Court : Kerala
Decided on : Oct-30-1985
Reported in : (1986)55CTR(Ker)141; 162ITR732(Ker)
..... 40(c) ' 2. the answers to these questions depend on the construction of sections 40(c) and 40a(5) of the income-tax act, 1961. the fundamental question is whether, in computing the income of a company chargeable under the head 'profits and gains of business or profession', the expenditure arising or incurred in respect of its ..... either of them, or any expenditure or allowance in respect of any assets of the company used by such a person, if in the opinion of the income-tax officer such expenditure or allowance, having regard to the legitimate business needs of the company and the benefit derived by it, is excessive or unreasonable. however, ..... 30 - 39 in so far as they provide to the contrary. clause (c) of this section says that, in the case of a company, the income-tax officer is empowered to disallow any expenditure which results directly or indirectly in the provision of any remuneration or benefit or amenity to a director or to a ..... used by any person referred to in sub-clause (i) either wholly or partly for his own purposes or benefit, if in the opinion of the income-tax officer any such expenditure or allowance as is mentioned in sub-clauses (i) and (ii) is excessive or unreasonable having regard to the legitimate business needs ..... t. kochu thommen, j.1. the following questions have been, at the instance of the assessee, referred to us by the income-tax appellate tribunal, cochin bench:'(1) whether, on the facts and in the circumstances of the case, for the assessment year 1972-73, .....Tag this Judgment!
Court : Kerala
Decided on : Sep-26-1985
Reported in : 161ITR718(Ker)
..... by the periyar and pareekanni rubbers ltd., on the acquisition and sale, respectively, of agricultural lands, was, in the hands of the assessees, receipt of dividend assessable to income-tax under the income-tax act, 1961?'3. in substance, what is in issue is the taxability of the amounts received by way of dividends by the assessees from the company out of the compensation ..... within the excepted periods: vide explanation to section 2(6a). ' accumulated profits' are, therefore, profits which are so regarded in commercial practice, and capital gains as defined in the income-tax act. realisation of appreciated value of assets in commercial practice is regarded as realisation of capital rise, and not profits of the business. unless, therefore, appreciation in the value of capital ..... lal singha's case : 82itr460(sc) .8. no doubt, the definition of 'dividend' in section 2(6a) of the indian income-tax act, 1922, is not fully identical with the definition in the corresponding section 2(22) in the income-tax act, 1961. all the same, we should not lose sight of the fact that none of the amendments to the definition--during the ..... on by the tribunal, in our opinion, are not relevant for our purpose. those decisions interpreted the provisions of the english law on income-tax, which could not be treated as authorities for deciding cases governed by the indian income-tax act, 1922, which are not identical to those of the english law.14. the result, therefore, is that we answer the questions in .....Tag this Judgment!
Court : Kerala
Decided on : Jul-23-1985
Reported in : 160ITR120(Ker)
..... is that there was a reconstitution of the firm with the minor remaining the common link. a reading of section 2(23) read with section 187(2) of the income-tax act, 1961, makes it abundantly clear that in a case like this, the reconstituted firm is to be treated as a firm. this was a resurrection of the former ..... follows :'whether, on the facts and in the circumstances of the case, the tribunal was right in law having regard to the provisions of section 36(2) of the income-tax act, 1961, in directing allowance to the extent of rs. 11,512 of debts which the assessee had claimed had become bad? '2. till february 1, 1974, there ..... or steps having been taken to recover the same. the appellate assistant commissioner of income-tax in appeal held that the assessee was entitled to claim the deduction inasmuch as there was reconstitution of the firm. the tribunal having confirmed the order of the appellate ..... , 1974. the minor along with three other persons reconstituted the firm. the assessee-firm claimed certain deduction by way of bad debts during the year in question. the income-tax officer did not allow the deduction holding, firstly, that there was no reconstitution of the firm, and, secondly, that there was no proof of bad debts in existence ..... and against the revenue.7. a copy of the judgment under the signature of the registrar and seal of the court will be forwarded to the income-tax appellate tribunal, cochin bench. .....Tag this Judgment!
