Mumbai Court February 2000 Judgments

R.P. Mehta and Hitesh R. Mehta Vs. Commr. of Customs

Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Mumbai

Reported in: (2000)(70)ECC596

1. These three appeals, each against the common order of the Collector.In that order Collector has found that R.P. Mehta and H.R. Mehta were responsible for removal of a quantity of nylon cloth from their 100% EOU licensed for making umbrellas and that part of the cloth had been removed to R.P. Industries, where it was seized. He ordered confiscation of this cloth and imposed penalty of Rs. 25,000 on each appellant. Appeal No. C/669/90 is by the department, seeking enhancement of the redemption fine fixed by the Collector in lieu of confiscation of the fabric and penalty imposed on R.P. Mehta, H.R.Mehta.2. We shall first deal with the appeals of the two partners of the 100% EOU. The contention on their behalf is that there is no evidence to show that any quantity of fabric was removed from the bonded warehouse.(Shortage of fabric is admitted and duty which is already paid on the goods found short is not the subject-matter of these appeals). It is contended that the fabrics were kept a...

Deputy Commissioner of Vs. Crest Hotels Ltd.

Court: Income Tax Appellate Tribunal ITAT Mumbai

Reported in: (2001)78ITD213(Mum.)

1. The three appeals by the Department are directed against three separate orders of the learned CIT (Appeals) dated 29-11-1991, 29-11-1991 and 30-3-1994 for assessment years 1989-90, 1990-91 and 1991-92. Since a common issue in involved in all these three appeals, they are being disposed off together by this combined order.2. The common ground in all the three appeals is against holding that capital gains on conversion of capital asset into stock-in-trade being immovable properties arise only when last flat is given to the buyer, and accordingly holding that the amount of capital gains of Rs. 5,18,09,053 arising in assessment year 1989-90, of Rs. 1,39,39,769 arising in assessment year 1990-91 and of Rs. 3,96,52,458 arising in assessment year 1991-92, be taxed in assessment year 1992-93. The assessee has also raised cross objections in all the three years supporting the aforesaid decision of the CIT (Appeals).3. The assessee-company had constructed a residential complex known as "Madh...

Deputy Commissioner of Income Tax Vs. Crest Hotels Ltd.

Court: Income Tax Appellate Tribunal ITAT Mumbai

1. The three appeals by the Department are directed against three separate orders of the learned CIT(A) dt. 29th Nov., 1991, 29th Nov., 1991, and 30th March, 1994 for asst. yrs. 1989-90, 1990-91 and 1991-92.Since a common issue is involved in all these three appeals, they are being disposed off together by this combined order.2. The common ground in all the three appeals is against holding that capital gains on conversion of capital asset into stock-in-trade being immovable properties arise only when last flat is given to the buyer, and accordingly holding that the amount of capital gains of Rs. 5,18,09,053 arising in asst. yr. 1989-90, of Rs. 1,39,39,769, arising in asst. yr. 1990-91 and of Rs. 3,96,52,458 arising in asst. yr.1991-92, be taxed in asst. yr. 1992-93. The assessee has also raised cross-objections in all the three years supporting the aforesaid decision of the CIT(A).3. The assessee-company had constructed a residential complex known as "Madhuli". Earlier the building wa...

Commissioner of Income-tax Vs. Rajendra G. Shah

Court: Mumbai

Reported in: [2001]247ITR772(Bom)

1. On June 29, 1982, a return was filed by the assessee. Pending the said, return, notice under Section 148 of the Income-tax Act, 1961, came to be issued on January 28, 1985. The assessee was, accordingly, reassessed on March 15, 1985. This order under Section 147 came to be set aside on January 28, 1986, and the matter was remanded back for fresh assessment which was made on March 30, 1988. This was once again set aside by the appellate authority on February 17, 1989, with a direction to the Assessing Officer to make fresh assessment which was done on March 26, 1990.2. In the present matter, the short point which arose for consideration before the Tribunal was whether proceedings under Section 148 could have been instituted when the return filed on June 29, 1982, was pending assessment. The Tribunal came to the conclusion that notice under Section 148 and proceedings taken by the Department thereafter were bad in law as there could not have been reopening of the assessment when the r...

Commissioner of Income-tax Vs. Tirupati Oil Corporation

Court: Mumbai

Reported in: [2001]248ITR194(Bom)

1. The short point which arises for consideration in the present matter is whether the undisclosed income of a partner can be treated as undisclosed income of the firm for the purposes of Chapter XIV-B of the Income-tax Act, 1961.2. The facts of this appeal are as follows : A search operation under Section 132 of the Act was carried out at the residences of the partner pursuant to which notice under Section 158BC of the Income-tax Act was issued to the firm on August 5, 1996, requiring the assessee-firm to furnish its return of income for the block period in question. The Assessing Officer came to the conclusion that since a partnership firm is not a legal entity the assessee-firm was liable with regard to the material detected at the residence of its partner. The Tribunal in appeal, however, rightly came to the conclusion that under the Income-tax Act, a registered firm is a taxable unit and if the Assessing Officer wanted to proceed under Chapter XIV-B of the Income-tax Act with rega...

