Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2004)85TTJ(Mum.)821
..... there is no requirement under the law relating to sale of goods and even of immoveable property that purchase consideration has necessarily got to be paid in cash.thus, as per the provisions of section 5(1) of the sale of goods act, 1930, where the parties to a contract agreed that the payment for and delivery of the goods are to be postponed, the property in goods passes to the buyer as soon as the proposal for sale is accepted. ..... 30 of the cit(a)'s order and contended that one can sell what one owns, not through book entries, but by following the procedure prescribed for the transfer of shares in the companies act, according to him, in the present case, since it has been admitted that no valid transfer deed was executed and handed over along with the original share certificates to the assessee by mafatlal industries ltd. ..... in the books of municipal authorities in respect of immovable properties, the mutation of name in the books of the municipal authorities may take long-time but once the property is transferred by following the requirements of the transfer of properties act, 1982 read with the relevant section of registration act, the genuineness of the transfer itself cannot be challenged even though the transferor may still be shown as the owner of the property in the books of the municipal authorities. ..... where goods are already in custody or control of buyer, all that is required is that, there should be an appropriation of goods by buyer in respect of particular contract. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)8SOT532(Mum.)
..... the sale and purchase of the sale shares under this agreement is conditional upon the satisfaction of the following conditions for the benefit of the purchaser: 5.1.1 the purchaser having received an appropriate approval of the foreign investment promotion board through the secretariat of industrial assistance to the acquisition by the purchaser of all the sale shares, the additional shares and of the equity ..... to sale of goods and even of immovable property that the purchase consideration has necessarily got to be paid in cash.thus, as per the provisions of section 5(l) of the sale of goods act, 1930 where the parties to a contract agree that the payment for and delivery of the goods are to be postponed, the property in goods passes to the buyer as soon as the ..... of the municipal authorities may take a long time but once the property is transferred by following the recruitments of the transfer of properties act, 1982 read with the relevant section of registration act, the genuineness of the transfer itself cannot be challenged, even though the transferor may still be shown as the owner of the property ..... would not immediately pass on execution of an agreement.from a careful reading of this agreement dated 2-7-1997 in the light of the provisions of section 20 of sales of goods act and other provisions of act, we find that it was a formal agreement between the parties with regard to sale of shares, but it was to be enforced on fulfilment of certain conditions by the respective parties. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)100ITD42(Mum.)
..... guidelines issues by the hon'ble supreme court to the chief justices of high courts, which for the benefit of this order are being reproduced as under: (i) the chief justices of the high courts may issue appropriate directions to the registry that in a case where the judgment is reserved and is pronounced later, a column be added in the judgment where, on the first page, after the cause-title, date of reserving the judgment and ..... it is, because of such provisions, their lordships held that tax 'deductible' was to be reduced before levying interest under sections 215 or 217 of the act.however, explanation i to section 234b defines 'assessed tax' as tax on the total income determined under section 143(1) or on regular assessment as reduced by the amount of tax deducted or collected at source in accordance with provisions of chapter xvii ..... further, the tribunal has considered the provisions of section 48 as well as section 55(2)(b)(i) of the act and it is also not the case of assessee's counsel that any provisions of statute was not considered ..... since tax at source was deductible under section 195 against payment on sale of shares, assessee was not required to pay advance tax under section 209(1)(d) of the act and consequently no interest could be charged under section 234b. ..... state of bihar , copy of which is placed on record ..... cit [2005] 72 itd 415 (delhi) ..... cit [2005] 72 itd 415 (delhi) the language of section 234b read with the amended provisions of explanation i had been considered .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2007)108ITD471(Mum.)
