Court : Kolkata
Decided on : Jun-15-1981
Reported in : (1982)26CTR(Cal)353,139ITR571(Cal)
..... comprehensive question, to us which is as follows: ' whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in upholding the action of the income-tax officer under section 34(1)(a) of the indian income-tax act, 1922, as valid?' 13. therefore, we are concerned whether the reopening was valid on the ground that there had been a ..... assessment. on this, the assessee made an application for a reference and it was submitted that the following two questions should be referred: ' (i) whether, the income-tax appellate tribunal was right in holding that the income-tax officer had recorded his reasons for initiating reassessment proceedings and the central board of revenue was duly satisfied on such reasons recorded that it was a ..... 34(1)(a) as required by proviso (iii) to section 34(1) ? (ii) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in upholding the action of the income-tax officer under section 34(1)(a) as valid ' 12. the tribunal, however, reframed the questions and referred one question, which, according to it, was a ..... narayana and sons v. first addl. ito : 63itr638(sc) , the supreme court observed as follows: 'it is the duty of the assessee to bring to the notice of the income-tax officer particular items in the books of account or portions of documents which are relevant. even if it be assumed that from the books produced, the .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-17-1981
Reported in : 134ITR37(Cal)
..... tribunal was correct in holding that the disallowance made out of salary paid to mr. j. d. somerville could be sustained under section 40(c) of the income-tax act, 1961 ?'2. the assessee is m/s. eastern scales pvt. ltd. and the present statement relates to the assessment years 1973-74 and 1974-75 for ..... from the view-point of the company itself and must be viewed from the point of view of a prudent businessman. it is not for the income-tax officer to dictate what the business needs of the company should be and he is only to judge the legitimacy of the business needs of the company ..... decision of this court in edward keventer's case : 86itr370(cal) , referred to hereinbefore, went up in appeal before the supreme court in the case of cit v. edward keventer (p.) ltd. : 115itr149(sc) of the said report, the supreme court approved of the said reasoning of the calcutta high court.5. ..... this changed perspective that one director was doing the job of two directors. this question was really considered by the division bench of this court in the case of cit v. edward keventer (p.) ltd. : 86itr370(cal) . there, the division bench of this court held that the ito did not apply the correct ..... year 1973-74) and rs. 15,295 (for the assessment year 1974-75) being the deduction claimed by way of gratuity liability under the compulsory gratuity act, 1971.3. in so far as the first of these two issues was concerned, it was observed by the tribunal that, in restricting the deduction in respect .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-15-1981
Reported in : 148ITR14(Cal)
..... the loom hours did not cost anything to the assessee. the sale of loom hours, therefore, does not attract the provision of section 45 of the income-tax act, 1961. the additions on account of sale proceeds of loom hours in both the years are accordingly deleted.'3. the tribunal in those circumstances, following the ..... of section 12b of the (indian) income-tax act, 1922, as it produced no profit or gain in the case of transfer to the companies. in this case their lordships quoted with approval the decision ..... the sum of rs. 1,20,000 allocated towards the goodwill of the firm as the firm's capital gains under section 12b of the (indian) income-tax act, 1922, rejecting the assessee's contention that the goodwill being an intangible asset did not come within the definition of capital asset and section 2(4)(a ..... ) of the (indian) income-tax act, 1922, and this decision was upheld by the tribunal. it was held by the high court that goodwill was not a capital asset within the meaning ..... gain arises only on the transfer of a capital asset which has actually cost to the assessee something. such cost in the context of the income-tax act being cost in terms of money cannot apply to transfer of capital asset which did not cost anything to the assessee in terms of moneyin its .....Tag this Judgment!
