Court : Mumbai
Decided on : Jun-15-1978
Reported in : 114ITR515(Bom)
..... accrued to the taxpayer. it was further of the opinion that the proper head under which the income was required to the assessed was the final head to be found in section 14 of the income-tax act, 1961, viz., 'income from other sources.' it is the correctness of these conclusions of the tribunal which has been questioned in this reference before us. 6. the ..... other sources'. in the first place, our attention was drawn to the definition of 'income' to be found in clause (24) of section 2 of the income-tax act, 1961. according to this sub-section, 'income' includes : (iii) the value of any perquisite or profit in lieu of salary taxable under clauses (2) and (3) of section 17;....' (va) the value of any benefit or ..... learned counsel for the assessee has very strenuously urged that the tribunal was in error in coming to the conclusion that such payment by ballarpur constituted the income of the assessee ..... reason of the provision to be found in section 2(24)(iii) read with section 17 of the act. similarly, it was argued that such a benefit arising from business or exercise of a profession could be considered as income liable to assessment and tax only by reason of the provision to be found contained in section 2(24)(va) read with section .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-28-1978
Reported in : (1979)8CTR(Bom)116; 124ITR641(Bom)
..... whether, on the facts and in the circumstances of this case, it could be held that the assessee was entitled to relief under section 49bb of the indian income-tax act, 1922, and if so, to what extent ?' 8. if the order of the tribunal is properly perused, it would be found that the tribunal has ..... s. 49bb read together with expln. ii thereof. before going to these provisions, it may be mentioned further that there is no dispute that in the income-tax assessment for his year, i.e., assessment year 1960-61, the assessee was allowed depreciation and development rebate in the aggregate figure of rs. 19,66, ..... the assessee to the profit and loss account in the earlier years and as such there was no allowance allowed by the department for the purposes of income-tax which was not debited by the assessee to its profit and loss account. accordingly, it was submitted that the application of expln. ii was unwarranted. ..... year 1960-61, this system was changed and the old s. 49b deleted. as a consequence no credit was given to the shareholders in respect of income-tax paid by the company on its own profits. this change, however, created an anomalous situation in respect of those cases where a company earned profits in ..... 49bb of the indian i.t. act, 1922, on the dividend of rs. 1,82,250 declared by it for the financial year ended march 31, 1960. the relief claimed was on the footing the said dividend was wholly declared out of the profits already charged to income-tax before april 1, 1960. 2. during .....Tag this Judgment!
Court : Gujarat
Decided on : Oct-13-1978
Reported in : 163ITR381(Guj)
..... dated may 31, 1977. it will be open to the tribunal to dispose of the appeal pending before it under section 260(1) of the income-tax act, 1961, in the light of the observations made by us after determining the question which ought to be decided in the light of the circular ..... circular no. 220, dated may 31, 1977, issued by the central board of direct taxes. the circular is directed to all commissioners of income-tax and is headed 'section 40a(3) of the income-tax act, 1961 - rule 6dd(j) of the income-tax rules, 1962 - clarification regarding'. this circular clarified the circumstances in which the conditions laid ..... them and hence the cases which, according to the board, would be covered by the rule 6dd(j), could not be considered either by the income-tax officer or by the appellate assistant commissioner or by the appellate tribunal. 8. under these circumstances, it will be better to apply the formula adopted ..... government specified, by notification in the official gazette, that 31st march, 1969, was the specified date under section 40a(3). rule 6dd of the income-tax rules, 1962, provides for cases and circumstances in which payment in the sum of rs. 2,500 may be made otherwise than by a crossed cheque ..... 66(5) (of the old act) in the light of the answer of this court. if we direct the tribunal to submit a supplementary statement of the case, the tribunal will, according to the decisions of this court in new jehangir vakil mills co. ltd. v. commissioner of income-tax : 37itr11(sc) .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-15-1978
Reported in : 118ITR613(Bom)
