Court : Chennai
Reported in : [1976]37STC547(Mad)
V. Ramaswami, J.1. For the assessment year 1967-68 the assessee did not submit any return on the ground that he was exclusively dealing in the product of country oil chekkus. On a surprise inspection certain bills were recovered of which one of them showed a receipt of Rs. 162 for groundnut kernel. The assessing officer was of the view that this slip related to a sale transaction of groundnut kernel and that, therefore, the assessee would not be a dealer dealing exclusively in the products of country chekkus and that therefore the exemption under Section 17 of the Tamil Nadu General Sales Tax Act, 1959, in respect of sale of such products of country chekkus by persons owning the same is not available to the petitioner. He thereafter proceeded to assess him on an estimated turnover. He also levied a penalty of 1 1/2 times the tax due under Section 12(3) of the Act.2 .On appeal the Appellate Assistant Commissioner considered that the anamath slip recovered could not be considered to be a...
Tag this Judgment!Court : Chennai
Reported in : [1976]38STC587(Mad)
V. Ramaswami, J.1. The point that arises for consideration in this case is as to whether fried groundnut kernel is an oil-seed within the meaning of item 6 of the Second Schedule to the Tamil Nadu General Sales Tax Act. On the ground that the assessee after purchasing the groundnut kernel fried the same and sold it, a turnover of Rs. 25,396.20 relating to sale of fried groundnut was subjected to multi-point tax at 2.5 per cent by the assessing officer. This order was confirmed by the Appellate Assistant Commissioner. But, on further appeal, the Tribunal was of the view that even after frying, the characteristics of groundnut kernel were not lost and that, therefore, the turnover will have to be deleted from the assessment. Questioning the view of the Tribunal, the revenue has filed this revision petition.2. Item 6 of the Second Schedule to the Tamil Nadu General Sales Tax Act, as it stood in the relevant assessment year 1966-67, reads as follows :Serial Description of Point of Rate ofN...
Tag this Judgment!Court : Chennai
Reported in : [1976]38STC590(Mad)
V. Ramaswami, J.1. The assessee was a tanner and a registered dealer under the Tamil Nadu General Sales Tax Act. He informed the commercial tax authorities that he had stopped business by his letter dated 21st March, 1964. But on a surprise inspection made on 9th July, 1966, it was found that the petitioner-assessee did not stop his business on 21st March, 1964, but continued the same even thereafter and was actually carrying on business on the date of surprise inspection. The officer also recovered some anamath accounts from his place of business. The petitioner did not file any return in form A-l for the assessment year 1965-66 in spite of the fact that his accounts were summoned from the beginning of the year. As he did not produce the accounts in spite of repeated summons, a notice was issued on 7th September, 1966, proposing to assess the petitioner on a taxable turnover of Rs. 7,27,501.14 on the basis of the anamath accounts recovered. Thereafter the petitioner filed a return on ...
Tag this Judgment!Court : Chennai
Reported in : [1977]109ITR451(Mad)
Ramaswami, J. 1. The assessee is a private limited company carrying on business in the manufacture and sale of yarn. In the assessment proceedings relating to the assessment year 1966-67, corresponding to the year ending March 31, 1966, they claimed to capitalise their pre-production, overhead and other expenditure to the extent of Rs. 2,46,830 and claimed depreciation and development rebate on such capitalised amount. This was on the basis that they were necessary expenditure incurred by the assessee in the purchase, supervision and erection of the machinery and construction of the building. The Income-tax Officer rejected this claim on the ground that in the absence of a definition the words 'actual cost' will have to be understood and given its ordinary meaning and, if so understood, it would include only direct expenditure incurred for the purchase and erection of the machinery or the cost of construction of the building and it would not include any indirect expenditure. On appeal ...
Tag this Judgment!Court : Chennai
Reported in : (1976)1MLJ288
V. Sethuraman, J.1. The plaintiffs, who are the appellants and who are the father and sons filed a suit for declaration of title, injunction and possession in respect of four items of properties situated in the Pallapatti Zamindari in Salem. The lands originally formed part of Gundu Chetty Eri. In 1915 or 1916 a railway line was constructed to the south of these properties, with the result the flow of water towards these lands was interrupted. According to the plaintiffs these lands ceased to be the Eri land since then. The four items are in T.S. No. 7/3 measuring 10 cents; T.S. No. 7/4 measuring 19 cents. T.S. No. 7/5 measuring 22 cents and T.S. No. 7/9 measuring 67 cents. The father of the plaintiff had a rice mill in T.S. No. 6 and these lands were acquired from the Zamindar on 19th December, 1938. A receipt was passed for Rs. 649 paid by cheque for compensation, for the land, value for patta No. 152 of Pallapatti village. It may be mentioned herein, that the rice mill is situate in...
