Court : Mumbai
Decided on : Feb-05-1999
Reported in : 1999(2)BomCR618; 98CompCas487(Bom)
..... view. there also what was under consideration was the claim of the unsecured creditors and claims under section 530(1)(a) read with the demand under section 178 of the income tax act.9. the question is what relief is to be granted in so far as the company application no. 116 of 1998 and company application no. 117 of 1998 are concerned ..... prevail over the rights of the secured creditors. a careful analysis of the said judgment would show that the issue whether an order passed under section 178 of the income tax act would have preference over the rights of secured creditors was not in issue before the apex court. in the case of imperial chit fund (supra) as already observed what was ..... contend that the claims of secured creditors are outside the winding up proceedings and consequently there can be no preferential right by income tax authorities under section 178 of the income tax act or the sales tax authorities under section 530 of the indian companies act. even otherwise, it is contended that the state has no preferential claim over the rights of secured creditors even under the ..... the claims of unsecured creditors and not over secured creditors. imperial chit funds (supra) is therefore an authority for the proposition that between unsecured creditors, the claim of tax dues under section 178 of the income tax act, would have preference over all the claims of unsecured creditors.7. that brings us to the second and third questions viz. whether section 178 of the .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-29-1999
Reported in : 2000(2)ALLMR195; 2000(2)BomCR501
..... fiscal india. it was decided that the solution to this limited problem lay in a process of allocation which was permitted by section 9(1) and explanation (a) of the income-tax act, 1961. for reasons of uniformity and simplicity it was decided to fix this allocation on the basis of 10% of the 10% prescribed by section 44-bb. the option in ..... done in the case of subcontractor was referable to the provisions of section 44-bb or not, it becomes necessary to see the provisions of section 44-bb of the income-tax act. it reads as under:-(1) notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43a, in the case of an assessee, being a nonresident ..... law would not be attracted.10. he further submits that change of law relied on by the respondent for application of clause 17.3 is section 44-bb of the income-tax act, which was introduced in statute-book in 1987 with retrospective effect from 1-4-1983. the learned counsel submits that section 44-bb does not apply to the assessment of ..... the notices issued for reopening of the assessment, orders were passed by the authorities under the income-tax act in relation to the income-tax liability of the subcontractor and income-tax was imposed. in october, 1989 the subcontractor called upon the respondent to reimburse the amount paid by it towards income-tax assessed on it for the assessment years 1984-85 and 1985-86 on the basis of .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-30-1999
Reported in : 1999(4)ALLMR52; 1999(3)BomCR691; 2000(1)MhLj637
..... under section 148 read with section 147 of the income tax act, 1961, it would not be valid and proper. shri bodke wanted to submit that the inquiry whether the action contemplated is under section 147(a) or under section 147(b ..... revenue receipts. this can, hardly, be a ground for reopening assessment under section 147 read with section 148 of the income tax act, 1961 as it then was.13. income tax act is a taxing statute. the provisions of this act will have to be construed strictly. therefore, unless there is a clear case, which would give the assessing officer to exercise the jurisdiction to reopen the assessment ..... taxable and accepted the contention of the assessee without proper application of mind, he has jurisdiction to re-open the case under section 147 read with section 148 of the income-tax act.4. section 147, as it stood before the amendment, which came into effect from 1-4-1989, was as under:'if (a) the assessing officer has reason to believe that ..... a capital asset and the amount received by her is in the nature of capital receipt. hence not taxable under the income tax act, 1961.'in the assessment year 1985-86, the petitioner disclosed in the income tax as well as in the wealth tax returns that she has received a sum of rs. 3,22,936/- from m/s. zuari agro chemicals ltd., in consideration .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-10-1999
Reported in : 240ITR12(Bom)
..... in not a discretionary trust and consequently the provisions of section 164(1) of the income-tax act, 1961, are not applicable ?'2. the assessee claimed before the income-tax officer that section 164(1) of the income-tax act, 1961 ('the act'), was not applicable in the case of the assessee-trust. the income-tax officer did not agree with the claim of the assessee. being aggrieved, the assessee ..... tribunal has referred the following question of law for the opinion of this court for the assessment year 1978-79 under section 256(1) of the income-tax act, 1961 :'whether, on the facts and in the circumstances of the case, and having regard to the terms of the trust deed dated may 5, 1973, the tribunal was ..... carried the matter before the commissioner of income-tax (appeals), who allowed the claim of the assessee. the ..... commissioner of income-tax (appeals) found that the trust was created .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-20-1999
Reported in : 240ITR101(Bom)
..... company to the assessee nor was it a salary paid or allowed to the assessee in the year under consideration and, therefore, cannot be taxed under section 15 of the income-tax act. it is against this background that the present question of law is referred to this court for its opinion.9. we have heard at length ..... annuity policy on the life of the assessee cannot be regarded as a perquisite within the meaning of section 17(2) of the income-tax act, 1961, and consequently cannot be included in the assessee's income under the'head 'salaries' ?'2. the facts which are relevant for the purposes of this reference may be summed up as follows ..... ranjana desai, j. 1. by this reference under section 256(1) of the income-tax act, 1961, the income-tax appellate tribunal has referred the following question of law to this court for opinion at the instance of the revenue ;'whether, on the ..... allowed. however, it was partly allowed on some other count with which we are not concerned in this reference.8. the matter was carried to the income-tax appellate tribunal by the assessee. the tribunal came to a conclusion that in the facts and circumstances of the case the premium of the insurance policy paid ..... mr. r. v. desai, learned counsel for the revenue. none appeared for the assessee. our attention is drawn to the decision of this court in j. h. doshi v. cit .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-31-1999
Reported in : 1999(4)ALLMR625; (2000)158CTR(Bom)55; 240ITR688(Bom)
