Court : Madhya Pradesh
Decided on : Jan-19-1960
Reported in : AIR1960MP278; 39ITR99(MP)
..... could be deduced from the assessment record. the present reference has been made after investigation of facts. the appellate tribunal has now observed that there are no partnership deeds of the two unregistered firms, that'the only relevant account books are those of the assessee through which all the receipts and expenses of both the ..... profits of the firm.while dealing with the case, the learned chief justice emphasized the distinction between a registered and an unregistered firm under the income-tax act and pointed out that when a firm is unregistered, the unregistered firm is the assessee and the firm itself is liable to pay tax and is assessed ..... the purpose of the business, profession or vocation. if, therefore, money is borrowed for the purposes of a business the profits of which are not assessable under the act, then no deduction can be claimed under clause (iii) in respect of interest on such borrowings. (see in re. provident investment co., air 1932 bom 94 ..... accordingly proceed to dispose of the reference.4. the assessee bases bis claim for deduction on clause (iii) of sub-section (2) of section 10 of the act. the provision is as follows:''10(1) the tax shall be payable by an assessee under the head 'profits and gains of business, profession or vocation' in ..... dixit, c.j.1. this reference under section 66(1) of the indian income-tax act relates to the assessment to income-tax of one sorabji framji kerawala as an individual. the question referred to for the decision of this .....Tag this Judgment!
Court : Mumbai
Decided on : Apr-04-1960
Reported in : 39ITR594(Bom)
..... supplementary statement of the case setting out the facts on which it had reached its conclusion. the material facts may be briefly stated. the assessee is a partnership firm and runs a cotton pressing factory at kosamba in surat district. four of its five partners are co-operative societies. the two assessment years are ..... deduction in computing the profits of the assessee having regard to the provisions of section 10(2)(xv) read with section 10(4)(b) of the indian income-tax act. the second question raised at the instance of the income-tax commissioner appeared to us to be in two parts : the first part involving an ..... for the assessment year 1953-54/ 1954-55 having regard to the provisions of section 10(2)(xv) read with section 10(4)(b) of the indian income-tax act, 1922 2. whether the amount of rs. 9,689/rs. 40,388 can at all fall under section 10(2)(xv) particularly because it is ..... the record as to the material on which the tribunal gave its finding that the impugned rebates constituted admissible deductions under section 10(2)(xv) of the act.'6. they have also stated that the tribunal had relied upon its own experience of such cases and had no doubt that it was the normal ..... raises a question of some importance and interest relating to the meaning and import of the expression 'commission' in section 10(4)(b) of the income-tax act. the reference came up for hearing before mr. justice tendolkar and myself on september 19, 1957, and as we felt that the tribunal had not applied its .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Jan-20-1960
Reported in : AIR1961AP165; 39ITR730(AP)
..... court with regard to the assessments for the years 1944-45, 19-15-46 and 1946-47. 4. after the disruption of the family a registered partnership firm was formed by the erstwhile co-parceners for carrying on mining business. on 6-5-1947, a company under the name and style o! krishnappa ..... advanced two principal contentions; (i) that the appropriate taxing authorities having passed on order on 30-6-1952 under section 25-a(l) of the indian income-tax act that the family had become disrupted with effect from 2-11-1946, the impugned notices are in violation of the mandatory terms of section 25-a( ..... may be recorded and assessments made on the various members in accordance with the provisions of section 23 read with section 25-a(2) of the indian income-tax act. the income-tax officer, special circle, madras, passed an order dated 30-6-1952 holding that the partition of the family must bo deemed to ..... the issue of a writ of certiorari as the notices are not judicial or a quasi-judicial proceeding but are purely administrative or ministerial acts. 9. section 25-a of the indian income-tax act is in these terms: '25a-(l) where, at the time of making an assessment under section 23, it is claimed by ..... on a writ petition filed by some of the members of the family the learned judge held that no portion of the penalty under section 28 of the act could be recovered from the petitioners and, therefore the writ was allowed. the very argument advanced by mr. kondiah was there advanced and rejected in these .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Oct-19-1960
Reported in : AIR1961AP355; 45ITR118(AP)
