Court : Mumbai
Decided on : Sep-12-1951
Reported in : AIR1952Bom330; (1952)54BOMLR210; ILR1953Bom477
..... . as i said, it may accrue to b or it may even be received by b; but still, for the purpose of the income-tax act, the pertinent question that has got to-be asked is as to whose income it is. the difficulties which have been suggested by sir jamshedji are really difficulties more about apportionment than as to the principle that we ..... pertinent, is to enquire whose income it is which is sought to be taxed. i assuming that this particular income accrued on the 31st of december and till the 31st ..... the calendar year, and, therefore, agarwal & co. should be taxed in respect of the whole of that income.now, there is an obvious fallacy in the argument advanced by mr. joshi. in order to attract the provisions of the income-tax act, and in order to levy income-tax, it is not enough to enquire when a particular income accrues. what is more important, and what is more ..... it is not sufficient to bring them within the ambit of the income-tax act.another proposition which should also seem to me to be indisputable is that, if an income is assigned by a person to another, in respect of that income it is not the assignee who is liable to pay tax but the assignor. the reason again is obvious. the assignee receives the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Sep-11-1951
Reported in : AIR1953SC429; 20ITR594(SC)
..... become divided and necessary steps had been taken by the members to have and order passed under section 25a (1) of the income-tax act. the income-tax officer issued a notice in the name of the joint hindu family and served it on the appellant under section 34 read with section 22 ..... appear necessary, when proceedings are initiated under section 34 read with section 22 of the income-tax act, to issue notice to every member of the family. the position is as if the income-tax officer was proceeding to assess the income of the hindu undivided family as in 1939-40. in our opinion, therefore, that ..... of the income-tax act to make a return in respect of the escaped income and the appellant sent a return in response to that notice. thereafter, the income-tax officer made an assessment on the escaped income of rs. 37,098 and issued a notice of demand ..... court under section 66 (1) of the indian income-tax act. 2. briefly stated the facts are that a joint hindu family, of which the present appellant was the karta, was assessed to income-tax for the year 1939-40. in 1944 the income-tax officer considered that certain income of the family taxable in 1939-40 had ..... ) makes the position very clear. in contrast with that the proviso to section 26 shows that when the legislature wanted to give power to the income-tax authority to recover from others only on failure of payment by a party, it said so expressly. the absence of similar words in the proviso .....Tag this Judgment!
Court : Chennai
Decided on : Mar-13-1951
Reported in : AIR1952Mad47; 20ITR385(Mad); (1951)2MLJ452
..... commerce or manufacture. the receipt in the present case cannot be said to be a casual receipt in the sense in which that expression is used in the income-tax act. the expression 'casual' is defined in the oxford dictionary in these terms:'1. subject to, depending on, or produced by chance; accidental, fortuitous. ..... there is no provision for allowance for amortisation in respect of the minerals which are exhausted by the working of the mines under the indian income-tax act.6. the further contention of the assessee is that the profits derived from the sale of timber by the company are of a casual and ..... of mining rights in various plots of land to various persons and companies. the judicial committee held that the company was assessable to income-tax under the local income-tax-law on its receipts from the sales of mining rights after deduction of the cost of acquiring such rights. the company did not ..... that the mines are in course of being exhausted unless there is provided in the act that there should be a deduction from the income on that particular ground.'5a. ..... if the receipts are income, it is not material for tax purposes that that for which they are paid comes from a wasting property. if the payment ceases because the source ceases so does the tax. once it is established that the royalties are income within the meaning of the act it is not material .....Tag this Judgment!
