Court : Delhi
Decided on : Apr-03-1980
Reported in : 125ITR96(Delhi)
..... the payments of rs. 5,67,000 and rs. 5,000 and rs. 5,000 are permissible deductions under section 10(2)(xv) of the indian income-tax act, 1922, for the assessment years 1958-59, 1960-61 and 1961-62 ?' 2. the assessed-company runs a manufacturing unit. during the assessment year 1958 ..... contention, and disallowed the deductions. 4. on appeal by the assessed, the aac confirmed the view of the ito. on further appeal to the income-tax appellate tribunal, the tribunal concurred with the decision of the aac. in coming to its conclusion, the tribunal derived support from an earlier order passed by ..... it is true that expenditure incurred need not necessarily yield results or be incurred to directly benefit the business or be directly related to the earning of income, yet it must be incidental to the business and must be necessitated or justified by commercial expediency. before an expenses can be allowed under s. ..... the expenditure may be admissible as a deduction under s. 10(2)(xv) even if the primary motive for incurring it is not directly to earn income thereby. 8. learned counsel, thereforee, urges us to accept that the payment to the indian national congress was to indirectly further the trade as it ..... pradesh high court has, in addl. cit v. kuber singh bhagwandas : 118itr379(mp) , relied on these decisions and held that the amount of donation to the chief minister's drought relief fund was an allowable deduction under s. 37(1) of the i.t. act, 1961, the particular facts being, that .....Tag this Judgment!
Court : Delhi
Decided on : Feb-11-1980
Reported in : ILR1980Delhi1286
..... to balance of trade and other conditions of international trade and monetary market. the question then arises as to whether the authority making the rules under section 295 of the income-tax act is empowered to so fix the conversion value of a foreign currency into indian currency. we do not find any specific authority in section 295 authorising the board under the ..... , that rule 115 which equates rigidly 1 sterling=18.00 prior to its amendment in 1977 ws ultra virus section 5 of the income-tax act and the income-tax authorities are not entitled to rely upon it in assessing the income of the petitioner expressed in foreign currency for the purposes of converting it into indian currency. we do hope that the respondents would in ..... that the unamended rule was open to challenge. (12) the petitioner has filed a copy of the order of provisional attachment issued by the respondent under section 281b of the income- tax act in which the respondent had- stated their intention to apply rule 115, that is the rate of 1 sterlings rs. 18.00 to the conversion of the foreign exchange ..... and decide upon the same. (5) if we were to follow the usual rule of the petitioner having his remedies under the income-tax act. a great deal of avoidable litigation would have to be carried through, even if the income-tax authorities themselves were convinced of the soundness of the contention of the petitioner as to the validity of rule 115. a whole series .....Tag this Judgment!
Court : Delhi
Decided on : Mar-19-1980
Reported in : 125ITR165(Delhi)
..... case the assessed was entitled to object to the levy of interest under section 139(1) proviso in course of an appeal to the appellate assistant commissioner of income tax under section 246 of the income-tax act, 1961 ?'and that is why the issue comes up before us now. (6) it may be convenient here to set out the provisions of section 246 to ..... attempt at legislativc clarification has really not solve the problem. before proceeding to set out how the difficulty arises the facts of the present reference under section 256(1) of income tax act, 1961 may be briefly stated. (2) for the assessment year 1962-63 the respondent assesses, m/s. mahabir parshad and sons, a registered firm, had to file its return of ..... appeal preferred against the assessment. all these decisions have been rested on the first part of section 246(c) of the income-tax act, 1961. (18) after a careful consideration of these various decisions and on a perusal of section 246 of the income-tax act, 1961, we think that the question at issue can be decided on a consideration not of the first limb of ..... , as in other branches of law, a considerable amount of judicial time is consumed in resolving a purely procedural wrangle. thus under the indian income tax act, 1922 as well as its successor act of 1961, question as to how far an order charging interest is appealable to the appellate assistant commissioner and then to the appellate tribunal has engaged considerable attention of the .....Tag this Judgment!