..... court in madhya pradesh industries ltd. v. ito : 57itr637(sc) . that was a case under section 34 of the indian income-tax act, 1922 (corresponding to section 148 of the income tax act, 1961). the notice was challenged by the assessee before the high court by filing writ petition. the high court dismissed the writ petition ..... limine. the supreme court held that where, upon the issue of a notice under section 34 of the indian income-tax act, 1922, a claim was made in a writ petition that the income-tax officer had no power to issue the notice and that the power was exercised not for any legitimate purpose for ..... d.k. deshmukh, j. 1. by this writ petition, the petitioners challenge the notice issued by the income-tax officer under section 148 of the income-tax act, 1961 ('the act'). rule was issued in this case on november 20, 1990, and by an interim order, further proceedings pursuant to the said notice were ..... otherwise. 8. situated thus, we are left with no option but to quash and set aside the impugned notice issued by the income-tax officer under section 148 of the act and make the rule absolute in the terms of prayer clause (a) of the petition. 9. the writ petition is disposed of ..... on being prima facie satisfied that if the averments of the petitioners in the writ petition challenging the jurisdiction of the income-tax officer are accepted, the notice under section 148 of the act may not be tenable. about ten years have passed since the rule is issued. the matter is on board .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-09-1999
Reported in : 240ITR750(Bom)
..... by this reference under section 256(1) of the income-tax act, 1961, at the instance of the revenue, the income-tax appellate tribunal has referred the following question of law to this court for opinion : 'whether, on the facts and in the circumstances of the case, share income in the name of smt. jasotiben ramchand lalwani from ..... representative of the hindu undivided family comprising her two sons and herself.6. an identical controversy came up for consideration before this court in income-tax reference no. 395 of 1987--cit v. s. r. kirloskar (india). in that case, this court, summed up the legal position emerging from the decision of the ..... income-tax officer was also confirmed by the income-tax appellate tribunal. the order of the tribunal was not challenged and thus that decision attained finality. despite that, in the appeal ..... of herself and her two sons and not in her hands in her individual capacity. though this claim was accepted by the income-tax officer in theoriginal assessment, it was rejected in reassessment for the assessment years 1968-69 to 1974-75. on appeal by the assessee, the ..... and not a hindu undivided family. the answer, in our opinion, in no uncertain terms, is in the negative. the income-tax officer rightly rejected the claim of the assessee by reopening the assessments for the assessment years 1968-69 to 1974-75 which order of the .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-13-1999
Reported in : 240ITR762(Bom)
..... dr. b.p. saraf, j. 1. by this reference under section 256(1) of the income-tax act, 1961, the income-tax appellate tribunal has referred the following question of law to this court for opinion :''whether, on the facts and in the circumstances of ..... in reversing the same.11. we have also given our careful consideration to the submission of mr. mehta that the income tax officer has no power under section 36(1)(iii) of the act to examine the reasonableness of the rate of interest paid by the assessee on borrowings and to disallow any part of ..... as interest on borrowings. we find it difficult to accept the above contention because, in our opinion, the income tax officer is undoubtedly entitled, while considering the claim for deduction under section 36(1)(iii) of the act to examine whether the amount paid as interest is really 'interest' and if he finds that it is ..... the assessments for the assessment years under reference were reopened under section 147(a) of the act. as in the assessment for the assessment year 1975-76, in reassessment orders made for these three assessment years, the income-tax officer allowed deduction of finance charges calculated at the rate of 15 percent. per annum as interest ..... this case that what is allowable as a deduction under section 36(1)(iii) of the act is any sum paid by way of interest in the commercial sense. this determination has to be done by the income-tax officer having regard to the facts and circumstances of each case. there can be no straitjacket .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-03-1999
Reported in : 241ITR6(Bom)
..... the facts and circumstances of the case and in law, the tribunal was right in holding that the assessee was entitled to deduction under section 80l of the income-tax act in respect of the interest income on fixed deposits with banks included in the assessee's share of profit derived by the assessee from the firm of v. m. jog and co., pune ..... profits as well as proportionate share of interest income. in respect of the proportionate share of interest income, the assessee claimed deduction under section 80l of the income-tax act ('the act'), for the assessment years 1976-77 and 1978-79. 3. the income-tax officer disallowed the said claim. on appeal by the assessee, the appellate assistant commissioner of income-tax allowed the said deduction following the judgment of ..... the allahabad high court in cit v. brij raman das : 118itr397(all) . 4. the revenue carried appeals .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-30-1999
Reported in : 2000(1)ALLMR188; 241ITR865(Bom)
..... different high courts on the subject. the supreme court considered the decisions of the various high courts which had held that once valid proceedings under section 147 of the income-tax act are started, the income-tax officer has the jurisdiction and duty to complete the whole assessment de novo. the supreme court considered the observations in its earlier decision in v. jaganmohan rao v ..... years 1987-88 and 1988-89 on the basis of the returns submitted by him pursuant to the notices under section 148 of the income-tax act, 1961 ('the act'), and to refund the amount paid by him as advance tax which, according to him, is in excess of the amount due as per the returns submitted pursuant to the said notices. the contention of ..... the returns the petitioner claimed assessment at a figure lesser than the one disclosed by him for the purpose of advance tax, which by virtue of section 219 is treated as tax paid on the income of that year. section 219 of the income-tax act reads as follows :'any sum, other than a penalty or interest paid by or recovered from an assessee as advance ..... reopened by issuance of a notice under sub-section (2) of section 22 of the indian income-tax act, 1922 (corresponding to section 148 of the act), the previous under assessment is set aside and the income-tax officer has the jurisdiction and duty to levy tax on the entire income that had escaped assessment during the previous year. the supreme court observed that an order made in .....Tag this Judgment!