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 : Sep-24-1958
Reported in : AIR1959SC248; 34ITR807(SC)
..... appeal against the judgment of the high court. all the points urged before us were taken in the reference under section 66(2) of the indian income-tax act. it would therefore follow that these grounds are not open to the appellant. however, no such objection was taken on behalf of the respondent and ..... we must mention that against the order of the tribunal the appellant applied for reference to the high court under section 66(2) of the indian income-tax act, and the learned judges of the high court dismissed that application. no appeal has been preferred against that a all. the present appeal is against the ..... the account books of the firm it was only the name of thayappa that appeared, that the firm was registered under section 26a of the indian income-tax act, and that in the application it was only the name of thayappa that appeared as a partner. the tribunal also points out that during this period ..... that an appeal under article 136 of the constitution of india to this court again a decision of the appellate tribunal under the indian income-tax act. but seeing that in this case the appellant had moved the high court an a decision has been pronounced adverse to him and this ..... to be the real owner. when both these explanations were rejected, as they have been it was clearly upon to the income-tax officer to hold that the income must be concealed income. there is ample authority for the position that where an assessee fails to prove satisfactorily the source and nature of certain amount .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Oct-07-1958
Reported in : AIR1959SC291; 35ITR148(SC); 1959Supp(1)SCC110; Supp1SCR110
venkatarama aiyar, j. 1. this is an appeal against the judgment of the high court of nagpur in a reference under section 66(1) of the indian income-tax act (xi of 1922), hereinafter referred to as the act, and the point that is raised for our determination is whether a sum of rs. 2,50,000 received by the respondent on august 2, 1941 ..... the sum of rs. 2,50,000 received by the assessee as damages or compensation for the premature termination of the contract of 9th may 1940 is income assessable within the meaning of the indian income-tax act.' 2. the reference was heard by sen and deo, jj., who held, disagreeing with the tribunal, that the sum of rs. 2,50,000 was a ..... capital receipt in the hands of the respondent, and that it was not liable to be taxed. the appellant then filed an application under section 66(a)(2) of ..... parsons &; co. v. commissioners of inland revenue (1938) 21 tax cas. 608 and the commissioner of income-tax and excess profits tax, madras v. the south india pictures ltd., karaikudi  s.c.r. 223. 14. in income-tax commissioner v. shaw wallace &; co. (1932) l.r. 59 i.a. 206, the respondent company had been acting for several years as the distributing agents of two oil .....Tag this Judgment!
Court : Kerala
Decided on : Dec-03-1958
Reported in : AIR1959Ker220; 38ITR152(Ker)
..... more is due. this contention is dismissed.'5. after the tribunal dismissed the appeal filed before it, the assessee applied for a reference under section 66(1) of the income-tax act. the commissioner of income-tax opposed that application and the tribunal dismissed it on 28-1-1955. thereupon the assessee filed o. p. no. 113 of 1955 before the high court of travancore ..... ' cannot be justified.21. in the result, the answer to question no. (1) is that the tribunal was not justified in holding that the proviso to section 13 of the income-tax act was attracted to this case; and the answer to question no. (11) is that the disallowance of rs. 18,000 out of the amount of rs. 36,000 paid as ..... two questions of law as arising out of the tribunal's order and directed the tribunal to state a case and refer those questions under section 66(2) of the income-tax act. the reference has been made in pursuance of the above order, and the questions referred are:'(i) whether in the circumstances of the case the tribunal was justified in holding ..... it is for the assessee to conduct his business and in his wisdom or otherwise to fix the remuneration to his staff. the income-tax act does not clothe the taxing authority with any power or jurisdiction to determine the reasonableness of the amount so fixed and paid by the assessee. the only test for the deductability of such remuneration is .....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-31-1958
Reported in : AIR1959Bom89; (1958)60BOMLR1048
