Court : Delhi
Reported in : ILR1992Delhi285; [1991]192ITR361(Delhi)
..... section 27(iii), before its amendment by the finance act of 1987, inter alia, provided that for the purposes of sections 22 to 26 of the act, a member of a co-operative society to whom a building or a part thereof is allotted under a house building scheme shall be deemed to be the owner of the building or ..... this provision was amended with effect from april 1, 1988, and, in addition to the same being applicable to co-operative societies, the said sub-section was also made applicable to companies and other ..... obvious that, in order to mitigate the hardships of a large number of flat and property owners who derived their right, title and interest from co-operative societies, companies or associations of persons an amendment was made in section 27(iii). ..... from the provision of section 27(iii) itself, such a member, as contemplated by section 27(iii) is deemed to be an owner only for the purposes of sections 22 to 26 of the income-tax act. ..... evident that it is only for the purposes of sections 22 to 26 of the income-tax act that the person liable to pay tax is the one provided by section 27(iii). 10. ..... according to learned counsel, section 27(iii) of the act purports to set at naught the said principle because it seeks to vest ownership rights in the property of the company in the ..... the petitioners is that, in respect of built-up space in nirmal commercial building, bombay, the petitioners are being treated as owners by virtue of the provisions of section 27(iii) of the income-tax act, 1961. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)39ITD1a(Delhi)
..... of the learned counsel for the assessee that if section 53 a of the transfer of properly act regarding part performance of the contract was already included in the definition of transfer then there was no point in amending section 2(47) of the act by the finance act, 1987 w.e.f.1-4-1988. ..... of 'transfer in relation to capital asset' contained in section 2(47) of the act was enlarged by insertion of sub-clauses (v) & (vi) and explanation, of the said section by the finance act, 1987 w.e.f. ..... if a transaction involving the allowing of possession of the immovable property to be taken or retained in part performance of a contract of the nature referred to in section 53 a of the transfer of property act was to be included in the definition of transfer for the purposes of section 2(47) then there was no necessity of inserting sub-clauses (v) & (vi) and explanation to section 2(47).reliance was also placed on the supreme court decision in nawab sir mir ostnan ali khan v. ..... ito [1981] 131 itr 597, it was submitted that sub-section (2) of section 52 of the act could be invoked only where the consideration for the transfer of a capital asset had been understated by the assessee or, in other words, the full value of the consideration in respect of the ..... it was also submitted that reference to part performance of the contract as per section 53 a of the transfer of property act was a supporting argument of the cit (appeals) and that the main argument was that the transfer had taken place .....
Tag this Judgment!Court : Orissa
Reported in : (1992)101CTR(Ori)247; [1992]198ITR110(Orissa)
..... with a view to get over them, amendments in section 43b were introduced by the finance act, 1987. ..... the original provisos introduced in section 43b by the finance act, 1987, read as follows (see [1987] 166 itr 9) :'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 furnishing 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 ..... the finance act, 1987, inserted a proviso to section 43b to provide that any sum payable by way of tax or duty, etc ..... from the legislative history set out above, we find that the first proviso to section 43b came into effect from april 1, 1988, and explanation 2 enacted by the finance act, 1989, was made retrospective in its operation with effect from april 1, 1984. ..... both the provisos have been amended by the finance act, 1989. ..... this section was inserted by the finance act, 1983, with effect from april 1, 1984 ..... the memorandum to the finance bill, 1989, clarified the object of deleting the words 'during the previous year' in the following words (see [1989] 176 itr 124 'under the existing provisions of section 43b of the income-tax act, 1961, it is also provided that any sum payable by the assessee as an employer by way of contribution to the provident fund or superannuation fund, etc .....
Tag this Judgment!Court : Delhi
Reported in : (1993)46TTJ(Del)132
..... 43b by the finance acts of 1987 and 1989 are clarificatory because the original s. ..... the cit(a) examined the relevant bills and came to the conclusion that the assessed is not responsible for payment of central excise as it was the duty of the manufacturer and the assessed acted only as a conduit pipe both for collection and refund of central excise. ..... as the provision was harsh and unworkable, amendments were inserted in s. ..... according to the said decisions, the amendments made to s. ..... 41 of the st act, the cit(a) held that the addition was not justified and deleted it. ..... , within the time allowed by the st act. .....
