Court : Guwahati
Decided on : Mar-21-2001
..... has been paid by the assessee exclusively and for the purpose of business of the assessee and hence such expenditure is permissible to be considered under section 37 of the income tax act, 1961. 7. dr. ashok saraf, learned counsel appearing for the assessee submits that the issue are no more res integra. counsel has referred to the following decisions- (a) in itr ..... of settlement wholly and exclusively for the purpose of business and was, therefore, allowable as a business deduction under section 36(l)(ii) of the income tax act, 1961. (b) in itr (1997) 227 p.211 (commissioner of income tax v. d mohamed ismail,) the madras high court had held that the customary bonus paid to the employees as a matter of practice satisfied the ..... , the ex-gratia payment made by the assessee company to the labourers and staffs for the period under reference does not come within the mischief of payment of bonus act, 1965. section 37 of the income tax act, allowed deductions expenses wholly and exclusively for the purpose of the business or provision other than the expenditure prescribed in sections 30 to 36 of the ..... court was examining as to whether the payment made over and above the statutory maximum made by the employers to the labourers pursuant to an agreement under the industrial dispute act was deductible under section 37 of the income tax act, 1961 and held that such payment for the purpose of commercial expediency and business or profession is allowable under section 37 of the .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Apr-11-2001
Reported in : (2001)169CTR(MP)351; 249ITR719(MP); 2001(5)MPHT72
..... the assessee. the assessee claimed depreciation at 40 per cent. on the trucks which was allowed by the income-tax officer, but subsequently the commissioner of income-tax exercising his power under section 263 of the income-tax act came to the conclusion thatthe rate of depreciation at 40 per cent. is allowable only when the assessee was ..... that mainly the truck is used for the assessee's own business. the decision of this court in the case of income-tax commissioner v. anupchnnd and co. : 239itr466(mp) where this court considered the question as under (page 469) : 'we have to interpret the ..... this finding has not been assailed before us that the truck is used for the assessee's own business. also the finding recorded by the income-tax appellate tribunal is that the truck is mainly used for the assessee's own business and from the statement filed by the appellant it is clear ..... business of running them on hire to be 40 per cent. it isalso urged in the appeal that the decision of this court in the case of income-tax commissioner v. anupchand and co. : 239itr466(mp) is not applicable and is distinguishable on the facts. 2. on the facts it has ..... that the truck was used mainly for his own business. aggrieved by the order of the assessing officer, an appeal was preferred before the commissioner of income-tax, jabalpur, assailing the disallowance. the appeal was on the ground that the truck has been used by the appellant by giving it on hire and .....Tag this Judgment!
Court : Delhi
Decided on : Aug-16-2001
Reported in : 252ITR213(Delhi)
..... . 1. pursuant to the directions given by this court, the following questions have been referred at the instance of the assessed under section 256(2) of the income-tax act, 1961 (in short 'the act'), by the income-tax appellate tribunal (in short 'the tribunal'), for the opinion of this court : '1. whether, on the facts and in the circumstances of the case, the tribunal was ..... heard learned counsel for the revenue. there has been no appearance on behalf of the assessed despite service of notice. learned counsel for the revenue submitted that the income-tax officer, the commissioner of income-tax (appeals) and the tribunal have analysed the factual position to hold that there was no goodwill. the conclusions arefactual giving rise to no question of law. the tribunal ..... the tribunal. after considering the relevant submissions, the tribunal came to hold that there was no goodwill generated and no fault was found in the action of the income-tax officer and the commissioner of income-tax (appeals) in holding that there was no goodwill. the appeal of the assessed was dismissed. a prayer for reference under section 256(1) was also rejected. however ..... that if those two amounts were considered, the net result would be a loss and hence there was no super profit earned by the firm. on the aforesaid basis, the income-tax officer negatived the claim of the assessed and subjected the difference between the book value of the assets and the sale price realised to capital gains. the matter was carried .....Tag this Judgment!
