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Showing 101 to 120 of 243 Records
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1986 (2) TMI 175
Appellate Tribunal’s powers ... ... ... ... ..... pondent to this Tribunal was the sequel. 4. (a) Admittedly, the notice to show cause was not issued to any of the parties now sought to be impleaded. Nor were they required to be impleaded at any stage prior to the instant application in second appeal before the Tribunal. (b) The jurisdiction for the adjudication as well as the scope of the enquiry is circumscribed and conditioned by the allegations in the notice to show cause. At the stage of second appeal neither the scope of the enquiry nor the jurisdiction for the enquiry can be enlarged to bring in parties other than the one to whom the notice to show cause was originally issued. (c) To refute the case of the Appellant, any of the parties now sought to be impleaded could have been examined as witnesses without, necessarily impleading them as parties. Not having chosen to do so, the Respondent is not to be given another opportunity to make good the lapse. The application is without any merits and is accordingly dismissed.
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1986 (2) TMI 174
Refund claim-Time limit ... ... ... ... ..... able to establish this, they should succeed on the question of limitation and their claim could be dealt with on merits by the proper officer. This is the view which brother Harish Chander proposes to take in para 19 of his order, and I agree with him and hold that our order in this case should be on the basis of this view. ORDER 26. emsp In accordance with the judgment of the majority of the Members who have heard the appeal, the matter is remanded to the concerned Assistant Collector for decision. He should decide the question of limitation after giving the appellants an opportunity to show that a practice existed in the Madras Central Excise Collectorate at the relevant time whereby refund applications were being received by the Range Superintendent on behalf of the Assistant Collector. In case he holds that such a practice existed, it would follow that the application in this case was made within time. He should in that case deal with the refund application on its merits.
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1986 (2) TMI 153
... ...
... ... ..... annot also be equated with the circular issued by the Board so that it can be held as binding on the department. We have, as we are bound to, interpreted the word lsquo purchase rsquo according to law and have, therefore, decided the case against the assessee-co-operative society. However, having regard to the fact that even the Commissioner, at one time, thought that the income of a co-operative society from lifting and supplying water by a society, like the assessee, would be exempt from tax, it is a matter about which the CBDT may, if it considers appropriate, take a decision. So far as the Tribunal is concerned, it has to take a legal view of the matter. It is for this reason that we have held the income of the assessee co-operative society as not exempt. 25. Accordingly, we set aside the order of the AAC and restore that of the ITO holding that the claim of the assessee of exemption under section 80P(2)(iv) was not tenable. 26. The department rsquo s appeals are allowed.
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1986 (2) TMI 150
Revision, Orders Prejudicial To Revenue ... ... ... ... ..... ecessary, takes the wind out of the argument on behalf of the assessee that there is double assessment or that there is likely to be any hardship. 33. We have carefully examined the recitals of the trust deed and the facts placed before us. We have taken into account the painstaking arguments of both the sides on the factual as well as legal aspects of the matter. The issue involved in the instant appeal is whether the AOPs of the beneficiaries is assessable for tax as an AOP. In view of the above discussed facts and the case law, in our opinion, there is no AOPs of the beneficiaries assessable to tax. In our considered opinion, the action taken by the Commissioner under section 263 does not stand nor there is any error in the order of the ITO insofar as it prejudicial to the interest of the revenue. The decision in Trustees of Anmandani Family Trust s case need no review even after considering the new arguments. We are satisfied to allow the appeal and the appeal is allowed.
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1986 (2) TMI 149
Trust, Charge Of Tax ... ... ... ... ..... uit the convenience from tax point of view. It may be mentioned here that the same memorandum states that the provision is applicable for the assessment year 1980-81. The CBDT s instructions may or may not have gone beyond the scope of the provision. The observations of the Commissioner are not all regarding the binding nature of the instructions. The question is whether the ITO ever applied his mind and whether he was even aware of the CBDT s circular. The question whether the CBDT can issue a circular of the type referred to by the Commissioner is now academic as we have held the above view independently of the circular. Whether instructions on a point of law are binding or not, the ITO could not have brushed aside the opinion and proceeded as if they did not exist. If he was aware of the contents of the circular the last that was expected is expression of respectful disagreement or reference under section 144A. Neither course is adopted by the ITO. 29. Appeal is dismissed.
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1986 (2) TMI 145
... ...