Commissioner of Income-tax Vs. Abdul Mannan Shah Mohammed

Court: Mumbai

Reported in: [2001]248ITR614(Bom)

1. The agricultural lands owned by the assessee was acquired by the Government in 1989 under the Land Acquisition Act. The assessee filed a civil suit. An award of Rs. 33,80,172 was made in favour of the assessee. Being aggrieved, the State Government moved the High Court against the decision of the reference court. At this stage, it may be mentioned that thesaid amount of Rs. 33,80,172 included an amount of Rs. 13.50 lakhs as interest on the additional compensation. Pending the appeal, the assessee was permitted to withdraw the amount on giving security. The question which arises for determination is whether the additional compensation which was deposited in the court and permitted to be withdrawn was taxable at that stage. Secondly, whether the said amount could be taxed when it was specifically deposited by the Government in appeal to the High Court. In the case of CIT v. Hindustan Housing and Land Development Trust Ltd. : [1986]161ITR524(SC) , the Supreme Court has held that when t...

Commissioner of Income-tax Vs. Heros Publicity Services

Court: Mumbai

Reported in: [2001]248ITR256(Bom)

1. The short point which arises for consideration in the present matter is whether the Department was entitled to levy penalty under Section 271B of the Income-tax Act, 1961. The Tribunal has deleted the penalty. Hence, the Commissioner of Income-tax has come by way of appeal. The facts giving rise to this appeal, briefly, are as follows :The assessee is a partnership firm engaged in the agency business of advertising on Doordarshan and A.I.R. During the assessment year in question, it acted as an agent between the principal, on the one hand, and the said media, on the other hand. The assessee received a commission on the payment settled between the parties. The Tribunal found that on the contracts between the principal and the media on the total transaction of Rs. 2.79 crores, the assessee earned a commission of Rs. 14.55 lakhs which is shown in the profit and loss account. The Assessing Officer treated the entire receipt of Rs. 2.79 crores as receipt of the assessee and held that the...

Commissioner of Income-tax Vs. Eetachi Agencies

Court: Mumbai

Reported in: [2001]248ITR525(Bom)

1. This appeal is directed against the decision of the Tribunal ordering deletion of the penalty of Rs. 4,13,000 imposed by the Assessing Officer under Section 271E of the Income-tax Act, 1961. The said penalty was imposed for violation of Section 269T of the Income-tax Act. By the impugned decision, the Tribunal upheld the order of the appellate authority cancelling the penalty. 2. On an examination of the facts, the Tribunal found that the assessee had acted under a genuine belief that Section 269T had no application to deposits and that it only applied to loans and, therefore, the Tribunal ordered deletion of penalty. 3. We do not see any reason to interfere with the findings of fact recorded by the appellate authority and by the Tribunal. Hence, the appeal is dismissed....

Commissioner of Wealth-tax Vs. Cema (P.) Ltd.

Court: Mumbai

Reported in: [2001]248ITR629(Bom)

1. The short point which arises for consideration in this appeal is whether value of the property consisting of office premises at Maker Chambers III at Nariman Point was includible in the net wealth of the assessee. The Tribunal, on facts, came to the conclusion that the abovementioned office premises was a business asset not liable to wealth-tax. That, merely because the said office premises have been leased out for five years, did not change the commercial character of the said asset. Apart from the order of the Tribunal which is passed, on facts, we ourselves examined the returns filed by the assessee right from the assessment year 1985-86 which clearly indicate that even under the Income-tax Act, the assessee has beengiven the benefit of depreciation and the income received by the assessee has been treated as income from business. Taking into account the above facts and circumstances of the case, we are of the view that a pure finding of fact has been recorded by the Tribunal. Hen...

Commissioner of Income-tax Vs. Tata Iron and Steel Co. Ltd.

Court: Mumbai

Reported in: [2001]248ITR190(Bom)

1. A short point arises for consideration, viz., whether the Tribunal was right in rejecting the rectification application under Section 254(2) of the Income-tax Act, 1961, on the ground that it was misconceived and not maintainable.2. The facts giving rise to this appeal are as follows :On March 18, 1959, a double taxation avoidance agreement was entered into between the Government of India and the Federal Republic of Germany. This was notified on September 13, 1960, under Section 49A of the Indian Income-tax Act, 1922, with effect from April 1, 1958. The said agreement was ratified under the Income-tax Act, 1961. Under the said agreement, royalties and fees for technical services were exempted from the Indian income-tax. However, the original agreement dated March 18, 1959. was amended by Protocol dated June 28, 1984, by which royalties and fees for technical services paid to the German companies were made taxable. This Protocol was ratified on July 10, 1985. It was notified on Augus...