Court : Mumbai
Decided on : Oct-25-1985
Reported in : (1986)88BOMLR146; (1986)51CTR(Bom)36; 162ITR648(Bom); 24TAXMAN217(Bom)
..... the commissioner of income-tax had acted erroneously in directing its withdrawal.4. arising out of the order of the ..... applying section 64(iii) of the income-tax act, 1961. the income-tax officer observed that the assessee was entitled to rebate under section 85 of the said act upon, inter alia, the said dividends, and assessed the assessee's income accordingly.2. the commissioner of income-tax issued to the assessee a notice to show cause why the income-tax officer should not be directed to withdraw ..... the assessee's hands, so that the second condition was also not fulfilled.6. section 64(iii) of the income-tax act, 1961 requires that in computing the total income of an individual, there shall be included all such income as arises to the spouse of such individual from assets transferred to the spouse by such individual otherwise than for adequate consideration ..... had not been fulfilled and directed the income-tax officer to withdraw the rebate allowed to the assessee under section 85 on the said dividends.3. the assessee appealed to the income-tax appellate tribunal. the tribunal held that the relief under section 85 of the income-tax act, 1961. had been properly given by the income-tax officer on the said dividends and that .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-17-1985
Reported in : (1986)50CTR(Bom)5; 162ITR452(Bom); 27TAXMAN7(Bom)
..... the head 'profits and gains of business or profession'.'6. it was contended on behalf of the revenue by mr. dhanuka that section 56(2)(iii) of the income-tax act, 1961, contemplated both the letting of a building and the letting of a plant. in the instant case there was no letting of the installation. section 56(2)(iii), therefore, ..... .11. there being no letting of the installation, the requirements of section 56(2)(iii) of the income-tax act, 1961, were not met. accordingly, the income derived by the assessee form the leases cannot be taxed under the head 'income from other sources'. it must be taxed as income from property.12. great reliance was placed by mrs. jagtiani upon the aforesaid decision of the supreme court ..... the agreements of the air-conditioning installation. the provisions of section 56(2)(ii) of the income-tax act, 1961, do not, therefore, apply, accordingly, the income derived by the assessee from the premises under the leases cannot be taxed under the head 'income from other sources' but must be taxed as income from property. the question is so answered.18. there shall be no order as to ..... granted. the issue was whether the two lettings were inseparable so as to attract the provisions of section 56(2)(iii) of the income-tax act, 1961.15. the decision of the karnataka high court in d. c. shah v. cit : 118itr419(kar) is of much assistance here. a lease was given to the state bank of india of a building. air-conditioning .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-07-1985
Reported in : (1986)51CTR(Bom)18; 161ITR286(Bom); 24TAXMAN92(Bom)
..... in holding that the perquisites paid to a. p. giusti are not to be considered under section 40(c)(iii) or section 40(a)(v) of the income-tax act, 1961.10. in the result, all the questions referred to us are answered in the affirmative and against the revenue.11. the commissioner to pay the ..... case, the question before the madras high court arose in relation to a foreign technician whose salary could not be brought under the income-tax act, 1961, as it was not included in his total income. the question related to the perquisites granted to the employee in excess of one-fifth of the amount of salary payable to him ..... allowable by way of deduction as revenue expenditure.8. we now come to question no. 4. section 10 of the income-tax act, 1961, lays down that certain incomes are not to be included in computing the total income of any person. it is common ground that under section 10, the salary paid to a. p. giusti was ..... mr. jetly, to put it very briefly, is that the word 'chargeable' is used differently in the income-tax act from the word 'assessable' and that the levy of tax on income is a different thing from the chargeability of the income under the head 'salary'. it was submitted by him that the salary received by a. p. giusti ..... took the view that words 'seven thousand five hundred rupees or less' in the second proviso to section 40(c)(iii) of the income-tax act, 1961, which was in pari materia with the aforesaid second proviso to sub-clause (v) of clause (a) of section 40 of the said .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-18-1985
Reported in : (1986)50CTR(Bom)275; 159ITR203(Bom); 24TAXMAN29(Bom)
