Court : Kolkata
Decided on : Apr-08-1949
Reported in : AIR1952Cal40,19ITR571(Cal)
..... .', 55 cal 1057. in that case it was held that a company owning house property and carrying on the activities of letting such houses is liable to income-tax under section 9 of the indian income-tax act, 1922, in the same way as a private individual owning such property. in that case the facts were that the assessee was a registered company and its ..... or manufacture.'it was essential that business should be defined in the indian income-tax act because of the mode of taxation adopted in section 6 of the act. section 6 of the indian income-tax act provides:'save as otherwise provided by this act, the following heads of income profits and gains, shall be chargeable to income-tax in the manner hereinafter appearing, namely:(i) salaries.(ii) interest on securities ..... of a lease-hold interest in property and the rent and royalties payable to them must be regarded as income from other sources under section 6 (v) of the indian. income-tax act. i cannot see that it would make any difference in india for income-tax purposes even if the lessors of the sublease were a company. in any event the assessees are not a ..... or property cannot amount to a business and that must be so by reason of section 6 of the income-tax act. section 2 (5) of the excess profits tax act makes the holding of securities or of property business merely for the purposes of the act in the case of companies or incorporated societies. the mere holding of property or securities cannot in my view .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-02-1949
Reported in : AIR1952Cal145,18ITR403(Cal)
..... & wrote this sum off ass a bad debt.3. the assessees claim that this sum was an allowable deduction in computing the assessees' income under section 10, income-tax act. but the income-tax officer as well as the appellate assistant commissioner did not allow the same as an allowable deduction. on appeal, however, the appellate tribunal ..... no question that it was a sum of money expended by the assessees in order to earn profits & would come within section 10 (2) (xv), indian income-tax act & would be an allowable deduction.6. the facts are not stated as clearly as they might be in the statement of case, but i think, it ..... of rs. 10,000/- paid by the assessee to madras publishing house, or any part thereof was an allowable deduction in computing the assessee's income under section 10 income-tax act.'the assessees were messrs. globe theatres ltd., a public joint stock company, which carry on business as exhibitors of cinema pictures. for the purpose ..... harries, c.j.1. this is a reference made by the appellate tribunal, bombay bench, under section 66, income-tax act, stating a case for the opinion of this court upon the following question:'whether, on the facts & circumstances of the case, the ..... with law. application was made to the appellate tribunal to state a case upon the question which i have indicated, & the case was stated.4. the income-tax authorities, who applied to have the case stated, have appeared through dr gupta who has contended that this payment of rs. 10,000/- to the madras .....Tag this Judgment!
Court : Kolkata
Decided on : Feb-22-1949
Reported in : AIR1952Cal414
..... the amount in question was not an item of capital expenditure but was a revenue expenditure allowable as an admissible deduction under section 10 (2) (xii), income-tax act, as it stood before its amendment in 1946. the question raised must therefore be answered in the affirmative. the assessee respondent is entitled to the cost ..... -innes. wholly & exclusively for the purposes of the business was a revenue expenditure so as to-be allowable as an admissible deduction under section 10 (2) (xii), income tax act (as it stood, before its amendment in 1946).'2. messrs. piggot chapman & co. is a firm of exchange brokers mr. mitchell-innes & mr. danbeny who ..... mitchell innes should be considered as a revenue expenditure or a capital one. whether the deduction allowed under section 10 (2) (xii), income tax act, would be allowed would depend on the answer as to whether such payment is an item of revenue . expenditure or a capital one.7. section 10 ..... , income tax act indicates the method for calculating the profits or gains of a business. sub section (2) of that section recites a number of allowances of ..... r.p. mookerjee, j.1. this is a reference under section. 66 (1), income tax act. on an application, by the commissioner of income tax calcutta, the following question of law has been formulated by the tribunal for answer by this court.'whether in the circumstances of the .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-12-1949
Reported in : AIR1951Cal326,18ITR762(Cal)
