Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1988)26ITD508(Hyd.)
1. This is an assessee's appeal relating to assessment year 1981-82 for which the valuation date was 31-3-1981. The question which falls for consideration is whether the assets of M/s. Universal Oxygen Company (hereinafter called the said firm) in which the assessee was a partner should be taken as per its balance sheet figures (which figures do not take into consideration any depreciation either granted in the income-tax proceedings or otherwise) or whether any adjustments are permitted to be made, more especially whether depreciation granted on the gas cylinders by the valuation date should be allowed to be adjusted while arriving at the value of the assets of the firm in order to determine the interest of the assessee therein by adopting the global valuation method. The assessee is a smaller HUF. It had 1/3rd interest in the said firm which deals in sale of gas cylinders. As per the balance sheet of the said firm as on 31-3-1981 it had held gas cylinders worth Rs. 29,70,725-80. Thi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1988)26ITD520(Hyd.)
1. The first item is with regard to the addition of Rs. 1,55,985 under Section 2(22)(e) by way of deemed dividend. The Income-tax Officer made an addition of Rs. 3,83,930. While working out the accumulated profits the Income-tax Officer has, among other items, included items such as research & development expenditure on building, plant and machinery of Rs. 2,95,360.2. On appeal, the CIT (Appeals) held that the Income-tax Officer was right in including the sum of Rs. 2,95,360 for the purpose of working out the accumulated profits. However, the assessee is entitled for deduction in respect of depreciation on the sum of Rs. 2,95,000. Thus, he confirmed the computation of the accumulated profits at Rs. 1,55,985.3. The learned counsel for the assessee did not contest the item of Rs. 82,000 relating to the building in research & development division.But, he strongly urged that the plant and machinery of the value of Rs. 2,12,360 installed in the research & development division w...
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