Court : Delhi
Decided on : Apr-25-1980
Reported in : (1980)18CTR(Del)300; ILR1980Delhi997; 126ITR196(Delhi)
..... cylinders as and when effected should be allowed as a deduction.(3) the assessed preferred a further appeal to the income-tax appellate tribunal. the appellate tribunal was of the view that the gas cylinders constituted 'plant' within the meaning of the income-tax act, 1961. in arriving at this conclusion they relied upon the definition of 'plant' contained in section 43(3) ..... decisions on the subject because the supreme court of india has considered the meaning of the word, after referring to the definition suggested by lindley l. j., in commissioner of income tax v. taj mahal hotel : 82itr44(sc) . in that case the supreme court was concerned with the question whether sanitary and pipeline fittings installed in a hotel could ..... as including ships, vehicles, books, scientific apparatus and surgical equipment. the tribunal also referred to the decision of the house of lords in hinton (inspector of taxes) v. madan and ireland ltd. 1960 39 ..... appellate assistant commissioner. the appellate assistant commissioner observed that gas cylinders did not find a mention in any of the heads in the schedule proscribed under rule 5 of the income-tax rules. apart from that, he observed these cylinders did not form part of plant and machinery but were merely containers or packages returnable by the customers. they did .....Tag this Judgment!
Court : Delhi
Decided on : Apr-30-1980
Reported in : ILR1980Delhi991; 125ITR756(Delhi)
..... right in law in holding that proceedings for the imposition of penalty under section 273 had not been validly initiated and thus cancelling thepenalty levied under section 273 of the income-tax act.1961.(2) the facts leading to the reference may be briefly stated. forthe assessment year 1959-60 the assessed should have filed an estimate under section 18a of the indian ..... income-tax act, 1922 andpaid advance tax but failed to do so. its return of income under section 22(1) of the income-tax act 1922 was also due to be filedby june, 1959 but was failed only on 5-8-1961. the ..... observed : 'penaltyproceedings for not filing the return in time and fornot paying the tax in advance by not complying theprovisions of section 18a(3) of the i.t. act, 1922 areto be initiated separately.(3) the income-tax officer issued two notices to the assessedunder section 274 of the income-tax act 1961 calling upon him toshow cause why penalties should not be levied under section 273 ..... ofthe act for failure to pay advance tax and under section 271(1)(a) for the delay in the .....Tag this Judgment!
Court : Delhi
Decided on : Jul-22-1980
Reported in : ILR1980Delhi868; 32ITR707(Delhi); 1980RLR563
..... /148 of the act dated 24th march 1971 was issued to him. and was served on him. the petitioner ..... dated 7th august, 1974 was issued to the petitioner. the income tax officer proposed to reassess the petitioner's income for the assessment year 1962-63 on the ground that he had reason to believe that income for that assessment year had escaped assessment within the meaning of s. 147 of the income tax act, 1961 (the act). the petitioner was informed that a notice under ss. 147 ..... denied the service of the notice. thereupon the income tax officer gave him a copy of the notice dated 24th march ..... a conjectural opinion. a pure guess .work. a convenient assumption that overlooks known facts. more a product of the income tax officer's imagination than of factual belief. it is more a hypothetical construct without a known counterpart in reality. but the act requires that there must in fact exist reasonable grounds, known to the officer, before he can validly exercise the powers .....Tag this Judgment!
