Court : Mumbai
Decided on : Sep-18-1942
Reported in : AIR1943Bom98; (1943)45BOMLR115
..... subsisting, because it was merely a branch of a still subsisting business, then the expenses would be allowable under section 10(2) (ix) of the indian income-tax act. if, on the other hand, the cotton jatha business was a distinct business, and it had ceased to exist before the year of assessment, the ..... can be said that the commission of one per cent. accrued or arose in british india within the meaning of section 4(1) of the indian income-tax act. the commission payable at the end of the year was paid in indore and not received in british india.4. we were referred to a ..... john beaumont, kt., c.j.1. this is a reference made by the commissioner of income-tax under section 66(2) of the indian income-tax act of 1922, raising two quite separate and distinct questions.2. the first question is :whether the commission of one per cent. ..... for the commissioner to decide, and the only question raised, and the only question that can be raised, is :whether there was material before the income-tax officer on which he could come to the conclusion that the cotton jatha business, in respect of the legal expenses for which allowance has been claimed ..... realised by the assessees on the value of the hundis collected by them in bombay in respect of the cloth sold by their indore shop to merchants in bombay is liable to be assessed to payment of income-tax and super-tax .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-22-1942
Reported in : (1943)45BOMLR125
..... other footing he could allow a set off in respect of that loss against the business of s. 1991-92. it must be presumed that the income-tax officer was aware of the relevant provisions of the income-tax act.19. thereafter, on march 22, 1938, a notice under section 34 was issued on the assessees to start reassessment proceedings. the assessees appeared before the ..... valid.5. the second question is :whether in the circumstances of the case a part of the applicant's income had escaped assessment within the meaning of s, 34 of the indian income-tax act, so that it could be re-assessed by the second income-tax officer ?6. the year of assessment is 1936-37, which is the maru year 1991-92. in the original ..... force.22. under section 34 the relevant words are that if for any reason income, profits or gains chargeable to income-tax has escaped assessment, the income-tax officer may at any time within one year adopt proceedings by issuing a notice similar to the one under section 22 of the indian income-tax act.23. the first case on this point, to which our attention was drawn ..... john beaumont, kt., c.j.1. this is a reference made by the income-tax appellate tribunal (bombay bench) under section 66 of the indian income-tax act, 1922, and it raises two questions relating to a further assessment made on the assessees under section 34 of the indian income-tax act.2. the first question, which presents no difficulty whatever, is :whether in the circumstances of this case .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-25-1942
Reported in : AIR1943Bom116; (1943)45BOMLR159
..... in point, it favours the view that a physical division of the property is required.18. the assessee to pay costs.kania, j.19. the relevant facts, sections of the income-tax act and authorities cited at the bar have been referred to in the judgment just delivered by the learned chief justice.20. the question for consideration is whether on the construction ..... that they had distinctly in mind the dayabhaga system, under which no division in interest is necessary.17. in my opinion, on the words of section 25a of the indian income tax act we ought to answer the question put to us in the affirmative, because there has been no physical division of the joint family property. the authorities in india are conflicting ..... are in conflict. the first one, decided on june 22, 1934, toy mr. justice addison and mr. justice sale, is saligram ramlal v. commsr. of income tax, and the bench held that section 25a of the indian income-tax act contemplates an actual partition by metes and bounds of the joint family property, and not a mere change of the coparcenary to a tenancy in ..... coming to section 25a, it is to be noticed that a joint hindu family is one of the taxable units under section 3 of the indian income-tax act, and that section 14(1) provides that the tax shall not be payable by an assessee in respect of any sum which he receives as a member of a hindu undivided family, that, of course .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-30-1942
