Court : Delhi
Decided on : Feb-29-1984
Reported in : (1985)46CTR(Del)30; 157ITR187(Delhi)
..... ladies are partners in the assessed-firm. when this firm, m/s. jai and co., applied for registration under section 185 of the income-tax act, 1961, the income-tax officer came to the conclusion that the said firm was a benamidar of the assessed-firm and so registration was refused. the ..... appeals filed by m/s. jai and co. failed up to the tribunal. on account of alleged concealment of income for not including the income of m/s. jai and co. in its disclosed income, the income-tax officer initiated penalty proceedings, which were referred to the inspecting assistant commissioner on account of the minimum penalty being more ..... . however, it is good evidence.' 10. in the present case, if we consider the explanationn as being the set of facts before the income-tax officer in the case of m/s. jai & co., we could not treat it as positive evidence that there had been a concealment. on ..... partnership is a relationship between individuals which is treated as an entity for income-tax purposes. but the income is to be apportioned to the relevant partners. we fail to understand how the income of m/s. jai & co. can be treated as the benami income of the assessed-firm. at best, the partners can be treated benami ..... members of the family. 6. it was on the sum total of the above facts that the income-tax authorities came to the conclusion that the income of m/s. jai & co. should be included in the income of the assessed as a benamidar. now, the question is whether this establishes that there is concealment .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-22-1984
Reported in : (1985)46CTR(Bom)200; 157ITR751(Bom)
..... . 37,106 and machining charges amounting to rs. 9,435 is liable to be deducted for the purpose of giving relief under section 80e of the income-tax act, 1961 ? (2) whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the amount of rs ..... this connection, we may set out a passage from the judgment which we delivered in the last session in gannon norton metal diamond dies ltd. v. cit (income-tax reference no. 1 of 1976 - decided on october 19, 1983). the passage extracted from our judgment reads as under :'what we have to consider ..... interest realised on machinery sold on credit to the customers. as far as these two items were concerned, the appellate assistant commissioner held that the income-tax officer was right in excluding these two items from the scope of section 80e. when the appeal was carried further to the tribunal, the tribunal, ..... and the total amount of deduction allowed came to rs. 1,44,789. the assessee was not satisfied with the computation made by the income-tax officer and an appeal was preferred to the appellate assistant commissioner. two of the contentions of the assessee pertained to machining charges recovered from the ..... at the time of the original assessment. the third of these three points related to the reliefs available to the assessee under section 80e. the income-tax officer found that there was substance in the plea and he made an order under section 154 allowing the statutory deduction of 8% under section .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-17-1984
Reported in : (1985)47CTR(Bom)340; 159ITR515(Bom); 21TAXMAN10(Bom)
..... full and true disclosure of all material facts. the case for reopening does not fall within the four corners of section 147(a) of the income-tax act, 1961.10. accordingly, the notices under section 148 of the income-tax act, 1961, issued to each of the petitioners and impugned in each of these petitions must be quashed and set aside.11. rules accordingly. no ..... meaning of section 147 of the said act. the petitioners were called upon to file returns. the chartered accountants of the petitioners ..... not declared' by the petitioners. as the petitioners did not disclose the one-fifth share of income from the estate, income chargeable to tax had escaped assessment for the assessment year 1972-73. the impugned notices had been issued under section 147(a) of the income-tax act, 1961, as the petitioners had failed to disclose fully and truly all material facts necessary for ..... -73 without taking into account the one-fifth share in the income of the estate of the late hemant.3. in 1981, notices were issued to each of the petitioners under section 148 of the income-tax act, 1961, which stated that the income-tax officer had reason to believe that income chargeable to tax for the assessment year 1972-73 had escaped assessment within the .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-24-1984
Reported in : (1985)47CTR(Bom)178; 157ITR276(Bom); 22TAXMAN112(Bom)
