Court : Gujarat
Reported in : [1976]105ITR674(Guj)
..... rajasthan high court has there held that an assessee is liable to penalty for not submitting his return as required in a notice under section 139(1) of the income-tax act, 1961, even though he subsequently files a return in pursuance of a notice under section 139(2) and an assessment is made on the basis of that return. ..... gupta and sons and it was held by the allahabad high court that there is nothing in section 271(1) of the 1961 act, which lays down that the rate of penalty should be computed only from april 1, 1962, and it was held that the rate of penalty has to be applied in respect of the entire period of the default. ..... it was urged on behalf of the assessee that the language used in section 28(1)(a) of the 1922 act and section 271(1)(a) of the 1961 act, wherein the words 'as the case may be' occur at the end are different and that under the new act it was only if a default was committed in respect of notice under section 148 that the penalty under section 271(1)(a) could be levied and not if the default had been committed in filing the return in ..... contention was that there was no default in proceedings taken under sections 147 and 148 and, in accordance with the language of section 271(1)(a) of the 1961 act, the original default in not filing the return under section 22(1) could not be the subject-matter of penal proceedings. ..... the provisions of section 271 of the act of 1961 will apply mutatis mutandis to proceedings relating to penalty initiated in accordance with section .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]105ITR601(Guj)
..... are unable to agree with this reasoning of the learned judges of the allahabad high court because after the interpretation placed by the supreme court on clause (b) of the proviso to section 10(2)(vib) of the act of 1922 (equivalent to section 34(3) of the act of 1961) it is no longer open to us to construe the requirements of the proviso (b) to section 10(2)(vib) of the act of 1922 or section 34(3) of the act of 1961. ..... obvious that the provisions of section 34(3) are substantially the same as the provisions of the proviso to section 10(2)(vib) of the act of 1922, with only this difference that whereas the period referred to in the proviso to section 10(2)(vib) of the act of 1922 was ten years, under section 34(3) of the act of 1961, the period is eight years. 6. ..... 33 which provides for development rebate in the act of 1961, is one of the sections for making allowances ..... the requirement of section 34(3) of the act of 1961 is that the profit and loss account must be debited with the amount of the development rebate reserve before that account ..... under the act of 1961, section 28 provides that the income mentioned in one or the other clause of section 28 shall be chargeable to income-tax under the head 'profits and gains of business or profession' and under clause (i), the ..... years a number of cases have come up before the courts involving the consideration of proviso (b) to section 10(2)(vib) of the indian income-tax act, 1922, equivalent to section 34(3) of the income-tax act, 1961. 4. .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]104ITR1(Guj)
..... the assessee-company claimed that the amount of loss carried forward from the earlier years should be first set off against the profits under proviso (b) to section 24(2) of the act of 1922 (which is equivalent to section 72(2) of the act of 1961), before giving effect to the depreciation allowance, it being to the advantage of the assessee-company to have only one sum carried forward as unabsorbed depreciation which was not subject to any time limit. ..... the court in that decision also considered the language of proviso (b) of section 24(2), which is in pari material with sub-section (2) of section 72 of the act of 1961, and made the following pertinent remarks, which, to a great extent, cover the controversial points raised before us by the parties : 'it is now to be seen what the effect is of the provision for the surplus allowance being added to ..... , decided under the provisions of the indian income-tax act, 1922, applies to the instant case under the provisions of the income-tax act, 1961, and that, therefore, the carried forward losses should be deducted first from the current year's business profits before deducting the current year's depreciation, is erroneous in law 3. ..... depreciation, carried forward depreciation and carried forward losses against the profits and gains of business for the current year arises in this reference in view of the provisions contained in sections 32(2) and 72(2) of the income-tax act, 1961 (which is hereinafter referred to as 'the act'). 2. .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]106ITR159(Guj)
