Court : Punjab and Haryana
Reported in : (1991)100CTR(P& H)290; [1991]188ITR550(P& H)
..... all these petitions, the petitioners seek the quashment of the respective complaints and the proceedings resulting therefrom, inter alia, on the ground that, before the amendment of section 194a, vide finance act, 1987, which came into force on june 1, 1987, there was no provision like the present explanation to sub-section (1) of this section making the crediting of any interest to any account, whether called 'interest' payable account' or 'suspense account', would amount to crediting the interest payable ..... mittal, learned counsel for the respondent, on the other hand, stated that the explanation inserted by the finance act of 1987 to sub-section (1) of section 194a simply explains the existing provisions of law and had not created any new offence and that, under the mercantile accounting system, the accused-petitioner was bound to show ..... the explanatory notes on the provisions relating to direct taxes while introducing the finance act, 1987 (see [1987] 168 itr 87). mr. ..... the question then arises as to whether it can be read in the un-amended provisions of section 194a of the income-tax act that the crediting of the interest in the interest payable account would be deemed to be payment to the different depositors and the company would be liable for non-deduction ..... fact, this interpretation cannot be disputed because while introducing the finance bill, 1987, the explanatory note clearly provides that the legislature had filled up a lacuna in the existing provisions of section 194.10. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : (1991)99PLR225
..... the quashment of the respective complaint and the proceedings resulting therefrom inter alia, on the ground that before the amendment of section 194a vide finance act, 1987, which came into force on 1-6-1987, there was no provision like the present explanation to sub section (! ..... mittal, learned counsel for the respondent, on the other hand stated that the explanation inserted by finance act of 1987 to sub section (i) of section 194a simply explains the existing provisions of law and had not created any new offence and that under the merchantie accounting system the accused-petitioner was ..... the provisions relating to direct taxes while introducing the finance act 1987 figuring at page 87 (1987) 168 i. t. r. ..... a base glance through the above referred notes leaves no doubt that section 194a has been amended to provide that the tax will be deducted at source on accrual of interest in the end of the accounting year or at the time of crediting to the account of payee or at the time of payment, whichever is ..... with a view to prevent postponement of liability relating to such deduction of tax at source, section 194a has been amended to provide that tax will be deducted at source, on accrual of interest at the end of the accounting year or at the time of credit to the account of a payee or ..... cannot be disputed because while introducing the the finance bill, 1987, the explanatory note clearly provides that the legislature, had filled up a lacuna in the existing provisions of section 194.9. .....
Tag this Judgment!Court : Kolkata
Reported in : (2005)3CALLT409(HC),(2005)197CTR(Cal)619,[2005]278ITR501(Cal)
..... does not widen the scope of application of the act in all respect contrary to the confines created by the amendment substituting section 143(1) under the finance act, 1987. ..... this is clear from the scheme introduced by the finance act, 1987, which was a deliberate and clear departure from the summary assessment contemplated under section 143(1) brought about with a particular purpose and object as reflected in the explanation to section 143.12.1 in order to attract section 263, the order must be an order passed by the ao in the ..... explanation was further amended by the finance act, 1994, to include section 246 along with section 264. ..... after the amendment under the direct tax laws (amendment) act, 1987, effective from 1st april, 1989, the scheme of summary assessment was omitted along with the assessee's right to object to the summary assessment, and only an intimation was to be sent without prejudice to section 143(2) which authorizes the ao to scrutinize the return and consider all the claims and pass an order of assessment under sub-section (3) dealing with the issues involved in ..... contended that the act was amended by the finance act, 1999, w.e.f ..... : [1972]83itr170(sc) .4.5 by reason of the explanation, an intimation or an acknowledgement is a deemed order by fiction created thereunder for the purpose of section 246 providing for an appeal against an intimation under section 143(1) where the assessee objects to the making of adjustments brought about by the finance act, 1994, w.e.f. .....
