Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Mar-10-2006
Reported in : (2008)111ITD37(Chennai)
..... the total income of an assessee which has been either received or accrued shall be computed in accordance with the provisions of section 145 of the act. accounting standards i & ii under sub-section (2) of section 145 of the act, have been issued in consultation with the institute of chartered accountants of india. therefore, once income which has accrued shall be ..... would not alter the nature of receipt if it is actually a trading receipt. respectfully following the decision of hon'ble madras high court in the case south india explosives co. (supra) and decision of hon'ble supreme court in kcp ltd. (supra), it is held that sales tax collected on hire purchase transaction was liable ..... the court. we find that this issue is covered in favour of revenue by the decision of jurisdictional high court in the case of cit v. southern explosives company 242 itr 107 wherein it has been held that the amounts collected by the assessee were amounts which were meant to be utilised by assessee for meeting .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Jun-23-2006
Reported in : (2007)109ITD226(Chennai)
..... was deducted on that amount. the assessing officer, therefore, rightly treated the assessee as an assessee in default in respect of the tax within the meaning of section 201 of the act. we have perused the reasonings adduced in the impugned order for the assessment years 2002-2003 and 2004-2005. in our opinion the commissioner (appeals) took a ..... hiring an equipment effecting liability under section 9(1)(vi) of the act.referring to the provisions of section 195 of the act it was stated that the liability to deduct tax at source would arise only if the payment could be considered as royalty, ..... was no liability to deduct the tax at source. it was contended that the payment would not fall within the expression 'royalty' as defined under section 9(1)(vi) of the act as well as under the double taxation avoidance agreement. the agreement was made in the context of time charter. time charter is not a contract for .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Mar-10-2006
Reported in : (2006)105TTJ(Chennai)391
..... to implead both of them as legal representatives and held that "i have also issued notices to both the legal heirs in exercise of my powers under section 251 of it act." further, the cit(a) while upholding the order of the ao, has given the following reasoning : it is clear by continuing the appellate proceedings through ..... legal heir certificate produced before the ao and both should have been impleaded as legal representatives. he argued that the expression "legal representative" mentioned in section 159 of the act takes in plurality of legal representatives. if there are more than one legal representative of the deceased person, then all must be impleaded to make the ..... excess relief has been allowed to the assessee on account of interest on unpaid interest and, therefore, he issued notices under section 148 of the act in view of the provisions of section 147 of the act. accordingly, the ao reopened the assessments for both the years on the reasons to believe that the income chargeable to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : May-19-2006
Reported in : (2008)303ITR205(Chennai)
..... incentive scheme under exports and therefore, it has no nexus with the industrial activities of the assessee.accordingly the assessee will not be entitled for deduction under section 80i of the act we therefore set aside the order of id cit(a) and restore the order of the assessing officer.23. in the result the assessee's appeal ..... this ground of appeal raised by assessee.15. the next issue for consideration relates to excluding of rent and interest for the purpose of computing deduction under section 801 of the act. we find that this issue is covered against assessee by the decision of hon'ble supreme court in the case of pandian chemicals ltd. v. cit ..... by assessee, arrive at a finding that he had committed an error in computing the taxable income of the assessee and reopen the assessment by resort to section 147 of the act. discovery of new and important matters or knowledge of fresh facts which were not present at the time of original assessment would constitute a reasonable belief that .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Nov-17-2006
Reported in : (2007)107TTJ(Chennai)475
..... the relevant year. the disallowance was confirmed by the learned cit(a).4. we find that the learned cit(a) has correctly confirmed the disallowance of depreciation. section 32 of the it act, 1961 which deals with allowance of depreciation reads as under: (ii) know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial ..... court in the case of electric control gear mfg. co. (supra) was in respect of chargeability of tax in respect of items mentioned in section 41(2) of the it act, and the decision of karnataka high court in the case of syndicate bank ltd. (supra) was in respect of charging of capital gains under ..... machinery or plant for the purposes of clause (ii) of sub-sction (1) of section 32, 'depreciation actually allowed' shall not include depreciation allowed under sub-sections (a), (b) and (c) of clause (vi) of sub-section (2) of section 10 of the indian it act, 1922 (11 of 1922), where such depreciation was not deductible in determining the wdv .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Jul-14-2006
Reported in : (2007)106TTJ(Chennai)179
