Court : Chennai
Decided on : Jun-22-1988
Reported in : (1988)72CTR(Mad)99; 174ITR697(Mad)
..... sub-clause (ii), in the case of assets acquired by purchase not entitled to depreciation, their actual cost to the assessee is to be taken. under section 32 of the income-tax act, before an assessee can become entitled to claim depreciation, it must be shown that the building, machinery, plant or furniture owned by the assessee has been used for the purpose ..... holding that the value of work-in-progress, stores and raw materials in transit should be taken as capital for the grant of relief under section 80j of the income-tax act, 1961 ?' 4. in cit v. indian oxygen ltd. : 113itr109(cal) , the calcutta high court has observed as follows (p. 119) : 'only in the computation of the value of the assets, ..... ltd. : 115itr879(guj) , the assessee purchased machinery in the previous year relevant to the assessment year 1969-70, which was not installed. the income-tax officer disallowed the claim for relief under section 80j of the income-tax act, 1961, on the ground that the machinery was not yet installed and, therefore, was not in use and the amount of capital was not employed ..... . ratnavel pandian, offg. c.j. 1. the assessee, viz., m/s. southern agrifurane industries limited, madras, in its computation of income for the assessment year 1976-77, claimed relief under section 80j of the income-tax act, 1961 (hereinafter referred to as 'the act'). the income-tax officer, however, while accepting the claim of the assessee, did not accept the quantum of relief claimed by the assessee .....Tag this Judgment!
Court : Chennai
Decided on : Feb-15-1988
Reported in : (1988)68CTR(Mad)125; 171ITR366(Mad)
..... as follows (p. 966) : 'now, the question is whether orders levying interest under sub-section (8) of section 139 and under section 215 are applicable under section 246 of the income-tax act. clause (c) of section 246 provides an appeal against an order where the assessee denies his liability to be assessed under the ..... to a direction by this court under section 256(2) of the income-tax act. 2. in an appeal against the assessment, the assessee who is a registered firm contended that the income derived from the production of salt should be exempted under section 10(1) as it would amount to agricultural income. that contention was negatived by all the authorities including the tribunal. 3 ..... the date extended by the income-tax officer under sub-section (1) or sub-section (2) of section 139 of act, does not file the return within the extended date, but files the same before the end of the four assessment years concerned; and (2) the ..... sub-section (4) of section 139 is not confined only to the extension of time granted by the income-tax officer, but also to the time originally fixed for the filing of returns under sub-sections (1) and (2) of section 139 of the act. there may be two types of cases in the late filing of returns, namely, (1) the assessee, after .....Tag this Judgment!
Court : Chennai
Decided on : Mar-11-1988
Reported in : (1988)69CTR(Mad)49; 174ITR11(Mad)
..... and only the balance of rs. 1,050 could be considered as deemed dividend under section 2(6a)(e) of the indian income-tax act of 1922. rejecting that contention, the income-tax officer assessed the whole amount of rs. 25,107 as deemed dividend under section 2(6a)(e) by taking into consideration also ..... of learned counsel for the revenue that it is an 'exchange' and, therefore, a 'transfer' within the meaning of section 2(47) of the income-tax act cannot be accepted. 20. in the result, we hold that the surplus amount obtained by the assessee on account of devaluation of the rupee is not a ..... connected with any business. such a conversion, in our opinion, can never be considered as exchange within the meaning of section 2(47) of the income-tax act, 1961.' 18. we are entirely in agreement with the above reasoning of the karnataka high court. learned counsel for the revenue draws our attention to ..... aggrieved thereby. in this case, the revenue did not apply for a reference in the prescribed form as required by section 256(1) of the income-tax act. as pointed out by learned counsel for the assessee, there was not even an oral request at the time when the application for reference filed ..... the tribunal was right in holding that the accumulated profits will not include the current profits for the purpose of section 2(6a)(e) of the income-tax act. at the assessee's request, the tribunal included in the same reference the further question whether the tribunal was right in holding that rs. .....Tag this Judgment!