Court : Gujarat
Decided on : Mar-04-1985
Reported in : (1986)53CTR(Guj)274; 159ITR253(Guj)
..... reason in support of the view which we are inclined to take and that is the insertion of a new provision in section 35d in the income-tax act, 1961, which of course permits the amortisation of capital expenditure, inter alia, for preparation of feasibility report under specified conditions. in other words, ..... 'ships'. 12. it is no doubt true that so far as the term 'ships' is concerned, there is no legislative dictionary in the income-tax act. it is also equally true that in its ordinary literal meaning, a pontoon cannot be considered as ship. but having regard to the legislative intent ..... be considered to be a ship in its ordinary meaning and not in the meaning given to it by the legislature for the different purposes under the income-tax act. the ordinary dictionary meaning of the term 'pontoon' is 'flat-bottomed boat used as ferry-boat, etc.' (see the new oxford illustrated dictionary ..... 72, the tribunal affirmed the view of the appellate assistant commissioner that the assessee-company is entitled to the relief under section 80j of the income-tax act, 1961, in respect of all the three units on the concession of the parties that the earlier decision of the tribunal holding that the ..... whether, on the facts and in the circumstances of the case, the tribunal has been right in law in allowing relief under section 80j of the income-tax act, 1961, in respect of sikka 4th expansion unit, bombay cement mills 1st expansion, and asbestos products division 1st expansion unit by the assessee : (3 .....Tag this Judgment!
Court : Gujarat
Decided on : Mar-22-1985
Reported in : 160ITR477(Guj)
..... basic facts. it is no doubt true that in the question as has been referred to us, there is reference to section 68 of the income-tax act, 1961. we do not think that this mere reference to section 68 necessarily involves application of any legal principle to the inferences drawn from facts ..... finding that this is an unexplained cash credit is a finding on an issue by application of the legal principle contained in section 68 of the income-tax act to an inference drawn from basic facts. secondly, he submitted that inasmuch as the departmental authorities and the tribunal have not examined the merits of ..... (b) rs. 5,000 in the name of shri tulsidas bhojraj credited in the books of the assessee were taxable as income of the assessee under section 68 of the income-tax act, 1961 ?' 2. at the time of hearing of this reference, a preliminary point was raised on behalf of the revenue ..... unsatisfactory. the high court was of the opinion that the explanation was not prima facie absurd and was capable of being examined by the income-tax officer. the income-tax officer could have gone into the question of remittances made by the assessee from ceylon which he did not choose to do. the high ..... given by the brokers could not be relied upon since they were acting merely as conduit pipes to transfer the unaccounted moneys of the parties in their books of account. on appreciation of the relevant evidence produced before the income-tax officer, documentary as well as oral, the tribunal concluded that the .....Tag this Judgment!
Court : Gujarat
Decided on : Aug-19-1985
Reported in : (1986)1GLR563; 160ITR893(Guj)
..... mother, jashoda, in respect of the business and capital of the bigger hindu undivided family of jivanji govindji bhavsar. the said partial partition was recognised by the income-tax officer under section 171 of the income-tax act by his order of november 15, 1971. the applicant, rameshchandra, and his mother, jashoda, formed a partnership by bringing in capital received by him on the ..... . we are of the opinion that the legal position has been clearly enunciated and settled by the decision of the supreme court in cit v. damodaran : 121itr572(sc) . after explaining the scheme of section 256 of the income-tax act, 1961, which, shortly stated, enables a party aggrieved by the order of the tribunal to seek reference. an aggrieved party is obviously ..... have sought the reference. the commissioner, however, sought the reference from the tribunal under section 256(1) of the income-tax act on the question as to whether the tribunal was right in allowing the appeal by holding that till the order of the income-tax officer recognising the partial partition was set aside in appropriate proceedings, it operated for all intents and purposes and ..... the tribunal to refer these two cross-questions to this court. the commissioner, however, moved this court by the present income-tax application no. 79 of 1983 seeking an order calling for the reference under section 256(2) of the 1961 act. this court has made the rule absolute calling for the statement of a case as prayed for by the commissioner. at .....Tag this Judgment!
Court : Gujarat
Decided on : Oct-23-1985
Reported in : (1986)53CTR(Guj)365; 162ITR612(Guj)
..... charitable or religious objects, it is the surplus realised or available on commercial principles that has to be taken into consideration and not as per the provisions of the income-tax act, is correct in law 3. in the subsequent assessment year 1972-73, the assessee changed to the cash system of accounting. it submitted a return showing a deficit of rs. ..... rs. 76,972 by way of deduction as an amount applied for charitable purposes under section 11(1)(a) of the income-tax act, 1961 (hereinafter called 'thejact'). in that year, the assessee was following the mercantile system of accounting. the income-tax officer refused the deduction whereupon the assessee carried the matter in appeal before the appellate assistant commissioner. the appellate assistant commissioner ..... under : '(1) whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal was justified in law in holding that income-tax liability for an amount of rs. 76,972 should be allowed as deduction under section 11(1)(a) of the income-tax act, 1961 and (2) whether the finding of the tribunal that in order to give meaning to ..... the expression 'income', the deduction of income-tax liability must be taken as an outgoing before the surplus could be ascertained and that while determining the 'income' or the surplus available to the trust for the purpose .....Tag this Judgment!
