Court : Kolkata
Decided on : Sep-25-1980
Reported in : 135ITR704(Cal)
..... distributed is not prohibited. a taxpayer may resort to a device to divert the income before it accrues or arises to him. effectiveness of the device depends not upon considerations of morality, but on the operation of the income-tax act. legislative injunction in taxing statutes may not, except on peril of penalty, be violated, but it may lawfully be circumvented.'16. lastly, mr. roy ..... relies on the decision in the case of henriksen (h.m.inspector of taxes) v. grafton hotel ltd.  24 t.c. 453, and specially aportion ..... am concerned with in this case is whether this company, as aseparate entity, is conducting its own trade in respect of which it isassessed for its own income-tax liability. in this transaction the companywas not acting in the course of its own trade, which is the subject of taxation, but out of that course. these transactions, when seen in theircontext of the ..... in regard to the second house constituted a liferent, and that the additional assessments made to include the outgoings paid by the trustees, had increased by the appropriate addition for income-tax, were properly made. he draws our attention to the passage of a judgment of lord sands at page 478, which reads as follows :'the appellants contended further that the lady .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-03-1980
Reported in : 164ITR419(Cal)
..... and sale between principal and principal in order to bring the transaction within the purview of the expression 'business connection ' within the meaning of section 9(1)(i) of the income-tax act, 1961. thus, it appears that the law on the point is fairly well settled. the question whether there is business connection or not will depend upon the facts and circumstances ..... the contribution other than that part paid as royalties (royalties having been allowed as deduction) was admissible as an allowance under clause (xii) of section 10(2) of the indian income-tax act, 1922. it was held by the supreme court that the contribution was not allowable under clause (xii) of section 10(2) as expenditure laid out or expended on scientific research ..... on certain remuneration payable by the respondent company to n.s.k. in order to bring the case within the provision of section 9 of the income-tax act, 1961, it has to be shown that the income of the said sum of 1,65,000 u.s. dollars, being the consideration for the sale of trade secrets or technical know-how, is the ..... of the purchase of the trade secrets or the technical know-how was not taxable in india. the income-tax officer made an order dated august 16, 1971, under section 195(2) of the income-tax act, 1961. by the said order, the income-tax officer held that the income of the non-resident, that is, n.s.k., had accrued in india as a result of supply .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-04-1980
Reported in : 141ITR358(Cal)
..... the case, the tribunal was justified in law in directing the imposition of any penalty under section 271(1)(c) read with section 274(2) of the income-tax act, 1961, on the assessee?'2. the assessment year involved was 1964-65. the assessee was an individual. the business, according to the return filed, was ..... in the appeal for that yearit was stated on behalf of the assessee that there was very little evidenceavailable to contest the action of the income-tax officer treating the income as belonging to the assessee. the position in 1963-64 was similar and before us also for this year no evidence has been led ..... to be one owned by the assessee. there were also certain discrepancies noticed on the signature on some bills which, according to the income-tax officer, would go to link the assesses with the concern. for these reasons he considered the concern to belong to the assessee in the assessment year ..... this employee, who had taken the entire premises on rent at rs. 90 p.m. when his salary was only rs. 70 p.m. the income-tax officer also examined some of the creditors of the concern and it was stated by some of them that they knew the concern of hindusthan trading corporation ..... we prefer to quote here :' the case of the assessee as well as that of his wife, bhadra mitra, were being assessed by the same income-tax officer. there is no merit in the plea that there is any double assessment since bhadra mitra's assessment for this year has been cancelled and both .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-12-1980
Reported in : (1981)20CTR(Cal)275,136ITR395(Cal)
..... ]60itr493(sc) . 6. lakshmiratan cotton mills co. ltd. v. cit : 73itr634(sc) . these cases were also cited for similar observations by the supreme court. 7. mahmudabad properties (p.) ltd. v ..... the burden is on the department to prove that the income sought to be taxed is not agricultural income. the law is well settled that it is for a person who claims exemption to establish it, and there is no reason why it should be otherwise when the exemption is claimed is under the income-tax act.' 5. r. b. seth champalal ramswarup v. ci7 : [1966 ..... c.k. banerji, j.1. this reference under section 256(2) of the i.t. act 1961, arises out of the income-tax assessment of sri bhupesh chandra paul also known as b. c. paul, the assessee, for the assessment year 1965-66.2. the facts found and/or admitted in these proceedings ..... alleged or proved, the tribunal does not indulge in conjectures, surmises or suspicions.' 4. cit v. ramakrishna deo : 35itr312(sc) . here the question was if the income derived by the assessee from forests by sale of timber was agricultural income and exempt from tax under the indian i.t. act, 1922. on a reference the orissa high court held that the onus was upon .....Tag this Judgment!
