Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)13ITD347(Mum.)
..... those ship models should be treated as 'furniture' owned and used by the assessee for the purpose of the business and, as such, depreciation was allowable under section 32.5. we may now refer briefly to the reasons given by the ito in holding that those models would not come under the category of furniture. the ..... requires consideration is whether the said ship models could be treated as 'plant' for allowance of depreciation under section 32 of the income-tax act, 1961 ('the act'). it is now well settled that the term 'plant' in section 32 includes whatever apparatus is used by a businessman for carrying on his business, not his stock-in-trade ..... carrying on its business. consequently, they would not come in the category of 'plant' for claiming depreciation.4. the term 'furniture' has not been defined in the act. it would, therefore, be necessary to refer to the dictionary meaning. webster's new international dictionary defines furniture to mean 'articles of convenience or decoration used to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)13ITD331(Mum.)
..... say that it has incurred the expenditure of rs. 6,13,308 which is of the nature specified in sub-section (2) of section 35 of the act. now, the above sum of rs. 6,13,308 is, admittedly, more than two and a half per ..... the existing unit which started functioning with effect from the first day of the previous year. therefore, the assessee will come under section 35d, if at all, under the second situation, namely, after the commencement of the business in connection with the extension of ..... to have rejected the assessee's claim regarding deduction under section 35d instead of setting aside the assessment on this issue without any valid basis.the assessee claimed deduction under section 35d of the income-tax act, 1961 ('the act'), on investment of rs. 1,35,22,034. ..... cent of the cost of the project or the capital employed in the business of the assessee as laid down in sub-section (3) of section .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)13ITD215(Mum.)
..... 6. after hearing the parties, we have come to the conclusion that the expression 'non-resident' in clause (4a) of section 10 means 'non-resident' as defined in section 2(30) of the said act. section 2 expressly states that the definitions given therein would apply to the terms defined whenever those terms were found used in the ..... 19,377, respectively. the assessee claimed that said income was not includible in computing the total income. he relied on the provisions of section 10(4a) of the income-tax act, 1961 ('the act'). the ito as well as the commissioner (appeals) negatived this claim on the ground that exemption under the said clause would be available ..... explanation inserted in the said clause by the said amendment that the said term would have the meaning assigned to it in clause (q) of section 2 of the foreign exchange regulation act, 1973. thus, after this amendment, the clause would be applicable to all those persons who come within the definition of 'person resident outside .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD598(Mum.)
..... and that the legal expenses in defending the right to the shares were not also deductible.their lordships held that under section 12(2) of the 1922 act, corresponding to section 57(iii) of the 1961 act, the allowance is in respect of the expenditure incurred for the purpose of making or earning income and, hence, it ..... correlated. the point made out by the learned departmental representative was that a particular income would be derived from a particular source in contradistinction to section 37(1) of the act, which allows expenditure laid out wholly and exclusively for the purposes of business. in this connection, the learned departmental representative referred to the decision ..... in his reply, submitted that the decision in the case of mills store co. (supra) was a case arising under section 10(2)(iii) of the 1922 act, corresponding to section 36(1)(iii) of the 1961 act, relating to the allowance of interest on borrowings for the purpose of business and, therefore, the said decision would be .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)11ITD723(Mum.)
..... on behalf of the appellant-bank.13. it may be that for the purposes of computing the income from property, this rental income would be assessable under sections 22 and 23 of the act. but it does not mean that this income ceases to be the business income of the appellant-bank, since the business of the appellant is essentially ..... appellant claimed in the course of the assessment proceedings that the rental income of rs. 19,990 from the house property would be exempt under section 80p(2)(e) of the income-tax act, 1961 ('the act') the ito did not accept this claim, as he was of the view that the income from house property was not derived as a ..... radhaswami bank lid's case (supra), the supreme court held that the scheme of the income-tax act is that income-tax is one tax, that section 6 of the indian income-tax act, 1922 ('the 1922 act'), corresponding to section 14 of the 1961 act, classifies the taxable income under different heads for the purposes of computation of net income of the assessee .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD480(Mum.)
