Court : Mumbai
Decided on : Dec-14-1988
Reported in : 186ITR412(Bom)
..... the grounds that the same did not fall under the provisions of any section, viz. section 28 and/or section 36 and/ or section 37 of the income-tax act, 1961 ?'2. the assessee-company is a non-resident company. it is engaged in the business of manufacture of accounting and computing machines which are sold or ..... clause (2) of the agreement dated october 23, 1962, clearly indicated, was being acquired for its existing business. moreover, as pointed out by shri dastur, the income-tax appellate tribunal has rejected the claim of the assessee for a reason other than this reason. accordingly, we proceed on the assumption that the factory premises were being acquired ..... off by the assessee-company.3. the assessee claimed the aforesaid amount of rs. 1,08,088 as a business loss. the claim was disallowed by the income-tax officer and the disallowance was confirmed by the appellate assistant commissioner who, inter alia, observed that the agreement had nothing to do with the current business of ..... decisions, according to him, were distinguishable as in those decisions, the connection between the expenditure and the business was very proximate. for instance, in the allahabad case cit v. jwala pd. radha kishan : 107itr540(all) , the assessee was a sole selling agent and was earning huge profits from the persons from whom he ..... t.d. sugla, j.1. the income-tax appellate tribunal has referred only one question of law to us for opinion in this case at the instance of the assessee. the question reads .....Tag this Judgment!
Court : Gujarat
Decided on : Apr-11-1988
Reported in : 173ITR666(Guj)
..... tribunal ('tribunal' for short), has referred to us for our opinion the following questions under section 256(1) of the income-tax act, 1961 : ' (1) whether, on the facts and in the circumstances of the case, the amount of rs. 66,066 received by the assessee-firm ..... this amount of rs. 66,066 was offered for taxation when the assessee filed its return for the assessment year under reference that is 1973-74. the income-tax officer while framing assessment for the assessment year under reference held that the amount of rs. 66,066 which the assessee had received in s. y. ..... 66,066 received in s. y. 2028, represented the assessee's income earned in s. y. 2028. the income-tax officer, therefore, brought to tax the entire amount of rs. 1,32,132 for the assessment year under reference. 6. the assessee carried the matter in appeal ..... 2027, was merely an advance towards expected profits and, therefore, it did not constitute the assessee's income in s. y. 2027. the income-tax officer was of the view that rs. 66,066 which the assessee had received in s. y. 2027 and the four amounts totaling rs. ..... assessee in its return for the assessment year 1972-73. the assessment for the assessment year 1972-73. was completed by the income-tax officer on september 25, 1973, assessing the assessee's total income at rs. 61,366 after allowing,, deduction of business expenses incurred during s. y. 2027. 5. the assessee received from .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-29-1988
Reported in : 188ITR511(Bom)
..... , therefore, claimed that it was entitled to a refund of rs. 1,95,479 on which interest was payable to it under the provisions of section 214 of the income-tax act, 1961. the income-tax officer deducted from the gross demand of rs. 2,46,31,614 the aforesaid amount of rs. 2,08,34,995, arrived at the net demand of rs. 37 ..... of double taxation between india and pakistan  16 itr 4. this agreement was entered into, inter alia, in exercise of the powers conferred by section 49aa of the indian income-tax act, 1922. by a notification issued by the government of india on december 10, 1947, the agreement was required to be given effect to in india. what is relevant therein for ..... the period of one year or any longer period allowed by the income-tax officer, the uncollected portion of the demand will be adjusted against the abatement allowable under this agreement; if no such certificate is produced, the abatement shall cease to be operative ..... dominion shall make a demand without allowing the abatement, but shall hold in abeyance for a period of one year (or such longer period as may be allowed by the income-tax officer in his discretion) the collection of a portion of the demand equal to the estimated abatement. if the assessee produces a certificate of assessment in the other dominion within .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-22-1988
Reported in : 181ITR84(Bom); 1989MhLJ501
