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Showing 81 to 100 of 142 Records
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1993 (5) TMI 66 - ITAT INDORE
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... ... ..... offices and stay there for long time are also required to take some snacks, etc., and as such the expenditure is incurred. It is also his contention that it is not possible to obtain vouchers from the taxi drivers and, therefore, such expenditure is supported by the vouchers prepared by the employees who have spent on conveyance. Thus, according to him, despite the fact that the accounts of the assessee-company are completely audited, there has been disallowance on general grounds without any specific and valid objection. Learned Departmental Representative, on the other hand, supported the orders of the tax authorities below. 32. The disallowance has no valid foundation. It is deleted. 33. Ground No. (v) This ground of objection is consequential in nature. The Assessing Officer is directed to recompute the profit under s. 115J in accordance with law after giving effect to the order of the CIT(A) and so also the order of the Tribunal. 34. In the result, the appeal is allowed.
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1993 (5) TMI 65 - ITAT INDORE
Depreciation, Allowance of ... ... ... ... ..... on money from assessee-company s Managing Director, Shri Ashok K. Patel and the provisions of section 68 is not attracted. We are unable to accept the contention of the ld. Authorised Representative that the provisions of section 68 are not attracted. Admittedly, the amount credited in the books of the assessee is cash received. The claim of the assessee that it is share application money does not take away the amount involved from the ambit of section 68. We have also gone through the order of the CIT(A) on the issue and we entirely agree with his reasoning that on the facts and circumstances of the case, the amount is nothing but a cash credit which remained unexplained. Endorsing the finding of the CIT(A), we dismiss this ground of appeal. 9. Last ground regarding disallowance of depreciation of Rs. 14,536 on factory building is not pressed. This is also discussed and decided against the assessee in paras 2 to 5 above. 10. In the result both the appeals are partly allowed.
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1993 (5) TMI 64 - ITAT INDORE
Unabsorbed Depreciation ... ... ... ... ..... ld be construed to mean the loss including depreciation and unabsorbed depreciation. 10. In view of above discussion, it is held that the computation of loss must necessarily include the amount of depreciation and unabsorbed depreciation. In the instant case, the loss being larger than the unabsorbed depreciation the assessee is entitled to set off of the amount of unabsorbed depreciation. In the instant case, the unabsorbed depreciation is also not fully absorbed and, therefore, the book profit needs to be taken at nil. 11. No additional tax is, therefore, leviable. Levy of additional tax is deleted. 12. Levy of interest under sections 234B and 234C of the Income-tax Act would be consequential. The Assessing Officer shall after modifying the assessment examine if at all interest under sections 234B and 234C is leviable. If such interest is leviable, he shall state his reasons for holding so. He shall modify the intimation accordingly. 13. In the result, the appeal is allowed
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1993 (5) TMI 63 - ITAT HYDERABAD-B
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... ... ..... meaning and consequently, they would be entirely different concepts from the term panchayat , be it a village panchayat or a town panchayat. The rule of ejusdem generis, relied upon by the Revenue to brings the panchayat under the category of any other name would also not apply since panchayats are a distinct genus by themselves. Panchayats cannot, therefore, be treated as municipalities under s. 2(14)(iii)(a) and, hence, sale of the impugned lands could not attract capital gains tax. 14. In the case before us, it bears repetition that the acquired land was situated in Palamaner town which is governed by the Panchayats Act and does not fall within any municipality, municipal corporation or cantonment board and, hence, the agricultural land fall outside the purview of s. 2(14) of the IT Act. The Revenue was, therefore, not justified in levying capital gains tax. We, therefore, uphold the order of the CIT(A), though for different reasons. 15. The Revenue s appeal is dismissed.
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1993 (5) TMI 62 - ITAT HYDERABAD-A
Salaries, Assessable As ... ... ... ... ..... g years relevant to these assessment years, the company was sustaining losses, and it never earned any profit. So also, the permission of APSSIDC/SFC was never obtained by the company or by the assessee. Further, while approving the appointment of the Managing Director, on monthly salary basis, the Central Government also made it very clear in para 5 on page 4 of the paper book that the General Body has got all the powers under sub-section (1) of section 309 to reduce the monthly remuneration. Thus, this Tribunal is thoroughly convinced with the argument of the learned counsel for the assessee that the salary did not become due and section 15(a) of the Income-tax Act does not apply automatically. On the facts and in the circumstances of the case, this Tribunal fully approves the order passed by the AAC. 20. In the result, this Tribunal fails to see any valid ground to interfere with the order of the AAC hence these appeals are found to be without force and they are dismissed.
