Court : Mumbai
Reported in : (1983)32CTR(Bom)306; [1984]145ITR793(Bom); [1983]12TAXMAN178(Bom)
..... is capital employed within the meaning of the rule, but this does not give us any guidance in interpreting the words 'capital expenditure' occurring in section 10(2)(xv) of the act. in our opinion, the bombay high court was wrong in relying on texas land and mortgage company v. holtham. but we do not say that ..... which the question was whether the expenditure incurred on account of stamp duty, registration fees, lawyer's fees in connection with the loan obtained from the industrial finance corporation, was admissible as business expenditure and the supreme court held that the amount was not in the nature of capital expenditure and was laid out or ..... deduction. it is not necessary for the purposes of s. 40(c)(iii) that the benefit or amenity or perquisite must always be convertible into money, because the section itself uses the phraseology 'whether convertible into money or not'. the words 'such expenditure' clearly refer back to 'any expenditure incurred after 29th day of february, 1964 .....
Tag this Judgment!Court : Mumbai
Reported in : (1983)33CTR(Bom)150; [1982]138ITR682(Bom); [1983]12TAXMAN350(Bom)
..... that the assessee had concealed the particulars of its income within the meaning of s. 271(1)(c) of the i.t. act, 1961. the iac took support from the explanation to s. 271(1) added by the finance act, 1964. the assessee came in appeal before the tribunal objecting to the levy of penalties. the tribunal held that on merits ..... by any person is less than 80 per cent. of the total income (hereinafter in this explanation referred to as the correct income) as assessed under section 143 or section 144 or section 147 (reduced by the expenditure incurred bona fide by him for the purpose of making or earning any income included in the total income but which has ..... assessment years 1964-65 onwards ? (2) whether, on the facts and in the circumstances of the case, the penalties imposed by the inspecting assistant commissioner under section 271(1)(c) of the act were valid ?'3. in our view, the reference can be disposed of merely on the basis of question no. (2) because if that question is decided .....
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 : Mumbai
Reported in : (1983)32CTR(Bom)101; [1983]144ITR931(Bom)
..... the value of which has been estimated at rs. 6 lakhs odd.7. the provisions of s. 44 of the e. d, act, 1953, are analogous to the provision of s. 7(1) of the finance act, 1894, in england, section 7(1) read as follows (see green's death dates, 6th edn., p. 823) :'in determining the valued of an estate ..... of the decease and his debts and incumbrances, within the meaning of the finance act, 1894, a contention similar to the one advance before us. this contention was rejected by lawrence j. with the following observations (2 edc 652 at 656) :'i think the words of the section contemplate liabilities of the estate which are met out of the estate, ..... 44 which is the only relevant provisions to determine whether the liabilities could be deducted from the properties passing under other titles. in so far as it is relevant, section 44 reads as follows :'in determining the value of an estate for the purposes of estates duty, allowance shall be made for funeral expenses (not exceeding rupees one thousand .....
Tag this Judgment!Court : Mumbai
Reported in : (1983)32CTR(Bom)293; [1984]146ITR368(Bom); [1983]12TAXMAN130(Bom)
..... (rupees one lakh six thousand and sixty-six) represented the property of the applicant and that the value thereof was the income of the applicant assessable under section 69 of the income-tax act, 1961, on the ground that the applicant had not explained the source of its acquisition ? (2) whether the finding that the sum of rs. 1 ..... ramanlal & company. we propose to refer to the said firm hereafter as 'ramanlal & company'. the assessee was supplying finance to three out of the said four firms in which it was a partner. for the purpose of obtaining finances the assessee borrowed moneys from banks in its overdraft accounts. these loans were obtained by pledge of goods. the ito ..... could not be explained by the assessee, the ito added the value thereof to the income of the assessee under the provisions of s. 69 of the i.t. act, 1961. it may be mentioned here that s. 69 provides that where in the financial year immediately preceding the assessment year the assessee has made investments which are .....
