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!
Court : Mumbai
Decided on : Oct-01-1985
Reported in : 161ITR92(Bom)
..... is an explanation to this clause, but it is not relevant for our purpose. it is unnecessary to consider in any detail the provisions of the income-tax act levying tax on short-term capital gains and long-term capital gains, because it is common ground that if a gain is made by the transfer of a ..... , the question was whether the gain made by the assessee on transfer of a large area of land in assam was capital gain and taxable under the income-tax act as such. what was held was that the land in question was agricultural land and it never became a capital 'asset' in the hands of the ..... which had been assigned in favour of the third party, clearly fell within the definition of 'capital asset' in clause (14) of section 2 of the income-tax act, 1961. it was held that the entire amount of rs. 5,00,000, being the difference between the amount of rs. 5,90,000 received by ..... by the counsel, it would be proper to take note of the relevant provisions of law. clause (14) of section 2 of the income-tax act, 1961, defines the term 'capital asset'. the relevant portion of the said definition run thus :''capital asset' means property of any kind held by an assessee, ..... whether, on the facts and in the circumstances of the case, and on a proper interpretation of section 2(42a) of the income-tax act, 1961, read with section 2(14) of the said act, the sum of rs. 71,670 was properly treated as long-term capital gains ?'3. before setting out or considering submissions made .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-30-1985
Reported in : (1986)88BOMLR81; (1986)51CTR(Bom)183; 159ITR28(Bom); 24TAXMAN106(Bom)
..... of the capital asset as having increased on account of increased liability in the balance-sheet or does not do so. as we have pointed out, section 43a of the income-tax act, 1961, only deals with the effect of a change in the rate of exchange with the foreign currency concerned in determining the 'actual cost' referred to in section 43 and ..... ) of section 43..'5. the rest of the section is not material for our purposes. it may be mentioned here that depreciation is provided for under section 32 of the income-tax act, 1961. that depreciation in a case like this would be with reference to the actual cost of machinery or plant installed. section 43 defines the term 'actual cost' for the ..... of revaluation of the german and dutch currencies as aforesaid was erroneous and prejudicial to the interests of the revenue inasmuch as, according to him, under section 43a of the income-tax act, 1961, the adjustment for increased liability could be allowed only if the aforesaid liability was increased or decreased during the relevant previous year in consequence of a change in the ..... assets purchased outside india ?'3. it is clear that the claim of the assessees is based on the provisions of section 43a of the income-tax act, 1961, which was inserted by section 17 of the finance (no. 2) act, 1967, with effect from april 1,1967. mr. jetly, learned counsel for the revenue, put forward three submissions. the first submission was that the .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-24-1985
Reported in : (1986)52CTR(Bom)169; 161ITR696(Bom); 24TAXMAN492(Bom)
..... which we can arrive at is that the said land which was acquired was non-agricultural land and the capital gains earned thereon are liable to tax under section 45 of the income-tax act, 1961.6. mr. mehta, learned counsel for the assessee, placed strong reliance on the decision of a division bench of this court in ..... case, the gujarat high court took the view that the gains arising on the sale of the land in question was liable to tax as capital gains under section 45 of the income-tax act, 1961. the principles laid down in this decision have to be kept in mind in determining the question before us.5. coming ..... highway other than the portion of it which was leased out to govindram brothers was agricultural land. the term has not been defined anywhere in the income-tax or the wealth-tax act and in accordance with well settled principles, the meaning of the term 'agricultural land' will have to be gathered from what is generally understood ..... kania, j.1. this is a reference under section 256(1) of the income-tax act, 1961. the assessment year with which we are concerned is the assessment year 1969-70. the question referred to us for determination is as ..... and for which compensation had been paid to the assessee was agricultural land. that contention was rejected by the income-tax officer and the income-tax officer included a capital gain of rs. 8,34,813 in the total income of the assessee. an appeal preferred by the assessee to the appellate assistant commissioner was dismissed. the assessee .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-07-1985
