Court : Mumbai
Decided on : Oct-03-1958
Reported in : AIR1959Bom556; (1959)61BOMLR566; ILR1959Bom1359
..... relating to the gifts executed on 2nd february 1946, 15th april 1946 and 17th april 1948 were all executed prior to the introduction of the income-tax act in saurashtra. the department did not carry the matter any further in respect of the assessment for that year. in respect of the subsequent assessment ..... in the assessment year 1949-50, the deduction for interest paid was allowed to the assessee firm. in 1950-51 it was disallowed by the income-tax officer but on appeal to the appellate assistant commissioner, the assessee was successful and the interest paid on those amounts were allowed in the assessment of ..... sine qua non of the matter. delivery can be symbolical. this court had occasion to deal with a similar question in chimanbhai lalbhai v. commr. of income-tax (central) bombay : 34itr259(bom) and in view of what this court there decided, it is not necessary to dwell any more on the ..... lilavati on her own behalf and on behalf of her children. he also held that the documents were all executed prior to the introduction of income-tax in saurashtra. the department accepted that position also for the subsequent year 1951-52. so that in the first year, the department did not ..... paid on the amount of these gifts and that was allowed by the department. in respect of the next assessment year 1950-51, the income-tax officer disallowed the amount of interest claimed as a deduction but in appeal the appellate assistant commissioner allowed the deduction and the contention that was .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-30-1958
Reported in : 35ITR537(Bom)
..... ,016 for the purpose of determining the amount of income-tax and super-tax payable by the assessee shareholders on his total income and if so, whether that smaller portion of rs. 6,31,527 is liable to be taxed at the rates applicable to 'capital gains' as laid down in section 17 (6) of the income-tax act, 1922.' we may state that the same question of ..... section 23a dividend attributable to capital gains in the hands of the shareholders also at the rate appropriate to 'capital gains' as indicated is section 17 (6) of the act. the income-tax officer as we as the appellate assistant commissioner negatived that contention. the matter was carried in appeal by the assesses to the tribunal and the tribunal also dismissed that contention ..... , was as under : '23a. power to assess individual members of certain companies. - (1) where the income-tax officer is satisfied that in respect of any previous year the profits and gains distributed as dividends by any company up to ..... total income shall be - (i) income-tax and super-tax payable on his total income as reduced by the amount of such inclusion, had such reduced income been his total income....' 9. clause (ii) has been altered. it relates to rates. section 23a as it stands today has also been recast. the material part of the section as it stood before its amendment by the finance act, 1955 .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-30-1958
Reported in : 36ITR18(Bom)
..... the partners in the sub-partnership or the sub-firm have a right to apply for registration of the sub-partnership under section 26a of the income-tax act. that was the view expressed in that case in the judgment delivered by mr. justice kapur of that high court (as he then was). ..... deduction. in all case of tax, what has got to be considered is what is the income of the assessee, and when that question arises what ..... falling within the provisions of the act, he would be entitled to urge that his real income should be considered and if a certain amount is to be deducted in order to ascertain his real income, such a deduction would have to be made notwithstanding that the income-tax act made no provision for such a ..... has got to be considered is the real income and not any artificial income, and for the purpose ..... 1947, were to be applicable to and binding on them. in substance and in effect, that was an agreement of partnership within a partnership. the income-tax officer decided that the arrangement between the assessee and the four other persons was only of the nature of an apportionment of profits after the assessee .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-01-1958
Reported in : 36ITR25(Bom)