..... the department, that the tribunal did not appreciate the purport and the scope of section 91(1) of the income-tax act, 1961, correctly. the plain meaning of the provision was stated to be that the double income-tax relief was in respect of the foreign income and the provisions for not treating the assessees as in default under section 220(7) were also in respect ..... as exclusively pertaining to the tax due in respect of the foreign income so that the provision for not treating the assessee as in default under section 220(7) would ..... of portuguese east africa prohibited the remittance of money to india and that the income-tax officer was bound not to treat the assessee as in default under section 220(7) of the income-tax act, 1961, in respect of that part of the tax which was due in respect of the income earned there until such a prohibition was removed. the question that arose for ..... consideration before the departmental authorities as well as the tribunal was whether the double income-tax relief allowed to the assessees under section 91 of the income-tax act was to be treated .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-30-1988
Reported in : (1989)75CTR(Bom)124; 177ITR222(Bom)
..... purpose of making payment of income-tax. however, this provision remained on the statute book only for a period of ten years and was deleted with effect ..... the case, the tribunal was right in law in holding that interest of rs. 15,237 for delayed payment of income-tax is a deductible expenditure in computing the profits and gains within the meaning of sections 28 and 37 of the income-tax act, 1961 ?'2. the assessee is a private limited company. the proceedings relate to the assessment year 1972-73. the business ..... of commercial practice and accountancy principle and if those were applied, the assessee would be entitled to the deduction under section 28 and if not, under section 37 of the income-tax act, 1961. the tribunal also held that the two decisions relied upon by the appellate assistant commissioner, viz., bai bhuriben lallubhai v ..... requested the department itself to allow it to pay the taxes in installments and pay interest to the department for allowing it to do so. having regard to the hardship sometimes caused to assessees in this regard, he pointed out that section 80v was introduced in the income-tax act in the year 1976, providing for allowance of interest on sums borrowed for the .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-29-1988
Reported in : (1988)74CTR(Bom)20; 176ITR407(Bom)
..... or production of articles within the meaning of section 84(2)(iii) and hence was entitled to relief under section 84(1) of the income-tax act, 1961. that question was answered in the affirmative and in favour of the assessee. that decision, however, does not afford any real assistance ..... limited company engaged in construction work and executing building repairs. it also undertakes painting jobs. the question referred to us by the income-tax appellate tribunal under section 256(1) of the income-tax act, 1961, reads as under :'whether, on the facts and in the circumstances of the case, the assessee-company was an ..... industrial company ?'2. our attention was drawn by shri patil, appearing for the respondent-assessee, to a decision given in the assessee's own case and reported in cit v. ..... and answered the question accordingly in he negative and against the assessee.8. the delhi high court had occasion to consider a similar question in cit v. minocha brothers p. ltd. : 160itr134(delhi) . the assessee before the delhi high court was a private limited company engaged in ..... as an industrial company.6. shri patil, appearing for the assessee, drew our attention to another decision reported in the very same volume of itr in cit v. pressure piling co. (india) p. ltd. : 126itr333(bom) . the point considered in the said decision was slightly different and .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-05-1988
Reported in : 188ITR98(Bom)
..... question arises :'whether the provisions of section 155(6) have been correctly construed by the tribunal ?'the relevant portion of section 155(6) of the income-tax act reads thus :'where any such debt or part of debt as is referred to in clause (vii) of sub-section (1) of section 36 ..... of the provisions of section 155(6) of the income-tax act, 1961, is called for in this reference at the instance of the revenue.2. for the assessment year 1964-65, the assessee claimed a bad debt of rs. 10,305. the income-tax officer disallowed the claim on the ground that the debt ..... period of four previews years immediately preceding the previous year in which the debt or part is written off, the income-tax officer may, notwithstanding anything contained in this act, allow such debt or part as a deduction for such earlier previous year, if the assessee accepts such a finding ..... the appellate assistant commissioner upon section 155(6). the submission on behalf of the revenue was that, as the assessee had not accepted the income-tax officer's finding in regard to the year in which the debt had become bad at the stage of the assessment proceedings for the assessment ..... of the income-tax officer, and recompute the total income of the assessee for such earlier previous year and make the necessary amendment.'5. dr. balasubramanian, learned counsel for the revenue, stressed the words '.... the income-tax .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-16-1988
