Court : Supreme Court of India
Decided on : May-12-1958
Reported in : AIR1958SC861; 34ITR368(SC); (1958)IIMLJ210(SC); (1959)61PLR85; 1SCR848
..... an appeal against the judgment of the high court of bombay in a reference under section 66(1) of the indian income-tax act, 1922, hereinafter referred to as the act. 2. the appellant is a private limited company incorporated under the indian companies act, and is carrying on business as marine engineers and ship repairers. its registered office is in bombay and it is ..... phrase 'business connection', observed sir george rankin, 'is different from, through not unrelated to, the word 'business' of which there is a definition in the act'. and in anglo-french textile co., ltd. v. commissioner of income-tax, madras : 4scr448 , this court has observed that 'when there is a continuity of business relationship between the person in british india who helps to ..... the business. rule 34 then provides that the 'profits derived from any business carried on in the manner referred to in section 42(2) of the act may be determined for the purposes of assessment to income-tax according to the preceding rule'. now, the argument of mr. palkhivala is that the interpretation put on section 42(2) by the rule making authorities ..... therefrom, or which may reasonably be deemed to have been derived therefrom, shall be chargeable to income-tax in the name of the resident person who shall be deemed to be, for all the purposes of this act, the assessee in respect of such income-tax.' 3. the income-tax officer, bombay who dealt with the matter took the view that the appellant company had so arranged .....Tag this Judgment!
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-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 : Oct-31-1958
Reported in : AIR1959Ker279; 36ITR544(Ker)
..... have carried forward the particular losses under the law in existence before the extension of the indian income-tax act (in this case, under the travancore income-tax act) and that in view of it the company's loss of 1123 could be carried forward only for two years, ..... the fact that in the order for the assessment or 1950-51 which was the first assessment on the company under the indian income-tax act after that act was extended to travancore-cochin, the loss of 1123 was ascertained and there was an express direction to carry forward that loss also ..... difficulties) order, 1950, it could never have been the intention to make this kind of discrimination against the assessees newly brought under the indian income-tax act.as the extension was made for the purpose of securing uniformity section 3 could have been intended only for the purpose of relieving temporary hardships ..... (removal of difficulties) order 1950, has expressly curtailed the rights which they would otherwise have had under section 24(2) of the indian income-tax act. he contended that that section limits the rights of those assessees to carry forward the losses of previous years to periods during which they could ..... to make a reference. this reference lias been made accordingly, and the questions referred are;'(i) whether under the provisions of the indian income-tax act the petitioner is entitled to cany forward the loss for a period of six years notwithstanding the fact that during the period when the .....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 : Aug-06-1958
Reported in : AIR1959Mad56; 38ITR29(Mad)
..... is the liability of the assessee to pay these municipal rates in ceylon an "annual charge" within the meaning of section 9(1)(iv) of the income-tax act is the question.20. we have already pointed out that the liability to pay the rates was annual, though the ceylon ordinance permitted the payment in instalments. ..... four assessment years 1944-45 to 1946-48.13. we have to answer this question with reference to the relevant provisions of section 9(1) of the income-tax act, and the provisions of the ceylon municipal councils ordinance regulating the assessment, levy and collection of rates on houses in ceylon.14. the relevant provisions of ..... section 9(1) of the income-tax act ran:the tax shall be payable by an assessee under the head 'income from property' in respect of the bona fide annual value of property consisting of any buildings or lands appurtenant thereto of ..... dividend of rs. 7,500 received in the ' previous year' for 1945-46 assessment from the beverley estates, ltd., madras, is income exempt under section 4(3)(viii) of the income-tax act?the answer to this question is concluded by the authority of the decision of the supreme court inmrs. bacha f. gizdar v. commissioner ..... 1. six questions were referred for the determination of this court under section 66(1) of the income-tax act. it may not be necessary to set out over again the relevant facts to answer some at least of the questions.2. .....Tag this Judgment!
Court : Chennai
Decided on : Apr-02-1958
Reported in : AIR1959Mad108; 34ITR540(Mad); (1958)2MLJ601
..... been passed after hearing both the petitioner and the authorised representative of the department. he added :'the appellant is not aware of any provision in the income-tax act or in the appellate tribunal rules' enabling the income-tax officer or his authorised representative to file an application concerning matters decided in the appeal after the order has been passed and communicated to the appellant ..... rs. 17,500 for 1947-48 and nothing should be added for 1946-47 and 1948-49.5. the petitioner applied to the tribunal under section 66(1) of the income-tax act to state a case and refer certain questions to the kerala high court in respect of the assessment for the years 1944-45, 1945 46 and 1947-48.6. on ..... balakrishna ayyar, j. 1. these are two petitions for the issue of appropriate writs to quash the order of the income-tax appellate tribunal, madras dated 3-1-1957, and made under section 35 of the income-tax act. w. p. no. 649 of 1957 relates to the assessment year 1948-49 and w. p. no. 650 of 1957 relates to the assessment year 1916-47 ..... fit, ignore the representation.18. the matter is covered by authority. section 33 of the income-tax act, as it stood before it was amended by act vii of 1939, authorised the commissioner of income-tax of his own motion to call for the record of a proceeding under the act which has been taken by an authority subordinate to him or by himself when exercising the .....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!