Court : Andhra Pradesh
Decided on : Mar-04-1960
Reported in : 41ITR186(AP)
..... rule is in these words :'any firm constituted under an instrument of partnership specifying the individual shares of the partners may, under the provisions of section 26a of the indian income-tax act, 1922 (hereinafter in these rules referred to as the act), register with the income-tax officer, the particulars contained in the ..... district, were originally assessed for the assessment year 1945-46 on a turnover of rs. 24,668 under section 23 (3) of the indian income-tax act. in the course of investigation in regard to the assessment for the years 1946-47 and 1947-48, it came to the knowledge of ..... to the firm for the year 1946-47 and the appellate assistant commissioner to receive the application filed under rule 2 (c) of the indian income-tax rules for the year 1947-48 and dispose of it according to law.'in compliance with the direction of this court, the tribunal ..... (not being minors) personally and shall be made -(c) with the permission of the appellate assistant commissioner hearing an appeal under section 36 of the act, before the assessment is confirmed, reduced, enhanced or annulled.'it is immediately clear from this rule that clause (c) envisages only the condonation of ..... matter, namely, whether the income-tax officer has exercised his jurisdiction judiciously or not. on the other hand, the tribunal thought that the officer acted illegally in either canceling the registration for the previous year or refusing to renew it for the subsequent year, when the genuineness of the firm .....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 : Sep-20-1960
Reported in : AIR1961SC213; 1SCR709; 11STC698(SC)
..... sales tax officer, baroda, made an order assessing the petitioner to a purchase tax under s. 14, sub-s. (6), of the bombay sales tax act, 1953 (bom. act iii of 1953) for the period april 1, 1954 to september 29, 1955. the petitioner contends that this assessment was illegal inasmuch as these transactions are ..... grapes may be 'finally consumed' by eating them as fruits; they may also be consumed by drinking the wine prepared from 'grapes'. again, the final act of consumption may in some cases be spread over a considerable period of time. books, articles of furniture, paintings may be mentioned as examples. it may even ..... is unnecessary and indeed inexpedient to attempt an exhaustive definition of the word 'consumption' as used in the explanation to art. 286 of the constitution. the act of consumption with which people are most familiar occurs when they eat, or drink or smoke. thus, we speak of people consuming bread, or fish or ..... officer, baroda and the assistant collector of sales tax, northern division, range iii, baroda - preventing them from enforcing the provisions of the bombay sales tax act against the petitioner on the transactions in question, for a writ in the nature of certiorari for quashing the proceedings taken against the petitioner and the orders ..... das gupta, j. 1. in this petition under art. 32 of the constitution the petitioner, a partnership firm carrying on the business of manufacture of bidis and having its head office at jabalpur within the state of madhya pradesh .....Tag this Judgment!
Court : Mumbai
Decided on : Sep-17-1960
Reported in : (1961)ILLJ121Bom
..... on behalf of the workmen by the union it is stated that the company has a long standing of 28 years. prior to 1948 it was a partnership concern. the company deals in tyre repairs, servicing of tyres, vulcanizing, tube repairing, etc. it has up-to-date machinery and its financial position is ..... the test of 'commercial necessity' applied by the incometax authorities for determining whether the expenditure was allowable under s. 10(2)(xv) of the indian income-tax act should also be applied by the tribunal. the tribunal evidently overlooked the fact that the incometax authorities are entitled to apply the test of commercial ..... the private limited company consists of three shareholders who are brothers. although in law it is different type of unit from a partnership, it is in reality a family concern. it is well-established by a number of decisions of the labour appellate tribunal that in the case of ..... partnerships and family concerns the tribunal need not allow excessive remuneration to the persons in management for the purposes of the bonus formula. it ..... figure of rs. 24,000 shown as remuneration to the working partner. now it may be noted that before the enactment of the indian companies act, 1956, it was permissible for directors, managing agents, secretaries and treasures and managers to draw remuneration in the shape of a percentage on sales. .....Tag this Judgment!
Court : Kerala
Decided on : Jul-18-1960
Reported in : AIR1961Ker315
..... assessment order on 23-12-1954 under section 23(3) of the income-tax act, 1922 determining the total income of the partnership firm at rs. 3,86,669/- the petitioner's share of the income being rs; 1,93,334/-. on appeal by the ..... the supreme court in t. k. musaliar v. venkitachalam, (s) air 1956 sc 246. that was a case where a petition was filed against the indian income-tax investigation commission having its office in new delhi and the official authorised by the commission to work in travancore under section 6 of the travancore taxation ..... -1957 informing him that 'according to the present policy of the government of india, indian citizens are not allowed to go to goa.' the said order is marked as ext. p9. on account of the above prohibitions and restrictions all the petitioner ..... request. true copies of the said letter and reply are marked ex. p8 series.the government of india have also imposed restrictions and prohibitions regarding travel of indian citizens to goa. on applying to the government of bombay state, for travel facilities to goa, the petitioner got a reply from them on 19-1 ..... the business in goa and had to leave large assets and amounts belonging to the business at goa without being able to take them over to the indian territories,2. for the assessment year 1950-51 corresponding to the account year ending on the 31st march 1950 the income-tax officer, bombay passed an .....Tag this Judgment!