..... and inextricably linked with the business, the same will not be excluded to the extent of 90 per cent under clause (baa) to explanation to section 80hhc of the act and this will be considered as business income. the answer to the argument of the learned counsel of the assessee lies in the decision of the ..... ejusdem generis is to be applied and only such receipts, which have an underlying common characteristics, should be excluded for the purpose of expln. (baa) to section 80hhc of the act.he argued that the common characteristics between rent, brokerage, commission etc., are those receipts in the nature of 'dormant receipts' not earned from any business ..... the computation of the business profits, only the net income arising out of the receipts are included.7. the learned counsel of the assessee further referred to section 171 of the contract act (banker's lien), which states as under: general items of bankers: bankers, factors, wharfingers, attorneys of a high court and policy brokers may, in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Oct-13-2006
Reported in : (2007)108ITD279(Chennai)
..... in the business of computer maintenance and services and deduction is allowable in respect of patent, design, invention and registered trade mark as prescribed under section 80-o of the act. the id. counsel for the assessee has drawn our attention to a copy of agreement with astral holdings for providing consultancy work for the website ..... com he has drawn our attention to the meaning of the term "design" and argued that in the present technologically advancing modern world, the purpose of section 80-o of the act, should not defeated by the superficial and narrow interpretation. in the modem growing world, the term "design" cannot be meant narrowly. the assessee as a ..... equal to - in view of the above provision, first of all, we have to determine whether the creation of website falls within the purview of section 80-o of the act or not. the assessing officer has gone through the oxford advanced learner's dictionary meaning of 'design' wherein the word "design" means "general arrangement .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Nov-30-2006
Reported in : (2008)113ITD67(Chennai)
..... during the course of search and not disclosed to the department earlier and came to light only as a result of search or requisition of books of accounts under section 132 of the it act, the ao is at liberty to treat it as undisclosed income and tax the same. further, in the case of lakshmi jewellery v. dy. cit , ..... ) 728 : (2000) 75 itd 183 (all).3. the learned departmental representative submitted that the assessee is not conferred with the power of appeal against action under section 132 of the act. since the search warrant was issued by director of investigation and the director of investigation is not a respondent before the tribunal, without making the director of investigation as ..... of by this common consolidated order for the sake of convenience.2. the brief facts of the case are that there was a search in this case under section 132 of the it act on 29th dec, 1998 for which common search warrant was issued and also common panchnama was drawn in respect of m/s anjuga chit funds (p) ltd .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Mar-24-2006
Reported in : (2006)102TTJ(Chennai)997
..... production of witness. it was the duty of the ito to enforce the attendance of the witness if his evidence is material, in exercise of his powers under section 131 of the act r/w order 16, rule 10 of cpc.at last, the learned counsel of the assessee argued that broadly it might be stated that, assessment order upto para ..... the assessee further relied on para from the book of circular on evidence 14th edn. 1993 by sudipto sarkar and v.r. manoharan which reads as under: section 91 of the indian evidence act, 1872 lays down that when terms and conditions of the contract, or of a grant, or of any other disposition of property have been set out in ..... . the assessee was requested to produce the said parties along with their books of account and bank statements for verification. there was no compliance, even (when) summons under section 131 were issued to all six lessees at the addresses given by the assessee.two lessees were not at the given addresses and the summons returned back. as per the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Decided on : Apr-06-2006
Reported in : (2007)288ITR106(Chennai)
..... the lessee. the next issue relevant to the assessment year 1993-94 only relates to the question whether the claim of depreciation could be denied by resorting to section 154 of the act.55. in regard to the first issue i find that the matter is no longer res integra. the law is trite on the subject. once a leasing ..... has held that the assessee, a company carrying on the business of financing, investment, leasing, etc., which leased out a boiler, was entitled to depreciation under section 32 of the income-tax act, 1961, in relation thereto. in deciding this issue the ratio laid down by the hon'ble supreme court in the case of cit v.shaan finance p ..... allowing the guest house expenses. after going through the material available on record, we find that the guest house expense is not an allowable expenditure under section 37(4) of the income-tax act. therefore, we set aside the order of the lower authority and restore that of the assessing officer.29. the next ground of appeal is regarding research .....
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