Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)7ITD739(Hyd.)
1. This is an appeal filed by Dredging Corporation of India Ltd., Visakhapatnam, against the order of the Commissioner (Appeals) for the assessment year 1977-78.2. The assessee is a Government owned company incorporated on 29-3-1976. It took over from the Government of India dredgers and operated them through Shipping Corporation of India and suffered a loss. Eleven crafts were, thus, taken over at the value of Rs. 22,14,11,000 from the Government of India while the assessee acquired 6 crafts at a cost of Rs. 13,23,87,579. Investment allowance on all crafts and relief under Section 80J of the Income-tax Act, 1961 ('the Act') even on newly acquired crafts, though specifically admissible to ships, were disallowed by the ITO on the ground that a dredger was not a ship. He alternatively took the view that these crafts were previously owned by the Government of India and that also, according to him, disentitled the assessee to the allowances. He rejected an alternative claim for higher dep...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)7ITD905(Hyd.)
1. This appeal is by the assessee and relates to the assessment year 1977-78.2. One set of the grounds of appeal contest the computation of relief available to the assessee under Section 80J of the Income-tax Act, 1961 ('the Act'). The ITO had made the computation holding that the amendment made by the Finance (No. 2) Act, 1980, being retrospective, was applicable to the assessment year in question. The contention of the assessee that the validity of the retrospective amendment was under challenge and, therefore, the computation should not be upheld, did not find acceptance of the Commissioner (Appeals) who rejected the claim.The assessee is in appeal before us on this point and it was brought to our notice by the learned counsel that for the succeeding assessment years, i.e., 1978-79, 1979-80 and 1980-81, a similar issue had arisen and he has taken us through our order in IT Appeal Nos. 221, 222 and 226 (Hyd.) of 1982, dated 18-7-1983. There we have considered the contentions of the ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)8ITD48(Hyd.)
1. These three appeals have been filed by Mulkanoor Co-operative Rural Bank Ltd. of Mulkanoor against orders of the AAC for the assessment years 1977-78 and 1979-80 and the Commissioner (Appeals) for the assessment year 1978-79.2. The assessee is a co-operative society engaged in rural banking business. It also runs a rice mill and undertakes various other services for its members. The disputed assessments are for the assessment years 1977-78, 1978-79 and 1979-80 of which the first one is a reassessment while the later two assessments are original ones. The ITO noticed that the assessee besides providing credit for its members who were agriculturists was also distributing sugar, kerosene and cloth to its members and was marketing the produce of its members including eggs. It was the assessee's case that supply of consumer goods was by way of service to its members and that no profit was intended or earned in these activities. As for marketing of eggs, it was claimed that the assessee ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)8ITD249(Hyd.)
1. These appeals are by the revenue and they arise out of a common order of the Commissioner (Appeals). The assessee is common and, hence, they can be taken up together and disposed of conveniently by a common order. The assessee is a private limited company doing business in tobacco. The accounting year is Diwali year and so it ended by 31-10-1975, 31-10-1976, 31-10-1977, 31-10-1978 and 31-10-1979, respectively, for the assessment years 1976-77 to 1980-81.2. The first ground is against the allowance of business promotion expenses for the assessment years 1976-77 to 1980-81 and the amounts involved are Rs. 3,280, Rs. 534, Rs. 3,127, Rs. 10,480 and Rs. 7,858, respectively. These amounts were disallowed by the ITO on the ground that they include sums spent towards club subscriptions and entertainment expenditure in respect of guests. In the assessment year 1977-78, it is stated that the disallowance was of the expenditure incurred towards tea, coffee and biscuits supplied to the guests ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)8ITD511(Hyd.)
1. This is an appeal filed by Vazir Sultan Tobacco Co. Ltd. of Hyderabad against the order of the Commissioner (Appeals) for the assessment year 1979-80.3. The next ground relates to the claim of the assessee under Section 35CC of the Income-tax Act, 1961 on a programme approved by the prescribed authority. The total amount expended was Rs. 4,56,898. Tee ITO disallowed Rs. 99,225 out of the same on the ground that this part of the expenditure was incurred before 21-2-1978, the date with effect from which the approval was granted by the prescribed authority. It is the assessee's case that once the programme is approved, there is no point in disallowing any part of the same as the expenditure for the programme as a whole has to be considered. The authorities, however, have pointed out that the proviso to Sub-section (1) of Section 35CC lays down that the approval should have been obtained before incurring expenditure. The first appellate authority confirmed the disallowance for the same...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)9ITD422(Hyd.)
