Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Feb-01-1996
Reported in : (1996)58ITD273(Kol.)
..... intended to be brought to tax and therefore exceptions were provided thereunder. by the same spirit and intendment, the legislature has inserted proviso to section 40 (3) of the finance act, 1983 with effect from 1-4-1989 whereby motor cars used in a business of running motor cars on hire were excluded from wealth-tax. we are therefore of ..... business of leasing and in the course of its regular business activities the motor cars are leased on hire and hence the proviso to section 40 (3) of the finance act, 1983 is applicable.he therefore submitted that the motor cars which were owned by the assessee and used as stock-in-trade in the business of leasing carried on ..... is fully justified.3. further aggrieved, the assessee is in appeal before us. the ld.counsel for the assessee contended before us that by the finance act, 1988 proviso to section 40 (3) of the finance act, 1983 was inserted by which the motor cars held by a company as stock-in-trade in its business or registered as tax is and used .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Apr-08-1996
Reported in : (1996)59ITD303(Kol.)
..... goods it could not be 'industrial company'. for that purpose, he has placed reliance upon the explanation to the clause (c) of section 2(7) of the finance act, 1981 which is reproduced above. 4. we find no merit in such contention of learned departmental representatives. such provision has already been interpreted by the kerala high court ..... manufacturing activities would be less than 51 per cent of its total income. but it is contended that the interpretation placed on the provisions of the relevant finance act by the tribunal for the assessment year 1981-82 is in respectful conformity with the interpretation placed on the provisions by the kerala high court and andhra pradesh ..... was less than 51 per cent of the assessee's total income and, therefore, the assessee could not be treated as an industrial company under the relevant finance act. in response to the notice, the assessee's representative appeared before the cit on 16-12-1991 and pointed out that by order under section 154 dated .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Mar-25-1996
Reported in : (1996)59ITD150(Kol.)
..... of beneficial ownership can hardly be applied in the matter in hand. the assessee being a closely-held company shall be governed by section 40 of the finance act, 1983 wherein there being no provisions providing for embracement within the fold of 'net wealth' the principle of beneficial ownership or for that matter the property ..... the ld. cwt (a).8. we have consciously considered the rival contentions. the assessee undisputedly is a closely-held company in respect whereof section 40 of the finance act, 1983 is applicable wherein the terms 'assets' as also 'net wealth' have specifically been defined/explained for the contextual purpose and as such the said section ..... applicable in the matter in hand. in our humble opinion, the provisions contained in explanation 1 to section 2(m) of the wt act which have been introduced by the amendment by the finance act, 1987, no doubt embrace the principle of beneficial ownership by way of deemed ownership as contained in section 27(iiia), (iiib), section .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Aug-28-1996
Reported in : (1997)60ITD348(Kol.)
..... ltd. was also got vacated for the purpose of being disposed of by sale. he has contended that the object of bringing the company to wealth-tax under the finance act, 1983, was to defeat the avoidance of personal wealth-tax by forming closely-held companies to which the tax avoider assessees transferred their unproductive assets but in this case ..... been shown by the assessee as building in progress, bifurcated details of which have also been submitted by the assessee. under cl. (vi) of s. 40(3) of the finance act, 1983, it is "building" which is a taxable asset. the incomplete portions of the building, which have been alleged by the assessee to be the unfinished stock, cannot ..... building in progress.accordingly, we hold that the portion shown by the assessee as building in progress is not a taxable asset within s. 40(3)(vi) of the finance act, 1983, and so the impugned order of the learned cit(a) (sic) in upholding the assessment order of the wto in bringing the said building in progress to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Dec-13-1996
Reported in : (1997)61ITD119Cal
..... its subsidiary. the write off was made in december 1982 and at that time there was no wealth-tax on companies. it was introduced only by the finance act, 1983 and that too with effect from the assessment year 1984-85 only. surely it cannot be the suggestion that the assessee company anticipated that levy of ..... better organisation and control of the property, d.c. properties private limited has been incorporated. furthermore, the incorporation of this new company will also facilitate in obtaining finance from bank or other financial institutions as working capital. although d.c. properties private limited has a separate entity but 100 per cent ownership rests with dcpl. ..... to deceive. in wharton's law lexicon, the meaning of 'bona fide' is given as good faith, implying the absence of all fraud, unfair dealing or acting, whether it consists in simulation or dissimulation.a bona fide transaction requires that there was no secret arrangements or reservations and that what is apparent is also real .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Sep-09-1996
Reported in : (1997)60ITD640(Kol.)
