Court : Kolkata
Decided on : Aug-26-1955
Reported in : AIR1956Cal295,28ITR713(Cal)
..... both the assessment years. 'whether the assessee firm constituted orally in june, 1944, can validly be registered in the assessment years 1945-46 and 1946-47 under section 26a, indian income-tax act on the basis of a memorandum of partnership executed in june, 1948?' 4. we have already held, in ' : 28itr698(cal) ' and for the reasons given by us in our ..... the business activities of the assessee, it would be undisclosed income from the known source, that is the business, and not income from an undisclosed source. indeed, it appears to me that in the terminology of the income-tax act, income from an undisclosed source or undisclosed income from other sources must necessarily mean income from some source which is altogether unknown, taking the word 'source' in the ..... larger sense and not income from some undisclosed item or transaction in at known source of income which is exploited bythe assessee. i am quite prepared to .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-08-1955
Reported in : AIR1956Cal588,29ITR281(Cal)
..... using those words to describe a case where the profits would be the property of the family, but he was describing amounts which would be exceptions. the decisions on the income-tax act, however, as i have already said, do not seem to have observed the distinction between mere use of their family funds and use to their detriment.16. i have referred ..... means mere use of such funds or whether it means such use as causes, depletion or destruction of the funds, is a matter of some difficulty. but cases under the income-tax act appear to have proceeded on the basis that mere use will be sufficient or, to use the language of lord sumner, in the case of --'gokal chand v. hukam chand ..... it could be fastened on the amount only in the hands of mr. rohatgi when it became, due to him or when he received it.15. the decisions under the income-tax act have not been in accordance with the extreme view contended for by mr. gupta, cases in which questions of the present character have arisen have been mostly cases of partnerships ..... the principles on which the earnings of a member of a hindu undivided family might be treated in hindu law as the family's income were altogether irrelevant to the application of taxing statutes. the income-tax act, mr. gupta contended, caught income at the stage at which it accrued or arose or was received and it had its own standards as to what receipts were .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-02-1955
Reported in : AIR1956Cal48,28ITR732(Cal)
..... the purposes of an indian assessment.the accountant member rejected that contention by referring to the definition of 'british india', introduced in the income tax act as section 2(3a) by the india (adaptation of income-tax. profits tax and revenue recovery acts) order, 1947, and held that, according to that definition, which applied to the 1948-49 assessment, the land was not land ..... is .. assessed to land revenuein british india,' by article (2) of the adaptation order, read with its schedule, a new sub-section, termed '(3a)', was introduced in section 2, income-tax act, which defined 'british india' as follows:' 'british india' means, as respects any period before the 15th day of august, 1947, the territories then referred to as british india but ..... that if at any point of time during the previous year, the land was assessed to land revenue in british india, the requirements of section 2 (1) (a) income- tax act, would be satisfied and that, therefore, there was no warrant for splitting up the accounting year. the matter was then heard by a third member who was the president ..... local rate, assessed and collected by the officers of the government.the reason so given was not accurately expressed, because even after the partition, the definition of 'agricultural income' in the indian income-tax act continued to speak of 'british india' till 1950 when, for the first time, the expression 'the taxable territories' was introduced.the meaning of the appellate assistant commissioner, .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-30-1955
Reported in : AIR1956Cal313,28ITR726(Cal)
..... a question of law did arise but the tribunal had failed to refer the proper question, his client should not suffer. the answer is that the income-tax act has not consigned a party, desiring a reference to the high court, to the absolute mercy of the tribunal or to a helpless condition.if a ..... reference as made, disposed of, but all possibilities of the application made by the assessee firm for a reference to this court were also exhausted.the income-tax act does not provide that even after the tribunal have referred to the high court certain questions of law, supposed to arise out of their order and ..... that date two sums of rs. 25,000/- each were deposited by the two partners, each depositing a sum of rs. 25,000/-naturally, the income-tax officer asked the assessee to satisfy him as to the source of the deposits and the explanation given was that the partners had brought the money from ..... the sum of rs. 50,000/- credited in the accounts of the two partners on the starting day of the business is the income of the registered firm for the years and taxable under the act and whether the contention of the ..... it under section 66(2) of the act for a direction on the tribunal to refer the proper question, i find that in the present case the question which the assessee firm proposed was the following:'whether under the facts and circumstances of the case, the income-tax appellate tribunal was right in holding that .....Tag this Judgment!
