Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2003)85ITD105(Kol.)
..... a result of omission of section 109, explanation to section 73 was amended with effect from 1-4-1988 by the finance act, 1987 (11 of 1987). ..... his order, concurred with the conclusion of the accountant member that the loss suffered by the assessee in the purchase and sale of shares falls within the category of speculative business loss as per explanation to section 73 of the act and, therefore, can be set off and carried forward only against profits and gains from speculation business.therefore, in the esteemed views of the honble vice-president (kz), the loss of rs. ..... the amending act has added an explanation to section 73 to provide that the business of purchase and sale of shares by companies which are not investment or banking companies or companies carrying on business of granting loans or advances will be treated on the same footing as a ..... explanation to section 73 was inserted by the taxation laws (amendment) act, 1975 which treats the business of purchase and sale of shares by companies (other than excluded companies) as ..... to curb the tendency of some tax payers to reduce the tax burden by manipulation, explanation to section 73 was added by taxation laws (amendment act), 1975. ..... the amending act has added an explanation to section 73 to provide that the business of purchase and sale of shares by companies which are not investment or banking companies or companies carrying on business of granting loans or advances will be treated on the same footing as a speculation business.thus, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)50ITD348(Kol.)
..... dastur, the provision was introduced by the finance act, 1987 with retrospective effect from 1-4-1983 and the non-consideration of section 44bb to these assessment years constituted an error apparent from the record. mr ..... that section was introduced into the income-tax act only by the finance act, 1987 but with retrospective effect from 1-4-1983.alter the judgment of the supreme court in bombay dyeing & ..... only the finance act, 1987 introduced section 44bb with retrospective effect from 1-4- ..... act by the finance act, 1987 which made the said section applicable with retrospective effect from 1-4-1983, ..... 16.4 the aforesaid amendment has come into force with effect from the 1 st june, 1976 and will apply in relation to the assessment year 1977-78 and subsequent years [section 4(b) (part) of the finance act].from the above circular it will be clear that the legislature while introducing explanation 2 to section 9(1)(vii) had in mind only those nonresidents who did not carry on any business as such in india but were merely in receipt of the income by way of fees for ..... 's case (supra), there can be no dispute that a retrospective amendment can give rise to an action on the ground that the failure to apply the provision gave rise to a mistake apparent from the record.the principle is well established that full effect must be given to a statutory ..... applying this principle it is the amended law which must be held to have been in force at the lime that the order sought to be rectified was .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)89ITD199Cal
..... subsequently, it was discovered by the ao that section 27(iii) of the act had been amended by the finance act, 1987 with effect from 1-4-88 and the transactions covered under section 269ua incorporated with effect from 1-10-86 by the finance act, 1986 had been made applicable and that by virtue of the said amended provisions the income of the assessee was to be assessed under the head 'income from house property ..... there was, however, an amendment in section 27(iii) of the income-tax act, 1961 by the finance act, 1937 with effect from 1-4-88 by virtue of which clause (iiia) and clause (iiib) have been ..... is in the light of the above-mentioned facts and law, particular the amended provisions of section 147 and section 27(iiib) i am of the opinion that the action under section 147 was justified in this case for the respective assessment years under consideration.10. ..... however, the cit(a) dismissed the appeals of the assessee upholding the action of the ao in reopening the assessments under the amended provisions of the act and bringing to tax the rent received by the assessee in respect of the leasehold property, under the head 'income from house ..... this case the assessee was, as a result of amendment to section 27(iiib) read with section 269ua(f), required to disclose the income from sub-letting of the house property under the head 'income from house property' and the deductions were to be restricted in accordance with the relevant provisions of the act relating to the said head. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD150(Kol.)
