Court : Supreme Court of India
Decided on : Oct-01-1958
Reported in : AIR1959SC257; 35ITR1(SC); Supp1SCR10
..... november 1930 for the year 1927-28 was a legal assessment the argument was that, on a true construction of the income-tax act, it was obligatory on the income-tax officer to complete the assessment proceedings within the year of assessment, and in the event of such assessment not being so ..... that it was not assessable, it cannot be treated as income which has escaped assessment and reassessed under section 30 of the assam agricultural income-tax act. in his judgment the learned chief justice has mentioned that the earlier decisions of the calcutta high ..... and mukherjea j. had to deal with the construction of section 30 of the assam agricultural income-tax act (assam ix of 1939) which corresponds to section 34 of the act. they held that where a certain income has been included in his return by the assessee but was not assessed on the ground ..... judicature at patna under section 66a(2) of the income-tax act (hereinafter called the act) and it raises a short question of the construction of section 34(1)(b) of the act. this question arises in this way. proceedings were taken by the income-tax officer, special circle, patna, against maharaja bahadur rama ..... decision in making the order of assessment was wrong without any fresh information from an external source or whether the successor of the income-tax officer can act under section 34 on the ground that the order of assessment passed by his predecessor was erroneous, and divergent views have been expressed .....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 : Supreme Court of India
Decided on : Oct-09-1958
Reported in : AIR1959SC265; 35ITR168(SC); Supp1SCR142
..... year for the assessment for the year ending on the 31st day of march, 1951, and no order has been made under sub-section (1) of section 23a of the income-tax act, a rebate shall be allowed, at the rate of one anna per rupee on the amount of such excess; (ii) where the amount of dividends referred to in clause (i ..... actually assessed. the appellant then applied for and obtained a certificate from the high court under article 133(1)(c) of the constitution read with section 66a(2) of the income-tax act that the case is a fit one for appeal to this court. it is with this certificate that the present appeal has been brought to this court; and the only ..... year. 7. it is well known that when different part 'b' states merged with the adjoining states or provinces and were made taxable territories under the income-tax act, the operation of the indian rate of tax was introduced by phases and rebates on a graduated scale were allowed to the assessees under the provisions of this order. as we have already mentioned, it ..... tribunal, bombay, but the appellate tribunal confirmed the order under appeal on november 27, 1954. the appellant then moved the appellate tribunal under section 66(1) of the income-tax act and the appellate tribunal, by its order passed on april 25, 1955, referred two questions to the high court at saurashtra for its opinion. in the present appeal, we are .....Tag this Judgment!
Court : Kerala
Decided on : Jun-18-1958
Reported in : AIR1959Ker110; 36ITR169(Ker)
..... the provisions of section 26a. registration of firms under the income tax act is not a general right but is a mere privilege given to the firm in order to enable the individual partners to get the benefit of the lower rates of ..... there :'the provisions as to the specification of the share of each partner in the partnership deed enacted under section 26a of the indian income tax act, 1922, and in the application form prescribed under rule 3 of the income tax rules are mandatory in nature and unless these provisions are strictly complied with, the partnership firm is not entitled to get itself registered under ..... n.v. iyengar, j.1. this is a reference by the income tax appellate tribunal, madras bench under section 66(1) of the indian income-tax act and the question raised is :'whether the assessee is entitled to relief under section 26-a of the indian income-tax act for the accounting year 1125 m. e. relevant for the assessment year 1951-52'.the assessee was the firm of ..... behalf of any firm, constituted under an instrument of partnership specifying the individual shares of the partners, for registration for the purposes of this act and of any other enactment for the time being in force relating to income-tax or super-tux. (2) the application shall be made by such person or persons, and at such times and shall contain such particulars .....Tag this Judgment!
Court : Kerala
Decided on : Nov-07-1958
Reported in : AIR1959Ker182
..... there was an infringement of article 14 the supreme court held:'the discrimination, if any, was not brought by the two ordinances, but by the circumstances that there was no income tax act in nabha and consequently there was no case of assessment pending against any nabha assessees. in any case the provision that pending proceedings should be concluded according to the law ..... a given case there is sufficient territorial nexus is essentially one of fact'.18. in much the same way has the principle-been stated in earlier cases under the indian income-tax act, 1992. see kanga, 4th edn. vol. i, p. 8. thus in wallace bros, and co. ltd. v. i. t. commr., bombay the privy council had occasion to consider the validity ..... of section 4a of the indian income-tax act, 1922 under which the foreign income of a company which was incorporated in the united kingdom and had also its control and management of affairs exclusively in that country was sought to be charged ..... the madras state was, like the rest of that state area, not subject to any general law relating to agricultural income-tax. it was only income from plantations as defined in the madras plantations agricultural income-tax act v of 1955 that was subject to such tax. a system of land revenue including cesses and enhanced by surcharge and additional surcharges was on the other hand prevalent .....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 : Kerala
Decided on : Dec-19-1958
Reported in : AIR1959Ker298; 39ITR234(Ker)
..... be sold as scrap iron, allowance for the value of the car was claimed on the ground that it had become obsolete under section 10(2) (vii) of the indian income-tax act -- act xi of 1922 as it stood then. the learned judges negatived this contention as being contrary to the plain meaning of the language used in the statute and observed at ..... law is correct. a similar allowance was given on plant or machinery which had become obsolete, under section 10(2) (vii) of the income-tax act -- act xi of 1922 as it originally stood. in rathan singh v. commr. of income-tax air 1926 mad. 462, a division bench of the madras high court consisting of the chief justice and beasley, j., had to consider the ..... adventure in the nature of trade, or commerce or manufacture. the first part of this definition of 'business' in the excess profits tax act is the same as the definition of a business in section 2(4) of the indian income-tax act: whether particular activity amounts to any trade, commerce or manufacture or any adventure in the nature of trade, commerce or manufacture is ..... any business carried on by the assessee under section 4 clause (iv) read with section 8 clause (i) of the travancore income-tax regulation -- regulation viii of 1096 corresponding to section 6 clause (4) read with section 10 of the indian income-tax act xi of 1922.30. mr. govindan nair, learned counsel for the assessee contended that the tribunal has not at all adverted .....Tag this Judgment!
