Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)18ITD1(Mum.)
..... 1978-79 to 1980-81 are directed against the common order dated 20-7-1983 of the commissioner passed in exercise of powers under section 263 of the income-tax act, 1961 ('the act'). the assessee-company was carrying on business of construction of buildings and other civil construction works. in the original assessments, the ito had ..... the commissioner (appeals). the second was that since the investment allowance had been allowed by the ito in pursuance of directions given by the iac under section 144b of the act, that part of the assessment order in which investment allowance had been granted could not have been revised by the commissioner. as regards the appeal ..... answer to this question rests solely on the interpretation of the expression 'business of construction, manufacture or production of any article or thing' in section 32a(2)(b)(iii) of the act. the submission on behalf of the assessee is that the business of the assessee was business of construction and, as such, the said business .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)18ITD256(Mum.)
..... appeals is that the learned commissioner (appeals) had erred in holding that the general reserve no. 2 which was created out of the profits exempt under section 80j of the 1961 act, should be included in the computation of the capital base for the surtax purposes. this point has been decided on identical facts against the department and in ..... from income by way of dividends and income by way of royalties should not be taken into account. we are unable to accept this submission. in section 80a of the 1961 act it is mentioned that in computing the total income, reductions are to be made in accordance with the provisions of chapter via. it is obvious that ..... v. addl. cit [1979] 118 itr 243. in that decision, the supreme court held that the words 'income by way of dividends' occurring in section 80m of the income-tax act, 1961 ('the 1961 act'), referred to gross dividends and not net dividends. however, the said decision has been overruled recently by a five judge bench of the supreme court in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)16ITD9(Mum.)
..... shri tuli was that the so-called scholarship under consideration here was not paid to the assessee but to the assessee's children and, therefore, the provisions of section 10(16) of the act will have no application. on this basis, according to shri tuli, the assessee cannot claim that the amount of rs. 3,450 was scholarship granted to meet the ..... its judg ment did not consider whether this scholarship amount could be brought to tax in view of the provisions of section 17(2)(iv) of the income-tax act, 1961 ('the act') on the ground that even though the argument under sec tion 17(2)(iv) was specifically canvassed by the revenue before the tribunal, the tribunal gave reasons for rejecting that argument .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)16ITD506(Mum.)
..... of computation of the capital gain. he, accordingly, treated the amount of rs. 43,000 as capital gains and after giving deduction of rs. 20,200 under section 80t of the act brought the balance of rs. 25,590 to tax.4. the learned aac before whom the assessee had filed appeal against the assessment order accepted the contention of ..... income the assessee made a mention about the receipt of the said amount of rs. 43,000 and in the explanatory note he claimed exemption under section 10(3) of the income-tax act, 1961 ('the act') on the ground that the receipt in question was casual and nonrecurring. however, by letter dated 19-2-1980, the assessee expressly gave up ..... the plea that the said receipt was exempt from inclusion in the total income under section 10(3). he raised another ground in the said letter. that .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)19ITD369(Mum.)
..... of 'person who has substantial interest in the company', as defined in section 2(32) of the income-tax act, 1961 ('the act'). the ito held that provisions of section 40(c) of the act, which are as under : notwithstanding anything to the contrary in sections 30 to 39, the following amount shall not be deducted in computing the ..... the commissioner (appeals) held that larsen & toubro ltd. came within the category of 'person who has substantial interest in the company' and, as such, provisions of section 40(c)(i) were applicable. he, accordingly, confirmed the disallowance under the said provision made by the ito. the assessee has now come in appeal before us against ..... company'.5. we have considered the rival submissions. we find that the expression 'person who has substantial interest in the company' has been specifically denned in section 2(52). according to that definition such person in relation to a company means 'person' who is beneficial owner of shares carrying not less than 20 per .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)18ITD50(Mum.)