..... is in the affirmative, whether they represent an item of expenditure permissible under the provisions of section 10(2)(xv) of the indian income-tax act, 1922, in computing the assessee's income of that 'previous year' from its managing agency business ?' 13. although we have dwelt on the facts at some length, the ..... is placed on the effect of the entries against the assessee firm, we may refer to what their lordships of the privy council said in an income-tax case though in a somewhat different context. what their lordships in effect opined was that the revenue is not entitled to take a mere book entry ..... strenuously argued before us by mr. g. n. joshi, learned counsel for the revenue, firstly that what the assessee did was in the eye of income-tax law nothing else than a voluntary gift by the assessee firm to the shipping companies of which they were the managing agents. it is also argued ..... later in our judgment. the judicial member accepted both the contentions of the assessee. in this view, the decision in the case of commissioner of income-tax v. chamanlal mangaldas wholly applied to the facts of the case. his opinion was that the agreement relating to payment of commission with the two ..... decidendi of that case. of this more hereafter. 2. the assessee, in this reference under section 66(1) made at the instance of the commissioner of income-tax, is the firm of messrs. shoorji vallabhdas & co. the assessment year is 1948-49 and the previous year ended on 31st march, 1948, during .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-27-1958
Reported in : 36ITR329(Bom)
..... 4. then the tribunal goes on to hold that the interest was not allowable deduction under section 10(2)(iii) of the income-tax act. then it adds : 'if, however, any income occurs on the shares or is deemed accrue on these shares under interest has to be allowed under section 12. as we have ..... paid on money borrowed for the purchases of shares in gannon dunkerley & co. ltd. which did not yield any dividend income, could be set off against other income under section 24(1) of the income-tax act ?'8. at the very outset of his argument, mr. palkhivala, learned counsel for the assessee, stated that he did ..... disallowed the deduction. we have often said in this court that in dealing with an enactment of all india importance and particularly the indian income-tax act, we would, as far as possible, prefer to take the same view that may have been taken by any other high court on ..... that the tribunal has recorded is that the shares were not purchased with a view to trading in them. incidentally, we may mention that the income-tax officer had observed that the investments were not for a proper business consideration nor for any 'sound investment consideration'. but we are concerned with the ..... that expression. mr. palkhivala has also drawn our attention to certain observations made by the supreme court in eastern investment co. ltd. v. commissioner of income-tax. in that case, their lordships held that the transaction before them was of such a nature as would fall within the purview of section 12(2 .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-04-1958
Reported in : AIR1961Bom5
..... have never been used with reference to the accounting year. he has also referred me to the notice of demand issued in pursuance of the provisions of the income-tax act wherein also the words 'income for the year ending 31st march 1952' have been used with reference to the assessment year and not the accounting year. it is unnecessary to quote here all ..... order1. this is a petition under article 226 of the constitution challenging the validity of notice dated april 2nd, 1957 issued in pursuance of section 34 of the income-tax act and for reliefs preventing the respondents from proceeding with re-assessment in pursuance of that notice. 2. the main grounds on which the petitioner has placed reliance are contained in ..... of messrs. durgaprasad ramcharan private ltd. he had according to him during that period two sources of income. in accordance with the provisions of the income-tax act, he was duly assessed to income-tax in respect of the said period. 5. some time in 1956-57 the income-tax officer had information that in 1950 there were three home savings deposit accounts in jodhpur commercial bank, bombay ..... before the court was 'whether in the circumstances of this case the notice of reassessment issued to the applicant under section 34 of the income-tax act was invalid or illegal for failure to specify that particular source of income that had escaped assessment?' 22. it is necessary before referring to the judgment of beaumont c. j. in that case to observethat in 1939 .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-25-1958
Reported in : AIR1959Bom93; (1958)60BOMLR1046; ILR1958Bom1213
..... a.c. must be exercised within a specific period, then the legislature would have so provided. but we look in vain for any provision in the income-tax act which lays down any period of limitation for the exercise of the appellate powers of the a.a.c. in our opinion, in exercising his discretion ..... second question is whether the addition of the sum of rs. 1,50,000/- by the appellate assistant commissioner was barred by section 34(3) of the income-tax act? now, the contention urged by mr. palkhiwalla is that section 34(3) lays down a period of limitation for making an order of assessment and that ..... the a.a.c. to exercise that power at any time.5. mr. palkhiwalla has referred to a judgment of the lahore high court, commr. of income-tax v. shah nawaz khan, reported in (b). that was a case which dealt with entirely different facts, and the principle which can be deduced from that ..... . would be debarred, according to mr. palkhiwalla, from making any order to the prejudice of the assessee which might result in the assessment made by the income-tax officer being increased. this is not a case of enhancement, and even though it is not a case of enhancement, mr. palkhiwalla argues that merely because ..... in the books of the assessee. the assessee appealed to the appellate assistant commissioner. the a.a.c. held in favour of the assessee that the income-tax officer was not justified in adding these two sums. but on looking to the accounts, he found that two items of sales had not been accounted for .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-19-1958
