Court : Gujarat
Decided on : Sep-19-1963
Reported in : 55ITR68(Guj)
..... p.n. bhagwati, j. 1. this is a reference under section 66(1) of the income-tax act at the instance of the commissioner. the facts giving rise to this reference may be briefly stated as follows. the assessee is ..... and the same misconception also overtook the tribunal. from the statement of the case and particularly the following passages from the statement of the case : 'the income-tax officer, who made the assessment of the spunpipe and construction co. ltd., worked out the surplus or excess resulting from the purchase of the ahmedabad factory ..... the valuation of the closing stock was necessary. for the reasons we have given while rejecting a similar contention advanced in relation to the order of the income-tax officer, we also reject the present contention in relation to the order of the appellate assistant commissioner. 10. it is, therefore, clear that the appellate ..... resulting consequently in the increase of the profit of the assessee for the year ending 30th july, 1954. the learned advocate-general pointed out that the income-tax officer had disallowed a sum of rs. 69,746 as the excess value debited to the trading account in respect of trading assets whereas the appellate ..... of the order of the tribunal those questions were as follows : '(1) whether, on the facts and in the circumstances of the case, the income-tax officer is justified in making a fair and reasonable allocation of the coat of different assets for the purpose of ascertaining capital and revenue profit from the .....Tag this Judgment!
Court : Gujarat
Decided on : Sep-23-1963
Reported in : 55ITR517(Guj)
..... p.n. bhagwati, j. 1. this is a reference under section 66(1) of the income-tax act at the instance of the assessee. the assessee is one ratilal khushaldas patel, who has been assessed as an individual. the assessment year with which ..... it is clear that the contention of the learned advocate-general is correct. it is supported by the decision of this court in keshavlal lallubhai patel v. commissioner of income-tax. in that case it was held by a division bench of this court consisting of k. t. desai c.j. (as he then was) and myself ..... vittal v. bolla rattain, a case which was accepted as laying down the correct law on this point by this court in keshavlal lallubhai patel v. commissioner of income-tax. this being the position, what we have to consider is whether the five annas share which until 31st march, 1956, the assessee held as his separate property ..... annas share was, therefore, not liable to be included in his individual assessment but could be included only in the assessment of the hindu undivided family. the income-tax officer took the view that the transfer of the five annas share by the assessee to the hindu undivided family was hit by section 16(3) (b) ..... hindu undivided family in the books of account of the partnership. in the course of the assessment of the assessee for the assessment year 1957-58, the income-tax officer sought to include the five annas share standing in the name of the assessee in the partnership in his individual assessment. the assessee contended that the .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-11-1963
Reported in : 51ITR29(Bom)
..... family. by an order dated 28th march, 1949, assessment was made for the year 1944-45. on 17th may, 1949, recovery certificate was issued under section 46 (2) of the income-tax act for recovering the amount that was due by the assessee for the year 1944-45. in the year 1949 an attachment was levied upon the immovable properties belonging to the ..... to the collector in october or november, 1961, that on 12th october, 1950, as per the recovery certificate sent under section 46 (2) of the income-tax act, the demand for the assessment years 1944-45 to 1947-48 came to rs. 8,86,889.30 np. against the said khimji. after the receipt of the certificate, some ..... still pending. pending the said appeals, the cases of the various firms of messrs. teju kaya and co. were referred to the income-tax investigation commission under section 5 (1) of the income-tax investigation commission act. it appears that thereafter the income-tax officer made fresh assessment orders for the eight years from the year 1942-43 to 1949-50 against the hindu undivided family of ..... years 1944-45, 1945-46, 1946-47 and 1947-48 for rs. 11,50,252.87 np. and that the fourth income-tax officer, e-ward, bombay, issued to the collector of bombay certificate under section 46 (2) of the act in respect of the aforesaid amount. pursuant to this order, attachment has been denied upon the immovable properties belonging to the hindu .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-24-1963
Reported in : 51ITR460(Bom)
..... . 21,000. the company has distributed a dividend of rs. 29,000. even on this footing, with respect, it is not possible to sustain the order section 23a of the income-tax act. 10. for the reasons stated above, in the result we answer the question referred to us in the negative. 11. the department shall pay the costs of the assessee. 12 ..... rs. 29,000. in these circumstances, in our opinion, the tribunal was not justified in holding that this was a case in which an order under section 23a of the income-tax act should be made. 9. it has been argued on behalf of the revenue that the commercial profits ascertained are not rs. 61,483 but rs. 61,483 plus rs. 24 ..... ., rs. 29,100, being less than 60 per cent. of the balance, action under section 23a of the income-tax act was taken by the income-tax officer against the assessee. the order of the income-tax officer was affirmed in appeal by the appellate assistant commissioner of income-tax as well as by the appellate tribunal. 4. the contention raised by the assessee was that having regard to ..... extent of rs. 30,000 and that according to the assessee company had to be taken into account in consideration the question whether an order under section 23a of the income-tax act should be made or not. 7. the contention of the assessee company is well-founded on the language of the section as it then stood which directs the .....Tag this Judgment!
