Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jan-01-1991
Reported in : (1992)40ITD185(Mum.)
..... the scheme was approved ex pane vis-a-vis the department. the clue to the problem in fact could unmistakably be found in the provisions of section 43c. these provisions inserted by the finance act w.e.f. 1 -4-1988 clearly lays down that where an asset which becomes the property of an amalgamated company under a scheme of amalgamation ..... decided the issue in favour of the amalgamated company for the years 1981-82 and 1985-86 mainly relying on the new provisions inserted by the finance act, 1988, in the form of section 43c w.e.f. 1-4-1988.such provisions are totally not available to the assessee. an objection has been raised that if the amalgamating company ..... amalgamating companies.that the consideration received by third party is a good consideration has now been established by the decision of the bombay high court in keshub mahindra v. cgt [ 1968] 70 itr 1. inviting our attention to this decision in cit v. british paints india ltd. [1991] 188 itr 44 (sc), it is submitted that it would .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jan-29-1991
Reported in : (1991)38ITD70(Mum.)
..... the first instance no specific decisions were cited. secondly, and more importantly section 54 of the act significantly docs not refer to a person and refers only to an assessee. so, the revenue cannot get any advantage out of this submission.17. regarding the speech of the hon'ble finance minister also it could be said that once there was some doubt about ..... and not sub-section (31) of section 2 of the act and had, therefore, no direct bearing on the issue; that for the purpose of section 54 relating to the computation of capital gains a hindu undivided family has also be held to beincludible by the bombay benches of the tribunal; the speech of the finance minister had no direct relevance; that the issue before .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jan-31-1991
Reported in : (1991)37ITD235(Mum.)
..... no hesitation incoming to the conclusion that the assessee was merely a distributor and hence a service company within the meaning of the i.t. law including the finance act, 1985 and was not a trading company. the above features of the relationship between the distributor and the consignor company, i.e., ipcl clearly show that the ..... 381. on this point, the learned counsel for the assessee placed further reliance upon the page 6 of the guidance note of tax audit under section 44ab of the i.t. act issued by the institute of chartered accountants of india, which reads as under : questions may also arise as to whether the sales by a commission ..... sales tax collected by appellant on behalf of other parties, constitutes their trading receipt. 2. the commissioner of income-tax (appeals) erred in not specifically holding that section 43b comes into play only when tax has accrued and become due for payment. 3. the commissioner of income-tax (appeals) erred in not specifically holding that question .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Feb-07-1991
Reported in : (1991)37ITD447(Mum.)
..... loss to establish that he has incurred such amount of loss.in mcmillan & co.'s case (supra) the hon'ble supreme court was again dealing with section 13 of the 1922 act and their lordships held that whether the income, profit and gains, can properly be deduced from the assessee's method of accounting is undoubtedly a matter which ..... falls for the determination of the income tax authorities alone.in sarangpur cotton mfg. co. ltd.'s case (supra) the hon'ble privy council, dealing with section 13 of the act - method of accounting-' held that for assessment purposes a method of accounting has to be compulsory and the income has to be computed on those bases and ..... is said to have ended on 31st december 1985. the assessment order reveals the method of accounting as 'hybrid'. the assessment has been framed under section 143(3) of the income-tax act, 1961.qua the assessee's grievances raised in the form of grounds of appeal before the income tax appellate tribunal, the narration in the assessment .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : May-29-1991
Reported in : (1991)39ITD276(Mum.)
..... . the material that was collected by the iac could not form part of the records. this would be evident from the amendment brought about by the finance act, 1988, to the provisions of section 263. the word "record" has been redefined and as per the new definition the same shall include and shall be deemed always to have included, ..... the departmental representative that the liability in regard to news print taken on loan from group company, can be compared with the set on liability under section 15(1) of the bonus act. such liability has been held to be contingent by the courts and in this connection our attention has been invited to the decisions reported in p ..... that the only conditions required to be satisfied in order to enable the assessee to claim a deduction in respect of interest on borrowed capital under section 10(2)(iii) of the i.t. act, 1922, were that firstly, money must have been borrowed by the assessee; secondly, it must have been borrowed for the purpose of business, and .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jun-13-1991
Reported in : (1991)38ITD596(Mum.)