Tag this Judgment!Court : Mumbai
Reported in : (1982)30CTR(Bom)234; [1983]141ITR69(Bom); [1982]11TAXMAN48(Bom)
..... parent company they will bear the losses incurred by any one or more of them and will make or receive a subvention payment in accordance with the provisions of section 20, finance act, 1953 (or any statutory modification or re-enactment thereof).'3. this agreement was in operation for the assessment year 1966-67. during that assessment year platt bros ..... and spare parts under the control of the parent company. the assessee-company is a selling agent of platt bros. (sales) ltd.,. in india.2. section 20 of the finance act, 1953, of the united kingdom makes a provision for a subvention payment to one associated company, in respect of losses that may be incurred by it, ..... exact nature of a subvention payment made under the provisions of s. 20 of the finance act, 1953 (u.k.). the relevant provisions of s. 20 of the finance act, 1953 (u.k.), read as follows :'(1) subject to the provisions of this section, where a company has a deficit for tax purposes during any accounting period of the company .....
Tag this Judgment!Court : Mumbai
Reported in : (1982)30CTR(Bom)206; [1983]143ITR326(Bom); 1984TAXLR212
..... provided it exceeds rs. 6,000. this provision is included in para. a of the first schedule to the said finance act. section 81 of the said act, namely, the i.t. act, 1961, which has been deleted by the finance (no. 2) act of 1967, but which was in force during the relevant assessment year, inter alia, provided that no income-tax would be ..... us for our determination in this reference is as follows :'whether, on the facts and in the circumstances of the case and having regard to the provisions of section 3 of the finance act, 1963, the tribunal erred in law in holding that additional surcharge was not leviable against the assessee for the assessment year 1963-64 ?'2. the facts ..... arguments advanced before us, we may make a note of the relevant provisions. the relevant part of sub-s. (1) of s. 2 of the said finance act provides that :'(1) subject to the provisions of sub-sections (2), (3), (4) and (5) for the assessment year commencing on the april 1, 1963, - (a) income-tax shall be charged at .....
Tag this Judgment!Court : Mumbai
Reported in : (1982)30CTR(Bom)254; [1983]143ITR318(Bom); [1982]11TAXMAN79(Bom)
..... position before the tribunal that the amounts of profits and gains derived from exports by the assessee, with reference to which a deduction of tax was admissible under the said finance act, had to be calculated in accordance with the provisions of sub-r. (3) of r. 2 of the said rules, as such profits and gains could not be ..... of the income-tax (determination of export profits) rules, 1962 (referred to hereinafter as 'the said rules') :5. the relevant portion of s. 2(5) of the said finance act reads as follows :'in respect of any assessment for the assessment year commencing on the day of april 1, 1963, - (i) an assessee being an indian company or any other ..... referred to us :'whether, on the facts and in the circumstances of the case, in ascertaining the amount of 'qualifying income' for relief u/s. 2(5) of the finance act, 1963, read with rule 2(3) of the income-tax (determination of export profits) rules, 1962, the entire excise duty payable and paid by the assessee during the assessment .....
Tag this Judgment!Court : Mumbai
Reported in : (1982)30CTR(Bom)245; [1983]142ITR697(Bom)
..... ltd. : [1980]126itr377(bom) . in that case our high court was required to consider the definition of 'industrial company' as laid down in the finance act, 1966. under the finance act, 1966, an 'industrial company' was defined as follows :''industrial company' means a company which is mainly engaged in the business of generation or distribution of electricity ..... industrial company. this language is different from the language used in cl. (iii)(a) of para. d of pt. ii of the first schedule to the finance act., 1964, where there is no reference to construction of ships or any other construction activity. mr. joshi strongly relied upon this decision and submitted that the ..... cwt : [1969]74itr465(delhi) . in that case the court was required to construe the provisions of s. 45(d) of the w.t. act, 1957. under the explanation to that sub-section, for the purpose of cl. (d) : 'an industrial undertaking' was defined as 'an undertaking engaged in the manufacture, production or processing of goods .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)2ITD195(Mum.)
..... counsel 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. the ..... activity, it 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 for ..... sympathy and an objective approach. further, reliance is placed on the calcutta high court decision in the case of cooch behar trading co.(p.) ltd. v. cit [1978] 112 itr 150, which also throws considerable light on the application of this penal provision, to the facts of any case.8. we have carefully considered the .....
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