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Case Laws
Showing 61 to 80 of 126 Records
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1975 (11) TMI 69 - ITAT MADRAS
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... ... ..... . The learned State Representative relied upon the decisions of Gujarat and other High Courts where the entries are not at all identical. The entry in Gujarat and West Bengal is narrow. There are no words like all varieties of textiles and the entry follows Central Excise Law. Even though, the learned counsel would try to get some support from some of these decisions also, we do not, however, consider it proper to take those cases laws for consideration either for or against the appellant. Under the circumstances, we find the lsquo saree borders rsquo sold by the appellant should be treated as falling under item 4 of Sch. III and exempt the same. In the view of we have taken, it is not necessary to consider the alternative contention that these goods fall under item 7 of Sch. III. The preliminary contention that there is no jurisdiction to revise the assessment need not also be considered as the appellant succeeds on merits. 4. In the result, all the four appeals are allowed.
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1975 (11) TMI 68 - ITAT MADRAS
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... ... ..... ent and the Trade, we have to allow the exemption claimed. In view of this factual position, we do not consider it necessary to cite or discuss the number of authorities cited both in favour and against. Most of the decisions, at any rate, are not directly on point and the solution of the problem before us is very clear and patent and could be easily solved without entering into a detailed discussion of the various case laws. In the view we have taken we do not consider it necessary to go into appellants alternative claim that there are declared goods. The appeal on this point is therefore allowed. 8. In the result, the appellant is eligible for exemption, on a turnover of Rs. 4,08,650.00 at 31/2 per cent,. The appellant rsquo s objection s in respect of the additions totalling to Rs. 72,540.79 are however referred back by way of remand to the AAC, who will deal with the appellant rsquo s claim de nove. There will be corresponding relief in surcharge and additional sales tax.
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1975 (11) TMI 67 - ITAT MADRAS
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... ... ..... ts. The decision of the Madras High Court in the case of Loyal Textile Mills Limited 21 STC 195 as mentioned earlier is directly in appellant rsquo s favour. No doubt the learned State Representative would like us to take a narrow technical view of the matter. Such a view is not warranted in view of the rationale of these decisions. Even on technical view the learned State Representative is not on sound grounds because the appellant has brought fresh materials in support of its plea on merits and the consideration of such fresh material might have well led revision of the earlier view if they are considered on merits. It has not been considered necessary to go into the question because the appellant does not press the appeals for asst. yrs. 1970-71 and 1972-73 while the appeal for 1969-70 in T.A. 514/74 could well be disposed of on the above lines without going into merits. Hence appeal for asst. yr. 1969-70 is allowed, Appeals for asst. yr. 1970-71 and 1971-72 are dismissed.
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1975 (11) TMI 64 - ITAT MADHYA PRADESH
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... ... ..... ale price. There was thus no malafide and it has been held by the M.P. High Court in CST vs. Bakhtawarlal Madanal (1969-VKN(2)-219) that if the assessee believes that a certain turnover is not taxable and does not disclose that turnover is his returns, no inference of deliberate concealment or furnishing a false return can be drawn even if one comes to the conclusion that the assessee was in error in the interpretation of the law, and under these circumstances penalty under s. 43 cannot be imposed. Thus this case is clearly distinguishable form the case of National Garage. 5. The submission of the revised returns further shows the bonafides of the assessee. When he found that his plea was not acceptable to the Department he submitted revised returns including these charges in the turnover and paid tax along with them. Submission of such revised return should not, therefore, call for penalty under s. 17(3). 6. The appeal is allowed. Penalty imposed under s. 17(3) is set aside.
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1975 (11) TMI 62 - ITAT JAIPUR
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... ... ..... 7-68 in ITA Nos. 971/JP/1972-73 and 124/JP/1975-76. The Tribunal decided those appeals on 31st Oct., 1975. On the basis of the finding given in those appeals by the Tribunal or the asst. yr. 1967-68, we also send back this case to the ITO with the direction that he would ask the assessee to place the relevant date on record. Thereafter he would determine in accordance with s. 43(A) s to what is the increase in the liability of the assessee as expressed in Indian currency for making payments towards the whole or part of the cost of the asset. On such increased liability, extra depreciation would be available to the assessee. The learned ITO shall decided the matter in the light of the observations given above and also in the light of the observation made in the Tribunal rsquo s order dt. 31st Oct., 1975 in ITA Nos. 971 and also in accordance with law. 19. In the result, appeal No. 645 and 646 are dismissed and appeal No. 660 shall be taken as allowed, for statistical purposes.
