the tribunal held that the assessee was and continued to be the tenant of the premises and the tenancy rights which ..... expenditure incurred wholly and exclusively for the purpose of his business and, therefore, allowable as a deduction for the purpose of computing the profits for income-tax purposes. there is a distinction between expenditure incurred for the acquisition of a capital asset as well as expenditure incurred for the substantial expansion or .....Tag this Judgment!
Court : Kolkata
Reported in : 206ITR306(Cal)
..... ajit k. sengupta, j. 1. in this reference under section 256(2) of the income-tax act, 1961, for the assessment year 1982-83, the following question of law has been referred to this court :'whether, on the facts and ..... tribunal disposed of the appeal oblivious of this particular aspect. the tribunal was quite conscious of this particular position, yet found that the estimate that the income-tax officer has made cannot be said to have been guided by such a comparable case. the assessing officer mentioned this particular case merely in passing but, ..... fact of the material used in the assessment, for the ends of justice, needs introspection. the action of the income-tax officer is violative of the legal requirement as contained in section 142(3) of the act if indeed the comparable instance guided the estimate of profit. the said sub-section reads as follows :' (3) ..... in appeal before the tribunal against the said decision of the deputy commissioner (appeals). the tribunal has laid stress on the comparable case cited by the income-tax officer in his order showing a higher rate of gross profit. it was argued before the tribunal that the comparable case cited was not shown or ..... the deputy commissioner (appeals) who deleted the addition by observing as follows :'i have considered the contention of the appellant and the reasons recorded by the income-tax officer. on the facts and circumstances of the case, it will be fair and reasonable to delete the addition of rs. 31,056.'4. the department .....Tag this Judgment!