..... machinery on deferred payment basis, did not form a part of the actual cost of the assets the assessee within the meaning of section 43 of the income-tax act, 1961, and that the same was allowable as revenue expenditure (iv) whether, on the facts and in the circumstances of the case, the tribunal was ..... by this court : '(i) whether, in order to adjudicate upon the correctness of the orders of the additional commissioner under section 263(1) of the income-tax act, 1961, the tribunal was competent to go into the merits of the case and determine whether the expenditure relating to guarantee commission, stamp charges and interest formed ..... and development rebate in respect of the amount of interest were prejudicial to the interests of revenue within the meaning of section 263(1) of the income-tax act, 1961 ?' 12. mr. joshi, on behalf of the revenue, urged that the tribunal was not competent to go into the merits of the case ..... of the ito were confirmed in appeal by the aac. the assessee accepted the said decision of the aac and did not prefer any appeal to the income-tax appellate tribunal for any of the two years. accordingly, during the assessment years 1965-66 and 1966-67, relevant to the accounting periods ending on june ..... go into the merits of the case. it held that since an appeal lay to the tribunal against the order of the cit passed under s. 263(1) of the i.t. act, the tribunal had jurisdiction to adjudicate upon the correctness of the order. on merits, it held that the orders of the .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-14-1978
Reported in : 121ITR762(Bom)
..... desai, j.1. in this reference the following two questions have been referred to us under s. 256(1) of the income-tax act, 1961, at the instance of the commissioner : '(1) whether there was any material before the tribunal to hold that the transaction of earning ..... of the assessee observing that the interest paid on the fixed loan was not expenditure wholly and exclusively incurred for the purpose of earning or making the income chargeable to tax under the head 'other sources'. he accordingly rejected the appeal on this point. 4. the assessee carried the matter further to the tribunal. before ..... the interest paid on the fixed loan can be capitalised and was not available to be set off against deduction of interest received which had been taxed under the head of 'income from other sources'. however, he allowed the sum of rs. 2,000 as a deduction on estimate. the matter was carried further by the ..... this connection he drew our attention to the observations in the judgment of a division bench of this court in cit v. mimraj manmal ruia : 84itr673(bom) . in that case the assessee had returned an income of rs. 27,677 from dividends and claimed against it a deduction of rs. 18,934 which was made ..... by mr. joshi that the interest earned by the assessee by reason of its fixed deposits kept with banks was chargeable as income from other sources under s. 57 of the i.t. act, 1961, and that only the expenditure laid out or expended wholly and exclusively for the purpose of making or earning such .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-19-1978
Reported in : (1979)9CTR(Bom)288; 123ITR677(Bom)
..... . 1 is in the affirmative, whether, on the facts and in the circumstances of the case, the penalty levied by the income-tax officer under section 221(1) of the income-tax act, 1961, and modified by the appellate assistant commissioner was liable to be cancelled ?' 2. the assessee is a private limited company doing ..... firm of which he is a partner) is made in respect of a previous year later than that referred to in the order of the income-tax officer, the income-tax officer may make an amended order requiring the assessee to pay in one instalment on the specified date, or in equal instalments on the specified ..... referred to the high court under s. 256(1) of the i.t. act, 1961, at the instance of the commissioner : '(1) whether, on the facts and in the circumstances of the case, the order passed by the income-tax officer under section 210(2) was invalid (2) if the answer to question no ..... relevant time provided as follows : '210(3). if, after the making of an order by the income-tax officer under this section and before the 15th day of of february of the financial year tax is paid by the assessee under section 140a, or a regular assessment or a provisional assessment under section ..... dates, if more than one, falling after the date of the amended order, the advance tax computed on the basis of the total income on which tax has been paid under section 140a or in respect of which the regular assessment or the provisional assessment aforesaid has been made .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-10-1978
Reported in : (1979)8CTR(Bom)226; 126ITR191(Bom)
