Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)50ITD123(Mum.)
..... contentious. fourthly, the tribunal had restored the addition on inference drawn on the material available on record. fifthly, the high court had granted reference under section 256(2) of the act. the facts of the case were considered in detail thereafter and the tribunal cancelled the penalty as a result of the above cumulative five factors. thus, ..... the decision cannot be said to have laid down a legal proposition that in a case where reference was granted under section 256(2), of the act, no penalty under section 271(1)(c) of the act could be sustained solely on this ground. however, the decision is a precedent for the proposition that such a reference is one ..... designation of the assessing officer as well as the permanent account number of the creditor were also supplied. the tribunal has even granted a reference under section 256(1) of the act. in the circumstances, there is no question of holding that the assessee's explanation has been found to be false.25. coming to the sum .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)48ITD77(Mum.)
..... for income-tax purposes was completed by the income-tax officer accepting whatever was disclosed by the assessee.subsequently, the commissioner of income-tax (acting perhaps under section 263 of the income-tax act) came to know that this particular property was valued in connection with the gift-tax matter at rs. 47.81 lakhs. the commissioner of ..... 'a' : "whether, on the facts and in the circumstances of the case, the commissioner of income-tax was justified in passing the order under section 263 of the act on the premise that the order of assessment passed by the income-tax officer for the year under consideration was erroneous being prejudicial to the interests of ..... by the company to the assessee, the assessee has received a benefit, which is income within the meaning of sub-clause (iv) of clause (24) of section 2 of the act and is, therefore, taxable. the commissioner was thus justified in passing the impugned order. this appeal is, thus, liable to be dismissed. the appeal is accordingly .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)48ITD557(Mum.)
..... included in the net wealth of the assessee for the purpose of assessments to wealth-tax as they were assets belonging to him within the meaning of section 2(m) of the wealth-tax act, 1957. for all legal purposes, the properties had to be treated as belonging to the assessee. it was also stated that the liability to wealth-tax arises ..... any purchaser of property would have taken into account all the impediments and constraints involved when the property is tenanted already and the tenants are protected by the rent control act. the cwt(a) also noticed the fact that the assessee had incurred huge amounts on repairs and renewals. on these facts and also in view of the fact that there .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)48ITD369(Mum.)
..... of the debtors, it was held by the high court of bombay that the two debts had actually been written off in the assessee's books within the meaning of section 10(2)(xi) of the i.t. acter, 1922. the issue was also examined by the high court of gujarat keeping in view the provisions for bad debts in the ..... be recovered at a future date, and its close does not stand as a refrain to its recovery. it cannot be gainsaid that sufficient provisions exist in the income-tax act to garner tax on any such receipt.15. in the result, we are sanguine that the amount of rs. 94,81,300 could not be added to the income of ..... the case of vithaldas h. dhanjibhai bardanwala v. cit [1981] 130 itr 95 wherein it was held that the provision in the existing act was akin to that of the 1922 act and it was not imperative to post corres-ponding entries in the ledger a/c of the concerned parties and closed their account. obvious as it is, the underlying idea .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)47ITD103(Mum.)
..... assessment year. the assessee also undertook to refund to the customers the balance amount. in these circumstances, there is no benefit to the assessee as contemplated by section 41(1) of the act, by way of complete remission or cessation of the liability, as laid down by the high courts of allahabad, madras, madhya pradesh, calcutta, punjab and ..... collections to the sales tax department were also not brought into the debit side. in that case, the income-tax officer invoked the provisions of section 41(1) of the act and held that the amount collected by the assessee as contingent deposit was taxable. however, the hon'ble high court held that jaggery was exempt ..... upon the assessee having received the refund, and courts have held against the doctrine of unjust enrichment by achieving restitution to subserve the objective of section 72 of the contract act and thereby the refund was embedded with an implicit condition that the amount of refund should be paid to customers, as held in the case .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)51ITD285(Mum.)