Reported in : AIR1959Bom102; (1958)60BOMLR748
..... civil procedure code to establish the illegality of the orders in question and to establish the fact that assets were not amenable for the recovery of the arrears of income-tax under section 46(2) of the income tax act. it was argued, however, by mr. laud at one stage in support of his application for amendment that in : 1956crilj129 the supreme court has held that on ..... upon is the one in purshoutam govindji v. b.m. desai : 1956crilj129 . from this decision it was argued that upon the construction put there on section 46(2) of the income-tax act, the arrears of income-tax are to be recovered as if they were arrears of land revenue, the 2nd respondent could proceed to recover them under the bombay city land revenue ..... in law. now the fresh ground sought to be added by the amendment was that inasmuch as no notice was served upon the 4th respondents under section 29 of the income-tax act either at the time of the assessment or thereafter an order made on the 4th respondents is invalid. the amendment also sought to introduce a further ground that the orders ..... the nominee of the partnership of messrs narandas kedarnath. unit 1950-51 the firm of bilasrai banarasilal and co. was assessed by the income tax authorities as a registered firm under section 23(5)(b) of the income-tax act, and the tax assessed in respect of that firm was paid by the two firms of the 4th respondents and messrs. narandas kedarnath upon the footing .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-20-1958
Reported in : AIR1959Bom148; (1958)60BOMLR851; ILR1958Bom1188
..... m.c. chagla, c.j.1. the question that arises in this reference is whether an income arising from a certain trust is exempt from tax on the ground that it falls within section 4 (3) (i) of the indian income-tax act. the trust in question was constituted on the diamond jubilee of mr. walchand hirachand, a well-known ..... purpose, them even the intervening period the trust continues to be a charitable trust the property is held on a charitable trust and the income from that trust is exempt from tax. 4. the second objection that is raised by mr. joshi is as regards the power conferred upon the trustees to prefer the employees ..... be carried out. if mr. joshi were right, no such trust could be set up, or if it were set up, the income from such a trust would have to pay tax. what has to be looked at is the dominant intention disclosed in the trust-deed. it is not necessary that the intention must be ..... which he helped to build up should be conducted in a particular manner, those are all side issues which do not affect the question of property or income. they undoubtedly help us to understand what the intention of the settlor was; and although it may be conceded that he was greatly interested in the employees ..... immediately carried out. so long as the income from the trust property is not spent on any non-charitable object and it is saved .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-24-1958
Reported in : AIR1959Bom156; (1958)60BOMLR856; ILR1958Bom1207
..... court which throws some light on this question and that is in eastern investments ltd. v. commr. of income-tax : 20itr1(sc) . the supreme court was considering section 12(2) of the income-tax act and the deduction permissible under that sub-section is in respect of 'expenditure incurred solely for the purpose ..... of making or earning such income, profits or gains' and mr. justice bose, at page 4 (of itr): (at p. ..... learned chief justice of madras, in a full bench sitting with mr. justice wallace and mr. justice beasly, interpreting this very section in commr. of income-tax v. somasundaram air 1928 mad 487, takes the view that 'if necessary, i should be prepared to hold that the only reasonable construction of the ..... was used for the purpose of the business.6. mr. joshi lays strong reliance on the judgment of this court in machinery . v. commr. of income-tax : air1957bom14 . in that case we were construing an entirely different sub-clause of section 10(2) and that was sub-clause (vi); and what ..... . in that case the assessee bank spent monies in investing the funds of the bank in certain securities which yielded interest which was free from tax, and the contention of the crown was that the bank was not entitled to deduct the expenses of investment because the securities which were purchased .....Tag this Judgment!