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1993 (5) TMI 61 - ITAT DELHI-E
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... ... ..... addition of Rs. 32,800 made by the Assessing Officer is without any basis and, therefore, the same is deleted. Admittedly, there is no evidence that the assessee made any sale outside the books of accounts or the assessee did extract extra wool which is not shown in the books of accounts. In the absence of any evidence on this aspect no addition can be made. I, therefore, delete the addition made in the assessment order. 5. With regard to ground number 2 the amount was disallowed out of the total claim made by the assessee in respect of travelling, tour and cartage on the basis that part of the expenses could not be vouched. The Dy. CIT(A) held that the disallowance was reasonable. Before me no reference was made to this ground and considering the material placed before me I am inclined to uphold the disallowance. To this extent the appellate order is modified and the Assessing Officer is directed to revise the assessment order. 6. In the result the appeal is allowed in part.
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1993 (5) TMI 60 - ITAT DELHI-D
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... ... ..... igible business has been rightly arrived at Rs. 2,43,117. The third condition requires comparison of the amount utilised and 20 of the profit of the eligible business. The amount utilised is Rs. 72,667 and 20 of the profit of the eligible business is Rs. 46,423 (20 of Rs. 2,32,117) and these two figures need to be compared. The fourth of the condition is that the derivation of the amount to be allowed as a deduction from the income from profits and gains from business or profession. In this case, the amount utilised is Rs. 72,667 and 20 of the profits of the eligible business is Rs. 46,423, and lesser of the two figures, is obviously Rs. 46,423, which would rank for deduction. The CIT(A) had allowed deduction of Rs. 46,423. We, accordingly, uphold the order of the CIT(A), for allowing the deduction of Rs. 46,423 under the s. 32AB, which deduction is in accordance with the provisions of the law. In the result, the appeal of the Revenue is without any merit and hence dismissed.
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1993 (5) TMI 59 - ITAT DELHI-D
Assessee's Appeal, Assessing Officer, S. 13, Total Income ... ... ... ... ..... he ITO under section 220(3) to extend the time and that application was not rejected. Taking into consideration that fact and other circumstances of the case, the Tribunal has taken a view in favour of the assessee. These decisions are distinguishable on facts itself. 11. In view of our above discussion, we are of the opinion that the assessee had no good and sufficient reasons for not making the payment of taxes at the time of filing the return for seeking exemption under section 249(4). Therefore, we agree with the finding given by the CIT(A) on this point and we do not find any substance in the appeal. It will be pertinent to mention here that the assessee was asked to cooperate with the CIT(A) for expeditious disposal of the matter. However, the CIT(A) has noted about non-co-operation of the assessee in his order. The assessee was not in a position to controvert this fact. Therefore, the assessee does not deserve any leniency on this account also. 12. Appeal is dismissed.
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1993 (5) TMI 58 - ITAT DELHI-A
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... ... ..... further disallowance. After verifying the aforesaid facts, the CIT(A) proceeded to delete the addition. 21. After hearing both the parties, we find no good ground to interfere with the decision taken by the CIT(A). The action on the part of the ITO, in fact, amounts to a double disallowance since the assessee in its P and L account has debited interest to the tune of Rs. 97,102 which includes interest to directors amounting to Rs. 8,075. In its computation of income, it has disallowed 15 of the aforesaid amount, viz., Rs. 14,665. In other words, the aforesaid disallowance includes the interest of Rs. 8,075 paid to directors and no further disallowance was required to be made. The relevant ground in the appeal is, accordingly, rejected. 22. As regards the assessee s appeal, the learned counsel stated that he was under instructions to withdraw the same. After hearing both the parties, the said appeal is allowed to be withdrawn. 23. In the result, both the appeals are dismissed.
