Court : Kerala
Decided on : Mar-28-1979
Reported in : 121ITR433(Ker)
..... the following questions of law for our opinion, namely :'1. whether, on the facts and in the circumstances of the case, the reassessment proceedings under section 147(a) of the income-tax act, 1961, are legal and valid was the appellate tribunal justified in sustaining the addition of rs. 49,700 for all or any of the reasons stated in the appellate order ..... escaped assessment. one of them was certain credits to the capital account amounting to rs. 65,000. the assessment was reopened and additions to the income were made. the matter was taken in appeal to the income-tax appellate tribunal. the plea before the tribunal was that the intangible additions which had been made in the assessment year 1948-49 and the assessment ..... fall to be carefully considered by the assessing authority. while the fact of such an amount having accrued to the assessee as his income during the earlier year is undoubtedly a matter to be taken note of by the income-tax officer in considering the question whether the source of the cash credits has been satisfactorily explained by the assessee, the burden of ..... only the peak amount which fell in the accounting year, namely, rs. 49,700. this was added to the income. the ito's order was dated march 26, 1969. an appeal to the aac failed. the matter came up before the income-tax appellate tribunal. the tribunal rejected the objection of jurisdiction to reopen the assessment. on the merits, the tribunal relied on .....Tag this Judgment!
Court : Chennai
Decided on : Feb-08-1979
Reported in : 120ITR144(Mad)
..... and in the circumstances of the case, the appellate tribunal was right in law in cancelling the penalty of rs. 5,800 levied under section 271(1)(c) of the income-tax, act, 1961 and 2. whether the conclusion of the appellate tribunal is a reasonable view to take on the facts and in the circumstances of the case ?' 2. in the accounts ..... (delhi) .'7. again at page 1056, the principle applicable was set out as follows :'in our view, whether a revised return is filed or an admission is made before the income-tax officer in the course of original assessment proceedings would seem to make little difference. the basis in both cases is the same, viz., that the assessee agreed to accept the ..... the earlier stand taken by him, viz., that the amount represented receipts from certain third parties. no one, at any rate in these days, agrees to pay tax on an amount unless it was his income.10. learned counsel referred us to two other decisions of this court, both unreported. the first decision was rendered in t. c. no. 350 of 1974 ..... that there is anything in this decision which is of assistance to the points now before us.12. in cit v. j. k. a. subramania chettiar : 110itr602(mad) , this court had to deal with a case where the assessee had disclosed certain income in a revised return. in the revised return, certain amounts not disclosed in the original return were shown .....Tag this Judgment!
Court : Delhi
Decided on : Nov-12-1979
Reported in : 125ITR425(Delhi)
..... our opinion, this reference should be disposed of bearing in mind the eminent desirability of uniformity of construction in an all-india statute like the income-tax act. courts have held that the considered opinion of another high court should be followed unless there are overriding reasons for taking a divergent view ..... 82itr166(sc) , judicial decisions still show a divergence of view regarding the deductibility of interest payments in connection with the liability to pay income-tax. in these circumstances, we refrain from taking a view different from that taken by the punjab high court in the case of the assessed itself ..... the shares of this trust were borrowed by the assessed and were pledged with the commissioner in order to secure stay of recovery of income-tax pending disposal of appeals against the orders of the ito. the claim of the assessed before the department was that these amounts of commission ..... of rs. 9,000 representing commission paid on borrowing shares for the purpose of pledging them as security to the income-tax department for securing stay of recovery of taxes, in the ..... s. ranganathan, j.1. the income-tax appellate tribunal, delhi bench ' b ', has referred for our decision the following question under section 66(1) of the indian i.t. act, 1922 :' whether, on the facts and in the circumstances of the case, the assessed was entitled to deduction .....Tag this Judgment!
Court : Mumbai
Decided on : Jan-19-1979
Reported in : 119ITR526(Bom); 1TAXMAN418(Bom)
..... with the determination of the true character of the receipt for the purposes of income-tax, the supreme court observed at page 77 as follows : 'but in assessing the true character of the receipt for the purpose of the income-tax act, inability to ascribe to the transaction a definite category is of little consequence. ..... been pointed out, what has to be seen when a question under the income-tax law comes to be decided is the character of the transaction or the payment from a business or accountancy point of view. if when looked ..... of the transaction was to be ascertained the calcutta high court observed as follows (p. 644) : 'indeed from the point of view of the income-tax law, it is hardly necessary to decide finally the true legal character of a transaction or the character in law of a payment. as has often ..... when a person sells his property and agrees to receive the price stipulated in instalments, by whatever name such instalments are called, they are not liable to income-tax - see foley v. fletcher  3 h & n 769, secretary of state in council of india v. andrew scoble  ac 299 , ..... it is not the nature of the receipt under the general law but in commerce that is material. it is often difficult to distinguish whether an agreement is for payment of a debt by instalments or for making annual payments in the nature of income .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-28-1979
Reported in : (1979)12CTR(Bom)4; 121ITR142(Bom); 1TAXMAN143(Bom)
..... aims and objects of the bill at the time when s. 85a was introduced in the i.t. act. the aims and objects were indicated in the following words : 'clause 22 seeks to insert a new section 85a in the income-tax act to secure that income from dividends received by one company from another indian company or a company which had made the prescribed ..... arrangements for the declaration or payment of dividends within india will bear income-tax at the rate of 25%. further, in the case of a company which has ..... assessee derived income from business, dividend and capital gains. the question arose of the relief available to the assessee-company ..... , and in the reference the following question has been referred to us : 'whether deduction of tax on inter-corporate dividends in the hands of the assessee has been properly allowed under the provisions of section 85a of the income-tax act, 1961 ?' 2. the assessee is a private limited company and we are concerned in the reference with the assessment year 1965-66. the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Sep-06-1979
Reported in : AIR1980SC71; (1979)12CTR(SC)395; 120ITR70(SC); (1979)4SCC298; 1SCR539; 1980(12)LC229(SC)
..... . the assessee under the impression that the, money which it received from rowther on account of sale of trees was not chargeable to income-tax under the indian income-tax act did not file any voluntary return. on february 28, 1963 the income-tax officer, palghat wrote to the karanavan of the assessee family pointing out that he had information that the assessee had leased certain private ..... the trees or even branches of the trees it would be difficult [subject to the special exemption under section 4(3) (viii) of the income-tax act, 1922] to hold that the realization is not of the nature of income. where the trunks are cut so that the stumps remain intact and capable of regeneration, receipts from sale of the trunks would be in ..... stating that he had no deliberate intention of avoiding to file any return. if the income-tax officer so desired, he was ready to comply with his direction.3. thereafter the income-tax officer served a notice on the assessee under section 148 of the income-tax act, 1961, hereinafter called the act. in response to the same the assessee filed a return on 25.3.1966 showing ..... a total net income of rs. 626.63 paise for the previous year ending on 31.3 .....Tag this Judgment!