..... submitted that the payment in question cannot be said to be dividend because - (i) it does not either fall within the meaning of section 2(22) of the act or within the ordinary connotation of the term 'dividend' as understood under the companies act, (ii) the life insurance corporation does not declare dividend in the annual general meeting, and (iii) the central government guarantees the sum assured under the life ..... -(l) the original capital of the corporation shall be five crores of rupees provided by the central government after due appropriation made by parliament by law for the purpose, and the terms and conditions relating to the provisions of such capital shall be ..... -(1) the original capital of the corporation shall be five crores of rupees provided by the central government after due appropriation made by parliament by law for the purpose, and the terms and conditions relating to the provisions of such capital shall be ..... (d) that 5 per cent of the surplus received by the government is not a charge against profit, but is an appropriation of the profit which is always by way of distribution and therefore, such distribution of profit amounts to payment towards the consideration of the capital invested by the government and therefore, the same has ..... the provisions of section 5 of the lic act which provides that original capital of the corporation shall be 5 crores of rupees provided by the central government after due appropriation made by the parliament by law for the purpose .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)2SOT617(Mum.)
..... appeals) has accepted the submission of assessee that where there is an evidence of more than one market price, the price to be adopted should be the one which bears the more appropriate degree of comparability, this basic principle stands incorporated in the transfer pricing regulations.on page 16 of assessment order the assessing officer has further observed that the kurkumbh undertaking has received formulations and has ..... failed to consider a number of relevant aspects like taking taxable returned income of assessee-company after considering depreciation on leased assets in respect of leasing activity without adding back the depreciation on leased assets for appropriate comparison; not considering the proportion of other expenses (other than pricing of materials transferred in and out of kurkumbh unit) the correctness of which he did not doubt in relative terms; not considering ..... of profit made by the assessing officer has been on the ground that the transfer pricing policy adopted by the assessee in terms of section 80-ia(9) of the act is not wholly appropriate ..... . state of bihar (1963) 48 itr 123 (sc) wherein it has been held that the profits of each activity of an enterprise is required to be ascertained in a distributive sense, we are of the view that the proviso to section ..... of bihar ..... . state of bihar (1963) 48 itr 123 (sc), for the proposition that though the profits are made or received at the ultimate point of sale of the final output but the profits are earned or .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)4SOT757(Mum.)
..... therefore, that was not charged in the regular assessment;" from the above decisions we are of the view that interest not charged in original assessment cannot be deemed to have been waived, it is a conscious act of the assessing officer to waive the interest by giving a finding that conditions laid down for waiver have been satisfied.since on the question that as to whether interest can be charged by way of rectification, there ..... following decisions support this proposition; the mere non-mention on the part of the income tax officer in the assessment order, of penal interest under section 217(1) of the income tax act, 1961, for failure by the assessee to file an estimate of advance tax and pay advance tax as required by section 212(3), cannot lead to the assumption that the income tax officer ..... the head notes reads : "against the decision of the high court (see (1996) 217 itr 72), inter alia, that the object of section 234a of the income tax act, 1961, was not to penalise the assessee, who had already filed a return under section 139, for not producing accounts or documents and so on pursuant to notice issued under clause (ii) or (iii) of ..... these written submissions will be reproduced part by part at appropriate places in this order for the sake of convenience and justice.the assessee was ..... than it would be in accordance with the decisions of the hon'ble high court in bihar state road transport corpn. ..... this proposition is supported.bihar state road transport corpn ..... in bihar state .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)98TTJ(Mum.)389
..... while restoring this issue to the ao vide its order dated 20.8.2001, felt that if the pre-operative expenses including interest on borrowed capital have been incurred directly for earning the interest income, appropriate deduction under section 57(iii) has to be allowed. ..... dr invited our attention to the short headnote of this case, which is as under: "section 57 of the it act, 1961 - income from other sources - deductions - ay 91-92 -assessee borrowed funds for its business purposes but same were not used for its business purpose but were invested somewhere else on which interest ..... " shri yogesh thar further submitted that for the purposes of the income tax act, what is important is the actual use of the borrowed funds and not the motive at the time when the funds are ..... on a reference: held, (i) that in view of the provisions of sections 36(1)(iii) and 57(iii) of the it act, 1961, the tribunal was right in law in not allowing the claim of the assessee that the entire interest payment should be allowed as business expenditure for the ays 74-75 and ..... cases, the hon'ble courts were called upon to adjudicate the deductibility of certain expenses under section 10(2)(xv) of the indian income-tax act, 1922, which corresponds to section 37(1) of the it act, 1961. ..... assessment years, pertains to the finding of the revenue authorities that no expenditure against the gross interest income earned by the assessee during the pre-operative period, is deductible under section 57(iii) of the it act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)3SOT121(Mum.)