Tag this Judgment!Court : Chennai
Reported in : (1976)2MLJ184
T. Ramaprasada Rao, J.1. The defendant in O.S. No. 36 of 1968 on the file of the Court of the Subordinate Judge of Nagapattinam is the appellant. Under Exhibit A-1 , dated 16th December, 1904, Sikkandar Rowther, the common ancestor of the parties before us, executed a deed of Wakf endowing considerable agricultural properties, both Nanja and Punja of an extent of about 179.17 acres for the purpose of performance of certain charities and incidentally directing themuthavalis functioning under the Wakf deed to divide 6/16 of the net income after expending for the charities amongst his own descendants. The balance of 10/16th share of the net income was to be spent towards the performance of moulooth on a prescribed date at a prescribed place at which the prescribed quantity of rice pulav should be cooked for distribution among the poor, the relatives and the friends. Similarly, a moulooih for the distribution of food to all Muslims and miskins present at the Nagore Andavar Vasal should be ...
Tag this Judgment!Court : Chennai
Reported in : [1976]104ITR458(Mad)
Ramanujam, J.1. The assessee is a limited company carrying on business of manufacture and sale of sugar. In the assessment year 1958-59, corresponding to the accounting year ending May 31, 1957, the assessee claimed as an allowable expenditure a sum of Rs. 16,854 paid to its auditors by way of reimbursement of the expenses incurred by them for defending certain proceedings initiated against them by a shareholder of the company. The Income-tax Officer disallowed the said claim on the ground that the expenditure is not necessary for the purpose of carrying on the business of the assessee and of earning the profit. On appeal, the Appellate Assistant Commissioner held that the expenditure has been rightly disallowed by the Income-tax Officer. When the matter went before the Tribunal, it took the view that as the dispute between the auditors and the shareholder in respect of which the expenditure has been incurred having flowed from the employment of the managing agent which was necessary f...
Tag this Judgment!Court : Chennai
Reported in : (1976)2MLJ314
T. Ramaprasada Rao, J.1. Three suits were tried together by the II Additional Judge, City Civil Court, Madras, but we are here concerned with O.S. No. 2738 of 1968. This suit was filed by the Indian Bank on the foot of two mortgages Exhibits A-1 and A-4 dated 27th April, 1951 and 27th June, 1951. Under these mortgages the first defendant Fathimunnissa Begum purported to mortgage the land and the superstructure on it compendiously described in the schedule to the plaint as house, ground and premises bearing old door No. 354, new door No. 37, Poonamallee High Road, Aminjikarai, Madras, bearing survey No. 70/5 in the Registration District of Madras-Chingleput and Sub-registration District of Sembium. In connection with the said two mortgages, two promissory notes Exhibits A-2 and A-3 were also executed by the first defendant and her father. The bank's case is that they were satisfied on inspection of the title deeds produced by the first defendant in relation to the suit property that she...
Tag this Judgment!Court : Chennai
Reported in : [1976]38STC223(Mad)
V. Ramaswami, J.1. The assessees in this batch of cases are dealers in cloth, cotton yarn, dyes and chemicals carrying on business at Coimbatore. They are also exporters and importers of cotton, cotton yarn, dyes and chemicals, In the returns for the assessment years 1960-61 to 1965-66 in respect of a portion of turnover relating to sales of dyes and chemicals they contended that the sales are exempt as import sales. They contended that the sales were effected on forward or afloat basis, that the importation of those goods were made by the Radha Dyeing Factory, hereinafter called as the purchasers, by paying the value of the goods including customs duty and that the assessees acted only as the agents of the purchasers to whom the goods were sold. In this connection, they relied on a preliminary agreement between them and the purchasers as evidenced by their letter dated 15th March, 1960, and later a formal agreement dated 7th April, 1961. The facts relating to these turnovers as eviden...
Tag this Judgment!Court : Chennai
Reported in : (1977)1MLJ107
M. M. Ismail, J.1. The defendant in O.S. No. 138 of 1967, on the file of the Court of the Subordinate Judge, Dindigul, who succeeded before the trial Court, but lost before the first appellate Court, is the appellant herein. The respondents instituted the suit for recovery of a sum of Rs. 9,339.90 under the following circumstances.2. Admittedly the respondents are the owners of a theatre known as 'Alagesan Theatre' and they were having a G Form licence for exhibiting cinematograph films in that theatre. Under Exhibit A-6 dated 11th April, 1968, an agreement of lease was entered into between the respondents on the one hand and the appellant and a partner of his named Seevalan Shahul Hameed, on the other for taking the said theatre on lease for exhibition of the cinematograph films. This document contained a number of clauses, one of which provided for the respondents getting the C Form licence transferred in the name of the lessees, as well as the lessees alone being liable to the autho...
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