Court : Delhi
Decided on : Sep-12-1979
Reported in : (1980)17CTR(Del)168; 123ITR329(Delhi)
..... such belief being the source of his jurisdiction the forum of decision as to the existence of reasons and the belief is not the mind of the income-tax officer but an appropriate authority under the income-tax act and/or the high courts in exercise of their jurisdiction under article 226 of the constitution of india. 1(10)it is a statutory requirement that ..... must record reasons. there is however no requirement to communicate the reasons in or with the notice. 1(11)no remedy is provided under the income-tax act to challenge the jurisdiction of the income-tax officer in issuing a notice under section 148 and an assessed is entitled to move an appropriate high court by a petition under article 226 of the constitution of ..... years..................'(7) we may now consider the provision relevant to the present proceedings, i.e., section 147(a) of the income-tax act, 1961. that portion of section 147(a) with which we are concerned is reproduced below : '147(a).if, the income-tax officer has reason to believe that, by reason of the omission or failure on the part of an assessed........to disclose ..... facts and in the circumstances of the case, we hold that the tribunal was not justified in law in holding that the reassessments made by the income-tax officer (in 1967) under section 147 of the act of 1961 were validly made and we further hold that the appellate assistant commissioner was justified in cancelling them for want of jurisdiction and answer the .....Tag this Judgment!
Court : Delhi
Decided on : Dec-19-1979
Reported in : 133ITR470(Delhi)
..... sc) , sarkar j., speaking for the majority, observed that business as contemplated by section 10 of the indian income-tax act, 1922, is an activity capable of producing a profit which can be taxed. in the case of the appellant-trust the activity of the trust, as observed earlier, has in fact been ..... had control over the dealings in these shares and actually controlled the shares for which we refer to the observations and reasonings of the income-tax officer which have been summarised by us at paragraph 10 of our order and nothing has been controverter that this was not the ..... elements of dealings in share transactions. the heads of income must be decided from the nature of income by applying practical notions and as the income cannot be brought to tax under section 28 of the act, it could be brought to tax under the residuary head in the circumstances of the case ..... and thus income from sale of shares is to be treated as income from other sources ..... .' for the reasons stated in the above paragraph, the tribunal confirmed the treatment of the income as income .....Tag this Judgment!
Court : Delhi
Decided on : Nov-09-1979
Reported in : 121ITR914(Delhi)
..... appears from the judgment of the high court that the reason given in support of the suggestion was that if that income was held to be income of an undisclosed source, the result would be double taxation of the same income which the income-tax act does not contemplate. apparently, it was said that there would be double taxation because it was assumed that the same ..... income had once been earlier taxed on the basis of an estimate. this reason is obviously fallacious, for, if the income is treated as one from an undisclosed source which the ..... question postulates, it is not treated as income of the disclosed source ..... deshpande, c.j. 1. the question referred to this court by the income-tax appellate tribunal under section 256(2) of the i.t. act, 1961 (the act), is as follows: 'whether, on the facts and in the circumstances of the case, the tribunal was right in law in holding that the cash credits of rs. 11,724 .....Tag this Judgment!
Court : Chennai
Decided on : Nov-13-1979
Reported in : (1980)16CTR(Mad)254; 134ITR555(Mad)
..... 1. the following is the question referred at the instance of the commissioner of income-tax :' whether, on the facts and in the circumstances of the case, the income of the assessee is exempt from tax under section 11 of the income-tax act for the assessment year 1970-71 ' 2. the assessee is a trust originally ..... complied with- (a) such persons have, by notice in writing given to the income-tax officer in the prescribed manner, specified the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten ..... of the trust. the ito rejected this contention and he brought a sum of rs. 1,81,195 consisting of the following to tax: rs. excess of income over expenditure1,64,210add : expenses on agricultural lands disallowed 327registration fees, stamps, etc., in connection with the purchase of the property ( ..... deducted at source of rs. 31,115, as income. the assessee claimed full exemption under section 11(1) of the act. in the letter accompanying the return the assessee contended that a sum of rs. 8 ..... act, the total amount of the surplus of the income over expenditure, viz., rs. 1,64,210.03, was taken over to the capital fund. 10. we are now concerned with the assessment year 1970-71, for which the previous year ended on 13th april, 1970. the assessee filed a return showing rs. 1,64,210, including the tax .....Tag this Judgment!