Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)54ITD680(Mad.)
..... . 1,58,202 to m/s. metalock international association ltd., u.k. and claimed as a deduction under section 37(1).the assessing officer held that the case of the assessee fell under section 35ab inserted by the finance act, 1985 with effect from 1 -4-1986 according to which any lump sum consideration paid for acquiring any know ..... taken grounds to urge that the cit (appeals) erred in his decision and he ought to have allowed the technical know-how fees paid under section 37(1) of the income-tax act, 1961.2. the relevant facts are that the assessee is a company in which public are not substantially interested. the assessee is engaged in ..... the agreement was for obtaining information regarding the latest techniques for repairing ships. the cit (appeals) approached the issue from the point of view of explanation to section 35ab(2). he also noted that the agreement provided for payment of royalty based on the business transacted by the appellant by utilising metalock process and techniques. this .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)53ITD362(Mad.)
..... on the said two items of receipt. when the matter reached the cit(a), he held that by virtue of the retrospective amendments made to section 28 of the income-tax act, 1961, by the finance act, 1990, tax was exigible on the said two items of receipt. with the result, an aggregate of rs. 13,63,895 received by the ..... drawback. according to him, the said sums should be brought to tax on "receivable basis". in this regard he was impelled by the consideration that sections 28(iiib) and 28(iiic) inserted by the finance act, 1990 with retrospective effect talked respectively of "cash assistance (by whatever name called) received or receivable" and "any duties of customs or excise repaid ..... to equate the claim made by the assessee with "cash assistance receivable" or as the case may "duty repayable as drawback" within the meaning of sections 28(iiib) and 28(iiic) of the act. the bench pointed out that, in law. an amount could be said to be "receivable" by a person only when a legal right to receive .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)54ITD257(Mad.)
..... ctit sizes is an activity amounting to processing of goods. this argument naturally draws support from the definition of an 'industrial company' contained in section 2(6)(d) of the finance act, 1968, which talks of processing of goods.apart from the obvious fact that the definition given in a totally different context cannot avail the assessee, ..... there is the further fact that neither section 32a nor section 80-1 talks of 'processing of goods'. again, the cutting and slitting operations cannot be ..... cut sizes of the specifications mentioned supra.15. the assessee's case is that it is entitled to investment allowance as also to deduction under section 80-1 of the act, because the operations involved in cutting jumbo rolls into smaller rolls/cut sizes are manufacturing activity.16. the validity of this claim needs to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)54ITD469(Mad.)
..... that, as a sequel to the search and seizure operations that were conducted on 31-7-1986, the members forming part of this group had moved petitions under section 273a of the act before the commissioner of income-tax, and that the commissioner had passed, as far back as on 31-1-1994, necessary orders thereon, reducing substantially the ..... such an order on the quantum of the waiver. of course, it is well settled that in exercising his power under sub -section (2a) of section 18 and subsection (2b) of section 18 the commissioner must act quasi-judicially and if there is an improper exercise of the power, then such an exercise would be liable to be challenged in ..... were heard together and are disposed of by a common order.2. the aforesaid assessees are members of one and the same group doing business in money-lending, vehicle financing, sale of fertilizers and hulling of paddy. this group was subjected to search and seizure operations on 31-7-1986. after the search the group came forward with .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)53ITD428(Mad.)
..... show the circumstances of the case which bring it within the scope of a particular section against which the appeal lies to the appellate authority, the appeal to the appellate authority would be competent.also to current assessment years though, by the finance act, 1994, order under s. 143(1) is specifically made appealable.tax collected from ..... assessee was required to be refunded, where his pension income was not liable to tax in india in view of double taxation avoidance agreement, as the assessment made under section 143(1) is liable to be ..... is not correct. 246(1)(c). an order against the assessee, where the assessee denies his liability to be assessed under this act or any order of assessment under sub-section 3 of section 143 or section 144, where the assessee objects to the amount of income assessed, to the amount of tax determined or to the amount of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)53ITD514(Mad.)
