Court : Guwahati
Decided on : Aug-28-1958
..... , i have already shown that objections like these have not found favour in pronouncing upon the validity of the partnership instrument for purposes of registration under section 26a of the income-tax act. in the circumstances, therefore, my answer to the question under reference is, as held by the tribunal, in favour of the assessee. 13. as the department has failed, the ..... respect of cloth business continued to belong to the hindu family or it should be treated as a valid partnership document for purposes of registration under section 26a of the income-tax act, the document contained a resolution to keep the houses and house-sites joint, and that as there was no possibility to divide the cloth business consisting of cloth, furniture, ..... affirmative, then it follows as a matter of course that the assessee would be entitled to registration on the strength of the partnership instrument under section 26-a of the income-tax act. if the partnership is genuine, the partners as mentioned in the deed will be entitled to the benefit of the instrument during the assessment year under consideration. on the ..... of the hindu undivided family and a valid partnership was brought into existence thereafter and in allowing registration to the respondent on that basis under section 26a of the indian income-tax act?' 2. the relevant facts stated may be briefly recapitulated. a hindu undivided family consisting, of lachminarain singhania, the father, and four sons governed by the mitakshara school of hindu .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-14-1958
Reported in : AIR1959Bom304; (1958)60BOMLR847; ILR1958Bom1167
..... 'source' what we meant was the specific source from which a particular income sprung or arose. 5. the supreme court had to consider this judgment very recently and, ..... assess income from the other two branches at jalpaiguri and calcutta, because the i. t. o. had brought to assessment the business income of the assessee. therefore, it is clear that what we meant by 'source' was not source in the sense of head of income as used in the income-tax act. by ..... passage from our judgment: 'it is clear that the appellate assistant commissioner has been constituted a revising authority against the decisions of the income-tax officer; a revising authority not in the narrow sense of revising what is the subject-matter of the appeal, not in the sense ..... held by us to be irrelevant. this is perfectly clear, because in our judgment we considered the case of jagarnath therani v. commissioner of income-tax, (1925) 2 itc 4: air 1925 pat 408, and with respect, agreed with that judgment. in that case the assessee had three ..... with respect, it has approved of our judgment in narrondas manordass' case, : air1958bom35 and it has itself deduced the principle which emerges from this judgment. in commissioner of income-tax .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-23-1958
Reported in : 35ITR183(Bom)
..... deciding whether section 23a is applicable to this case and whether the income-tax officer has rightly exercised his power, this sum of rs. 1,63,377 should be ..... tribunal was concerned. now, in arriving at the assessable income of the assessee, the income-tax officer took into consideration a sum of rs. 1,63,377, which were profits, according to the department, earned by the assessee under section 42 (2) of the income-tax act and the contention of the assessee is that in ..... the trouble arises. now, the view taken by the department is that even under the second part of section 23a (1), the profits which the income-tax officer has to consider are profits which would include the sum of rs. 1,63,377. one has only to state the proposition to realise ..... section 23a. 2. now, let us first look at the scheme of section 23a. the first condition for the exercise of the power of the income-tax officer is the distribution of dividend by the company of less than the statutory percentage, which, at the relevant time, was 60 per cent. and ..... the substance of the matter is this that for the purpose of the second part of section 23a, when the income-tax officer is considering the smallness of the profits, when the income-tax officer is considering the profits and is considering whether it would be reasonable or unreasonable to declare a larger dividend, the .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-17-1958
Reported in : AIR1959Bom303; (1958)60BOMLR980; ILR1958Bom1172; 34ITR204(Bom)
..... . joshi says that the legislature wanted to tax this income whether in fact the income was received by the assessee or not; and, therefore, ..... that date, and therefore, it must be included in the total income of the assessee for the assessment year 1953-54. we agree with mr. joshi that there are various provisions in the income-tax act under which an assessee has to pay tax on an income which is purely notional and which he has never received, and mr ..... therefore, answer the first question submitted to us in the negative. 8. questions 2 and 3 must be answered in the light of the decision in commr. of income-tax, bombay city ii v.shanti k. maheshwari, : air1958bom478 . 9. question no. 2 in the affirmative. 10. question no. 3 in the affirmative in the light ..... if in law, the dividend has been paid, then it must be considered to be the income of the year in which it is paid. 4.the tribunal relied on a judgment of this court reported in commissioner of income-tax, bombay city v. laxmidas mulraj khatau 1948 16 itr 248 : (air 1948 bom 404), ..... has been made. as soon as a declaration of a dividend is made, the assessee must be deemed to have been paid the dividend income and he must pay tax on that income.5. now, turning to the judgment in khatau mills's case, (1948) 16 itr 248: (air 1948 bom 404), that was .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-19-1958
Reported in : 34ITR557(Bom)
