Court : Supreme Court of India
Decided on : Aug-29-1985
Reported in : AIR1985SC1698; (1985)48CTR(SC)363; 156ITR323(SC); (1985)4SCC343; Supp2SCR711; 1986(1)LC628(SC)
..... of the case, make any material difference. what has to be found out is what is to be included.22. income-tax act, 1922 was replaced by income-tax act, 1961. section 64 of the income-tax act, 1961, (hereinafter referred to as '1961 act') deals with inclusion of income of the assessee arising out of the assets transferred directly or indirectly to the spouse or the minor child. the provisions ..... august, 1973 for the assessment year 1959-60, 1960-61 and 1961-62 by certificate granted by the high court under section 66a(2) of the indian income tax act, 1922, hereinafter referred to as the 'act'.2. the assessee is an individual. he was carrying on business in the relevant assessment years in purchase and sale of ground-nut oil and was also ..... individual, there shall be included, as belonging to that individual' (emphasis supplied). then the different items including the items of assets transferred have been mentioned. the income-tax act only makes these as includible as such while the wealth-tax act makes these includible as belonging to the assessee. it is not necessary to examine whether in view of section 2(m) of the wealth ..... had taken the view that where the wife or the minor child of an individual incurred a loss which if it were income would be includible in the income of that individual under section 16(3) cf the income-tax act, 1922, such loss should be set off against the income of the individual, was withdrawn on 6th april, 1972. subsequently, section 64 of the 1961 .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-31-1985
Reported in : (1986)50CTR(Bom)237; 161ITR82(Bom); 24TAXMAN486(Bom)
..... provisions of section 66(1) of the indian income-tax act, 1922.2. in the earlier reference, the questions raised are at the instance of the assessee. they read as follows :'(1) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in confirming the enhancement to the income made by the appellate assistant commissioner by the ..... in relation to the account of shivshankar and company in the assessee's books of account. in the submission of mr. jetly, learned counsel for the revenue, the income-tax officer had considered the income of the assessee from its yarn business. the transactions between the asses - see and shivshankar and company were in respect of the yarn business. when, therefore, the ..... be sustained.12. mr. dalvi, learned counsel for the assessee, submitted before us that the appellate assistant commissioner could have gone into only those items as were considered by the income-tax officer from the point of view of their taxability and that it was not open to the appellate assistant commissioner to go outside the record of assessment which comprised the ..... made to them. the appellate assistant commissioner concluded by ordering that pending the receipt of the remand report 'this appeal will stand by'.7. in his remand report, the income-tax officer, on the basis of the evidence that he had gathered, concluded that ganesh trading company and mahavir trading company were brought into existence by the assessee itself to divert .....Tag this Judgment!
Court : Kerala
Decided on : Dec-19-1985
Reported in : 166ITR348(Ker)
..... discharged (see addanki narayanappa v. bhaskara krishnappa, : 3scr400 ).6. it is, therefore, clear that for the purpose of assessment of a dissolved firm under section 189 of the income-tax act, 1961, the income of the firm has to be computed with reference to the market value of the closing stock and not the book value of such stock. on the other hand ..... assessee-firm was rs. 1,04,770. this was on the basis that the closing stock was correctly valued at rs. 94,390.75. subsequently, the assessment was reopened. the income-tax officer held that on dissolution of the firm on june 30, 1971, the closing stock should have been taken not at the cost price as shown in the books, but ..... , he determined the value of the closing stock as on june 30, 1971, at rs. 1,17,987, and the taxable income was determined on that basis. on appeal, the appellate assistant commissioner affirmed the principle followed by the income-tax officer, but gave some reduction by determining the market value of the stock on the closing day by adding 20 per cent ..... t. kochu thommen, j.1. the following question has been, at the instance of the assessee, referred to us by the income-tax appellate tribunal, cochin bench :'whether, on the facts and in the circumstances of the case, the closing stock should be valued at the market value as claimed by the department .....Tag this Judgment!