..... to have held that the assessee should have been assessed in the status of an individual and the income of the minor should have been included in the income of the assessee under section 64 of the income-tax act, 1961 ?'2. this matter was before us on august 31, 1984, and subsequently on september 10 ..... the cloth business as the karta representing his branch, then the income of the two minor sons cannot be clubbed with his individual income under section 64 of the income-tax act, 1961. this is the ratio we have laid down in our decision in income-tax reference no. 71 of 1975, decided by us on september ..... 6, 1984 [cit v. s. k. thakkar : 154itr303(bom) ].11. in ..... of the tribunal, the department sought a reference and has come to the high court.5. it is rather unfortunate that right from the income-tax officer to the tribunal, the authorities have not paid proper attention to the two partition deeds. these are most material and ought to have been ..... relied upon the decision of the supreme court in n. v. narendranath v. cwt : 74itr190(sc) . the department carried the matter to the income-tax appellate tribunal. the tribunal held in favour of the assessee and dismissed the department's contention, observing as follows : 'looked at either from the angle of .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-24-1984
Reported in : (1984)86BOMLR527; (1985)44CTR(Bom)103; 155ITR413(Bom); 19TAXMAN485(Bom)
..... and pulp pilot plant were scientific research expenses related to a business of the assessee so as to be allowed under section 35(2) of the income-tax act, 1961 ? (2) whether, on the facts and in the circumstances of the case, the sum of rs. 17,800 spent in the defence ..... prosecution, which arose out of his business or professional activities, were allowed to be deducted in the assessment of his profits or gains for income-tax purposes. the supreme court observed that the deductibility of such expenses must depend upon the nature and purpose of the legal proceeding in relation ..... as the first question is concerned, counsel are agreed that its answer is governed by the decision of this court in cit v. national rayon corporation ltd. : 140itr143(bom) income-tax reference no. 188 of 1971. the identical question was there answered in the affirmative and in favour of the same assessee ..... about some sense of security in its managerial staff and thereby help the smooth working of the colliery with a view to ensure that its income did not suffer. therefore, the legal expenses incurred by the assessee were expended by it wholly and exclusively for the purpose of its business. ..... , the expenditure is not wholly and exclusively for its business.13. mr. dhanuka fairly drew our attention to the judgment of the gujarat high court in cit v. ahmedabad controlled iron & steel reg. stockholders association pvt. ltd. : 99itr567(guj) , wherein after referring to some decided cases, including the .....Tag this Judgment!
Court : Mumbai
Decided on : Feb-27-1984
Reported in : (1984)42CTR(Bom)1; 159ITR629(Bom)
..... which was held by the tribunal to be capital expenditure) is covered by the inclusive definition of the word 'plant' given in section 43(3) of the income-tax act, 1961, and that as such the assessee-company would be entitled to depreciation thereon as is admissible in the case of 'plant' ?'6. in the first ..... this decision of the tribunal, the following questions of law have been referred to us at the instance of the department under section 256(1) of the income-tax act, 1961 :'(1) whether, on the facts and in the circumstances of the case, the whole of the payment of rs. 1,16,390 made by the ..... the assessee-company of any technical information and for other reasons which are recorded in his order.4. being aggrieved, the revenue went in appeal before the income-tax appellate tribunal. the tribunal held that under the agreement, the assessee had received a two-fold advantage : one related to the right to manufacture raw material ..... of 840 fully paid-up shares of the assessee-company issued to the foreign company.2. the dispute relates to the assessment year 1966-67. the income-tax officer held that the debit of rs. 1,16,390 made by the assessee-company was in respect of payment of a capital nature. he disallowed ..... to answer the same.10. as far as question no. 3 is concerned, this point is also covered by a decision of this court in the case of cit v. emco electro pvt. ltd. : 118itr864(bom) . in that case, our high court has held that having regard to the legislative intent to give .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-06-1984
Reported in : (1984)86BOMLR533; (1985)45CTR(Bom)188; 154ITR303(Bom); 1984MhLJ979; 19TAXMAN530(Bom)
