Court : Madhya Pradesh
Decided on : Jun-25-1987
Reported in : (1987)65CTR(MP)160; 169ITR588(MP)
..... facts giving rise to this reference, briefly, are as follows : the minor sons of the assessee were, during the relevant assessment year 1976-77, admitted to the benefits of the partnership firms carrying on business under the name and style as m/s. gandhi rajkumar santoshkumar, m/s. gandhi nirmalkumar vinodkumar and m/s. dhannaji dhulji & sons. certain funds were invested ..... the hands of the assessee by virtue of the provisions of section 64(1)(iii) of the act and whether the tribunal was justified in remanding the case to the income-tax officer for ascertaining the source of capital invested by the minors in the partnership firms ?' 4. in cit v. smt. nirmala devi : 166itr253(mp) , a division bench of this ..... court held that the language used in section 64(1)(iii) of the act was clear and whatever might have been the object of introducing that clause, the said ..... clause did not leave any room for doubt that it had been made obligatory that if the income arising to the minor child from a partnership firm was referable to the fact of admission of that .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Jan-27-1987
Reported in : 166ITR241(MP)
..... the appellate assistant commissioner took a contrary view and held that dissolution of the old firm took place due to the death of a partner and the partnership firm that came into existence was a new one. the appellate assistant commissioner accordingly directed the income-tax officer to frame two assessments for the two periods ..... the death of heeralal and the period thereafter ?'2. the material facts giving rise to this reference, briefly, are as follows :3. the assessee is a partnership firm and the assessment year in question is 1979-80, for which the accounting year ended on july 31, 1978. during the accounting year, one of the ..... partners of the partnership firm, heeralal, died on march 21, 1978, and the firm was reconstituted by the remaining partners on the next day. an agreement in that behalf was executed ..... of this court has held that after the insertion of the proviso in sub-section (2) of section 187 of the act, by the taxation laws (amendment) act, 1984, section 187(2)(a) of the act would not apply to cases where the firm is dissolved on the date of death of any of its partners in the ..... sohani, j.1. by this reference under section 256(1) of the income-tax act, 1961 (hereinafter referred to as 'the act'), the income-tax appellate tribunal, indore bench, has referred the following question of law to this court for its opinion :'whether, on the .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-14-1987
Reported in : AIR1987SC1217; (1987)61CTR(SC)269; 166ITR102(SC); JT1987(2)SC157; 1987(1)SCALE816; (1987)3SCC516
..... j.1. this is an appeal from the judgment and order of the high court of allahabad dated 26th february, 1971. the assessee is a partnership firm which at the relevant time enjoyed the status of a registered firm for the assessment years 1960-61, 1961-62 and 1962-63. in ..... to carry forward the losses relating to the assessment years 1960-61 and 1961-62 was governed by the indian income-tax act, 1922 (hereinafter called the '1922 act') and the section 75(2) of the income-tax act, 1961 which was applicable to the assessment year 1960-61 had no application in the facts of this ..... the right of carrying forward and set off accrued to the assessee under the act of 1922. a right which had accrued and had become vested continued to be capable of being enforced notwithstanding the repeal of the statute under which ..... shantilal r. desai : 1scr580 and isha valimohamad and anr. v. haji gulam mohamad & haji dada trust : 1scr720 .14. under the income tax act of 1922, the assessee was entitled to carry forward the losses of the speculation business and set off such losses against profits made from that business in future years. ..... profits of the firm, the right, if an created by section 24(2) could not be said to remain intact after the repeal of the 1922 act. speculation losses of years anterior to 1962-63 could not, therefore, be carried forward and set off against speculation profits of a registered firm. the allahabad .....Tag this Judgment!
Court : Mumbai
Decided on : Jul-24-1987
Reported in : (1987)89BOMLR325; (1988)ILLJ87Bom; 1987MhLJ738
..... respect of the employees of the theatres under the ownership of the partnership, subsequent reduction in the number of employees below twenty, whatever may be the reason, did not make any difference. even if the ..... high court in regional provident fund commissioner v. m/s. ratna enterprises : (1986)iillj137kant . this was a case where two cinema theatres had been brought within the purview of the act. thereafter the proprietrix constituted a partnership with her children and, subsequently, the partnership was dissolved and the assets and liabilities were divided among the partners. consequent thereupon the application of the ..... act was challenged on the ground that the number of workmen employed in theatre was less than 20. the court upheld the contention that once the provisions of the act had been introduced in .....Tag this Judgment!
