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Judgment Search Results Home > Cases Phrase: income tax act Year: 1949 Page 1 of about 185 results (0.174 seconds)

Mar 25 1949 (PC)

Broach Co-operative Bank Ltd. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Mar-25-1949

Reported in : AIR1950Bom45

..... re-formulate question 1 which will therefore, read as follows :'whether in the circumstances of the case the interest on borrowings, for the purpose of section 8, income-tax act, should be computed on the basis that investments were made proportionately out of capital and deposits?'6. we, will, therefore, answer question 1 in the affirmatives ..... two questions arise for our determination in this reference. one is with regard to the true effect of proviso 1 to section 8, income-tax act to the extent that it is applicable to the facts of this case. now, section 8 deals with one of the heads which are chargeable to ..... there are two decisions of two high courts which have taken conflicting views on this point. there is the decision of the madras high court reported in commissioner of income-tax, madras v. madras provincial co-operative bank ltd. i. l. r. (1943) mad. 390 : a.i.r. 1943 mad. 152. that court has ..... straightaway point out that this part of the proviso with which i am dealing is extremely clumsily drafted. the proviso suggests as if income-tax was payable on an outgoing but the true meaning--and that is not disputed--of this part of the proviso is that it contemplates a permissible deduction ..... the rest of the section is not material. then we come to proviso 1, and to the extent that it is material, it provides that no income-tax shall be payable in respect of any interest payable on money borrowed for the purpose of investment in the securities by the assessee. now, i might .....

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Mar 22 1949 (PC)

Sir Kasturchand Ltd. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Mar-22-1949

Reported in : AIR1950Bom1

..... not in the course of assessment under section 23, but it has been made under the special powers given to the income-tax officer under section 23a, and there is no provision in the income-tax act which lays down the period of limitation after which no order can be made under section 23a. therefore the order under ..... at rs. 48,586 for 1941-42, rs. 82,233 for 1942-43, and rs. 61,872 for 1943-44. the income-tax officer made an order under section 23a (1), income-tax act on 20th may 1946 for the previous year 1940-41 and on 18th may 1946 for the following two years that the sums of ..... to the third question, that question relates to the question of limitation and it is argued that the order made by the income-tax officer is barred under section 34 (2) of the act. under that sub-section, no order of assessment under section 23 can be made after the expiry of four years from the ..... as to the construction of the section itself, undoubtedly that would raise a question of law in respect of which we can exercise our advisory jurisdiction. the income-tax tribunal has construed the section, in our opinion, rightly, and, as i suggested in the earlier part of the judgment, the smallness of the profit has ..... 23a of the act. now, in my opinion, whether the losses incurred by the company in earlier years or the smallness of the profits made is such as to make the payment of a dividend or a larger dividend than that declared unreasonable, is one entirely for the satisfaction of the income-tax officer. it is .....

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Sep 14 1949 (PC)

Keshav Mills Co. Ltd. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Sep-14-1949

Reported in : AIR1950Bom166; (1950)52BOMLR72; [1950]18ITR407(Bom)

..... had accrued outside british india was capitalised and was brought into british india in the shape of capital and not in the shape of income, then that amount could not be taxed as income under the income-tax act. this case would only have application if mr. kolah can satisfy us that the profits which accrued in baroda in the books of account of the assessee ..... deemed to have been received in baroda and not merely to have accrued or arisen in baroda. that contention again is not sound, because the legislature has in the income-tax act drawn a clear distinction between accrual or arising of income and the receipt of income, and i see no reason why when accounts are kept on mercantile basis it must be held that ..... or advances made by the assessee to the partnership firm at penang be said to be income accruing or arising in british india within the meaning of s. 4(1), income-tax act ?(2) if the answer to the above question is in the negative and if the income is one accruing or arising without british india to a person resident in british india is ..... the income one received in british india so as to make it taxable under s. 4 read with .....

