Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)48ITD145(Kol.)
Where assessment is found erroneous in respect of one of the several issues, it cannot be taken to be erroneous in entirety.For the assessment year 1984-85 the assesseee recording company's assessment was completed under section 143(3). Subsequently, the Commissioner initiated proceedings under section 263 on the grounds of (i) incorrect allowance for certain amount as provision for stock, (ii) incorrect allowance of certain amount under `miscellaneous expenses, (iii) non-inclusion of bonus paid to the assessee's dealers, for the purpose of disallowance under section 37(3A) and (iv) wrong allowance of royalty paid by the assessee. On receiving a detailed reply from the assessee, the Commissioner took the view that the assessment had been completed without any enquiry into the various claims of the assessee, and, therefore, set aside the same with the direction to reframe. On appeal, the assessee, while challenging the Commissioner's order on the last two issues, made no grievance agai...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1992)42ITD546(Kol.)
1. to 9. [These paras are not reproduced here as they involve minor issues.] 10. The next four grounds are in relation to the addition of Rs. 35.11 lakhs to the value of the closing stock. The assessee as already stated, is a manufacturer of paints. Its closing stock consists of raw materials, work in process and finished goods. In the accounts for the year ended 30-6-1987 relevant for the assessment year under appeal, the closing stock was valued at Rs. 13,88,99.690. The ITO was, however, of the view that the value of the closing stock has to be increased by the MODVAT portion of the excise duty paid by the assessee in respect of the raw materials that are used in the manufacture of the final product, viz., paints and in that view of the matter increased the value of the closing stock by Rs. 35.11 lakhs.11. The assessee appealed to the CIT(A) who merely endorsed the ITO's conclusion and upheld the addition.12. Now the events leading up to the addition may have to be stated a little e...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)49ITD162(Kol.)
1. These two appeals are by the assessee. ITA No. 1002/Cal/89 is an appeal for the assessment year 1984-85. It is directed against the order of the CIT dated 6-3-1989 passed under Section 263 of the Income-tax Act. ITA No. 1116/Cal/91 relates to the assessment year 1988-89 and is directed against the order of the CIT(A) dated 22-2-1991.2. Both the appeals involve the same issue. They were also heard together. We, therefore, dispose of both of them by a single consolidated order.3. The assessee is a public limited company engaged in the business of purchasing or taking on lease land, putting up construction thereon and letting out the buildings for rent. The two major properties held by the assessee were at No. 50, Chowringhee Road, Calcutta and the property known as Tivoli Park building No. 225-C, A.J.C. Bose Road, Calcutta.4. We may take up the appeal for the assessment year 1984-85 first. In the assessment made under Section 1.43(3) on 3-3-1987, the Assessing Officer allowed a deduc...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1999)68ITD332(Kol.)
1. As certain common issues and facts are involved in these appeals and the same were argued together by the common counsels engaged by the assessee and the Department, these appeals are being decided together for convenience.2. First major issue involved in these appeals which pertains to asst.yr. 1981-82 to 1988-89 and 1990-91 relates to the assessability of interest income attributable to certain class of loans and advances made by the assessee-bank to some of its debtors. The assessee is a nationalised commercial bank having its head office in Calcutta and various branches in Calcutta and several other places. According to the assessee-bank, it has been following a hybrid system of accounting for a very long time under which certain class of debtors of doubtful recovery were excluded and the assessee stopped debiting interest attributable to the amounts outstanding in the accounts of such debtors. The assessee, however, did not give up its rights and claims of charging interest on...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)89ITD125(Kol.)
depreciation allowed set off by assessing officer on incorrect assumption of facts as well as on incorrect application of law The assessing officer has allowed the claim of assessee to set off the unabsorbed depreciation in question on incorrect assumption of facts as well as on incorrect application of law, therefore, as the view taken by the assessing officer is found neither permissible in law nor sustainable in law, the assessing officer's order can be very well treated as an erroneous order and prejudicial to the interests of the revenue.The assessing officer has allowed the claim of assessee to set off the unabsorbed depreciation in question on incorrect assumption of facts as well as on incorrect application of law, therefore, as the view taken by the assessing officer is found neither permissible in law nor sustainable in law, the assessing officer's order can be very well treated as an erroneous order and prejudicial to the interests of the revenue.The view adopted by the ass...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)82TTJ(Kol.)540
1. The assessee has filed this appeal against the order passed by CIT under Section 263 of the Act, dt. 18th March, 2002, for the asst. yr, 1997-98 on the following grounds: "1. For that, the CIT erred in holding that the assessment of the appellant for the asst. yr. 1997-98 was erroneous and prejudicial to the interest of Revenue and in setting aside the same for de novo assessment after enquiry/investigation. 2. For that, the CIT erred in holding that the appellant had booked any loss or that the assessment completed on 28th March, 2000, was made without proper enquiry, investigation or verification as regards genuineness of share-transactions. 3. For that, the assumption of jurisdiction under Section 263 was illegal and the purported findings contained in the impugned order are wholly erroneous, without any material or evidence and contrary to facts and law and perverse." 2. The assessee filed the return showing total income of Rs. 24,96,909.The AO completed the assessment under Se...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2006)280ITR117(Kol.)
