Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)4ITD297(Mad.)
..... directly in connection with the purchase of the land and forms part of the cost of acquisition.with regard to the urban land tax it is to be noted that under section 10 of the tamil nadu urban land tax act, such tax is a first charge on the urban land and hence, that tax was also rightly capitalised in accordance with the accountancy principles since the asset is a capital asset in the hands of the assessee-company. ..... in the budget speech for 1973-74 the finance minister stated (88 1tr statutes): capital gains tax can become a means of avoiding or reducing the burden of payment of income ..... presenting the budget for the assessment year 1962-63, the finance minister observed (46 itr statutes): capital gains are already taxable under our income-tax act. ..... it was contended on behalf of the revenue by referring to section 55(1)(b) of the act, that the cost of improvement in relation to capital asset meant only expenditure of a capital nature and therefore, the expenditure incurred for payment of taxes could not be taken into account since they are of a revenue ..... it is only by the provisions of section 12b of the 1922 act that capital gains was deemed to be income of the previous year in which the transfer took ..... 1,35,840.later acting under section 263 of the income-tax act, 1961 ('the act'), the commissioner by order dated 16-10-1980 was of the opinion that the assessment order was erroneous and prejudicial to the revenue and accordingly set aside the assessment and restored the matter to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)5ITD20(Mad.)
..... the absence of such a clear wording in the section, on the lines of the formula given in the decision of the supreme court in the case of cambay electric supply (supra) and in view of the statement of the finance minister that the deduction is intended to be a proportion of the income qualifying for the rebate and in view of the general policy of the chapter via to give incentive for specified industries, we are of the opinion that even ..... when section 80e was originally introduced by the finance act, 1966, in chapter via, the finance minister said : ...as a measure of simplification, however, i propose to modify the form of ..... the section was amended by the finance act, 1975 with effect from 1-4-1975 to extend the benefit for a period of 9 ..... the finance act has accordingly inserted another section 80ab to provide that, for the purpose of calculating the deductions specified in sections 80hh to 80tt the net income as computed in accordance with the provisions of the income-tax act (before making any deduction under chapter via) shall alone be regarded as the income which is received by the assessee and which included in his gross ..... propose to make certain amendments in the income-tax act to counteract certain court decisions which have resulted in unintended benefit to taxpayers", there are no notes on clauses with reference to section 80ab obviously because it did not form part of the finance bill as introduced. ..... 2) act, 1967 and the finance minister stated : some time back government .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD808(Mad.)
..... main purpose of purchase of all forms of movable and immovable property including machinery and equipment and to lease or otherwise deal with them in any manner whatsoever including resale thereof, to carry out financing operations and perform financing services including factoring, making of loans both short and long-term along with provision of financial software such as computer programmes, to grant permission to other entities to carry on leasing under the direction ..... of the forms of 'transfer' and since a transfer of an asset in respect of which investment allowance has been allowed, disentitles the assessee to the claim of investment allowance by providing for its withdrawal, the very act of leasing would disentitle the assessee to the claim.here again, we are not able to walk along with shri rangaswamy, because when leasing itself is the business carried on by the assessee and in this business ..... it deals with the question whether investment allowance contemplated in section 32a of the income-tax act, 1961 ('the act'), is allowable to an assessee who does not himself engage in production or manufacture of goods or things referred to in sub-section (2) of section 32a, but purchases machinery and lends it to those who utilise it for the purpose of manufacture ..... the assessee is based on the view that the act does not require the assessee to engage in an ..... also been used in section 10(2)(iii) of the indian income-tax act, 1922, for the purpose of granting of depreciation allowance. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD216(Mad.)