Court : Karnataka
Decided on : Aug-26-1987
Reported in : ILR1987KAR2942; 68STC3(Kar)
..... which are yet to be done. 7. sri srinivasan, learned counsel for the petitioner, in w.p. no. 9472 of 1987, which is a partnership firm, has urged that the provisions of section 43(11)(i) are impossible of compliance since the assessees cannot be asked to close their accounts on ..... legislature.' (6) morisetty bhadraiah v. sales tax appellate tribunal, hyderabad . 'reasonableness of a taxing statute is wholly beyond the competence of the court.' (7) indian aluminium co. ltd., calcutta v. state of madras  13 stc 967 (mad.). 'the definition of 'year' as amended, has nexus with the object ..... of this case that the old system worked quite effectively and the present amendment would be wholly unnecessary and does not achieve the object of the act. 37. sri inder kumar has cited some of the decisions reported in common-wealth law reports (australia). the first decision cited is, page 278 ..... v. commercial tax officer : air1956cal596 , that was a case which dealt with the power to demand security deposit while registering a dealer under the act. them said provision was upheld on the ground that, power to levy includes the power to impose reasonable safeguard in collecting it, and therefore ..... on the state legislature under entry 54. as a corollary to this argument it is submitted that the amendment was not indispensable for administering the act for imposing the tax. 27. the arguments advanced by the other learned counsel for the petitioners support this contention, that the amendment is not .....Tag this Judgment!
Court : Delhi
Decided on : Mar-03-1987
Reported in : ILR1987Delhi9; 166ITR115(Delhi)
..... or thing represents either wholly or partly income or property which has not been, or would not be, disclosed for the purposes of the indian income-tax act, 1922 (11 of 1922), or this act (hereinafter in this section referred to as the undisclosed income or property), then, - (a) the director of inspection or the commissioner, ..... cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the indian income-tax act, 1922 (11 of 1922), or under this act, or (c) any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, ..... be permitted to open the shop. 3. the case of the petitioner is that some time 1965-66 he had entered into a partnership with shri kishan chand and stated business in radios and transistors under the name and style of m/s. lucky electronics and that the said ..... partnership was dissolved and the petitioner took over the business along with the shop and that doing his business in the said shop since 1965 ..... 74itr836(sc) , mr. justice shah, speaking for the court, observed as follows (headnote). 'since by the exercise of power under section 132 of the income-tax act, 1961, as serious invasion is made upon the rights, privacy and freedom of the taxpayer, the power must be exercised strictly in accordance with the law and only .....Tag this Judgment!
Court : Madhya Pradesh
Decided on : Jan-23-1987
Reported in : (1987)62CTR(MP)7; 166ITR211(MP)
..... so either by using it himself personally or by letting it out to somebody else. in the instant case, the business of the partnership, as evidenced by the deed of partnership, which has not been found to be sham, is to erect the building, plant and machinery for the dal mill unit and leasing ..... activity and it could not be held that the assessee was not carrying on any business to entitle it to registration under section 185 of the act.4. in our opinion, therefore, the tribunal was not justified in holding that the activity of letting out the factory building did not constitute business ..... registration was that the activity of letting out the dal mill did not constitute business. now the answer to the question as to whether the act of letting out a dal mill can or cannot constitute a business activity, will depend on the answer to the question as to whether the asset ..... aggrieved by the order passed by the appellate assistant commissioner, the revenue preferred an appeal before the tribunal. the tribunal came to the conclusion that the act of leasing the dal mill by the assessee could not be held to be a business activity and hence theincome-tax officer was right in refusing registration ..... giving rise to this reference, briefly, are as follows :for the assessment year 1976-77, the assessee applied for registration under section 185 of the act. registration was refused by the income-tax officer on the ground that as the assessee had income only from letting out its dal mill, the assessee .....Tag this Judgment!