Reported in : 162ITR565(Bom)
..... set out.11. the earlier portion of what is quoted above sets out the objective of the provisions of section 40(a)(v) of the income-tax act, 1961, which is to bring within the purview of the limit any expenditure or allowance admissible to the employer in respect of assets provided by ..... our attention to the memorandum explaining the provision of the finance bill, 1968. the object of the incorporation of section 40(a)(v) in the income-tax act, 1961, is said to be 'to bring within the purview of the limit any expenditure or allowance admissible to the employer in respect of any ..... assessee was entitled in respect of an asset used by its employee.8. we are not impressed by mr. munim's argument. section 40 of the income-tax act, 1961, commences with the words 'notwithstanding anything to the contrary in sections 30 to 39'. this takes in section 32 which deals with depreciation. ..... .7. mr. munim, learned counsel for the assessee, argued that depreciation allowance was not included within the ambit of section 40(a)(v) of the income-tax act, 1961. in his submission, the word 'allowance' therein only meant such allowance as was given by an assessee to its employee. he drew our attention ..... ]132itr125(bom) , it must be held that the tribunal was right in holding that bonus is not a perquisite under section 40(a)(v) of the income-tax act, 1961.3. the question regarding the depreciation on a flat arises in connection with the assessment year 1970-71, the previous year whereof ended on december 31 .....Tag this Judgment!
Court : Mumbai
Decided on : Oct-14-1985
Reported in : 1986(1)BomCR428; (1986)53CTR(Bom)4; 165ITR537(Bom); 27TAXMAN90(Bom)
..... dunkerley & co. ltd. had worked in kuwait. the application of gannon dunkerley & co. ltd. for approval of this agreement with engineering projects (india) ltd. under section 80-o of the income-tax act was rejected by the board on the ground that the agreement was with an indian company and hence it did not qualify for approval under section 80-o. this contention ..... indian concern, the agreement does not qualify for registration under section 80-o of the income-tax act, 1961.6. section 80-o of the income-tax act, 1961, at the material time, was as follows :'80-o. where the gross total income of an assessee, being an indian company, includes any income by way of royalty, commission, fees, or any similar payment received by the assessee from ..... under the said contract.5. the petitioner, by its letter dated september 26, 1977, made an application to the central board of direct taxes for approval of the agreement dated february 5, 1976, under section 80-o of the income-tax act, 1961. by its reply dated april 19, 1978, the application of the petitioner has been rejected by the central board of direct ..... . in this connection, my attention was also drawn to the provisions of section 80mm of the income-tax act, 1961, which has since been repealed with effect from april 1, 1984. under section 80mm 'the gross total total income of an assessee, being an indian company, includes any income by way of royalty, commission, fees or any other payment... received by the assessee from any .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-27-1985
Reported in : 60CompCas950(Bom); (1986)53CTR(Bom)101; 161ITR842(Bom); 25TAXMAN36(Bom)
..... of registration of shares of m/s. bajaj auto limited is an admissible deduction under section 37 or any other section of the income-tax act, 1961 ?'2. the assessee derives income from the manufacture of auto spare parts, from managing agency commission and from dividends. the assessee acquired 3,643 shares of m/s ..... bharucha, j.1. this is a reference under section 256(1) of the income-tax act, 1961, made at the instance of the assessee. we are asked to answer the following question :'whether, on the facts and ..... assessee went up to the income-tax appellate tribunal. upon a review of the authorities, the tribunal came to the conclusion ..... as a deduction from its income an amount of rs. 15,086 paid by it to solicitors towards fees incurred in conducting the appeal before the company law board. the claim was disallowed by the income-tax officer. the appellate assistant commissioner, in appeal by the assessee, upheld the income-tax officer's stand.4. the ..... the aforementioned case was dealing with an altogether different question upon substantially dissimilar facts. mr. inamdar referred to the statement in the judgment of this court in cit v. babulal narottamdas (legal heirs of narottamdas jethalal) : 105itr721(bom) , that the normal function of a court was to declare a right .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-24-1985