..... detailed reasons adopted by them on the basis of the contentions raised before them. however, it appears that the claim is made on the basis of section 36(1)(iii) of the act, which allows deduction of the amount of interest paid in respect of capital borrowed for the purposes of business. now, in this case there is no ..... as a corollary, it cannot be held that the interest was allowable as revenue expenditure. however, difficulty arises because of the amendment made by the finance act, 1986 whereby explanation 8 to section 43(1) has been inserted with retrospective effect from 1-4-1974. hence, now such interest cannot be treated as part of the cost of plant and ..... court in the case of ballarpur paper and straw board mills ltd. v.cit [1979] 118 itr 643. he has also stated that explanation 8 to section 43(1) inserted by the finance act, 1976 with retrospective effect from 1-4-1974 supported the case of the assessee, because now the assessee cannot capitalise such interest liability, but it has .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)47ITD416(Mum.)
..... consideration i.e., assessment year 1989-90, the method has been changed to "at cost or market value, whichever is lower" and has invoked proviso to section 45(1) of the it act on the ground that true profits cannot be ascertained due to the change in the method of accounting. the learned departmental representative has also argued on the ..... method (first in first out) as was done by the assessing officer. in this connection it will be useful to refer to clause (1) of section 145 of the income-tax act, 1961, according to which the income from business shall be computed in accordance with the method of accounting regularly employed by the assessee. it is laid ..... court held that the assessing officer was entitled and had a duty to adopt appropriate computation to determine the true income by applying the proviso to section 145(1) of the income-tax act.11. the learned counsel stated in the end that the action of the assessing officer was not only not justifiable but also inconsistent.in this .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)47ITD111(Mum.)
..... gross total income, should not be adjusted for the purpose of determining the book profits would be totally unjustified, especially in an order passed by him under section 154 of the act. our attention in this connection is also invited to the circular no. 559 dated 4-5-1990 issued by the central board of direct taxes explaining the ..... the deduction would arise when there is a gross total income. when the gross total income is not a positive figure there can be no deduction under section 80hhc of the act and in such circumstances the notional deduction as claimed by the assessee cannot be allowed.5. we have heard the parties to the dispute and in our ..... like this. it only says that the book profits should be adjusted by the amount of deduction admissible under section 80hhc of the act and computed in the manner laid down under sub-section (3) or sub-section (3a) of that section. there would be no justification to read something which has not been incorporated in the circular, namely that what .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)46ITD31(Mum.)
..... you may apprise the bench of this confidentially. it is relevant to point out that the case of the assessee for the earlier years already reopened under section 17 of the act will turn on this crucial issue. the bombay high court has, while disposing of the assessee's writ petition against the reopening of the assessments, referred ..... pages 80 and 81 of the assessee's paper book (volume i), which, in terms, is a photostat copy of the notification taken from the foreign exchange regulation act, 1973. reference is to section 9 of the said enactment.] 17. the nepal company, hereinafter to be called "sial" (the sterling industrial agencies pvt. ltd.), on march 7, 1975, ..... are legal, it is not bad in law ; the nepal company has no commercial transaction since it is not a trading company but an investment company and section 109 of the act, i.e., the law itself recognises such company ; learned counsel for the assessee conceded that the nepal company is an investment company of the assessee and .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)47ITD154(Mum.)
..... therefore, submitted that the assessee's ground of appeal should be rejected.19. we have considered the rival submissions carefully. the dispute regarding application of section 115j of the income-tax act is narrowed down to the computation of book profits i.e., the net profit as shown in the profit and loss account. this profit and loss ..... that every company assessee shall prepare its profit and loss account in accordance with the provisions of parts ii and iii of schedule vi to the companies act, 1956 for the purposes of section 115j. thereafter, the explanation below the above clauses defines "book profit". it means the net profit as shown in the profit and loss account ..... assessee. ground no. 1 is reproduced below :- the learned commissioner of income-tax (appeals) had erred in confirming the 30% of the book profit under section 115j of the income-tax act, 1961, determined at a figure of rs. 47,43,691; as against the nil book profit declared by the assessee in its return of income. .....
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