Court : Mumbai
Decided on : Oct-27-1958
Reported in : 36ITR329(Bom)
..... 4. then the tribunal goes on to hold that the interest was not allowable deduction under section 10(2)(iii) of the income-tax act. then it adds : 'if, however, any income occurs on the shares or is deemed accrue on these shares under interest has to be allowed under section 12. as we have ..... paid on money borrowed for the purchases of shares in gannon dunkerley & co. ltd. which did not yield any dividend income, could be set off against other income under section 24(1) of the income-tax act ?'8. at the very outset of his argument, mr. palkhivala, learned counsel for the assessee, stated that he did ..... disallowed the deduction. we have often said in this court that in dealing with an enactment of all india importance and particularly the indian income-tax act, we would, as far as possible, prefer to take the same view that may have been taken by any other high court on ..... that the tribunal has recorded is that the shares were not purchased with a view to trading in them. incidentally, we may mention that the income-tax officer had observed that the investments were not for a proper business consideration nor for any 'sound investment consideration'. but we are concerned with the ..... that expression. mr. palkhivala has also drawn our attention to certain observations made by the supreme court in eastern investment co. ltd. v. commissioner of income-tax. in that case, their lordships held that the transaction before them was of such a nature as would fall within the purview of section 12(2 .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Mar-14-1958
Reported in : AIR1959AP166
..... made on the baste of a flat rate is legal? and4. to what extent can the income tax authorities disclose particulars on which they base their assessment without contravening the provisions of the indian income tax act?5. the income-tax officer, as has been shown above rejected the accounts of the assessee, and proceeded to determine ..... extent of profits on the basis of the result of his enquiries. the proviso to section 13 of the income tax act empowers the income-tax officer to assess the profits, on such basis and in such manner as he thinks proper where ha conies to the conclusion that the ..... the substance of the private enquiry. it the tribunal thinks that for further enquiry the case should go to the income-tax officer, it might send it to the income-tax officer to act up to the directions of this court. the department would also be entitled to rebut the evidence the assessee may ..... the placing on record a note of the results of such enquiry are essential to sustain an ex parte assessment.if the income-tax officer proposes to act upon, information collected by him independently on private enquiries, he should disclose to the assessee the nature of that information to rebut it ..... and fairplay. natural justice demands that he should draw the attention of the assessee to the particular case, the authority had in view. the income-tax authority is not competent to make a random assessment based on his private enquiries which may not be revealed to the assessee. local enquiry and .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Nov-24-1958
Reported in : AIR1959SC346; 35ITR519(SC); Supp1SCR683
..... facts and circumstances of the case the collections by the assessee company described in its accounts as 'empty bottle return security deposits' were income assessable under section 10 of the income-tax act 5. the high court answered the question in the affirmative. the present appeal is against that decision which related to all the three ..... varieties of taxes for which the appellant had been made liable. 6. we are concerned in this appeal only with the additional sums ..... case nearest to the present one is, in our view, that decided by this court in k. m. s. lakshmanier &; sons v. commissioner of income- tax and excess profits tax, madras  s.c.r. 1057. there the appellants, who were the assessees, were merchants carrying on business as the sole selling agents for yarn ..... were not trading receipts at the moment of receipt, they had at that moment the potentiality of becoming trading receipts. that proposition involves a view of income tax law in which i can discover no merit except that of novelty.' 22. then again he said : 'it seems to me that the quality and ..... nature of a receipt for income tax purposes is fixed once and for all when it is received. what the partners did in this case, as i have said, was to decide .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-24-1958
Reported in : AIR1959SC63; 34ITR646(SC)