..... in our humble opinion, the provisions contained in explanation 1 to section 2(m) of the wt act which have been introduced by the amendment by the finance act, 1987, no doubt embrace the principle of beneficial ownership by way of deemed ownership as contained in section 27(iiia), (iiib), section 269ua (f)(i) of the it act but there having not been any such amendment in section 40 of the finance act, 1983, the said principle of beneficial ownership can hardly be applied in the matter in hand. ..... there is no such amendment in section 40 of the finance act, 1983. ..... the assessee undisputedly is a closely-held company in respect whereof section 40 of the finance act, 1983 is applicable wherein the terms 'assets' as also 'net wealth' have specifically been defined/explained for the contextual purpose and as such the said section 40 is a complete code in itself as aptly argued by the ld. a. r. ..... the assessee being a closely-held company shall be governed by section 40 of the finance act, 1983 wherein there being no provisions providing for embracement within the fold of 'net wealth' the principle of beneficial ownership or for that matter the property being the subject-matter of part performance of the contract of the nature referred to section 53a of the t. p. ..... has argued that the amendment in section 2(m) of the wt act has been referred to by he ld. ..... and wt act's section 2(m) or the said amendment therein is neither relevant nor applicable in the matter in hand. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1995)53ITD180(Kol.)
..... for this purpose, section 89a was first introduced into the income-tax act by the finance act, 1982. ..... thereafter, the section was omitted and it was replaced by section 80hhc introduced by the finance act. ..... this was consequential to the amendment made to section 28 of the income-tax act treating the above three items as business income. ..... since its introduction, the section has received various modifications and amendments but the substance of the section is the same viz. ..... 1 -4-1991 by the finance act, 1990. ..... this decision establishes the proposition that it is necessary to infer the intention of the legislature while interpreting the provisions of a section it also establishes the proposition that even though in respect of the fulfilment of the second condition viz. ..... however, if regard is had to the fact that the legislature by amendment excluded freight and insurance from the total turnover, thereby bringing the total turnover at par with the export turnover, it would be clear that the intention of the legislature is to harmonise both the expressions.in other ..... a new explanation (ba) was introduced below section 80hhc with retrospective effect from 1-4-1987.as per this explanation, total turnover shall not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station. ..... 2) act, 1991 with retrospective effect from 1-4-1987 defined total turnover to exclude freight and insurance thereby bringing uniformity in the two. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1993)47ITD536(Kol.)
..... jagannath steel corporation [1991] 191 itr 676 by the calcutta high court that the first proviso to section 43b inserted by the finance act, 1987 w.e.f. ..... been held that 'cess' is different in nature and character from "tax or duty" and therefore it cannot be disallowed under section 43b as it stood prior to the amendment to the section made by finance act, 1988 w.e.f. ..... with a view to improving the liquidity position of the public financial institutions and to prevent the misuse of limited resources of finance available to trade and industry through the medium of financial institutions, the bill seeks to amend section 43b of the act to provide that any sum payable as interest on any loan or borrowing from any public financial institution in accordance with the terms and conditions of the agreement governing such loan or borrowing, shall not be allowed as a ..... contrary, a clear intention is expressed in the memorandum explaining the provisions of the finance bill that the amendment would take effect only prospectively. ..... these words which are usually coined by the legislature to denote that the amendment or the statute will take retrospective effect are absent in the provision with which we ..... ) 192-193.the memorandum which contains the reasons for introducing the amendment and therefore should be construed as contemporanea expositio, shows that parliament was fully aware of the legal controversy whether the words "tax" and "duty" covered statutory levies such as cess, fees etc. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)1SOT210(Kol.)
