Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)19ITD294(Kol.)
1. these appeals have been preferred by the department and are opposed by the assessee-company. on the facts and in the circumstances of the case the learned commissioner (appeals), calcutta has erred in holding that the basis of computation of capital base for purposes of surtax assessment should be in proportion ofindian income indian operating revenue------------- as against --------------------------world income world operating revenue 3. the appellant is a non-resident shipping company having its head office in sweden under section 44b of the income-tax act, 1961 ('the act') the amounts referred to clauses (i) and (ii) of sub-section (2) thereof are to be taxed in accordance with the provisions of sub-section (1) thereof. for the assessment years under consideration, i.e., 1977-78 to 1979-80 it filed surtax returns disclosing chargeable profits at rs. 10,04,610, rs. 7,50,009 and rs. 8,01,757 respectively and claimed statutory deductions at rs. 1,47,66,367, rs. 1,21,87,040 and rs. 1,30,19,523 respectively. the assessee-company claimed that it incurred loss on non-indian operations and as such the entire world capital of the company should be held to have been invested for operations of indian business and earning income therefrom. the assessee-company worked out its capital attributable to indian income in the same proportion as its indian income bears to its world income following rule 4 of the second schedule to the companies (profits) surtax act, 1964. but the ito did .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1992)40ITD242(Kol.)
1. this appeal is directed against the order of the cit, west bengal-ill, calcutta.2. the assessee, as the name suggests, is deriving income from business of printing and publishing of daily newspaper by the name of "sanmarg".the original assessment was completed by the assessing officer under section 143(3) of the act on 28-1-1986. in the said assessment order the assessing officer allowed the commission paid to sales agents amounting to rs. 52,38,614 and also the commission paid to advertising agents amounting to rs. 2,49,067 being expenditure for the purpose of business. the assessing officer also allowed the claim of repairing and maintenance expenses claimed by the assessee at rs. 7,01,273.3. on examination of the assessment records of this assessment year 1985-86, it was noticed by the cit that the assessing officer had not properly taken into account the above expenses which would otherwise be disallowable under the provisions of section 37(3a) of the act.omission to do so on the part of the assessing officer resulted into the under-assessment of income by rs. 10,97,536 with consequent short levy of tax and interest and, therefore, the cit was of the view that the order was erroneous and prejudicial to the interest of the revenue in terms of section 263 of the act. he initiated proceedings under the said section. the learned cit(a) also found that the assessee claimed rs. 7,01,273 representing purchase of rotary and mono machine was debited to the p. &. l. a/c. under .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1993)44ITD278(Kol.)
1. in this assessee's appeal the only issue which requires to be decided is whether the interest on borrowed monies utilised for purchase of shares can be claimed as a deduction under section 57(iii) of the income-tax act while computing dividend income under the head 'income from sources'.2. the brief facts are that the assessee earned dividend income of rs. 16,030 from few companies. the assessee also purchased 40,000 shares in m/s universal paper mills ltd. which he purchased from out of monies borrowed from outside agencies. the assessee claimed a sum of rs. 62,819 as interest from the dividend income which is to be assessed under the head 'income from other sources'. the assessing officer negatived the claim of the assessee on the ground that the motive of the assessee was to acquire controlling interest in m/s universal paper mills ltd. and that the said company was financially not sound and viabi.e., the assessing officer examined the accounts and assessment records of m/s universal paper mills ltd. to find out the financial position of the company. it is also observed by the assessing officer that immediately after acquiring the shares the brother of the assessee was appointed as managing director of that company. therefore, the claim of interest for deduction while computing the dividend income was not allowable and he, therefore, did not allow. not being satisfied with the decision of the assessing officer the assessee carried the matter before the cit(a) who while .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1992)41ITD574(Kol.)
