Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1993)46TTJ(Hyd.)480
This appeal by the assessee for asst. yr. 1984-85 against levy of penalty of Rs. 85,000, has been directed against the order of the CIT(A).2. The appellant is registered firm doing business in certain brands of vanaspati mainly from Wipro Oils Ltd., Bombay. In addition, during the year, the firm had also dealt in G. P. sheets and khandasari sugar. In the year under consideration, the appellant firm consisted of three partners, viz., Sri Omprakash having 50% share, Sri Vijaykumar having 45% share and Sri Hazarilal having 5% share. It appears from the facts of the case that Sri Omprakash is the managing partner who manages the business and finances of the appellant-firm. During the year under consideration, the appellant-firm had filed return of income on 25th June, 1984 disclosing a total income of Rs. 99,984.3. The ITO took up the case for investigation and issued a notice under S. 143(2) of the IT Act. While examining the books of account, the ITO noticed certain cash credits in the ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1993)1ITD45(Hyd.)
1. These appeals have been set down for hearing by a Special Bench as they involve a common question of law of general importance relating to the construction of Section 115J of the Income-tax Act, 1961.2. The facts relating to Messrs. Surana Steels (P.) Ltd. (I. T. A. No.1845/ (Hyd.) of 1990) are as follows. The assessee is a private limited company. For the assessment year 1988-89, corresponding to the previous year ending on October 22, 1987, the net profit according to the profit and loss account was Rs. 27,67,443. The Assessing Officer, by assessment order dated April 7, 1989, read with the rectification order dated September 20, 1989, deducted unabsorbed depreciation of Rs. 10,63,855 (made up of Rs. 10,10,304 for the assessment year 1986-87 and Rs. 53,551 for the assessment year 1987-88) and determined the book profits at Rs. 17,03,588 in order to apply the provisions of Section 115J. Thirty per cent. of this amount came to Rs. 5,11,076 which was determined as the taxable income...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1993)46TTJ(Hyd.)458
These appeals have been set down for hearing by a Special Bench as they involve a common question of law of general importance relating to the construction of S. 115J of the IT Act, 1961.2. The facts relating to M/s. Surana Steels (P) Ltd. (ITA No.1845/Hyd/90) are as follows. The assessee is a Pvt. Ltd. Co. For the asst. yr. 1988-89, corresponding to the previous year ended 22nd Oct., 1987, the net profit according to the Profit & Loss account was Rs. 27,67,443. The Assessing Officer by assessment order dt. 7th April, 1989 read with the rectification order dt. 20th Sept., 1989 deducted unabsorbed depreciation of Rs. 10,63,855 (made up of Rs. 10,10,304 for asst. yr. 1986-87 and Rs. 53,551 for asst. yr. 1987-88) and determined the book profits at Rs. 17,03,588 in order to apply the provisions of S. 115J. Thirty per cent of this amount came to Rs. 5,11,076 which was determined as the taxable income since it was higher than Rs. 4,26,714 being the income computed under the other provis...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1993)46ITD440(Hyd.)
1. This is an assessee's appeal directed against the order of Commissioner of Income-tax, Visakhapatnam dated 20-2-1990 passed under Section 263 of Income-tax Act. The assessment year involved is 1987-88.The facts leading to the present appeal may be briefly stated as follows.2. The assessee is an individual and the assessment year involved is 1987-88 for which the previous year ended by 31-3-1987. The assessee has got half share in M/s. Arti Nursing Home, Jangareddigudem. The assessee owned about 1140 sq. yard which was purchased in the year 1984 in which she constructed a double storied building. The construction of the ground floor was completed by August 1986 and that of the first floor by March, 1987. The total plinth area of the building is about 115sq. mts., or 1150 sq. ft. The construction of the building was commenced on 3-5-1985 and completed in August 1986. She got an estimate of cost of construction of the said building made by a registered valuer who inspected the site on...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)48ITD292(Hyd.)
1. This is an assessee's appeal for assessment year 1989-90 directed against the order of CIT (Appeals), Visakhapatnam, dated 7-10-1992 confirming certain disallowances made by the ITO.2. to 13. [These paras are not reproduced here as they involve minor issues.] 14. The next question at issue is the deductibility of the expenditure of Rs. 9,70,371 which was later revised to Rs. 14,83,931. The assessee claimed deduction of this expenditure. The assessee filed a written note dated 16-3-1992, inter alia explaining the deductibility of the expenditure. A copy of the said note is now furnished at pages 35 to 41 of the assessee's paper-book No. I.15. The sum of Rs. 14,83,931 was part of the amount of Rs. 51,35,725 shown at page-17 of the published accounts of the assessee-company, a copy of which is furnished in the paper-book No. I of the assessee.16. The assessee put forth the following contentions and urged that the amount of Rs. 14,83,931 is allowable as expenditure (a) Explaining the n...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD275(Hyd.)
