Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2003)87ITD209(Mum.)
..... " he further submitted that section 195 of the act was amended by the finance act, 1987, to provide for deduction of tax at source on payment of certain sums to non-residents either at the time of credit of the same to their accounts or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever ..... , the assessee made an application for the remittance of the charter charges without deducting tax at source.according to the learned counsel for the assessee, although the ao has relied on section 9(1)(i) r/w section 5(2)(b) of the act, for taking the view that the charter charges are taxable in india, the arguments have been advanced by the learned departmental representative only on the issue of business connection in india. ..... any view, there is no transaction involved in the time charter party of the nature to attract the provisions of section 2(47) of the act and, therefore, this limb can also have no application.therefore, the provisions of section 9(1)(i) referring to "through or from any business connection in india" will have to be considered. ..... however, the expression and the language used in section 172 is mirrored in section 44b of the it act.section 44b is a special provision for computing profits and gains of shipping business in the case of non- ..... it was contended before the learned cit(a) that the provisions of section 9(1)(i) r/w section 5(2)(b) of the act were not applicable and that the charter charges were not taxable in india .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2000)74ITD225(Mum.)
..... it is also claimed that the amendment introduced by the finance act, 1987 relating to sections 27(iiia) and 27(iiib) are of a clarificatory nature and so have a retrospective ..... is also pleaded that from 1992 onwards, there has been a change in section 27 of the income-tax act by virtue of which it is the beneficial owner of the house property that has to be assessed in respect of the income from house property under section 22 of the income-tax act and not the legal owner. ..... realities as mentioned by the apex court in the above headnote which we have extracted, the apex court came to the conclusion that the requirement of compliance with the requirements of the transfer of the property act and registration act in the context of section 22 is not warranted. ..... , in the context of section 22 of the income-tax act, 1961, having regard to the ground realities and further having regard to the object of the income-tax act, namely, to tax the income, "owner" is a person who is entitled to receive income from a property in his ..... 6,03,800, being deductions under section 24(1) of the income-tax act for repairs] in the hands of ..... the provisions of section 27(iiia) and 27(iiib) provide for specific situations and we do not see how they give a blanket permission to the assessee to override the registration requirement laid down under the transfer of property act and the registration act.12. ..... is only in the context of deciding who is the owner for the purpose section 22 of the income-tax act, i.e. .....
Tag this Judgment!Court : Mumbai
Reported in : (2007)109BOMLR2273; (2007)212CTR(Bom)384; [2008]298ITR149(Bom)
..... made by the finance act of 1987 in section 43b 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.it had been argued before the supreme court, that looking to the curative nature of the amendment made by the finance act of 1987, the proviso inserted by the amending finance act of 1987 should be given retrospective effect and be read as forming part of section 43b ..... . the finance act of 1987, therefore, treated section 43b(b) as a distinct class from the other provisions ..... the first proviso was also amended by the finance act, 2003 with effect from 1st april, 2004 by omitting the following words:referred to in clause (a) or clause (c) or clause (d) or clause (e) or clause (f).the section as it stood before the finance act, 2003, treated payments in respect of tax, duty, cess or fee, payment made to an employee, as bonus or commission or services rendered as set out therein any sum payable by the assessee as interest on any loan or borrowing from any public ..... . by section 21 of the finance act, 2003, the following amendments were incorporated in section 43b of the act, 2003.in the first proviso, the words, brackets and letters 'referred to in clause (a) or clause (c) or clause (d) or clause (e) or clause (f) have been omitted .....