... ... ..... that the assessee could not get control of those portions as and when it was required by the assessee. Without these finding it was difficult to differ from the decision of the Tribunal, we hold that the entire property learned Tribunal in the assessee s case mentioned above. Respectfully following the decision of the were under self occupation of the assessee and to be considered under s. 23(2) of the IT Act, 1961. As we have already held the net income shown by the assessee in respect of property was according to s. 23(2) on the basis Municipal Valuation which was decided as correct indication of the AlV by the Hon ble High Court of Patna in the assessee s case for the asst. yr. 1969-70, the income shown and assessed by the ITO in original assessment cannot be said to be under-assessed. It is, therefore, not necessary for us to turn on the part of the controversy of applicability of s. 147(b) as there is no under assessment in this case. The appeal is, therefore, dismissed.
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1986 (2) TMI 143
Deductions, Income Of A Co-operative Society ... ... ... ... ..... ural operations. The claim of the assessee for exemption from income-tax was negatived by the ITO, but upheld by the AAC and the Tribunal. The application of the revenue for reference of certain questions of law for the opinion of the High Court having been rejected, the department filed an application to the High Court for directing the Tribunal to stage a case and refer the questions of law Held, that the Tribunal was justified in its view that the benefit of section 80P would be available to the assessee and, hence, no question of law could be said to arise out of the order of the Tribunal. On the basis of the ratio laid down in the aforesaid case, we are of the opinion that though the weaver members are not the members of the apex society, since they are the members of the primary societies who are in turn members of the apex society, the assessee is entitled to exemption under section 80P(2)(a)(ii). 8. In the result, the appeals filed by the assessee are allowed in part.
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1986 (2) TMI 140
Advance Tax ... ... ... ... ..... ional ground filed before the Commissioner (Appeals) was maintainable. All the three decisions of the Madras High Court from which we have quoted above, are, directly in point and are in favour of the assessee. In the present case, the assessee had filed an appeal objecting to the disallowance of its claim under section 80HH of the Act. This was the main ground of appeal before the Commissioner (Appeals). It was only by way of an additional ground the assessee had taken the non-granting of interest under section 214 on the amount of tax refunded to it by the ITO. Therefore, we respectfully follow the three decisions of the Madras High Court in the cases of Rajyam Pictures, City Palayacot Co. and Triplicane Urban Co-operative Society Ltd. and hold that the additional ground raised by the assessee before the Commissioner (Appeals) was competent and maintainable in law and was rightly admitted and allowed by the Commissioner (Appeals). 13. In the result, the appeal is dismissed.
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1986 (2) TMI 138
... ...
... ... ..... the CIT(A), which is perfectly in conformity with law. The revenue cannot dispute the power of the CIT(A) as an appellate authority to examine and adjudicate upon the claim of the assessee against levy of interest under s. 215 in an appeals challenging the assessment under s. 246(c) of the Act, as held by the Madras High Court in the case of Rajyam Pictures vs. Addl. CIT 1978 CTR (Mad) 319 (1978) 174 ITR 847 (Mad). In fact, the CIT(A) has taken note of all the relevant facts that ought to be considered under s. 40 and also the fact that the advance tax paid by the assessee was less than the total tax payable by the assessee as per the assessment order. It is for this reason that the CIT(A) has sustained the levy of interest to the extent of 25 instead of deleting to entire amount of interest levied by the ITO. The Department can have no grievance against this order of the CIT(A). Accordingly, we confirm his order on this point also. 9. In this result, the appeal is dismissed.
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1986 (2) TMI 136
Expenditure On Scientific Research ... ... ... ... ..... classifier will not, in our opinion, amount to scientific research. 6. Similar is the position as regards the dust control equipment. The assessee is not engaged in any scientific work or discovering new methods for reducing the impact of dust pollution. The dust control equipment used by the assessee simply indicates the level of asbestos dust and if the dust contained in the atmosphere exceeds the tolerance level, the assessee douches the factory premises with water to reduce floating dust particles. These activities do not, in our opinion, amount to any scientific research carried on by the assessee which may lead to or facilitate the extension of its business. 7. We, therefore, conclude that the assessee is not entitled to claim relief under section 35(1)(iv) read with section 43(4)(iii) in respect of the fibre classifier and the dust control equipment. 8. In the result, the appeal filed by the assessee is dismissed while the appeal preferred by the department is allowed.
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1986 (2) TMI 134
... ...
