Court : Chennai
Decided on : Jan-12-1989
Reported in : (1989)75CTR(Mad)139; 176ITR238(Mad)
..... accounting year relevant to the assessment year 1969-70. 2. at the instant of the assessee, under section 256(2) of the income-tax act, 1961 (hereinafter referred to as 'act'), the tribunal has referred the following common questions of law for the opinion of this court : '(1) whether, on the facts ..... authorities had allowed rs. 500 per month as reasonable remuneration for the services of sri srinivasa appa rao and had disallowed the balance and also the income-tax rs. 133 included under the salary. we are not persuaded to hold that the disallowance made by the authorities is, in any manner, unreasonable ..... 30,036 on account of waiver of interest. on the ground that the business of the assessee was stopped, this claim was negatived and the income-tax officer was also of the view that the interest accrued on parties' accounts could only be capital loss. while disallowing this amount, the fact ..... his customers and also interest due from them. inasmuch as the position continued to be the same for the assessment years in question, the income-tax officer took the view that the loss arising in the provcess of winding up should be appropriately dealt with under the head 'other sources' ..... accounts submitted by the assessee did not make any fresh advance and no hire-purchase transaction were also entered into in the relevant years. the income-tax officer also found that during the assessment year 1967-68, the assessee had almost stopped his business and was merely engaged in realising the .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-25-1989
Reported in : 183ITR429(Bom)
..... dividend distributed by the assessee-company during the previous year was much less than the statutory percentage, the income-tax officer, after giving the assessee an opportunity, imposed additional tax under section 104(4) of the income-tax act. the assessee's main contention was that it was manufacturing or processing goods in its hotel and, ..... of the case, the assessee is engaged in 'manufacture or processing of goods within the meaning of section 104(4) of the income-tax act, 1961?'2. the assessee-company runs a hotel. the proceedings relate to its assessment year 1967-68. the assessment was made under section 143 ..... as such, its case was covered by the provisions of section 104(4) of the act as stood at the relevant time ..... . there is no dispute that if the assessee's case is covered by the provisions of section 104(4) of the act ..... , it will not be liable to the additional tax under section 104. it is in this context that the question arose whether the assessee's case was or was not .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-08-1989
Reported in : (1990)92BOMLR31; 185ITR6(Bom)
..... though they were not in accord with the literal interpretation of section 52 and departed or deviated therefrom. that circulars of central board of direct taxes issued under section 119 and analogous provisions of the earlier income-tax acts were binding upon the officials of the revenue had been decided by the supreme court's judgments in navnit lal c. javeri v. k. k ..... meaning other than that set out in sections 2(10) and 2(24), respectively. whether the rate is set out in the finance acts or in the income-tax acts itself does not appear to us at all relevant in the context of the computation of the deduction under section 85a.9. mr. dalvi submitted that, so interpreted, there was ..... s.p. bharucha j.1. this is a reference made at the instance of the revenue, under the provisions of section 256(1) of the income-tax act, 1961. it raises, in regard to the assessment year 1967-68, the following question :'whether, on the facts and in the circumstances of the case, the tribunal was right in ..... in the generation or distribution of electricity or construction, manufacture or production of any of the articles or things specified in the fifth schedule to the income-tax act, the tax on the dividends is limited to 15 per cent. thereof. in all other cases, the tax on inter-corporate dividends received from any domestic company is limited to 25 per cent. thereof. the finance .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-22-1989
Reported in : (1990)92BOMLR66; 181ITR22(Bom)