..... claim two sums of rs. 10,15,000 and rs. 98,892 as a business loss as a deduction under section 10(2)(xv) of the indian income-tax act ?' 16. with regard to question no. 1 also some amendment is necessary because the amount of rs. 48,50,689, mentioned in question no. 1 ..... 2)(xi). what the learned chief justice says at page 284 is : 'i am entirely unable to hold that section 10(2)(xi) of the income-tax act imperatively requires that in order that any amount may be allowed as irrecoverable in any particular year such amount or a larger amount, must be 'actually written ..... that the other view was not tenable and the position which was accepted was incontrovertiable. 5. now, turning to these decisions, in commissioner of income-tax and excess profits tax v. jwala prasad tiwari. the department took up the extreme attitude that because the debts which were claimed as bad debts were not be ..... rupees. now, it seems to us that such a construction is illogical. if the intention of the legislature was to restrict the power of the income-tax officer not to allow bad debts exceeding the amount written off by the assessee himself in his books of account, logically the restriction must be applied ..... an assessee carrying on a banking or money-lending business, such sum in respect of loans made in the ordinary cause of such business as the income-tax officer may estimate to be irrecoverable but not exceeding the amount actually written off as irrecoverable in the books of the assessee.' 3. therefore, in .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-19-1958
Reported in : AIR1959Bom272; (1958)60BOMLR987; ILR1959Bom262
..... two sums of rs. 10,15,000/- and rs. 98892/- as a business loss or as a deduction under section 10(2)(xv) of the indian income-tax act?'11. with regard to question no. 1 also some amendment is necessary because the amount of rs. 48,50,689/- mentioned in question no. 1 ..... says at p.284 (of itr): (at p.602 of air) is:'i am entirely unable to hold that section 10(2)(xi) of the income-tax act imperatively requires that in order that any amount may be allowed as irrecoverable in any particular year, such amount or a larger amount must be 'actually written ..... that the other view was not tenable and the position which was accepted was incontrovertible.4. now, turning to these decisions -- in commr. of income tax and excess profits tax central, bombay v. jwalaprasad tiwari : air1954bom277 the department took up the extreme attitude that because the debts which were claimed as bad debts were ..... of rupees. now, it seems to us that such construction is illogical. if the intention of the legislature was to restrict the power of the income-tax officer not to allow bad debts exceeding the amount written off by the assessed himself in his books of account, logically the restriction must be applied ..... bad debts must arise in respect of loans made by the assessee. only such debts are allowed as bad debts as the income-tax officer may estimate to be irrecoverable. therefore the income-tax officer must be satisfied that in the year of account in which bad debts are claimed, the debts could not be recovered. .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-18-1958
Reported in : AIR1959Bom298; (1958)60BOMLR983; ILR1958Bom1374; 34ITR187(Bom)
..... they are also the registered owners of shares which bring in dividend income. the question that arises is whether it is obligatory upon the department to tax them with regard to these different kinds of income under sections 9, 10 and 12 read with section 41 of the income-tax act or it is open to the department to contend that at its option it could ..... tax the trustees under sections 9, 10 and 12 without regard to the provisions ..... of s. 41.2. now, in order to answer this question, we must first look at the scheme of the act. the charging section, as has been ..... that section 41 is mandatory in its language. therefore, if a person makes the return of his income as a trustee, the assessment upon his income would be in accordance with the provision laid down in chapter iii of the act, but his liability to pay tax as a trustee must be determined according to section 41. now there is n dispute here that .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-10-1958
Reported in : AIR1958Bom461; (1958)60BOMLR838; ILR1958Bom1124
..... equity the assessee is perhaps entitled to claim the expenses incurred. the nature of the expenses is, however, such that there is no provision under the income-tax act under which such expenditure can be allowed. when the business came to an end, it is not known what happened to all the employees. they were ..... points out:'i think the question always is whether the actual expense incurred was necessary in order to enable the trader to earn the profits charged to income-tax. that, i think, is mainly a question of fact.'and the learned law lord says:'the commissioners have found that the rent which was deducted ..... the company's business; and in estimating the balance of the profits or gains which the company has to bring into account for the purposes of income tax, the amount of the excess of the sum recovered over the book value of the timber in the company's books has to be brought ..... that the timber company did not trade in fires and, therefore, any profit it had made on insurance should not be allowed to be subjected to income-tax. this argument was rejected by the master of the rolls lord hanworth, who said:--'....... governed by ordinary business prudence, and mindful of the fact that ..... as far as the business is concerned;5. there is a judgment of the patna high court in motamal jethumal v. commr. of income-tax : 15itr155(patna) , whichas really based on (1929) 14 tax gas 364 (a); but there is a significant passage in the judgment of mr. justice manohar lall at page 163 (of itr .....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 : 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!