Reported in : (1989)75CTR(Bom)88; 185ITR532(Bom)
..... the case, the tribunal was right in holding that the excess over 25% of the gross income or rs. 10,000, whichever was higher, was to be invested in government securities in view of section 11 of the income-tax act, 1961, and not the entire amount of accumulation ?'2. we are concerned with the assessment ..... years 1966-67 and 1967-68. for the assessment year 1967-68, the assessees claimed refund to tax deducted at source. the income-tax officer did not dispute that the assessees, as ..... s.p. bharucha, j.1. this reference under section 256(1) of the income-tax act, 1961, calls for an interpretation of section 11 thereof as it read at the relevant time. the question that is referred reads thus ..... construction of clause (a) of sub-section (1) of section 11 and clause (b) of sub-section (2) thereof, came to the conclusion that the income-tax officer and the appellate assistant commissioner were in error and allowed the appeals.5. the relevant portion of section 11, as they read at the relevant time, are ..... that there was a similar shortfall of investment in government securities in the assessment year 1966-67 also, the income-tax officer subjected to tax the sum of rs. 22,985, being the difference between the unspent income and the permissible accumulation of rs. 10,000.4. the assessees' appeals to the appellate assistant commissioner were rejected .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-08-1988
Reported in : (1988)72CTR(Bom)44; 176ITR253(Bom)
..... harassment and severe hardship to the petitioners and this is a fit case where intervention is called for under article 226.15. it was submitted by mr. bhatia that the income-tax act is a complete code by itself. no intervention, therefore, is warranted under article 226. he has relied upon a decision of the karnataka high court in the case of ..... ]168itr96(kar) . this decision, however, does not support his contention. in that case, the petitioner had claimed exemption under section 10(20a) of the income-tax act, 1961. the claim for exemption was rejected by the commissioner. the petitioners contended that having regard to the view expressed by the commissioner, it would be futile to appear ..... to give these particulars which would require them to re-examine their accounts for the last several years. ultimately, the income-tax officer, by his letter dated january 25, 1988, made a reference to the inspecting assistant commissioner under section 144a of the income-tax act, 1961, regarding the taxability of clients' deposits. by his order dated march 23, 1988, the inspecting assistant commissioner ..... determine correctly all facts relating to such deposits he may make a fair estimate of income. these directions are challenged in the present writ petition.5. under section 145 of the income-tax act, 1961, income chargeable under the head 'profits and gains of business or profession' or 'income from other sources' shall be computed in accordance with the method of accounting regularly employed .....Tag this Judgment!
Court : Karnataka
Decided on : Aug-02-1988
Reported in : (1988)73CTR(Kar)81; 174ITR616(KAR); 174ITR616(Karn); 1988(3)KarLJ146; 41TAXMAN161(Kar)
..... this lesser amount alone was taxable. 12. income-tax is a levy on income. though the income-tax act takes into account two points of time at which the liability to tax is attracted, viz., the accrual of the income or its receipt, yet the substance of the matter is the income if income does not result at all, there cannot be a tax, even though in book-keeping, an entry ..... s.a. hakeem, j.1. in these references under section 256(1) of the income-tax act, 1961, the income-tax appellate tribunal, has referred the following common questions of law for the opinion of this court : '1. whether, on the facts and in the circumstances of the case, the income-tax appellate tribunal is right in law in holding that the interest of rs. 4,15,343 ..... is made about a 'hypothetical income', which does not ..... materialise. where income has, in .....Tag this Judgment!