..... the ground that the residential status of the individual alone has to be considered and not of his wife and children for the purpose of section 64(1) of the income-tax act, 1961 ?'2. the assessee, f. y. khambaty, was a partner in the firm of m/s. f. y. khambaty & sons, kano, nigeria (referred to hereinafter as 'the said firm'). among ..... the tribunal that the aforesaid question has been referred to us. we may point out that it is common ground that the assessee had other income in respect of which he was liable to be taxed under the income-tax act in all the aforesaid assessment years. before considering the submissions of the learned counsel, it would be useful to take note of the relevant ..... the use of the said expression shows is that in considering what is total income under section 5, one has to exclude such income as is excluded from the scope of total income by reason of any other provision of the income-tax act and not that the other provisions of the income-tax act override the provisions of section 5 as suggested by mr. jetley. if we were ..... provisions of the income-tax act, 1961. sub-section (1) of section 64 of the said act, as it stood at the relevant time, provided for the inclusion of certain incomes in the total income of the assessee. relevant provisions of sub-section (1) of section 64 read as follows :'64. (1 .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-05-1985
Reported in : (1986)52CTR(Bom)338; 160ITR650(Bom)
..... relevant portion of para 2 of that order runs as follows :'in making any assessment under the indian income-tax act, 1922, all depreciation actually allowed under any laws or rules of a part b state relating to income-tax and super-tax, or any law relating to tax on profits of business, shall be taken into account in computing the aggregate depreciation allowance referred to in ..... of the buildings, machinery, etc., of the assessee for calculating the depreciation allowance under section 10(2)(vi) of the indian income-tax act, 1922 (referred to hereinafter as 'the act of 1922'). the assessee relied upon section 10(5)(b) of the act of 1922 and contended that the original cost of the machinery, etc., should be taken into account for calculation of depreciation ..... in this reference under section 256(1) of the income-tax act, 1961, is as follows :'whether, on the facts and in the circumstances of the case, the levy and charge under the industrial tax rules, 1927, which had the force of law in the erstwhile holkar state of indore amounted to income-tax or super-tax or tax on profits of business ?'2. the facts : hukumchand mills ..... down value for the purpose of calculating depreciation under the indian income-tax act of 1922. it was urged by him that the nomenclature as an industrial tax was not material and the true nature of the tax shows that it was levied on the income or profits. the circumstance that it was levied on the income or profits of a particular industry was not material.10 .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-17-1985
Reported in : (1986)50CTR(Bom)129; 161ITR535(Bom); 24TAXMAN251(Bom)
..... property occupied by the landlord himself.12. in our view, the words 'and further be reduced' in sub-section (2) of section 23 of the income-tax act, 1961, do not lead to the conclusion that there has already been a reduction in the annual letting value by the application of the provisions contained in ..... as contemplated by the first proviso to sub-section (1).11. we have applied our minds with some care to the provisions of section 23 of the income-tax act, 1961. in our view, the words 'the annual value shall first be determined as in sub-section (1) 'used in sub-section (2) refer ..... as the gujarat high court but did not rest itself solely upon the words 'and further be reduced' in sub-section (2) of section 23 of the income-tax act, 1961. the madras high court found, first, that the expression 'the annual value shall first be determined as in sub-section (1)' occurring in sub- ..... that the words which required interpretation, having regard to the argument before it (which is the argument before us) in sub-section (2) of section 23 of the income-tax act, 1961, were : 'the annual value shall first be determined as in sub-section (1) 'and' and further be reduced by one-half of the amount'. ..... by the landlord.7. mr. dalvi then placed emphasis upon the words 'and further be reduced' in sub-section (2) of section 23 of the income-tax act, 1961. these words, he argued, necessarily indicated that a reduction from the annual letting value had already been made in computing it under sub-section ( .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-20-1985
Reported in : (1986)52CTR(Bom)64; 161ITR673(Bom); 24TAXMAN305(Bom)
..... bharucha, j.1. these are references under section 256(1) of the income-tax act, 1961, made at the instance of the revenue. two common questions are posed, namely :'(1) whether, on the facts and in the circumstances ..... been imposed. the assessee, therefore, with the permission of the reserve bank, repatriated an amount of $ 49,500. this resulted in a surplus which the income-tax officer assessed as the assessee's profit arising incidental to the carrying on of its business. when the matter reached the supreme court, it was held that the ..... and in the circumstances of the case and without prejudice to the ground at 2 above, the learned appellate assistant commissioner ought to have upheld the income-tax officer's contention that unmerited head office expenses represented funds that were retained in india and were used in india as working capital and, therefore, the ..... the head office the amounts due on this account for the reserve bank's permission therefor had not been obtained. this was because the assessee's income-tax assessments were not completed. on june 6, 1966, the amount on account of administrative and overhead expenses unmerited to the head office and standing to ..... head office.6. the liability of the assessee to pay its share of administrative and overhead expenses to the head office has been considered by the income-tax officer year after year to be allowable revenue expenditure. although this allowance had been granted from year to year, the assessee had not been able to .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-11-1985
