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 : 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!
Court : Mumbai
Decided on : Apr-26-1960
Reported in : 41ITR313(Bom)
..... the transaction which was a sale of trees of spontaneous growth. mr. joshi has argued that the legal position with regard to the income from sale of trees of spontaneous growth is now well settled. such income is not agricultural income but income liable to tax under the income-tax act. the sale proceeds, therefore, which the assessee has realised in the present case were not exempt from ..... constituted a diminution of the assessee's capital asset. at the instance of the commissioner, it referred the following question to this court under section 66(1) of the indian income-tax act : 'whether on the facts and circumstances of the case the receipt from the sale of trees by roots is capital in nature and exempt from ..... income-tax. 4. mr. joshi has further argued that the trees on the land having grown spontaneously there is no question of a capital structure created ..... v.s. desai, j.1. in this reference, which the tribunal has made to us under section 66 (1) of the indian income-tax act, the point in dispute is whether the receipt of the sale proceeds of the trees standing on the grasslands of the assessee for a number of years and which have .....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 : Madhya Pradesh
Decided on : Jan-19-1960
Reported in : AIR1960MP278; 39ITR99(MP)
..... dixit, c.j.1. this reference under section 66(1) of the indian income-tax act relates to the assessment to income-tax of one sorabji framji kerawala as an individual. the question referred to for the decision of this court by the income-tax appellate tribunal is as follows :'whether interest paid by the assessee on money borrowed from outsiders for making advances to the firms in ..... the firm itself is liable to pay tax and is assessed like an individual; and that in the case of a registered firm when the profits ..... a registered firm to claim any deduction whatsoever against the amount of profit determined by the income-tax authorities as the profits of the firm.while dealing with the case, the learned chief justice emphasized the distinction between a registered and an unregistered firm under the income-tax act and pointed out that when a firm is unregistered, the unregistered firm is the assessee and ..... borrowed for the purposes of a business the profits of which are not assessable under the act, then no deduction can be claimed under clause (iii) in respect of interest on such borrowings. (see in re. provident investment co., air 1932 bom 94 and commissioner of income-tax v. somasundaram, air 1928 mad 487). here, the assessee was a partner of two .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Jul-22-1960
Reported in : AIR1960SC1326; 1SCR71
..... follows. for the assessment year 1948-49, the appellants failed to file a return within the prescribed time and the income-tax officer, acting under s. 28(1)(a) of the indian income-tax act, issued a notice to them to show cause why penalty should not be imposed. in answer to this notice, the ..... having been granted, this matter comes up before us. 4. there is no question here that the requirements of s. 28(1)(a) of the income-tax act were not completely fulfilled. if the appellants had not filed their return, as they were required by law to do, the omission would attract clause ..... without affording a hearing to them as required by the third sub-s. of s. 28 of the income-tax act. the matter was taken up in appeal before the appellate assistant commissioner of income-tax, who, pointing out that an opportunity of being heard was not granted to the appellants, held that the ..... imposed without affording to the assessee a reasonable opportunity of being heard. this opportunity was denied to the appellants and therefore the order of the income-tax officer was vitiated by an illegality which supervened, not at the initial stage of the proceedings, but during the course of it. the ..... he would proceed to determine the question of penalty, taking into consideration only the written statement which had been filed earlier. before, however, the income-tax officer could decide the case, the appellants filed a petition under art. 226 of the constitution for the issuance of the writs mentioned above. this .....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 : Oct-25-1960
Reported in : AIR1961SC362; 41ITR169(SC); 2SCR74
..... properties or assets which constitute the wake nor on the amount of income derived from the wake estate, is not agricultural income within the meaning of section 2(1) of the indian income-tax act even though the income derived by the wake estate is from properties used for agricultural purposes. 10. in premier construction co., ltd. v ..... under section 4(3)(viii). 8. we may briefly refer to the authorities which illustrate the meaning of 'agricultural income' in section 2(1) of the income-tax act. 9. in nawab habibulla v. commissioner of income tax, bengal (1943) l.r. 70 indap 14 privy council held that the remuneration received by a mutwalli of a wake estate, not depending on the nature of the ..... . commissioner of income tax, bombay city (1948) l.r. 75 indap 246 it was held by the privy council that income received by an assessee not itself of a character to ..... received by the appellant under a contract, and it was not agricultural income, merely because the source of the money was agricultural income. the high court accordingly answered the fifth question 'against the assessee.' this appeal is filed by the appellant with leave under section 66a(2) of india income-tax act granted by high court limited to the question whether the amount received by .....Tag this Judgment!