..... ruled there that a joint hindu family cannot be taken as a legal person in the strict sense of the term so as to constitute a partnership. the learned judges stated that the legal relation subsisting between the members of a family carrying on business may have some sort of resemblance to ..... holders some of whom were individual persons and the rest co-operative societies, was an association of individuals within the meaning of section 3 of the indian income-tax act. likewise, a bench of the madras high court consisting of lionel leach, c. j. and lakshman rao, j. decided that a bar ..... income-tax v. currimbhoy ebraluni, air 1932 bom 106 is that a corporation is an individual within the purview of section 3 of the indian income-tax act. this was confirmed by the judicial committee of the privy council in currimbhoy ebrahim baronetcy trust v. commr. of income-tax, bombay, air 1934 ..... council is an individual within the wordsof section 3 of the indian income-tax act (vide commr. of income-tax v. bar council, madras, air 1943 mad 137). the principle enunciated by the bombay high court in commr. of ..... assessee moved this court to remove those orders on certiorari.3. the principal contention urged on behalf of the petitioner is that section 3 of the act, which enables the revenue to tax a hindu undivided family, is beyond the legislative competence of the union parliament and, consequently, the proceedings started by .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Feb-17-1960
Reported in : AIR1960SC738; (1960)62BOMLR567; 30CompCas261(SC); 38ITR601(SC); (1960)IIMLJ101(SC); 3SCR38
..... arises out of a reference by the income-tax appellate tribunal under section 66(1) of the indian income-tax act (hereinafter termed the act). the appellant in this appeal is the commissioner of income-tax and the respondent is a partnership firm which, by an agreement dated september 23, 1935, was appointed the managing agent of the ..... the absence of a suggestion of a fraud this is not relevant at all for giving effect to the provisions of section 12(2) of the income-tax act. most commercial transactions are entered into for the mutual benefit of both sides, or at any rate each side hopes to gain something for itself. the test ..... 5%. the income-tax appellate tribunal and the high court held that the interest on debentures was not an allowable expenditure under s. 12(2) of the act. this court, on appeal, was of the opinion that the transaction was of a commercial nature from the point of view of the assessee company and ..... the bonus which the managed company paid to some of its officers and claimed it as a deductible expenditure under s. 10(2)(xv) of the act. this deduction was allowed on the ground that the object of the payment from the point of view of commercial principles was to increase the profits of ..... or a part thereof is foregone in the interest of the managed company, it would be allowed as an expenditure under section 10(2)(xv) of the act. we allow the amount foregone under section 10(2)(xv).' 2. against this order, at the instance of the appellant, a case was stated to the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Dec-12-1960
Reported in : AIR1961SC617; 3SCR181; 12STC119(SC)
..... under art. 226 of the constitution. the state of kerala and the tahsildars of kottayam and kanjirappally taluks are the appellants, and c. m. francis & co., a partnership firm, is the first respondent, and the partners of the firm are the remaining respondents. 2. the respondents were doing business in hill produce like pepper, ginger, betelnuts ..... to the exclusion of the other, the observations of mahmood, j. quoted above must apply. in our opinion, in the absence of any such provision in the act, both the remedies were open to the authorities, and they could resort to any one of the them at their option. 7. the appeal is allowed, and ..... attention to all the relevant provisions of the law. the question which arises is whether s. 19 must be taken to prevail over s. 13 of the act. both the sections lay down the mode for recovery of arrears of tax, and, as has already been noticed by the high court, lead to the application ..... be recovered as if it were an arrear of land revenue. it appears that the proceedings were not fruitful, and a prosecution under s. 19 of the act was instituted against the partners in the court of the first class magistrate, ponkunnam. respondents 2 to 5 pleaded guilty, and the magistrate passed an order on ..... respondents have to pay a sum of rs. 1,01,716-4-3 as tax. in 1954, proceedings were started against them under s. 13 of the act, which provides that if the tax is not paid as laid down in that section, the whole of the amount or such part thereof as remains due, .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-07-1960
Reported in : AIR1961Bom227; (1960)62BOMLR1043; ILR1961Bom318
..... requiring the additional collector to withdraw the order that he had passed. 2. the respondents carry on business in bombay as dealers in bullion in partnership in the firm name and style of messrs. ambalal amichand and co. at 101 shaikh memon street, bombay. in the petition that they filed ..... to check the exercise of the powers given to them under section 178a of the act arbitrarily ana without any foundation at all, to the harassment ot the general public. it would be necessary therefore, that before any person ..... he was a witness, was in respectof smuggled goods. the restrictions placed upon the powers of the customs officers under section 178a of the act cannot be lightly treated. they are serious and it is necessary that the customs officers themselves should realise the importance thereof. they are intended ..... smuggling of gold and precious stones, that the government considered that their difficulties might be removed by introducing a new section in the sea customs act. at first, it appears, the section was so worded that entirely arbitrary powers were given to the customs officers in regard to seizure of ..... of the foreign exchange regulations act is thereby disclosed'. it appears that the respondents sent a reply to this notice by their letter dated 20th september 1956, contending that the certificate of fineness in respect of the gold that had been seized, issued by the indian government mint showed that the .....Tag this Judgment!