Court : Chennai
Decided on : Dec-09-1988
Reported in : (1989)75CTR(Mad)209; 177ITR88(Mad)
..... pointed out that the petitioner is seeking revision of assessments under section 154 of the income-tax act for the year 1966-67 to 1971-72. the time limit specified under section 154 is four years from the date of the order sought to be revised. 13. therefore ..... commissioner's finding. it was stated that the assessments for 1970-71 and 1971-72 could not be rectified under section 154 of the income-tax act earlier, in view of the fact that until the appellate tribunal passed the order on july 31, 1978 there was no loss to be carried forward. learned standing counsel further ..... assessments for the years 1970-71 and 1971-72 could not be revised. the carry forward of the loss can be made only through action under section 154 of the income-tax act which is barred by limitation in this case. according to learned standing counsel, there is no failure on the part of the department to give affect to the appellate assistant ..... assessment year 1963-64 up to the assessment year 1971-72 and that it was the statutory duty of the respondent to make suitable rectification under section 154 of the income-tax act. the respondent, in his letter dated february 26, 1979, informed the petitioner that the revision of the assessment for the assessment years 1970-71 and 1971-72 could not be .....Tag this Judgment!
Court : Chennai
Decided on : Mar-11-1988
Reported in : (1988)69CTR(Mad)117
..... to section 11 of the income-tax act. if a trust is covered by the provisions of section 11 of the income-tax act, the income thereof will not be exempt from liability to tax under the circumstances set out in section 13 of the income-tax act. the relevant portion of section 13 of the income-tax act reads as follows : '13 ..... in the present case. in that very case, the privy council held that the test of 'general public utility' prescribed under the indian income-tax act was applicable not only to trusts in the english sense but also the properties held under trust 'or other legal obligation' including muslim wakfs ..... the contention that a purpose which is charitable under the personal law of the parties has to be accepted as such for the purposes of the income-tax act, learned counsel relies upon the observations of the privy council in the trustees of the tribune, in re  7 itr 415. in ..... purposes and that it was not a business conducted on behalf of a religious or charitable institution. while construing section 4 (3) (i) of the income-tax act, the supreme court made the following observation, on which learned counsel for the assessee places strong reliance (p. 183) : 'in our view, the ..... the circumstances of the case, the assessee is entitled to exemption under section 11 read with section 13(1)(c)(ii), first proviso, of the income-tax act, 1961 ?' 5. mr. ramamani, learned counsel for the assessee, contended that on a fair reading of the entire document, it was clear that .....Tag this Judgment!
Court : Chennai
Decided on : Jan-13-1988
Reported in : (1988)67CTR(Mad)289; 170ITR238(Mad)
..... . w.p. no. 162 of 1983. - this writ petition is allowed and the notices and the reassessment made under section 147(b) of the income-tax act, 1961, and the consequent notices of demand for the assessment years 1980-81 and 1981-82 dated october 29, 1982, after derecognising the partial partition are ..... : w.ps. nos. 992 and 993 of 1981. - these writ petitions are allowed and the notice of demand made under section 156 of the income-tax act. 1961, on the footing that the claim for partial partition is not allowed as the partial partition took place after december 31, 1978, is quashed. ..... december 31, 1978, is made for the first time in the assessment year 1980-81. (7) the provisions of section 171(9) of the income-tax act, 1961, will not fasten any liability in respect of a partial partition which has already been recognised in the assessment year 1979-80, and a finding ..... invalidity on the ground of discrimination and arbitrariness and must, therefore, be declared as void. 102. we accordingly hold that section 171(9) of the income-tax act, 1961, suffers from legislative incompetence and is also void on the ground of violation of article 14 of the constitution of india. 103. for the purpose ..... 20. section 171, as it stood before the introduction of sub-section (9), was basically analogous to the provisions of section 25a of the indian income-tax act, 1922. section 171 has been construed by two decisions of the supreme court to which we shall make a reference. since some argument has been .....Tag this Judgment!
Court : Chennai
Decided on : Mar-01-1988
Reported in : (1988)69CTR(Mad)135; 173ITR311(Mad)
..... price of raw material and that the assessee was, therefore entitled to claim them as business expenditure under section 10(2) (xii) of the indian income-tax act, 1922. it is this decision which, according to learned counsel, concludes the controversy in the present case. 24. firstly, we must refer to ..... assessee to the owners of land was capital expenditure and was, therefore, not liable for deduction under section 10(2) (xii) of the indian income-tax act, 1922. on a consideration of the agreements, however, the full bench of the lahore high court held that the main object of the agreements ..... with the details of that decision, but suffice it to say that this bench considered the word 'transfer' defined in section 2(47) of the income-tax act, 1961, as including the granting of a lease. 8. mr. rajan, on behalf of the revenue, has contended that the amount of rs. ..... in the relevant years as expenditure under section 12(2) (xv) of the hyderabad income-tax act. these amounts were held as representing capital expenditure by the income-tax officer. the whole sum was paid in instalments. the income-tax appellate tribunal, however, held that the payments were similar to the royalties and dead rent ..... question reproduced above has been referred to this court. 7. it has been vehemently argued on behalf of the assessee before us that the income-tax authority and the tribunal were in error in holding that the lease in question created an interest in immovable property. according to learned counsel, .....Tag this Judgment!
