9911796707
TMI Blog1953 (1) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1945-46, the applicant was assessed in the capacity of an individual. His sources of income were from house property, share of profits in the partnership firm styled as M/s. L. N. Gadodia&Co., and his receipts from the business run in the name of Kanpur Cotton Mills retail shop which he used to receive through L. N. Gadodia&Co. with the following directions :-- '' In regard to the surplus disclosed on ist year's working of the retail cloth and yarn shop, we now have to advise you that it has been decided by the corporation that half of the amount should be remitted to the Kanpur Cotton Mills, and out of the remaining half it is desired that you remit the full share of remuneration due to the local partner and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appears that both the appellant and Pt. Sheo Nath Sharma estimated their income for the assessment year 1945-46 treating the said agreement to be valid and enforceable between them. The Income-tax authorities however as well as the Tribunal held the agreement dated 14th November, 1942, to be not a valid and binding arrangement and treated the payments made to Pt. Sheo Nath Sharma as not being a business expenditure, allowance for which could be made under Section 10 (2) (xv) of the Income-tax Act and added this inadmissible expenditure to the income of the applicant. As the tax paid by the applicant on the basis of his estimated income under Section 18A (2) of the Income-tax Act was less than 80% of the tax determined in the final regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s contention before the Tribunal was that the estimate as made by him was a bona fide estimate as he entertained an honest belief that such part of his receipts as related to the Kanpur Cotton Mills retail cloth shop and such payments as he made to Sheo Nath Sharma were not taxable in his hands and that is why he in good faith filed a low estimate of his income and therefore no penal interest should have been imposed on him. The Departmental Representative however in his reply urged that the provisions of sub-section (6) of Section 18A provided that the interest that has to be levied on an assessee who files a low estimate of his taxable income has to be levied irrespective of the fact whether low estimate made was bona fide or otherwise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied draft statement of the case. The applicant has raised a number of objections which are in the nature of grounds of appeal against the findings of the Tribunal and if accepted would involve the turning down of the Tribunal's findings. We, therefore, reject these suggestions and submit the draft statement to the High Court as our final statement. B. L. Gupta, for the assessee. S. C. Das, for the Commissioner. JUDGMENT MALIK, C.J.― Mr. Das on behalf of the opposite party has raised a preliminary objection and has pointed out that the order passed by the Income-tax Officer was under Section 18A(6) of the Indian Income-tax Act. The assessee, having paid in advance less than eighty per cent. of the tax determined on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