Court : Kolkata
Decided on : Dec-22-1980
Reported in : (1981)22CTR(Cal)289,137ITR698(Cal)
..... the english statutes (vide the observations in the case of cit v. singari bai : 13itr224(all) ).'20. the real principle seems to be that the root or the germ as to ..... general rule that receipt is the sole test of taxability and income which has accrued, but has not been received, cannot be brought to charge, and, secondly, that it is the income of the year of receipt and not of the year when it arises or accrues, would be misleading under the income-tax act, which contains provisions which are not to be found in ..... year out of the receipts of previous years which have been held in suspense and no part of which has previously been returned as income. their lordships do not find that the income-tax officer in the present case has acted in any way illegally in computing the profits of the transactions in question for the year 1332 fasli by taking into account both ..... lesser amount alone was taxable. the supreme court reiterated that income-tax was a levy on income and though the i.t. act took into account two points of time at which the liability to tax was attracted, viz., the accrual of the income or its receipt, yet the substance of the matter was the income. if income did not result at all, there could not be a .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-21-1980
Reported in : 132ITR506(Cal)
..... for revaluation of the assets by the assessee-company was rightly allowed by the tribunal as a deduction under section 10(2)(xv) of the indian income-tax act, 1922? '2. the assessment relates to the year 1961-62 for which the relevant previous year ended on march 31, 1961.3. the ..... assessee, procured the use of a thing, by which he makes profit, is deductible from the receipts of the business to ascertain the taxable income. the loan obtained cannot be treated as an asset or an advantage for the enduring benefit of the business of the assessee. reference is also ..... the distinction between the capital and revenue expenditure. capital expenditure was a fee that was going to be spent once for all, whereas an income expenditure was a thing that was going to recur every year. while disposing of the case, their lordships referred to certain english cases which were ..... in question was a permissible deduction as a revenue expenditure.13. the himachal pradesh high court again in the case of mohan meakin breweries ltd. v. cit (no. 2)  117 itr 505 , while distinguishing capital and revenue expenditure, reiterated the principles discussed above.14. this court again in the ..... and 'enduring' are only relative terms and not synonymous with perpetual or everlasting.'11. in the case of lakshmiji sugar mills co. p. ltd. v. cit : 82itr376(sc) , wherein also to find out the distinction between the capital expenditure and revenue expenditure, their lordships quoted the passage of the judgment .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-30-1980
Reported in : (1980)19CTR(Cal)74,132ITR712(Cal)
..... in the instant case was not barred by limitation, having been passed within the period of limitation specified in the amended section 275 of the income-tax act, 1961, which came into force before the said order was passed ' 7. mr. nirmal mukherjee, the learned advocate appearing for the assessee, ..... 2. whether the tribunal was correct in holding that section 6 of the general clauses act, 1897, had no application to this case and this case was governed by the amended section 275 of the income-tax act, 1961, even though it was the unamended section 275 that was in force at the ..... penalty order had ceased to exist with the finding of the tribunal that the amount in question should be assessed to tax as business income and not as income from undisclosed sources. in the above facts and circumstances, the following questions were referred by the tribunal to this court:' ..... arguments, he refers to section 4 of the it. act, 1961, which deals with sales chargeable to tax. he also refers to section 14 of the act which deals with heads of income. according to him, profits and gains of business or profession were distinct from income from other sources. thereafter, he refers to ..... section 271 which lays down in what circumstances the ito or the aac in the case of any proceeding under this act .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-27-1980
Reported in : 128ITR179(Cal)
..... a statement of case :'whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the provisions of section 44f of the indian income-tax act, 1922, were not applicable in the case and the tribunal was correct in holding the amount of rs. 94,775 included in the assessment was not taxable for the ..... distributed is not prohibited. a taxpayer may resort to a device to divert the income before it accrues or arises to him. effectiveness of the device depends not upon considerations of morality, but on the operation of the income-tax act. legislative injunction in taxing statutes may not, except on peril of penalty, be violated, but it my lawfully be circumvented. '19. exactly such ..... view was also expressed by the supreme court in the case of cit v. calcutta, discount co. ltd. : 91itr8(sc) of the report, their ..... when the assessee divests himself of the sources of income or abstains himself from earning more income and as a result, his income is reduced and in consequence his liability for income-tax becomes lesser, in such circumstances the assessee cannot be charged with avoidance of tax liability. the avoidance of tax liability must be a deliberate act. the purpose or intention of the assessee must be .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-16-1980
Reported in : (1981)20CTR(Cal)267,128ITR276(Cal)
..... the facts and in the circumstances of the case, the appellate tribunal was justified in confirming the order of the appellate assistant commissioner of income-tax cancelling the penalty imposed by the income-tax officer under section 273(a) of the income-tax act, 1961?'5. we have very grave doubts whether on the ambit of this question, as referred to hereinbefore, and in the background of ..... the fact that when the tribunal had refused the question under section 256(1) on the finding of fact and in view of the fact that there was no subsequent application under section 256(2) of the act ..... was of the view that before section 273(a) could be attracted, it must be shown that the assessee had furnished under section 212 of the i.t. act, 1961, an estimate of advance tax payable by him which he had reason to believe to be untre. therefore, in order to attract the penal provision of section 273(a), there must be ..... assessee-company went up in appeal to the aac, who held that the advance tax estimate was on the same income as the amount shown in the return of income, and the difference between the returned income and the assessed income was not due to any deliberate or conscious suppression of income. he, therefore, cancelled the penalty imposed under section 273(a).3. the matter thereafter .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-16-1980
Reported in : 126ITR318(Cal)
..... whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the provisions of section 34(1)(a) of the indian income-tax act, 1922, had not been correctly invoked in this case 2. if the answer to question no. (1) is in the negative, then, whether on the ..... and in the circumstances of the case, the tribunal was right in holding that the assessee was entitled to get depreciation under rule 8 of the income-tax rules even in respect of ships which had formed part of the assessee's fleet for more than 20 years ?' 4. the second question would ..... the depreciation had correctly been worked out by the appellant and he had, therefore, accepted the returned incomes for different years. this being the position, it cannot be said that any income chargeable to income-tax has escaped assessment by reason of the failure on the part of the appellant company to disclose fully and ..... fleet for more than 20 years. but this view of the ito was not upheld by the income-tax appellate tribunal in the appeal for the assessment year 1958-59. therefore, there was no escapement of income either. on this ground, the aac set aside the orders of the ito. thereafter, there was ..... to disclose fully or truly any material or relevant fact at the time of original assessment and whether in consequence of such failure or omission any income had escaped assessment. the tribunal will decide and send a supplementary statement of case to this court within four months from the receipt of this .....Tag this Judgment!