Court : Kolkata
Decided on : May-26-1955
Reported in : AIR1958Cal524,62CWN83
..... under the circumstances would be proper because on 26-5-1940, when the notification was issued, the assessment proceedings were pending before the income-tax officer. the blank left in section 3 of the income tax act was filled in and the income tax officer had therefore to make a computation on the footing of the then existing legislation and pass his order. on that interpretation of ..... notification and consequently, no valid assessment for the year at all. this argument appears to me to be entirely misconceived. the liability to income-tax is under section 3 of the income-tax act. the annual finance acts legislate about the rate of tax and other facts that affect the assessment. where, therefore, say, on 6th april, 1945 a law is passed that for the year ..... collector has no jurisdiction to direct arrest and detention of the assessee. but i am unable to agree that this is the correct legal position. the relevant provision of the income-tax act appears in section 45 thereof which after specifying the time within which payment must be made proceeds to say that any assessee failing so to pay shall be deemed to ..... collector's jurisdiction if it exists at all to recover the arrears in this manner, rests entirely on the provisions of section 46 (2) of the income-tax act. these provisions are in these words : 'the income-tax officer may forward to the collector a certificate under his signature specifying the amount of arrears due from an assessee, and the collector, on receipt of such .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-19-1955
Reported in : AIR1956Cal443,30ITR550(Cal)
..... the unregistered firm by the income-tax officer under section 46(2), indian income-tax act, it was not open to the certificate officer to add the names of the partners and/or to execute the certificate against the partners. the appeals ..... argues that his attack in this application is also upon the assessment order itself, as well as the order made by the income-tax officer under section 46(2), income-tax act, which is left outstanding and which, in the opinion of the income-tax authorities, is executable against a partner. it will be observed, however, that the certificate under section 46(2) is also ..... rule was pending, the appeal has been heard and allowed. the learned commissioner has held that no notice under section 25(2), indian income-tax act having been served of the discontinuance of the firm, section 44, indian income-tax act was not applicable. he proceeded upon the footing that the assessee was an unregistered firm. he held that the certificate having been issued against ..... was urged that the firm having been discontinued the partners would have to be separately assessed because the liability was of a discontinued firm, and under section 44, indian income-tax act, proceedings could be taken against the partners jointly or severally by assessing them as such. this rule was issued on 25-8-1954 upon the respondents to show cause why .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-23-1955
Reported in : AIR1956Cal480,29ITR629(Cal)
..... in making the payment for the relevant accounting year, the defendants, who were purchasers from the transferees of the plaintiffs, deducted a certain amount as income-tax under section 40, income-tax act of 1853. the question being whether the amount would be a capital receipt in the hands of the plaintiffs, it was answered by phillimore, j., ..... sum ought to be treated as a revenue expense and a deduction in respect of it ought to be allowed under section 10 (2) (xv), indian income-tax act, but the department's view was that the expense was a capital expense. it is that dispute which is reflected in the first of the questions ..... , which is to be paid in instalments, and when that is the case, the payments to him are not income. or a man may sell his property for an annuity. in that case the income-tax act applies. again, a man may' sell his property for what looks like an annuity, but which can be seen ..... assessee's behalf on the decision of the privy council in the case of air 1933 20 pc 211 (c). that was, a case under the income war tax act of canada, 'but the fact seems to make no difference. the facts were that the assessee had sold all her right, title and interest in ..... were nevertheless trading profits, because they could not be properly segregated from other business earnings of the company. (see british south africa co. v. commissioner of income-tax, 1946 ac 62 (p) i do not say that the case is on all fours with the present one, but it goes very near and furnishes valuable .....Tag this Judgment!
