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 : 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!
Court : Gujarat
Decided on : Mar-01-1980
Reported in : (1980)18CTR(Guj)378; 130ITR411(Guj)
..... circumstances of the case, the tribunal was right in law in confirming the levy of penalty of rs. 3,500 under section 271(1)(c) of the income-tax act, 1961 ?' 9. the facts narrated above would show that both the iac and the tribunal have invoked in aid the explanation to s. 271(1)(c) ..... the profits supposed to have been earned by the assessee and proceeded to observe (pp. 447, 448) : 'it was not the case of the income-tax office that any particular entries in the books of account were false or any particular items of purchase or scale were omitted to be entered in the books ..... which is on record in the penalty proceedings, irrespective of whether it is produced by him or by the revenue. the only question to which the income-tax authority had to address itself is, whether on the material on record in the penalty proceeding, can it be said on a preponderance of probabilities that ..... imposed a penalty in the sum of rs. 3,500 under s, 271 (1) (c). 4. the assessee carried the matter in appeal before the income-tax appellate tribunal and urged in the forefront that there was merely and arithmetical error which had crept into the cash book while striking the balance on the credit side ..... and the income assessed in the instant case arose on account of the addition made by the ito either under s. 68 or s. 69a of the act and that, under such circumstances, having regard to the decision of this court in s. p. bhatt's case : 97itr440(guj) and cit v. vinaychand harilal : 120itr752 .....Tag this Judgment!
Court : Gujarat
Decided on : Aug-25-1980
Reported in : (1981)21CTR(Guj)20
..... the facts and in the circumstances of the case, under rule 19(5) of the income-tax rules, 1962, half of the profits had to be added for the computation of capital for determining relief under section 84 of the income-tax act, 1961 ?' 2. we are concerned in this case with the assessment year 1967-68 ..... which the company was carrying on till then. 16. in a recent decision delivered by the division bench of this high court, namely, in cit v. mcgaw ravindra laboratories, income-tax reference no. 125 of 1975 decided on july 16, 1980 : 132itr401(guj) , one of the question was in connection with the ..... be that in ascertaining the average amount of capital, as provided in the fiction, numerous factors have to be considered. but it appears that the income-tax authorities have, by way of rough and ready method, adopted the addition of half the amount of the profit on the basis of this fiction ..... purpose of relief under s. 84 of the i.t. act, 1961, as it then stood. the assessee was entitled to claim under that section that no income-tax should be paid in respect of a newly established undertaking in respect of income to the extent of six per cent. of the capital employed ..... 84 of the act (now section 80j) provided for tax holiday for new industrial undertakings or hotels and exempted the income thereof to the extent of six per cent. of the capital employed in the business of the new industrial undertakings or hotels, computed in the manner prescribed by rule 19 of the income-tax rules, 1962. .....Tag this Judgment!
Court : Chennai
Decided on : Feb-15-1980
Reported in : (1980)19CTR(Mad)216; 127ITR264(Mad)
..... an ordinary bank except that it lends money to and receive deposits from its shareholders. this does not by itself make its income any the less income from business within section 10 of the indian income-tax act."7. even where a club was taken to indulge in a profit-making activity, it was held in national association of ..... 1. in this reference under s. 256(1) of the i.t. act, 1961, the following question has been referred to this court :"whether, on the facts and in the circumstances of the case, the sum of rs. 4,305 is chargeable to income-tax ?"2. the assessee was incorporated as a public limited company by guarantee and ..... payment of rent. the assessee received a sum of rs. 10,062 by way of rent, and the income derived from the occupation of the rooms was brought to tax as income from property under s. 9 of the act. the allahabad high court held that the principle of mutuality did not apply to such a case and ..... the room is referable to the amenity provided for the members for themselves, no income can be said to be earned, so as to be brought to tax by the provisions of the i.t. act. we have taken the same view in a sales tax case in state of tamil nadu v. indian officers' association  44 stc ..... under s. 10(1) or under s. 10(6) of the indian i.t. act, 1922, while the amounts of income received from the members whose horses did not run in the race during the season were liable to be taxed. the supreme court held that there was not mutual dealing between the members inter se, and .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-18-1980
Reported in : (1981)22CTR(Bom)41; 128ITR87(Bom); 4TAXMAN381(Bom)
..... some measure of the cultivation of the land, some expenditure of skill and labour upon it, cannot be said to be used for agricultural purposes within the meaning of the income-tax act. in cit v. raja benoy kumar sahal roy : 32itr466(sc) , the supreme court considered the meaning of the 'agricultural purposes'. it held that those operation which the agricultural ..... 26itr758(sc) , it is not open to the respondents to argue that capital gains are capital receipt and not a revenue receipt. the reference to the commentary on the income tax act by kanga and palkhivala is equally fallacious. that commentary is on the topic : 'annuities and annual instalments of capital'. the reference to halsbury's laws of england is equally a ..... the said entry 54 in the light of any supposed english legislative practice. the supreme court also pointed out that in the english income tax act of 1945, capital gains had been included as taxable income. the supreme court further pointed out that in construing an entry in a legislative list the widest possible construction according to their ordinary meaning must be ..... was a capital receipt or a revenue receipt and, therefore, exempt from the levy of agricultural income-tax did not arise because the provincial agricultural income-tax acts were passed subsequently, and the others on the ground that the payment of salami was held to be agricultural income because the moneys were paid after the relationship of landlord and tenant had come into existence. .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Apr-18-1980
