Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD739(Mum.)
..... since, however, the legislature intended not to allow wear and tear allowance, it expressly prohibited the allowance vide section 29(4) of the uk finance act, 1944 and section 93(1) and (2) of the capital allowances act, 1968.9.2 let us now examine the legislative intention in india. this is what was stated in the indian ..... legislature while moving the indian income-tax (amendment) act, 1946 : the proposals follow generally (emphasis supplied by us) the provisions in the united kingdom finance act, ..... case of trader, going through the provisions actually enacted, i.e., part iv containing sections 27 to 30 and onwards, we find that the assumption perhaps did not survive. it is significant that sub-section (4) of section 20 of the uk finance act, 1944, reads as under: (4) where a deduction is allowed for any year .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)7ITD666(Mum.)
..... be allowed as a deduction in the computation of income and the assessment for that year has been completed on that basis. the finance act, 1975, has amended the income-tax act retrospectively and under this amendment, deduction in respect of provision for gratuity payable to employees on retirement or termination of their employment is ..... to be allowed if the accounts are maintained on the mercantile system. the special bench also took into account the reason for introducing this section into the act, as stated by the finance minister while introducing the amendment in the parliament. the intention was to prevent a mischief which was prevalent at that time. that mischief ..... commissioner (appeals) found that though the said provision was originally allowed as a deduction in the assessment, it was withdrawn later by an order under section 154 of the act dated 17-3-1978. that order has become final and, as a consequence, no amount stood allowed as a deduction on accrual basis regarding the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD718(Mum.)
..... . the ito held the view that the aforesaid private limited company ultimately gave a loan to the assessee indirectly through sameer finance corporation. he invoked the provisions of section 2(22)(e) of the income-tax act, 1961, and held the sum of rs. 70,000 as deemed dividend in the hands of the assessee and assessed ..... that the decision of the commissioner (appeals) was quite justified.7. we have considered the contentions of both the parties as well as the facts on record. section 2(22)(e) enacts a legal fiction inasmuch as it directs to treat certain amounts as dividends under certain circumstances, which would not otherwise be regarded as dividends ..... p.) ltd. and also a person who is substantially interested in that company. the assessee was also a member of huf which had a proprietary concern styled as sameer finance corporation. further, the assessee was the sole proprietor of another concern styled as bombay engineering industries, 2. the business carried on by fouress engg. (i) (p.) .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD633(Mum.)
..... pertains to procedural law. as early as 1953, in calcutta discount co.'s case (supra), it has been held that the limitations contained in section 34 of the 1922 act (corresponding to section 153 of the 1961 act) are all aspects of procedural law. that is what the court observed: ...assuming that the restrictions on the income-tax officer's power ..... not an extraneous matter. we are unable to accept this submission. if the rights are affected, then the provision which affects those rights is only section 246. it has nothing to do with section 144b. this section acting by itself had not taken away any of the rights of the assessee with regard to appeals. it is one thing to say that ..... then cited the decision of the supreme court in l. hirday narain v. ito [1970] 78 itr 26 and state of bombay v. supreme films, exchange ltd. air 1968 sc 1336 to show that even rectification powers cannot be used in all circumstances.8. with regard to the third limb of his submission, i.e., in respect of limitation .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD774(Mum.)
..... it only to an organised business as distinguished from profession. even though some distinction is maintained by the legislature between business and profession especially in some section of the income-tax act as relied upon by shri v.h. patil, the supreme court nevertheless held in the case of barendra prasad ray (supra) that the expression 'business ..... ii) would help the assessee out as the job of a receptionist-cum-accountant could be treated as a vocation included in the term 'profession' under section 2(36) of the act. it was held by the tribunal that the word 'concern'would include a profession, that 'profits' would cover professional receipts and that the expression 'technical ..... present a few facts involved in the present appeal. the assessee before us is one dr. j.m. mokashi, who was in government service from 1955 to 1968. he is a md of bombay university and a consulting cardiologist. he started independent practice as a physician and consultant in 1965. in 1967, his wife was .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD652(Mum.)
