Court : Kolkata
Reported in : (1993)2CALLT348(HC),207ITR881(Cal)
..... at the instance of the revenue, the following questions have been referred by the tribunal for the opinion of this court under section 256 of the income-tax act, 1961: '1. whether, on the facts and in the circumstances of the case, the tribunal was correct in law in holding that the royalty ..... terms of the said agreement executed on may 18, 1972. this provision was made for the period april 1, 1970, to march 31, 1972. the income-tax officer allowed deduction in the sum of rs. 3,45,600 for the period april 1, 1971, to march 31, 1972, corresponding to the assessment ..... in the assessment year 1972-73 2. whether, on the facts and in the circumstances of the case while restoring the issue to the income-tax officer relating to the determination of the chargeable head of the interest accrued on fixed deposits, the tribunal was justified in law in observing that ..... to say, previous year relevant to the assessment year 1971-72. the disallowance made by the income-tax officer was later confirmed on appeal by the commissioner of income-tax (appeals). the assessee filed second appeal to the income-tax appellate tribunal. it was submitted before the tribunal on behalf of the assessee that it was ..... the tribunal was correct in law to hold that the interest accrued on fixed deposits should be assessed under the head 'business income' ?' 2. this reference relates to the income-tax assessment of the assessee-company for the financial year ending on march 31, 1972, being the previous year relevant to the .....Tag this Judgment!
Court : Kolkata
Reported in : 203ITR779(Cal)
ajit kumar sengupta, j.1. this reference under section 256(1) of the income-tax act, 1961, relates to the assessment year 1980-81, on the interpretation of rule 6d(2)(b) of the income-tax rules, 1962.2. the income-tax officer disallowed rs. 21,693 as against rs. 15,978 offered by the assessee ..... 2)(b), incidental conveyance expenses incurred (after reaching the destination) would be taken into consideration while making this disallowance. on appeal, the commissioner of income-tax (appeals) deleted both the disallowances. on further appeal, the tribunal held the deletion of the disallowance of rs. 5,985 on account of travelling ..... question of law has been referred to this court :'whether, on a correct interpretation of rule 6d(2)(b) of the income tax rules, 1962, the tribunal was justified in restricting the disallowance under the said rule to rs. 15,979 instead of rs. 21,963 as ..... calculated by the income-tax officer ?'4. at the hearing, it has been contended by learned counsel appearing for the revenue that the income-tax officer was justified in taking into account conveyance expenses incurred while making the disallowance under ..... down the limits of expenditure beyond which deduction is impermissible. even if equitable considerations may not be relevant in interpreting the provisions of a taxing statute, on the facts of this case, it must be held that the expression 'including hotel expenses or allowances paid in connection with .....Tag this Judgment!
Court : Kolkata
Reported in : 203ITR169(Cal)
..... ajit k. sengupta, j.1. in this reference under section 256(1) of the income-tax act, 1961, the following question of law has been referred to this court for the assessment year 1978-79 :'whether, on the ..... in terms of the settlement arrived at in the partition and administration suit in june, 1977. the assessee-hindu undivided family was never assessed to income-tax prior to the assessment year 1978-79. it is only after the settlement in the partition suit that the karta of the assessee-hindu undivided ..... it was business expenditure incurred by it wholly and exclusively for the purpose of the business, i.e., in order to protect its assets. the income-tax officer, the appellate assistant commissioner and the appellate tribunal rejected the claim of the assessee on the ground that all the assets of the firm ..... entirelitigation expenses claimed by the assessee should be allowed as a deduction in the assessment year under reference.5. against the order of the commissioner of income-tax (appeals), the revenue preferred an appeal before the appellate tribunal. the tribunal held that the partition suit was finally settled during the previous year relevant to ..... group. the mining business at jabalpur and grinding business at liluah were controlled by sri s.s. swaika group. separate returns of income were filed by those two groups. the income-tax officer, while assessing the hindu undivided family, ramdas mahadeo prosad, clubbed these two returns and made one assessment. according to the terms .....Tag this Judgment!
