Court : Supreme Court of India
Decided on : Dec-05-1960
Reported in : 41ITR534(SC); 2SCR904
..... and is open to challenge before the high court on a reference under section 66 of the income tax act - g. venkataswami naidu & co. v. commissioner of income tax  supp. 1 s.c.r. 646 it was held in the oriental investment co., ltd. v. the commissioner of income tax, bombay  s.c.r. 49 that the question whether the appellants' transactions amounted to ..... shah, j.1. the high court of judicature at bombay answered the following two questions referred by the income tax appellate tribunal, bench 'b', bombay, under section 66(1) of the indian income tax act, 1922 : (1) whether the acquisition of the managing agency of the dawn mills co., ltd., was in the nature of a 'business' carried on by the assessee company (2) if ..... price whichever was lower and to claim the difference between the opening and closing valuation as a trading loss. the appellate assistant commissioner confirmed that order. in appeal, the income tax appellate tribunal held that the managing agency of the dawn mills was acquired by the appellants as a part of their business activity and the shares of the mills having ..... private limited company registered under the indian companies act, 1913, and carry on business as brokers, managing agents and dealers in shares and securities. one of the objects for which the appellants were incorporated was to acquire managing agencies. the appellants also carried on business in shares of different companies, and were assessed to income-tax as dealers in shares and securities. 4 .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Nov-07-1960
Reported in : 44ITR506(SC)
..... dated march 22, 1957, dismissing summarily an application under section 66 (2) of the income-tax act for a direction to the appellate tribunal to state a case. these appeals have been filed with special leave restricted to 'the question relating to the transactions in sovereigns only ..... leave under article 136 of the constitution. 2. appeal no. 407 of 1958 is filed against the order of the income-tax appellate tribunal, calcutta bench, calcutta, dated december 7, 1955, refusing to state a case under section 66 (1) of the indian income-tax act, 1922. appeal no. 408 of 1958 is filed against the order of the high court of judicature at calcutta ..... account of the bombay branch were unreliable and the other evidence produced by the appellant regarding the prevailing rates was unsatisfactory. we are unable to accept this contention. the income-tax officer has calculated the gross profit at an overall rate on all the transactions in sovereigns in the bombay branch including dispatches of sovereigns to karachi and local sales in ..... and he has given due consideration to the fact that the assessee had made considerable sales to karachi office.' 5. against this order, an appeal was preferred to the income-tax appellate tribunal. the tribunal rejected the contention raised by the appellant observing in paragraph 8 of the judgment that 'for the reasons given by the appellate assistant commissioner with regard .....Tag this Judgment!
Court : Kerala
Decided on : Jul-25-1960
Reported in : AIR1962Ker9; (1961)ILLJ66Ker
..... formula, the employer is entitled to claim the appropriate amount of income-tax payable on the profits determined under the formula, even though under the provisions of the aforesaid section of the income-tax act, he may not be required to pay the said tax. in view of the said decision, we must hold that ..... the tribunal was in error in not allowing the appellants' claim for deduction of rs. 2.25 lakhs as a prior charge under the item of income-tax payable for ..... situation. therefore, the writ petition is allowed withthe direction that the tribunal must ascertain thesurplus profit available for distribution as bonus,after deducting the income-tax amount of the firm,and must further determine how far the gratuityscheme should continue, in view of the providentfund scheme having been extended to the ..... profits according to the general method for ascertaining profits. we feel that from this stand-point, the tribunal has erred in not deducting the income-tax amount charged on the firm. the writ petitioner's counsel has also argued that the tribunal has further erred in not giving his client other ..... parts of the award on two grounds, which are:--1. the tribunal has erred in not deducting from the gross profit the entire amount of income-tax payable by the firm, and has allowed only what the partners been held liable to pay, thereby increasing the profit made available for purposes .....Tag this Judgment!
