Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1990)34ITD58(Delhi)
..... the explanation to section 194a as inserted by the finance act, 1987 with effect from 1-6-1987 is in the following terms:- explanation: for the purposes of this section, where any income by way of interest as aforesaid is credited to any account, whether called 'interest payable account' or ' suspense account' or by any other name, in the books of ..... there the high court was considering the question of attractability of prosecution under section 276b of the income-tax act, and conviction under section 409 of the indian penal code (criminal breach of trust) on account of failure to deposit with the government the amount retained by a person by way of deduction of tax at source ..... however, the income-tax officer found that the assesseehad not deducted tax on the amount of interest credited on various dates in terms of section 194a of the income-tax act, 1961, the details thereof being as follows:- year due on the said loan1981-82 rs. ..... 201(1 a) provides that without prejudice to the provisions of sub-section (1), if any such person, as is referred to in that sub-section, does not deduct or after deducting, fails to pay the tax as required by or under this act, it shall be liable to pay simple interest at the rate specified therein. ..... the learned departmental representative for requesting the president to constitute a special bench for the decision of this point.the point which arose before the hon'ble delhi high court in the case of pnb finance & industries ltd. ..... finance &industries ltd. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)36ITD35(Delhi)
..... with a view to meet this object, a proviso was inserted in section 43 b of the finance act with effect from 1-4-1988 by the finance act 1987 in the following manner:- provided that nothing contained in this section shall apply in relation to any sum referred to in clause (a) or clause (c) which is actually paid by the assessee on or before the due date applicable in his ..... was of the opinion that there were conflicting decisions of the benches of the income-tax appellate tribunal (the tribunal) in respect of the proviso, which was inserted in section 43b of the income-tax act 1961 (the act) by the finance act 1987, w.e.f. ..... case of the assessee is that the proviso which was introduced by the finance act 1987 is retrospective in nature. ..... the finance act 1987 inserted a proviso to section 43b to provide that any such sum payable by way of tax or ..... stage comes after the introduction of the proviso by the finance act 1987. ..... the finance act 1987. ..... how is the position changed after the introduction of the proviso by the finance act 1977 and, four, to what extent has the explanation altered the position.19 ..... 1-4-1988 and the explanation 2, which was inserted in the said section, by the finance act 1989 retrospectively from 1-4-1984, it forwarded the record of the appeal to the president of the tribunal with a request to constitute a special bench to resolve ..... to curb such practice, section 43b was brought on the statute with effect from 1-4-1984 by the finance act 1983, which reads as under: - 43b. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)37ITD430(Delhi)
..... out that the assessee changed its stand and filed additional grounds of appeal on 4-10-1988 after notices dated 10-8-1988 had been issued under section 8 of the companies (profits) surtax act and section 104 of the income-tax act so as to avoid the liability in respect of surtax and additional tax since by finance act, 1987 the levy of surtax was discontinued and the provisions of sections 104 to 109 were deleted with effect from 1-4-1988. ..... (b) to section 263(1) as amended by the finance act, 1988 with effect from 1-6-1988 provides that "record" shall include and shall be deemed always to have included all records relating to any proceeding under the income-tax act, 1961 available at the time of examination by ..... there being any constructive receipt of income by the assessee in the three assessment years in question also could not arise.7.3 the contracts dated 30-8-1984 and 5-11-1984 read with the letters dated 9-2-1987, 25-8-1987, 1-9-1987, 4-8-1988 and 7-10-1988 were clear and did not refer to the payment of any interest. ..... eljay was that of a confidant of both (sc as well as the assessee) and that the right of the assessee to the amount was inchoate and imperfect till 25-8-1987 or 1-9-1987 when sc informed eljay that full and final payment had been made under the subject contracts. ..... of the consolidated order dated 12-3-1990 of the learned commissioner of income-tax, delhi iii, new delhi for assessment years 1985-86 to 1987-88 under section 263 of the income-tax act, 1961.2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)37ITD387(Delhi)
..... person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.the said explanation was inserted by the finance act, 1987 with effect from 1-6-1987 and the contention of the learned departmental representative was that this explanation is of a clarificatory nature and would, therefore, apply even to the period prior ..... it, thus, enlarges the obligation of a taxpayer and, therefore, cannot be given retrospective effect when the legislature itself has clearly said that it will have effect from 1-6-1987. ..... paragraph 38.6 of these explanatory notes printed at page 1195 of taxman's direct tax circulars, volume iii, 1988 edition states that these amendments will come into force from 1-6-1987. ..... 495 dated 22-9-1987. ..... no deduction of tax was made by the assessee from the said amount of interest in accordance with section 194-a of the income-tax act, 1961. ..... therefore, the assessing officer levied interest in terms of section 201(1 a) of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)38ITD389(Delhi)
..... as regards the circular of the board, it is patently of the nature of the explanation referred to above which the legislature inserted by the finance act, 1987 with effect from 1-6-1987 and certainly enlarged the scope of section 194a and consequently places a higher burden on a taxpayer than could legitimately be assumed from the plain language of the statute ..... the said explanation was inserted by the finance act, 1987 with effect from 1 -6-1987 and the contention of the learned departmental representative was that this explanation is of a clarificatory nature and would, therefore, apply even to the period prior to 1-6-1987. ..... this is an assessee's appeal against the levy of interest under section 201(1a) of the income-tax act, 1961 for not deducting tax from its interest of rs. ..... much so, that it did not even make the explanation operative from the first day of the assessment year and made it operative from 1-6-1987 with sufficient prior notice to all concerns. ..... thus, enlarges the obligation to a tax-payer and, therefore, cannot be given retrospective effect when the legislature itself has clearly said that it will have effect from 1-6-1987. ..... 38.6 of these explanatory notes printed at page 1195 of taxman's direct tax circulars, volume iii, 1988 edition states that these amendments will come into force from 1-6-1987. ..... learned departmental representative on the other hand relied upon the board's circular as well as the addition of explanation to section 194a with effect from 1-6-1987. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1991)39ITD1a(Delhi)