Court : Kolkata
Decided on : May-13-1955
Reported in : AIR1956Cal504,29ITR103(Cal)
..... been some point if an assessee was deprived of the services of the higher court.22. lastly, i come to point no. 4. under the provisions of section 46(5a), income-tax act, an income-tax officer may at any time, by a notice in writing, require any person from whom money is due or may become due to the assessee, to pay to the ..... the name and style of laduram taparia. according to the petitioner, it has 3 partners -- laduram taparia, ganpat ram taparia and bhairodan maheswar. this firm was registered under section 26a, income-tax act. it was duly assessed as such for the assessment years 1042-43, 1943-44, and 1944-45. in july 1947, the firm submitted a return for the assessment year 1945 ..... firms, preferred appeals against their respective assessments, as also against the respective orders refusing registration under section 26a, income-tax act. on or about 26-3-1951 the income-tax officer forwarded to the certificate officer, 24 parganas a certificate within the meaning of section 46(2), income-tax act, requesting the latter, to commenceproceedings for recovery of the sum of rs. 8, 67, 239/10/0 from ..... according to the revised sum ordered by the appellate tribunal, that is a sufficient compliance with the provisions of sections 29, 45 and 43 (2), income-tax act. he concedes that if the appellate tribunal enhances the tax, then for the excess sum there is in existence no demand under section 29, and as such, a fresh demand notice must be issued for the .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-21-1955
Reported in : AIR1956Cal26,59CWN1119,28ITR97(Cal)
..... priority as respects revenue and other debts due to it has been expressly limited by a statute, enacted with the assent of the crown. but section 46(2), income-tax act merely says that the income-tax officer may forward to the collector a certificate, specifying the amount of arrears due from an assessee and the collector shall thereupon proceed to recover the amount specified ..... any reason to ascribe such duality to the union of india on the facts of this case. the union of india, acting through the commissioner of income-tax and an officer of his, had issued a certificate under section 46(2), income-tax act and the certificate officer had attached the money in the hands of the executing court in execution of the certificate and in ..... , the public demands recovery act only deals with the particular method of recovering, among other dues, income-tax, if the income-tax officer be minded to resort to section 46(2), income-tax act, but it does not bear upon the priority attaching to tax-claim dues, which is quite independent of the method of their recovery. in my ..... of 1920 ac 508 (f) invoked by the petitioners have any application. i cannot sea that either the income-tax act or the public demands recovery act takes over and makes exclusive provision for the crown's or the state's right to recover income-tax which could previously be recovered in exercise of some prerogative right. indeed, as i have endeavoured to point out .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-21-1955
Reported in : AIR1956Cal281,29ITR565(Cal)
..... that despite the possibility of a reverter, the money paid to the trustees in the present case could be claimed to be expenditure even in the income-tax act sense. the case relied on by mr. iyengar was heard along with another case which went up to the house of lords, but the ..... revenue expenditure.'14. before proceeding to deal with the question, it might be useful to make its scope a little clearer. section 10 (2) (xv), income-tax act under which the deduction was claimed read as follows at the relevant time. 10 (2) 'such profits or gains shall be computed after making the following ..... by the assessee company and referred to in para. 4 above constitute 'expenditure' within the meaning of that word in section 10 (2) (xv) income-tax act, 1922, in respect of which a claim for deduction can be made, subject to the other conditions mentioned in that clause being satisfied?'13. it will ..... other on 31-3-1949, but the latter are only consequential. the claim was made under section 10(2)(xv), income-tax act, as it stood at the relevant time. the income-tax officer refused to allow the deduction on the grounds that the payment was in the nature of a gratuity, secondly, that ..... its interest therein wholly and effectively. on this point again mr. iyengar referred us to various provisions of the income-tax act where he said it would be found that the act recognised premia paid on deferred annuities as admissible expenditure or regarded the possibility of return of premia in certain circumstances as .....Tag this Judgment!