1. this appeal filed by the revenue arises out of the proceedings taken for assessment of a sum of 35,000 equivalent to rs. 5,47,688, in the hands of the assessee.2. the assessee joined the warren tea group (wtg) as their resident representative on 1-3-1977, upon the terms and conditions set out in the letter from warren tea group, dated 29-1-1977. now warren tea group is not a separate entity as such, but comprised of three sterling companies, of which the dhekhari tea co. ltd. was one, which paid the salary to the assessee as per the terms contained in the letter. the letter was issued in warren tea group's letter-head, which also mentioned the names of the three sterling companies comprising the group, and was signed by one cd. jakes, finance director of warren tea holdings ltd. (wth). wth held 100% shares in all the three sterling tea companies comprising wtg; the entire shares of wth were in turn held by warren plantation holdings ltd. (wth), a public limited company registered in the united kingdom. consequent to the "indianisation" of the sterling companies in november 1977, a public limited company by name warren tea co. ltd. (wtc) was formed and registered in india, and the assessee was appointed its managing director from 1-7-1978. the appointment was initially for one year, but thereafter the assessee was reappointed for five years with effect from 1-7-1979. his appointment on the terms and conditions set out in the agreement was duly approved by the central .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1993)47ITD43(Kol.)
1. the assessee has filed all the four appeals challenging the common order dated 25-9-1991 of the income-tax commissioner (itc) passed under section 25(2) of the wealth-tax act for the assessment years 1982-83 to 1985-86. for the sake of convenience all the appeals were heard together and are being disposed of through this single order.2. the facts are that the assessments of the assessee for all the above assessment years were completed on 7-10-1982, 25-4-1984, 24-4-1985 and 15-10-1985 respectively. thereafter the assessee filed returns under the amnesty scheme announced by the cbdt and disclosed the values of gold ornaments and jewellery. pursuant to this amnesty returns the assessing officer (a.o.) after regularising the returns by issue of notices under section 17 of the wealth-tax act completed the assessments for all the years on 30-3-1990. thereafter the itc formed an opinion that the value of the shares held by the assessee in various companies were not correctly valued by the assessing officer and he, therefore, issued a notice under section 25(2) of the act for the aforesaid assessment years proposing to revise the assessments made on 30-3-1990. the assessee objected to the action of the itc by resorting to the provision of section 25(2) stating that his action under section 25(2) is barred by limitation inasmuch as the valuation of shares was concluded by orders passed under section 16(3) on 7-10-1982, 25-4-1984, 24-4-1985 and 15-10-1985 respectively. the itc .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1993)47ITD543(Kol.)
1. these appeals filed by the assessee relate to the assessment years 1982-83 and 1983-84. they are directed against the consolidated order of the cit (a) by which he sustained the penalties imposed under section 271(1)(a) of the act on the assessee for a period of 10 months.the penalties sustained by the cit (a) are rs. 11,962 and rs. 9,848 respectively.2. the assessee is a registered firm carrying on business in calcutta.the accounting years ended on 31-1-1982 and 31-1-1983. the returns were due on 30-6-1982 and 30-6-1983. on 20-7-1982. there was a search in the assessee's business premises and the books of account were seized. on 11-7-1984, the ito issued notices under section 148 of the act calling upon the assessee to file returns of income for the two years. in response thereto, the assessee filed the returns for both the years on 25-3-1985. on completion of the assessments, the ito initiated proceedings for imposing penalties for the delayed submission of the returns. the assessee offered its explanation in writing. it was explained on behalf of the assessee that because of the seizure of the books of account the assessee could not file the returns of income in time. in this connection it was pointed out that in spite of the repeated requests by the assessee, the assessee was not allowed to make inspection of the books and take out copies thereof, which would have facilitated the due submission of the returns. it was also explained that there were frequent changes in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1995)53ITD391(Kol.)
1. in the assessment made under section 143(1)(a), the assessing officer added back a sum of rs. 3,65,587 as prima facie adjustment.this amount consisted of the following : the aforesaid disallowance was made under section 43b of the act on the ground that there was no evidence for payment.2. the assessee thereafter submitted a petition under section 154 of the act for rectification of the assessment. it was claimed that the aforesaid amount was paid within the period mentioned in the first proviso to section 43b and that the audit certificate dated 27-11-1990 which was filed along with the return of income constituted the evidence for the payment a copy of the aforesaid certificate was also filed along with the application under section 154. copies of the receipts dated 26-4-1990 and 25-7-1990 evidencing the sales-tax payment were also enclosed to the application for rectification. on the basis of these certificates and receipts it was claimed that the assessment made under section 143(1)(a) should be rectified and the disallowance under section 43b should be deleted.3. the assessing officer did not accept the assessee's prayer for rectification. according to him, there was nothing in the return as well as the certificates accompanying the return to show that the outstanding amount of rs. 3,65,587 had been paid within the period mentioned in the first proviso to section 43b. according to him, therefore, the assessee's claim for rectification could not be accepted. however, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)60ITD367(Kol.)