..... s order of july 23, 1951, and the only question is whether the appellant is liable under section 4(1)(b)(iii) of the income-tax act to pay tax on rs. 1,20,000 remitted by him from srinagar in kashmir to british india in the relevant accounting year as his profits accumulated outside ..... was said that the appellants had in fact produced the affidavits and certificate. these are actually included in the printed records. the respondent, the commissioner of income-tax, punjab, contended that the tribunal had never asked for affidavits or certificate. we are included to think that the respondents is right, for we do ..... that the present contention was raised by the appellant for the first time when the case came back to the tribunal on the report of the income-tax officer. indeed it is quite clear to us that if this contention had been raised earlier, the remand to that officer would have been ..... funds of the current year. in view of the this admission, the only materials available on which the further enquiry could be made by the income-tax officer were those which had been produced at the time of the first assessments and that officer having considered these materials, reported that the appellate ..... in the purchase of goods included preceding year's profits available for remittance to british india. 5. when the matter thus came back to the income-tax officer for the enquiry, it was admitted by the appellant that the profits in srinagar were mixed up with the working funds there and it .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-04-1958
Reported in : AIR1961Bom5
..... have never been used with reference to the accounting year. he has also referred me to the notice of demand issued in pursuance of the provisions of the income-tax act wherein also the words 'income for the year ending 31st march 1952' have been used with reference to the assessment year and not the accounting year. it is unnecessary to quote here all ..... order1. this is a petition under article 226 of the constitution challenging the validity of notice dated april 2nd, 1957 issued in pursuance of section 34 of the income-tax act and for reliefs preventing the respondents from proceeding with re-assessment in pursuance of that notice. 2. the main grounds on which the petitioner has placed reliance are contained in ..... of messrs. durgaprasad ramcharan private ltd. he had according to him during that period two sources of income. in accordance with the provisions of the income-tax act, he was duly assessed to income-tax in respect of the said period. 5. some time in 1956-57 the income-tax officer had information that in 1950 there were three home savings deposit accounts in jodhpur commercial bank, bombay ..... before the court was 'whether in the circumstances of this case the notice of reassessment issued to the applicant under section 34 of the income-tax act was invalid or illegal for failure to specify that particular source of income that had escaped assessment?' 22. it is necessary before referring to the judgment of beaumont c. j. in that case to observethat in 1939 .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-25-1958
Reported in : AIR1959Bom93; (1958)60BOMLR1046; ILR1958Bom1213
..... a.c. must be exercised within a specific period, then the legislature would have so provided. but we look in vain for any provision in the income-tax act which lays down any period of limitation for the exercise of the appellate powers of the a.a.c. in our opinion, in exercising his discretion ..... second question is whether the addition of the sum of rs. 1,50,000/- by the appellate assistant commissioner was barred by section 34(3) of the income-tax act? now, the contention urged by mr. palkhiwalla is that section 34(3) lays down a period of limitation for making an order of assessment and that ..... the a.a.c. to exercise that power at any time.5. mr. palkhiwalla has referred to a judgment of the lahore high court, commr. of income-tax v. shah nawaz khan, reported in (b). that was a case which dealt with entirely different facts, and the principle which can be deduced from that ..... . would be debarred, according to mr. palkhiwalla, from making any order to the prejudice of the assessee which might result in the assessment made by the income-tax officer being increased. this is not a case of enhancement, and even though it is not a case of enhancement, mr. palkhiwalla argues that merely because ..... in the books of the assessee. the assessee appealed to the appellate assistant commissioner. the a.a.c. held in favour of the assessee that the income-tax officer was not justified in adding these two sums. but on looking to the accounts, he found that two items of sales had not been accounted for .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-13-1958
Reported in : AIR1959Bom100; (1958)60BOMLR926; ILR1958Bom1149