Court : Gujarat
Decided on : Mar-17-1985
Reported in : (1986)50CTR(Guj)242; 160ITR35(Guj)
..... tribunal was right in law in holding that the tea expenses were not in the nature of the entertainment expenditure which could be disallowed under section 37(2b) of the income-tax act, 1961 ?' 5. so far as the second question is concerned, since we are concerned with the assessment year 1972-73, the position is concluded by the decision of this ..... which brought into existence advantage of an enduring benefit and, therefore, rightly disallowed by the income-tax officer. on a reference, the division bench found the approach of the tribunal was legally erroneous, and the question of the improvements, in the opinion of the division bench, ..... capital nature. the appellate assistant commissioner, however, accepted the claim of the assessee that they should be treated as revenue expenses. he, therefore, deleted the addition made by the income-tax officer. on appeal to the tribunal by the department, it was held that the expenses were of capital nature since they were entailed for effecting a complete change of structure ..... assistant commissioner, however, in respect of the entertainment expenses, restricted the disallowance to rs. 2,000 only. 4. the assessee, therefore, carried the matter in further appeal to the income-tax appellate tribunal. before the tribunal, it was urged on behalf of the assessee that after obtaining the office premises in amir building, the same were required to be renovated and .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-24-1985
Reported in : (1986)52CTR(Bom)158; 162ITR622(Bom); 24TAXMAN444(Bom)
..... bharucha, j.1. four questions are put to us in this reference under section 256(1) of the income-tax act, 1961, the first two at the instance of the revenue and the latter two at the instance of the assessee. they read thus :'(1) whether, on ..... each month. in mr. kolah's submission, the calculation should have been made on the state of the overdraft account from day to day. it was the income-tax officer who made the calculations on the basis of the state of the overdraft account at the end of each month of the relevant previous year. we find ..... having ended on september 30, 1967. the assessee had an overdraft bank account.it utilised the overdraft attributed to borrowings on overdraft utilised for payment of taxes was disallowed by the income-tax officer, by the appellate assistant commissioner and by the tribunal on the basis that it was not an allowable revenue expenditure. in so doing, reference was ..... the assessment year 1968-69 ?'2. counsel are agreed that the first question is covered by the unreported decision of this court in the case of the assessee itself (income-tax reference no. 26 of 1965 decided by kantawala c.j. and tulzapurkar j. on july 26, 1974). the answer to the first question must be, it is ..... rs. 18,05,000 on december 15,1969,which increase the overdraft to rs. 14,63,593 by december 31,1969 the income-tax officer disallowed the proportionate interest payable by the assessee to the bank. it was noted by the appellate assistant commissioner that the assessee's entire .....Tag this Judgment!
Court : Kerala
Decided on : Nov-05-1985
Reported in : 162ITR839(Ker)
..... on it for the assessment year 1974-75, disputing the status adopted as unregistered firm, was competent?' 2. the assessee-firm made an application to the income-tax officer for registration under section 184 of the income-tax act, 1961. since the application was filed 37 days out of time, it was accompanied by a separate application for condonation of delay. the application for ..... condonation of delay was rejected by the income-tax officer by his order marked as annexure c. by his order marked as annexure d, the assessee was assessed on ..... on merits after giving proper opportunity to the party. the assessee, however, appealed against the order of the appellate assistant commissioner refusing to interfere with the order of the income-tax officer rejecting the application for condonation of delay. the department also appealed against the order of the appellate assistant commissioner. the tribunal allowed the department's appeal, but did ..... an order against the assessee, where the assessee denies his liability to be assessed under this act or any order of assessment under sub-section (3) of section 143 or section 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he .....Tag this Judgment!
Court : Gujarat
Decided on : Mar-04-1985
Reported in : 159ITR236(Guj)
..... (2) whether the tribunal has erred in not following correctly the general principle of hindu law relevant to the point at issue and that of the income-tax act as to the meaning or interpretation of income and the entity in whose hands assessable (3) whether the tribunal was justified in applying the supreme court's decision referred to in its order to ..... s.y. 2020, and there was a partition amongst the four members, namely, ramanlal, manherlal, rameshchandra and bai reva. this claim of partial partition was rejected by the income-tax officer. the income-tax officer noted that aforesaid manherlal, rameshchandra and bai reva became partners in s.y. 2020, corresponding to the assessment year l965-66 and the new firm carried on a ..... of the hindu undivided family were from her capital account which comprised, inter alia, insurance money. 7. the appellate assistant commissioner, on consideration of these evidence, disagreed with the income-tax officer and for the reasons stated in his order of january 31, 1973, accepted the explanation of the said two partners that the amounts which they had withdrawn from the ..... family which consisted of s/shri ramanlal, manherlal and rameshchandra, who are the sons of late tribhovandas, and bai reva who is the widow of said tribhovandas. according to the income-tax officer, shri natverlal tribhovandas was also a coparcener. the first accounting year 2020 corresponding to the assessment year 1965-66, comprised of a period commencing from october 18, 1963, .....Tag this Judgment!