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Mar 18 1949 (PC)

Kikabhoy Chandabhoy and ors. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Mar-18-1949

Reported in : AIR1950Bom6

..... the tribunal and before us is that they were entitled to relief not only with regard to income-tax but also with regard to super-tax. the tribunal rejected the contention of the assessees, and thereupon a reference has been made to us under section 66 (1), income-tax act; and two questions have been framed by the tribunal for our consideration.4. now the first ..... of the assesses and refused to grant any relief either under section 25 (3) or section 25 (4) of the act.3. then the matter came before the income-tax tribunal. the income-tax tribunal took a different view from the view taken by the income-tax officer and they held that there was a succession to the business within the meaning of section 25 (4) on ..... assessment of this firm for the year 1942-43 a claim was made that the firm was entitled to relief both with regard to income-tax and super-tax under section 25 (3) and section 25 (4) of the act. the contention was that there was either a discontinuance or a succession within the meaning of either of these two sub-sections on 1st ..... payable in respect of the broken period contemplated by section 25 (4) of the act. the contention of the assessees before the income-tax officer was that they were entitled to relief both with regard to income-tax and super-tax. the income-tax officer came to the conclusion that the contention of the assessees was not well-founded and they were not entitled to any relief. all .....

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Mar 25 1949 (PC)

Commissioner of Income-tax Vs. S.N. Bhayya

Court : Mumbai

Decided on : Mar-25-1949

Reported in : AIR1950Bom26

..... undivided family to a member of the family and, therefore, section 9(1)(iv) has no operation. a hindu undivided family can be assessed to tax under the income-tax act as a unit and the assessee has been so assessed in the year of assessment. it is perfectly true that a hindu widow, although she is ..... maintenance pursuant to the decree, the assessee claimed the payment as a permissible allowance under section 9(1)(iv), income-tax act. the tribunal took the view that this was a permissible deduction, and the commissioner of income-tax has come before us on a reference.2. in a very recent decision reported in prince khanderao gaekwar v. ..... .3. mr. joshi has relied on a decision of this court which was delivered before section 9(1)(iv) was incorporated in the act, and that is a decision reported in commissioner of income-tax, bombay v. makanji 39 bom. l. r. 907: a.i.r. 1937 bom. 479. in that case sir john beaumont ..... as i have stated earlier, no question arose with regard to the exemption under section 9(1)(iv) of the act.4. mr. joshi has also relied on a decision of the privy council reported in commissioner of income-tax v. bhagwati 49 bom. l. r. 678: a. i. r. 1947 p. c. 143, and that ..... held that in computing the income of a hindu undivided family for purposes of income-tax, moneys paid to the widow of a deceased coparcener of the family as maintenance and residence allowance cannot be deducted, even though the amount .....

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Mar 24 1949 (PC)

Jethabhai Hiraji and Co. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Mar-24-1949

Reported in : AIR1950Bom29

..... .j.1. the question that arises on this reference is whether a certain amount paid by an employer to his employees is a valid deduction under section 10 (2) (xv), income-tax act, 1922, and in order to determine it we have got to consider whether it is an expenditure laid out or expended wholly and exclusively for the purpose of the business ..... or not has to be considered. the excess profits tax act gives wider powers to the excess profits tax officer and that is that although a deduction may be permissible under the income-tax act, he may still disallow it under the excess profits tax act. but in this case as the deduction was disallowed under the income, tax act itself, no question arose of disallowing it under rule 12 ..... of schedule 1 of the act, and, therefore, no question as to the necessity of the permission of ..... to the requirements of the business of the assessee. the basis of the excess profits tax act is that substantially the very income which is liable to tax for income-tax is also liable to tax for excess profits tax under the excess profits tax act, and, therefore, in order to arrive at the total income of the assessee for both purposes the question whether deductions are permissible under section 10 .....

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Mar 22 1949 (PC)

Commissioner of Income-tax Vs. B.B. and C.i. Railway Co-operative Mutu ...