Court : Kolkata
Decided on : Sep-22-1981
Reported in : 141ITR37(Cal)
..... 'interest on securities' within the meaning of section 18 of the said act ?'2. as we have mentioned before, the relevant assessment year is 1968-69, for which the ..... . we have been referred the following question under section 256(1) of the i.t. act, 1961:'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the assessee was entitled to relief undersection 86a of the income-tax act, 1961, on the gross amount of dividends received from statutory corporations which was held to be ..... as under : '86a. deduction from tax on certain securities.--where there is included in the total income of au assessee- (i) the interest due on any security of the central government issued or declared to be income-tax free, or (ii) the interest due ..... is section 86a which applies. the provisions relating to the imposition of super-tax were deleted from the act, w.e.f. april 1, 1965. consequently it became necessary to allow relief to the assessees deriving income from tax-free securities. this was provided by the insertion of section 86a by act 10 of 1965 w.e.f. april 1, 1965. the said section reads .....Tag this Judgment!
Court : Kolkata
Decided on : Nov-30-1981
Reported in : 141ITR278(Cal)
..... addie & sons' collieries ltd. v. commissioners of inland revenue  8 tc 671 , the lord president clyde, dealing with corresponding words in the british income-tax act says at p. 235 : what is 'money wholly and exclusively laid out for the purposes of the trade' is a question which must be determined upon the ..... precedent to the assessee executing the contracts and earning profits therefrom, we hold that the payments were of a revenue nature. we, therefore, direct the income-tax officer to allow deduction of those payments in computing the profits of the assessee. ' 5. it appears, therefore, that the contract business of the ..... would appear from p. 44 onwards in the report. 8. our attention was also drawn to the observations of the supreme court in the case of cit v. coal shipments p. ltd. : 82itr902(sc) , where certain payments were made in order to keep out a particular company from a particular ..... earning ' ' 7. these principles have been enumerated and clearly laid down by the supreme court in the case of assam bengal cement co. ltd. v. cit : 27itr34(sc) , where the supreme court approved the tests laid down by the full bench of the lahore high court in the case of benarsidas ..... of a case. 6. our attention was drawn to the decision of the privy council in the case of tata hydro-electric agencies ltd. v. cit  5 itr 202 , where their lordships, though not dealing with revenue expenditure, yet dealing with expenditure which was not incurred solely for the purpose .....Tag this Judgment!
Court : Kolkata
Decided on : Aug-18-1981
Reported in : (1982)28CTR(Cal)375,141ITR640(Cal)
..... , the quantum of penalty imposed was excessive and it should be reduced to a reasonable minimum amount in accordance with the provisions of section 28(1)(c) of the indian income-tax act, 1922. on the other hand, the departmental representative strongly supports the imposition of penalty. after due consideration of the facts and circumstances of the case we do not find any ..... be liable to penalty as provided by section 271(1) of tlae income-tax act, 1961, for the default mentioned in section 28(1) of the indian income-tax act, 1922, as its case fell within the terms of section 279(2)(g) of the income-tax act, 1961. relevant assessment was completed under section 144 of the income-tax act, 1961, on 21st march, 1970. hence, the question of application of ..... ' in place of various loan amounts in its books of accounts in a later year amounted to an admission of concealed income on the part of the assessee, as envisaged under the provisions of section 271(1)(c) of the income-tax act, 1961 ?'2. this reference arises out of the assessment for the assessment year 1957-58. the original assessment was completed on ..... follows :'(i) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in upholding the penalty on the assessee under section 271(1)(c) of the income-tax act ? (ii) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was correct in holding that the credit of amount of rs. 2,45 .....Tag this Judgment!
