Judgment Search Results Home > Cases Phrase: cost and works accountants act 1959 section 22c procedure etc of authority Court: income tax appellate tribunal itat ahmedabad Page 1 of about 5 results (0.156 seconds)

Core Health Care Ltd. Vs. Deputy Commissioner of

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

..... working condition is part of the actual cost of the assets to the assessee and it is in the light of that actual cost that the question of depreciation has to be considered by the tax authorities and as such the same was rightly capitalised by the assessee in its books of account and subsequently claim of the assessee to treat a part of that expenditure on revenue account on pro rata basis is not tenable in law as there is no specific provision in the income-tax act for allowance of such expenditure treating same to be of revenue expenditure corresponding to ..... the assessee has been maintaining its account following mercantile system of accounting.therefore, adopted the established procedure of accounting and did not debit the aforesaid pre-operative expenses in the profit and loss account prepared for the year under ..... under other heads like salaries, wages, travelling expenses, lease rent charges, insurance, etc.10.2 after summarizing the findings of the assessing officer as well as the cit(a) which have been elaborately recorded by the assessing officer in 10 pages and the cit(a) in 84 pages, shri dastur submitted that both of them have erred in denying the claim of deduction on account of interest and other related expenses claimed by the assessee as a revenue expenditure by filing the revised ..... cit [1959] 36 itr 521 that actual cost to be determined for the purposes of section 43(1) is the actual cost of assets to the assessee and not the price paid by assessee .....

Core Health Care Ltd. Vs. Deputy Commissioner of Income

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

..... to bring assets into existence and to put those assets in working condition is part of the actual cost of the assets to the assessee and it is in the light of that actual cost that the question of depreciation has to be considered by the tax authorities and as such the same was rightly capitalised by the assessee in its books of account and subsequent claim of the assessee to treat a part of that expenditure on revenue account on pro rata basis is not tenable in law as there is no specific provision in the it act for allowance of such expenditure ..... 10(2)(iii) it does not matter whether the capital is borrowed in order to acquire a revenue asset or a capital asset, because all that the section requires is that the assessee must borrow the capital for the purpose of his business. ..... in my opinion, in the present case while the assessee has followed the established procedure of accounting and followed the procedure prescribed under law i.e. ..... factory expenses, insurance, financial charges, etc.other than interest on borrowed funds which were initially capitalised by the assessee in the books of accounts and which related to acquisition of three machines and putting them into working condition but subsequently claimed as deduction while filing the return under s.139(5) on the ground that such type of expenditure do not fall in the categories of expenses to which the provisions like s. ..... cit (1959) 36 itr 521 (sc) that actual cost to be determined for the purposes of s. .....

Core Health Care Ltd. Vs. Deputy Commissioner of Income Tax

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2001)70TTJ(Ahd.)490

..... in working condition is part of the actual cost of the assets to the assessee and it is in the light of that actual cost that the question of depreciation has to be considered by the tax authorities and as such the same was rightly capitalised by the assessee in its books of account and subsequent claim of the assessee to treat a part of that expenditure on revenue account on pro rata basis is not tenable in law as there is no specific provision in the income tax act for allowance of such expenditure treating same to be of revenue expenditure corresponding to section ..... (f) miscellaneous expenses incurred at factory in connection with setting up of expansion capacities which are not directly linked with creation of assets (h) insurance during the period of establishment of the project for building, machineries, etc.it is evident from the submission of the assessee-company that the expenditure in respect of the new project has been de-capitalised not in the original return, but in the revised return. ..... . in my opinion, in the present case while the assessee has followed the established procedure of accounting and followed the procedure prescribed under law i.e ..... cit (1959) 36 itr 521 (sc) that actual cost to be determined for the purposes of section 43(1) is the actual cost of assets to the assessee and not the price paid by assessee to vendor. ..... related to assessment years 1950-51, 1955-56, 1959-60, 1965-66 and 1966-67. .....

Shri Dinesh Mills Ltd. Vs. Assistant Commissioner of

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2000)72ITD110(Ahd.)