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1993 (5) TMI 57 - ITAT COCHIN
Agricultural Produce, Deduction In Respect, Export Business ... ... ... ... ..... rket. This definition is in relation to agricultural income and it cannot be extended to explain the meaning of primary agricultural produce used in section 80HHC of the Income-tax Act. The meaning of primary as per Chambers Twentieth Century Dictionary is first, original of the first order (e.g., in a system of successive branchings) first-formed primitive chief elementary fundamental belonging to first stages of education, elementary of a feather, growing on the manus relating to primaries . In the light of the above meaning given by Chambers Twentieth Century Dictionary, we hold that the dried cocoa seeds are not primary produce. In order to obtain dried cocoa seeds some process needs to be done for a week. Hence we hold that dried cocoa seeds is not a primary agricultural produce in contradistinction to cocoa fruits themselves. Thus the benefit of deduction under section 80HHC in respect of the dried cocoa seeds cannot be denied. Therefore, the appeal of the revenue fails
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1993 (5) TMI 56 - ITAT COCHIN
Account Books, Assessing Officer, Closing Stock, High Court, Levy Of Penalty, S. 10, Total Income
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1993 (5) TMI 55 - ITAT CHANDIGARH
High Court, Supreme Court ... ... ... ... ..... ion which is beneficial to the subject must be adopted. Even if it is assumed that the interpretation put by the Id. Standing Counsel is a reasonable interpretation, still the matter has to be decided in favour of the assessee because if a provision of the taxing statute can be reasonably interpreted in two ways, that interpretation which is favourable to the assessee has got to be accepted. This proposition of law is now well settled and even Shri Sawhney had no quarrel with this abstract proposition of law. 21 Taking into consideration the entire facts and circumstances of the case, we hold that the revenue authorities were not justified in bringing to tax the arrears of professional receipts of Rs. 6,14,400 and Rs. 7,34,930 in the hands of the assessee for assessment years 1990-91 and 1991-92 respectively after the assessee had discontinued his legal profession when he was elevated to the Supreme Court on 14th December, 1988. 22. In the result, both the appeals are allowed
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1993 (5) TMI 54 - ITAT BOMBAY-D
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... ... ..... mentioned the carried forward losses/allowances/reliefs of earlier years and for the above year. The issue involved in this ground has been dealt with by the learned CIT(A) in the following manner, viz. 8. The last ground of appeal is that the ITO had not mentioned the allowances and reliefs of carried forward losses in his order. No evidence was furnished before me that there was any mistake. In the ITO s action on this account, this objection is accordingly not accepted. The assessment order is silent on the point. Thus no case for our interference in this part of the impugned order has been made out. However, we would like to observe that in case the record shows that the assessee is entitled to any carry forward/set off of any losses under the provisions of law, it shall be entitled to seek appropriate rectification if so permitted by, and in accordance with, law. 9. In the result, the Departmental appeal is dismissed and the assessee s appeal is artly allowed as above.
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1993 (5) TMI 53 - ITAT BOMBAY-D
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... ... ..... 991) 94 CTR (SC) 210 (1991) 188 ITR 42 (SC) (3) Hindustan Steel Ltd. vs. State of Orissa (1972) 83 ITR 26 (SC) (4) Kanti Lal Purshottam and Co. vs. CIT (1986) 53 CTR (Raj) 19 (1985) 155 ITR 519 (Raj) (5) J. and J. Dechane vs. CIT (1990) 182 ITR 345 (AP) 8. In view of the above discussion, these two appeals partly succeed and are allowed in part subject to the following directions, viz (a) Fresh computation of cash transactions in respect of contravention of provisions of s. 269SS and 269T shall be made in the light of the provisions of these two sections. For this purpose the details furnished by the assessee at pages 122 to 127 of the paperbook shall also be taken into consideration and verified, and (b) After such recomputation, penalties equal to 50 per cent of the recomputed amount of the loans or deposits taken or accepted in case of s. 271D and of the recomputed amount of the deposits repaid in case of s. 271E shall be levied and recovered. Appeals allowed accordingly.
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1993 (5) TMI 52 - ITAT BOMBAY-D
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... ... ..... In that case, the assessee had also income from agriculture, which formed miniscule percentage which was not taxable, and the ITO had held that the part of the managing agency commission paid by the assessee was attributable to income which was exempt from tax. The Supreme Court, no doubt, decided the issue in favour of the taxpayer only for the reason that the managing agency commission was held to be expenditure incurred wholly and exclusively for the purpose of the business. In this case, the assessee has diverse business activities. Some of the activities yield income which is exempt from tax. To determine the exempted income, it would be necessary for the Assessing Officer to allocate expenses incurred by the assessee on various activities depending on whether such expenses had some nexus to the earning of the income or not. The decision relied upon by the assessee in this connection would not in any way advance its case. 5. In the result, the appeal is allowed in part.