Tag this Judgment!Court : Kolkata
Reported in : [1996]218ITR149(Cal)
..... sri jagannath steel corporation : [1991]191itr676(cal) , wherein this court has held that the amendments to section 43b made by the finance acts, 1987 and 1989 are clarificatory and, therefore, the provisos inserted by these amendments, should also apply to earlier years, even though the provisos and the explanations have been apparently given ..... 'as it would appear from its conclusion, the tribunal took the view that the amendments to section 43b as made by the finance acts of 1987 and 1989 should also apply with equal force to the assessment year earlier than the assessment ..... , on the facts and in the circumstances of the case and on a correct interpretation of section 43b of the income-tax act, 1961, the learned tribunal was justified in law in holding that the first proviso to section 43b of the income-tax act, 1961, introduced by the finance act, 1987, with effect from 1st april, 1988, would be applicable to the assessment year 1984-85 ? ..... the provisos inserted by the finance act, 1987, with effect from april 1, 1988, relax the main provision of section 43b by permitting deduction of the liabilities on account of (i) any tax, duty cess or fee ; (ii) any bonus or commission for services rendered ; (iii) any interest on borrowing from any public financial institution, if the payments ..... to sort out the possible anomalies and to prevent duplication of deduction, the explanations have been inserted by the direct tax laws (amendment) act, 1987, and, again, by the finance act, 1989.2. .....
Tag this Judgment!Court : Gujarat
Reported in : (2009)225CTR(Guj)313; [2009]316ITR104(Guj)
..... further submitted that the amendment was made to section 199 of the act, simultaneously with the amendment to section 194a of the act, by the finance act, 1987, with effect from 1.7.1987. ..... satisfied that the changed method having been adopted for three assessment years and thereafter its continuance had become impossible of account of an amendment in the companies act, 1956, a factor which was entirely beyond the control of the assessee, could not be regarded as suffering from lack of durability ..... further in respect of the assessment years for and before 1988-89 the act provided vide sections 18 to 21 as they stood at the relevant time that the income under the head interest on securities shall be chargeable on ..... the revenue has filed this tax appeal under section 260a of the income tax act, 1961 for assessment year 1986-87 proposing to formulate the following substantial ..... this approach of the department had already resulted into substantial levy of interest under section 215 and 217 in a large number of group cases including the case of ..... therefore, submitted that the changed method of accounting even if adopted long before this amendment, was quite consistent with this logic adopted by the legislature. ..... officers should treat such amounts as not forming part of the income of the assessee until realised, this direction by way of a circular cannot be considered as travelling beyond the powers of the board under section 119 of the income-tax act.18. ..... sections 273 and 271(1)(c) of the act .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1993)45ITD500(Pune.)
..... in reply, the learned counsel for the assessee submitted that amendment to section 40 of the finance act, 1983 is retrospective in nature as held by the courts in respect of amendment to section 43b made by finance act, 1987. ..... union of india [1991] 189 itr 70 was followed for coming to the conclusion that first proviso inserted by the finance act, 1987 with effect from 1-4-1988 in section 43b of the income-tax act, 1961 is retrospective and clarificatory in nature.reliance was also placed on the decision of the rajasthan high court in the case of brij. b. ..... copies of the correspondence filed by the learned departmental representative indicated that the special audit party has pointed out that the amendments made by the finance act, 1988 in section (3) of finance act, 1983 by inserting proviso are operative from the assessment year 1989-90 as a result of which non-agricultural lands held as stock-in-trade would be exempt from the assessment year 1989-90 onwards. ..... therefore, prima facie, from the copies of correspondence produced by the learned departmental representative, it appears that the audit has pointed out that the amendment made by the finance act, 1988 by inserting proviso thereto in section (3) of the finance act.1983 is applicable for the assessment year 1989-90 and onwards and not for the earlier assessment years 1984-85 to 1987-88. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1992)42ITD719(Hyd.)