Tag this Judgment!Court : Mumbai
Reported in : 2001(3)ALLMR108; (2001)166CTR(Bom)7; [2001]249ITR265(Bom)
..... this connection, he placed reliance on the central board of direct taxes circular which clarified that in order to overcome the judicial interpretation the finance act, 1987, had provided in section 55(2)(a) that cost of acquisition in the case of goodwill will be taken as nil. ..... the circular specifically provides that for the purposes of bringing the capital gains arising from the transfer of tenancy rights in the acquisition of which the assessee has not incurred any expenditure, the finance act has amended to provide that the cost of acquisition of the tenancy rights should be taken at nil. ..... was contended that if all receipts were taxable as casual income at the rate of 35 per cent, then there was no point in the legislature bringing the amendment in section 55 with effect from april 1, 1995, under which the cost of acquisition of a capital asset could be regarded as nil because by bringing the said amendment the receipt is taxable at 20 per cent. ..... that in order to overcome the judicial view, the legislature had to amend the provisions of the income-tax act in order to take the cost of acquisition at nil so as to tax the amount under section 45 instead of section 56. ..... was urged that, in fact, the amendment of section 55 shows that because the cost of acquisition could not be computed the legislature had to step in and make the cost of acquisition at nil rate so that the capital gains arising on transfer of capital asset could be taxed under section 45 of the income-tax act. .....
Tag this Judgment!Court : Mumbai
Reported in : 2009(5)BomCR416; (2009)223CTR(Bom)382; [2009]313ITR128(Bom); [2009]184TAXMAN314(Bom)
..... and the relevant portion reads as under:in order to eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987 has amended clause (vii) of sub-section (1) and clause (i) of sub-section (2) of the section to provide that the claim for bad debt will be allowed in the year in which such a bad debt has been written off as irrecoverable in the accounts of the assessee.with reference to the ..... a circular was issued explaining the provisions of the direct tax laws (amendment) act, 1987 by which the provisions of section 36 were amended. ..... shall be limited to the amount by which such debt or part thereof exceeds the credit balance in the provision for bad and doubtful debts account made under that clause.the finance act, 2001 inserted the following explanation after the proviso to section 36(1(vii):explanation - for the purposes of this clause, any bad debt or part thereof written off as irrecoverable in the accounts of the assessee shall not include any provisions for bad ..... ' reference may also be made to page 878 of the 'law and practice of income tax law by kanga, palkhiwala and vyas, 9th edition, where the learned jurist opined as under:under the amended clause, the requirement of 'establishing' that the debt had become bad in the relevant accounting year is dispensed with; all that the assessee has to show is that the bad debt has been written off as .....
Tag this Judgment!Court : Mumbai
Reported in : 2001(3)BomCR673; 2002(1)MhLj301
..... however, section 2(7a) of the income tax act came to be amended by direct tax laws (amendment) act, 1987 by which the name of the various authorities under the act came to be changed. ..... he contended that the finance act of 1991 has been enacted much after the enactment of the uti act, 1963 and, therefore, the act of 1991 amending the interest tax act was a subsequent law vis-a-vis uti act, 1963. mr. ..... when the parliament enacted the finance act with effect from 1st october, 1991 uti and lic were brought expressly within the purview of the interest tax act thereby the parliament impliedly repealed section 32 of the uti act to the extent of the interest income which is made taxable under the interest tax act. ..... however, as stated above, since 1991, the market borrowings of the central government have increased manifold times and, therefore, by finance act, 2000 the levy has been withdrawn after 31-3-2000. ..... in the present matter, on facts, we find that after finance act of 1991, uti sought the opinion of the central board of direct taxes. ..... dastur submitted that section 2(28a) was introduced in the act by finance act 1988 because the government wanted to levy tax oninterest under section 9(1)(v) of the income tax act which deals with interest income which accrues or arises in india. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)100ITD285(Mum.)
