Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1988)26ITD434(Mad.)
..... thus, on a plain reading of sections 6(6) and 7(7) of the territorial waters act, the letter issued by the central board of direct taxes, the memorandum to the finance bill, 1981 explaining the provisions of the finance act, 1981 and keeping in mind the reasons given by the tribunal in its order in s.a. ..... the finance act, 1950 amended the indian income-tax act, 1922 in certain respects and made it applicable to the whole of india except the state of jammu and kashmir. ..... for instance, the indian income-tax act, 1922 was extended and made applicable to the whole of india by virtue of amendments made by the finance act, 1950. ..... the learned counsel then contended that this view is also supported by legislative practice.thereafter the learned counsel pointed out as to how the indian income-tax act, 1922 was extended and made applicable to the whole of india by virtue of amendments made by the finance act, 1950. ..... court held that : now it is well settled that though the subject of charge is the income of the previous year, the law to be applied is that in force in the assessment year unless otherwise stated or implied and any amendment which is in force at the beginning of the assessment year must govern the case though the amendment is made after the income under assessment is earned.another decision cited by the learned departmental representative was that reported in s.a. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)5ITD129(Mad.)
..... appeal the contention of the revenue is that the cases relied on by the commissioner (appeals) have nothing to do with the definition of 'industrial company' in the finance act since they were decisions given in respect of certain other sections, such as sections 80j, 80hh and 32a of the 1961 act, which contained different definitions and were, therefore, out of the present context. ..... apart from the fact that decision related to a different section, namely, section 32a and not to the definition under the finance act, we find that in the present definition of 'an industrial company' the manufacture or processing of goods is a distinct sub-clause different from the earlier sub-clause relating to construction of ships and, therefore, the word 'construction' can by no ..... we are concerned with the definition of 'industrial company' in section 2(7)(c) of the finance act, 1978, which is in the following terms: industrial company' means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining ..... on the other hand, the contention of the assessee was that though the decisions cited did not relate to the definition under the finance act, they related to the concept of industrial company and in the light of the decisions cited what was important was that the assessee had brought together machinery and labour to produce a new article even .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)7ITD795(Mad.)
..... assets transferred directly or indirectly to the spouse by guch individual otherwise than for adequate consideration into the total income of the individual and agricultural lands constituted assets though not capital assets in terms of section 2(14)(iii) of the act and as per provisions of the finance act, 1979, agricultural income should be aggregated with the non-agricultural income for the purpose of levying tax on non-agricultural income. ..... he further observed that section 14 itself contains saving clause, namely, 'save as otherwise provided by this act' and section 4(1) of the act also provides that income-tax should be calculated in accordance with any central act, namely, the finance act passed every year.accordingly, he confirmed the assessment orders and dismissed the appeals ..... rates, income-tax at that rate or those rates shall be charged for that year in accordance with and subject to the provisions of this act in respect of the total income of the previous year or previous years, as the case may be, of every person : a plain reading of the aforesaid section shows that the income-tax shall be charged for any assessment year at any rate or rates prescribed by any central act which is the annual finance act passed by the parliament. ..... reading section 4 and section 14 together, it will be evident that the charging of income-tax at the rate prescribed by the finance act shall be governed by section 14 both for the purpose of charge of income-tax and computation of total .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)41ITD518(Mad.)
..... to see how the impugned common order in revision dated 7-3-1988 could be said to be hit by section i6(2)(b) of the surtax act.it is a matter of record that the surtax assessments for the assessment years 1982-83 and 1983-84 were made on 9-5-1985, that is to say, after the amendment of the said section by the taxation laws (amendment) act, 1984 with effect from 1-10-1984. ..... in order to curb this mischief, the finance act, 1976 inserted rule 1a under the second schedule, with retrospective effect ..... rationale behind the said rule, which was inserted by the finance act, 1976 with retrospective effect from 1-4-1975, may thus be ..... this would mean that the amended provisions clearly applied; with the result an order in revision under section 16 could be passed any time before the expiry of two years from the end of the financial year in which the order sought to be ..... a statute, should be construed with reference to the context and other clauses of the statutes so as, as far as possible, to make a consistent enactment of the whole statute.so construing the provisions of the second schedule to the surtax act, we have no hesitation in rejecting the assessee's claim in this regard.we therefore, decline to interfere with the impugned orders in question on this issue.35. ..... base is computed, the determination of the statutory deduction is merely an arithmetical exercise because, by definition (see section 2(8) of the act), statutory deduction means an amount equal to 15% of the capital base.16. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1991)39ITD229(Mad.)
