Court : Kolkata
Decided on : May-09-1968
Reported in : AIR1969Cal92,73ITR395(Cal)
..... k.l. roy, j.1. by this reference under section 66 (1) of the indian income-tax act, 1922, the income-tax appellate tribunal has referred the following two questions to this court, namely:--'i. whether on the facts and in the circumstances ..... case of hindusthan motors. dr. pal referred to the decision of the supreme court in bombay steam navigation co. (1953) private ltd. v. commissioner of income-tax, bombay : 56itr52(sc) and relied on the following observation at pages 59-60 (of itr)=(at p. 1205 of air):--'whether a particular expenditure ..... the affirmative and against the assessee.9. dr. pal submitted that the second question referred was covered by a very recent decision of this court in commissioner of income-tax, west bengal v. hindusthan motors ltd. : 68itr301(cal) . in that case the assessee. which was manufacturing motor cars, had its factory near ..... deduction. the conditions for the allowance and the percentages are prescribed in rule 8 of the indian income-tax rules 1922 which is as follows:--'8. the allowance under section 10 (2) (vi) of the act in respect of depreciation of buildings, machinery, plant or furniture shall be at percentages of the written ..... the opinion that the expenditure was a capital expenditure. but he allowed rebate under section 15b of the act. the appellate assistant commissioner, on appeal by the assessee, concurred with this view of the income-tax officer, on further appeal by the assessee to the tribunal, the tribunal was of the opinion that .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-11-1968
Reported in : AIR1970Cal445,75ITR83(Cal)
..... 080.00 (and not merely rs. 1,17,500.00) was liable to be 'grossed up' as to 95% thereof under section 16(2) of the indian income-tax act, 1922'.9. mr. debi pal, learned counsel for the assessee, contends that the appellate assistant commissioner has found that the declaration of dividend, in the instant case, ..... received as dividend at the rate applicable to the dividend paying company i, e. 95%.12. now, in this reference the sections of the indian income-tax act, 1922, which need consideration are sections 16 (2), 18 (5) and 49b. section 16 (2), inter alia, provides that for the purposes of inclusion in ..... payment to the shareholders of the bharat nidhi limited, in excess of 5%. the tribunal relied on the supreme court's decision in kantilal manilal v. commissioner of income-tax : 41itr275(sc) , and held that the market value of the shares received by the assessee would be the amount of dividend it had received as ..... rs. 14.56 per share. according to the income-tax officer, the value of 11,750 shares was, in the premises, rs. 1,71,080.00. now, at the general meeting of the new central jute ..... the assessee received 11,750 shares of the new central jute mills company limited from the bharat nidhi limited, by way of dividend in specie.2. the income-tax officer found that the face value of the shares of the new central jute mills company limited was rs. 10.00 only; but the market value was .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-26-1968
Reported in : 74ITR107(Cal)
..... borrowed a large sum of money in its business and was entitled to deduction of the interest paid on the borrowed capital, under section 10(2)(iii) of the indian income-tax act, 1922, which reads as follows :'10. (2) such profits or gains shall be computed after making the following allowances, namely:...... (iii) in respect of capital borrowed for the ..... in his possession, the income-tax officer has reason to believe that income chargeable to tax had escaped assessment, the income-tax officer has jurisdiction to assess or reassess income under section 147(b) of the income-tax act, 1961. information in his possession that income chargeable to tax has escaped assessment furnishes a starting point, for assessing or reassessing income. if he has that information, the income-tax officer may commence proceedings for ..... question of law:'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the reassessment made by the income-tax officer under section 34(1)(b) of the indian income-tax act, 1922, was incompetent?'10. it is necessary for us at this stage to examine the language of section 34(1 )(b), which reads :'34. ..... but for the purpose of giving interest-free advances to the partners of the assessee-firm.5. as a result of the discovery, the income-tax officer took action under section 34(1)(b) of the indian income-tax act, 1922, on the ground that he had reasons to believe that the assessee's claim of payment of interest on money borrowed was not .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-06-1968
Reported in : 73ITR713(Cal)
..... any settlement of the contracts of purchase and sale and therefore one of the vital limbs of explanation 2 to section 24(1) of the indian income-tax act is not found as a fact in order to bring the transaction within the mischief of a speculative transaction.'33. in our case the appellate ..... of this case whether he has reached the correct conclusion.26. let us quote, at the outset, the relevant provisions in section 24(1) of the income-tax act, 1922. the provisions are as follows :'24. set-off of loss in computing aggregate inconte.--(1) where any assessee sustains a loss of profits or ..... the loss of rs. 1,50,217 was a loss from speculative transactions within the meaning of explanation 2 to section 24(1) of the indian income-tax act, 1922 ' 11. so far as the first question is concerned, mr. roy appearing for the assessee has advanced more or less the same arguments ..... .d.os. had been given or taken was not loss from speculative transactions within the meaning of explanation 2 to section 24(1) of the indian income-tax act, 1922. the tribunal set aside the appellate assistant commissioner's order and allowed the appeal.10. the following questions of law have been referred to us ..... ,50,217 was a speculative loss and allowed it to be carried forward to be set off against future speculation profits under section 24(1) of the income-tax act, 1922.3. before the appellate assistant commissioner the assessee contended, inter alia, that the delivery of p.d.os. amounted to actual delivery of the .....Tag this Judgment!
