Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1986)18ITD93(Hyd.)
..... roadways [1985] 12 itd 647 unequivocably held that the rates of depreciation mentioned in appendix i of part i are part of rule 5 of the rules and thereby they form part of section 32(1) of the income-tax act, 1961 ('the act') itself and, as such, appendix i of part i forms part of substantive law and is not procedural in nature.they further held when there is an amendment of the substantive law, it is normally not retrospective unless the amending act itself makes it retrospective. ..... , but they are all cases which deal with the finance acts but none of them deal with the rules framed by the ..... the 1961 act is a permanent act whereas the finance act is passed every year and its main purpose is to fix the rates which would be charged under the act for that ..... shri c.v.k.prasad further submitted that ordinarily the finance act would be passed governing the rates of income-tax, ..... is most unusual to think that the parliament would pass a finance act prescribing the rates of income-tax, etc. ..... he further held that as the finance act comes into force on the first day of april in each year, the law has to be applied to the previous year's income is the law in force at the commencement of the assessment year that is on the first april in ..... if the finance act is passed, it is the rate fixed by that act ; if the finance act is not yet passed, it was the rate proposed in the finance bill pending before the parliament or the rate in force in the preceding year, whichever is more favourable to the .....
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 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2005)94ITD178(Hyd.)
..... of law that an ao is a creature of statute and thus he cannot question the validity of provision inserted in the statute, by giving a different interpretation to the plain language of the statute, the proviso inserted by finance act, 2002 was given retrospective effect from 11-5-01 and it was clarified, in specific terms, that the ao should not increase the liability by any method in any assessment year beginning on or before the i^st day of april, 2001 ..... harassment to the assessees whose assessments were already completed, proviso was inserted below section 14a to clarify that the ao should not reopen the cases in exercise of powers under section 147 of the act for any assessment year beginning on or before 1^st day of april 2001.the memorandum explaining the finance bill also indicated that the amendment shall take effect retrospectively from 11^th may, 2001 i.e. ..... by the finance act, 2001, section 14a was inserted whereby expenditure which has a direct connection with the exempted income is not allowable as ..... assessments were reopened on 30-3-2002 which date falls before insertion of the proviso to section 14a and thus the clarificatory amendment does net render ineffective the earlier proceedings initiated before enactment of the proviso. ..... the legislature has not made out a distinction between an assessment as made under section 143(3) of the act and a return which is processed under section 143(1) of the act inasmuch as the emphasis is on the finality of the proceedings and not .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD617(Hyd.)
..... retrospective amendments in the shape of sub-sections (iiia) to (iiic) were inserted in section 28 of the it act by finance act, 1990 which was introduced in the lok sabha ..... could be drawn as to whether the expenditure should be allowed as a deduction.all these disallowances were, therefore, ultra vires the powers of the income-tax officer under section 143(1)(a).nowhither case before us also, unless the intimation dated 28-2-1990 was passed after the retrospective amendment made in section 28, by merely looking into the returns or to the profit and loss account or back records of earlier years, it cannot be said that the assessee is not ..... were inserted in section 28 by finance act, 1990 with retrospective ..... assessee is contesting the same in appeals and the matters have not become final.it is alternatively contended that in any event whether the assessee has such power or not can only be gone into by process of interpreting sections and the law laid down in various cases on the subject and by no stretch of imagination could it be said that this part of law is so clear that prima facie at the stage of making the intimation without ..... 1984-85 4,14,630 (loss) - 4,14,630 1985-86 21,69,205 (loss) 4,14,630 25,83,835 1986-87 84,00,717 (loss) 25,83,835 1,09,84,652 1987-88 2,88,494 (income) 1,13,99,176* 1,11,10,682 1988-89 60,38,300 (income) 1,11,10,682 50,72,382 by the date of filing the return for assessment year 1989-90, it remained the contention of the assessee that these items did not .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1996)58ITD339(Hyd.)
..... to solve this practical difficulty, clause (i) of sub-section (1) of section 142 was amended by finance act, 1990, so that if a person fails to furnish a return of income by the due date mentioned in section 139 (1), a notice calling upon him to file the return cab be sent to him within the relevant assessment year itself. ..... it was further contended that the notices under section 142 (1) were issued after the end of the assessment year and were, therefore, invalid and in that context our attention was invited to the provisions of section 139 (2) before their deletion by direct tax laws (amendment) act, 1987, w.e.f. ..... though the provisions of section 139 (2) were deleted by direct tax laws (amendment) act, 1987, w.e.f. ..... rather the amendment by finance act, 1990, was in the direction of empowering the assessing officer to even complete the assessment within the assessment year itself ..... 549 dated 31-10-1989 as an explanatory note on the provision of direct tax laws (amendment) act, 1987 [182 itr 1 (st. )]. ..... if he fails to so file or has not made a return under section made the assessing officer to wait till the issue of notice under 139 (2) and statutory period of 30 days was over.in order to eliminate the time taken on these legal formalities and also to enforce voluntary compliance on the part of the assessee, the direct tax laws (amendment) act 1987, deleted section 139 (2) and simultaneously empowered the assessing officer to make ex parte assessment if the assessee fails to make the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2004)89TTJ(Hyd.)555
..... to section 32, which came into effect only from 1-4-2002, on account of its insertion by the finance act, ..... the said explanation inserted by the finance act, 2001, which makes the claiming of depreciation mandatory, effective from 1-4-2002, reads as follows : "explanabon ..... has estimated his net income by way of purchase and sale of kirana and other goods including car hire income, it is deemed that expenses allowable under sections 30 to 43d have been claimed and allowed.hence, the assessee's contention that no depreciation was claimed on the car cannot be accepted.the asset, i.e. ..... accompanying statement, and as the assessee did not make any such mention anywhere, it has to be necessarily presumed that the assessee returned the income, after taking into account the depreciation allowable under section 32 of the act.having regard to rival submissions, i am of the view that the assessee deserves to succeed. ..... is there when we examine the language used in section 16 and that of sections 34 and 37 of the act. ..... duly shown in the return was not considered by the income tax officer because books of account produced were not properly maintained and it was necessary to estimate profits by invoking the proviso to section 13 of the indian income tax act, 1922. ..... on hire, on estimate basis, and so there was an effective allowance of depreciation on the car in the relevant years, and so the capital gain has to be computed under the head 'short-term capital gains' in terms of section 50 of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2002)80ITD233(Hyd.)