..... for 1954-55 was rs. 17,591/-. the contention of the assessee was that these amounts were not subject to tax. the tribunal held that these amounts constituted an income and were liable to tax under section 10 or 12 of the indian income-tax act.2. now, every receipt that a man receives is either a revenue receipt or a capital receipt, and in this ..... receipts come in with a fair regularity. but even if a receipt is a revenue receipt, it may bot be subject to tax if the assessee establishes that the receipt is exempted from tax under one of the provisions of the income-tax act, and mr. thakkar, on behalf of the assessee, has strongly pressed upon us that these particular receipts are personal gifts made ..... our opinion, it is an untenable proposition that the amounts received by the assessee were income which was exempted under the provisions of the indian income-tax act. 7. now, mr. thakkar wanted to argue that even if these receipts constituted 'income', he was entitled to deductions permissible under the income-tax law. no question has been raised on this reference and we cannot go into it ..... practice of religion can become a vocation and more so, when it brings in a steady income. if the assessee does practise a vocation, then the case falls under section 10; but even otherwise the income would fall in any case under section 12 of the income-tax act. 9. we answer the question submitted to us in the affirmative.10. assessee to pay the .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-20-1958
Reported in : AIR1959Bom148; (1958)60BOMLR851; ILR1958Bom1188
..... m.c. chagla, c.j.1. the question that arises in this reference is whether an income arising from a certain trust is exempt from tax on the ground that it falls within section 4 (3) (i) of the indian income-tax act. the trust in question was constituted on the diamond jubilee of mr. walchand hirachand, a well-known ..... purpose, them even the intervening period the trust continues to be a charitable trust the property is held on a charitable trust and the income from that trust is exempt from tax. 4. the second objection that is raised by mr. joshi is as regards the power conferred upon the trustees to prefer the employees ..... be carried out. if mr. joshi were right, no such trust could be set up, or if it were set up, the income from such a trust would have to pay tax. what has to be looked at is the dominant intention disclosed in the trust-deed. it is not necessary that the intention must be ..... which he helped to build up should be conducted in a particular manner, those are all side issues which do not affect the question of property or income. they undoubtedly help us to understand what the intention of the settlor was; and although it may be conceded that he was greatly interested in the employees ..... immediately carried out. so long as the income from the trust property is not spent on any non-charitable object and it is saved .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-10-1958
Reported in : AIR1959Bom431; (1959)61BOMLR399; ILR1959Bom1438; 36ITR124(Bom)
..... we must read as 'tax on the income of a deceased person' postulates that the income was the income of the deceased person. therefore, what cannot be said to be the income of a deceased person is outside the purview of this section, which is the only provision in the income tax act which deals with the income of a person who dies without paying income-tax in respect of the ..... . ordinarily, what would have been the income of a deceased person, when received by an executor, administrator or other legal representative would be ..... same.8. faced with this difficulty, learned counsel sought to derive support form the words at the end of the section viz. 'or any tax which would have been payable by him under this ..... it could not have been the intention of the legislature to allow income of the type before us to escape assessment. but we are not concerned with the supposed intention of the legislature, which is at times extremely difficult to ascertain and particularly in case of some provisions of the income tax act. we are concerned with what the legislature has said it meant .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-23-1958
Reported in : AIR1959Bom499; (1959)61BOMLR582; ILR1959Bom1444; 36ITR266(Bom)
..... . 662 of the report (itr): (at p. 341 of air) it is observed:'now, as has often been pointed out, the assessable entity under the income tax act is different from a legal entity. the object of the income-tax act is to spread its net wide and to include in that net every person and every association of persons, however that association may have been ..... firm. according to the accountant member, in the case of an unregistered firm, the loss can only be carried forward in the account of the firm as provided under the income-tax act. the assessee had also relied upon an order of the tribunal made on 11-9-1952 in the matter of the assessment made on damji laxmidas for the same preceding ..... business when the unregistered firm has not been assessed. it has been argued before us by mr. kolah that there is no provision in the income-tax act which lays down that a person who carries on his own business and is also a partner in an unregistered firm cannot in any case claim to set-off his ..... of the share of a partner in the profits of an unregistered firm in his total income simply on the ground that the unregistered firm had not been first assessed to tax. it was also pointed out in that case that there is no provision of the income-tax act which prohibits the assessment of a partner until the firm in which he is a .....Tag this Judgment!