1. in these appeals by the assessee the only question is whether the departmental authorities were justified in making additions of rs. 44,90,434 and rs. 25,42,968 on account of interest accrued to the assessee.2. the appeals arise this way. the assessee is a public limited company. it was registered in the year 1970 to carry on the business of merchant-cum-development banking in all its aspects. the company could not, however, undertake development banking for want of resources and had to confine its activities to merchant banking with industrial consultancy. in the year 1980, a special resolution was passed in the annual general metering of the company to change the main object to include financial consultancy, computerised data processing, housing finance, hire - purchase and equipment leasing, export and import finance, etc. in pursuance of the new object the company utilised its funds more towards housing finance besides also utilising them in the field of equipment leasing and consultancy. over a period of years, the emphasis of the business shifted to housing finance. from what was only 24.16% of the total loans in the year 1980, housing loans jumped to 68.90% in the year 1985. for the years under appeal also there was a further jump in the composition of the housing loan vis-a-vis the total loans given by the assessee.3. the huge jump in housing advances also brought within its wake of problems for the assessee. the problem was recovery of the interest on such loans .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)61ITD203Cal
1. this appeal by the assessee for the assessment year 1991-92 is directed against the order of the cit(a)-ii, calcutta, dated 30-10-1995 whereby he partly allowed the assessee's appeal.2. the relevant facts leading to this appeal are that the assessee has 50% share in the building at 1/2, allenby road, calcutta. the co-owners of the property were realising, apart from the rent for the building, also the hire charges for providing additional facilities to the tenants. the assessing officer included the said hire charges to the gross maintainable rent for arriving at the net maintainable rent (in short, nmr) in order to make the valuation of the property. aggrieved thereby the assessee preferred his first appeal before the cit(a) who vide his impugned order repelled the assessee's contention that the hire charges were not includible in the rent inasmuch as the rent was assessed under the head 'income from house property' whereas the amount of hire charges was assessed under the head 'income from other sources' in the i.t. proceedings and so the hire charges were not includible in the gross maintainable rent, and confirmed the action of the assessing officer in including the hire charges in the gross maintainable rent in view of explanation 2 to rule 5 of schedule iii to the w.t. act. hence, aggrieved, the assessee is in appeal before the tribunal raising the following sole ground : "that on the facts and circumstances of the case, ld. commissioner of wealth-tax (appeals) .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1999)68ITD148(Kol.)
1. this appeal by the assessee for the block assessment for the block period of previous years 1987-88 to 27th august, 1996 passed under s.158bc of the it act, 1961.2. the facts of the case, in brief, relevant for the disposal of this appeal, at present, are that a search under s. 132 of the it act, 1961, was conducted at the office premises of the assessee, shaw wallace & co. ltd. at 4, bankshall street, calcutta-700 001, and at its various premises on 27th august, 1996, and on subsequent dates. during the course of search various assets and documents were found and seized.the ao issued notice under s. 158bc on 31st january, 1997, calling upon the assessee to file its return of undisclosed income for the block period. the return was filed on 17th april, 1997. the ao passed the block assessment order for the block period on 28th november, 1997. on 27th august, 1996, the date on which the search commenced, the assessments for the two assessment years, namely, 1994-95 and 1995-96 were pending. the ao made the regular assessment for the asst. yr.1994-95 on 31st march, 1997, under s. 143(3). while making the block assessment order dt. 28th november, 1997, the ao took, in the asst. yr.1994-95, the assessed income, that is the income assessed in the regular assessment on 31st march, 1997. similarly the ao while making the said block assessment order took, for the asst. yr. 1995-96, the returned income observing that the assessment for the asst. yr. 1995-96 was pending under .....
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