..... the profit which it made in the business of managing and developing its properties. by reason of sections 6 and 9, income-tax act, the income of this company assessed to tax was a notional income and not its actual income. admittedly it was assessed under section 9 of the act and rightly so and it is quite clear from the provisions of section 9, that the assessable ..... .)), decided on 6-9-1948. in that case the question submitted by the tribunal was whether in view of the fact that the entire income of the assessee was derived from property assessable under section 9, income-tax act, the provisions of section 23a were at all applicable to the case. the bench held that section 23a was applicable to an assessment of a ..... 23a were properly invoked ?'2. the assessee is a private limited company whose main source of income is income from property assessable under section 9, income-tax act. its only other source of income is interest on deposits, but such income is only slightly over 1 per cent, of the assessable income.3. the relevant accounting years for the two assessments were the calendar years 1938 and 1939 ..... profits shown in the profit and loss account was the true profit earned by the company in the years in question.6. the income-tax department, however, contended that the company had not complied with the provisions of section 23a (1), income-tax act, as they had not distributed by way of dividends amongst their share-holders at least sixty per cent, of the assessable .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-09-1949
Reported in : AIR1950Cal270,18ITR635(Cal)
..... performance of his duties.13. the next argument put forward by mr. mitra was that the expenditure came within section 10 (2) (xv), income-tax act. section 10 deals with the tax payable by an assessee in respect of profits and gains of business, profession or vocation. clause (2) specifies permissible allowances or deductions. sub ..... intends to charge what reaches the individual as income. it was pointed out by dr. gupta that in jagadish chandra v. dhanpati singh : [ ..... company, contended that the remuneration received by the applicant was in the nature of salary or commission within section 7, income-tax act. in this court, mr. mitra put forward the same contention and relied on the first proviso to section 7. section 7 states that ..... income. the privy council observed:'it is not a case of the application by the appellant of part of his income in a particular way; it is rather the allocation of a sum out of his revenue before it becomes income in his hands.'really in charging the income of an individual the income-tax act ..... to this agreement. 19,200 was payable in five annual instalments. the company paid the first instalment of 5200 and sought to deduct it for income tax purposes from the profits in the year of payment as being money wholly and exclusively laid out for the purposes of the business. the commissioners .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-31-1949
Reported in : AIR1950Cal315,18ITR653(Cal)
..... bearing on the subject under rule 2.'any firm constituted under an instrument of partnership specifying the individual shares of the partners may under the provisions of section 26a, income-tax act register with the income-tax officer the particulars contained in the said instrument on application made in this behalf.' 7. such application shall be signed by all the partners.8. in the ..... the facts and in the circumstances of this case the tribunal was right in holding that the partnership firm of dudwala & co. should be registered under section 26a of the income-tax act.' 2. the facts shortly are as follows. the partners of the firm were rai bahadur rameshwar nathany, representing the mitakshara joint family under the name and style of baldeodas ..... the application has been properly made we shall grant a certificate stating that the instrument of partnership has been registered with him under section 26a, income-tax act.10. the application under section 26a was refused by the income-tax officer on the ground that (as?) the joint family had come to an end it could not form a partnership with a stranger as ..... be entitled thereto according to the shares mentioned in clause 3 thereof.'5. an application was made in this case under section 26a, income-tax act. that section is in the following terms.(1) application may be made to the income-tax officer on behalf of any firm, constituted under an instrument of partnership, specifying the individual shares of the partners, for registration for .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-05-1949
Reported in : AIR1950Cal551,18ITR112(Cal)
