Court : Karnataka
Decided on : Jan-25-2008
Reported in : (2008)217CTR(Kar)74; ILR2008KAR1255; 2008(1)KCCRSN79(DB)
..... . saravana spinning mills p. ltd. : 293itr201(sc) while considering the question regarding expenditure towards current repairs as contemplated under section 21(1) of the income tax act, has held that the deduction admissible under section 31(1) is only for current repairs; whether such expenditure incurred by the assessee conceptually it revenue or capital in nature was ..... heard the learned counsel appearing for both the parties.4. mr. aravind, learned counsel for the revenue relying upon the judgment of the hon'ble supreme court in commissioner of income tax v. spinning mills pvt. ltd. 293 itr 201 contends that the change of sound system has to be treated as capital expenditure and not a revenue expenditure. therefore he requests ..... no. 695/bang/2000 for the assessment year 1996-97 wherein the tribunal has reversed the findings of the assessing officer and also the order passed by the commissioner of income tax (appeals) raising the following substantial question of law.i) whether the tribunal was correct in holding that the amount of rs. 8,06,147/- incurred by the assessee for ..... accordingly, he passed an order of assessment aggrieved by the order of assessment the assessee filed an appeal before the commissioner of income tax (appeals) which came to be dismissed against which a further appeal was filed before the income tax appellate tribunal. the tribunal after considering the fact that the assessee instead of repairing the sound system had installed dolby system held that .....Tag this Judgment!
Court : Delhi
Decided on : Aug-28-2008
Reported in : 308ITR246(Delhi); 178TAXMAN163(Delhi)
..... the bad debt written off in the books of account of the assessee had been allowed as deduction under section 36(1)(vii) of the income-tax act, 1961.it is a settled position of law that the assessee does not have to establish the bad debt and he has merely indicate ..... the assessee was not in the business of money-lending. however, such a plea cannot be raised at this stage, particularly, when the commissioner of income-tax (appeals) has returned a clear finding that the assessee was in the business of money-lending and there was no question of treating the principal amount written ..... applicable in the appellant's case.4. before the tribunal, as recorded in paragraph 5 of the impugned order, these findings recorded by the commissioner of income-tax (appeals) had not been controverted by the departmental representative during the course of hearing. the tribunal came to the conclusion that there was no infirmity ..... 17,50,000 and interest was an amount of rs. 15,40,820.3. the addition made by the assessing officer was deleted by the commissioner of income-tax (appeals). while doing so, he recorded, inter alia, the findings as under:(iii) as the appellant is in the business of money-lending there is ..... 'the tribunal') in i.t.a. no. 1516/delhi/2004. the revenue's appeal before the tribunal involved the question whether the commissioner of income-tax (appeals) had erred in deleting the addition of rs. 32,90,820 made by the assessing officer after disallowing the deduction claimed in respect of .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-23-2008
Reported in : (2008)220CTR(Bom)416; 312ITR80(Bom)
..... the matter requires consideration as to whether the laboratory expenses include any of the expenditure mentioned in clauses (a), (b), (c) and (d) of explanation (iv) to section 44c of income tax act, 1961. we see merit in the suggestion of the tribunal that the establishment/supporting staff may exist in connection with maintaining of the laboratory and that could be the expenditure ..... , at the instance of the assessee the appellate tribunal referred the questions set out in paragraph 1 above for the opinion of this court under section 256(1) of the income tax act, 1961.3. we have heard the arguments advanced by the advocates for the assessee as well as the revenue at some length. the advocate for the assessee has reiterated what ..... assessee viz. that the head office expenses as per section 44c means executive and general administration expenditure and that the laboratory expenses are not covered by section 44c of the income tax act, 1961. the view of the assessing officer as set out in his order dated 30th december, 1980 for the assessment year 1978-79 is reproduced hereunder.6. ...the assessee may ..... the matter requires consideration as to whether the laboratory expenses claimed include any of the expenditure mentioned in clauses (a) to (d) of explanation (iv) to section 44c of the income tax act, 1961 even though in its general meaning 'head office expenditure' might not as such include the laboratory expenses?2. whether on the facts and in the circumstances of the case .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-19-2008
Reported in : 177TAXMAN9(Bom)
..... . 65,07,090/- i.e. the entire net profit of the assessee pertaining to his export business.iv) thereafter a notice under section 263 of the income tax act, 1961 was issued by the commissioner of income tax to the assessee on the ground that the assessment order under section 143(3) dated 31st december, 1996 was erroneous as the assessee was entitled to only ..... question of law. 'whether on the facts and in the circumstances of the case and in law, the itat was justified in upsetting the order passed by the cit under section 263 of the income tax act, 1961?'3. the relevant facts giving rise to the present appeal are set out hereunder. i) the assessee is engaged in the business of exporting garments as ..... not exist. 7. in view of the above, we hold that itat was justified in upsetting the order passed by cit(a) under section 263 of the income tax act, 1961. we, therefore, answer the question of law raised in this appeal in favour of the assessee and against the revenue. the above appeal, therefore, stands dismissed. however, there will ..... well as sales in the domestic market.ii) for the assessment year 1995-96 the assessee filed return of income on 30th november, 1995 declaring the total income at rs. 3 .....Tag this Judgment!