Court : Allahabad
Decided on : Jan-02-1963
Reported in : AIR1963All495
..... distributed only under-section 73 of the c. p. c.'the view then is manifestly unsustainable. the wordings of sec. 46(2) of the income-tax act, 1922 and section 8, sub-clause (1) and sub-clause (8) of the u. p. sales-tax act are in pari materia and therefore the distinction drawn by the civil judge between priority that can be given to ..... income-tax dues and sales-tax dues is without substance.3. the learned civil judge failed to notice sub-clause (3) of section 73 of the c. p ..... no warrant for distinguishing the right of government to priority in respect of arrears of income-tax and sales-tax. therefore, where there is a competition between private unsecured creditors 'and the state the claim of the state will prevail. set income-tax officer v. chandanbai : air1957bom91 and manickam chettier v. income-tax officer air 1938 mad 360 (fb).4. for these reasons the order of the ..... state of uttar pradesh against the order of the additional civil judge, dehra-dun dated the 12th of november, 1960 whereby [t was considered that the demand for income-tax had priority over unsecured creditors but not the demand for sales-tax.2. there were amounts lying in the court of the civil judge belonging to sant lal who was in arrears of .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Mar-27-1963
Reported in : AIR1964SC697; 49ITR112(SC); 2SCR552
..... ,regard being had to the principles we have explained above. 19. the argument that as this was a case under s. 34 of the income tax act,it cast a special burden on the department to show that this income had escapedearlier, need not detain us. no doubt, proceedings under s. 34 can only becommenced under the conditions prescribed in the section, but when ..... , and hence this appeal. 5. the connection of the appellants is that since the department had issueda notice under s. 34 of the income tax act, it was incumbent on the departmentto establish that the amount in question was income which had escapedassessment. the appellants also contend that even if the assessee was requiredto prove the source of the high denomination notes, he had ..... was also a contractor for raising coal. this matterrelates to the assessment year 1946-47. for that year, banerjee was assessed onan income of rs. 1,28,738. the assessment was then re-opened under s. 34 of theindian income-tax act, and was enhanced, but subsequently on appeal, it wasreduced to a sum a little below the original assessment. the present assessmentwas made ..... notes came into hispossession, as his transactions were frequent. the notice which was issued tohim under s. 34 of the income tax act, was not questioned on any of the groundswhich are usual in such cases. banerjee's explanation was not accepted. theincome tax officer pointed out that although his business was large and thewithdrawals from the various banks were large and frequent, he .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-04-1963
Reported in : AIR1967SC290; 49ITR144(SC); 2SCR847
..... the abolition regulation. these payments were brought to tax under the income-tax act, 1922 as income. the appellants contended that they were capital and not liable to be taxed. he took various proceedings and eventually a case ..... was stated to the high court of andhra pradesh for decision of the following question : 'whether the interim maintenance allowances received by the assessee under the hyderabad (abolition of jagirs) regulation, 1358 fasli, are income and therefore liable to tax ..... income chargeable to profits tax as profits of a trade or business carried on by the assessee company. the decision was that the payments were not income or profit of any trade or business. 18. we will first read from a part of the judgment of jenkins l.j. in the court of appeal. he said (p. 437), 'the act ..... of 1946 studiously avoids describing the interim income ..... the communication sum or interim maintenance. it was for that reason that the tribunal directed the income-tax officer concerned to institute an enquiry as to the nature of these three payments. apparently, the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-10-1963
Reported in : AIR1964SC318; 49ITR137(SC); 2SCR971