Reported in : (1981)20CTR(AP)60; 127ITR414(AP)
..... the law relating to income-tax and super-tax. it is intended to be a self-contained code so dealing with all the matters it provides for exhaustively ..... of the appeal for the income-tax assessment year 1970-71, which is characterised by the learned counsel appearing for the assessee, as a correct of view of the ..... no previous year at all for this new source of income for the income-tax assessment year 1969-70. 9. for solving the problem raised on the basis of the rival contentions put forth on behalf of either side, it is necessary to examine the scheme of the act. 10. scheme of the act. - the income-tax act, 1961, is enacted with a view to consolidate and amend ..... . a copy of the order passed by the tribunal for the income-tax assessment year 1970-71 in i.t.a. no. 1853 (hyd)/75-76 dated july 22, 1977, was filed during the course of arguments before us, where the assessee's contention that s. 3(1)(b) of the income-tax act, was applicable was accepted and upheld by the tribunal while disposing .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Mar-01-1980
Reported in : 127ITR460(AP)
..... , however, the assessee was also entitled to carry forward his share of the loss in the registered firms to the succeeding year under section 24(2). section 24 of the income-tax act, which provides for the carrying forward a loss in business to the subsequent year or years till the loss is absorbed in profits or till it cannot be carried forward ..... under sections 70 and 71 of the income-tax act (2) whether the income-tax officer who has already determined the carry forward loss to be set off against the income of the assessment year 1966-67 is competent to deny the right of the assessee for the set-off under the ..... tribunal and the tribunal agreed with the ito and allowed the appeal. on an application made by the assessee under s. 256(1) of the income-tax act, 1961 (hereinafter referred to as 'the act'), the tribunal has referred to this court the following two questions of law for decision : '(1) whether the assessee cannot claim the set-off of the carry forward loss ..... year and so also a loss under any head in a year may be set off against the income under any other head in that year. that general rule of set-off is enacted by section 70(1) and 71(1) of the income-tax act, 1961. there was, therefore, no prohibition preventing a member of an association of persons from setting off his .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Apr-25-1980
Reported in : 134ITR158(AP)
..... of its reserve, if any, created under the proviso (b) to clause (vi) of sub-section (2) of section 10 of the indian income-tax act, 1922 (11 of 1922), or under sub-section (3) of section 34 of the income-tax act, 1961 (43 of 1961), and of its other reserves in so far as the amounts credited to such other reserves have not been ..... allowed in computing its profits for the purposes of the indian income-tax act, 1922 (11 of 1922), or the income-tax act, 1961 (43 of 1961), diminished by the amount by which the cost to it of the assets the income from which in accordance with clause (iii) or clause (vi) or clause (viii) of rule 1 of the ..... purposes of the business to be treated as capital employed in the business'. 68. in ravi machine tools (p.) ltd. v. cit : 114itr459(kar) the karnataka high court held that (headnote) 'the relief under section 80j of the income-tax act, 1961, refers to capital employed in a newly established industrial undertaking and not the user of any asset as such. therefore, where ..... in so far as they have not been allowed in computing the profits of the company for the purposes of the indian income-tax act, 1922(xi of 1922), diminished by the cost to it of its investments or other property, the income from which is not includible in the profits, so far as that cost exceeds any debt for money borrowed by it .....Tag this Judgment!
Court : Allahabad
Decided on : Sep-10-1980
Reported in : (1981)20CTR(All)160; 128ITR564(All)
..... recorded by the tribunal that in this case the onus that lay on the assessee in view of the explanation to section 271(1)(c) of the income-tax act, 1961, had been discharged ?' 3. the observation made by the tribunal indicates that in its opinion in cases where the explanation added to section 271 ..... penalty under section 271(1)(c) can be imposed. section 143 of the income-tax act, 1961, read with section 145 of the act, clearly contemplates that in a case where the assessee files a return of its income and the income-tax officer is either not satisfied that the method employed by the assessee in maintaining ..... the assessee under section 271(1)(c) of the income-tax act, 1961, read with its explanation ?' assessment year 1968-69:'(1) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was legally correct in cancelling the penalty of rs. 9,000 imposed ..... on the assessee in view of the explanation to section 271(1)(c) of the income-tax act, 1961, had been discharged ?' assessment year 1966-67:'(1) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was legally correct in cancelling the penalty of rs. 13,000 imposed upon ..... tribunal was legally correct in cancelling the penalty of rs. 5,000 imposed upon the assessee under section 271(1)(c) of the income-tax act, 1961, read with its explanation ? (2) whether there is material on the record for the finding recorded by the tribunal that .....Tag this Judgment!