Court : Kolkata
Decided on : Mar-25-1960
Reported in : AIR1960Cal681,44ITR746(Cal)
..... the high court in dealing with such points is the same as in dealing with pure points of law'.9. under section 66 of the indian income-tax act the appellate tribunal can be required to refer questions of law arising out of their order. on such a reference the findings of fact by ..... the order of the tribunal that those shares were stock-in-trade after 21-2-1940 is therefore final in view of section 33(6) of the indian income-tax act. the commissioner must be regarded as having accepted that part of the decision of the tribunal ; see commissioner of income-tax, west bengal v. messrs. ..... 40 was justified in law'.2. this reference is made pursuant to an order passed by the high court under section 66(2) of the indian income-tax act on the application of the assessee. the commissioner of income-tax did not ask the tribunal to state a case on the question whether the ..... between persons who have agreedto shares the profits of a business carried on by ail or any of them acting for all. now an individual may carry on business and may do many other things but a partnership comes into existence only for the purpose of carrying on business, see inderchand hariram v. commissioner of ..... -1940. the partnership deed recites that the partnership came into existence on the ramnavami day in the year 1938, that is to say, at the commencement of the samvat year 1995. the hindu undivided family made an application to the income-tax officer under section 25a(1) of the indian income-tax act for recording the .....Tag this Judgment!
Court : Rajasthan
Decided on : Sep-26-1960
Reported in : AIR1962Raj152
..... 1954-55, the previous year being the period ranging from, 10-10-1952 to 26-10-1953 (both inclusive). the assessee is a partnership firm registered under section 26a of the indian income-tax act consisting of 4 partners, one of them being shri kishan chand son of maya ram, opposite party no. 2. he had an ..... a further sum of rs. 40,000/-/- to that of his mother jasodhabai as cash gifts. mayaram, chella ram, and shrimati jasodhabai had accounts with the partnership firm and the sum of rs. 60,000/-/- and rs. 40,000/-/-were credited to their respective accounts accordingly and a sum of one lakh was debited ..... was not entitled to claim a deduction of the interest credited in the books to the trust account from his income under section 10 of the indian income-tax act.6. in the cases discussed above the donees made entries in their own books of account in pursuance of their intentions to make gifts of their ..... rs. 1,108/-/- credited to the accounts' of donees by the assesses firm could not be regarded as allowable deductions under section 10 (2) (iii) of the indian income-tax act. the tribunal relied on the following decisions in coming to this conclusion :(1) chamber v. chamber air 1941 mad 154; (2) r. m. v. muthappa chettiar ..... ranawat, j.1. this is a reference by the income-tax appellate tribunal (delhi branch) under section 66(1) of the indian income-tax act. the following questions have been referred :1. whether on the facts and in the circumstances of this case, the debit entry of rs. 1 .....Tag this Judgment!
Court : Kolkata
Decided on : Nov-17-1960
Reported in : AIR1961Cal653
..... the evidence on the record establishes the following facts: originally the defendant dawoodayal kothari and one kastur chand kothari used to carry on a business in co-partnership under the name and style of sadasukh gambhirchand in bombay. kastur chand kothari thed on the 19th january, 1950. on the 3rd february, 1950, when ..... the gunny-department and that he had no authority to accept hunthes. the evidence shows that the gaddi of manick chand bagri was run on the indian style. the gaddi was located in a big hall and the entire work used to be transacted under the supervision of the master who used ..... paragraph insists that words of acceptance or importing acceptance must be used before the signature can come within the third paragraph of section 7 of the act. no such limitation is imposed in the statute. signature by itself, on the facts of a particular case, without anything more may be the ..... on the bill and is signed by the drawee and that the mere signature of the drawee without additional words is sufficient. in the meantime, the negotiable instruments act was enacted in 1881. the section was considered by the supreme court in jagjivan mavji v. ranchhoddas meghji, : 1scr503 . in that case, venkat ..... and 46 vict. c. 61). but the provisions of section 17(2)(a) of the bills of exchange act, 1882, are declaratory of the existing law. i am satisfied that on this point, the indian law does not differ from the english law. section 7 requires that in order to become an acceptor, the .....Tag this Judgment!