Court : Chennai
Decided on : Nov-22-1988
Reported in : (1989)75CTR(Mad)1; 177ITR307(Mad)
..... mp) , wherein it was held (headnote): 'it is well-settled that to confer jurisdiction on the income-tax officer under section 147(a) of the income-tax act, 1961, two conditions are to be satisfied: (i) the income-tax officer must have reason to believe that income, profits or gains chargeable to income-tax have escaped assessment, and (ii) he must also have reason to believe that such escapement has ..... union of india : 158itr824(delhi) , it has been held (headnote): 'the jurisdiction to reopen an assessment is circumscribed by the conditions laid down in section 147(a) of the income-tax act, 1961. certain facts have to exist to show that the assessment can be reopened. the existence of such reasons and a direct nexus between those reasons and the alleged evasion ..... and cash vouchers in discharge of the liability of rs. 10,30,000, which, according to the assessee, was furnished to the income-tax officer. thereafter, the income-tax officer issued notice under section 147(a) read with section 148 of the income-tax act, 1961, for reopening the assessment of the assessee by relying on the affidavit of the vendor in which he had stated he ..... actual proceedings are taken, it is always open to the petitioner to put forward his objections and convince the second respondent who issued the notice under section 147 of the income-tax act that there is no room for making a revised assessment as proposed by him and that he, having decided earlier the status, cannot change his opinion and make a .....Tag this Judgment!
Court : Guwahati
Decided on : Aug-18-1988
..... case, what are the constraints were stated as limitations. there should be finality and certainty in revenue proceedings, it was emphasised, like all litigations including litigation arising out of the income-tax act. a decision on a question cannot be reopened unless that decision is arbitrary or perverse. if no fresh facts are there, the earlier decision should be followed. finally, it was ..... 1964-65, the loan paid to the spouse in the relevant period was not accepted in view of the tribunal's order no. 4610 (gau) of 1971-72 under the income-tax act, 1961, for the assessment years 1963-64, 1964-65, 1965-66, 1966-67, 1967-68 for the assessee's spouse was not accepted as a debtor in the assessment orders ..... and683 (gau) of 1975-76 for the assessment years 1972-73 and 1973-74 sustaining the application of section 64(1)(iii) of the income-tax act, 1961, which is identical to section 4(1)(a)(i) of the wealth-tax act, 1957, and whether the decision based on a contrary view taken by the tribunal in the case is tenable in law ?' 2. the ..... for 1965-66, 1966-67 and 1967-68 in the appeals and further appeals under the income-tax act. the references to this court are awaiting decision in this reference. 5. the appellate authority confirmed the order of assessment under the wealth .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-01-1988
Reported in : (1988)90BOMLR692; (1989)75CTR(Bom)67; 177ITR128(Bom)
..... tribunal's order. we shall make reference to those judgments also to the extent necessary in the course of the judgment.8. section 41(1) of the income-tax act, 1961, reads thus:'41(1) where an allowance or deduction has been made in the assessment for any year in respect of loss, expenditure or trading ..... the assessee was entitled to deduct the expenditure of rs. 2,770 for the maintenance of the guest house under section v of the income-tax act, 1961, for the assessment year 1969-70 ?(3) whether, on the facts and in the circumstances of the case, the tribunal erred in law in ..... the tribunal was justified in allowing the deduction for expenditure of rs. 4,200 being the rent of the guest house, under section 30 of the income-tax act, 1961, for the assessment year 1969-70 ?(2) whether, on the facts and in the circumstances of the case, the tribunal was right in holding that ..... the assessee was entitled to deduct the expenditure of rs. 6,060 for the maintenance of the guest house under section 37(3) of the income-tax act, 1961, for the assessment year 1968-69 ?for the assessment year 1969-70:(1) whether, on the facts and in the circumstances of the case, ..... case, the tribunal was justified in allowing the deduction for expenditure of rs. 8,400 being the rent of the guest house, under section 30 of the income-tax act, 1961, for the assessment year 1968-69 ?(2) whether, on the facts and in the circumstances of the case, the tribunal was right in holding that .....Tag this Judgment!