Court : Kerala
Decided on : Oct-24-1980
Reported in : (1981)22CTR(Ker)93; 129ITR1(Ker)
..... on the following observation of shah j., as he then was, in the supreme court case in benares state bank ltd. v. cit : 75itr167(sc) :' there can be no doubt that for the purpose of the income-tax act the same income cannot be received more than once.'11. the facts of that case were as follows: the appellant, whose year of account was ..... that inasmuch as no such expenditure was allowed by the ito, he was not entitled to invoke the provisions of section 41(1) of the act.5. the commissioner of income-tax filed two reference applications before the income-tax appellate tribunal, r.a. nos. 246 and 247/coch/ 75-76 against the order dated january 20, 1976, disposing of i.t.as. nos. 354 ..... c.j., delivering the dissenting judgment) held that the sum of rs. 12,302, less the permitted deductions under section 10 of the indian i.t. act, 1922, was income of the assessee liable to income-tax. the passage relied on by the counsel for the assessee is the following sentences in the judgment of kania j., at page 39 of the report:' it ..... peculiar facts of the case on hand :' mr. kolah pressed into service the argument based on section 13 of the act that the mercantile system of accounting regularly adopted by the assessee was obligatory on the income-tax authorities for computation of his income. while agreeing generally with that submission in case of residents, we doubt whether that position would be available to a .....Tag this Judgment!
Court : Kerala
Decided on : Mar-26-1980
Reported in : 129ITR191(Ker)
..... , 1961, the income-tax appellate tribunal is right in law in holding that, in order to avail of the exemption under the said provisions, it is enough if the assessee invests in government ..... income-tax appellate tribunal, cochin bench (hereinafter called 'the tribunal'), has referred to this court under section 256(1) of the i.t. act, 1961, hereinafter called 'the act', the following common question of law :'whether, on the facts and in the circumstances of the case and on an interpretation of the provisions of section 11(1)(a) and section 11(2) of the income-tax act ..... during which the said conditions remain 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 years ; (b) the money ..... . in i.t.r. no. 9 of 1977 the relevant assessment year is 1970-71. the assessees in these cases had claimed exemption under section 11 of the act in respect of income not spent by them during the relevant accounting period, but which had been accumulated for application to the charitable purposes of the trust after duly giving notice in writing .....Tag this Judgment!
Court : Kerala
Decided on : Sep-10-1980
Reported in : 127ITR855(Ker)
..... total agricultural income of every person; and section 4(1) specifies that such income comprises all agricultural income derived from land situated within the state and received by him. the tax is thus on the income received by a person from lands inside the ..... and that she did not become his legal representative, in respect of both the properties. under the circumstances, she cannot be held liable for the agricultural income-tax due from ramayya under section 24 of the act.10. if support is required for the above view, we find it in the full bench decision in balakrishna menon v. iac of agrl. i.t ..... for the arrears of tax due from ramayya. the learned judge who referred the o. p. to the bench has formulated the question in the following general terms :' whether a person who is a remainderman is liable for the liability of the deceased life-estate holder under the agricultural income-tax act '6. under section 3(1) of the act, the tax is charged on the ..... . : 70itr548(ker) . the question was whether agricultural income-tax due in respect of the income derived by a sthanamdar from sthanam property was, after his death, leviable from the .....Tag this Judgment!
Court : Gujarat
Decided on : Oct-09-1980
Reported in : (1981)23CTR(Guj)312; 129ITR102(Guj)
..... document was executed with a view to bifurcating or splitting up the profits for the benefit of the relatives of the directors. section 40a of the income-tax act, 1961 makes it clear that where the assessee incurs any expenditure in respect of which payment has been made or is to be made to ..... or unreasonable shall not be allowed as a deduction. although a provision has been made under section 40a for the disallowance of certain expenses yet the income-tax officer can disallow the expenses having regard to the legitimate needs of the business of the assessee.'7. in this case, evidence was led by ..... any person referred to clausein (b) of section 40a and the income-tax officer is of the opinion that such expenditure is excessive or unreasonable having regard to the fair market value of the goods, services or facilities for ..... the deduction of the amount of commission of rs. 80,977. against the decision of the aac the revenue went up in appeal before the income-tax appellate tribunal and the tribunal held that the commission which was paid to the sole selling agents was not a permissible deduction. the tribunal approved the ..... purpose, himself remaining inactive. the transactions, however, carried out by the agents on behalf of the principal will be business transactions of the principal.' 10. in cit v. edward keventer p. ltd. : 86itr370(cal) , on the facts before it, the calcutta high court held that the ito did not apply .....Tag this Judgment!