..... the learned counsel argued that the validity of the retrospective amendment authorising the exclusion of borrowed capital for capital base in the finance (no.2) act, 1980 is pending adjudication before the supreme court and the other high courts. ..... ) 157] however, there were representations against these provisions and the finance minister accepted some amendments to the above bill and section 80j(1) at the final stage took a different form, even as mentioned by the finance minister in his speech dated 24-7-1967 [65 itr (st. ..... though at the stage of the finance bill, 1967, the original intention was to make it alternative, these reliefs were, in fact, clearly made cumulative.in these circumstances, we have no doubt that the assessee is eligible for relief both under section 80hha and ..... ) 13].section 80j(1) at the final stage in the finance (no. ..... and section 80-i could be cumulative to the extent of available profits, the relief under sections 80h and 80-i was made alternative to relief under section 80j at the bill stage as may be evident from section 80j(1) in the finance (no. ..... the present chapter via was introduced by the finance (no. ..... the assessee is eligible for relief under section 80hha and section 80j of the income-tax act, 1961 ('the act'). ..... 2) act, 1967 reads as under: 80j. ..... 2) act, 1967, when there was similar relief given under section 80h in respect of new industrial undertaking employing displaced persons. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD148(Mad.)
..... we may recall that the concept of standard deduction was itself introduced by the finance act, 1974 and the finance minister's budget speech of 1974-75 stated : "in order to simplify the assessment procedure in the case of salaried taxpayers, i propose to substitute the separate deductions in respect of travelling, books, taxes on professions and expenditure incurred in the performance of duties by a ..... the impression that is left is that this is an attempt to complicate the matter which the finance minister wished to simplify and it is not clear whether any responsible decision was taken to appeal against the order which gives effect to the policy of the government. ..... this appeal is directed against the order of the aac allowing deduction under section 16(i) of the income-tax act, 1961 ('the act') in respect of the total amount assessed under the head 'salaries'.2. ..... 5,468 being gratuity received by the assessee in excess of the amount exempt under section 10 of the act and rs. ..... amount chargeable under the head 'salaries' including the profits in lieu of or in addition to salary which admittedly covers the amounts in question by definition, except only such salary income as are exempt under the provisions of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD714(Mad.)
..... to meet the cost of the depreciable assets and not a subsidy given in a lump sum for the whole of an industry.the jaipur bench of the tribunal in laxmi's case (supra), after referring to the preamble to the scheme, observed that the subsidy was granted to encourage the citizens to set up more and more industries in the selected backward areas and it has nothing to do with a meeting out of the cost ..... is that an assessee should obtain the benefit of depreciation only on so much of the cost as he has incurred or met.with a view to provide for this situation, the income-tax act defined the expression 'actual cost' in section 43(1) of the income-tax act to mean 'the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any of the person ..... for the purpose of finding out the meaning of the word 'met' used in the definition.he also referred us to section 19 of the transfer of property act for the difference between vested interest and contingent interest and contended that what the assessee got by way of subsidy is not a contingent interest but a vested ..... several assets; but in principle it could not be said that the amount received from the government was not to reduce the actual cost explanation to section 10(5) of the 1922 act corresponds to section 43(i) of the 1961 act which has been enacted with further modification widening its scope. ..... anything : ecology, market, raw material, finance, skilled labour. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD686(Mad.)
..... when section 40a(7) was introduced by the finance act, 1975, the finance minister had referred in this connection that : ...a doubt has been expressed that, under the relevant provisions, as presently worded, provisions made in the books of account by taxpayers would also qualify for deduction ..... even the directors' report accompanying the balance sheet of a company incorporated under the companies act, 1956, could be considered as part of the accounts though they may not. ..... the learned counsel strenuously urged that section 40a(7) of the act would apply only to cases where a provision is made in the accounts for payment of gratuity and that a claim made by the assessee before the ito would not amount to a ..... mahalingam, submitted that the payment of gratuity act came into force from 16-9-1972 and as the assessee's accounting year relevant for the assessment year 1973-74 ended 31-12-1972 the assessee had to take into account the gratuity liability for ascertaining ..... making the assessment of the assessee-company under section, 143(3), read with section 144b of the income-tax act, 1961 ('the act'), the ito added a sum of rs. ..... according to chamber's dictionary 'provision' means act of providing, that which is provided or prepared, measures taken ..... made any provisions for payment of gratuity, it is well settled that the assessee which is following the mercantile system of accounting is entitled to claim deduction for a liability created by the statute, namely, the payment of gratuity act. .....
Tag this Judgment!