..... dividends' and this phraseology has a wider connotation. he further submitted that even under the income-tax act, relief under section 80m is restricted, with effect from 1-4-1981 consequent upon the amendment of the act, by the finance act of 1980 and therefore, according to him, all the three years involved in these three appeals were ..... be excluded. in arriving at this conclusion the tribunal followed the interpretation which has been put on identical words occurring in certain sections of the income-tax act, 1961, such as section 80m of that act, by the bombay high court in commissioner of income-tax v. industrial investment trust co. ltd. a similar view has been ..... decision, the question was of proportionate management expenses, while in the case before us, the question is of relief or deduction allowed under the income-tax act under section 80m in computation of total income. for all these reasons, we would reject on this point, assessee's grounds of appeal for all the three years .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jun-21-1991
Reported in : (1991)39ITD197(Mum.)
..... -clause (4) of that section. in this connection he also invited our attention to the decision of the hon'ble calcutta high court in the case of g.a. renderian ltd. v. cit[1984] 145 itr 387 and pointed out that while interpreting the provisions of clause 2(7)(c) of the finance act, 1978, the hon'ble ..... it, was engaged in "processing of goods".therefore, being an industrial company, it was entitled to be taxed at the concessional rate of tax contemplated under section 2(6)(c) of the finance no. (2) art of 1971. relying on yet another decision of the hon'ble bombay high court in the case of hoechst dyes & chemicals ltd ..... tribunal. the learned counsel for the assessee, reiterated the submissions which were made before the it authorities and strongly urged that the order passed by the iac under section 104 of the act should be cancelled. inviting our attention to pages 1 & 2 of his paperbook, containing statement showing bifurcation of trading, profit & loss account between manufacturing & .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Jul-17-1991
Reported in : (1991)39ITD394(Mum.)
..... started. he had received advances from prospective buyers and had also engaged services of sole selling agents. in these circumstances, the ito invoked the provisions of section 145(2) of the i.t. act, 1961, and estimated the profit at 15 per cent on the work-in-progress less the value of land, i.e., on the cost of construction ..... . thus, substantial amounts were repaid to the prospective buyers from whom only loans were taken which, as argued by the id. counsel, was only a mode of getting finance. if the amounts received from the prospective buyers are, to be treated as sale proceeds, one cannot conceive of a situation where sale proceeds will so substantially go down, ..... the prospective buyers. an amount of rs. 2,90,15,882, which has been received from the various parties, was in the form of unsecured loan for raising finances and the details of such unsecured loan are given in schedule-b attached to the balance sheet (pages 45 to 47 of the compilation).10. as regards the argument .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Aug-21-1991
Reported in : (1992)40ITD92(Mum.)
..... of granting development rebate under section 33 of the act.by implication there is no such bar against allowance of claim for investment allowance. in the light of these decided cases the inescapable conclusion, according ..... the cost of assets arising out of devaluation of rupee should not be taken into consideration for the purpose of grant of development rebate under section 33 of the old it act, the general principle that additional liability arising out of devaluation of indian rupee would be a capital expenditure could not be applied for the purpose ..... fluctuations would be in the nature of capital losses. it has to be remembered that the assessee had to incur these losses only because part of the finance necessary for the acquisition of the ships came out of borrowings from foreign source and in foreign currency.such losses would go to increase the cost of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Decided on : Sep-30-1991
Reported in : (1992)40ITD231(Mum.)
..... computers indian mfr. ltd. [1991] 187 itr 580. there the bombay high court was explaining the scope of explanation (c) to section 263 of the income-tax act as amended by the finance act 1989 with retrospective effect from 1-6-1988. the court in that case had to interpret the words "and shall extend and shall be ..... reads as under: aerated waters in the manufacture of which blended flavouring concentrates in any form are used.the explanation to the item was inserted by the finance act with effect from 1-4-1988 and such explanation would not be applicable and, therefore, to be ignored while dealing with this issue. the explanation defines the ..... deemed always to have been extended (emphasis supplied)". the language is similar to the language used in explanation to item no. 5 of 11th schedule. the court in that context held that explanation to sub-section .....
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