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 : 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 : 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-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 : Sep-10-1963
Reported in : (1964)GLR139; 55ITR532(Guj)
..... drawn on british indian banks on behalf of the assessee and accordingly taxed the assessee in respect of such profits under section 4(1) (a) of the income-tax act. the assessee carried the matter in appeal before the appellate assistant commissioner, who, accepting the contentions of ..... of the assessee. we may add that in taking this view we are considerably fortified by the decision of high court of bombay in commissioner of income-tax v. new jehangir vakil mills ltd. 15. our answer to the question referred to us will, therefore, be in the negative. the commissioner ..... on the note appearing at the foot of this statement. the second statement related to the assessment year 1942-43 and was filed before the income-tax officer. this statement gave a detailed analysis showing how various amounts are received by the assessee from british indian buyers in respect of sales effected ..... was based on a decision which had in the meantime been given by the supreme court in new jehangir vakil mills ltd. v. commissioner of income-tax. the high court, however, took the view that the order of remand already made could not be challenged before it. it was then contended ..... collected the amounts due on the cheques and hundis from british indian banks and shroffs on whom they were drawn in british india. the income-tax officer took the view that the assessee received the profits embedded in the disputed amounts in british india inasmuch as the cheques and hundis were .....Tag this Judgment!
Court : Chennai
Decided on : Nov-12-1963
Reported in : AIR1964Mad308
..... as recorded in the balance-sheets, they have neither applied any portion of the income for those objects, nor have they been able to set apart any amounts for these objects.7. at page 196 of kanga's income-tax act, 4th edn. the learned author observes:'in the case of property so held in ..... part only for religious or charitable purposes, the exemption is confined to income in fact applied or finally set apart for application to such purposes. 'income finally set apart i for charitable purposes ..... those clauses of the trust deed directing expenditure upon charitable and religious objects by reason of the fact that a large amount was due to the income-tax department as estate duty and that claim could not be wholly discharged. in the view of the trustees, till these claims had been discharged, it ..... net profits for they are as per profit and loss account to be appropriated in terms of the trust deed and the ascertainment of liability to income-tax and other dues payable'.in the balance sheet for the succeeding year also, the following note finds place-'clause 19 of the trust deed has ..... for the reason that the deed specifies that certain proportions of the net income should be spent for religious and charitable objects, that alone is sufficient to qualify for that exemption from tax under section 4(3)(i) of the act.clause 19 of the trust deed is in these terms:-'the trustees shall .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-17-1963
Reported in : 52ITR1(Bom)
..... on july 29, 1961. by the impugned assessment orders both made on july 29, 1961, the petitioners were reassessed to income-tax under section 34(1a) of the indian income-tax act, and excess profits tax under section 14(1) of the excess profits tax act. copies of these orders are annexed as exhibit h-1 (collectively) to this petition. by the order reassessing the petitioners ..... respondents preventing them from enforcing against the petitioners two reassessment orders dated july 29, 1961, made respectively under the provisions of section 34 of the indian income-tax act and section 15 of the excess profits tax act. the petitioners' main contention is that these orders are illegal, because there is patent want of jurisdiction in the matter of these orders. the ..... and several other cases. chagla c.j., in considering the true effect of section 15, observed as follow : 'section 15 of the excess profits tax act is in terms similar to section 34 of the income-tax act as it was before the recent amendment. section 15, as section 34, requires, as has been often pointed out, three conditions which have got to ..... june, 1961, given opportunity to appear before departmental officers in connection with reassessment of their liability to income-tax and excess profits tax. formal notices both dated july 12, 1961, under section 23(2) of the income-tax act and section 13(2) of the excess profits tax act were served on the petitioners on july 13, 1961. the petitioners by their attorneys' letter dated .....Tag this Judgment!
Court : Mumbai
Decided on : May-03-1963
Reported in : 52ITR254(Bom)
..... 34 of the act, in respect of assessment years 1940-41 to 1948-49. all these notices are in identical terms. in brief ..... hindu undivided family has been in due course assessed to income-tax for the assessment years 1940-41 to 1948-49. the hindu undivided family had also been reassessed for the assessment years 1941-42 and 1943-44 under section 34 of the indian income-tax act (hereinafter called the act). on 23rd march, 1962, the income-tax officer, special investigation circle, poona, issued nine notices under section ..... to time. but, it would be sufficient to notice the provisions of section 34 as they stood prior to the insertion of sub-section (1a) in section 34 by the income-tax (amendment) act (33 of 1954), with effect from 17th july, 1954. section 34, as it then stood, would show that the time-limit was prescribed for the exercise of the power ..... years. that being the position, there arose no conflict between the operation of these two provisions at any point of time. further the legislature by the amending act of 1956 has expressly authorised the income-tax officer to issue notice 'at any time' in respect of cases falling under section 34(1)(a). it is, therefore, for the aforesaid reasons, not possible to .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-23-1963
Reported in : 53ITR63(Bom)
..... of the matter the tribunal dismissed the appeal. the application made by the assessee under sub-section (1) of section 66 of the indian income-tax act failed and on an application made to this court under sub-section (2) of section 66 the tribunal on drawing up a statement of the ..... tambe, j.1. on requisition made by this court under sub-section (2) of section 66 of the indian income-tax act (hereinafter referred to as the act), the income-tax appellate tribunal, bombay, has submitted a statement of the case and referred to this court the following question of law ..... obtained by him. mr. bobde referred us also to the following decisions : dhanwatay v. commissioner of income-tax, ratilal b. daftari v. commissioner of income-tax, piyare lal adishwar lal v. commissioner of income-tax, and commissioner of income-tax v.sitaldas tirathdas. 9. mr. joshi, on the other hand, contends that there is no evidence ..... it was not taxable in the hands of the assessee. this contention raised on behalf of the assessee was not accepted by the income-tax officer. the income-tax officer found that the assessee of which marotirao was the karta was a partner in the partnership concern of shivraj fine litho works, ..... by marotirao was not the income of the hindu undivided family at all and therefore was not liable to be taxed in the hands of the assessee family. the arguments is founded on the provisions of clause (a) of section 13 of the partnership act which provides : 'subject to contract between the partners .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-25-1963
Reported in : (1963)65BOMLR859; 53ITR536(Bom); 1964MhLJ45
..... of the kamptee firm to which we have already adverted. the result therefore was inevitable. a notice was issued under section 34(i)(b) of the income-tax act and the department sought to bring to assessment the item of rs. 5,10,788 and it is the validity of that notice that is questioned in ..... liable to tax. the only contention that has been taken before the tribunal and as appears from the reference made was ..... kotval, j. 1. we are concerned in this reference with a notice issued under section 34(i)(b) of the indian income-tax act whereby the department sought to bring to tax an amount of rs. 5,10,788 paid as interest in the assessment year 1947-48. the circumstances in which the notice came ..... 'whether, under the facts and circumstances of the case, there was any information before the income-tax officer seeking to re-open the assessment so as to invest him with jurisdiction to issue notice under section 34(i)(b) of the income-tax act ?' 6. now, it is not in dispute in the present case that the amount is ..... word 'discovers' and all the learning that has gathered round that word, particularly as to whether it must be something new that the income-tax officer finds before he can act. at present, the requirement s of the law are that he must have information in his possession and on the basis of that information .....Tag this Judgment!