Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1998)65ITD169(Kol.)
..... practice was followed even in respect of period after the commencement of the production so much so that the legislature were called upon to introduce expln. 8 by the finance act, 1986, with retrospective effect from 1st april, 1974.25. on consideration of the matter, it appears to us that there is no basis to hold that ..... mentioned that in the notice under s. 263, the learned cit did not rely upon expln. 8 to s. 43(1) which had been inserted by the finance act, 1986, with retrospective effect from 1st april, 1974. the same was not referred to by the parties during the course of their submissions before the hon'ble ..... be capitalised. "interest incurred" means actual interest paid or payable in respect of borrowings which are used to finance capital expenditure .... interest on capital during construction paid in accordance with the provisions of s. 208 of the companies act, 1956, may, however, be capitalised as permitted by that section. interest on monies which are specifically borrowed .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1998)65ITD214(Kol.)
..... the income was first assessable, where such assessment year is an assessment year commencing on or after the 1st day of april, 1969; or [substituted by finance act, 1968 (with e.f. 1-4-1968)] (b) the expiry of eight years from the end of the assessment year in which the income was first assessable, in a case falling within clause ..... years from the end of such assessment year; (ii) where the return relates to a previous year relevant to the assessment year commencing on the 1st day of april, 1968, three years from the end of the assessment year; (iii) where the return relates to a previous year relevant to any other assessment year, two years from the ..... -3-1989 and, therefore, the extension of one year period expired on 27-3-1990. according to him, the assessment was finalised within the time prescribed under the act. the learned dr extended his arguments further and submitted that although according to the decision of the supreme court (supra), once the return is filed under section 139(4 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)61ITD196(Kol.)
..... 2(24)(iia) was inserted with effect from 1-4-1973 simultaneously with the present section 12, both of which were introduced from the said date by the finance act, 1972. section 12 makes it clear by the words appearing in parenthesis that contributions made with a specific direction that they shall form part of the corpus of ..... maharaj estate and shree shankar bhagwan estate respectively.the assessments were made taking the status of the assessee as private religious trusts, under section 164 of the income-tax act.5. the assessees appealed and contended that they should be assessed in the status of individual, that the provisions of section 2(24)(iia) did not authorise ..... in support of the above gifts had also been filed. he was prima facie of the view that these receipts were taxable under section 2(24)(iia) of the act. the assessees claimed that the amounts were received towards the corpus of the endowments and, therefore, could not be taxed. the assessing officer accepted the fact that .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
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
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
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
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
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
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
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 .....
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