Court : Chennai
Decided on : Dec-03-1985
Reported in : 161ITR65(Mad)
..... the assessee, we have two instructive judgments, one rendered with reference to the old provision in section 10(2)(xi) of the indian income-tax act, 1922, and the other under section 36(2)(i)(b) of the income-tax act, 1961. 9. in cit/ept v. jwala prasad tiwari : 24itr537(bom) , we find the following passage : ''writing off' is a technical term used by financiers ..... rs. 20,000 was in fact accounted for twice by the income-tax officer and hence the correct amount that will have to come up for consideration for addition was only rs. 40,550. the appellate assistant commissioner confirmed the view of the ..... the assessee that the fact that the cheques were dishonoured would show that no collections accrued to the assessee and hence they were not taken to the revenue account, the income-tax officer held that since the assessee is maintaining the accounts on mercantile basis, it is but proper that the collections showed should be accounted for in revenue account as and ..... at a later date these amounts are not realisable, the proper way would be to claim them as bad debts. in that view, the income-tax officer added back a sum of rs. 60,550 to the total income for that year. when the matter was taken up in appeal before the appellate assistant commissioner, it was found that the receipt amounting to .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-04-1985
Reported in : (1986)52CTR(Bom)313; 162ITR23(Bom)
..... bharucha, j.1 . this is a reference at the instance of the assessee under section 256(1) of the income-tax act, 1961. the question to be considered read thus :'(a) whether, on the facts and in the circumstances of the case, the receipt of ..... said agreement.4. for the assessment year in question, the assessee claimed that the said amount of rs. 37,500 was exempt from income-tax, being a capital receipt. the income-tax officer came to the conclusion that the assessee had wanted the said premises for business and that the compensation received for the breach in this ..... 37,500 received by the assessee as damages was not a revenue receipt.6. the revenue appealed to the income-tax appellate tribunal. reliance was placed on behalf of the revenue upon the statement made by the assessee in the said suit that he was carrying on business ..... ; and that the said compensation amount of rs. 37,500 was a capital receipt not susceptible to income-tax.8. reliance was placed by mr. khatri upon the judgment of this court in bombay burmah trading corporation ltd. v. cit : 81itr777(bom) . this court observed that compensation received for loss of a capital asset ..... the said agreement having been entered into in the ordinary course of business, it could not be regarded as a capital asset. the compensation received was income liable to tax in the year in which it was received.5. the appellate assistant commissioner, on appeal by the assessee, held that the said amount of rs. .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-04-1985
Reported in : (1986)52CTR(Bom)266; 161ITR234(Bom)
..... the department in a subsequent year. but this rule is subject to limitations, for there should be a finality and certainly in all litigations including litigation arising out of the income-tax act, and an earlier decision on the same question cannot be reopened if that decision is not arbitrary or perverse, if it had been arrived at after due inquiry, if no ..... house property '. it has been pointed out by the division bench that the heads of income enumerated in section 14 of the income-tax act, 1961, are mutually exclusive and each specific head covers items of income arising from the specific source. income derived as rent from property must be computed under the specific head regardless of the fact that that property had at one time ..... of the supreme court in east india housing and land development trust ltd. v. cit : 42itr49(sc) . in that case, the supreme court has taken a view that if the income from a source falls within a specific head set out in section 6 of the indian income-tax act, 1922, the fact that it may indirectly be covered by another head will not ..... make the income taxable under the latter head. on the question referred, we are not called upon .....Tag this Judgment!