Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Feb-11-1981
Reported in : (1984)7ITD666(Mum.)
..... a deduction in the computation of income and the assessment for that year has been completed on that basis. the finance act, 1975, has amended the income-tax act retrospectively and under this amendment, deduction in respect of provision for gratuity payable to employees on retirement or termination of their employment is conditional upon the ..... are maintained on the mercantile system. the special bench also took into account the reason for introducing this section into the act, as stated by the finance minister while introducing the amendment in the parliament. the intention was to prevent a mischief which was prevalent at that time. that mischief was that certain ..... as enacted by section 40a(7), was inserted with retrospective effect from the assessment year 1973-74 and that case was concerned with 1973-74. the amendment superseded the general principle as regards the liability for gratuity and, therefore, after the 1st of april, 1973, the question of deductibility of a similar claim .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jul-13-1981
Reported in : (1983)3ITD633(Mum.)
..... a case.... (p. 490) the same point has been reiterated by all the high courts while dealing with the extension of time-limit brought about by the 1970 amendment act for completing penalty proceedings. we are merely giving the names of the following cases in order to avoid repetition: cit v. soubhagya manjari devi [1976] 105 itr ..... 100, he cited the following passage at page 105: to the present case the general rule of construction of fiscal acts would apply and not the exception engrafted on that rule: for section 4 of the amending act cannot be described as a provision laying down the machinery for the calculation of tax. in substance it enables the ..... income-tax officer to reassess a person's income which has escaped assessment, though the time within which he could have so assessed had expired under the act before the amendment of 1959. it resuscitates barred claim. therefore, the same stringent rules of construction appropriate to a charging section shall also apply to such a provision.on .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jul-20-1981
Reported in : (1983)3ITD774(Mum.)
..... ice. 'mischief rule' enjoins upon us to so interpret the section as to suppress the mischief and advance the remedy after studying the reasons for the amendment as reflected in the wanchoo committee findings. the 'mischief rule 'which we have, therefore employed to interpret section 64(1)(ii) would impart a meaning to ..... business as distinguished from profession. even though some distinction is maintained by the legislature between business and profession especially in some section of the income-tax act as relied upon by shri v.h. patil, the supreme court nevertheless held in the case of barendra prasad ray (supra) that the expression ' ..... though the word 'business', as generally understood, would include a 'profession', a definite distinction between business as contradistinguished from profession has been maintained throughout the act. alighting upon the maxim that all businesses are not professions though all professions are businesses. shri patil went on to submit that section 64(1)(ii) .....
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