Court : Delhi
Decided on : Dec-21-2001
Reported in : 96(2002)DLT322; 256ITR42(Delhi)
s.b. sinha, c.j. 1. the following questions have been referred to this court for its opinion by theincome tax appellate tribunal in terms of section 256(1) of the income tax act, 1961: '1. whether on the facts and in the circumstances ofthe case, the tribunal is correct in law in holdingthat the sum of rs. 2.50 lakhs is not taxable ..... matter would have been different had,in consideration of the afore-mentioned transfer of technical know-how, the assessed wouldhave acquired equity shares in a new company. in commissioner of income-tax, bombaycity-i v. ciba of india ltd. (supra), what is know-how, has been considered by the apex courtin the following terms: 'counsel for the commissioner strongly pressed foracceptance ..... the first question was rightly answered infavor of the assessed. 9. the said decision was considered in some details by a division bench of thebombay high court in commissioner of income-tax, bombay city-i v. ralliwolf ltd. (supra). therein also, shares had been given in return for the drawings etc and confidentialtechnical information for the establishment of the factory and ..... for consideration as to whether a businessexpenditure would be a capital or revenue expenditure in jonas woodhead & sons (india)ltd. v. commissioner of income-tax : 224itr342(sc) wherein, upon consideration of empire jute co. ltd. v. cit and commissioner of income-tax,bombay city-i v. ciba of india ltd. (supra), it was held: 'it would thus appear that the courts have applieddifferent tests .....Tag this Judgment!
Court : Kerala
Decided on : Dec-21-2001
Reported in : 255ITR174(Ker)
..... referred to me to the provisions of section 132 as also sections 269a, 269b, 269c and 269f, etc., contained in chapter xxa of the income-tax act and submitted that the second respondent and his subordinates have not taken any action to find out the real undisclosed wealth of the petitioner. senior ..... . 2 to 4 pointing out the said facts, but the respondents have not taken any action against the fifth respondent under the provisions of the income-tax act.2. a counter affidavit is filed by the fifth respondent. it is stated therein that the petitioner was also having a jewellery shop by name ..... in various representations were enquired into and it was not found to be a fit case for action under section 132 of the income-tax act, 1961. it is also stated that the power to search and survey vested with the department cannot be misused simply on receipt of petition ..... his sons, sri o.k. pavithran, sri o.k. rajeevan and sri o.k. sumithran, are income-tax assessees and are filing their income-tax returns regularly, that the fifth respondent is an income-tax payer since 1983-84 onwards and the source of funds for starting the business and source of investment in ..... n. sukumaran nair, learned senior counsel appearing for the fifth respondent, submitted that the petitioner had been making representations before various authorities of the income-tax department only out of jealousy of the fifth respondent, who is none other than his first cousin. he also submits that the fifth respondent and .....Tag this Judgment!
Court : Kerala
Decided on : Oct-31-2001
Reported in : 256ITR252(Ker)
..... receipt of the appellate order of the tribunal by the commissioner of income-tax, madras, on january 17, 1994, who had ceased to have jurisdiction in the matter. under the proviso to section 256(1) of the income-tax act, the income-tax appellate tribunal does not have the power to condone delay of more ..... than 30 days in filing the reference application. therefore, the reference application filed by the commissioner of income-tax, cochin, was rejected by the tribunal by order dated ..... dated may 22, 1995, was only a mistake and the same was pointed out by the commissioner of income-tax, cochin, who wrongly conceded delay. the proviso to section 256(1) of the act does not empower the tribunal to condone the delay beyond 30 days. therefore, once the delay is beyond ..... by making addition of these two amounts as unexplained expenditure of the assessee. though an appeal was filed by the assessee before the commissioner of income-tax (appeals) the same was dismissed in so far as addition of these two amounts was concerned. in the further appeal before the tribunal, the ..... order dated may 22, 1995, either under section 254(2) of the act, or under its inherent power. on the other hand, the department's counsel contended that it was a mistake for the commissioner of income-tax, cochin, to have conceded that the date of receipt of the appellate order .....Tag this Judgment!
Court : Gujarat
Decided on : Sep-26-2001
Reported in : 254ITR625(Guj)
..... has held that the property cannot be owned by two persons, each one having independent and exclusive right over it. hence, for the purpose of secttion 9 of the indian income-tax act, 1922, the owner must be 'that person who can exercise the rights of the owner, not on behalf of the owner but in his own right'. therefore, in light of ..... , 1977. immovable properties which were part and parcel of the industrial undertaking were transferred under a duly executed registered document on february 2, 1978. in view of these facts, the income-tax officer was of the view that as the assessee was the legal owner of the property in question, till conveyance was duly registered, proportionate property ..... part of the industrial undertaking whose control and management vested with the vendee, there was no question of assessing the proportionate income from property in the hands of the assessee. the tribunal confirmed the view taken by the commissioner of income-tax (appeals) in the appeal of the revenue and, hence this reference.4. we have heard mr. akil qureshi, learned standing counsel ..... july 1, 1977 to february 2, 1978, should be assessed in the hands of the assessee. he accordingly brought to tax a sum of rs. 2,69,194 being the proportionate annual letting value for seven months.3. the commissioner of income-tax (appeals) came to the conclusion that the assessee-company was left with merely a technical or formal ownership of the .....Tag this Judgment!
