Mumbai Court September 1953 Judgments
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All India Groundnut Syndicate Ltd. Vs. Commissioner of Income Tax, Bom ...
Court: Mumbai
Decided on: Sep-04-1953
Reported in: AIR1954Bom232; (1953)55BOMLR970; [1954]25ITR90(Bom)
Chagla, C.J.1. The action of the Department as disclosed by the facts submitted to us on this reference is both unjustifiable and entirely indefensible.2. We are concerned, with the assessment year 1948-49 and the assessee before us is the All India Groundnut Syndicate. In that year of assessment the assessee company sought to set off loss, which it had incurred in the previous years under section 24 (2) of the Income-tax Act. The taxing authorities permitted the assessee company to set, off the loss in respect of certain years but disallowed the claim with regard to the years 1944-45, 1945-15 and 1946-47, and it is in respect of this refusal on the part of the taxing authorities to grant the relief sought by the assessee company that the question has been submitted to us for our decision.3. It appears that in the assessment year 1944-45 the assessee incurred a loss of Rs. 16,925, and they made a return to that effect, and the Income-tax Officer passed an order that he took the income ...
Commissioner of Income-tax and Excess Profits Tax, Central Bombay Vs. ...
Court: Mumbai
Decided on: Sep-04-1953
Reported in: AIR1954Bom277; (1953)55BOMLR973; ILR1954Bom414
Chagla, C.J.1. This reference raises a very short question with regard to what constitutes writing off of a bad debt or doubtful debt within the meaning of Section 10(2)(xi).2. The assesses claimed as a permissible deduction a sum of Rs. 66,483 in the relevant year, and his case was that this amount represented debts which were irrecoverable, and it is not in issue that these debts were irrecoverable. The only point urged by the Department before the Tribunal was that they had not been written off as required by the section and therefore they were not permissible deductions.3. Now, what Section 10(2) (xi) requires is that the amount must be actually written off as irrecoverable. What the assessee did in this case was that he debited two amounts of Rs. 57,358 and Rs. 9,125 to the profit and loss account. Rs. 57,358 was credited to Asami Khad Khata account, which means persons who have become insolvent or who have failed to pay, and the entry itself shows that inasmuch as these persons h...
Commissioner of Income-tax, Bombay South Vs. Ramnarayan Rajmal
Court: Mumbai
Decided on: Sep-03-1953
Reported in: [1953]24ITR442(Bom)
Chagla, C.J. 1. The Income-tax Department is known to cast itsnet very wide in order to collect as much tax as possible. To the extent that its activities are legal and supported by the law, we have given every encouragement to the Department, but this is a striking case where there does not seem to us the slightest justification for the attempt made by the Department to collect the tax from this particular assessee. 2. The assessee is an agent of a non-resident of the Hyderabad State. The assessee admitted that he was the agent of the non-resident in respect of certain transactions effected by the non-resident principal in taxable territories and these transactions constituted a business connection between the agent and the non-resident. But what was contended by the taxing Department was that the agent was liable to pay tax in respect of all the income of the non-resident under Section 42 although the non-resident had done business through other agents in respect of which the assesse...
Ramnarayan Rajmal Vs. Commissioner of Income-tax, Bombay South, Bombay
Court: Mumbai
Decided on: Sep-03-1953
Reported in: AIR1954Bom237a; (1953)55BOMLR966
Chagla, C.J.1. The Income Tax Department is known to cast its net very wide in order to collect as much tax as possible. To the extent that its activities are legal and supported by the law, we have given every encouragement to the Department, but this is a striking case where there does not seem to us the slightest justification for the attempt made by the Department to collect the tax from this particular assessee.2. The assessee is an agent of a non-resident of the Hyderabad State. The assessee admitted that lie was tne agent of the non-resident in respect oi' certain transactions effected by the nonresident principal in the taxable territories and these transactions constituted a business connection between the agent and the non-resident. But what was contended by the taxing Department was that the agent was liable to pay tax in respect of all the income of the non-resident under Section 42 although the non-resident had done business through other agents in respect of which the ass...
Dharamdas Hargovandas Vs. Commissioner of Income-tax, Bombay City
Court: Mumbai
Decided on: Sep-03-1953
Reported in: AIR1954Bom249; (1953)55BOMLR994; ILR1954Bom409; [1954]25ITR133(Bom)
Chagla, C.J. 1. A rather unusual case arises for our consideration on this reference. The assessee had at the material date, which is April 3, 1047, a sum of Rs. 1,00,000 deposited with the Mahalaxmi Silk Mills, Ltd., Bhavnagar. The joint account was in the name of the assessee and his brother and it is established that the assessee and his brother were the owners of this amount. Ths assessee and his brother purported to lend this sum of Rs 1,00,000 to one Harkison Ratilal and Dilipkumar Trikamlal who executed promissory notes in their favour. On this very clay, i.e. April 3, 1947, when the promissory note was executed by Harkison Ratilal and Dilipkumar Trikarnlal, in the books of account of the Mahalaxmi Silk Mills, Ltd., Bhavnagar, the sum of Rs. 1,00,000 was debited to the assessee and his brother and on the same day the New Mahalaxmi Silk Mills, Ltd., in Bombay credited this sum of Rs. 1,00,000 in the name of Harkison Ratilal and Dilipkumar Trikamlal.Therefore, in appearance the tr...
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