Court : Chennai
Decided on : Sep-28-1951
Reported in : AIR1952Mad584; 22CompCas47(Mad); 21ITR96(Mad)
..... to this court under section 66 (1) of the income-tax act is: 'whether on the facts and circumstances of the case the premium received by the assessee at the time of issue of cash certificate is a revenue receipt and assessable to income-tax.' the assessee is the canara industrial and banking syndicate ltd ..... and premium received were carried by the respondent company to a reserve fund. the question was whether the discount and premium were assessable to income-tax as income arising from security. the special commissioners were of opinion that the receipt was a capital receipt and was not taxable and that decision was reversed ..... capital receipt and was not taxable. this contention was - not accepted by the department though different reasons were given for the conclusion by the income-tax officer, the appellate assistant commissioner and the appellate tribunal. the tribunal was of the view that as the assessee carried on normal banking business the ..... the extraordinarily good and sound credit position of the syndicate.on the facts in 'lomax v. peter dixon and son ltd.', (1943) 25 tax cas 353, it was no doubt found that the discount and premium payable at the time of redemption were capital sums; but very good reasons ..... the one or the other. the illuminating judgment of lord greene m. r. in 'lomax v. peter dixon & son, ltd.', (1943) 25 tax cas 353, is of considerable assistance in solving the problem and in determining the quality that ought to be attributed to the sum in question. as .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-17-1951
Reported in : 22CompCas38(Bom); 21ITR82(Bom)
..... . s. case, and the point raised by mr. joshi is that, whatever the contractual obligations of the parties may be, we are only concerned with the receipt of income within the meaning of the income-tax act. mr. joshi says that it may be that, when the assessee company received the cheque, the liability of the debtor - the government - was discharged. but notwithstanding the ..... mr. joshi's contention is that mere receipt of a cheque can never be receipt of income, and that income is only received when the cheque is cashed. when it was put to mr. joshi whether, in order to attract tax under the income-tax act, it was necessary that the assessee must always receive cash, mr. joshi had to concede that it must be cash ..... of third parties, and hand-notes from the debtor himself; and the question was whether the receipt by the assessee of those assets constituted a receipt of income within the meaning of the incom e-tax act. it is in this connection that lord macmillan, delivering the judgment of the board, stated at page 161 :- ',..... there is, of course, no doubt that a liability ..... discharge of the liability, the question still remains whether, on the receipt of the cheque, it could be said that the assessee company had received income which was liability to .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-18-1951
Reported in : 21ITR278(Bom)
..... suit had been filed in the calcutta high court for a declaration that the words 'or are deemed to accrue or arise' in section 4(1)(c) of the indian income-tax act and explanation 3 to section 4(1) were ultra vires the law making power of the indian legislature. in that case the plaintiff was a joint stock company incorporated in ..... no. 5 : unnecessary. 9. at the instance of sir jamshedji we raise a further question no. 6, viz,, 'whether the provisions of section 42 of the indian income-tax act to the extent that it concerns income, profits and gains accruing or arising indirectly is ultra vires of the legislature ?' having raised that question we answer it by saying that it is unnecessary to ..... taxable income is derived must be situate in the united kingdom or the person whose income is to be taxed must be resident there'. there, two clear territorial connections are emphasized by the learned law lord ..... federal court is that when you have a source from which income is derived in a particular country that source does constitute a sufficient territorial connection and the learned chief justice cites with approval the observation of lord herschell in colquhoun v. brooks where the learned law lord says, 'the income tax acts, however, themselves impose a territorial limit; either that from which the .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-02-1951
Reported in : 20ITR189(Bom)
..... to or reserved for or expended on behalf of the policy-holders within the meaning of rule 3(a) of the schedule to the income-tax act include the expenses incurred by the company for payment of income-tax, or provision for income-tax ?' 15. having re-framed the question thus we would answer the third question in the negative. 16. no order for the costs of ..... profits received by the participating members is perfectly correct. but the question that we have to determine is whether under the income-tax act such surplus which is returned to the participating member is made liable to tax. if which was taxed was profits or income in the ordinary sense, then undoubtedly the surplus which was returned to the participating member would not be liable to ..... paid by the company on behalf of the policy-holders. the policy-holders were not liable to pay tax either individually or as a body. under the income-tax act a company is recognised as a separate entity and as that separate entity its liability to pay tax arose. the assessee is therefore not entitled to claim a deduction with regard to the item of ..... tax and prior to the amendment of section 2(6c) of the income-tax act it is common ground that these profits were not subject to .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-02-1951