..... stock), that while the valuation of closing stock in respect of all items in the earlier years was being done at cost, which term was understood to be "total cost", the valuation in respect of the accounting year ended august 31, 1970, has been changed in respect of "work-in-progress" and "finished goods" from "total cost" to "direct cost" and that the difference between the total cost and the direct cost is that in the cost, the overheads such as administrative department expenses are excluded, while in the total ..... the assessee who is following the "direct costing method" for the purpose of valuation of closing stock, is not only following the method recognised by the institute of chartered accountants of india statutorily constituted under the chartered accountants act, 1949 and in the absence of any accounting standard in that behalf notified by the central government pursuant to the provisions of the newly inserted section 145 with effect from 1-4-1997, it continues to be a recognised method even today and shall continue to be so till such time ..... cto [1985] 154 itr 148/22 taxman 11 the excise duty should be considered as a part of the turnover and as such the departmental authorities were justified in including the excise duty in the turnover for working out the deduction admissible under section 80hhc.11. .....

Surat District Co-operative Bank Vs. Income Tax Officer and ors.

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2003)262ITR1(Ahd.)

..... two years from the commencement of this act' shall be omitted; (ii) for sub-section (2) and (2a), the following sub-sections shall be substituted, namely : (a) any balances maintained in india by a co-operative bank in current account with the reserve bank or by way of net balance in current account and in the case of a scheduled state co-operative bank, also the balance required under section 42 of the reserve bank of india act, 1934 (2 of 1934), to ..... vaults; and collecting and transmitting of money and securities; (b) acting as agents for any government or local authority or any other person or persons; the carrying on of agency business of any description including the clearing and forwarding of goods, giving of receipts and discharge and otherwise acting as an attorney on behalf of customers, but excluding the business of a managing agent or secretary and treasurer of a company; (c) contracting for public and private loans and negotiating and issuing ..... of working capital, excess amount of interest-tax collected and locker rent, etc ..... act, 1934 (2 of 1934), and (ii) every other co-operative bank, in addition to the cash reserve which it is required to maintain under section 18, shall maintain in india, in cash, or in gold valued at a price not exceeding the current market price or in unencumbered approved securities valued at a price determined in accordance with such one or more of, or combination of, the following methods of valuation, namely, valuation with reference to .....

The Asstt. C.i.T. Vs. National Lamination Industries

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2007)109ITD181(Ahd.)

..... act, unless there is anything repugnant in the subject or context,- (i) incidental or ancillary to the completion of a manufactured product; and (ii) which is specified in relation to any goods in the section or chapter notes of schedule i to the central excise tariff act, 1985 as amounting to manufacture, and the word "manufacture" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own ..... treatment, which include annealing, and also various case-laws have observed as under: in the backdrop and setting of the principles, as enunciated by the supreme court and various high courts as relatable to the activity of "manufacture " or "processing of goods " and in the light of the various literature and books of foreign authors, relatable to the qualitative ..... and machine building works, it is one of the principal links in the manufacturing process, for making semi products and machine elements, treatment is used as an intermediate procedure for improving some properties (forgeability, machinability, ..... and machinery does not mean that the activity carried on by the assessee is manufacturing/production as such huge machineries are involved even in excavation of marble blocks and cutting and sizing the same, but it is not a manufacturing activity; that a single machine used for cutting and polishing of diamonds .....

Gujarat Alkalies and Chemicals Ltd. Vs. Deputy Commissioner of Income ...

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2002)82ITD135(Ahd.)

..... under the existing provisions of section 43(1) of the it act, "actual cost" means the actual cost of the assets to the assessee reduced by that portion of the cost thereof, it any, as has been met directly or indirectly by any other person or authority. ..... of the array of judicial rulings referred to above and the basic principles enunciated therein, we have reached the conclusion that payments made for technical know-how for the purpose of setting up new units for the manufacture of hydrogen peroxide and caustic soda prills is clearly of the nature of capital expenditure which is outside the purview of section 37(1), the expenditure in question on account of technical know-how has a close and proximate connection with the setting up of new plants ..... obviously, the expenditure would contribute to augmentation and expansion of the profit-earning apparatus of the assessee-company and, therefore, clearly lies in the capital field.since the basic frame-work of the capital structure of the business is being extended and expanded, we have no doubt in our mind that the expenditure is of capital nature. ..... and the projects which are being set up by the assessee are closely connected with the existing business of the assessee and because of the vital characteristics of interdependence, interconnection interlacing, common management and unity of control, etc. .....