..... since the finance act, 1979, section 1 states that it shall be deemed to have come into force from 1-4-1979, this section comes into the statute from 1-4- ..... therefore, a person who made a transfer between 1-3-1979 and 1-4-1979 could not have acted in accordance with the amendment as he could not be sure that the provisions in the bill would become an act.in fact, this section was not even in the bill so as to enable the taxpayer to anticipate it, because what was proposed in the bill was different from what was enacted and the assessee could never have known when he ..... contention of the revenue in reply is that the charge of tax is with reference to the law as it stands on the first day of the assessment year and since the amended act treats transfers made after 28-2-1979 in a different manner, the assessee was required to comply with the conditions so prescribed for availing the tax rebate.11. ..... clause 7: nothing in this section shall apply to or in relation to any capital gain arising from any transfer of a capital asset made after 28th day of february, 1979.however, when the bill was made into an act, the actual amendment took the following form: ..... under clause (5) of the general clauses act, the amendment can take effect only from the date specified in the act or on receiving the assent of the ..... at from these perspectives, it would appear that a retrospective operation of the amendment in conjunction with lack of reasonable classification may make the section unconstitutional. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1988)24ITR261(Mad.)
..... he also referred to section 54(1) as amended by the finance act of 1982 only with effect from ..... cit [1979] 119 itr 980 (mp).he further argued that the amendment brought about by the finance act of 1982 should be considered as of a clarificatory nature and that therefore it would be applicable for the assessment year 1982-83 also.shri seshagiri rao further relied on the decision of the karnataka high court in ..... 6 lakhs on 6-5-1981.in respect of the long-term capital gains arising on the sale of this property, the assessee claimed exemption under section 54(1) of the it act, which was disallowed by the ito for the reason that the assessee was not entitled to this relief, as he was being assessed in the status of a ..... and subsequent assessments and pointed out that after this amendment, only individuals can claim the benefit of section 54(1), but that this amendment was not applicable to assessment year 1982-83. ..... that was a case under the gift-tax act, where the assessee claimed exemption under section 5(1)(viii) of the said act and it was held by their lordships that for application of section 5(1)(viii) it is the nature of the gift that is relevant and not the status in which the return was filed by the assessee and that the fact that the assessee had submitted his return ..... he therefore submitted that the assessee would be entitled to the relief of exemption under section 54(1) of the act and that the cit (appeals) was therefore right in directing the income-tax officer to allow this .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)43ITD543(Mad.)
..... finance act, 1983 had introduced sub-sections (3a) to (3d) with effect from 1-4-1984 which were subsequently omitted by finance act ..... provision similar to sub-section (3c) which existed in 1978 giving overriding effect to sub-section (2a) over sub-section (3a), we have to accept the case of the assessee that the disallowance must be made only under sub-section (3a) as the expenditure is of the nature specified in sub-section (3b) even if some entertainment ..... incurred on -- (a) the expenditure specified in clause (i) to clause (iii) of sub-section (3b) shall be the aggregate amount of expenditure incurred by the assessee as reduced by so much of such expenditure as is not allowed under any other provision of this act; (b) expenditure on advertisement, publicity and sales promotion shall not include remuneration paid to employees of the assessee engaged in one or more of the said activities; (c) expenditure on running ..... decision of the calcutta high court, the expenditure could not be regarded as entertainment expenditure prior to the introduction of these sub-sections but for the explanation inserted with retrospective effect on the same date. ..... apply in respect of expenditure incurred by an assessee, being a domestic company as defined in clause (2) of section 80b, or a person (other than a company), who is resident in india in respect of expenditure incurred wholly and exclusively on -- (i) advertisement, publicity and sales promotion outside india in respect of the ..... cit [1987] 163 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1995)53ITD362(Mad.)