..... hundred per cent export-oriented undertaking by the board appointed in this behalf by the central government in exercise of the powers conferred by section 14 of the industries (development and regulation) act, 1951 (65 of 1951), and the rides made under that act; (ii) "relevant assessment years" means the five consecutive assessment years specified by the assessee at his option under sub-section (3) or sub-section (5), as the case may be; (c) ..... per cent export-oriented undertaking by the board appointed in this behalf by the central government in exercise of the powers conferred by section 14 of the industries (development and regulation) act, 1951 (65 of 1951), and the rules made under that act; (ii) "relevant assessment years" means the five consecutive assessment years specified by the assessee at his option under sub-section (3) or sub-section (5), as the case may be; (c) ..... even though, if is possible to extend the arguments on the basis of logical grounds, what we could ultimately find in this case is that the assessee was acting as a qualified professional recruiting agency for foreign companies specializing in the recruitment of high calibre computer and software professionals.therefore, in the circumstances, it is our considered view ..... as an appellate authority and passing of an appropriate order is a sine qua non for the exercise ..... its interim order dated 4-1-2005 that the said grounds of ..... partly admitted the additional ground through its interim order passed on 4-1-2005. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)2SOT659(Mum.)
..... is at this second stage the cit(a) touched the issue of taxability of hire charges income and late payment fees for the first time by issuing notice under section 251 of the income tax act.the learned counsel submitted that the learned cit(a) did not have the requisite jurisdiction to touch this issue of taxing hire charges income and late fee for the first time in the second ..... "paid" means actually paid or incurred according to the method of accounting upon the basis of which the profits or gains are computed under the head "profits and gains of business or profession" thus it is submitted that the act itself deems even accrual of liability or incurring a liability/ expenses as paid for the purposes of sections 28 to 41 which includes, so far as the present appeal is concerned, section 3 1. ..... the tribunal has the discretion, in appropriate case to allow any party to the appeal to raise new contention before ..... he does not get the jurisdiction to do certain act for which the assessing officer did not have the jurisdiction.in the present case, in second round the jurisdiction of the assessing officer was limited to the issue of ownership of assets and nothing ..... definition of the term 'paid' as contained in section 43(2) of the act, answers the same. ..... in fact, the act itself has made it clear that even if a liability is injured - and not actually paid - in a previous year, the same should be deemed to have been paid for the purpose of sections 28 to 41 including section 3 1, which deals .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)3SOT501(Mum.)
..... in the main enactment under which they are made and, therefore, such rules or forms cannot contradict or create an irreconcilable position resulting in an anomalous situation.the primary and the only object of the income tax act is to tax, tax and tax the income if the legislature in its wisdom grants a concession and by creating a concession on reciprocal right or privilege is vested in an assessee, such a reciprocal right cannot be widly dealt ..... provide that even in a reference proceeding, if the subordinate legislation is held to be in excess of the power conferred, it could be ignored and the matter decided keeping in mind the provisions of the act which are paramout.we think that in the facts and circumstances of this case, we must invoke the doctrine of "reading down" and apply the principle enunciated by the supreme court in the above referred case. ..... of the fact that since the exemption from withholding tax had been withdrawn by the ministry of finance so the appellant-company was liable to deduct tax at appropriate rate on any interest remitted in future on the said loan. ..... ).both the hbn'ble courts have expressed that it is open to the appellant-company to challenge the same in appropriate proceedings if permissible in law. ..... that question, if the petitioners are aggrieved by any such action of the respondents by which their utilization or pre-payment of the ecbs are also restricted, it is open to them to challenge the same in appropriate proceedings if permissible in law. .....
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