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 : 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 : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1992)43ITD419(Pune.)
..... 1991] 187 itr 703 wherein their lordships of the delhi high court considered the challenge of arbitrariness and ultra vires of article 14 of the constitution and also the contention that the amendment to section 43b by the finance act 1987 with effect from 1-4-1988 by inserting proviso to section 43b was clarificatory in nature, but all these contentions were rejected by the delhi high court. ..... the tribunal being a creature of the income tax act cannot go to the literal or reasonable construction of the statute and when the finance act, 1987 inserted proviso to section 43b with effect from 1-4-1988, it is not open to the ..... union of india [1991] 189 itr 70 holding that proviso to section 43b is retrospective in its operation and explanation 2 to section 43b is subject to the proviso.the law as amended is applicable for the assessment year 1984-85.pointing out the binding nature of such decision, it is prayed that in the absence of any contrary decision on this issue, the said judgment should be ..... bench has been consistently taking the view that if the sales-tax relating to last quarter or last month is paid within the statutory time contained under the sales-tax act, no disallowance under section 43b is required to be made and if it is made beyond the time limit prescribed thereunder, disallowance could be made. ..... also observed that the tribunal was not going into the question of the proviso to section 43b which came into force from 1-4-1988 which is not applicable to the assessment .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1992)43ITD659(Nag.)
..... it is further notable that such deduction is to be allowed before the losses if any brought forward from earlier year is set off under section 72 (vide amendment made by the finance act, 1987). ..... by the new scheme relating to investment deposit account along with the proposed high depreciation rates which were provided by the finance act, 1986 and brought in by the income-tax amendment rules of 1987, the retained earnings and international resources generation of the company would improve. ..... along with the full compliances of the terms and conditions prescribed under section 32ab of the act, and under item no.13 of part iii of such report, a figure of benefit available to the assessee under section 32ab was given which was higher than the figure which in the long term was more beneficial to the assessee, than the deduction allowed under section 32a, then the assessing officer was bound to invite the attention of the ..... the departmental representative very succinctly submitted that the case laws relied upon by the assessee are under the old act or under the amended provisions of the act and as such, could not be relied upon by either side to strengthen their cases. ..... after hearing the speech of the finance minister on 19-3-1990, the assessee filed a revised return for the assessment year 1989-90 proposing to withdraw the claim of investment allowance under section 32a and pressing for the claim of investment deposit scheme allowance under section 32ab 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 : Kerala
Reported in : [1994]205ITR412(Ker)
..... in all the circumstances of the case, we are of the view that section 43b of the act, after the amendment by the direct tax laws (amendment) act, 1987, the finance act, 1988, and the finance act, 1989, and explanation 2 to the section which took effect from april 1, 1984, should be considered to give effect to the proper provisions of law applicable in the instant cases. ..... : [1991]187itr417(ker) ), by judgment dated september 17, 1990, a bench of this court held thus (at page 420) :'in these cases, when the appellate tribunal rendered its decision in the appeals on july 31, 1986, it construed the provisions of section 43b of the act as it stood then, unhampered by the amendments effected in the statute by the direct tax laws (amendment) act, 1987, the finance act, 1988, and the finance act, 1989. ..... the effect of these amendments, and, in particular, the change effected by the finance act of 1989, is virtually to supersede the earlier legal position ..... instance of the revenue, the income-tax appellate tribunal has referred the following question of law for the decision of this court :'whether, on the facts and in the circumstances of the case and also on an interpretation of section 43b of the income-tax act, 1961,-- (i) section 43b cannot be applied to the assessee's case ; (ii) the impugned amount cannot be brought to tax in the hands of the assessee for the assessment year under consideration ?' 2. ..... the amendments so introduced later in section 43b of the act have made great inroads .....
Tag this Judgment!