..... to the carrying on of its business and the expenditure was incurred on the ground of commercial expediency. the same is, therefore, allowable as revenue expenditure under section 37 of the act.4. in support of his case, the learned representative of the department has relied upon the order of the appellate tribunal in the case of fourth ito v ..... of the opinion that the assessee deserves to succeed. sales tax is a trading liability and the payment of interest in respect thereof is of the nature of a financing charge allowable as business expenditure. the reason is that the assessee would have paid much higher rate of interest by arranging funds from other sources for payment of sales ..... violation of law. in the earlier order relied on by the assessee in the case of tahira industries (i) (p.) ltd. in ita nos. 2573 and 2574 (bom.) of 1968-69 a reference has been made to the madras high court in the case of n.a. abdul rahim & mohamed ibrahim & co. v. deputy commercial tax officer [19651 16 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD244(Mum.)
..... apparently supports the stand of the learned standing counsel. it is, however, pertinent to note that the question arose in regard to the provisions of the wealth-tax act where section 7(2)(a) contemplates adjustments to book value as the circumstance of the case may require. the facts in that case were that the business of the assessee ..... recognition of any theory of greater sensitivity or respect or regard for the learned professions but from the fact as stated in the memorandum explaining the provisions of the finance bill, 1976, by which the clause was introduced, that there was a representation that the outstanding fees in the case of leading advocates and senior advocates who are ..... adopted by the assessee. the method of accounting, it was argued, is nonetheless important as has been emphasised by lord denning in mason (inspector of taxes) v. limes [1968] 70 itr 491 at page 500 and which decision has since been followed by the karnataka high court in a.t. mirji v. cwt [1980] 126 itr 93. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD213(Mum.)
..... to the assessment year 1970-71. with regard to the claim for exemption based on section 5(1)(vi), here also we think that the assessee is not totally correct as the contention fails to take note of the proviso to the clause inserted by the finance act, 1974, effective from 1-4-1975.according to this proviso, what is excludible in respect ..... way of adjustments contemplated under rule 2c of the wealth-tax rules and whether even otherwise it is an asset required to be included as an asset under section 7(1) of the act and our finding is in favour of the contentions of the assessee. in that order, after examining the cash system of accounting in some detail, we have held ..... it is argued on behalf of the assessee, even if the right to receive the annuity can be regarded as an asset, it is specifically exempted under section 5(1)(v/) of the act, according to which the right or interest of the assessee in any policy of interest before the money covered by the policies become due and payable to the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD828(Mum.)
..... in bombay photo stores (p.) ltd. (supra), relied on by the assessee, is relevant. that case related to the effect of the amendment of section 23a of the indian income-tax act, 1922, by section 11 of the finance act, 1959, which received the assent of the president on 28-4-1959. the amendment was of the percentages mentioned in the ..... p.) ltd. (supra), the amendment clearly indicated that it was to operate only from a particular date. it related to sub-clause (hi) of section 40(c). the sub-clause was substituted by the finance act, 1964. the sub-clause as substituted dealt with expenditure constituting perquisite incurred after 29-2-1964. the sub-clause prior to its substitution related to expenditure ..... of income should be treated as 50 per cent and this was being allowed.but a new development took place in the form of introduction of section 44d of the income-tax act, 1961 ("the act"), by the finance act, 1976, with effect from 1-6-1976. so far as it is relevant for the present purpose, the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)2ITD195(Mum.)
..... has relied heavily on the supreme court decision in the case of gangadhar bcmerjee & co.(p.) ltd. (supra), according to which section 23a of the 1922 act, corresponding to section 104 of the 1961 act, was in the nature of a penal provision and, therefore, the revenue had to strictly comply with the conditions laid down thereunder ..... per cent of profits. the assessee was caught between the devil and the deep sea. either it contravened the companies (temporary restrictions on dividends) act, 1974 or it contravened section 104. that apart, from the correspondence going on between the bombay municipal corporation and the assessee, right from 197) onwards, the corporation was ..... was not possible to assume that the declaration of a lesser dividend was for the reason that the board of directors or the general body required finance for the developmental activity. from the mere declaration of a lesser dividend, it could not be automatically inferred that the directors wanted to create a reserve .....
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