... ... ..... did not proceed according to law. We, therefore, direct that the ITO shall make a fresh assessment in accordance with law. Such an assessment should not be time barred in view of the Rajasthan High Court decision in the case of J.P. Sharma above quoted, in as much as it would be in pursuance of an order passed by the Tribunal. It needs be pointed out that while the IT Act contains provisions for extending limitation in case of assessment order made, as a result of any decision of the appellate authority, there is no corresponding provisions in relation to levy of penalties, but the Hon ble Rajasthan High Court has extended that principle in relation to penalties as well. Therefore, there is absolutely no reason why because of a mistake here and there, the present assessment proceedings which were being duly conducted according to law, should be held to be time barred because of the intervening irregularity. 6. In the result the appeal is allowed for statistical purposes only.
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1986 (2) TMI 133
... ...
... ... ..... estimated by the WTO on the relevant valuation date and the estimation can never be equal to the claim made by the claimant. In this case the High Court has already decided the compensation in a particular way and since the State of Punjab and Haryana was not in appeal against the award given by the High Court, it can be safely presumed that the amount had become final. In the litigation before the Supreme Court that the assessee is pursuing the compensation can either be enhanced further or rejected but there is no possibility of it being reduced. In the circumstances the compensation as awarded by the High Court must be the compensation that should have been evaluated as the market value on the relevant valuation date and assessed for the purpose of wealth tax and not the amount of compensation claimed by the assessee before the Supreme Court. In the circumstances the view taken by the AAC is perfectly correct and we uphold it. 6. In the result, these appeals are dismissed.
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1986 (2) TMI 132
Business Disallowance, Interest Paid By Company ... ... ... ... ..... shall continue to be governed by the rules applicable at the time of such deposit or renewal as the case may be. 20. According to the abovesaid Explanation, the terms of the deposit received before coming into force of the said rules are to be governed by the terms and conditions settled at the time of deposit or at the time of renewal, as the case may be. Since no security was furnished or offered for the deposits received before 1-3-1978, the deposits received before that date, i.e., before the creation of the charge cannot be treated as secured loans within the meaning of Explanation (b)(ix) to sub-section (8). 21. In view of the above findings deposits received before 1-3-1978, are to be treated as unsecured deposits and the deposits received after creation of the charge are to be treated as secured deposits. Thus, the disallowance has to be recalculated and, therefore, we send back the case to the ITO for the purpose. 22. In the result, the appeal stands partly allowed.
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1986 (2) TMI 131
... ...
... ... ..... assessee itself offered Rs. 1,500 for disallowance. However, the ITO disallowed 1/4th of the total car expenses as not relating to business. So also, he disallowed 1/4th of the depreciation allowable on W.D.V. of the car. These disallowances were confirmed by the CIT(A). When ascertained, the learned counsel for the assessee submitted to us that in the immediately preceding assessment year, out of total car expenses of Rs. 5,126, the ITO disallowed Rs. 1,280 on the ground that it does not pertain to business purposes. No appeal was preferred. As there was no change in the position in this year when compared to the immediately preceding assessment year in which year 1/4th disallowance of car expenses was made without demur, there is no reason for us to interfere with a similar disallowance made during the present assessment year. Hence we confirm the disallowance of Rs. 4,698 towards car expenses and Rs. 345 toward depreciation. 14. In the result, the appeal is partly allowed.
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1986 (2) TMI 130
... ...
... ... ..... export business but also for various other business activities of the appellant. He had taken 50 per cent of their salary as relating to export business and out of it he had excluded 90 per cent towards activities referred to under s. 35B(1)(b)(iii) as this was an expenditure in India and after 31st March, 1978. Therefore, he had taken a balance of Rs. 1,137 only as entitled for weighted deduction. Page 7 of the paper book discloses the names of the export executives as well as salary paid to each of them. It is submitted before us that these four proposes to whom the salary was paid exclusively looked after the export work of the assessee firm. The Bombay Special Bench in J. Hemchand rsquo s case held that 75 per cent of the salary paid to the persons exclusively handling export business would be entitled for weighted deduction. We follow the same and hold that 75 per cent of Rs. 22,462.50 should be allowed for weighted deduction. In the result, the appeal is partly allowed.
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1986 (2) TMI 129
... ...