Court : Supreme Court of India
Decided on : Apr-21-1987
Reported in : AIR1987SC1768; 166ITR134(SC); JT1987(2)SC218; 1987(1)SCALE961; (1987)2SCC616; 2SCR1102
..... assessee was not required in making a return to disclose that any income was received by his wife or minor child admitted to the benefits of partnership of a firm of which he was a partner.upon this conclusion this court therein held:for failing or omitting to disclose that income proceedings for ..... the income of a wife or minor child of such individual as arises directly or indirectly-....(ii) from the admission of minor to the benefits of partnership in a firm of which such individual is a partner.'the assessee was bound to disclose under section 22(5) the names and addresses of his ..... to have failed or omitted to disclose fully and truly all material facts necessary for his assessment within the meaning of 34(1)(a) of the indian income tax act, 1922. with the greatest respect to the learned judges who decided this case, we do not think, for reasons already discussed, that this decision ..... required disclosure of income of any person other than the income of the assessee, which was liable to be included in the total income. the act and rules accordingly imposed no obligation upon the assessee to disclose to the income-tax officer in his return information relating to income of any other ..... wife and minor child in a firm, this court held:-in considering the first question it is necessary to refer to certain provisions of the income-tax act, 1922. by section 3 the total income of the previous year of every individual, hindu undivided family, company and local authority, and of every .....Tag this Judgment!
Court : Kerala
Decided on : Jul-10-1987
Reported in : 170ITR514(Ker)
..... it should not have been reckoned in the matter of arriving at real profits which in turn should be reckoned for valuing the goodwill. after reference to the devaluation of indian currency on june 6, 1966, and keeping in mind the principles of accountancy,the appellate tribunal held that the devaluation applies to every transaction after june 6, 1966, and there ..... it is only the ordinary profits which should be taken into account for the purpose of quantifying the value of goodwill. the appellate tribunal, after adverting to the devaluation of indian currency on june 6, 1966, and the principles of accountancy, held that there is nothing exceptional in the instant case by the devaluation. the devaluation permeates every transaction after june ..... 2 to determine the taxable value of the gift. the assessee again appealed to the appellate tribunal. it was prayed that the devaluation profits, as a result of devaluation of indian currency on june 6, 1966, should be deducted while computing the average profit from the business. by a reference to the profits of the various years 1964 to 1970, and ..... k.s. paripoornan, j.1. the matter arises under the gift-tax act. the assessee is the applicant. the respondent is the revenue. the matter relates to the assessment year 1969-70. the assessee, an individual, was having a proprietary business. on january 1, 1968, it was converted into a partnership firm. three partners were inducted. the gift-tax officer held that there .....Tag this Judgment!
Court : Gujarat
Decided on : Aug-18-1987
Reported in : (1987)66CTR(Guj)34; 168ITR773(Guj)
..... is by setting it off against the income, profits and gains under other heads and for that purpose they considered the case of a partnership firm in which two partners were carrying on other business while other two partners were carrying on no other business. if the unabsorbed depreciation ..... were carrying on other business, it was observed that (at p. 559) 'in our opinion, this suggestion is unsound. what would happen if a partnership consists of four partners, two carrying on other business and two carrying on no other business, mr. shastri was unable to explain. now, if ..... in it was held that when the profits and gains of business are insufficient to cover depreciation allowance under section 10(2)(vi) of the indian income-tax act, 1922, the excess depreciation can be set off against the capital gains for that year. similarly, the supreme court in that case also considered ..... 59itr555(sc) , as to whether the unabsorbed depreciation of the past year is deductible form the total income of the accounting year under the indian income-tax act 1922. in the said case, it was held that the unabsorbed depreciation of past years had to be added to the depreciation of the current ..... 35, to be carried forward, effect shall first be given to the provisions of this section, namely, section 72. similarly, section 73 of the act provides for losses in speculation business and sub-section (3) thereof provides that in respect of allowance on account of depreciation or capital expenditure on scientific .....Tag this Judgment!