Court : Allahabad
Decided on : Mar-23-1960
Reported in : AIR1960All722; 39ITR534(All)
..... reason why the previous year for the cloth business could not be treated as the previous year in respect of this undisclosed source, section 2(11) (i) (a) of the income-tax act in effect lays down that, ordinarily, the previous year shall be the financial year next preceding the, assessment year and it is only if the two particular conditions are satisfied ..... subsidiary to the cloth business.in such a case, the previous year will have to be computed in accordance with the provisions of section 2(11) (i) (a) of the income-tax act as applicable to that undisclosed source and not as applicable to the cloth business. there being nothing to show that any accounts, in this particular case, in respect of that ..... , in these circumstances, to be impassible to hold that the assessee could have exercised the option required to be exercised by him under section 2(11) (i) (a) of the income-tax act. a person, who denies the existence of the source altogether, denies the maintenance of accounts in respect of that source and denies that any ..... year for the cloth business,the contention of the assessee was that, ordinarily, under section 2(11) (i) (a) of the income-tax act, this amount, which appeared as a receipt on the 2nd of september, 1943, should have been brought to tax in proceedings of assessment for the assessment year 1944-45 for which the previous year would be the financial year from .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Sep-02-1960
Reported in : AIR1961SC182; 40ITR618(SC); 1SCR474
..... the market value is less than rs. 1-7-9 the appeal must fail'. 6. the commissioner of income-tax then applied to the tribunal for a reference under section 66(1) of the income-tax act, stating that a question of law arose out of the tribunal's order inasmuch as the tribunal was not ..... and order of the judicial commissioner dated february 14, 1956 and issue an order directing the respondent to carry out the directions given by the income-tax appellate tribunal bombay, in its judgment and order dated april 22, 1954. the appellant company will be entitled to its costs in the proceedings ..... panchayat, vidul of vidul v. multi purpose co-operatives society of vidul a.i.r. 1954 nag. 82 and messrs. senairam doongarmall v. commissioner of income-tax, assam a.i.r. 1955 guj 201 in the view which we have expressed, namely, that by the impugned order the respondent failed to carry out a ..... become final and binding on the parties, and the respondent could not question it in any way. as a matter of fact the commissioner of income-tax had made an application for a reference, which application was subsequently withdrawn. the judicial commissioners was not sitting in appeal over the tribunal and we ..... law and had acted illegally. having found this, the learned judicial commissioner went on to examine the correctness or otherwise of the order of the tribunal and found that the tribunal went wrong in not treating the centers as 'markets' within the meaning of r. 23 of the income-tax rules. he then .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Dec-12-1960
Reported in : AIR1961SC1139; 41ITR630(SC); 3SCR174
..... also contended that they were entitled to carry forward the loss amounting to rs. 12,905 to the succeeding year under s. 24(2) of the income-tax act. these contentions were not accepted by the income-tax officer, to whose order it is not necessary to refer in detail. the assessment for the assessment year 1949-50 was also done on similar lines. 4 ..... of the high court proceeds. in our opinion, the matter is simple, and can be stated within a narrow compass. under s. 3 of the income-tax act, income-tax is chargeable for an assessment year at rate or rates prescribed by an annual act in respect of the total income of the previous year. section 14(2)(a), before its amendment in 1956, provided that the ..... other source, so it stands to reason that his loss from other sources cannot also be set off against his share income from an unregistered firm.' 9. the decision of the tribunal was not based upon any specific provision of the income-tax act but upon a parity of reasoning, by which a specific provision about loss was held to apply the other way ..... round also. the high court correctly pointed out that all that section 14, sub-s. (2), did was to save the profits of an unregistered firm from liability to tax in the hands of the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Mar-30-1960
Reported in : AIR1960SC907; (1960)62BOMLR1085; 39ITR540(SC); 3SCR417
..... of the point actually decided. the twodecisions are thus strangers to each other, though they lead to the sameresult. 9. section 66 of the income-tax act which confers jurisdiction upon the highcourt only permits a reference of a question of law arising out of the order ofthe tribunal. it does not ..... it did. but the two matters were neither co-extensive, norwas the one included in the other. the question of accrual of income has to bedivided under the income-tax act, and has but little to do with the concessionsorder. that question can be adequately decided on the facts of this casewithout advertence to ..... at the instance of the assessee drew up a statement of thecase under section 66(1) of the indian income-tax act, and referred thefollowing question to the high court : 'whether the net dividend income of rs. 47,120accrued to the assessee in the former baroda state, or whether it is incomeaccrued or deemed ..... high court were entirely different, which isthe case here. the punjab high court has taken a contrary view in mash tradingco. v. commissioner of income-tax . 11. for the reasons given above, we are of opinion that the high courtexceeded its jurisdiction in going outside the point of law decided ..... out ofthese accumulated profits by three resolutions, which are reproduced : 25-3-1949. 'that a furtherdividend of rs. 17 per ordinary share free of income-tax for the year 1947 beand is hereby declared absorbing rs. 4,29,250 and the same be payable in navsariout of the profits of the year .....Tag this Judgment!