Court : Rajasthan
Decided on : Jan-03-1985
Reported in : (1985)46CTR(Raj)264; 165ITR367(Raj); 1985(1)WLN349
..... appeals before the income-tax appellate tribunal. the learned tribunal disposed of both the appeals by a common order dated november 24, 1980. the tribunal agreed with ..... unknown and, as such, the provisions of section 164 were applicable?' 3. brief facts of the case are that pursuant to a notice issued under section 143(2) of the income-tax act, 1961 (no. xliii of 1961) (for short 'the act'), by the income-tax officer, a-ward, kota, m/s. moti trust (hereinafter referred to as 'the assessee ') filed a return of its ..... in respect of the assessment year 1976-77. the commissioner directed the income-tax officer to charge tax on the assessee-trust under section 164 of the act and to issue necessary consequential notice of demand and challan and take steps to collect the same as per the provisions of the income-tax act, 1961.6. the assessee, aggrieved against the orders of the commissioner, filed two ..... of association of persons and had completed the assessment under section 164 of the act. the assessee itself had also declared the status as association of persons but the income-tax officer in the assessment forms did not tax the trust as provided under section 164. the order passed by the income-tax officer was considered to be erroneous and as there was loss of lawful .....Tag this Judgment!
Court : Rajasthan
Decided on : Nov-19-1985
Reported in : (1986)57CTR(Raj)291; 164ITR431(Raj)
..... before the appellate tribunal claimed in the alternative that the amount laid out was in any event expenditure for current repairs allowable under section 10(2)(v) of the indian income-tax act. their lordships held as under (headnote):'that because the tribunal rejected the assessee's claim for development rebate, it was not bound to disallow the claim of the assessee for ..... law for not entertaining the plea taken by the department before the tribunal.9. for the proper appreciation and adjudication of the controversy, we read section 254(1) of the income-tax act:'section 254(1) the appellate tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit.' 10. section ..... the assessee. under section 33(4), the appellate tribunal is competent to pass such orders on appeal 'as it thinks fit'. there is nothing in the income-tax act which restricts the tribunal to the determination of questions raised before the departmental authorities. all questions, whether of law or of facts, which relate to the assessment of the assessee ..... the hands of the co-owners and not in the hands of the 'association of persons', vide section 26 of the income-tax act, 1961. this contention found favour with the appellate assistant commissioner and hence this income was deleted from the income of the assessee.6. the department took appeals before the appellate tribunal and it was submitted that the appellate assistant commissioner has .....Tag this Judgment!
Court : Rajasthan
Decided on : Oct-08-1985
Reported in : (1986)51CTR(Raj)14; 163ITR316(Raj)
..... that the payment of rs. 35,000 was made under exceptional circumstancesand, therefore, it was not hit by section 40a(3) of the income-tax act. the commissioner of income-tax, jaipur, filed an application under section 256(1) of the income-tax act requiring the tribunal to draw up a statement of the case and refer the question quoted above to the high court for its opinion ..... supreme court has observed as under (headnote) :'it is well established that the high court is not a court of appeal in a reference under section 66 of the indian income-tax act, 1922, and it is not open to the high court in such a reference to embark upon a reappraisal of the evidence and to arrive at findings of fact contrary ..... trading co. were also filed along with the reply dated may 14, 1974. the assessing authority disallowed the payment as it contravened the proviso to section 40a(3) of the income-tax act as it found that the three letters produced did not bear any reference number and they were only an after-thought. the assessee preferred an appeal and the appellate assistant ..... finding of fact was not challenged by the department before the tribunal in the reference application under section 256(1) of the income-tax act nor has it been challenged before us in the application under section 256(2) of the income-tax act and, therefore, we are bound by the same and cannot go behind the finding arrived at by the tribunal. moreover, it cannot .....Tag this Judgment!