..... the amendment made in section 43b by section 10 of the finance act, 1987, with effect from april, 1, 1988, is not clarificatory in nature and cannot be given retrospective effect from april 1, 1984.the said decision is followed by a later division bench of the delhi high court in escorts ltd. v. ..... it was found impossible for an assessee to comply with section 43b as it stood in the year 1984, and to make it workable, amendment in section 43b were introduced by the finance act, 1987. ..... the amendments were intended to make the provisions workable.under the proviso introduced by finance act, 1987, the parliament created an opportunity for the assessee to pay the sales tax on or before the due date applicable in each case for furnishing the return of income in order to entitle him to claim deduction of that amount.the memorandum explaining the provisions in the finance bill, 1989 clarified the object of insertion of the first proviso [see 176 itr (st. ..... ) 123] inter alia, it contained the following: the finance act, 1987, inserted a proviso to section 43b to provide that any sum payable by way of tax or duty, etc. ..... the first proviso to section 43b of the act inserted by the finance act, 1987 was enacted in order to suppress the miscief and for the purpose of giving relief to an assessee who is not an unscrupulous dealer. ..... it was held that the proviso to section 43b introduced by finance act, 1987 is clarificatory in nature and therefore retrospective in operation.13. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)100ITD217(Mum.)
..... it is very clear from the above explanatory note that by the amendment brought in by the finance act, 1987 the law provided in section 70 for set off of loss from one source against income from any other source under the same head of income was made simpler resulting in a uniform treatment of capital loss ..... (7) the cit(a) has observed that as a result of the amendment brought in by the finance act, 1987 in the provisions of law contained in section 70, there is no distinction between long term capital gains and short term capital gains in matters relating to carry ..... giving rise to long term capital gain and short term capital gain has been clearly defined in the act and the conclusion of the cit(a) that the distinction between long term capital gains and short term capital gains have been completely done away with by the amendment to section 70 by the finance act, 1987 is not correct. ..... the finance act, 1987 has amended the provisions of section 70 and the amended law should apply to the impugned assessment years 1995-96 and 1996-97 which are different from the law relating ..... the finance act, 1987 brought an amendment in section 70 ..... the learned senior counsel contended that the text of the circulars referred to in above paragraphs clearly showed the intention of law wherein the amendment brought in by the finance act, 1987 dispensed with any sort of distinction between long term loss and short term loss in matters of set off and carry forward and allowed the set off of loss of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (2007)107ITD343(Chd.)
..... the amendment which was made by the finance act of 1987 in section 43b by inserting, inter alia, the first proviso, as remedial in nature, designed to eliminate unintended consequences which may cause undue hardship to the assessee and which made the provision unworkable or unjust in a specific situation ..... the amendment which was made by the finance act of 1987 in section 43b by inserting, inter alia, the first proviso, was remedial in nature, designed to eliminate unintended consequences which may cause undue hardship to the assessee and which made the provision unworkable or unjust in a specific situation ..... looking to the curative nature of the amendment made by the finance act, 1987, it has been submitted before us that the proviso which is inserted by the amending finance act of 1987, should be given retrospective effect and be read as forming a part of section 43b from its inception. ..... 1984-85, or any subsequent year on the ground that he has actually made a payment towards such liability in that year.there was an amendment in section 43b by the finance act, 1987 which may not be relevant for the purpose of present controversy. ..... to obviate this kind of unexpected outcome of section 43b, the first proviso was added in section 43b by the finance act of 1987. ..... the finance act, 1987, inserted a proviso to section 43b to provide that any sum payable by way of tax or duty, ..... the finance act, 1987, inserted a provision of section 43b to provide that any sum payable by way of tax or duty, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1989)30ITD143(Hyd.)
..... . "can the amendment to section 43b by the finance act, 1987, be taken into account in interpreting the provisions of section for the asst.year ..... . "can the amendment to section 43b by the finance act, 1987 be taken into account in interpreting the provisions of section for the ..... we may also refer to the amendment to section 43b brought in by the finance act, 1987. ..... . as the intendment of the first proviso referred to above is clarificatory of the provisions of section 43b, even though it was introduced by the finance act, 1987, with effect from 1-4-1988 it should be followed with respect to the preceding assessment years also in order ..... . 1 under s.43b by finance act, 1987, with effect from 1-4-1988 : "provided that nothing contained in this section shall apply in relation to any sum referred to in clause (a) which is actually paid by the assessee on or before the due date applicable in his case for furnishin the return of income under sub-section (1) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by ..... crossed cheque, the parliament did specify that payments made after 31-3-1969 would be hit by the said provision.however, the parliament has also specified in respect of a number of other fiscal provisions, particularly annual amendments to the 1961 act brought through the finance acts that certain provisions would be applicable with effect from specified assessment years .....
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