... ... ..... . (2) of s. 36 would be rendered negatory. We have looked into this provision. We consider that the purpose of this provision is to allow the bad debt even in an year when it has not been written off. A particular assessee might be under the reasonable and honest belief that a debt or a part thereof has become bad in a particular previous year and the amount is written off in that previous year. But the facts relevant might indicate that the debt had become bad in another previous year which is either prior of subsequent, to the previous year in which the debt is written off. These two provisions only authorise the allowance of the bad debt in such cases that is, even where the debt is not written off in the year in which the debt is to be allowable as having become bad in fact. 10. In view of the above, we would uphold the claim of the assessee for the deduction of Rs. 60,851 as bad debt. The ITO is directed to allow this and modify the assessment. 11. The appeal is allowed.
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1986 (2) TMI 128
Business Expenditure, Year In Which Deductible ... ... ... ... ..... ales tax liability. The ratio in the above cases squarely applies the instant case. The decision of the Supreme Court in Kedarnath Jute Mfg. Co. Ltd. s case has been considered in the above.two decisions. The decision of the Madras High Court in V. Krishna s case is a case where no provision has been made in the accounts. It is on those facts the Madras High Court held that the assessee s claim for deduction would arise for consideration either in the year in which the assessee accepts the liability or in the year in which the amount is paid. In the instant case, the provision has been made for the sales tax liability. Thus, the above case is distinguishable. 28. Thus, in our view the provision of Rs. 2,23,588.32 and Rs. 1,30,870 made in the accounts in respect of sales tax liability for the assessment years 1974-75 to 1981-82 is allowable as deduction in the assessment year 1981-82. 29. In the result, the assessee s appeal is allowed and the departmental appeal is dismissed.
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1986 (2) TMI 127
Remission Or Cessation Of Liability, Business Income ... ... ... ... ..... e. However, the ITO disallowed one-fourth of the total car expenses as not relating to the business. So also, he disallowed one-fourth of the depreciation allowable on written down value of the car. These disallowances were confirmed by the Commissioner (Appeals). When ascertained, the learned counsel for the assessee submitted to us that in the immediately preceding assessment year, out of total car expenses of Rs. 5,126, the ITO disallowed Rs. 1,280 on the ground that it does not pertain to business purposes. No appeal was preferred. As there was no change in the position in this year when compared to the immediately preceding assessment year in which year one-fourth disallowance of car expenses was made without demur, there is no reason for us to interfere with a similar disallowance made during the present assessment year. Hence, we confirm the disallowance of Rs. 4,698 towards car expenses and Rs. 345 towards depreciation. 14. In the result, the appeal is partly allowed.
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1986 (2) TMI 126
... ...
... ... ..... t and the written down value shall be chargeable to income-tax as income of the business or profession of the previous year in which the money payable became due. A clear reading of the above provision indicates that the insurance amount received in respect of the expenditure incurred by the assessee for the damage of the lorry on account of the expenditure cannot be taken into consideration in computing the profit under s. 41(2). The observations at page 2071 Sampath Iyengar on Law of Income-tax relied on by the ld. Departmental Representative would apply only to cases of discard, demolition or destruction of the depreciable asset but not to a case of sale of the depreciable asset. We restore this matter to the file of the ITO to work out the computation of the profit under s. 41(2) as indicated in the above provision without taking into account the amount received from the insurance company. 7. In the result, the appeal is treated as partly allowed for statistical purposes.
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1986 (2) TMI 125
Depreciation, Allowance of, Business Expenditure, Allowability of ... ... ... ... ..... Commissioner of Income tax (Appeals) was justified in allowing the same. 8. The next ground is against the direction of the Commissioner of Income-tax (Appeals) to compute the loss and carry forward the same. The assessee filed a loss return on 03-07-1982 as against the due date of 30-06-1981. Since return was filed beyond time under section 139 (1) the Income-Tax Officer refused to carry forward the business loss as computed in this assessment year. On appeal, the Commissioner of Income-Tax (Appeals) directed the Income-tax Officer to recompute the total loss as per his finding and carry forward the business loss available under section 72(1) of The Income Tax Act. 9. We have heard both the parties. This ground is covered by the Order of the Tribunal in ITO v. Ratanlal Bhangadia (1984) 10 ITD 182 (Hyd.) which is in favour of the assessee. Following the same, we uphold the order of the Commissioner of Income-Tax (Appeals). 10. In the result, the Appeal fails and is dismissed.
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9911796707