Court : Mumbai

Decided on : Mar-22-1949

Reported in : AIR1950Bom43

..... ) there is an explanation and that explanation is that the profits of a co-operative society shall not be deemed to include any income, profits or gains from investments, dividends and other sources referred to in section 12, income-tax act. now, it is not disputed before us that the assessee is a co-operative society. every policy-holder is a member of the ..... mutual death benefit society for indian staff, limited, bombay, is exempt from income-tax under a notification issued by the central government under section 60, income-tax act. under section 2(6c) of the act, the profits of any business of insurance carried on by a mutual insurance association is income for the purpose of tax, and section 10(7) provides a special method of computing the profits ..... and gains of any business of insurance and the manner in which tax is to be paid on those ..... has got to submit one unit of income, a sort of notional or artificial income, as provided in the schedule to the act. then under section 60 of the act, certain power is given to the central government to exempt classes of income or the whole or any part of the income of any class of persons in respect of income-tax, and this power can be exercised .....

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Mar 25 1949 (PC)

Phaltan Sugar Works Ltd. Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Mar-25-1949

Reported in : AIR1950Bom61

..... such. now, i refuse to read clause (15) and (16) of the agreement as bringing about the same result as section 4, sub-clause (3), income-tax act. sir jamshedji has argued that the raja of phaltan was all powerful and that he combined in himself the executive, the legislature and even the judiciary, and therefore ..... a rupee on the net profits of the said sugar factory. in calculating the net profits the usual deductions in respect of depreciation etc., permissible under the income-tax act for the time being in force in phaltan state shall be allowed. now, as i read these two clauses, all that they mean is that although ..... there may be a liability on the company to pay tax under the income-tax act, the phaltan state agrees not to recover that tax from the assessee company for a period of ten years or, to put it in a different language, the company and the ..... of orders made by the appellate tribunal, and the advise that we have to tender is based upon the provisions of law as contained in the income-tax act. we are not functioning as a civil court dealing with contractual rights of parties, and i take the view that it is not open to us ..... to construe the income-tax act in the light of any agreement that was arrived at between the phaltan state and the assessee company. it may be that the assessee company has .....

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Sep 19 1949 (PC)

Jesingbhai Ujamshi Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Sep-19-1949

Reported in : AIR1950Bom198; (1950)52BOMLR94; [1950]18ITR23(Bom)

..... on by these partners for the purpose of the indian income-tax act.'having reformulated that question we answer the question in the affirmative. with regard to the second question, we agree with the tribunal that it is a question of fact, and ..... and come to the conclusion whether the two businesses carried on by the partners in this case constituted two different firms or one firm for the purpose of the indian income-tax act.4. we will reformulate the first question submitted to us in the following terms:'whether in law common partners can constitute two separate firms in respect of different businesses carried ..... has taken of the law and we are of the opinion that there is nothing in law to preclude common partners constituting two separate firms for the purpose of the income-tax act. whether there are two firms or only one firm is a question of fact which can only be determined by the tribunal itself. as the tribunal has not determined the ..... who carry on the particular business. the tribunal is right that that is the correct position, under the ordinary law. but under the indian income-tax act, the position is different because a firm is recognised by the indian income-tax act as an assesses as much as an individual or a joint hindu family. it is a taxable unit, and even when a firm is .....

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Sep 15 1949 (PC)

The Porbander State Bank Vs. Commissioner of Income-tax

Court : Mumbai

Decided on : Sep-15-1949

Reported in : AIR1950Bom220; (1950)52BOMLR81; [1950]18ITR134(Bom)

..... consider is whether the interest that was paid by the assessee to its depositors in porbander was an interest which was liable to tax under the income-tax act. what was relied upon by the tribunal which came to the conclusion that the bank was not entitled to this deduction was section 42 of ..... part of the lender that his deposit would be transferred to india for the purposes of earning income on it. if that be so, then the interest earned by the depositors was not chargeable under the indian income-tax act and there was no obligation upon the bank to deduct interest under section 18 (3a).4. ..... the act. section 42 deals with notional income and one type of notional income which is referred to in that section is the income which arises from any money ..... the assessee in this reference is the porbander state bank and it is assessed to income-tax under the provisions of the government trading taxation act, 1926. in the year of account, which is 1st november 1940, to 31st october 1941, the gross income of the bank was rs. 92,064 and it received in british india interest ..... india and had earned interest on that money. the federal court in a recent judgment reported in wadia v. commissioner of income-tax, bombay has laid down that if the borrower without the knowledge of the lender brings money into british india and that money earns .....

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