..... down good law and he has put forward a number of reasons why we should not follow that decision.16. the marginal note of section 42, income-tax act, still read 'non-residents' after the amendment in 1939 and some weight appears to have been attached to that fact by the learned judges of ..... pure question of fact and refused to state a case on that point. the tribunal, however, was of opinion that the question whether section 42, income-tax act, applied to residents, was an important question of law and therefore stated the question which i have set out.6. the only point this court has ..... commissioner, but the appeal was dismissed and a further appeal was preferred to the tribunal. before the tribunal it was argued that section 42(3), income-tax act, had no application to the case as that section applied only to 'nonresidents,' further it was contended that if the section did apply the proportion ..... the appellate tribunal, however dismissed the appeal holding that section 42(3) had been correctly applied by the income-tax authorities. the tribunal were asked to state a case on two points. first, whether section 42, income-tax act, applied to residents or not, and secondly, that if it did what proportion should have been attributed ..... the assessment for the relevant year came to the conclusion that on the facts which i have set cut the provisions of section 42, income-tax act, were applicable and he made an allocation of profits under section 42(3) on the basis that 50 per cent, of the profit .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-26-1949
Reported in : AIR1950Cal570,18ITR126(Cal)
..... which the company received from the mills and they were proved by vouchers. bat no declaration showing the proportion in which the commission was shared under section 12a, income-tax act, was filed before the income-tax officer. it is further stated that the parties concerned were approached by the applicant to make the required declaration, but they refused to do so on various grounds ..... chargeable only on the share to which they are entitled under the particular agreement.9. learned counsel appearing for the assessees has drawn our attention to section 10 (2) (xv), income-tax act. section 10 deals with the profits or gains of business, profession or vocation and sub-section (2) specifies certain allowances which have got to be taken into account in computing ..... partly to counteract the decision of the judicial committee in tata hydro electric case , and also to remove doubts with reference to the application of section 10 (2) (xv), income-tax act. it is often difficult to determine whether a particular payment represented by a share of profits has been made in order to earn such profits or whether it was really ..... this court and that is why the question aforesaid was referred to us for our opinion.5. section 12a, income-tax act, was introduced in the year 1939 after the judgment of the judicial committee in tata hydro electric agencies, ltd., bombay v. commissioner of income tax, bombay presidency & aden, . that section 12a is in the following terms :'where a managing agent of a .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-11-1949
Reported in : 17ITR591(Cal)
..... tax was at any time charged under the provisions of the indian income-tax act, 1918, is discontinued, then unless there has been a succession by virtue of which the provisions of sub ..... , n. c. mandal retired from his profession. he notified the incorporated law societu of his retirement, and gave notice of discontinuance of profession to the revenue authorities.the income-tax authorities contend that he is not entitled to relief under section 25(3) of the income-tax act, the relevant portion of that section is as follows :-'where any business, profession or vocation on which ..... -section (4) have been rendered applicable, no tax shall be payable in respect of the income. profits and gains of the period between the end ..... no doubt that the tribunal came to the correct conclusion when it gave the benefit of section 25(3) to the assessee. they have found that he had already paid income-tax before 1918 and as he ceased to practise from 1944 he is entitled to the relief which he has claimed.we answer the question put to the high court in .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-01-1949
Reported in : 20ITR326(Cal)
..... assessment. we should point out that with regard to the properties the deities or the shebaits in charge of the deities were being taxed under section 9 of the income-tax act, and the tax was levied on the whole of the income of the dedicated properties which was realised by the shebaits on behalf of the deities without making any deduction for the charities and ..... sital chandra banerji, a pious hindu governed by the dayabhaga school of hindu law, dedicated very valuable properties to two dated 31st march, 1922. the income-tax officer assessed the assessee under section 41(1) of the income-tax act and assessed the deities as an association of persons at the maximum rate on the ground that the shares of the beneficiaries were indeterminate.an ..... such. there is no room for the contention that the shares were indeterminate or unknown under the proviso to section 41(1) of the income-tax act.dr. gupta urged before us that in this case having regard to the deed of dedication a small amount has been prescribed by the dedicator for the seva and bhog ..... group of persons and charities.therefore, the question set out in the referring order should be answered in the negative.the income received under the deed of dedication is not chargeable at the maximum rate under section 41(1) of the income-tax act.the assessee is entitled to the costs of this reference. certified for two counsel.harries, c.j. - i agree.reference .....Tag this Judgment!