..... considering whether the payment of a dividend or a larger dividend than that declared by a company would be unreasonable within the meaning of section 23a of the indian income-tax act, 1922, does not assess any income to tax. he only does what the directors should have done putting himself in their place. though the object of the section is to prevent evasion of ..... the case, the tribunal was justified in law in cancelling the order under section 23a(1) levying additional super-tax for the assessment year 1956-57 (2) whether an order under section 23a of the indian income-tax act, 1922, after its amendment by the finance act, 1955, is an order of assessment to which the period of limitation prescribed by section 34(3) applies ..... the problem with a sympathetic and objective approach. in deciding whether the payment of a dividend or a larger dividend than that declared by the company would be unreasonable, the income-tax officer can take into consideration circumstances other than losses and smallness of profit. the statute, by the words used, while making sure that 'losses and smallness of profits' are ..... dividends is judged by business considerations, such as the previous losses, the present profits, the availability of surplus money and the reasonable requirements of the future and similar others. the income-tax officer must take an overall picture of the financial position of the business. he should put himself in the position of a prudent businessman or the director of a company .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-04-1978
Reported in : 126ITR497(Bom)
..... declared that the loss computed in that year could not be carried forward to the next year under section 24(2) of the income-tax act, as it was not a business loss. the income-tax officer has under section 24(3) to notify to the assessee the amount of loss as computed by him, if it is established in the course of section 24 ..... of the loss or depreciation of a particular year would be governed clearly by the provisions of the indian i.t. act, 1922. section 6 of the said act gives the several heads of income chargeable to income-tax. one of such heads of income is 'profits and gains of business, profession or vocation', which we find subsequently dealt with under s. 10 of the said ..... act. another of such heads of income is 'income from other sources' which is dealt with under the provisions contained in s. 12 of the ..... said act. in respect of profits and .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-03-1978
Reported in : (1979)10CTR(Bom)252
..... ito has taken the view that such initiation is justified u/s 34(1)(b). it will be appropriate in this connection to refer to the relevant provisions of the income-tax act then prevailing as well as the appropriate clauses of the agreement. 14. at the relevant time the provisions of s. 49a and 49aa as they then existed were as under ..... of the commissioner and the question referred to us pertains to the validity of the notice initiating proceedings u/s 34(1)(b) of the indian income-tax act, 1922. however, very curiously the notice issued by the income-tax officer to the assessee for the proposed re-opening under this section is not to be found annexed to the statement of case. as already ..... income of rs. 1,19,918/-. the full dividends including the amount of rs. 19,010/- received from the mills ..... was taken to be dividends arising in pakistan. in the order it is stated 'pakistan income is to be taken for rate proposes only'. 2. the assessment for this year was reopened u/s 34(1)(b) of the income-tax act, 1922, on the ground that the assessee's income had been subject of excessive relief. the revised assessment was completed on a total .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Jun-07-1978
Reported in : 120ITR185(AP)
..... in the circumstances of the case, the appellate tribunal is correct in holding that in terms of sub-section (4) of section 80g of the income-tax act, 1961, the assessee was entitled to deduction of a sum of rs. 22,169 only being 55% of 10% of the total ..... a) and in clause (b) of sub-section (2) as exceeds ten per cent, of the gross total income (as reduced by any portion thereof on which income-tax is not payable under any provision of this act and by any amount in respect of which the assessee is entitled to a deduction under any other provision of ..... ceiling on the deduction laid down by sub-section (4) is thus applicable to donations for these purposes only. that ceiling is 10% of the gross total income or two hundred thousand rupees, whichever is less.9. reading all these provisions together, the following comprehensive picture emerges. in respect of any of the donations ..... etc.', sub-sections (1), (2), (3) and (4), which are material for the present consideration, are as follows : ' 80g. (1) in computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section, an amount equal to,-- (a) where the assessee is a company, ..... he reduced the deductible amount to rs. 22,169 holding that the assessee-club was entitled only to a deduction representing 55% of 10% of its total income. in appeal, the aac rejected this view and upheld the assessee's contention and claim and allowed deduction of rs. 40,308.40. in further appeal, .....Tag this Judgment!