1. The President, Tribunal, has constituted this Special Bench to decide the following question (in the cases of ABN Amro Bank NV) : "Whether the provision of interest by a permanent establishment of a foreign enterprise payable to head office and/or other branches outside India is allowable deduction and if so, whether the provision of Section 40(a)(i) is attracted in respect of such payment/provision ?" 2. The question in the case of Bank of Tokyo is whether assessee has committed any default in not deducting tax from the payment of interest to its head office or other branches under Section 195 and thereby made itself liable for payment under Section 201 of the Act.3. We shall first take the case of ABN Amro Bank. The assessee-bank in this case is incorporated in Netherlands with a limited liability having its original office at Singapore. It had a branch in India registered in terms of Schedule II of the Reserve Bank of India (RBI) Act, 1934. It carries on banking business in Indi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1991)39ITD345(Kol.)
1. This appeal is by the department against the CIT(A)'s order dated 29-6-1987 for the assessment year 1981-82. The assessee received Rs. 10, 00,000 as a sales-tax subsidy from the District Industrial Centre, Suri, Birbhum, This sum, the ITO treated as a revenue receipt and taxed in the hands of the assessee for the assessment year 1981-82. The assessee filed an appeal before the CIT(A) against the addition, and the CIT(A) has deleted the sum in question on the ground that the subsidy did not accrue, or arise during the accounting year relevant to the assessment year 1981-82, and has also held that the receipt is of capital nature and is not assessable under Section 41(1). The department has come in appeal to the Tribunal against the said decision of the CIT(A).2. The only ground of the department in this appeal is that the CIT(A) is not correct in deleting the addition on the ground that the subsidy did not accrue or arise during the assessment year 1981-82, and also erred in holding...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
1. These two appeals, filed by the assessee, are directed against two separate orders - both dated 15-12-1997 - passed by the learned CIT(A) XI, Calcutta, and, as a matter of convenience, these appeals are being disposed of by way of this consolidated order.2. We will first take up ITA No. 313/Cal./98 i.e. assessee's appeal for the assessment year 1994-95.3. In first ground of appeal, the assessee is aggrieved of CIT(A)'s confirming 'the loss from purchase and sale of shares and securities of Rs. 1,41,60,772 as speculation loss as per Explanation to Section 73' of the Income-tax Act, 1961 (hereinafter referred to as 'the Act').4. Briefly, the facts. During the course of assessment proceedings, Assessing Officer noticed that in the relevant previous year 'the assessee has sold some shares which were held by it as stock in trade' and that the assessee incurred loss of Rs. 1,41,60,772 on such transactions. It is also an admitted position that main source of income for the assessee was un...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2003)85ITD745(Kol.)
These two appeals, filed by the assessee, are directed against two separate orders-both dated 15-12-1997-passed by the learned Commissioner (Appeals) XI, Calcutta, and, as a matter of convenience, these appeals are being disposed of by way of this consolidated order.We will first take up ITA No. 313/Cal./98 i.e. assessees appeal for the assessment year 1994-95.In first ground of appeal, the assessee is aggrieved of Commissioner (Appeals)s confirming the loss from purchase and sale of shares and securities of Rs. 1,41,60,772 as speculation loss as per Explanation to section 73, of the Income Tax Act, 1961 (hereinafter referred to as the Act).Briefly, the facts. During the course of assessment proceedings, assessing officer noticed that in the relevant previous year the assessee has sold some shares which were held by it as stock in trade and that the assessee incurred loss of Rs. 1,41,60,772 on such transactions. It is also an admitted position that main source of income for the assess...
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