..... " in the light of the discussions made above and respectfully, following the decisions of the aforesaid coordinate benches, we are, therefore, of the considered opinion that the amendment brought by the finance act, 2003 in the 1st proviso to section 43b of the act and consequential omission of 2nd proviso to section 43b is to be treated as retrospective in operation, and consequently, any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the ..... ) and of the sum of rs.5,14,124 (rs.5,13,049 + rs.1,075) as contribution to esi, all pertaining to march, 1996 but all paid before due date for furnishing the return of income for the year, is unsustainable in law particularly in view of amendments, introduced by finance act, 2003 in section 43b of income tax act, 1961, which are to be treated as having retrospective effect covering the year under consideration in view of principles laid down by honble supreme court in allied motors pvt. ..... at this stage, we may observe that the 1st proviso to section 43b covering the payments referred to clause (a) or clause (c) or clause (d) or clause (e) or clause (f) was inserted by the finance act, 1987, with effect from 1-4-1988, but the same was held retrospective in operation by the honble apex court in the case of allied motors pvt.ltd. v. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1992)41ITD582(Kol.)
..... the learned cit( a) also held that the first proviso to section 43b inserted by the finance act, 1987 was applicable from 1-4-1988 and not in the assessment year 1984-85. ..... in support of this claim the assessee relied on first proviso to section 43b inserted by the finance act, 1987 which, as per decision of the tribunal in ito v. k.s. ..... that the said explanation is a mandatory and not clarificatory.we cannot take into account the explanation 2 for disposal of appeal.but there is no injunction prohibiting us for taking into account the first proviso to section 43b introduced through the finance act, 1987 with effect from april 1,1988. ..... the cit(a) concluded "in fine, it may be emphasised that the retrospective amendment of the section by insertion of explanation 2 by the finance act, 1989 sets at naught all the various contentions of the appellant, once it is established that the amount represented statutory liability for excise duty incurred during the year". ..... the court held "having regard to the intent and purport of the provisions of section 43b and the amendments made from time to time, which we have already indicated, this explanation must be held to be only clarificatory in nature and will be effective retrospectively".it is settled law that declaratory or explanatory provisions merely clarify the legal position ..... it was held that section 43 b, as it stood in the year 1984, was found impossible to comply with and to make it workable amendment in section 43b was introduced. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)88ITD1(Kol.)
..... since the instrumentality of the association of persons and body of individuals had been widely used in the past for tax evasion, the amending act, 1987, introduced a new scheme for their taxation by inserting section 167b in the income-tax act, which provided that in the case of an association of persons or body of individuals, tax shall be charged at the maximum marginal rate in the following circumstances : (i) where the shares of the association or body are indeterminate or unknown (this was ..... the third situation envisages in the second proviso to section 86 is that where no income-tax is chargeable on the total income of an aop, which is otherwise chargeable to tax at the normal rates, falls below the minimum threshold of taxation under the relevant finance act, in such a situation though the share of the member in the income of an aop, as computed under section 67a of the act, shall be included in the total income of the member.13. ..... total income of any member thereof for the previous year (excluding his share from such association or body) exceeds the maximum amount which is not chargeable to tax in the case of that member under the finance act of the relevant year, tax shall be charged on the total income of the association or body at the maximum marginal rale; (ii) any member or members thereof is or are chargeable to tax at a rate or rates which is or are higher than the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2004)267ITR1(Kol.)
..... since the instrumentality of the aop and boi had been widely used in the past for tax evasion, the amending act, 1987, introduced a new scheme for their taxation by inserting section 167b in the it act, which provided that in the case of an aop or boi, tax shall be charged at the maximum marginal rate in the following circumstances : (i) where the shares of the association or body are indeterminate or unknown (this was the earlier ..... the third situation envisaged in the second proviso to section 86 is that where no income-tax is chargeable on the total income of an aop, which is otherwise chargeable on the total income of an aop, falls below the minimum threshold of taxation under the relevant finance act, in such a situation though the share of the member in the income of an aop, as computed under section 67a of the act, shall be included in the total income of the member.13. ..... (2) where, in the case of an aop or boi as aforesaid not being a case falling under sub-section (1) : (i) the total income of any member thereof for the previous year (excluding his share from such association or body) exceeds the maximum amount which is not chargeable to tax in the case of that member under the finance act of the relevant year, tax shall be charged on the total income of the association or body at the maximum marginal rate ; (ii) any member .....
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