Court : Rajasthan
Decided on : Apr-20-2001
Reported in : 254ITR677(Raj); 2003(1)WLN555
..... . 890 paid to the husband of the assessee by the firm in which she is a partner was not includible in her hands under section 64(1)(i) of the income-tax act, 1961 ?'3. the facts stated are that the assessee's husband, shri n.k. marfatia, resigned from the defence department and joined as an employee in the firm, new majestic ..... share of mr. n.k. marfatia as determined in the firm's assessment as per section 67 of the income-tax act was added to the income of the assessee. her income apart from the share income was greater than the income of her husband. the share as income from the firm allocated to mr. n.k. marfatia included a sum of rs. 18,000 paid to him ..... firm, he having been paid salary by the firm in which the assessee was a partner it was still liable to be added to the income of the spouse under section 64(1)(ii) of the income-tax act.10. mr. ranka, learned counsel for the assessee, has urged that an artificial mode of computation of a person's share from the partnership firm ..... . 18,000 paid to the husband of the assessee by the firm in which she is a partner was includible in her hands under section 64(1)(i) of the income-tax act, 1961, and the tribunal was not justified in holding otherwise.18. there shall be no orders as to costs.Tag this Judgment!
Court : Mumbai
Decided on : Jun-18-2001
Reported in : (2001)170CTR(Bom)202; 250ITR772(Bom)
..... be judged from the point of view of businessmen. the payment was not a sham. the payment was purely for business purposes. under the income-tax act one has to see whether the expenditure was incurred only and exclusively for the purposes of business. if the expenditure has been incurred out of ..... j.1. being aggrieved by the decision of the tribunal dated october 26, 1999, the department has come in appeal under section 260a of the income-tax act, 1961. the present matter is confined to the assessment year 1987-88 and assessment year 1990-91. by the impugned decision of the tribunal, ..... assessing officer, a sum of rs. 1.60 lakhs was spent for greetings which could not be allowed as advertisement expenses. however, the commissioner of income-tax (appeals) as also the tribunal went through the advertisement in a marathi newspaper issued on the occasion of diwali and on an examination of the ..... . this expenditure was disallowed on the ground that it was an excess price charged in violation of the bye-laws. we have held that for income-tax purposes, one has to go by the test of commercial expediency. on the other hand, in the case before the supreme court, the assessee ..... incurred by the karkhana on account of shubhechha greetings on the ground that they constituted advertisement expenses and, therefore, such expenses were disallowed under the income-lax act. this add-back by the department came to be deleted by the tribunal. therefore, the department has come in appeal. findings :(1) whether .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-02-2001
Reported in : 251ITR401(Bom)
..... contended on behalf of the appellant before the assessing officer that the term 'profit' included loss. it was contended that the expression 'profits and gains' under the income-tax act represented plus income whereas losses represented minus income. in other words, it was urged that the loss was a negative profit. it was contended that since the entire trading export turnover stood disclaimed in favour ..... of deduction under section 80hhc. accordingly, the appeal came to be dismissed. being aggrieved by the said decision, the assessee has come to this court under section 260a of the income-tax act. 5. arguments : mr. trivedi. learned senior counsel appearing on behalf of the assessee, submitted that the tribunal failed to interpret the relevant provisions of law in a liberal way. he ..... 80hhc(1) and the word 'profit' in the section 80hhc(3) must get a uniform interpretation. he contended that it is now well-settled that the word ''profit' under the income-tax act includes loss.6. that the word 'loss' is negative profit/minus profit. he contended that the department has given two different meanings to the word profit. he pointed out that ..... seriously controverted the above facts. in the circumstances, we remand the matter back to the tribunal with a direction to decide this last point under section 80-ia of the income-tax act and except the point regarding section 80-ia, the rest of the order of the tribunal is confirmed. on the question of section 80-ia, the matter is remanded back .....Tag this Judgment!