..... the circumstances of the case, the share of profit received by the assessee's wife from the firm of importex international was includible in the total income of the assessee under section 64(1) of the income-tax act, 1961 ?'2. the assessee was a partner during the assessment year 1968-69 to 1970-71 in a partnership firm called importex international. the other ..... ito included the share of profits derived by his wife from the firm in the total income of the assessee under the provisions of s. 64(1) of the act. the assessee preferred appeal to the aac. he dismissed them. the assessee went up before the income-tax appellate tribunal. the tribunal upheld the assessee contention that his wife's share of profits from ..... the firm could not be included in his total income. it held that s. 64(1) had not application ..... shall be included in the income of that parent whose total income (excluding the income referred to in that clause) is greater; and where any such income is once included in the total income of either spouse or parent, any such income arising in any succeeding year shall not be included in the total income of the other spouse or parent unless the income-tax officer is satisfied, after .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Dec-12-1984
Reported in : 159ITR299(AP)
..... herein not to hold any enquiry pursuant to the notice dated september 23, 1983, issued under section 148 of the income-tax act, 1961. 2. the brief facts are as follows : the assessee herein filed a return under the relevant provisions of the income-tax act for the assessment year 1975-76 on august 20, 1975. the assessment was completed on march 21, 1977, and the ..... counter-affidavit that the impugned notice was issued after obtaining the necessary sanction from the commissioner of income-tax. 5. to appreciate the point involved, it is necessary to refer to section 147(a) of the income-tax act, 1961, which reads as follows : '147. if - (a) the income-tax officer has reason to believe that, by reason of the omission or failure on the part of ..... assessee was assessed on a total income of rs. 18,539. on september 23, 1983, i.e., after a period of six years and ..... an aseessee to make a return under section 139 for any assessment year to the income-tax officer or to disclose fully and truly all material facts .....Tag this Judgment!
Court : Allahabad
Decided on : Aug-13-1984
Reported in : (1985)44CTR(All)303; 150ITR373(All); 22TAXMAN559(All)
..... the payee operative during the previous year and requiring the assessee to make payments in cash, as contemplated in rule 6dd(c) of the income-tax rules, 1962, read with section 40a of the income-tax act, 1961 ? 2. whether, on the facts and in the circumstances of the case, there was material before the tribunal to hold ..... or clause (j) of rule 6dd of the income-tax rules, 1962, were applicable and that the disallowance of rs. 31,938 under section 40a(3) was not justified ?' 2. dispute is in respect of assessment year ..... and unavoidable circumstances for not making payments by crossed cheques drawn on a bank or by a crossed bank draft within the meaning of rule 6dd(j) of the income-tax rules, 1962? 3. whether, on the facts and in the circumstances of the case, the tribunal was legally correct in holding that clause (c) and/ ..... on account of packing,filling and despatching charges for tobacco. admittedly, these paymentswere made after april 1, 1969, when section 40a(3) of the i.t. act had comeinto force. the payments were disallowed by the ito, as, according to him,it was in violation of the aforesaid section. the tribunal, however, setaside ..... sahai, j. 1. the following questions of law have been referred by the income-tax appellate tribunal, allahabad bench, allahabad :'1. whether, on the facts and in the circumstances of the case the agreement dated august 31, 1957, followed .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Nov-29-1984
Reported in : 159ITR209(MP)
..... to grant registration to the firm for the previous year relevant to the accounting year 1978-79.14. the revenue, therefore, submitted an application under section 256(1) of the income-tax act, 1961, to the said tribunal for referring the question quoted above to this court, which was rejected. hence, this application.15. the decision given in m.c.c. no. 49 ..... on january 15, 1982, shall be reheard. accordingly, the tribunal allowed the miscellaneous petition.11. the revenue, therefore, submitted an application before the tribunal under section 256(1) of the income-tax act, 1961, for reference of the question mentioned below :' whether, on the facts and in the circumstances of the case, the tribunal was justified in law in recalling their order passed ..... of the view that there are mistakes in our order. the same are apparent from the record. we have already held in preceding paras that section 254(2) of the income-tax act, 1961, specifically empowers the tribunal to rectify any order passed by it. as discussed above, the tribunal has inherent power to rectify a wrong committed by itself. in such ..... activities. it also found that the entire arrangement appears to be sham and thus dismissed the appeal.9. thereafter, the assessee filed miscellaneous application under section 254(2) of the income-tax act, 1961, before the tribunal for rectification on the ground that the tribunal failed to consider the material placed on record about which submissions were also made. the tribunal, by its .....Tag this Judgment!