Reported in : 20ITR280(Bom)
..... secondly of running a ginning factory and lastly a share business. it is also found as a fact that only the money-lending business had paid tax under the income-tax act of 1918. on these facts the assessee claims the concessions laid down is section 25(4) on the ground that his business had been succeeded ..... interesting and ingenious argument based on the construction of section 25(4) of the income-tax act. the facts are that the assessee before us who is an undivided hindu family of one himatlal was assessed for the first time to tax for the assessment year 1921-22. this joint family was disrupted on the 26th ..... the high court of orissa has in the case of nopram ramgopal v. commissioner of income-tax, bihar and orissa, taken the view that it is the business which was in existence and which had been assessed to tax under the act of 1918 and not the person who is entitled to this relief. even the ..... high court of allahabad has in the case of gopi mohan and sons v. commissioner of income-tax, u. p. and c. p., in construing section 25( ..... of that business only. that sub-section does not contemplate any relief in respect of any other sources of income of the assessee who was carrying on the business which was assessed to tax under the act of 1918 and in respect of which there was a succession. the ingenious argument advanced by sir jamshedji .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-10-1951
Reported in : AIR1952Bom290; (1952)54BOMLR202; ILR1953Bom148
..... whether the issue of bonus shares by the assessee company in distribution of profits as dividends as required by section 23a (1) of the indian income-tax act?'now this question really answers itself and there is no dispute either between the commissioner and the assessee that the issue of bonus shares can never ..... court were : 1. whether the issue of bonus shares by the assessee company is distribution of profits as dividends as required by section 23a (1). income-tax act?2. it the answer to the first question is in the affirmative, whether any distribution of profits alter six months-of the annual meeting dated 14 ..... . the assessee company is a company in which the public are not 'substantially interested' within the meaning of the third proviso to section 23a, income-tax act. it appears that with regard to the assessment year 1942-43 (accounting year 1941) and the assessments year 1943-44 (accounting year 1342) general ..... cast upon it by that sub-section. no profits were distributed as dividends by the company at all, and therefore the order made by the income-tax officer under section 23a was a perfectly proper and competent order. but what is relied upon by the assessee company is, net the section but ..... 23a and he intimated to the company that be proposed to take action under that section. the company replied to this letter, but ultimately the income-tax officer passed orders under section 23a(1) in respect of accounting years 1941 and 1942 on 28-2-1948, and on 30-8-1948, respectively .....Tag this Judgment!
Court : Supreme Court of India
Decided on : May-04-1951
Reported in : AIR1951SC278; 21CompCas194(SC); 20ITR1(SC); 2SCR594
..... is not for the court to decide which of them should have been employed when the court is deciding a question under section 12(2) of the income-tax act. 17. it was argued on behalf of the respondent (basing the same on paragraph 7 of the appellant's application to the high court dated 5th ..... to him. in the absence of a suggestion fraud this is not relevant at all for giving effect to the provisions of section 12(2) of the income-tax act. most commercial transactions are entered into for the mutual benefit of both sides, or at any rate each side hopes to gain something for itself. the ..... this is an assessee's appeal from a judgment of the high court at calcutta delivered on a reference made to it under section 66(1) of the income-tax act. 2. the question submitted for the high court's opinion was as follows :- 'whether in the circumstances of this case, the interest paid by the assessee ..... of the company and was made on the ground of commercial expediency. it therefore falls within the purview of section 12(2) of the income-tax act, 1922 before its amendment in 1939. 19. this being an investment company, if it borrowed money and utilised the same for its investments on which it ..... on these debentures forms the subject-matter of the question before the court. the company claims to deduct this from its income as part of its working expenses under section 12(2) of the income-tax act, that is to say, to use the words of the section, as 'expenditure (not being in the nature of capital .....Tag this Judgment!