..... the facts and in the circumstances of the case, the assessment of the assessee for the assessment year 1962-63 having been validly reopened under section 147 of the income-tax act, 1961, the income-tax officer could set off the unabsorbed depreciation of past years in such reassessment when the omission of effect the set off in the original assessment was not due to ..... assessee during the original assessment proceedings inasmuch as terminal adjustment had not been made in regard to initial depreciation allowed in the earlier years. the income-tax officer reopened the assessment proceedings under section 147(a) of the income-tax act, 1961, and issued and served a notice under section 148 on the assessee. in response thereto, the assessee filed a revised depreciation statement ..... ]50itr450(ap) , to which one of us was a party (p. 460) : '...when once an assessment is reopened under section 34, the income-tax officer process do novo under the relevant sections of the income-tax act, i.e., he issues notice under section 22(2) and proceeds to assess the assessee. he has to follow the same procedure as in the case of ..... and in the circumstances of the case, it was open to the income-tax officer in the reassessment proceedings under section 147(a) of the income-tax act, 1961, to recompute the assessable income of the assessee at 'nil' and thereby disentitle it to the income-tax rebate when, in the original assessment, the assessable income had been computed at rs. 1,24,929 and on that basis .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-25-1989
Reported in : 183ITR327(Bom)
..... , the assessee paid an amount of rs. 28,395 to the revenue by way of interest levied for belated filing of its return as required by section 139 of the income-tax act, 1961. before the appellate assistant commissioner, the assessee claimed that it was entitled to a deduction in that behalf. the plea was turned down by the appellate assistant commissioner and ..... case, the sum of rs. 2,10,632 being receipt on the transfer of import entitlements was a casual and non-recurring receipt and hence exempt from tax under section 10(3) of the income-tax act, 1961? (3) alternatively, whether, on the facts an in the circumstances of the case, the said sum of rs. 2,10,632 was capital gains and hence ..... income? (5) alternatively, whether, on the facts and in the circumstances of the case, the said sum of rs ..... liable to be taxed as such? (4) whether, on the facts and in the circumstances of the case, the sum of rs. 28,395, being interest paid to the income-tax department under section 139 of the income-tax act, 1961, for late filing of the returns of income, was allowable as a deduction from the assessee's total .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-26-1989
Reported in : 181ITR502(Bom)
..... rs. 61,000 received as consideration for goodwill by the assessee should not be treated as capital gains for purposes of section 45 of the income-tax act, 1961 ?'2. according to dr. balasubramanian, learned counsel for the department, the question is not covered by the supreme court decision in the case of ..... took the value of the goodwill at nil, he did so by applying the provisions of section 49(1)(iii)(b) of the income-tax act, 1961. the assessee, thus, got the shop which in itself had an element of goodwill and for high there was a cost of acquisition. referring ..... dissolution of the partnership firm cost him something. in the absence of necessary material, it is also not possible to accept dr. balasubramanian's submission that the income-tax officer had taken the value of the goodwill at nil not because it had cost nothing to the assessee, being self-generated, but that the same was taken ..... of his business on january 21, 1971, for rs. 61,000, dr. balasubramanian contended that the surplus arising on the sale of the goodwill was taxable as income under the head 'capital gains'.3. the facts stated in the statement of the case are :'the reference relates to the assessment year 1972-73, the previous year ..... cit v. b. c. srinivasa setty : 128itr294(sc) as the assessee in this case had got the goodwill on dissolution of the firm in which .....Tag this Judgment!
Court : Mumbai
Decided on : Jun-30-1989
Reported in : 180ITR609(Bom)
..... sale was in 1974 as is evident from the letter addressed by the official liquidator. the principle underlying section 178 of the income-tax act is that the claim of the income-tax department is to be set apart and it is only on setting it apart that other claims are to be satisfied. ..... followed, we should not exercise the extraordinary powers. the factual position, as it stands, is that the remedy under section 256(2) of the income-tax act was available in 1980. the present petition came to be filed in 1980. it was admitted after notice to the other party. now, more ..... samiti v. ito : 158itr742(bom) repelled the arguments that the extraordinary jurisdiction should not be invoked when the alternative remedy under the income-tax act is available. this court observed that a pure question of law having an impact on several public bodies is involved and the petition are already ..... been scrutinised by three courts below and a particular finding of fact has been recorded. he also urged before us that the remedies permitted under the income-tax act have not been followed, though available, and, therefore, this court should not exercise its extraordinary jurisdiction. as a matter of fact, regarding the ..... on satisfying that liability, nothing will remain with the liquidator. we have already commented on the liability flowing from section 41(2) of the income-tax act. we have already held that it is not a contingent liability but it is a specific liability accruing on the sale of the assets of .....Tag this Judgment!