..... payable on each date of instalment would be progressively higher. in the previously decided madras tribunal's decision, the effect of explanation 8 to section 43(1), which was introduced in the statute by finance act, 1986 with retrospective effect from 1-4-1974 was considered by the learned tribunal. it had taken the view that the harmonious way ..... of understanding the scope of the explanation 8 to section 43(1) is that it only declares the law as it exists on only one aspect ..... distance.therefore, the driver's salary cannot be regarded as a wasteful expenditure incurred for running a car so as to be considered for disallowance under section 37(3a) of the act. since the impugned order of the first appellate authority is quite in conformity with the decision of this tribunal, we hold that his order does not .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD576(Mad.)
..... decision of the appellate tribunal in the case of varadarqja theatres (p.) ltd. 29 itd 29 was distinguishable on facts. (iii) the 1988 amendment to section 40(3) of the finance act, 1983 is not retroactive, but prospective in operation with effect from 1-4-1989. therefore, the said amendment cannot help the assessee.14. shri v. ..... thereafter, the commissioner passed an order in revision holding that the theatre building could not be categorised in any of the exempted categories mentioned in section 40(3)(vi) of the finance act, 1983. the tribunal allowed the assessee's claim. in this regard, the tribunal followed the line of reasoning that it had earlier adopted ..... of the cinema theatre. this exemption was claimed on the ground that the cinema theatre building was a plant not chargeable to tax under section 40(3)(ut) of the finance act, 1983.alternatively, it was contended that the 1988 amendment which exempts theatre building from wealth-tax should be given retrospective effect.31. the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD170(Mad.)
..... (ii). true, the said reserve is of the same genre as development rebate reserve and investment allowance reserve. true again, when investment allowance was introduced by the finance act, 1976 w.e.f. 1-4-1976, rule 1(ii) was also amended to include investment allowance reserve in the said rule. but when development allowance was ..... to the stipulated adjustments.27. once the capital base is computed, the determination of 'statutory deduction' is merely an arithmetical exercise, because, by definition [see section 2(8) of the act], it is a sum equal to 15% of the capital base.28. thereafter, surtax is levied on the excess of chargeable profits over statutory deductions.29. ..... lord diplock in reg. v. nat. ins. commi: [1972] ac 944 observed: meticulous linguistic analysis of words and phrases used in different contexts in particular sections of the act should be subordinate to this purposive approach. it should not distract your lordships from it.38. as we seek it, if the provisions of rule 2(q .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD99(Mad.)
..... question referred to it in favour of the assessee, the calcutta high court held that section 17 of the bengal finance (sales tax) act, 1941, casts a statutory liability on the assessee (lessee) in relation to the act, i.e., the lessee, for all purposes of the act, was liable even for the period the lessor had run the business and he ..... over the business of the erstwhile private trust and that consequently, the sum in question was an outlay on capital account. secondly, on a proper interpretation of section 43b of the act, a revenue deduction in respect of the taxes paid would be available in a subsequent year only if the claim for revenue deduction on accrual basis had ..... that had accrued to the lessor. therefore, the liability for sales tax for the period prior to commencement of the lease was an allowable deduction under section 37 of the income-tax act, 1961.380. that was also a case of purchase of a business as a going concern.after the purchase, the customers of the previous owner of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)49ITD611(Mad.)
..... would partake the characteristics of borrowed fund. and with the deletion of clauses (iv) and (v) of rule 1 by the finance act, 1976 w.e.f. 1-4-1977 borrowed funds do not at all enter into the computation of capital base for the ..... to the fund could, with equal justification, be displayed under the head "current liabilities and provisions a. liability for other finances". in that event also the sums in question cannot be regarded as part and parcel of the shareholders' fund for the simple ..... cannot enter into the computation of the capital base for purposes of surtax.under the scheme of the companies (profits) sur-tax act, 1964, capital base is essentially what in corporate accounting phraseology is called "shareholders' fund". now, when pursuant to the provisions ..... in the relevant income-tax assessment the assessee had been allowed the benefit of deduction under section 80-g of the act. the assessing officer took the line that the provisions of rule 4 of the second schedule to the companies ( .....
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