Reported in : (1985)46CTR(Bom)189; 156ITR448(Bom); 23TAXMAN14(Bom)
..... part iii, the petitioner showed the net surplus of rs. 66,306 as non-taxable capital gain on the basis of the provisions of section 2(14) of the income-tax act, 1961.3. the income-tax officer, however, in his order held that the silver utensils cannot be called personal effects and, hence, the capital gains arising from the sale of silver utensils would ..... . the silver utensils were such as were required for their personal use. the petitioner as well as members of his family were all assessees not merely under the income-tax act but also under the wealth-tax act, 1957. he submitted that he belonged to a wealthy family and such silver utensils were used personally by the members of his family and himself.6. in ..... the personal use of the assessee in the ordinary course.8. in the present case, the commissioner had applied a restrictive test not warranted by section 2(14) of the income-tax act. he has held that because these articles were not normally in daily use, they could not be considered as personal effects. this appears to be an incorrect test because all ..... .5. can these silver utensils be considered as personal effects of the assessee if so, are they excluded from the definition of 'capital asset' under section 2(14) of the income-tax act, 1961 under section 2(14), 'capital asset' means 'property of any kind held by an assessee.......but does not include (i).....; (ii) personal effects, that is to say, movable property .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-19-1985
Reported in : (1986)53CTR(Bom)113; 161ITR631(Bom)
..... denied relief on the ground that he has not paid interest under section 217 and section 139(8) of the income-tax act, 1961. under the relevant provisions of section 273a, the commissioner may exercise his discretion if he is satisfied that the petitioner has 'either paid or made ..... . in the present case, this has not been done.8. mr. devadhar, learned advocate for the respondents, pointed out that under section 273a of the income-tax act, 1961, the petitioner should have paid the full amount of interest levied before asking for the benefit of section 273a. the petitioner, however, has not been ..... was issued for a sum of rs. 13,173. pursuant to the said notice, the petitioner paid in october, 1979, income-tax amounting to rs. 2,145, interest under section 220(2) of the income-tax act, 1961, of rs. 1,710 plus further interest under section 220(2) up to date of rs. 145. the ..... style of m/s. honest engineering corporation at mulund, bombay. the petitioner is assessed as an individual under the provisions of the income-tax act, 1961.2. for the assessment year 1975-76, the petitioner was served with a notice of demand dated june 15, 1974, calling upon him to ..... said that all the conditions for waiver of penalty and interest are not satisfied and hence he rejected the petition.6. section 273a of the income-tax act, 1961, deals with power to reduce or waive penalty in certain cases. under this section, the commissioner in his discretion has the power to .....Tag this Judgment!
Court : Mumbai
Decided on : Aug-22-1985
Reported in : 1986(1)BomCR117; (1987)62CTR(Bom)177; 165ITR245(Bom); 1986MhLJ292
..... not become operative.8. it was, however, fairly conceded by shri bhangde for the complainant that the present complaint case under section 277 of the income-tax act 1961, was triable as a summons case, inasmuch as the imprisonment provided for the said offence, according to law then prevailing, was up to ..... leading to the present revision are as under. the non-applicant no. 1 the income-tax officer, filed criminal case no. 839 of 1982 against the present applicants for an offence punishable under section 277 of the income-tax act 1961. after registration of the complaint, process was issued to the accused and the ..... accused and the said order, being a final order, could not be reviewed by him.7. shri m. g. bhangde, for the complainant-income-tax officer, urged that as per the cited rulings, an order dismissing the complaint in default is not a substantive order in concluding the innocence or ..... dated november 8, 1984, which is impugned by the accused.5. shri s. g. ghate, advocate, appears for the applicant/accused. respondent no. 1, the income-tax officer, is represented by shri m. g. bhangde, advocate. the state is represented by shri v. v. naik, asstt. govt. pleader.6. with the ..... a reported ruling in : air1950bom10 (in re wasudeo narayan) as well as as an unreported ruling in criminal revision application no. 43 of 1980 income-tax officer v. sampat prasad directed that the earlier order of dismissal of complaint is reviewed, the same is set aside and the original criminal case no .....Tag this Judgment!