Court : Mumbai
Decided on : Dec-19-2008
Reported in : 2009(111)BomLR428; 2009BusLR148(Bom); (2008)221CTR(Bom)1; 318ITR237(Bom); 176TAXMAN458(Bom)
..... held by the apex court in the case of maruti udyog ltd. v. ram lal : (2005)illj853sc .41. the provisions of section 42 of the indian income-tax act, 1922 provided that only such part of income as was attributable to the operations carried out in india would be taxable in india.42. the territorial nexus doctrine, thus, plays an important part in assessment ..... india?36. the resolution of the above question would depend upon the interpretation of clause 15 of dta read with of section 9 of the income tax act which clearly lays down that income derived by an individual whether in his own capacity or as a member of partnership, who is resident of contracting state in respect of professional services or independent activities of ..... . salve, any other rule would create chaos and uncertainty.22. mr. salve submits that the tax on professionals who has crossed the 90 day rule would be chargeable to tax under section 9(1)(i) of the income tax act. in his submission in order to be taxed in india, the income must accrue or arise in india. according to him, explanation 1 makes it clear that ..... v.c. daga, j.1. these appeals are filed by the assessee under section 260a of the income-tax act, 1961 (hereinafter referred to as 'the act' for short) against the orders of the income tax appellate tribunal('itat' for short) both dated 27th september, 2001 in i.t.a. nos. 1327 and 1328/mum/2001, whereby the appeals filed by the assessee against the orders .....Tag this Judgment!
Court : Mumbai
Decided on : Nov-17-2008
Reported in : (2009)224CTR(Bom)259; 312ITR1(Bom)
..... , filed a return for the assessment year 1952-53 on march 31, 1953 and also applied for registration under section 26a of the indian income-tax act, 1922. the income-tax officer refused registration and passed an order of assessment on march 26, 1957 holding that the assessee constituted a hindu undivided family. on august ..... his order dated october 31, 1995 passed the assessment order under section 143(3) of the income-tax act assessing the income-tax 'nil' and charging interest of rs. 14,34,660 under section 201(1a) of the income-tax act.(ix) the assessee being aggrieved by the order of the assessing officer dated october 31, 1995 ..... in the circumstances of the case and in law the tribunal was not right in holding that the notice under section 143(2) of the income-tax act, 1961 was validly issued and that assessment made in pursuance thereto was valid in law. we, therefore, answer the question raised in the present ..... return. that finding by itself would, in our view, certainly not lift the bar of limitation as prescribed under section 153(3)(ii) of the income-tax act, 1961, and would not entitle the assessing officer to issue any notice to the assessee under section 143(2) or to proceed with any assessment ..... as to what constitutes a finding. in that decision, the hon'ble supreme court observed that the word 'finding' is not defined in the income-tax act and have reproduced order xx, rule 5 of the code of civil procedure which reads as follows (page 344):in suits in which the issues .....Tag this Judgment!
