Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-23-2006
Reported in : (2006)101ITD103(Mum.)
..... forfeited by the assessee but the nature remains the same as capital receipt. the learned counsel of the assessee further argued the charging sections of income-tax act, 1961, arc sections 4 and 5 and under these sections only those income can be charged to tax which falls under any head of income. if it does not fall under any prescribed ..... of "profits and gains of business or profession" with the submission that this type of receipt does not fall in any category of the receipts given under section 28 of the act. since there is no specific head with regard to chargeability of receipt on account of forfeiture of non-convertible debentures for default in making payment of call ..... the hon'ble apex court and the various high courts in the above mentioned cases, we are of the view that for invoking the provisions of section 41(1) of the act an allowance or deduction must have been granted during the course of assessment for any year in respect of loss, expenditure or trading liability incurred by .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-23-2006
Reported in : (2006)104TTJ(Mum.)630
..... , shall include all such payment notwithstanding any right arising as a consequence to such payment.from the perusal of the aforesaid provisions of the act, it appears that, this section provides that the valuation of purchase and sale of goods and inventory for the purpose of computation of income from business of profession or profession ..... the assessee is entitled to claim the deduction of excise duty on the manufactured goods at the time of sale subject to the provisions of section 43b of the act. therefore, the amount of unutilised modvat credit referable to opening stock would be allowed as deduction against the liability of excise duty payable on manufactured ..... stock. the ao is, therefore, directed to recompute the value of purchase, sales, opening stock and closing stock in accordance with the provisions of section 145a of the act after giving an adequate opportunity of being heard to the assessee. however, the ao shall ensure that no double deduction is allowed to the assessee in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-29-2006
Reported in : (2006)100ITD217(Mum.)
..... . 495 dated 22-9-1987 (168 itr (st.) 87) issued by the cbdt by way of explanatory notes to the amendments brought in by the finance act, 1987. in section 70 of the act, the circular has stated that the distinction between short term and long term capital assets, though conforming to the principle of equity of taxation, has led to ..... the head capital gains need to be considered as an independent source. (4) this independent character of "source" is apparent in the words used in sections 45 and 70 of the act. in section 45, the profits or gains is to be computed from the transfer of a capital asset. whereas the law relating to set off of loss provides that ..... the financial year for a particular source of income, it will not change with the change of head under which income from the said source is assessed. section 14 of the act classifies the income of the assessee under different heads only for the purpose of charge of income-tax and computation of total income. income falling under the same .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-29-2006
Reported in : (2008)297ITR115(Mum.)
..... that in the year of receipt of income there shall be a pe in india. he referred to the language of explanation 2 to section 5 and section 5(2) and section 9 of the it act 1961 in support of taxability of income of the assessee company during the relevant period. he submitted that there are four types of model ..... for this very assessment year 2001-02 computed income from the assessee's dividends, business carried out in india from different sites and therefore the provision of section 176(3a) of the act cannot be applied where the business of the assessee is not totally discontinued. in support of its preposition that where the assessee itself ceased to exist, ..... of rs. 30.78 crores received by the assessee in relation to the nmpt project and this amount was treated as income from its discontinued business under section 176(3a) of the it act, 1961, apart from certain other additions and disallowances. the appeal to the cit(a) was also unsuccessful and the main additions made by the assessing .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-29-2006
Reported in : (2006)101TTJ(Mum.)1109
..... -98. the appeal is directed against the order passed by the cit(a)-ii at mumbai on 21st jan., 2003 and arises out of the assessment completed under section 143(3) of the it act, 1961.2. we heard shri a.k. singh, the learned departmental representative appearing for the revenue and shri f.b. andhyarujma, the learned senior counsel for the respondent ..... , it would not be possible for any company to invest in the shares of another company and to dispose of the investment subsequently, without inviting the wrath of explanation to section 73. the delhi bench of the tribunal in the case of aman portfolio (p) ltd. v. dy. cit (2005) 92 ttj (del) 351 : (2005) 92 itd 324 (del) has held ..... that the provisions contained in the explanation to section 73 could be invoked only where a device is adopted by an assessee company to reduce its taxable income. in the present case, there is no such case as the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-31-2006
Reported in : (2006)103TTJ(Mum.)517
..... deduction shall be made in respect of any expenditure incurred by the assessee in relation to income which does not form part of the total income under the it act.section 14a provides for disallowance of expenditure in relation to income which does not form part of the total income. it is assessee's own total income that ..... it cannot be allowed against any other income because borrowed capital was not utilised for earning any other income. this is what is the scheme of act even without section 14a. the argument of the learned counsel for assessee that firm is taxed and therefore income coming into the hands of the partner is also claimed to ..... assessable business income of the appellant, firstly on account of the firm's recurring losses and secondly in view of the exemption of share income under section 10(2a) of the it act. therefore, the argument that interest should be allowed against business income does not carry conviction it being without force. therefore, the claim of interest payment .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Mar-31-2006
Reported in : (2006)102ITD311(Mum.)