Court : Kerala
Decided on : Feb-02-1960
Reported in : AIR1960Ker329
..... doing it when he had sufficient funds available for introduction into business lying idle at home'.2. an application under section 66(1) of the income-tax act having been rejected by the tribunal, the assessee came to this court, and the following two questions were directed to be referred by the division ..... when there be no evidence to support it, or if it be perverse. again it has been affirmed in omar salay mohammed sait v. commissioner of income-tax : 37itr151(sc) that the conclusions reached by such tribunal should not be coloured by any irrelevant considerations or matters of prejudice, and if there ..... to think that its findings on fact are sacrosanct, and immune from the scrutiny of this court.in sree meenakshi mills ltd v. commr. of income-tax : 31itr28(sc) one of the propositions laid down by the supreme court is that a finding on a question of fact is open ..... the explanation was proper; for the legal position after the explanation be rejected has now been clarified by several decisions. in govindaraiulu mudaliar v. commr. of income-tax. : 34itr807(sc) , venkatarama aiyyar, j., has held that where an assesses fails to prove satisfactorily the source and nature of certain amounts of ..... 24,128-14-0 was again shown as a credit item to bring back what was fictitiously shown to have been taken out by withdrawals.the income-tax officer has rejected the explanation on the grounds that the assesses was in 1950 building an oil mill, was then drawing funds from his grocery .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-28-1960
Reported in : 46ITR236(Bom)
..... on parasare was not service as contemplated by law. 5. the mode of service of notice or requisition provided in section 63(1) of the income-tax act is, in our opinion, not exhaustive and it is permissible to have the notice effected in a way other than the two modes mentioned in ..... authority be held as sufficient, there was no such implied authority in the present case. section 63(1) of the indian income-tax act states : 'a notice or requisition under this act may be served on the person therein named either by post or, as if it were a summons issued by a court, ..... which was made by the assessee under section 27 of the income-tax act for cancelling the ex parte assessment and for making a fresh assessment order under section 23. his application was rejected by the income-tax officer and the decision of the income-tax officer has been confirmed by the appellate assistant commissioner and also ..... of this notice and the letter. in view of these facts, the tribunal came to the conclusion that sri parasare was acting as duly accredited agent in his dealings with the income-tax officer throughout, and, therefore, had the implied authority to accept service of notice on behalf of the firm. it ..... 3) for levy of penalty and many other processes without any objection from the assessee firm. the notice under section 23(2) along with the income-tax officer's letter dated 4th january, 1957, fixing the appointment for 18th january, 1957, and directing the assessee to produce all evidence and informing .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-02-1960
Reported in : 39ITR706(Bom)
..... may be regarded as axiomatic - is that in assessing the yearly profits and gains of a business for the purpose of the income-tax act, each year is a self-contained period. we have said all this at the very outset, because we have been very strongly reminded by mr. g. n. joshi, learned counsel ..... the following questions of law have been raised in the statement of the case : '(i) whether the order of the commissioner of income-tax under section 33b(1) during the pendency of the proceedings under section 34 of the act is illegal or void (ii) whether the amount of rs. 97,000 surrendered by the assessee company could be allowed as a revenue ..... of tax law. one such principle expressed in the laconic style of lord macnaghten is that income-tax is a tax on income - an expression of wide connotation and elastic ambit. another principle - one of computation which also ..... , j.1. this reference raises a question of some importance and the income under assessment relates to managing agency commission. it is trite saying that income-tax is not and cannot be cast on logical lines. no considerations of equity or hardship can be permitted to control the application of the act. nor is it permissible to the court to disregard any axiomatic principle .....Tag this Judgment!