..... j. 1. this is an appeal on a certificate of fitness granted by the high courtof bombay under s. 66-a(2) of the indian income-tax act, 1922. the new jehangirvakil mills co., ltd. bhavnagar, appellant before us and called the assessee,carried on the business of manufacturing and selling textile ..... start thetrading activity at an earlier date if the assessee was a dealer when theshares sold in 1944 were originally purchased, then obviously the principle incommissioner of income-tax v. bai shirin bai k. kooka : 46itr86(sc) , will not apply and the profits will be the excess of the sale price ..... year 1945-46. it is however manifest that if the assessee was adealer in 1943 also, then the principle laid down by this court in commissionerof income-tax v. bai shirinbai k. kooka : 46itr86(sc) , will notapply, for that decision proceeded on the footing that the assessee of thatcase converted ..... bhavnagar state. the present appeal is concerned withthe assessment year 1945-46, the account year being the calendar year 1944. inthe said assessment year the income-tax officer concerned added to the taxableincome of the assessee a sum of rs. 1,86,931/- (which was later reduced to rs.1,23,840 ..... court under s. 66(2) of the act. the third question doesnot now survive, and therefore we set out below the two questions which fallfor decision in this appeal : 1. in the event of the surplusaforesaid being held to be income assessable to income-tax whether the incomeshould be ascertained by taking the .....Tag this Judgment!
Court : Gujarat
Decided on : Aug-22-1963
Reported in : (1964)0GLR31; 53ITR23(Guj)
..... to its solution is to be derived from any decided authority. that question turns on the true interpretation to be put upon the provisions of section 17(1) of the income-tax act, 1922. these questions which have been submitted to this court by the tribunal arise out of an assessment made on one girdharlal ghelabhai as an individual for the assessment year ..... two different previous years for the same assessment year but that view was altered by the amendment effected by the income-tax (amendment) act, 1939, and it is now possible for an assessee to have different previous year for each separate source of income. the language of the opening part of section 2(11) clearly shows that 'previous year' is defined in reference to ..... word 'year' occurring in section 4a(a). 4. section 3 is the charging section and it imposes tax for each assessment year at the rate or rates prescribed in the finance act for the time being in force and such tax is charged on 'the total income of the previous year'. 'previous year' as defined in section 2(11) may be either the financial ..... 4(1) prescribes the ambit of taxation and lays down what is the total income of the previous year of any person which, subject to the other provisions of the act, is chargeable to tax under section 3. it defines the extent of the total income with reference to the residence of the assessee. all assessees are divided into three categories : (a) resident and .....Tag this Judgment!
Court : Gujarat
Decided on : Sep-12-1963
Reported in : 55ITR486(Guj)
..... on record. the position, therefore, is that whereas the tribunal has allowed rs. 1,86,142 which, it is true, represents the normal depreciation computed under the provisions of the income-tax act, mr. shah for the assessees wants a higher amount of depreciation, namely, rs. 2,32,234 would be the amount of depreciation for the purpose of computing commercial profits of ..... be the one shown in the balance-sheet of the business concern and that is not to be confused with depreciation permissible under the artificial and statutory rules contained in income-tax act which rules are resorted to by the department for arriving at the true assessable profits. it is the depreciation shown in the balance-sheet for computing commercial profits arrived at ..... in the way it looked at its question, and the error was in not appreciating the distinction between the depreciation calculated on the bases of the statutory provisions of the income-tax act for the purpose of computing assessable profits on the one hand and depreciation computed by a business concern for the purpose of arriving at its true commercial profits. it is ..... was depreciation, whether it was normal or initial or additional depreciation and, therefore, the tribunal was in error in allowing only the normal depreciation calculated under the provisions of the income-tax act, namely, rs. 1,86,143. 10. it appears from the order passed by the tribunal that this was the very contention raised before it on behalf of the assessees. this .....Tag this Judgment!