Court : Mumbai
Decided on : Mar-21-1989
Reported in : (1989)79CTR(Bom)11; 185ITR143(Bom)
..... year 1981-82, rs. 31,200 has escaped assessment. hence, the assessments for the years 1979-80, 1980-81 and 1981-82 are reopened under 'section 147(b)' of the income-tax act, 1961. below this appear once again the initials with the date december 31, 1982. below this again is the endorsement 'issue notice under section 148 for the assessment years 1979 ..... dated december 31, 1982. issued to the petitioner by the first respondent under section 148 of the income-tax act proposing to reopen her income-tax assessments for the assessment years 1979-80, 1980-81 and 1981-82, because he had reason to believe that her income chargeable to tax had escaped assessment within the meaning of section 147.2. the petitioner was born in tanzania and ..... the petitioner's savings account on the ground that it was an unexplained receipt. on december 7, 1982, an order was made under section 132(11) of the act by the commissioner of income-tax (investigation) which accepted the petitioner's explanation in respect of the seized articles as also the sum of rs. 3,40,000. the order dated april 14, 1982 ..... petitioner details of outstanding proceedings. on october 8, 1982, the petitioner furnished the details of pending proceedings before the income-tax officer/wealth-tax officer, assessment circle and survey circle.7. on december 21, 1982, the petitioner's assessment to income-tax by the income-tax officer/wealth-tax officer, survey circle, for the assessment year 1982-83 was completed and it was found that she had a .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-27-1989
Reported in : 184ITR7(Bom)
..... come to the conclusion that is not meaning which can be adopted for the expression 'in cash or in kind', in section 42(1) of the income-tax act.'46. however, the observations made in the calcutta decision in national and grindlays bank ltd.'s case : 72itr121(cal) , about the concept ..... it will be illegal and unjustified in our view to extend the meaning of the expression 'money in kind' in section 42(1) of the income-tax act beyond these accredited uses of money accepted, used and recognised as such in the commercial world and in the usual transactions. we, therefore, hold ..... , where it was held that even if this court doubted a judgment, for the sake of uniformity among the high courts in the matter of the income-tax act, this court would follow another high court's decision if there was no other high court decision to the contrary.41. dr. balasubramanian, on the other ..... indian company at interest, that the assessee-company had lent money to the indian company within the meaning of section 9(1)(i) of the income-tax act. shri dastur's submission that department's case. as noted by the tribunal at page 115 of the paper book, merely was :'... the purchases ..... is agreed, can be further narrowed down to the two words used therein, namely, 'money lent'. the expression 'money lent' is admittedly not defined in the income-tax act, 1961. therefore, we have to first as certain the plain dictionary meaning of the words 'money' and 'lent'. according to shorter oxford english dictionary, 'money .....Tag this Judgment!
Court : Karnataka
Decided on : Jun-03-1989
Reported in : (1989)78CTR(Kar)141; 180ITR464(KAR); 180ITR464(Karn); 1989(2)KarLJ424
..... ) and the gujarat high court in ashaland corporation's case : 133itr55(guj) on the interpretation of the word 'owner' used in section 9 of the indian income-tax act, 1922, and section 22 of the income-tax act, 1961, is correct. 17. on a careful consideration of the matter, i am of the view that the ratio in kuthiala's case : 82itr570(sc) is ..... supreme court  82 itr 570, itself had the occasion to consider the question with reference to the provisions of section 9 of the indian income-tax act, 1922 (the corresponding section of the income-tax act, 1961, being section 22) in cit v. d. l. f. housing construction p. ltd. : 128itr773(delhi) . this was, however, a case where the seller remained in possession even after ..... view of the ratio in kuthiala's case : 82itr570(sc) , a person who has parted with possession is not the owner for purposes of section 22 of the income-tax act. that decision is cit v. sahney steel and press works (p.) ltd. : 168itr811(ap) . there is no consideration of the decisions of the bombay, delhi and calcutta high courts referred to ..... supreme court held that in such circumstances the property continues to belong to the vendor equally holds goods for the purpose of interpretation of section 22 of the income-tax act. that provision reads : '22. income from house property. - the annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of .....Tag this Judgment!