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1975 (11) TMI 61 - ITAT HYDERABAD-A
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... ... ..... The only question that survives for consideration is regarding the justifiability of the sustenance of the further addition of Rs. 7,500 by the AAC. Learned counsel for the assessee has contended that the sustenance of the addition of Rs. 7,500 was not justified in law, if the theory of intangible additions was kept in view by the AAC. It appeared that the additions made in the past five years amounted to about Rs. 22,000. Making allowance for the expenditure on the part of the assessee towards taxes etc. from the intangible additions, it can be safely held that there was adequate balance left with the assessee to absorb the addition of Rs. 6,500 sustained by the AAC. We see no reason in not accepting the theory of intangible addition raised by the learned counsel and deleting the addition of Rs. 6,500. We order the deletion of the amount accordingly. It logically follows that the interest levied cannot also be sustained. 4. In the result, the appeal succeeds and is allowed.
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1975 (11) TMI 60 - ITAT HYDERABAD-A
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... ... ..... yment for non-fulfilment of ready delivery contracts during the three years under consideration should be allowed as losses from regular business and set off against profit therefrom. We direct accordingly. 20. In the cross objection filed by the Department, which relates to asst. yr. 1965-66, the only contention is that the assessee should have charged interest on the cost of additions made on behalf of the owner as it was paying interest on borrowals used for the construction and that since the assessee had not done it, part of the interest claimed by the assessee had to be disallowed. We find that this point was neither taken by the ITO in the assessment order nor was it raised before the AAC and considered by him in his order. We are unable to find any ground for this contention at this stage. We refuse to go into the same and reject it as not admissible. 21. In the result, while the assessee rsquo s appeals are allowed, the cross objection of the Department is dismissed.
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1975 (11) TMI 59 - ITAT DELHI-D
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... ... ..... -60 no doubt a rate of 10 per cent was applied but in the subsequent years the ITO applied a rate of 12 1/2 per cent which appears to have been accepted by the assessee. In fact the assessee rsquo s own allegation in ground No. 4 of the grounds of appeal is that the net profit was determined in the past by applying a rate of 12 1/2 per cent. We therefore, direct that the profit be determined by applying net rate of 12 1/2 per cent on the contract receipts of Rs. 90,587. 8. The costs of Rs. 8,121 and misc. expenses of Rs. 23 awarded to the assessee by the Court are assessable as such as assessee rsquo s income because the assessee rsquo s already been allowed litigation expenses of Rs. 9,000 in respect of these suits in the earlier years. Similarly the interest of Rs. 32,586 has to be treated as the assessee rsquo s revenue receipt and included in its income. We direct the ITO to recompute the assessee rsquo s income accordingly. 9. In the result the appeal is allowed in part.
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1975 (11) TMI 58 - ITAT DELHI-C
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... ... ..... e Act. In the present case the old firm was dissolved by a dissolved by a dissolution deed dt.30th July, 1969and a new firm came into existence under a fresh deed dt.1st July, 1969, the constitutions of the two firms were entirely different. There were only a few common partners but four new partners joined and five minors were admitted to the benefits of the new partnership. On these facts there is no doubt that the new firm came into existence after the dissolution of the old firm and these two firms were totally distinct and separate firms. Therefore, respectfully following the two Full Bench decisions of the Allahabad High Court, we hold that it is a case of succession requiring two assessments to be made under s. 188. We direct the ITO to make the two assessments accordingly. 6. The remaining two grounds of appeal were not pressed. It was stated that the assessee has since been allowed relief under s.154 in respect thereof. 7. In the result the appeal is allowed in part.
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1975 (11) TMI 57 - ITAT DELHI-C
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... ... ..... he present case had brought out that even the entire capital was not divided. This it was pleaded was not permissible. 8. After giving out utmost consideration to all the circumstances, we find that aforesaid authorities support the assessee rsquo s case that a partition of a part of the whole asset can well take place, and that this can be brought about in a running business by making appropriate, entries in the books. Even the capital has been held to be divisible although the business itself is not divided. 9. In view of these decisions, we are inclined to uphold the case of partial partitions set up by the assessee. 10. The other ground in this appeal could not have been combined with the present appeal which concerns recognition of partition under s. 171 IT Act, 1961. The assessee ought to have filed a separate appeal on those grounds. See in this respect the decision of theCalcuttaHigh Court in 58 ITR 130. 11. The result, therefore, is that the appeal is partly allowed.