..... at the present stage we are merely considering whether the initiation of the reassessment proceedings under section 147(b) of the income-tax act, 1961, was valid or not and, secondly, whether the only ground on which the reassessment proceedings were initiated having subsequently been found in favour of the assessee, the reassessment proceedings in respect of other items held against ..... commissioner further held that since this cess was an item of admissible expenditure, there was no legal sanction behind the income-tax officer's action in reopening the assessment under section 147(b) of the income-tax act, 1961, because the cause of action for which the assessment proceedings were sought to be reopened was non-existent. ..... we, therefore, hold that the tribunal was not justified in law in upholding the appellate assistant commissioner's order by which the reassessment under section 147(b) read with section 148 of the income-tax act, 1961 was cancelled. ..... the privy council in the case had considered the provisions of section 10(4) of the indian income-tax act, 1922, comparable to section 40(a)(ii) of the act of 1961. ..... it was considered that this would be an allowable deduction under section 30 of the act of 1961. ..... , on the facts and in the circumstances of the case, the tribunal was justified in law in upholding the appellate assistant commissioner's order cancelling reassessment under section 147(b) read with section 148 of the income-tax act, 1961 ?' 2. .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]104ITR132(Guj)
..... to revenue expenditure incurred wholly and exclusively for the purpose of running their business and are, therefore, allowable as proper deductions under section 37 of the income-tax act, 1961, while the contention of the revenue is that such charges being levied on the basis of the estimated increment in the value of the land covered by the town planning scheme ..... was completed on the date of declaration of the intention to make the scheme and the market value on that date without making any such assumption. 10. section 67 of the act contemplates adjustment of the amount of contribution with the increased or decreased estimated market value of the plot included in the final scheme ..... of the assessees in these references, however, raised several contentions to show that in spite of the above referred provision of the act, the charges in question are revenue charges, which are required to be paid on commercial expediency of keeping the assessees' business ..... circumstances of the case, the tribunal was correct in law in finding that the payment of the betterment charges to the ahmedabad municipal corporation under the provisions of the town planning act, 1954, made by the assessee was allowable as a deduction under section 37 of the income-tax act, 1961 ?' 2. ..... advocates of the parties, it would be necessary to consider the relevant provisions o f the bombay town planning act, 1954, with a view to understand the real nature of the contribution, which is known as 'betterment charges .....
Tag this Judgment!Court : Gujarat
Reported in : [1995]215ITR95(Guj)
..... the person concerned of being heard and making such enquiry as may be prescribed, shall, within 120 days of the seizure, make an order, calculating the amount of tax on the income so estimated in accordance with the provisions of the act, with interest, and retain in his custody such assets or part thereof as are, in his opinion, sufficient to satisfy the aggregate of the amounts which would be determined as per clauses (ii), (iia) and (iii) and forthwith ..... that the same were purchased from undisclosed income, then the value of the said ornaments is required to be included in the income, and the assessee is required to be taxed as provided under section 132(5) of the income-tax act, 1961 ('the act'). ..... possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing and any statement made by such person during such examination may there after be used in evidence in any proceeding under the act. 22 ..... 1, income-tax officer, ahmedabad, is an assessing officer who has the jurisdiction to assess the income of the petitioner under the act. .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]108ITR264(Guj)
..... as regards the second question regarding section 187, sub-section (2) of the income-tax act, 1961, where at the time of making an assessment under section 143 or section 144 it is found that there was a change which has occurred in the constitution of the firm, the assessment shall be made on the firm as constituted at the ..... further, the form contemplated by section 184(7) of the income-tax act, 1961, was filed in connection with the period uptill march 9, 1963, and it was also pointed out before us that the major source of profit was of the business mentioned in set no. ..... of the period of each respective contracts, it is obvious that though under clause 8 of the partnership deed there was a provision that there should not be an automatic dissolution of the firm as contemplated by the usual provisions of the partnership act, yet in this particular case by mutual agreement of the parties the partners appear to have agreed upon a dissolution of the firm. ..... under clause 6 of the deed of partnership dated december 11, 1961, it was stated that the partnership was a partnership at will. .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]108ITR500(Guj)
