Court : Mumbai
ORAL JUDGMENT : (Per : J.P. Devadhar, J.) 1. Since the questions of law raised in all these appeals are common, all these appeals are heard together and disposed off by this common judgment. 2. For the sake of convenience, we set out the facts in Tax Appeal No.3693 of 2010, which relates to AY 2002-03. 3. Tax Appeal No.3693 of 2010 is admitted on the following substantial questions of law:- (a) Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the addition made on account of provision of solvency margin by the Assessing Officer even though the provision for solvency margin was made as per the directive of IRDA for a period of three years only and does not form the method of actuarial valuation made in accordance with the Insurance Act, 1938 ? (b) Whether on the facts and in the circumstances of the case and in law the Tribunal was right in deleting the addition made on account of provision on solvency margin by the Assessing Off...
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1964SC1403; [1964]34CompCas258(SC); [1964]51ITR773(SC); [1964]5SCR880
Sarkar, J. 1. We think that these appeals should be allowed. 2. The appeals relate to the assessment to income-tax of the income of the life insurance business of the Bharat Insurance Co. Ltd. now merged in the Life Insurance Corporation Ltd. The assessment years concerned are 1952-53, 1953-54 and 1954-55. The Income-tax Act, 1922 makes special provision for assessment of the income of insurance business. The Income-tax Officer in making the assessment orders made some adjustments in the accounts which the appellant contends, he has no power to do under these provisions. The question in these appeals is whether he had the power to make these adjustments. 3. Sub-section (7) of s. 10 of the Act makes the special provision for the assessment of the income of insurance business and that is in these terms : 'Notwithstanding anything to the contrary contained in Section 8, 9, 10, 12 or 18, the profits and gains of any business of insurance and the tax payable thereon shall be computed in acc...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1990)35ITD402(Hyd.)
1. These cross appeals rotate round the common issues and relate to assessment years 1980-81 to 1986-87. For the sake of convenience, these are disposed of by a consolidated order.2. Shri N.A. Palkhivala along with Sri P. Murali Krishna appeared on behalf of the assessee. The revenue was represented by S/Shri K.Rangabhashyam and I.J. Naidu. Necessary documents and papers were presented at the time of hearing in the form of paper books. Revenue filed 3 paper books and 9 paper books were submitted on behalf of the assessee.3. Various arguments placed before us by Shri Palkhivala resemble so many radii of a circle starting from different points on its circumference but all oriented towards the valuation of beneficial interest in right perspective. According to learned counsel it is only aggregate 'beneficial interest' that can be taxed. The beneficial interest is subjected to litigation. What value it would fetch if sold in open market? The prospective buyer would indeed ponder over the ...
Tag this Judgment!Court : Mumbai
Reported in : [1978]115ITR45(Bom)
Chandurkar, J. 1. The assessee in this case is the Life Insurance Corporation which is a statutory corporation established under the Life Insurance Corporation Act, 1956, with effect from September 1, 1956. Though the assessment year is 1963-64, for the purpose of assessment the inter-valuation period is the period from January 1, 1962, to March 31, 1963. Under the Life Insurance Corporation Act under section 7, it was provided that on the appointed day, which was September 1, 1956, there shall be transferred to and vested in the Corporation all the assets and liabilities appertaining to the controlled business of all insurers. 'Controlled business', so far as the present reference is concerned, was the life insurance business. 2. Sub-section (2) of section 7 provides : 'The assets appertaining to the controlled business of an insurer shall be deemed to include all rights and powers, and all the property, whether movable or immovable, appertaining to his controlled business, including,...
Tag this Judgment!Court : Chennai
Reported in : [1981]132ITR360(Mad)
SETHURAMAN J. - The reference under s. 256(1) of the I.T. Act, 1961, has been made on the following two questions :'(i) Whether, on the facts and in the circumstance of the case, the assessee was entitled to the deduction of the estimated gratuity payable to its employees under section 37 of the Income-tax Act, 1961 ?(ii) Whether, on the facts and in the circumstance of the case, the provision for gratuity made by the assessee was as deduction admissible for the assessment year 1971-72 in computing the total income of the assessee ?'The assessee is a accompany engaged in the manufacture of yarn. It did not have any gratuity scheme. In 1956, the Govt. of India constituted a wage board for textile industry. This board recommended that a uniform gratuity scheme should be applied in the case of all the textile mills. Though several unit as at Coimbatore region implemented the recommendations, the assessee did not do so, and in 1968, a second wage board was constituted to consider the entir...