..... opinions on the issue of condonation of delay in filing the appeal before the tribunal, the following question is referred to the hon'ble president under section 24(11) of the act, for appointing a third member to hear the miscellaneous application so that the same may be decided in accordance with the majority view : whether the ..... not, that we cannot say at this stage.it is not apparent mistake from the record which can be rectified under the miscellaneous applications.reference under section 24(11) of the wealth-tax act, 1957 in misc.application nos. 34 and 46 (bom.) of 1985 these miscellaneous applications were heard by dr. v. balasubramanian, senior vice president ..... and if an assessee chooses one remedy he cannot have recourse to the other. this would be clear from clause (a) of the proviso to section 25(1) of the wealth-tax act....apparently, the tribunal also fell into an error in believing that there could be a revision petition from the commissioner (appeals) to the commissioner ( .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)16ITD499(Mum.)
..... had enunciated the requirements of a partnership as under : 8. in k.d. kamath & co.'s case (supra), the supreme court held that the legal requirements, under section 4 of the partnership act to constitute a partnership in law, are : (i) there must be an agreement to share the profits or losses of the business; (ii) the business must be carried ..... has denied having signed the form no. 11 which was produced to him, as the name of shri pardawala was written on it. he further laid stress on section 185 of the act where the ito is empowered to look into the genuineness of the firm. according to mr.roongta, a partner should be sharing not only the profits but also ..... observes that form no. 11 filed originally on the basis of which registration was granted is also not in order. he had examined shri pardawala under section 131 of the income-tax act, 1961 ('the act') who had categorically stated that he was a partner with effect from 1-1-1976 and remained so till 30-9-1977. the ito's apprehension .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)19ITD219(Mum.)
..... the hon'ble supreme court in a number of judicial pronouncements has laid down that even though the words used in the definition of 'business' under section 2(73) of the act are wide, underlying each of them is the fundamental idea of continuous exercise of an activity, i.e., some real, substantive and systematic or organised course ..... dividends, while it incurred a loss in the business of exports, the net result being a very small income, which was offset by the deduction under section 80m of the act.proceeding further he submitted that the total investments of the assessee-company, according to the audited balance sheet of the company, at the end of the ..... order.2. the assessee is a private limited company and the appeal relates to the assessment year 1978-79. the ito applied the provisions of section 40a(8) of the income-tax act, 1961 ('the act') and out of the claim of deduction of interest to various persons (other than banks) disallowed 15 per cent. before the commissioner (appeals) .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)15ITD514(Mum.)
..... (iii) of clause (14) of section 2 of the act was substituted by the finance act, 1970, with effect from that date. he, therefore, argued that the order of the commissioner (appeals) on this issue was erroneous and that the ..... the present case to bring to tax the surplus arising on the sale of the lands in question by the assessee as capital gains under section 45 of the income-tax act, 1961 ('the act').he argued that the notification issued by the central government on 6-2-1973 would take effect from 1-4-1970 itself when sub-clause ..... should be established that the plant is owned by the assessee, and (3) the assessee must furnish the prescribed particulars in accordance with the provisions of section 34(2)(z) of the act. in the circumstances which we have indicated earlier, the enquiry as to whether the assessee satisfied the above conditions has not been made at the lower stages .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)15ITD571(Mum.)
..... pulp, which was an intermediate product, in its cellulose project, it could not be said to have begun to produce or manufacture articles within the meaning of section 84 of the act. on the face of it, there is really no conflict between the rulings of the bombay and gujarat high courts, though on p. 554 the bombay high ..... year 1978-79.2. the question at issue is whether the firm engaged in the business of constructing dams, etc., was entitled to deduction under section 80hh of the income-tax act, 1961 ('the act'). the ito held that the assessee was not entitled to deduction while the commissioner (appeals) held in favour of the assessee.3. we have heard ..... penicillin, the only product that could be sold in the market, can the assessee be said to have started manufacturing an article within the meaning of section 15c of the indian income-tax act, 1922. the gujarat high court in cellulose products of india ltd.ls case (supra) took the view that when the company started production of cellulose .....
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