..... of the case the tribunal were right in holding that the amount of commission paid to the employees was allowable as a deduction but we hold that it was allowable under section 36(1)(ii) of the income-tax act, 1961, and not under section 37 of the income-tax act, 1961. ..... has rightly contended that when any sum is paid to an employee as commission for services rendered, the case would fall under section 36(1)(ii) of the act of 1961 and not under section 37 since section 37 is a residuary section which deals with cases not specifically dealt with, inter alia, in section 36 of the act. ..... the test of commercial expediency and of the tests of the proviso as explained in laxmandas sejram's case : [1964]54itr763(guj) , it is open to us to so decide under the advisory jurisdiction conferred upon us by the income-tax act, 1961. ..... portion so left could be construed as a reasonable amount of commission paid to the employees and there could not be any objection for such payment and such a payment could be allowed under section 36(1)(ii) of the act of 1961. ..... but was reimbursement of the expenses necessary to be incurred for the purpose of business which the assessee was carrying on and it held that the claim was allowable under section 37 of the income-tax act, 1961. ..... 'whether, on the facts and in the circumstances of the case, the tribunal was right in holding that the payment of commission paid to the employees of the respondent is allowable under section 37 of the income-tax act, 1961 ?'2. .....
Tag this Judgment!Court : Gujarat
Reported in : (1997)140CTR(Guj)418; [1997]225ITR84(Guj)
..... keeping in view the broad meaning which can be assigned to plant it has to mean organisation itself or to include within itself an apparatus, which may be machinery as well and keeping in view use of separate expressions in the act and presumption of different rate on written down value of each building, machinery and plant used in carrying on business of the assessee, whether of manufacture or not, it must be held that what is required to be considered for purpose of computing ..... in view of the aforesaid, we are unable to accept the contention of the learned counsel for the assessee that 'plant' for the purposes of computation of allowable deduction as depreciation under it act should be taken to mean an entire organisation or unit as a whole comprising of all apparatuses installed therein which are necessary for its function but it will have to be seen that for the purposes of carrying on business of the ..... also usefully refer to the meaning of 'plant' as given in words and phrases legally defined (butterworth) which states that 'in the context of an act which deals with what goes on in factories, 'plant' is an ordinary english word in common usage whose meaning is well understood. ..... of the it act, 1961 since sub-s. ..... it be said that because the air-conditioners are necessarily used for the functioning of the factory, it becomes an artificial silk manufacturing machinery or plant on a close reading of the scheme of the act and the rules, our answer to the question is in the negative. .....
Tag this Judgment!Court : Gujarat
Reported in : [1974]95ITR624(Guj)
..... income shall be deemed to have been detected by the income-tax officer if - (i) on the basis of any statement, information, document or other relevant material (including any asset seized under section 132 of the income-tax act, 1961 (xliii of 1961)), which is in the knowledge or possession of the income-tax officer before the date of the declaration, or (ii) on the basis of any statement, information, documents of other relevant material (including any asset seized under any ..... in this section shall apply to the amount representing income assessable for any assessment year for which a notice under section 22 or section 34 of the indian income-tax act, 1922 (xi of 1922), or section 139 or section 148 of the income-tax act, 1961 (xliii of 1961), has been served upon such person and the date for furnishing the return, whether fixed originally or on extension, falls beyond the 19th day of august, 1965, and ..... (10) provides that the amount of voluntarily disclosed income shall not be included in the total income of the declarant for any assessment year under either the indian income-tax act of 1922 or the income-tax act of 1961, provided that he has credited such amounts in his books of account. ..... (1) of section 24 makes it clear that the declaration, which are expected to be made under sub-section (2), are with regard to the income which was chargeable to tax either under the indian income-tax act of 1922 or under the income-tax act of 1961, but which was not disclosed at the proper time. .....
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