Court : Chennai
Decided on : Nov-13-1958
Reported in : AIR1960Mad96; 37ITR26(Mad)
..... the assessee. similarly it was held in the latter case:'on the interest which accrues due in respect of securities, debentures etc., referred to in s. 8 of the indian income-tax act, 1922, the liability to pay arises only when the interest is received.'section 12-b, however, does not speak of any receipt at all. the crucial word used there is ..... . that is no doubt so, but we find it difficult to see how that argument would help the assessees now before us. in order that sec. 12-b of the income-tax act may apply, it is sufficient if in the relevant accounting year profits arise out of the sale of capital assets. what the parties did subsequent to the year will not ..... ,750, and rs. 2,32,050.(8) it will be noticed that these figures are higher than the corresponding figures adopted by the income-tax officer.(9) under sec. 12-b of the income-tax act, an assessee is liable to pay tax under the head 'capital gains' in respect of any profits or gains, arising from the sale, exchange or transfer of a capital asset ..... following questions of law for the decision of this court:(1) whether the provisions of sec. 12-b of the indian income-tax act levying a tax on capital gains are beyond the competence of the central legislature under the government of india act, 1935. (2) whether, on the facts and circumstances of the case, there is material to support the assessment made on the .....Tag this Judgment!
Court : Chennai
Decided on : Sep-03-1958
Reported in : AIR1960Mad137; (1960)IIMLJ1
..... of the order of the appellate tribunal. on applications presented by them the tribunal made a consolidated reference under s. 66(1) of the income-tax act and submitted three questions for the determination of this court.(2) the questions arose out of the assessment proceedings for the assessment years 1949-50 ..... years 1949-50 and 1950-51 from plantation companies whose main business was agriculture can be said to include any agricultural income exempt under s. 4(3) of the income-tax act.'the issue is no longer res integra and it is concluded by the decision of the supreme court in mrs. bacha ..... the aforesaid sum of rs. 60,000 compensation received from the tallier estates ltd., is assessable as a trading profit under the income-tax, excess profits tax and business profits tax acts.'(5) the relevant facts as found by the tribunal are as follows: the assessee company is incorporated in the united kingdom. ..... f. guzdar v. commr. of income-tax bombay : 27itr1(sc) . dividends do not constitute agricultural income. the question is answered in the negative ..... have set out above.(6) the decision of this court in : 20itr605(mad) was reversed by the supreme court in commissioner of income-tax and excess profits tax v. south india pictures ltd. : 29itr910b(sc) . but that may not include the question at issue. it is with reference .....Tag this Judgment!
Court : Chennai
Decided on : Oct-17-1958
Reported in : AIR1959Mad328; 36ITR41(Mad)
..... this amount in that assessment."5. the assessment for 1945-46 had been completed by the income-tax officer on 31-12-1945. but, acting on what the appellate assistant commissioner had said, the income-tax officer issued a notice dated 6-2-1957, under section 34 of the income-tax act, calling upon the petitioner to submit a return for the assessment year 1945-46. on 18 ..... -6-1957, the income-tax officer also issued a notice under section 22 (4) of the income-tax act, calling upon the petitioner to prodnce his books relating ..... dwarkadas, .the facts there were as follows: on 30-4-1954, the income-tax officer served a firm p with a notice under section 34 of the income-tax act for the assessment year 1942-43 on the ground that certain income of that year of a firm v should have been included in the income of the firm p but had been wrongly included in the ..... of a notice issued under section 34 of the income-tax act dated 6-2-1957, and numbered as 86-s/45-46.2. the petitioner is an assesses on the file of the additional income-tax officer, ootacamund in g. i. no. 86-s. on 18-12-1946, the income-tax officer assessed the petitioner on a total income of rs. 5143, under section 23 (3) of .....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-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!
Court : Mumbai
Decided on : Oct-03-1958
Reported in : AIR1959Bom421; (1959)61BOMLR380; ILR1959Bom1368
..... , as we shall point out, little later in our judgment, no judge has ever attempted to give a comprehensive definition of that expression. the income-tax act does not define the expression. this is just as well since it seems difficult to have a definition which may aptly meet with every particular instance ..... on this reference is:'whether on the facts and in the circumstances of the case, the assessee company is entitled to relief from tax under section 15c of the income-tax act?'2. it has been argued before us by mr. g.c. joshi, learned counsel for the revenue, that the tribunal was in ..... t. desai, j.1. a short but interesting question of construction of section 15c of the income-tax act arises for our determination on this reference, which come before us at the instance of the commissioner of income-tax bombay, under section 66(1). the facts may be briefly stated. a partnership firm consisting of ..... we are taking.10. there is some difference of judicial opinion about the canon of construction application to a provision for exemption in a taxing statute. in commissioner of income-tax bombay v. chugandas and co., it ref. no. 27?x of 1954 (bom) my brother tendolkar and 1, although we took different ..... to held the building up of new industries, it has been provided that industries stated after 1-4-1948 will get some special benefits. the income-tax officer would have been right in not allowing the exemption if the business taken over by the assessee had been commenced prior to 1-4-1948 .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-08-1958
Reported in : AIR1959Bom427; (1959)61BOMLR393; ILR1959Bom1342
..... 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 ..... paid, or because the expenditure is not solely and exclusively for the business, and not on the ground that in the opinion of the income-tax officer or other taxing authority the remuneration is 'unreasonably' high either because the employee does not, in the authority's opinion, deserve so much, or because ..... business.7.mr. kolah, learned counsel for the assessee, has relied on a decision of the madras high court in newton studios ltd. v. commissioner of income-tax, madras : 28itr378(mad) . that case related to payment of remuneration to a member of the staff of the assessee but the principle is ..... the purpose of the business even though it may not be incurred with a view to making profits. in eastern investments ltd. v. the commissioner of income-tax, west bengal : 20itr1(sc) , the supreme court laid down that in the absence of fraud, the questions whether the transaction had the ..... deduction. in this reference we are not concerned with the payment of rs. 1,34,400/- made by the assessee company to mr. captain. the income-tax officer disallowed the assessee's claim for this deduction. the appellate assistant commissioner, however, allowed the assessee company a deduction of rs. 33,600/. .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-06-1958
Reported in : AIR1959Bom454; (1959)61BOMLR386; ILR1959Bom1350; 35ITR734(Bom)
..... share of the profit he may get from the firm, and the value of the shares was, therefore, assessable as the assessee's income under section 10 of the income-tax act, one of the contentions in that case was that the receipt was of the nature of a casual and non-recurring receipt. that ..... the purpose of assisting his employee, whom he does in fact remunerate for his services, attempts to relieve his employee from his obligation to pay income tax by saying 'i do not intend it to be a remuneration'; even so the receipt becomes a taxable receipt if on all the facts of ..... with the principle laid down in that case. 10. the next case to which mr. kolah has drawn our attention is david mitchell v. commissioner of income tax, west bengal : 30itr701(cal) . in that case the assessee was an accountant by profession and a partner in a firm of chartered accountants. ..... as compensation for loss of employment and not by way of remuneration for past services;.....' 4. the appellate assistant commissioner confirmed the order passed by the income-tax officer. the matter was carried by the assessee in appeal to the tribunal and the tribunal dismissed the appeal. the tribunal in its order laid ..... contention also was dismissed by the court. 11. mr. kolah has also drawn our attention to a decision of the house of lords: reed (inspector of taxes) v. seymour, (1927) 11 tax .....Tag this Judgment!