Reported in : AIR1943Bom122; (1943)45BOMLR168
..... , he is entitled to be heard on that question before the income-tax officer makes his order. the scheme of the income-tax) act is that the assessment for each year is self-contained. bearing that in mind it appears difficult to accept the commissioner's contention as advanced in ..... is good for all time to come, unless the party himself moves and takes steps to get that decision set aside. on a plain reading of section 43 of the income-tax act that view appears to put the burden altogether on the wrong foot. under section 43 before a person can be held liable as agent and proceedings are taken against him ..... stated by way of introduction are few. the assessment year is the year 1935-36, and the assessees were assessed as the statutory agents, under section 43 of the indian income-tax act, 1922, of one mahavirprasad vishwanath. for the assessment year 1932-33 a notice had been given under section 43, and the assessees had been held to toe the statutory agents ..... , who made the assessment order dated january 3, 1940, was a duly appointed income-tax officer entitled in law to make the said order mr. gondalia was an assistant income-tax officer on the relevant dates. the indian income-tax act in section 5 deals with the appointment of income-tax officers, but does not mention assistant income-tax officers. they are, we are told, in a lower grade, drawing, naturally .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-23-1942
Reported in : 11ITR67(Bom)
..... for the year 1938-39. as far as we can see, there is nothing in section 34 or any other provision of the income-tax act to prevent an income-tax officer in such circumstances to take action for re-assessing the assessee, provided he does so under conditions mentioned in that section, and ..... in both these cases their lordships held that an assessee had no right of appeal from an order passed by the commissioner of income-tax under section 64(3) of the income-tax act; and also that there was no power in the high court on interfere with such an order, on a reference under section ..... assessment before the commencement of the ordinance shall be or continue to be invalid be reason of anything contained in section 64 of the indian income-tax act, 1922. we therefore think that, as long as the appellants re-assessment proceedings were started before the commencement of the ordinance and were completed ..... an assessment before the commencement of the ordinance shall be or continue to be invalid by reason of anything contained in section 64 of the indian income-tax act, 1922. the words 'before the commencement of the ordinance' do not limit its operation to the proceedings taken from april 1, 1939 alone. ..... sort. that amounts to saying that the appellant had a sufficient cause or justification for not complying with the notices. but section 27 of the income-tax act requires an assessee to prove that he was prevented by a sufficient cause from complying with the terms of a notice under section 22(4). .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-30-1942
Reported in : 11ITR104(Bom)
..... , he is entitled to be heard on that question before the income-tax officer makes his order. the scheme of the income-tax act is that the assessment for each year is self-contained. bearing that in mind it appears difficult to accept the commissioners contention as advanced in the ..... is good for all times to come, unless the party himself moves and takes steps to get that decision set aide. on a plain reading of section 43 of the income-tax act that view pears to put the burden altogether on the wrong foot. under section 43 before a person can be held liable as agent and proceedings are taken against him ..... be stated by way of introduction are few. the assessment year is the year 1935-36, and the assessees was assessed as the statutory agents, under section 43 of hate income-tax act, of one mahavirprasad vishwanath. for the assessment year 1932-33 a notice had been given under section 43, and the assessees had been held to be the statutory agents. no ..... made the assessment order dated the january 3, 1940, was a duly appointed income-tax officer entitled in law to make the said order.'mr. gondalia was an assistant income-tax officer on the relevant dates. the income-tax act in section 5 deals with the appointment of income-tax officers, but does not mention assistant income-tax officers. they are, we are told, in a lower grade, drawing, naturally, a .....Tag this Judgment!