Court : Andhra Pradesh
Decided on : Feb-18-1960
Reported in : AIR1960AP612; 40ITR195(AP)
..... view of the calcutta high court in income-tax referred case 38 of 1952 (cal) that:'the profits which have come to the assesses from the partnership firm have come as net profits and after they have so come, there cannot be any further deduction on account of expenditure incurred not even by the ..... of an individual only after allowing the justifiable deduction, i. e., expenses incurred for the purpose of earning that income. surely, in order to invest money in partnership, it a partner has to borrow money, he has necessarily to pay interest thereon and that could not be left out of account. in our opinion, the ..... real taxable income of a partner is what tie receives from the partnership and other sources minus what he has to expend in order to gain it.9. it is this principle that is embodied in section 10 of the ..... order to appreciate the point involved in this reference, it is useful to read the relevant sections of the act. section 23(5)(a), which provides the basis for the determination of the profits of a partnership as also the distribution thereon amongst the various partners, in so far as it is relevant for this enquiry, ..... share in the profits of the firm known as m/s. navayuga films, the tribunal complied with this request under section 66(1) of the indian income tax act.5. the principal point for consideration is whether section 23(5) precludes such a deduction being allowed and whether section 10(2)(iii) of the income .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Aug-17-1960
Reported in : AIR1961SC107; 40ITR552(SC); 1SCR210
..... properly exercise our own advisory jurisdiction.' 15. this court pointed out that the high court exceeded its jurisdiction under s. 66(4) of the indian income-tax act. it was observed : 'if the question actually referred does not bring out clearly the real issue between the parties, the high court may ..... the judgment and order dated march 24, 1955, of the punjab high court by which the high court, purporting to act under section 66(4) of the indian income-tax act, called for a supplemental statement of the case from the income-tax appellate tribunal. the special leave granted by this court ..... later case, the department had to deal with a non-resident company which, at all material times, was situate at bhavnagar, one of the indian states. cheques in payment for supplies to government were sent from british india to bhavnagar. the department contended in the case that though the cheques ..... of payment :- unless otherwise agreed between the purchaser and the contractor payment for the delivery of the stores will be made by the chief auditor, indian stores department, new delhi, by cheque on a government treasury in india or on a branch of the imperial bank of india or the reserve bank ..... coparceners of a joint hindu family, and the third is a stranger. they had formed this partnership in june, 1940, for the manufacture and sale of blankets, felts and other woollen articles. a deed of partnership was also executed on march 16, 1944. the assessee entered in to contracts with the government .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Jan-25-1960
Reported in : AIR1960MP195
..... overruled, to conclude that the present petition is tenable.6. so far as the facts of this case are concerned, the applicants were carrying on business of motor transport in partnership with the non-applicant, diwanchand. they had executed agreements in favour of each other regarding the truck which was the subject-matter of this dispute. the said agreements were filed ..... , with the following observations:'in the above circumstances, i am of the opinion that the accused have not committed any offence under section 379 of the indian penal code or under section 4 of the debtors act. therefore, i hold the accused not guilty under any of the sections as alleged by the prosecution. i, therefore, acquit accused harbhagwandas son of ramduttamal ..... . and the other case decided by naik j. in air 1950 madh pra 75 (supra) decided by chaturvedi j., the accused had been prosecuted for an offence under section 454, indian penal code. they were acquitted of the offence and, it did not appear that any offence with respect to the property was committed; and, therefore, the property that was said ..... , of by the applicants. it was the non-applicant's case that the applicants forcibly took away the truck against his consent and thereby committed an offence under section 379, indian penal code. the applicants' defence was that the non-applicant handed over the truck to them voluntarily and there was no question of a criminal offence. on these contentions, the .....Tag this Judgment!
Court : Punjab and Haryana
Decided on : Dec-22-1960
Reported in : AIR1961P& H340; 31CompCas338(P& H)
..... the banker is the creditor or the debtor. the respective liabilities of the bailor and the bailee are stated in chapter ix of the indian contract act, 1872 (act no. 9 of 1872), but so far as debts incurred by displaced debtors and secured by the pledge of movable property are concerned, ..... person who breaks a contract but it arose as a result of the determination by the court, and the argument, based on section 73 of the indian contract act, was repelled. kapur, j., who delivered the main judgment, observed as follows : 'besides, as i have already pointed out, there is a ..... made by the learned chief justice in the passages quoted above was unreal, and he pointed out to the provisions of section 73 of the indian contract act, according to which, when a contract has been broken, the party, who suffers by such breach, is entitled to receive from the party ..... bom 669. that was a case in which the appellant had made an application under section 10 of the act before the tribunal claiming partnership accounts from his partners on the basis of the partnership being dissolved in july 1949 and also claiming to receive moneys found due and payable to him on taking ..... such accounts. chagla. c. j. and tendolkar, j., who constituted the bench held that in order that there can be a debt which can be adjusted or with regard to the recovery of which the special facility provided by the act .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Nov-29-1960
Reported in : AIR1961SC609; 41ITR425(SC); 2SCR765
..... shall, so far as may be, apply to any such assessment.' 4. that the business of the firm was discontinued because of the dissolution of the partnership is not disputed. it is urged however that a proceeding for imposition of penalty and a proceeding for assessment of income-tax are matters distinct, and ..... of income tax : 31itr867(ap) , in which it was held that an order imposing penalty under section 28(1)(c) of the indian income tax act upon a hindu joint family after it had disrupted, and the disruption was accepted under section 25a(1) is invalid, because there is a lacuna in ..... , j. 1. c. a. abraham hereinafter referred to as the appellant, and one m. p. thomas, carried on business in food grains in partnership in the name style of m. p. thomas & company at kottayam. m. p. thomas died on october 11, 1949. for the account years 1123 ..... council observed : 'one of the peculiarities of most income-tax acts is that the word 'assessment' is used as meaning sometimes the computation of income, sometimes the determination of the amount of tax payable and sometimes the whole ..... but the expression 'assessment' used therein does not merely mean computation of income. the expression 'assessment' as has often been said is used in the income tax act with different connotations. in commissioner of income tax, bombay presidency & aden v. khemchand ramdas  6 i.t.r.414 the judicial committee of the privy .....Tag this Judgment!