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 : 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 : 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-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 : Chennai
Decided on : Jul-03-1979
Reported in : 120ITR688(Mad)
..... in the circumstances of the case, the tribunal was correct in holding that the assessee was entitled, for the assessment year 1973-74, to relief under section 80t of the income-tax act, 1961, on an amount calculated in terms of the aforesaid provisions, with reference to the gross capital gains of rs. 1,02,740?'2. the assessee, a huf, derived capital ..... under the head 'capital gains',..... '. we have to see what is the income chargeable under the head ' capital gains ' under the act. section 45 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head 'capital gains'. how this capital gain is to be computed is provided ..... in section 48. the language of section 48 is : 'the income chargeable under the head ' capital ..... section, in so far as it is material, ran as follows :' in the case of a company to which this section applies, where the total income (as computed in accordance with the other provisions of this act) includes any profits and gains attributable to the business of generation or distribution of electricity......there shall be allowed a deduction from such profits and .....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-08-1979
Reported in : (1979)13CTR(Bom)121; 119ITR846(Bom); 2TAXMAN60(Bom)
..... capital assets. in that case, it was contended by the assessee-company before the commissioners for the special purposes of the income tax acts that it was not liable to pay income-tax on the proceeds of the sale of lands which it had received in the united kingdom on the ground that they were ..... gains assessable under s. 12b and not as trading profits under s. 10 of the indian i. t. act, 1922. this contention was rejected by the ito, the aac and even the income-tax appellate tribunal. the remaining stock of the commodities which had come to the share of the assessee was sold ..... to realise it, and obtains a greater price for it than he originally acquired it at, the enhanced price is not profit...... assessable to income-tax. but it is equally well established that enhanced values obtained from realisation or conversion of securities may be so assessable, where what is done is ..... stock-in-trade, then the sale of such commodity would obviously be made as an act of making profit and the profit made from such sale would have to be treated as income. in raja bahadur kamakhya narain singh v. cit : 77itr253(sc) , the supreme court has indicated the difference between a ..... transaction which is intended for realisation of an investment and an act done for making profits. the supreme court has observed (p. .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-08-1979
Reported in : (1979)12CTR(Bom)40; 121ITR903(Bom)
..... on the facts and in the circumstances of the case, the income-tax appellate tribunal is correct in upholding the penalty imposed by the income-tax officer of rs. 2,242 (rupees two thousand tow hundred and forth-two) under section 273(a) of the income-tax act, 1961 ?' 6. mr. mehta appearing on behalf of the ..... he, therefore, held that no penalty could be levied and set aside the order. against this order, the ito filed an appeal before the income-tax appellate tribunal. the tribunal posed a question as to whether the assessee did honestly believe by reason of the fact that there was a loss as ..... of the indian i.t. act, 1922. 8. we may refer to the provisions of s. 18a(9) which was the relevant section at the material time when the assessee was called upon to pay advance tax. the relevant part thereof reads as follows : 'if the income-tax officer, in the course of ..... act, is satisfied that any person had concealed the particulars of his income or deliberately furnished inaccurate particulars of such income, he or it may direct that such person shall pay by way of penalty, in the case of clause (c), in addition to any tax payable by him, a sum not exceeding one and a half times the amount of the income-tax and super-tax ..... chandurkar j.1. the assessee-company, whose income was assessed during the assessment year 1958-59 at rs. 99,565, was served with a notice under s. 18a(1) of the i.t. act, 1922, whereby the ito called upon the assessed to pay advance tax of rs. 42,831 for the assessment .....Tag this Judgment!