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-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!
Court : Mumbai
Decided on : Oct-23-1985
Reported in : (1986)88BOMLR415; (1986)51CTR(Bom)91; 162ITR599(Bom); 24TAXMAN67(Bom)
..... & sons, a case of the very assessee before us, reported in : 115itr587(bom) . in that case, the act with which the court was concerned was the indian income-tax act, 1922, but there is no dispute that the scheme of assessment under that act and the income-tax act, 1961, is the same. in that judgment, this court relied upon the decision of the supreme court in ..... disputes are common judgment.2. the respondent-assessee is a firm carrying of business in bombay. the said firm consists of two partners and was duly registered under the indian income-tax act, 1922. the said firm was a dealer in government securities which formed its stock-in-trade. it appears that as pointed out by the assessee to the ..... the supreme court referred to above have been rendered in connection with the indian income-tax act, 1922, it is an undisputed position that the scheme of computation and assessment of total income under the said act is similar to the scheme of computation of total income and its assessment under the income-tax act, 1961, and hence the principles laid down in the aforesaid decision must apply to ..... the accountant-general. the assessee claimed that the said amount represented interest on securities covered under section 8 of the indian income-tax act, 1922, and the assessee was entitled to credit for tax deducted in respect thereof under section 18 of that act. it was held that as the securities were transferred in the name of the assessee, it was the fund that owned .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-16-1985
Reported in : (1986)54CTR(Bom)386; 162ITR434(Bom)
..... the actual traveling expenses incurred by him in attending to the work of his employer.3. in our view, the question referred poses hardly any difficult. section 16 of the income-tax act, 1961, provides for deductions from salary. under the provisions of clause(iv) of that section, as it stood at the relevant time, and having regard to the salary of the ..... us is as follows :'whether, on the facts and in the circumstances of the case, the assessee was entitled to deduct rs. 2,400 under section 16(iv) of the income-tax act, 1961 ?'2. the relevant facts are as follows. the year with which we are concerned in the assessment year 1971-72. the assessee was the works manager of the west ..... own during the relevant previous year and claimed deduction of rs. 2,400 under section 16(iv) of the income-tax act, 1961, in the year of assessment. the income-tax officer as well as the appellate assistant commissioner rejected this claim. on appeal to the income-tax appellate tribunal, the tribunal took the view that the assessee was entitled to claim this deduction. on a plain ..... him. right from the first year in which this allowance was paid to the assessee up to the year 1961-62, the income-tax officer concerned took the view that it was exempt under section 4(3)(vi) of the indian income-tax act, 1922, and in respect of the assessment years from 1962-63 up to the assessment year in question, a similar deduction .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-27-1985
Reported in : (1986)52CTR(Bom)320; 161ITR817(Bom)
..... existence;'5. mr. jetly submitted that inasmuch as there had been, in the instant case, the reconstruction of a business already in existence, the relief under section 80j of the income-tax act, 1961, was not available to the assessee.6. he also relied on the fact that the plant for manufacturing nylocinserts had been housed in an extension of the existing business ..... tribunal was right in holding that a new industrial undertaking had come into being and that the assessee was entitled to relief under section 80j of the income-tax act, 1961 ?'2. we are concerned with the assessment year 1971-72. the assessee had been carrying on business in the manufacture and sale of self-locking nylocnuts for vehicles. for ..... premises.7. in the decision of the supreme court in textile machinery corporation ltd. v. cit : 107itr195(sc) , 'reconstruction' in section 80j(4)(i) of the income-tax act, 1961, has been taken to mean that an undertaking of some definite kind was being carried on and the conclusion was arrived at that it ..... behalf of the revenue, advanced by mr. jetly, its learned counsel, is based on sub-section (4)(i) of section 80j of the income-tax act, 1961. sub-section (1) provides for relief to be given where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking to which the section applies. sub-section (4) provides that .....Tag this Judgment!