1. These are the appeals filed by the assessee and they relate to the assessment years 1977-78 and 1978-79 for which the previous years ended by 30-6-1976 and 30-6-1977, respectively.2. The assessee is a company in which public are substantially interested. Some of the grounds are common in both these appeals and, hence they can be taken up together and disposed of by a common order.3. Ground No. 1: The interest charged to the profit and loss account is Rs. 33,53,454 for the assessment year 1977-78. It includes interest paid on deposits of Rs. 20,32,696. The ITO applied the provisions of Section 40A(8) of the Income-tax Act, 1961 ('the Act') and disallowed interest thereon at 15 per cent. Such disallowed interest worked out to Rs. 3,04,904. For the assessment year 1978-79, the interest charged to profit and loss account was Rs. 35,22,595 which includes interest paid on deposits of Rs. 20,11,095. The disallowed interest at 15 per cent thereon under Section 40A(8) was Rs. 3,01,665. The ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)8ITD473(Hyd.)
1. All these appeals are by the revenue. IT Appeal No. 702 (Hyd.) of 1983 arises out of proceedings under Section 154 of the Income-tax Act, 1961 ('the Act') and relates to the assessment year 1977-78. IT Appeal No. 703 (Hyd.) of 1983 arises out of the assessment proceedings for the assessment year 1977-78. IT Appeal No. 704 (Hyd.) of 1983 relates to the assessment year 1978-79. IT Appeal No. 70S (Hyd.) of 1983 relates to the assessment year 1979-80. The last two arise out of regular proceedings. We first take up for consideration a common issue which is involved in the appeal arising out of proceedings under Section 154 for the assessment year 1977-78 as well as in the appeals for the assessment years 1978-79 and 1979-80.2. In the assessment year 1977-78, subsequent to the completion of the original assessment on 28-1-1980, an amendment was made by the Finance (No. 2) Act, 1980, by introduction, with retrospective effect from 1-4-1968. of a new provision, Section 80AA of the Act, whi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)9ITD534(Hyd.)
1. This is an appeal filed by Shri Anumula Venkateswarlu of Kurnool against the order of the AAC for the assessment year 1979-80.2. The assessee is a HUF having income from property, business and share income from a partnership firm. He paid life insurance premia to the extent of Rs. 32,569 on which relief under Section 80C of the Income-tax Act, 1961 ('the Act') was claimed. The assessee's total income was computed at Rs. 42,116. Since there is a ceiling of 30 per cent of gross total income for allowance of relief under Section 80C, Sub-section (4) thereto, the ITO restricted the relief to Rs. 8,553 which is the eligible amount at 100 per cent for first Rs. 5,000, 50 per cent for next Rs. 5,000 and 40 per cent of balance out of qualifying amount Rs. 12,635 forming 30 per cent of the income determined at Rs. 42,116. The assessee in first appeal contended that Rs. 12,635 (claimed at Rs. 12,564 at 30 per cent of returned figure) was to be reckoned as the ceiling on the final eligible am...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)10ITD56(Hyd.)
1. This appeal by the assessee relates to the assessment year 1979-80.The accounting year ended on 31-3-1979. The assessee sold certain properties in the accounting period and capital gains arose therefrom.According to the assessee, since certain investment of the type contemplated under section 54E (1) of the Income-tax Act, 1961 (the Act) had been made, the assessee was entitled to exemption of capital gains. The ITO, however, did not agree. We set out below in extenso extract from the assessment order giving reasons which weighed with the ITO for denying relief as also the computation of assessable capital gains as made by him : "Capital gains : The assessee sold her house for Rs. 73,500 on 22-7-1978. Against this, the assessee claimed the acquisition value, i.e., the value as on 1-1-1964 at Rs. 60,000. Considering the rates prevailed as on 1-1-1964 in the area, the value is on the high-side. On agreed basis, the value of the property as on 1-1-1964 is fixed at Rs. 45,000.At the ti...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)10ITD902(Hyd.)
1. These three departmental appeals arise out of a common order of the AAC in respect of the assessments for the assessment years 1980-81, 1981-82 and 1982-83.2. There was a partial partition in the assessee's family on 24-3-1979.This was recognised by the ITO by a formal orderunder Section 171 of the Income-tax Act, 1961 ('the Act') on 30-11-1979. This was sought to be nullified by a purported rectification order passed on 14-2-1983.The ITO understood the amendment to Section 171 introduced by the Finance (No. 2) Act, 1980, as authorising derecognition of all partial partitions effected after 31-12-1978 irrespective of the assessment year involved. This Tribunal in its common order in IT Appeal Nos. 881 and 882 (Hyd.) of 1983, has concluded that the original order passed on 30-11-1979 was correct and justified both on facts and law and that subsequent purported rectification was wrong, as the amendment did not apply for the assessment year 1979-80. The order passed on 30-11-1979, the...
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