..... profits determined after the date of distribution or payment. whatever judgments were referred before us, they all relates to the pre-amendment periods i.e., i.t. act, 1922 in which section 2(6a) deals with the accumulated profit and accumulated profit was defined through series of judgments of the apex court and various high courts. but, to nullify the ..... v. murugappan62 itr 382 and cit v. pk. badiani 76 itr 369 similar view was taken by the respective high courts. sub-clause (e) of section 2(6a) of 1922 act was amended in 1956 so as to include for the purpose of that sub-clause, current profits and amended sub-clause referred to accumulated profits immediately before its ..... and/or substantially reduced. b. addition of rs. 1,76,40,000/- in respect of alleged unexplained cash credits of various parties by invoking the provisions of section 68 of income tax act, 1961. 3. on the facts and in the circumstances of the case the learned cit (a) erred in facts and in law in confirming addition of rs .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Apr-03-2006
Reported in : (2006)103ITD19(Mum.)
..... in opening stock of the same assessment year.the necessary disallowance was made by the assessing officer and the cit(a) discussed elaborately the amendment to section 145a of the act and was of the opinion that the contentions of the assessee are not acceptable. according to him even when a legal fiction is created it has ..... the business already in existence. atleast, this was not the line on which the assessing officer has examined the issue while he denied the deduction under section 80i of the act to the assessee. the only ground was that captive consumption of power does not result in the realization of revenue. the learned counsel further pointed out ..... -99 his predecessor has decided the issue in favour of the assessee. therefore, in principle, he held that the assessee is eligible for deduction under section 80-ia of the act in respect of the profit derived from the business of generation and distribution of power. then he addressed to the issue regarding the computation of profits .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Apr-17-2006
Reported in : (2007)105ITD86(Mum.)
..... the assessee incurred total expenditure of rs. 7,08,51,925. 1/10th of the above expenditure was claimed during the present assessment year under section 35d(ii) of the it act. it was claimed before the assessing officer that the deduction is allowable as the aforesaid expenditure was in connection with the extention of the assessee's ..... business of providing technical and industrial consultancy on the basis of computers and of undertaking electronic data processing was an industrial company within the meaning of section 2(7)(c) of the finance act, 1981.the id. counsel also drew support from the supreme court judgment in the case of bangalore water supply & sewerage board v. a. ..... by the assessing officer. if the assessee has already been allowed deduction of 1/10th of the eligible expenditure prior to commencement of business, under section 35d(1)(i) of the it act, such deduction at 1/10th of the expenditure has to be allowed for a period of 10 years.it is claimed that the deduction of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Apr-18-2006
Reported in : (2007)109TTJ(Mum.)34
..... no.101/mum/2002 where, under similar facts, the mumbai bench 'a' of the tribunal held that the assessee was entitled to deduction under section 80hhc of the act where he had purchased in bangladesh a ship belonging to shipping corporation of india and sold the same in bangladesh itself. the learned authorised representative of ..... authorised representative of the assessee pleaded that it appeared from the reasoning of the lower authorities that the ao would have allowed the deduction under section 80hhc of the act, if the goods shipped from germany had touched the shores of india even for a few days before being shipped to bangladesh. the commercial expediency ..... etc. therefore, the assessee having exported goods out of india and earned the foreign exchange and brought the convertible foreign exchange into india as stipulated under section 80hhc of the it act, 1961, it was requested that taking into account the submissions made on facts and law, the same may kindly be allowed.2.2 the cit .....
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