Tag this Judgment!Court : US Supreme Court
Creswell v. Lanahan - 101 U.S. 347 (1879) U.S. Supreme Court Creswell v. Lanahan, 101 U.S. 347 (1879) Creswell v. Lanahan 101 U.S. 347 APPEALS FROM THE SUPREME COURT OF THE DISTRICT OF COLUMBIA Syllabus The Freedman's Savings and Trust Company, chartered by an Act of Congress approved March 3, 1865, 13 Stat. 510, being, during a financial crisis pressed for means, its agent, with the knowledge and consent of its trustees, borrowed of A. moneys which were applied to its use. A note therefor was signed by the actuary of the institution, who subsequently transferred to A., in satisfaction thereof, certain securities belonging to the company. That officer was held out to the public as competent to make such an exchange, and there was no departure in this instance from the established usage. No fraud was committed, and the transaction was advantageous to the institution. On the failure of the company, the, commissioners appointed to wind up its affairs filed their bill, praying tha...
Tag this Judgment!Court : Kerala
Reported in : [1990]184ITR319(Ker); (1991)ILLJ255Ker
K.S. Paripoornan, J.1. The question that arises for consideration in this case is the deduction the assessee is entitled to in respect of the provision made by it for payment of gratuity to its employees payable during the previous year. We are concerned in this case with the assessment year 1976-77. The previous year ended on December 31, 1975. At the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following two questions of law for decision of this court:'(1) Whether, on the facts and in the circumstances of the case, and without entering a finding as to the fulfilment of all the three conditions laid down by the statute, the Tribunal was right in holding, that the assessee would be entitled in principle, to the deduction of the provision if that provision related to the year of liability ? (2) Whether, on the facts and in the circumstances of the case and considering the quantum of the claim of the assessee before the Officer, should not the Tribunal have...
Tag this Judgment!Court : Punjab and Haryana
Reported in : AIR1972P& H414
1. This appeal has been directed under Section 82(2) of the Employees' State Insurance Act (hereinafter called the Act) against the order dated May 7, 1968, of the Employees' Insurance Court, Bhiwani, whereby the said Court dismissed the application, moved by the appellant under Section 66 read with Section 75(2)(c) of the Act for recovery of Rs. 13,781.25 p. from Messrs. Dalmia Dadri Cement Ltd. (hereinafter called the respondent No. 1) by way of reimbursement, on the short ground that it (the application) was not maintainable since Section 66 of the Act had been repealed by the Employees' State Insurance (Amendment) Act No. 44 of 1966 (hereinafter called the Amending Act), before the making of the application.2. In short, the case of the appellant is that it is Employees' State Insurance Corporation, and respondent No. 1 in factory within the meaning of the Act. Rulia Ram was in the employment of respondent No. 1 as Hopper-man and was duly registered under the provisions of the Act w...
Tag this Judgment!Court : Chennai
Reported in : [1999]238ITR202(Mad)
N.V. Balasubramanian, J.1. At the instance of the Revenue, the Appellate Tribunal has stated the case and referred the following questions of law for the assessment year 1971-72 under section 26(l) of the Gift-tax Act, 1958 (hereinafter referred to as 'the Act'). '1. Whether, on the facts and in the circumstances of the case and having regard to the provisions of sections 4(1)(a) and 4(1)(c) of the Gift-tax Act, 1958, the Appellate Tribunal was right in cancelling the gift-tax assessment made in the assessee's case for the assessment year 1971-72 2. Whether, on the facts and in the circumstances of the case,' the finding of the Appellate Tribunal that the consideration for the transfer is adequate is based on valid and relevant materials and a reasonable view to take on the facts of the case 2. The assessee is assessed as an individual. The original assessment for the assessment year 1971-72 was completed by the Gift-tax Officer. Later on, on the basis of the information collected, th...
Tag this Judgment!Court : Kolkata
Reported in : (1987)65CTR(Cal)116,[1988]169ITR430(Cal),[1987]34TAXMAN222(Cal)
Dipak Kumak Sen, J.1. The facts on record which are material and the proceedings leading up to this reference are, shortly, that Steel Roiling Mills of Bengal Ltd., the assessee, was assessed to income-tax for the assessment year 1972-73, the relevant accounting year ending on July 31, 1971. In the said assessment year, the assessee originally filed its return on May 18, 1972. Subsequently, the assessee filed a revised return on September 30, 1974, which was accepted. The assessee claimed deduction on account of a provision made for payment of gratuity to its employees of Rs. 57,643 on the basis of actuarial calculation supported by a certificate of an actuary. During the relevant assessment year, the West Bengal Employees' Payment of Compulsory Gratuity Ordinance, 1971, was promulgated and came into force on June 14, 1971. The said Ordinance was replaced by the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971, which was promulgated some time in August, 1971, with retros...
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