Court : Allahabad
Decided on : Jan-17-1942
Reported in : 10ITR131(All)
..... the only question which we have to decide in this reference under section 66 (3) of the income-tax act is as follows :'whether is was not obligatory upon the income-tax officer to strike off unnecessary portions out of four capacities in which an assessee could be assessed to clearly indicate in which capacity the assessee was required to submit the ..... to whom the notice is sent. dr. katuju on behalf if the assessee cibteds that having regard to the provision of section 3 of the act this duty lies upon the income-tax authorities. section 3 enacts that tax shall be charged on 'every individual, and hindu undivided family, company, firm and other association of individuals's and dr. katjus contention is that there ..... return. if so, whether the notice under section 22 (2) of the act [with was enclosed with the petition under section 66 (2)] issued by the income-tax officer without indication it, and the assessment following it, were wholly void ?the notice which is issued under section 22 (2) of the ..... has been pointed out by him, a form 8s prescribed by statute for the return of income-tax, but there is no statutory form for the notice which is issued under section 22 (2) and there is nothing whatsoever in the act to support the contention which has been advanced before us on behalf of the assessee. the notice under section 22 (2 .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-15-1942
Reported in : AIR1942Bom289; (1942)44BOMLR618; 10ITR429(Bom)
..... be entitled to adopt the course they have adopted in this case is to defeat the intention of the legislature as disclosed in section 54 of the income-tax act. however, we can only gather the intention of legislature from the language used ; and, if the course of action adopted in this case, on ..... from so doing. in my opinion the public servant referred to in section 54 is a public servant to whom disclosure has been made under the income-tax act.9. then it is said that in point of fact the seizure of this document, exhibit z-44, by the police was illegal, and, that ..... . l.r. 236 and a full bench of the madras court in rama rao v. venkataramayya  mad. 969. held that section 54 of the income-tax act did not preclude the giving in evidence of the documents referred to, provided proper evidence of them could be given. in those cases the court was considering primarily ..... offence, there is an implied prohibition against its production by a public servant.6. in my opinion, there is nothing in section 54 of the income-tax act to justify the extreme view taken by the learned chief presidency magistrate that all the documents referred to in that section are made inadmissible in evidence. ..... to any friend to whom he chooses to make the disclosure. all that the section means is that the income-tax authorities are to regard communications made to them for the purposes of the income-tax act as being confidential, the object, no doubt, being to enable people to feel that they can freely state .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-15-1942
Reported in : (1944)46BOMLR189
..... at. fort william in bengal on a reference by the respondent, at the appellant's request, under section 66(2) of the indian income-tax act, 1922, with a statement of the case and the opinion of the respondent rejecting the appellant's claim to exemption. the question of law ..... 49,500 received by the assessee as his remuneration as mutawalli was ' agricultural income' within the meaning of section 2(1) of the income-tax act?'for the assessment year 1938-1939 the appellant was assessed for income-tax purposes on an amount which included the sum of rs. 49,500 under the ..... head of salaries, which was the appellant's remuneration as mutawalli for the year of account and included both current salary and arrears. it is admitted that the income ..... appellant's contention, and their lordships agree with their conclusion.4. the appellant's counsel referred to the recent decision of this board in income-tax commissioner, bihar and orissa v. maharajadhiraj of darbhanga the judgment being delivered by lord macmillan. in that case a money-lender had lent ..... it thereby lost the benefit of the exemption. the board held that the result of the exemption is to exclude ' agricultural income' altogether from the scope of the act, howsoever or by whomsoever received, and that the nature of the assessee's business cannot affect the exemption.5. in the .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-04-1942
Reported in : (1943)45BOMLR9
..... of the high court be discharged and the case remanded to the high court for disposal after taking such action under sub-section (4) of section 66 of the indian income-tax act, 1922, as the high court may think fit in the light of this judgment. the respondent will pay the appellants' costs of this appeal. the costs already incurred in the ..... . this is an appeal by the assessees from a judgment of the high court at allahabad on a reference made under sub-section (2) of section 66 of the indian income-tax act, 1922. the question referred arises out of an assessment made for the year 1932-3 on the profits of a business carried on under the style of 'the saraiyar sugar ..... continue to be a hindu undivided family.11. on this section the contention of the commissioner is that for the purposes of the indian income-tax act members of an undivided hindu family cannot enter into a partnership in respect of a portion of the joint property which they have partitioned among themselves. but in their lordships' ..... appeal is concerned-the partnership agreement of the previous day was submitted to the income-tax officer together with an application that the firm should be registered under section 26a of the act and that the profits of the factory should be separately assessed as income of the registered firm. the income-tax officer on april 18, 1933, allowed this application and made an order of .....Tag this Judgment!