..... on an income of rs. 1,90,679, disallowing a loss of rs. 1 lakh referred to above. shri jivraj pointed out that under proceedings in section 144b of the income-tax act, 1961 ('the act'), among others, the assessee addressed three letters, first one dated 10-9-1982 to the ito and the others dated 6-9-1982 and 15-7-1982 ..... amounts were spent in 1948 and not in the year of account ending december 31, 1951. they could not, therefore, be allowed as business expenditure under section 10(2)(xv) of the income-tax act, 1922. (ii) that as the assessee-company was neither a banker nor a moneylender, the advances paid by the assessee-company to the private company to ..... rights in respect of a sum of rs. 2,87,422. that assessee claimed this amount as a permissible deduction either under section 10(2)(xi) or section 10(2)(xv) of the indian income-tax act, 1922 ('the 1922 act'). on the assessee's appeal being allowed, at the instance of the commissioner, the following question was referred for the court's .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)13ITD270(Mum.)
..... sustained by the commissioner (appeals).24. shri mehta for the assessee pointed out that as observed by the commissioner (appeals). section 43b of the income-tax act, 1961 ('the act') was inserted by the finance act, 1983, with effect from 1-4-1984.according to shri mehta, the issue of the principles of ascertainment of cost had ..... of cost for inventory valuation. all the itos are requested to study the above instruction no. 1389 along with the guidance notes and take suitable action under section 145(1) proviso as recommended by the director of inspection (special cell) wherever under valuation of closing stock has been resorted to by the assessee by the ..... principles of commercial accounting and this would be evident from the speech of the finance minister explaining the rationale behind the introduction of the new provisions of section 43b. such remarks are as under: several cases have come to notice where taxpayers do not discharge their statutory liability such as in respect of excise .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD381(Mum.)
..... assessee. firstly, the basic rule of interpretation is that we should take the plain meaning of the words and if it is not fitting in the scheme of the section of the act, then only we can take the other meaning than the normal meaning of the words given in the definition here. secondly, the information regarding the commercial market, experience of ..... the commissioner (appeals) has erred in holding that 50 per cent of the export commission of rs. 11,87,683 is taxable under section 9(1)(vi) and section 9(1)(vii) of the income-tax act, 1961 ('the act'). the assessee claimed that commission in question is not taxable, while the revenue claimed that the entire commission is taxable.2. the relevant ..... its own object. the only thing to be seen is that the interpretation does not go contrary to the scheme of the act. here, in section 9, we are concerned with the deemed income which the legislature wants to tax. when the intention of the legislature is to tax such income by giving a wider meaning .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)13ITD648(Mum.)
..... deposit of rs. 2,20,000 in maharashtra state road transport corporation. without prejudice to the above, your appellant submits that they are entitled to accumulation under section 11(2) of the act in respect of the amount of rs. 2,17,210 as all the formalities in connection with the same were duly complied with by them.6. as ..... in the relevant accounting year the assessee-trust sold certain lands for rs. 4,42,160 resulting in capital gain of rs. 2,17,210. section 11(1a) of the income-tax act, 1961 ('the act'), provides that where a capital asset, being property held under the trust wholly for charitable or religious purposes, is transferred and the whole or any ..... fixed deposits with a bank would be regarded as utilisation of the amount of net consideration for acquiring 'another capital asset', within the meaning of section 11(1a) of the income-tax act, 1961. the board has been advised that investments of net consideration in fixed deposits with a bank for a period of six months or above .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD245(Mum.)
..... for the department relied on the reasons given in the order of the aac.5. we have considered the rival submissions and facts on record.section 2(m) of the wealth-tax act, 1957 ('the act'), so far as relevant, defines 'net wealth' as the amount by which the aggregate value of all the assets is in excess of the ..... by order dated 17-1-1980, confirmed the said order of penalty and dismissed the appeal of the assessee. the assessee filed further appeal under section 23 ee of the foreign exchange regulation act to the high court. the high court stayed the recovery of the amount on the condition of furnishing of security by the assessee. the high ..... the director, enforcement directorate, new delhi, imposed penalty of rs. 5 lakhs on the assessee under section 23(1)(a) of the foreign exchange regulation act, 1947, for contravention of the provisions of section 4(1) and section 5(1)(a) of the said act. it was mentioned in the said order that the penalty imposed should be deposited by the assessee at .....
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