..... substance in the arguments 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. ..... submitted that the definition 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. ..... thrust of the argument was that 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 ..... 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 as a result of ..... point made by shri syali was that under section 27 of the urban land (ceiling & regulation) act, there was a prohibition on transfer of urban property except with the previous permission in writing of the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1992)41ITD192(Delhi)
..... sum in respect of which assessee had incurred a liability and the same had become payable in that year.to supersede the decision of the andhra pradesh high court an explanation namely, explanation 2 to section 43b was inserted by finance act of 1989 with retrospective effect from 1-4-1984 to provide that 'any sum payable' would mean a sum for which the assessee incurred liability in the previous year even though such sum might not have ..... 1-4-1988 by the finance act of 1987 is applicable for ..... proviso had earlier been inserted to section 43b by finance act, 1987 w.e.f. ..... , with effect from such date as the central government may, by notification in the official gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to pay tax under this act on all sales of goods other than electrical energy effected by him in the course of inter state trade or commerce during any year on and from the date so notified.thus it is evident that under the provisions ..... the supreme court affirmed the decision of the high court and further held that the mere fact that under section 9b(3) of the orissa sales-tax act, 1947, the dealer was compelled to deposit the amount of sales-tax in the state exchequer did not prevent the applicability of the principle laid down by the supreme court in chowringhee sales ..... state even at the cost of repetition, that explanation 2 to section 43b was incorporated retrospectively to come into force from 1-4-1984 by the finance act of 1989. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1994)48ITD258(Delhi)
..... the finance act, 1987 w.e.f. ..... its origin on the interpretation of proviso to section 43b inserted by the finance act of 1987 w.e.f. ..... assessee also approached the hon'ble high court of allahabad and the latter vide order dated 14th february, 1991, directed the assessee to file an application under section 154(1)(b) of the income-tax act raising the contentions and objections as are open in law with regard to the intimation sent by the assessing officer under section 143(1).the deputy commissioner was directed by the hon'ble high court ..... insertion of the proviso to section 43b can be derived from the speech of the finance minister at the time of introducing the finance bill of 1987 and or the explanatory notes issued in this regard. ..... in the explanatory notes to finance bill, 1987, 165 itr statute 125, it is provided as under: clause (x) seeks to amend section 43b of the income-tax act relating to allowability of certain expenses only ..... under section 43b, deduction otherwise allowable under the income-tax act in respect of: (a) any sum payable by the assessee by way of tax, duty, cess or fee by whatever name called under any law for the time being in force; or (b) any sum payable by the assessee as an employer by way ..... contended that where the provisions of; the act are unambiguous, there is no scope for going beyond the language ..... cit(a) ought to have directed the deletion of the so called prima facie adjustments in respect of the additions made under section 43b of the income-tax act.3. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1994)49ITD489(Delhi)
..... that the transaction is completed as and when the floor area was actually allotted.further it will not be out of place to mention here that a sub- clause (iii) was inserted in section 27 by the finance act, 1987 w.e.f.1-4-1988 which provided that the purpose of sections 22 to 26 : a member of a co-operative society, company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of ..... sub- clause (iii) of section 27, was inserted by the finance act, 1987 w.e.f.1-4-1988 which provided that the purpose of sections 22 to 26 : a member of a co-operative society, company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of ..... was the rightful owner of the flat and the assessment under the head "income from house property", by applying the provisions of section 27(l)(iii) of the act.he also observed that, the bombay high court had held that there was no legislative infirmity in section 27(iii) of the ..... assessee, as a member of sncpl, which had constructed the building nirmal towers under a scheme exclusively for its shareholders and is therefore assessable under section 27(iii) of the act, could be independently arrived without resorting to the decision of the bombay high court in the case of the company. ..... till the assessment year 1987-88, the income from the flat was being assessed as returned under section 56 of the act, on the reasoning that, the flat was .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1994)49ITD590(Delhi)
..... section 44bb was inserted into the income-tax act by finance act, 1987, with retrospective effect from 1-4-1983 for purposes of computing the profits & gains ..... energy, activity is a broad word, applicable to physical or mental exertions or pursuits by a person or a group, and is often used to convey the idea of a number of separate simultaneous or successive operations"; and "activity [landlord & tenant act, 1954, sections 23(2)] was held to include the provision by the landlords of accommodation, furniture and staff for a separate body with whom they were planning to share the accommodation, activity carried on by a body of persons has the ..... of section 5 defines the scope of total income of a non-resident, and since, in the instant case, the assessee is a non-resident company, we reproduce the relevant provisions contained in that section below : subject to the provisions of this act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which (a) is received or is deemed to be received in india in such year by or on behalf of such person; ..... she submitted that, without the basic infrastructure, it was not possible for carrying out of any of the three activities.she filed a copy of the instruction 1767 dated july 1987, which is a guideline in the computation of income, issued by cbdt to all the commissioners of income-tax on the subject of taxability of foreign contractors engaged in the business of exploration .....
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