Court : Kolkata
Reported in : 184ITR174(Cal)
..... 1. the following question of law has been referred by the tribunal under section 256(2) of the income-tax act, 1961 : 'whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was right in disallowing the loss of irrecoverable advance of rupees twenty lakhs in computing the assessee' ..... deduction on the ground that it had become irrecoverable on account of the incapacity of saksaria cotton mills limited to repay the loan. 8. the income-tax officer disallowed the claim on the ground that the amount of rs. 20,00,000 represented money advanced to saksaria cotton mills limited for modernisation ..... 2. the facts of the case are set out in detail in the judgment that has been delivered in the assessee's own case being income-tax reference no. 100 of 1977 ; cit v. hashimara industries ltd, : 175itr477(cal) . 3. in this reference, the dispute is about the allowability of a sum of ..... its factory. the said amount was not taken into consideration in computing the income of the assessee in any assessment year. it also did not represent the money lent in the ordinary course of business. the income-tax officer observed that even otherwise the sum was not allowable because it had not ..... only creditor as interest was to be received on the advance and that the advance was made in the normal course of business to get better income from the business. according to him, the advance was only incidental to the assessee's business and the loss was a business loss. 12. .....Tag this Judgment!
Court : Kolkata
Reported in : 202ITR370(Cal)
..... the assessment year 1975-76. the question is whether there was any mistake apparent from the record which could be rectified under section 154 of the income-tax act.2. shortly stated the facts are that the income-tax officer framed the assessment for the assessment year 1975-76, in the case of the assessee company on january 2, 1976. the assessee had leased out ..... and machinery had been fitted under the head 'house property' was not a mistake apparent from the record and as such not capable of rectification under section 154 of the income-tax act, 1961 ?'be it recorded that at the time of hearing no one appeared in support of this reference.8. it is well-settled that section 154 has a very limited ..... application. it enables rectification of a mistake which is apparent from the record. the power under section 154 can be exercised by the income-tax officer to correct obvious errors of law and those mistakes which are apparent from the record. a decision on a debatable point of fact and the failure to apply the ..... businessman's point of view to find out whether the letting was the doing of a business or the exploitation of his property by an owner. for doing so, the income-tax officer would be required to investigate the facts and then apply the law to those facts. in our opinion, the power under section 154 cannot be exercised by the .....Tag this Judgment!
Court : Kolkata
Reported in : 201ITR87(Cal)
ajit k. sengupta, j.1. in this reference under section 256 of the income-tax act, 1961, for the assessment year 1975-76, the following questions, of law have been referred to this court :' 1. whether, on the facts and ..... claimed that the adventitious gain of rs. 24,28,172 which was to be surrendered was an ascertained liability and, therefore, allowable. the inspecting assistant commissioner of income-tax (iac of i. t. ) did not accept the argument of the assessee and he disallowed the liability of the aforesaid amount which was claimed. this was confirmed ..... by the commissioner of income-tax (appeals). the assessee filed a second appeal to the tribunal. the tribunal held that the liability was only in the nature of a contingent liability and it ..... 76, in view of the fact that the assessee offered the entire amount of rs. 68,75,654 for taxation in the assessment year 1978-79, the income-tax officer was not justified in excluding the said amount from the assessment. the assessee has given an undertaking through dr. pal, learned counsel, that they will not ..... object to the inclusion of the said amount of rs. 24,28,172 in the assessment for the assessment year 1978-79, and the income-tax officer may take appropriate steps in this regard.12. for the reasons aforesaid, we answer the question in this reference in the negative, but in view of .....Tag this Judgment!
Court : Kolkata
Reported in : 205ITR88(Cal)
..... shyamal kumar sen, j.1. on an application of the assessee under section 256(1) of the income-tax act, 1961, the tribunal has referred to this court the following question :' 1. whether, on the facts and in the circumstances of the case, ..... account, the tribunal held that the expenditure incurred by the assessee referable to the assessee's holding on to those assets was allowable and directed the income-tax officer to consider on the merits and disallow only such part of the expenditure which was not referable to the holding of the assets. with regard to ..... of account relevant to the assessment year on account of unfavourable trade conditions and claimed a net loss of rs. 14,059 in the assessment. the income-tax officer allowed a loss of rs. 13,559 on this account. the appellate assistant commissioner and the tribunal held that the arecanut business was not carried ..... , it cannot be said that the assessee was in a position to carry on the business.on the said facts, the finding given by the commissioner of income-tax (appeals) is correct.'6. it has been submitted by mr. dutt, learned advocate for the assessee, that the business of the assessee remained under suspension ..... inter alia, the following order :'6. the claim of the assessee on the facts and circumstances of the case has rightly been disallowed by the commissioner of income-tax (appeals). the assessee was carrying on board mill business directly up to the assessment year 1971-72 and thereafter the mill was given on lease for nine .....Tag this Judgment!