Court : Kolkata
Decided on : Mar-28-1968
Reported in : AIR1969Cal4,76ITR291(Cal)
..... in the affirmative, and against the assessee.23. our answers to the questions referred, therefore, are as follows:q. no. 1--the second proviso to section 30 of the indian income-tax act, 1922 has no application to the appeal filed by the respondent and as such the appeal filed by the respondent was maintainable.q. no. 2 -- the respondent's appeal is ..... ) whether on the facts and in the circumstances of the case, the appeal filed by the respondent lies under the second proviso to section 30 of the indian income-tax act, 1922?(2) whether in the facts and circumstances of the case, the said appeal is barred by the principles of res judicata and estoppel?(3) whether in the facts and ..... form a composite part of a single transaction, the firm consisting of five partners was in effect dissolved on that date, he issued notices under section 34 of the indian income-tax act, 1922 (hereinafter referred to as the act) to all the aforesaid five partners of the firm as representing firm requiring them to submit returns of the total ..... the appeal. following its own decision in this appeal, the tribunal also allowed the appeal of another ex partner prithwis chandra biswas.11. the commissioner of income-tax applied under section 66(1) of the act for reference of certain questions of law arising out of the aforesaid order of the tribunal. at the hearing of the application the respondent suggested that certain .....Tag this Judgment!
Court : Kolkata
Decided on : Feb-28-1968
Reported in : AIR1969Cal71,72CWN891,72ITR121(Cal)
..... the two tea companies doing business in india and the assessee claimed that no portion of the interest was taxable under the income-tax act.5. the income-tax officer's decision ss based on the fact which he held that the corporation while carrying out capital expansion in india utilised the ..... case the electrical generator plant is 'money in kind' within the meaning of section 42 (1) of the income-tax act. the 'money in kind' in section 42 (1) of the income-tax act means that which retains its character or quality or its kind as money, namely in commercial forms recognised in the ..... worn clothes and a car which depreciated in value. but these things can in no sense be described as income; and it is only income that can be taxed under the indian income-tax act'.18. the last observation of lord romer in that above passage still remains true. applying that principle contained in ..... 14. money has been known to be a cause of trouble and anxiety not only morally and materially but also fiscally and legally under the income-tax act and other taxing statutes. judicial interpretation of 'money', by judges and courts, have added fuel to the fire. for instance, interpretation of 'money' in a ..... india. as such no interest accrued to the assessee on money lent and paid within the taxable territories under section 42 (1) of the income-tax act. the same contention was repeated in respect of interests received from the tea companies. the assessee also received interest during the said years from .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-03-1968
Reported in : AIR1970Cal124
..... set the controversy at rest and, without any hesitation, we overrule the contention of mr. pal that clause (b) of section 16 (3) of the indian income-tax act, 1922, does not apply to cases of trust.14. we now proceed to deal with the second question referred to us.15. in the instant case we find ..... have been referred to us for our opinion :--(1) whether the tribunal was right in holding that the provisions of section 16 (3)(b) of the indian income-tax act, 1922, were not applicable to the cases of transfers of property by way of trust?(2) if the answer to question no. 1 be in the negative ..... the assessee to his brother for the benefit of the letter's wife and minor child was not chargeable to tax in the hands of the assessee under section 16(3)(b) of the indian income-tax act, 1922.17. there would be no order as to costs.18. we are delivering this judgment in supersession of ..... the same value meant that the wife or minor child of the assessee was indirectly deriving the income. but this indirect income does not attract section 16(3)(b). we have further to observe that even in the income-tax act of 1961 no change of language has been effected so far as this aspect of the matter ..... is concerned (vide section 64 of the income-tax act, 1961).16. in view of the difference therefore, in language, that exists between section .....Tag this Judgment!