..... air):'for the purpose of assessment, there is a well marked distinction between discontinuance and succession - a distinction which is recognised in the english law of income-tax and adopted and provided for in the indian income-tax act. the conception of succession, therefore, excludes the conception of discontinuance.'3. apart from our decision turning on the clear language used by the legislature in section ..... of the section and to be in line with similar decisions upon the english income-tax acts.'there is also a judgment of the madras high court reported in karuppiah pillai v. commr. of income-tax, madras : 9itr1(mad) , which also look the view that section 44 of the indian income-tax act only applies when there has been a discontinuance of a business, and that when ..... of the profits of the four partners were allocated to each one of them under the provisions of the income-tax act and each of the partners was assessed to tax on his share of the profits. the petitioner and the other three partners paid the tax which they were liable to pay in respect of their respective assessments. iyer failed to do so and ..... the income-tax officer served a notice upon the petitioner that the petitioner was liable to pay the tax of iyer which was in arrears under section 44 of the income-tax act and threatened coercive measures if the petitioner failed to pay the tax. the petitioner has come on this writ contending that the liability .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-19-1958
Reported in : AIR1959Bom102; (1958)60BOMLR748
..... civil procedure code to establish the illegality of the orders in question and to establish the fact that assets were not amenable for the recovery of the arrears of income-tax under section 46(2) of the income tax act. it was argued, however, by mr. laud at one stage in support of his application for amendment that in : 1956crilj129 the supreme court has held that on ..... upon is the one in purshoutam govindji v. b.m. desai : 1956crilj129 . from this decision it was argued that upon the construction put there on section 46(2) of the income-tax act, the arrears of income-tax are to be recovered as if they were arrears of land revenue, the 2nd respondent could proceed to recover them under the bombay city land revenue ..... in law. now the fresh ground sought to be added by the amendment was that inasmuch as no notice was served upon the 4th respondents under section 29 of the income-tax act either at the time of the assessment or thereafter an order made on the 4th respondents is invalid. the amendment also sought to introduce a further ground that the orders ..... the nominee of the partnership of messrs narandas kedarnath. unit 1950-51 the firm of bilasrai banarasilal and co. was assessed by the income tax authorities as a registered firm under section 23(5)(b) of the income-tax act, and the tax assessed in respect of that firm was paid by the two firms of the 4th respondents and messrs. narandas kedarnath upon the footing .....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 : Mar-24-1958
Reported in : AIR1959Bom156; (1958)60BOMLR856; ILR1958Bom1207
..... court which throws some light on this question and that is in eastern investments ltd. v. commr. of income-tax : 20itr1(sc) . the supreme court was considering section 12(2) of the income-tax act and the deduction permissible under that sub-section is in respect of 'expenditure incurred solely for the purpose ..... of making or earning such income, profits or gains' and mr. justice bose, at page 4 (of itr): (at p. ..... learned chief justice of madras, in a full bench sitting with mr. justice wallace and mr. justice beasly, interpreting this very section in commr. of income-tax v. somasundaram air 1928 mad 487, takes the view that 'if necessary, i should be prepared to hold that the only reasonable construction of the ..... was used for the purpose of the business.6. mr. joshi lays strong reliance on the judgment of this court in machinery . v. commr. of income-tax : air1957bom14 . in that case we were construing an entirely different sub-clause of section 10(2) and that was sub-clause (vi); and what ..... . in that case the assessee bank spent monies in investing the funds of the bank in certain securities which yielded interest which was free from tax, and the contention of the crown was that the bank was not entitled to deduct the expenses of investment because the securities which were purchased .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-19-1958
Reported in : AIR1959Bom281; (1958)60BOMLR1043; ILR1958Bom1184; 34ITR222(Bom)
..... now, what we said in navinchandra's case : 27itr245(bom) and what we had said earlier in kasturchand's case : air1950bom1 was that the income-tax act does not in terms prescribe a period of limitation for an order to be made under section 23a. that view, we think, is correct. but in neither ..... , it was necessary for the income-tax officer to initiate action under section 34 of the indian income-tax act in order to tax the deemed income distributed by virtue of the order under section 23a of the act? now, this question was considered in the case of navinchandra mafatlal v. commissioner of income-tax, bombay city : 27itr245 ..... manager which would not make an order under section 23a an dinfructuous order. it is pointed out that in kasturchand ltd. v. commr. of income tax bombay : air1950bom1 we held that no period of limitation was provided for an order to be made under section 23a and when it was urged ..... three assessees before us were shareholders in a.c.e.c. private (india) ltd. on the 29th of march, 1954, the income-tax officer passed an order under section 23a with regard to the profits of the company for the year 1949-50 and issued a notice ..... (bom) and the view we took there was that section 23a was not a section which dealt with assessment, and after an order under section 23a was made, it was necessary to assess the shareholders to tax .....Tag this Judgment!