..... the view that the assessee was the owner of the building constructed on the roof of the premises and was, accordingly, assessable to wealth-tax under section 40 of the finance act, 1983. he was of the view that the building did not constitute the assessee's stock-in-trade because the assessee-company was not dealing in real estate or as ..... 1. the assessee in these appeals is a closely-held company liable to wealth-tax under section 40 of the finance act, 1983. on 17th july, 1984 it entered into a document styled as 'memorandum of agreement for lease' with one kanhaiyalal mehrotra in respect of the roof portion of the premises ..... are let out by the assessee to outsiders.2. the memorandum containing the aforesaid conditions was executed in rs. 5 stamp paper. the same was not registered under the registration act and this fact constitutes common ground.3. the assessee-company commenced construction on the roof in the financial year 1985-86 and it borrowed monies from its shareholders as well .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Feb-28-1996
Reported in : (1996)59ITD220(Kol.)
..... s. 72, or sub-s. (2) of s. 73, or sub-s. (1) or sub-s. (3) of s. 74 inserted by the finance act, 1972, w.e.f. 1st april, 1975, or sub-s. (3) of s. 74a he may furnish, within the time allowed under sub-s. ..... the provisions of law are ambiguous or are capable of more than one interpretations. in our opinion, all the provisions of the act applicable to the instant case are plain and simple on one hand and explicit and straight on the other and, therefore, they ..... cannot be automatically carried forward and absorbed in the case of the partners, firstly because there is no such scheme or provisions in the act and secondly, carry forward of business loss was wrongly allowed by the ito in the case of the firm.our answer to question no ..... taxing provisions on this subject are ambiguous or/and are capable of more than one interpretations.7. under the general scheme of the it act if the profits and losses under different heads are to be aggregated and if the resultant figure is an income it is liable to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Mar-26-1996
Reported in : (1996)59ITD145(Kol.)
..... by chaturvedi & pithisaria, 4th edition, page 145 at page 147), the reason for introduction of section 4(7) as well as section 5(1)(xxx) by the finance (no. 2) act, 1971 were explained which supports out view. we, therefore, set aside the order of the cit (appeals) and hold that the computation adopted by the assessing officer ..... . the learned departmental representative further contended that by the order of the cit (appeals), the assessee has got a double deduction under section 5(1a) of the act inasmuch as the exemption under section 5(1a) can be allowed only up to a maximum of rs. 5 lakhs which has already been considered by the assessing ..... and legally not sustainable inasmuch as the first appellate authority has overlooked the fact that the assessing officer has already granted exemption under section 5(1)(xxx) of the act and thus the deposit to pioneer co-operative housing society ltd. was not taken into consideration while computing the net wealth under the head 'movable' property. he .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Aug-27-1996
Reported in : (1997)60ITD367(Kol.)
..... to make a realistic and appropriate presentation of the financial statements. it has been the experience of your directors that in case of term loan for industrial finance or housing finance, which is the main business of your company, realisation of the interest on loans are being consistently slowed down accumulating the accrued interest from year to ..... years, the emphasis of the business shifted to housing finance. from what was only 24.16% of the total loans in the year 1980, housing loans jumped to 68.90% in the year 1985. ..... of the company to change the main object to include financial consultancy, computerised data processing, housing finance, hire - purchase and equipment leasing, export and import finance, etc. in pursuance of the new object the company utilised its funds more towards housing finance besides also utilising them in the field of equipment leasing and consultancy. over a period of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Decided on : Nov-27-1996
Reported in : (1997)61ITD275Cal
..... and had no advertisement value. the ito also observed that the statue was installed at the request of "forum one" which was an association registered under the wet bengal societies act. according to him, the expenditure had no relevance to the profit earning process. he, therefore, disallowed the same.4. on appeal, the disallowance was confirmed on the ground that the ..... itr 140 as having wide scope, taking in not only the day-to-day running of the business but also rationalisation of the administration and modernisation; it comprehends many other acts incidental to the carrying on of the business. the expenditure in the present case satisfies this test also as it cannot be disputed that advertisement is done only for the .....
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