..... reached the cit(a), he held that by virtue of the retrospective amendments made to section 28 of the income-tax act, 1961, by the finance act, 1990, tax was exigible on the said two items of receipt ..... in this regard he was impelled by the consideration that sections 28(iiib) and 28(iiic) inserted by the finance act, 1990 with retrospective effect talked respectively of "cash assistance (by whatever name called) received or receivable" and "any duties of customs or excise repaid or repayable as drawback".as for the assessee's submission that it ..... was one of the subject-matters of the appeal by the assessee before the cit(a) who declined to interfere in the following words : in the report under section 44ab, it was stated that the appellant followed, 'generally mercantile method of accounting, excepting accounting of bonus, sales, commission, cash incentive, etc. ..... the further consideration that they completely ignored the method of accounting regularly followed by the assessee, obviously going on the wrong basis that sections 28(iiib) and 28(iiic) made a departure from the general legal principles governing the accrual of the right to receive a particular ..... this was accepted by the department.for the assessment year 1987-88 the assessee initially filed a return of income in which cash compensatory support and duty drawback received by the assessee were ..... year 1988-89) was delinked for being heard separately together with the departmental appeal relating to the assessment year 1987-88. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD349(Mad.)
..... the contrary, the fees in question are fees strictu sensu, it will have to be ascertained whether the provisions of section 43b as amended by the finance act, 1988 are applicable to assessment year 1987-88 now before us. ..... nothing in the said finance act to indicate that the said amendment was to have retrospective force ..... third thesis was that the words "cess or fee, by whatever name called" were inserted into section 43b(a) of the act by the finance act, 1988 with effect from 1-4-1989. ..... persons on such conditions and for such period as they may deem fit, the exclusive or other privilege of manufacturing, or selling by retail, country liquor or indian-made foreign spirits.sub-section (1a) of the section stipulates that notwithstanding anything contained in the prohibition act, the tamil nadu state marketing corporation limited, which is a corporation wholly owned and controlled by the state government, and which is the assessee before us, shall have the exclusive ..... then arises for consideration is whether the provisions of section 43b of the income-tax act, 1961, with or without the 1988 amendment, would be applicable to this case ..... we were to go on the basis that, the 1988 amendment is declaratory in nature and retroactive in operation, the case of the department will not improve, because the case before us, as we have seen earlier, is not one of fee strictu sensu, nor is it one of cess.we, therefore, hold that there is no question of invoking the provisions of section 43b of the act.34 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD27(Mad.)
..... the rationale behind the said rule, which was inserted by the finance act, 1976 with retrospective effect from 1-4-1975, may thus be stated. ..... in order to curb this mischief, the finance act, 1976 inserted rule1a under the second schedule, with retrospective effect from 1-4- ..... computing capital base, reserves [other than those specified in rule 1 (ii)] as reduced by the amounts credited to such reserves as have been allowed as a deduction in computing the income of the company for the purposes of the income-tax act, 1922 or the income-tax act, 1961 will be taken into account.here, the legislative intent is clearly that the other reserves should not be taken into account in their entirety. ..... and this is what the lower authorities were having in their mind when they were saying that the surtax act does not contain any provision, which contemplates the augmentation of reserve in excess of the type under consideration.30 ..... once the capital base is computed, the determination of the statutory deduction is merely an arithmetical exercise because, by definition [see section 2(8) of the act], statutory deduction means an amount equal to 15% of the capital base.16. ..... thereafter, the assessee submitted a petition under section 13 of the companies (profits) surtax act, 1964, contending that the capital employed as on 1-7-1979 should be increased by a sum of ..... this appeal by the assessee is directed against the order dated 26-10-1987 of the cit (a) vi, madras relating to the assessment year 1981 .....
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