..... the said explanation inserted by the finance act, 2001, which makes the claiming of depreciation mandatory, effective from 1-4-2002, reads as follows- explanation 5 : for the removal of doubts, it is hereby declared that the provisions of this sub-section shall apply whether or not the assessee has claimed the deduction in respect of depreciation in computing this total income.it is stated that before the insertion of the above explanation, the matter is governed by ..... that it was not mandatory for the assessee to have claimed the depreciation before the insertion of explanation 5 to section 32, which came into effect only from 1-4-2002, on account of its insertion by the finance act, 2001. ..... there when we examine the language used in section 16 and that of sections 34 and 37 of the act. ..... shown in the return was not considered by the income-tax officer because books of account produced were not properly maintained and it was necessary to estimate profits by invoking the proviso to section 13 of the indian income-tax act, 1922. ..... statement, and as the assessee did not make any such mention anywhere, it has to be necessarily presumed that the assessee returned the income, after taking into account the depreciation allowable under section 32 of the act.8. ..... hire, on estimate basis, and so there was an effective allowance of depreciation on the car in the relevant years, and so the capital gains has to be computed under the head 'short-term capital gains' in terms of section 50 of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD552(Hyd.)
..... other than agricultural income is determined by deeming the agricultural income as part of the total income and by this provision, it cannot be concluded that the agricultural income forms part of the total income as such.the provisions of section 2(2) of the finance act, 1993, make it clear and provide that where the assessee has in the previous year any net agricultural income exceeding rs. ..... the inclusion of agricultural income for determining the tax payable by the assessee is under the finance act but that is only for the purpose of charging income-tax in respect of the total income and for no other purpose. ..... if the assessee had unabsorbed depreciation of earlier years, it has to be allowed set off as per the provisions of section 32(2) of the act in determining the subsequent year's income wherein such unabsorbed depreciation is to be added to the amount of allowance of depreciation and deemed to be part of that allowance. ..... it is defined under section 2(45) to mean total income referred to in section 5 computed in the manner lald down in the act.section 5 defines the scope of "total income" and provides that the total income of any person includes all income from whatever source derived which is received or is deemed to have been received, accrues or arises or is deemed to have ..... agricultural income is one income which is not to be included while computing the total income of an assessee and that is provided in sub-section (1) of section 10 of the it act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1985)11ITD498(Hyd.)
..... section (1a) of section 35b was inserted with effect from 1-4-1978, by the finance act, 1978, and was omitted with effect from 1-4-1980 by the finance act ..... in force in the assessment year 1979-80, with which we are concerned in this appeal.that subsection was as follows: (1a) notwithstanding anything contained in sub-section (1), no deduction under this section shall be allowed in relation to any expenditure incurred after the 31st day of march, 1978, unless the following conditions are fulfilled, namely:-- (i) the business of export of goods and is either a ..... ; or (ii) the business of provision of technical know-how, or the rendering of services in connection with the provision of technical know-now, to persons outside india; and (b) the expenditure referred to in that sub-section is incurred by the assessee wholly and exclusively for the purposes of the business referred to in sub-clause (i) or, as the case may be, sub-clause (ii) of clause (a).4. ..... that operation amounted to manufacture of pharmaceuticals by the assessee, with the result that the assessee came within the ambit of the term 'industrial company' in the finance act, 1966. ..... the term 'small-scale exporter' has been defined in the explanation in said sub-section, which reads as follows: (a) 'small-scale exporter' means a person who exports goods manufactured or produced in any small-scale industrial undertaking or undertakings owned by him: ..... certain expenses under section 35b of the income-tax act, 1961 ('the act'). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1987)21ITD231(Hyd.)
..... in that case it was held that the total income for a period of 21 months can be assessed at rates specified in the relevant finance act for that total income and the ito could not apply the rate applicable to the income of the last period of 12 months. ..... so also, it is contended by the learned counsel for the assessee that making two assessments one for the period from 27-7-1980 to 31-12-1980 and another from 1-1-1981 to 31-3-1981 is quite in accordance with section 176(2) and hence there is nothing illegal either in filing two returns or requesting to accept the returns for the two assessment years, vis. ..... 3841) dealing with the intendment, ambit and the clear meaning of sub-section (2) of section 176 the learned author states as follows : sub-section (2), newly enacted by the 1961 act, states as to how the incomes of these two periods should be dealt with. ..... , during the assessment year 1983-84 (the relevant previous year for which had expired on 30th june, 1982), the income of the period contemplated by sub-section (1) of section 176 is that of the entire period between 1st july, 1982 to 15th august, 1983, being the date of discontinuance. ..... assessee have been made up to a date within the said financial year, then, at the option of the assessee, ending on that date, or (iii) ending with the period, if any, determined under clause (c), as the case may be, or section 176 of the act deals with discontinued business and how to assess the total income of such discontinued business. .....
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