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1975 (11) TMI 56 - ITAT COCHIN
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... ... ..... rtners or that of the assessee-managing partner and why should it wand its way to get deposited in three separate accounts in the name of the wife and two minor children of the managing partner? These questions can fetch no satisfactory answers. We need not discuss much about the veracity of this explanation which on the face of it appears to us as inherently improbably against the ordinary human conduct and contrary to the ordinary course of events in life. 11. So if we reject the explanation, it follows as an inevitable conclusion that these are earnings or moneys of the assessee deposited, that is transfer without consideration to the wife and his minor children. So the estimate of interest income under s. 64 is perfectly justified. That means the two appeals of the assessee on this question have only to be dismissed. 12. In the result, the two appeals of the assessee for asst. yrs. 1970-71 and 1971-72 are allowed in part and the Departmental cross objection is dismissed.
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1975 (11) TMI 55 - ITAT COCHIN
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... ... ..... not aware of the correct position and neither has the Department been told about this. We, therefore, think that this is a point on which further clarification is necessary. We are sending the matter back to the AAC in order to determine this point. He will find out how these cheques were encashed by the assessee and what documents were available with him which could reflect the encashment of them. If it was through his bank account, then we feel that the Department s case for gross negligence is met out. If the bank accounts do not show these receipts then perhaps the assessee might have been only guilty of negligence and not gross negligence. In that case, the penalty cancelled would be correct. 10. We will, therefore, set aside the other of the AAC and remit the matter back to the AAC. For statistical purposes the appeal will be treated as allowed. 11. The cross objection filed by the assessee only supports the order of the AAC. It is, therefore, dismissed as infructuous.
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1975 (11) TMI 54 - ITAT COCHIN
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... ... ..... e status of Mr. Parthasarathi, whether, he was really a dummy or not. We only out in the process of evaluating the evidence against the assessee. 10. Regarding the evidence of disallowance of commission payments, we would agree that these could not constitute concealed income. The assessee was not able to substantiate the payments. From that alone, concealment cannot be inferred. Regarding the availability of cash in the form of inflated claim for brokerage the Department Representative s reliance was the finding of cash outside the books. But the evidence for the cash out said books of such dimension would be lacking once we reject Parthasarathy s testimony regarding the alleged bogus outstanding Rs. 97,635. 11. Thus we find direct evidence for Rs. 8,000 under jaggery and Rs. 11,300 under dates. Considering all the facts brought out in the appellate order and penalty order we will sustain a penalty of Rs. 25,000 (Twenty five thousand only). 12. The appeal is partly allowed.
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1975 (11) TMI 53 - ITAT COCHIN
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... ... ..... debited to the P and L account but had debited in other suspense account. In such a case it would not have been claimed as a deduction. It is true that the assessee was not able to produce the books of account and in the normal circumstances an adverse inference could be draw. But evidence had been produced that the books were destroyed and is not possible for them to produce those books. Added with this we are asking in 1973 the books of accounts of early fifties i.e., more than 20 years old books. If the assessee expresses inability to produce such old books it cannot be treated as a matter of adverse inference. We, therefore, will conclude that the onus being on the Department to show that these amounts were claimed as deduction in the earlier years the onus had not been discharged and therefore the balance cannot be brought to tax under s. 41(1). The addition will be deleted. 10. In the result, the Departmental appeals as well as the assessee s appeal are partly allowed.
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1975 (11) TMI 52 - ITAT COCHIN
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... ... ..... low-weight ones will fly away. But the sophistication of the machinery is also not a test to determine whether the work done by the help of the machinery is a processing or not. So the process which is apparently only a process of making the goods fit for marketing and export which if manually done may not be sufficient to make it an industrial undertaking, partakes the character of industry because of the use of machinery run with the aid of power. There need be no semblance of manufacture in the activity. Processing is sufficient. Casino s case, 91 ITR 289, a Kerala High Court judgment, is entirely different on facts. So we hold that the firm in which the assessee is a partner is also an industrial under taking as regards the trade in hill produce also. 9. The appeal is allowed. The assessment will be modified accordingly on the basis that not only oil mill and sea food business are industrial undertakings but also export trade in hill produce is an industrial undertaking.