Court : Chennai
Decided on : Jul-07-1958
Reported in : AIR1959Mad126; 35ITR33(Mad)
..... follows : sir joseph kay, the assessee, was entitled to receive from three insurance companies in the united kingdom annuity amounting to 500 a year. the insurance companies deducted income-tax under the english income-tax act, 1918, at the standard rate amounting to 275. the assessee was paid only 225. the assessee contended that only the sum of 225 which he actually received should be ..... profits or gains, before the payment of any dividend in respect of any share, right or title thereto, computed in accordance with the provisions of the income-tax acts. a company pays income-tax on its profits as being itself a tax-payer, not as agent for its shareholders ; if no dividend is declared by the company, the shareholders are not concerned with the payment of ..... from the speech of lord phillimore in bradbury v. english sewing cotton company limited l.r. (1923) a.c. 744 at p. 769 : 'a joint stock company is under the income-tax act, 1842, treated as a person and is directed to make a return of its profits or gains according to schedule d upon a conventional figure, arrived at by taking an ..... in the names of various members of the family 10,208 shares of rs. 10 each in agravas estates, limited, a company incorporated in ceylon. for purposes of the indian income-tax act this company is a foreign company. g.v. govindaswami naidu, another assessee, and, his wife govindammal, held 10,000 shares in the same company between them. at a meeting of .....Tag this Judgment!
Court : Chennai
Decided on : Aug-19-1958
Reported in : AIR1959Mad158; 33ITR567(Mad); (1959)2MLJ196
..... option within one month after he was informed of the scheme.(2) the assessee was permitted to include in his expenses various items which would be inadmissible under the indian income-tax act.(3) the losses suffered by the assessee during the five years relevant to the assessment years, 1942-43 to 1946-47 were all to be aggregated.(4) the assessee was ..... permitted--reversing the usual procedure fixed in the indian income-tax act to carry this aggregated loss backwards and set it off against his profits for the assessment year 1942-43.(5) if there was any loss still unabsorbed the assesses was ..... assessee. but, the liability of the assessees in these cases -- and in fact of all persons -- to pay indian income-tax is created by the provisions of the indian income-tax act.the amounts on which the tax has to be paid, the rates at which the tax has to be computed and the reliefs which assessees are entitled to, must all be determined in accordance with ..... arising from the fact that a particular assessee has accepted the scheme or offer made by the government of india cannot be enforced as if they arose under the indian income-tax act; such rights and liabilities since they arise from contract must be adjusted or enforced otherwise. to put it in another wav, the scheme stands outside the .....Tag this Judgment!
Court : Chennai
Decided on : Apr-16-1958
Reported in : AIR1959Mad205; (1958)2MLJ10
..... :'an assesses is not entitled to a right of appeal merely against an order of the income-tax officer imposing penal interest under section 18-a (8) of the income-tax act, for failure to pay advance income-lax.''5a. mr. srinivasan also referred to boddu seetharamaswami v. commr. of income-tax, : 28itr156(ap) to reinforce his contention that the levy of interest is not ..... -chand ramdas as follows:'one of the peculiarities of most income-tax acts is that the word 'assessment' is used as meaning sometimes the computation of income, sometimes the determination of the amount of tax payable and sometimes the whole procedure laid down in the act for imposing liability upon the tax payer. the indian income-tax act is no exception in this respect.'19. the contention of ..... far this reasoning is sound it is necessary to examine some of the other provisions of the income-tax act. section 18 provides for payment of income-tax by deduction at the source in respect of salaries and interest on securities. section 18-a applies to incomes not covered by section 18 and represents an attempt to implement a policy or method which is ..... in the taxable territories on 1-4-1949. some time in 1952 the income-tax officer, pudukottai, completed the assessment on the petitioners and served the prescribed notices on them. on 2-3-1956 the income-tax officer issued notices to the assessees under section 35 of the income-tax act mentioning therein that the interest chargeable on the assessees under section 18-a ( .....Tag this Judgment!