Court : Karnataka
Decided on : Jan-18-2008
Reported in : (2008)217CTR(Kar)198; ILR2008KAR1004; 309ITR149(KAR); 2008(1)KCCRSN78(DB)
..... short the 'act). the assessee is indulged in the hotel business activities. one such establishment was in bangalore under the ..... of income tax (appeals), bangalore, and the order passed by the income tax appellate tribunal, bangalore bench in ita. no. 19/bang/98 for the assessment year 1989-90,2. the assessee is a company registered under the indian companies act, 1956. the assesses filed the return of income on 31.12.1989 and the same was processed under section 143(1)(a) of the income tax act (for ..... addition to that the learned counsel also relied upon a division bench judgment of this court reported in : 163itr734(kar) in the case; of dharak limited v. commissioner of income tax. relying upon these two judgments and relying upon the agreement produced by the assessee along with the appeal memo and the supplemental agreement thereon, contends that it cannot be treated ..... by the assessee and confirmed the orders passed by the assessing officer and disposed of the appeal.4. aggrieved by the same, the assessee filed a second appeal before the income tax appellate tribunal, bangalore bench, which also dismissed the appeal holding that the transaction between the assessee and m/s indian hotels company limited is in the nature of lease and .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Jan-22-2008
Reported in : (2008)214CTR(SC)457; 297ITR441(SC); JT2008(1)SC621; 2008(1)SCALE638; (2008)2SCC362; 2008AIRSCW1421; 2008(1)Supreme524
..... and assessed its total income rs. 4,06,810/- for payment of income tax. he issued penalty notice under section 271(1)(a) and 271(1)(c ..... for the assessment year 1984-85 declaring rs. 1,32,830/- as its total income as commission agent. the income tax officer, circle -ii, kanpur, vide assessment order dated 13.03.1987 framed under section 143(3) of the income tax act, 1961 (hereinafter referred to as 'the act') has treated the appellant-assessee as 'a trader' and not as 'a commission agent' ..... partly allowed the appeal. the appellant-assessee and the respondent-income tax department feeling aggrieved against the order of the commissioner of income tax filed two separate appeals before the income tax appellate tribunal. the ..... ) and 273(2)(a) of the act, separately.5. being aggrieved, the appellant-assessee preferred an appeal before the commissioner of income tax (appeals). the commissioner of income tax vide order dated 04.04.1988 .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Mar-12-2008
Reported in : 299ITR343(SC); JT2008(3)SC635; 2008(2)KLT221(SC); 2008(3)SCALE620; (2008)11SCC570; 2008AIRSCW3506; 2008(4)KCCRSN236.
..... in law and fact in holding that the assesses is entitled to deduct the entire amount of interest as revenue expenditure under section 37 of the income-tax act?2. whether, on the facts and in the circumstances of the case and also on an interpretation of the agreement dated 27.9.1993, ..... of interest was to be viewed as an expenditure under section 37 of the income tax act, 1961 (for short 'the act') especially when the sale proceeds of the scrap materials from the demolished structures have been (sic) as business income and ultimately allowed the claim of the assessee for deduction of interest.8. aggrieved ..... would be in the nature of a capital expenditure and not as revenue expenditure. this order of assessing authority was confirmed by the commissioner of income tax (appeals). it was held that the intention of the assessee was to enter into an adventure in the nature of trade and ultimately the assessee ..... civil and criminal action and in that sense allowing the payment of interest as contractual obligation?3. the following two questions were referred by the income tax appellate tribunal, cochin to the high court at the instance of the assessee in itr no. 310 of 1999 for its opinion:1. whether ..... the part of interest referable to the lands sold to the sister concerns could not be allowed as revenue expenditure thus, commissioner of income tax gave part relief and allowed the interest referable to 65.57 cents of land retained by the assessee.7. assessee, being aggrieved, filed as .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-11-2008
Reported in : (2008)216CTR(SC)12; 300ITR205(SC); 2008(2)JKJ26[SC]; JT2008(6)SC144; 2008(7)SCALE56; 2008(4)KCCR2829; 2008AIRSCW3706; 2008(2)Supreme884; 2008(4)AIRKarR337
..... facts and in the circumstances of the case, the assessee is entitled to claim deduction of rs. 4,18,107, under section 37 of the income tax act, 1961.14. the high court instead of answering the question of law referred to it came to the conclusion that the tribunal had misdirected itself in ..... ), held that the facts and circumstances of the case warranted levy of penalty under section 271(1)(c) of the income tax act, 1961 (for short 'the act').2. the assessment years involved in the present appeals are 1984-85, 1985-86, 1986-87 and 1987-88.facts:3. ..... accepted in toto. in the course of assessment proceedings, penal action under section 271(1)(c) of the act was initiated and, after considering the reply filed by the appellant, the learned assistant commissioner of income tax / assessing officer chose to levy maximum penalty under section 271(1)(c). while levying the penalty, the ..... of law referred to it. relying upon the two judgments of this court in k. ravindranathan nair v. commissioner of income tax : 247itr178(sc) (sc) and t. ashok pai v. commissioner of income tax : 292itr11(sc) , it was contended that the high court exceeded its jurisdiction in coming to the conclusion that ..... assessment was completed on 29th december, 1989.4. during the course of recording the statement under section 132(4) of the act, shri ramesh agreed to declare such additional income as had been estimated by the search party in the office of the appellant and its sister concerns. on the basis of .....Tag this Judgment!