Court : Kolkata
Reported in : 115ITR205(Cal)
..... sankar prasad mitra, c.j. 1. this is a reference under section 256(1) of the income-tax act, 1961. the assessee is a sterling company. it has been assessed to income-tax as a non-resident. the assessment relates to the assessment years 1961-62 and 1962-63.2. the assessee had a controlling interest in m/s. guest keen williams ltd. ..... required for this purpose and pointed out that the assessee had discharged the entire overdraft by the sale of the rights shares which it had taken. from these facts, the income-tax officer concluded that the assessee had not only the intention of making a business profit, but actually took steps in that direction by disposal of l/4th of its rights ..... the accounting year 1960 came to rs. 69,518. the surplus in 1961 came to rs. 32,12,684.12. the income-tax officer brought these two amounts to tax on the basis that the assessee was a dealer in shares. the income-tax officer's view was that the assessee did not have any intention of investing rupees four crores in the rights issue ..... . our attention has been drawn to the supreme court decisions in g. venkataswami naidu & co. v. commissioner of income-tax 0065/1958 : 35itr594(sc) , commissioner of income-tax v. sutlej cotton mills supply agency ltd. : 100itr706(sc) and dalmia cement ltd. v. commissioner of income-tax : 105itr633(sc) . we have also been taken through the judgment of the court of appeal in eames .....Tag this Judgment!
Court : Kolkata
Reported in : 201ITR747(Cal)
..... the assessment year 1974-75, the tribunal on an identical set of facts upheld the view of the commissioner of income-tax (appeals) that, in such circumstances, the amount included as undisclosed income under section 68 of the act should be treated as business income. the principles laid down by this court in daulatram rawatmull's case : 64itr593(cal) will apply to the ..... in this reference under section 256(2) of the income-tax act, 1961, for the assessment year 1974-75, the following question of law has been referred to this court :' whether, on the facts and in the circumstances of the case and having regard to the fact that the assessee-company claimed before theincome-tax officer that the unexplained deposits represented short-term loans ..... outgoing of cash from january 25, 1973, to december 31, 1973, leaving a credit balance of rs. 51,717.67 which was carried forward. the assessee, according to the income-tax officer, did not comply with his requisition for proving the nature and source of the cash credit account, though, however, it was lastly claimed to have been the amount of ..... the details and payments in that account from january 1, 1973, to december 31, 1973. the income-tax officer found discrepancies in the accounts while tallying the parties' statements with the assessee's accounts. the said party was not an income-tax assessee and, in those circumstances, the income-tax officer held that the party had no credit-worthiness and, secondly, the assessee failed to prove .....Tag this Judgment!
Court : Kolkata
Reported in : 180ITR175(Cal)
..... sales were correctly recorded by the assessee in its books of account. invoking the explanation under section 271(1)(c) of the income-tax act, 1961, the inspecting assistant commissioner held that the assessee-company failed to discharge the burden of proving that the difference between the returned ..... bengal-ii, the following question of law has been referred to this court under section 256(2) of the income-tax act, 1961, for the assessment year 1964-65 :'whether, on the facts and in the circumstances of the case, the tribunal was justified ..... of the penalty in this case. if, in the fresh assessment to be made in terms of the directions of the commissioner of income-tax (appeals), the income-tax officer detects any concealment of income or particulars thereof, he will be at liberty to proceed in accordance with law.7. for the reasons aforesaid, we decline to ..... ,000 in the trading account towards possible suppression of sales. it was only on estimate that the income-tax officer made the addition towards possible suppression of sales and disallowance towards possible inflation of purchases. we do not think that any inference of fraud or ..... of the penalty order, it is abundantly clear that the inspecting assistant commissioner levied the penalty merely on the basis of the reasons given by the income-tax officer in the assessment order for disallowing rs. 1,50,000 from the purchase account towards possible inflation of purchases and for adding rs. 1,00 .....Tag this Judgment!