Court : Kolkata
Decided on : Jul-15-1981
Reported in : 140ITR114(Cal)
..... on record and in the circumstances of the case, the tribunal was justified in holding that the assessee was entitled to relief under section 84/80j of the income-tax act, 1961, in respect of the new production units added to the existing production units of the assessee at alupuram, belur, hirakud and muri for the assessment ..... holding that there was no business connection in india between the said two companies within the meaning of section 9(1) of the income-tax act, 1961, and in that view holding that no income could be deemed to accrue or arise to the non-resident company in india for the assessment years 1967-68 to 1969-70? ..... of the powder and paste plant at kalwa, the applicant-company was not entitled to deduction under section 80e/80-i of the income-tax act, 1961, for the assessment years 1966-67 to 1969-70? 7. whether, on the facts and in the circumstances of the case, the ..... paste plant at kalwa for the assessment years 1966-67 to 1969-70? 8. whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in not holding that the company is entitled to depreciation on the storage tanks at 10% being the rate applicable to aluminium industries ..... view of the difference in values of the currencies, a sum of rs. 1,73,817 was received in excess, and the attempt of the income-tax authorities was to tax this amount as profit. it was held that even assuming that the amount held in pakistan was originally stock-in-trade, when it was blocked and .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-09-1981
Reported in : 139ITR581(Cal)
..... this advantage which was certainly an enduring advantage was thus of the nature of capital expenditure and was not an allowable de-deduction under section 10(2)(xv) of the income-tax act. the further protection fee which was paid by the company to the lessor under clause 5 of the deed was also of a similar nature. it was no doubt spread ..... determining the taxable income of any person, there shall be deducted from the income of such person.........(2).........(a) expenditure.........(not being expenditure......ofa capital nature) wholly and exclusively incurred by the ..... to the decision of the privy council in the case of commissioner of taxes v. nchanga consolidated copper mines ltd.  58 itr 241. there, by section 13 of the income tax act, 1954, of the federation of rhodesta and nyasaland, it was stipulated as follows :'by section 13 of the income-tax act, 1954, of the federation of rhodesia and nyasaland : ' (1) for the purpose of ..... charter was granted in january, 1963, substantially in the form proposed; the company's affairs were then reorganised and its commercial performance improved.20. on appeal against an assessment to income-tax under case i of schedule d for the year 1964-65 the company claimed to deduct the costs of obtaining the charter (3,107) and defending the action (2,641 .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-02-1981
Reported in : (1981)23CTR(Cal)225,139ITR703(Cal)
..... case of shushil chandra ghose v. ito : 35itr379(cal) , mr. justice sinha, as the learned chief justice then was, observed as follows :' firstly, the very premises are wrong. the income-tax act and the the rules require that the assessment order together with the computation in a particular form be served upon the assessee. in this form, in which it is served ..... is also true that his lordship mentioned that the original computation, which was in form no. i.t. 30, ' requires the signature of the income-tax officer'. we have not been shown any statutory requirement, either in the act or in the rules, that form no. i.t. 30 should be signed by the ito. as a matter of fact, apart from this ..... to determine this question, it would be necessary to refer to the provisions of s, 143 of the i.t. act, 1961, which reads as follows :' 143. assessment.--(1) where a return has been made under section 139 and the income-tax officer is satisfied without requiring the presence of the assessee or the production by him of any evidence that the return ..... be made to section 23 of the indian i.t. act, 1922, as well as to section 34 of the said act. sub-section (3) of section 23 provides as follows :'section 23(3). on the day specified in the notice issued under subsection (2), or as soon afterwards as may be, the income-tax officer, after hearing such evidence as such person may .....Tag this Judgment!
Court : Kolkata
Decided on : Apr-01-1981
Reported in : (1981)25CTR(Cal)1,139ITR710(Cal)
..... the permissibility of a deduction under section 5(e) of the madras plantations agricultural income-tax, act, 1955. section 5(e) it may be observed, is in terms similar to section 10(2)(xv) of the income-tax act. section 5 permits deductions of various items of expenditure in the computation of agricultural income. clause (e) provides for the deduction of any expenditure incurred in the previous ..... a barrier of wooden piles and brushwood in front of the cafe as a protection against erosion by the sea. on appeal to the general commissioners against the assessments to income-tax under schedule d, the company contended that the barrier had been erected solely to maintain its existing assets in their original condition, that its construction did not represent the ..... excess profits duty. it was held that the loss in question was a loss of capital and that it was not admissible as a deduction from the company'sprofits for income-tax and excess profits duty purposes. though the decision had to deal with the obligations under the contract, the context in which the observations of lord president clyde had been ..... be said to be laid out or expended wholly and exclusively for the purpose of the plantation. in this connection, it is pertinent to note that what the act purports to tax is agricultural income and not agricultural receipts. from the agricultural receipts must be deducted all expenses which in ordinary commercial accounting must be debited against the receipts..... in principle, we do .....Tag this Judgment!