Amit Estate Organizer Vs. Income Tax Officer

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2008)113TTJ(Ahd.)1018

..... ao has no jurisdiction to make reference to valuation officer unless he was of the opinion that the cost of construction as detailed in the books of account was not the correct cost and for forming such an opinion, he was bound to reject the assessee's books of account, meaning thereby that the issue can be tested on the plea that without rejecting the books of account, which were maintained by the assessee in the regular course of business, by following the same method ..... five per cent) of cost of construction as recorded by the assessee in its books of accounts in respective assessment years under consideration, so as to cover unaccounted expenses with regard to observations made by the dvo in his report as well as the excess cost worked out by the own valuer of the assessee, as compared to the cost actually recorded by the assessee in its books of account, as discussed hereinabove. 1. on the facts and in the circumstances of the case and in law, the proceedings initiated under section 147 of the act, for asst. ..... as meaning some times the computation of income' some times 'the determination of the amount of tax payable' and some times the whole procedure laid down in the act for imposing liability upon the tax payer. ..... observation as according to us, the it authorities were not justified in ignoring the books of accounts of the assessee specifically maintained in respect of the cost of construction of the property in question which were fully supported by vouchers, bills, etc. .....

Shree Chalthan Vibhag Khand Udyog Vs. Income Tax Officer

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2006)104TTJ(Ahd.)654

..... is of such a nature as not to be easily moveable; (e) when the original is a public document within the meaning of section 74; (f) when the original is a document of which a certified copy of permitted by this act, or by any other law in force in (india), to be given in evidence; (g) when the originals consist of numerous accounts or other documents which cannot conveniently be examined in court, and the fact to be proved is the general result of the whole collection. ..... 'ble high court, on the issue of non-discussion in relation to the affidavits filed, by lower authorities, has observed as under: none of the authorities considered it necessary to cross-examine the deponent with reference to the statement made in the affidavit, and, hence, under these circumstances it was not open to the revenue to challenge the correctness of the ..... the gate delivery price for sugarcane supplied by members are determined considering the sale proceeds of sugar and conversion cost incurred by the society and accordingly the price is to be paid to the members according to their supply of sugarcane ..... though it is not a case of establishment of existence of a document, yet the procedure to establish a fact, which is not borne out from the records, will be similar ..... the hon'ble madras high court, it is necessary to mention that the ao had discussed in great details the nature of the constitution of the so-called samiti, the works and duties assigned to it, its tenure and its nature of existence, etc. .....

Shivani Builders Vs. the Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Ahmedabad

Reported in : (2007)108ITD520(Ahd.)

..... before the lower authorities, arguing that, irrespective of the book results, section 44ad would prevail, and it allowing the assessee to avail a standard deduction of 92 per cent (by implication; the assessable income being 8 per cent of the turnover), and rather, in the facts of the case, the higher income resulted only on account of the disclosure ..... in addition, the assessee was entitled to recover cost in respect of any extra work in the flat(s), as well as the price of the cabin, the under and overhead water tanks.all other responsibilities and obligations under law, including that in respect of getting the building plan(s) prepared and approved, as well as of administration of the ..... , sitaram parita v.acit (1994) 49 ttj (indore) 295 the view, taken was that the assessment under the act shall have to be in terms of section 44ac (prescribing the presumptive rate in respect of profits from business of trading in certain goods), even if the assessee's books disclosed a higher income.and which, we find for the same reason to be, rather, supportive of the view advanced in this order (refer para 11).12.3 the last case ..... , income-tax, etc.for otherwise, it would amount to transgressing the clear provision of law (which 'deems' such higher sum as its income), and penalizing the assessee for having chosen to be assessed at a higher sum, in terms of the section itself, and which vests the ..... the law envisages all the three situations, laying down appropriate procedure for all of them, i.e. .....