Reported in : (1986)50CTR(Bom)210; 160ITR814(Bom)
..... instant case, the transfer of the shares had been effected before april 1, 1961, and the provisions of section 64 of the income-tax act, 1961, were not retrospective in nature, the income arising by way of capital gain could not be taxed in the hands of the assessee.10. with great respect to the learned judges of the rajasthan high court, we are unable ..... so as to take away or impair an existing right or create a new obligation or impose a new liability. unlike section 60, the income-tax act, 1961, the expression 'whether effected before or after the commencement of this act' did not find mention in section 64. there was nothing in section 64(iv) to show that the provisions were retrospective. all laws were ..... bharucha, j.1. the questions, referred for our consideration at the instance of the revenue in this reference under section 256(1) of the income-tax act, 1961, read thus :'(1) whether, on the facts and in the circumstances of the case, the capital gain of rs. 44,726 realised on sale of 1,500 shares of ..... to another minor son in 1960. the income from these assets had not been included in her total income. according to the income-tax officer, the income of the minor sons had, by reason of section 64 of the income-tax act, 1961, to be included in her total income. accordingly, he started reassessment proceedings and brought the income from their assets to tax in the hands of the assessee. the .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-30-1985
Reported in : (1986)53CTR(Bom)228; 163ITR560(Bom)
..... kania, actg. c.j.1. these six references under section 256(1) of the income-tax act, 1961, arise on a common statement of the case. the questions referred to in the said references are substantially similar. in these circumstances, ..... however, this does not make any difference as far as the question before us is concerned, because it is common ground that both the parties have acted pursuant to this draft agreement. the said corporation has supplied know-how under the said draft agreement and the assessee has made payments under the draft agreement. ..... as of a capital nature and in support of that argument he placed strong reliance on the decision in the case of fenner woodroffe & co. ltd. v. cit : 102itr665(mad) . that is the decision of a division bench of the madras high court. unfortunately, that decision does not help mr. jetly in ..... nature and the payments made by it were allowable as revenue expenditure. the division bench placed strong reliance on the decision of a division bench of this court in cit v. tata engineering & locomotive co. pvt. ltd. : 123itr538(bom) . in that decision, this court has pointed out that technical know-how cannot be ..... and the dispute is whether these payments are permissible as revenue deductions. in this regard, a division bench of this court in kirloskar pneumatic co. ltd. v. cit : 136itr746(bom) , considered this very question which is before us. that case related to certain payments by the assessee before us to the very same .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-16-1985
Reported in : (1985)87BOMLR468; (1986)52CTR(Bom)213; 161ITR544(Bom); 1985MhLJ814; 25TAXMAN9(Bom)
..... a reference who is entitled to specify the question of law which should be referred. where the order of the tribunal under section 254 of the income-tax act has decided the appeal partly against one party and partly against the other, the party who is aggrieved and who desires a reference to the high ..... obligation which, but for such payment, would have been payable by the assessee.'6. coming to the provisions of section 17(2)(iii)(c) of the income-tax act, it appears that it is not possible to take the view that in this case, the scholarships paid to the children of the assessee could be ..... propose first to discuss question no. 1 referred to us. in this connection, it will be useful to take note of the provisions of section 17 of the income-tax act. sub-section(l) of section 17, inter alia, provides that 'salary' includes perquisite given to an employee. sub-section (2) of section 17 gives an ..... assessment years and hence this amount could be treated as a perquisite received by the assessee under the provisions of section 17(2)(iv) of the income-tax act. the tribunal pointed out that if the revenue wanted to rest its case under section 17(2)(iv), it should have brought on record material to ..... the scholarship amount of rs. 2,400 given by the employer to the two children of the assessee-employee is exempt under section 10(16) of the income-tax act, 1961 ?'2. question no. 1 was referred at the instance of the commissioner and question no. 2 was referred at the instance of the assessee.3 .....Tag this Judgment!