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1975 (11) TMI 51 - ITAT AMRITSAR
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... ... ..... a gift of his joint family property. Such a gift, as held by the Punjab and Haryana High Court, in the case of CIT vs. Tej Nath , is void ab initio. Even under the Customary Law, the assessee could not legally make a gift of his ancestral property without legal necessity or without the consent of his male descendants under Art. 59 of the Digest of the Customary Law by Rattigan. That all the sons of the assessee did not consent to the gift in question is obvious from the fact that 5 of them filed a suit challenging the validity of the gift and got a decree against the donor and the donees from a civil Court. Thus, the gift in question was not valid even according to the Customary Law. In any case it is not possible to ignore the decree of the Civil court and hold that the gift in question is valid. The AAC was, therefore, justified in cancelling the assessment on the ground that the gift was invalid. We, accordingly confirm his order. 5. In the result, the appeal is dismissed.
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1975 (11) TMI 50 - ITAT ALLAHABAD
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... ... ..... ich could be known to his brother. It does appear that the business was carried on mainly by the brother of Kunwarji and, therefore, probably the latter did not know the facts fully. It is not fair to treat the assessee s dealing with suspicion. 6. No doubt there has been a significant fall in the assessee s disclosed turnover of the year 1969-70 from that in the earlier period of the same year, but that by itself is not an incriminating circumstances because in the very subsequent year, i.e., 1970-71 the assessee has shown remarkably progressive turnover. 7. On a consideration of all the matters, I think that the assessee s accounts for both the years deserve to be accepted. Order Both the revisions are allowed and the applicant s tax for the year 1969-70 and 1970-71 is reduced to the amounts. Excess tax paid, if any, shall be refunded to the applicant according to law. This judgment be placed on the file of Revision No. 1313/74 and its copy be placed on the other revision.
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1975 (11) TMI 49 - HIGH COURT AT CALCUTTA
Valuation (Customs) under exemption notification - Estoppel ... ... ... ... ..... that the notice must comply with all the requirements of the relevant section. Section 28 of the Act does not require at least not expressly a statement of grounds on which the demand for payment of duty which has been short levied is founded. Moreover, it is abundantly clear from the answers to the show cause notice on December 26, 1968, that the petitioners were perfectly aware of the ground on which the demand was made. The contention of the petitioners that the notices should be quashed on the score that they do not disclose any basis for the claim must be rejected. 39. The petitioners complain that they had not been given sufficient opportunity of showing cause against the notices. The learned Judge by his order has given them a further opportunity. It is, therefore, not necessary for us to deal with that aspect of the matter. 40. In the view we have taken the appeal fails and is dismissed. There will be no order for costs. Sudhamay Basu, J. - I agree. Appeal dismissed
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1975 (11) TMI 48 - GOVERNMENT OF INDIA
Iron & Steel Products - Classification of excisable goods ... ... ... ... ..... variable length, usually square, a rectangular, hexagonal or circular in cross section and a flat is a bar of rectangular section with edges of controlled contour, the width being greater than the thickness . Thus the criterion is that the width should be more than the thickness. The Tariff Rulings of 1934 or of 1967 have not dealt with this aspect of the matter as well as the market convention. The party s products, however, conform to these requirements and are classifiable as flats and from that since according to this definition even flat is a variety of bar, the goods described as flat bars should be taken as flats only. 5. In these circumstances, in exercise of powers under section 36(2) of the Central Excises and Salt Act, 1944, the Government of India sets aside the above said order of the Appellate Collector of Central Excise, New Delhi and orders that tbe goods should be assessed to Central Excise duty in accordance with market nomenclature and commercial Parlance.
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1975 (11) TMI 47 - HIGH COURT OF GUJARAT AT AHMEDABAD
Ultramarine Blue - Civil Court's jurisdiction in excise matters ... ... ... ... ..... product on the footing that it is chargeable with duty under Item No. 14 (1) (5) of the Schedule I to the Act are quashed. Respondent No. 1 and the authorities concerned are directed to refund the amount of duty recovered by them as stated above, to the petitioners within three months from the date of this judgment. Respondent No. 1 should pay the costs of the petition to the petitioners and the respondents should bear their own costs. 40. At this stage, the learned advocates for the Union of India and the Central Excise authorities request that looking to the points involved in these matters, certificates of fitness for appeal to the Supreme Court may be granted under Article 133 (1) of the Constitution of India. Looking to the peculiar circumstances, of the case, we also feel that all these cases involve substantial questions of law of general importance and that these question need to be decided by the Supreme Court. The certificates as prayed for are, therefore, granted.
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