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1993 (5) TMI 51 - ITAT BOMBAY-D
Charitable Or Religious Trust, Exemption Of Property Held Under ... ... ... ... ..... was taken by the Hon ble High Court in the case of Sarladevi Sarabhai Trust. On a reading of section 13(2)(a) and 13(2)(h), it transpires that a distinction has been drawn by the statute between loans and other investments. Section 13(2)(a) provides for a situation where income or property of the trust is lent to any interested person without adequate security or adequate interest or both. Section 13(2)(h) deals with a situation where funds of the trust are, or continue to remain, invested in a concern in which any of the interested person has a substantial interest. The adequate security or adequate interest was not disputed. We have noted that the trust advanced secured loans and the interest was charged according to the prevailing rates. In view of the above, we are of the opinion that the benefit of section 11 cannot be denied to the trust. We, therefore, decide these appeals in favour of the assessee and against the revenue. In the result, all the appeals stand allowed.
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1993 (5) TMI 50 - ITAT BOMBAY-D
Assessing Officer, Delay In Filing Return, Penalty Proceedings, Reasonable Cause ... ... ... ... ..... which the audit commenced and completed. It is for the assessee to have come out with reasonable cause which, in my opinion, it failed to advance. 12. I also do not find any merit in assessee s submission that no penalty for the delay in filing the return was initiated under section 271(1)(a) of the Act and, therefore, the penalty under section 271B should not be levied. The failure to obtain the report, which is required to be attached with the return, itself was a reasonable cause for the delay in furnishing the return and the question for determination in this case is for reasons for failure to obtain the report itself. Therefore, nothing turns on this. In my opinion, the assessee has not shown any cause for the failure to obtain the report within the specified time and, therefore, no benefit under section 273B of the Act can be given. Upon the whole, I uphold the order of the first appellate authority sustaining the impugned penalty. 13. The appeal falls. It is dismissed.
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1993 (5) TMI 49 - ITAT BOMBAY-D
Assessing Officer, Retrospective Effect, S. 10 ... ... ... ... ..... unt of tax deductible at source or collectible from the assessee introduced by that very Finance (No. 2) Act, 1991, cannot be given retrospective effect. 13. In view of the aforesaid discussion I hold that the time limit prescribed by Rule 37 is in excess of the power of rule-making authority and, therefore, has to be ignored. Applying the ratio of the decisions of the Supreme Court in K.I. Abraham s case I hold that in absence of any such time limit it is the duty of an assessee to furnish the return within a reasonable time limit and in the present case, the assessee furnished the return on 20-11-1989 much before the assessment was made and therefore in my opinion the assessee could be treated to have furnished the return within a reasonable time. That being so, the return filed by the assessee was within the requirement of section 206 and therefore the assessee could not be penalised under section 272A(2)(c) of the Act. I, therefore, cancel the penalty and allow the appeal
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1993 (5) TMI 48 - ITAT BOMBAY-C
Power To Rectify Mistakes ... ... ... ... ..... f the majority. In so doing the Bench can even if it so advised and considered desirable may re-apprise the whole issue and then consider aspects which were not considered before because the appeal cannot be considered to have been finally disposed of merely on making a reference to a Third Member on the point of difference of opinion to him. The appeal will have to be disposed of by the regular Bench in accordance with the majority opinion after hearing the parties. Having these limitations placed upon the Third Member I have to confine myself only to the question referred to me and that is naturally with reference to the question raised by the CIT in the reference application and that limitation also refrains me in re-framing the question so as to bring on par with the question raised by the Special Bench referred to by the learned Departmental Representative. 11. In view of the foregoing discussion, I find no merit in the application and the same is consequently dismissed.
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1993 (5) TMI 47 - ITAT BOMBAY-A
Non-resident Company ... ... ... ... ..... tative assessee as an agent of the non-resident company is necessary. Even if a person without being called upon to submit a return voluntarily submits a return as agent of a non-resident company, the necessity to pass an order recognising him as an agent cannot be dispensed with. Having regard to the express provision which creates a vicarious liability on the representative assessee, to be liable to tax the necessity to provide him with an order treating him as an agent of the non-resident becomes all the more important. Authority for this proposition is available in the following decisions CIT v. Kanhaya Lal Gurmukh Singh 1973 87 ITR 476 (Punj. and Har.) CIT v. Express Newspapers (P.) Ltd. 1978 111 ITR 347 (Mad.) Belapur Sugar and Allied Industries Ltd. In the instant case, no such order was passed by the Assessing Officer. This being so, the assessment order passed by the Assessing Officer has to be quashed and we order accordingly. 9. In the result, the appeal is allowed
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