Where the appellate order had merged with the fresh assessment order, such part of the fresh assessment order which was not part of appellate order can be revised by Commissioner of Wealth Tax. Limitation for revision will, in such a case, runs from the date of the fresh assessment order and not from the original assessment order.(i) After insertion of Explanation (c) to section 25(2), one can easily postulate that the original assessment which may be subject to revision under section 25(1) is quite different from the fresh assessment order covered by Explanation (c) to section 25(2). The former deals with the original assessment order simpliciter and the latter contemplates an assessment in which the order is partially merged. So the argument that even after the appellate order is merged with the original assessment order, it is the original assessment order which is amenable to revisional jurisdiction, but not the assessment order in which the appellate order partially merged is in ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)48ITD583(Hyd.)
1. These two appeals, the first one being an appeal by the Revenue for assessment year 1983-84 and the other by the assessee for assessment year 1984-85, are against the orders of the Commissioner of Income-tax (Appeals) and as they involve common points they are being disposed of by this common order for the sake of convenience.2. The sole dispute in these appeals is as to whether the assessee is entitled to exemption under Section 10(22) of the Income-tax Act, 4961.The assessee is an educational society registered under the A.P.(Telengana Area) Societies Act, 1989 on 4-9-1980. The society has no other activity except running of Matari Venkata Subba Rao Engineering College. It was started in September 1981 and continues its affiliation with Osmania University since inception. The College has Civil Engineering, Mechanical Engineering, Computer Science, Electronics and Communication Engineering Branches with 290 annual intake of students - 250 for 4 years Degree Course and 40 for three...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD617(Hyd.)
1. This is an appeal filed by the assessee against the order of the Commissioner of Income-tax (Appeals), Visakhapatnam dated 16-12-1991, partly allowing the appeal and reducing the amount on which additional tax under Section 143(1A) is to be computed from Rs. 48,85,920 to Rs. 45,94,830.2. The facts leading to the appeal may be stated as follows: For the assessment year 1989-90, the total income of the assessee according to its books of account is Rs. 48,16,112. The assessee-company claimed that for purpose of computation of its profits under the provisions of the Income-tax Act, the losses to be carried forward according to its own estimate stood at Rs. 50,72,382 and they have to be deducted from out of book profits and if this loss was to be deducted the company will have no taxable income. This is one of the years in which the provisions of Section 115J were in force. In accordance with the provisions of the said section if there are book profits but not assessable profits, the as...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)51ITD417(Hyd.)
1. This is an assessee's appeal for assessment year 1989-90 directed against the order of the Commissioner of Income-tax (Appeals), Visakhapatnam dated 10th August, 1992 holding the assessee to be an association of persons liable to tax at maximum marginal rate under Section 167B of the Income-tax Act, 1961. (1) The learned Commissioner (Appeals) erred in upholding the status of the assessee as an association of persons in the facts and circumstances of the case. (2) Without prejudice to the above ground, the Assessing Officer was not justified in rejecting the status claimed without rejecting the application for registration under Section 185 and without giving the appellant an opportunity to agitate the matter of registration in accordance with law. (3) The learned Commissioner of Income-tax (Appeals) erred in holding that income derived on development of real estate by providing amenities in pursuance of the object of partnership does not constitute business and further he erred in...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD552(Hyd.)
1. The question for determination in all these appeals is as to the fee to be paid for filing the appeal before the Tribunal under Section 253(6) of the Income-tax Act, 1961.2. The issue in these appeals can be classified into four categories as follows : I. Where the income originally assessed is more than Rs. 1 lakh but after first appellate order it is reduced below Rs. 1 lakh. II. Where the income before set off of unabsorbed depreciation and business losses is more than Rs. 1 lakh but is reduced to nli. upon such set off. III. Where the total income computed is a loss but that loss is more than Rs. 1 lakh. IV. Where the total income is below Rs. 1 lakh but if agricultural income is taken into consideration it exceeds Rs. 1 lakh.3. IT Appeal Nos. 576 and 577/Hyd/1993 fall under Category-1. The income determined as per assessment order is Rs. 1,07,950 for asst.year 1979-80 which is reduced to Rs. 57,950 consequent to the order of the Commissioner (Appeals). It is Rs. 1,71,740 for a...
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