Court : Kolkata
Decided on : Jun-21-1968
Reported in : AIR1969Cal171,77ITR575(Cal)
..... respect of (a) any disbursements of expenses, not being money wholly and exclusively laid out or expended for the purposes of the trade, profession, employment, or vocation.'13. in our income-tax act, 1922, section 10 (2) (xv) as it stood upto 1939 was as follows:--section 10 (a). 'such profits or gains shall be computed after making the following allowances, namely:-- (xv ..... year for settling each year's assessment irrespective of the fact whether there were any appeals or not, was an admissible deduction under section 10 (2) (xv) of the indian income-tax act, 1922?10. in this court the case has been argued by learned counsel for both the parties from a broader point of view. numerous authorities were cited before us. but ..... ) . the paragraph runs thus:--'in the light of the principles the amount of tax paid on the net wealth of an assessee under the wealth-tax act is not a permissible deduction under section 10 (2)(xv) of the indian income-tax act in his assessment to income-tax, for tax is imposed under the wealth-tax act on the owner of assets and not on any commercial activity. the charge ..... of the tax is the same, whether the assets are part of or used in .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-24-1968
Reported in : AIR1969Cal211,75ITR433(Cal)
..... date of payment. the question arose whether the unclaimed balances transferred to the partners were trading receipts in respect of which the assessee was assessable to income-tax under case i, schedule d of the english income-tax act. giving a negative answer to the question sir wilfrid greene, m. r. observed:--'now the crown put forward two arguments. the learned solicitor-general put forward ..... representing unclaimed balances in the accounts of the clients and credited to the profit and loss account of the assessee firm were revenue receipts and as such liable to tax under the indian income-tax act, 1922?'11. it was contended by mr. b. l. pal, learned counsel for the revenue, that the assessee carried on a business or profession and the different sums ..... even though the remedy of some of the clients may have become barred by limitation, even then the barred debt did not become income of the assessee and could not be taxed under the income-tax act.18. in the view that we take, we answer the question referred to this court in the negative and in favour of the assessee. the assessee is entitled ..... banerjee, j. 1. this reference, under section 66 (1) of the indian income-tax act, 1922 raises an interesting question about solicitor-client relationship.2. the institution of solicitors is an english institution, which has been imported to or copied by this country. in dealing .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-19-1968
Reported in : AIR1969Cal431,76ITR217(Cal)
..... , calcutta to produce or cause to be produced, books of account or other documents which would be useful for, or relevant to, any proceeding under the indian income-tax act, 1922 or under the income-tax act, 1961, he would not produce or cause to be produced such books of account or other documents as required by such summons or notice, (ii) that mamchand and ..... that if a summons under sub-section (1) of section 37 of the income-tax act, 1922 or under sub-section (1) of section 131 of the income-tax act, 1961 or a notice under subsection (4) of section 22 of the income-tax act, 1922 or under sub-section (1) of section 142 of the income-tax act, 1961 was issued to messrs. mamchand and co. of 22-a, canning street ..... , or whether they belonged to the petitioners or not, and that this was done arbitrarily and indiscriminately, without regard to relevancy or usefulness for purposes of any proceeding under the income-tax act. the definite case is that on the 1st february, 1967 documents, books and papers were seized and taken away and subsequently an inventory was prepared, which it is alleged, shows ..... that the search and seizure was conducted indiscriminately, arbitrarily and without any regard for relevancy or usefulness of the documents so seized, for the purpose of any proceeding under the income-tax act. it is stated that a large number of books, papers and documents belonging to the petitioners as well as their friends and relatives, viz., benarashilal and co., hope prodhume co .....Tag this Judgment!