..... third member has held as follows: it is clear from the substitution itself before the amendment by the finance act, 1987 with effect from 1-4-1989 in section 36(1)(vii), the words used were "any debt, or part thereof, which is ..... eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987 has amended clause (vii) of sub-section (1) and clause (z) of sub-section (2) of the section to provide that the claim for the bad debt will be allowed in the year in which such a bad debt has been written ..... however, we are not seriously concerned with the amendment in section 36(2) of the act.however, litigations and controversies as also hardships to the assessees continued on various points even the post 1961 period.therefore, the direct tax laws (amendment) act, 1987 with effect from assessment year 1989-90 has further liberalized the requirement of writing off of debts by an assessee by altogether doing away with the condition ..... of direct tax laws (amendment) act, 1987, by which the provisions of section 36 were amended. ..... for the first time specific provisions were made regarding deduction of the write off of bad debt in the year 1939 by the income-tax (amendment) act, 1939, which introduced provisions of section 10(2)(xi) to the 1922 act, which read as under: (xi) when the assessee's account in respect of any part of his business, profession or vocation are not kept on the cash basis, such sum, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2008)116TTJ(Mum.)177
..... the hon'ble punjab and haryana high court have held that the amendment by the finance act, 1987 was thus held to remedial in nature. ..... 288 itr 366 (supra) in detail and has categorically held that omission of 2nd proviso to section 43b of the finance act, 2003 with effect from 1/4/2004 has no retrospective operation so as to make it applicable to the earlier period and therefore, the p.f. ..... 288 itr 366 in which it has been held that the omission of the second proviso to section 43b by finance act, 2003 w.e.f.1-4-2004 has no retrospective operation so as to make it applicable to the earlier period and therefore the p.f. ..... . applying the above test to the facts of the present case, we are of the view that it is not possible to hold that without the aid of the subsequent finance act, 2003 by which the second proviso to section 43b was omitted, the unamended provision of section 43b would allow the deduction of payment of provident fund, etc ..... any retrospective effect. 4.14. mr. senthilkumar, learned counsel for the assessee took us through the report of the task force on direct taxes reported in (2003) 179 ctr (st) 5 whercunder it was recommended to delete the second proviso to section 43b of the act, but, unless there is any material to show that the said recommendation in the report of the task force on direct taxes was accepted by the legislature, it will be difficult for us to come to the conclusion that .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2003)86ITD193(Mum.)
..... in order to eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987, has amended clause (vii) of sub-section (1) and clause (i) of sub-section (2) of the section to provide that the claim for bad debt will be allowed in the year in which such a bad debt has been written off as irrecoverable in the ..... order to eliminate the disputes in the matter of determining the year in which a bad debt can be allowed and also to rationalise the provisions, the amending act, 1987, has amended clause (vii) of sub-section (1) and clause (i) of sub-section (2) of the section to provide that the claim for bad debt will be allowed in the year in which such a bad debt has been written off as irrecoverable in the ..... amendment by the finance act, 1987 ..... the decision of the cit(a) that after the amendment of section 36(1)(vii) and section 36(2) by the it amendment [sic-direct tax laws (amendment)] act of 1987, the deduction is permissible in respect of any debt written off by the assessee in the books of account and the ito has no power to question the assessee on this account, being erroneous and contrary to law, in ..... of the case in his order and came to the conclusion that even after the amendment, which was brought on the statute book by the finance act, 1987, w.e.f. ..... the following decisions :newdeal finance & investment ltd. v. ..... the chennai bench of the tribunal in newdeal finance & investment ltd. v. dy. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2004)85TTJ(Mum.)821
..... with a view to blocking this escape route for avoiding capital gain tax, the finance act, 1987, has inserted new sub-section (3) in section 45, the effect of this amendment is that profits and gains arising from the transfer of a capital asset by a partner to a firm shall be chargeable as the partner's income of the previous year in which the ..... sub-section (3) of section 45 was brought on the statute by the finance act, 1987 w.e.f.1st ..... cit(a)'s order and contended that section 14a has been inserted by the finance act, 2001, retrospectively w.e.f. ..... of name in the books of the municipal authorities may take a long time but once the property is transferred by following the requirements of the transfer of properties act, 1982 read with the relevant section of registration act, the genuineness of the transfer itself cannot be challenged, even though the transferor may still be shown as the owner of the property in the books of the municipal ..... of municipal authorities in respect of immovable properties, the mutation of name in the books of the municipal authorities may take long-time but once the property is transferred by following the requirements of the transfer of properties act, 1982 read with the relevant section of registration act, the genuineness of the transfer itself cannot be challenged even though the transferor may still be shown as the owner of the property in the books of the municipal authorities. ..... is also not relevant because of amendment to section 45(3) of the act w.e.f. .....
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