Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD739(Mum.)
..... this is what was stated in the indian legislature while moving the indian income-tax (amendment) act, 1946 : the proposals follow generally (emphasis supplied by us) the provisions in the united kingdom finance act, 1944 ; it has been described by the chancellor of exchequer as a comprehensive attempt to relief from taxation altogether funds devoted by the industries to the support of fundamental research, the translation of laboratory research to production and to the full scale ..... since, however, the legislature intended not to allow wear and tear allowance, it expressly prohibited the allowance vide section 29(4) of the uk finance act, 1944 and section 93(1) and (2) of the capital allowances act, 1968.9.2 let us now examine the legislative intention in india. ..... concerned, they do not directly provide for allowance or non-allowance of depreciation on assets continuing to be used for scientific research in the year following the year in which the cost of it is allowed as deduction in full under section 35 and if we draw the inferences, both inferences are possible.to say the least, inference in support of either view is possible.therefore, following the below mentioned well-known principles of construction of statutes : 1. a provision for exemption or relief .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)7ITD666(Mum.)
..... the finance act, 1975, has amended the income-tax act retrospectively and under this amendment, deduction in respect of provision for gratuity payable to employees on retirement or termination of their employment is conditional upon the company creating an approved gratuity fund before 1st january, 1976. ..... the special bench also took into account the reason for introducing this section into the act, as stated by the finance minister while introducing the amendment in the parliament. ..... the case of the assessee was that the conditions laid down in section 40a(7) of the income-tax act, 1961 ('the act') for getting the deduction for the provision for liability applied only to a case where provision for such liability was made in the books of account and so, those conditions did not apply to a case where ..... the amendment superseded the general principle as regards the liability for gratuity and, therefore, after the 1st of april, 1973, the question of deductibility of a similar claim would have to be found within the four corners of section 36 and section 40a... (p. ..... then, the special bench referred to the word 'provision' appearing in section 40a(7) and considering the content in and the purpose for which it was inserted in the act, it came to the conclusion that its meaning was not confined only to the entries made in the books of account but extended to all claims for deduction of that expense in the course of assessment proceedings. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD718(Mum.)
..... further, the assessee-company cannot be said to have any accumulated profits in the very first year of its existence.there is a gap of about three months between the loan by the company to sameer finance corporation and the loan given by the latter to a concern belonging to the assessee and the amounts are also not identical. ..... he, however, stated that the case of the department was not that sameer finance corporation was a benami concern of the assessee, but that the said corporation was used as a mere intermediary to pass on the loan to the assessee ..... the loan given by the company to sameer finance corporation was in the ordinary course of its business and there was a gap of about three months between the date of loan received by sameer finance corporation and the date on which it gave loan of a different amount to the assessee in the ordinary course of its own business ..... he invoked the provisions of section 2(22)(e) of the income-tax act, 1961, and held the sum of rs ..... all that the, company did was to give the money indirectly through the conduit pipe of sameer finance corporation. ..... the ito held the view that the aforesaid private limited company ultimately gave a loan to the assessee indirectly through sameer finance corporation. ..... sameer finance corporation gave a loan of rs, 73,000 in two instalments on 14-9-1972, to bombay engineering industries ..... 000 to sameer finance corporation. ..... assessee was also a member of huf which had a proprietary concern styled as sameer finance corporation. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD633(Mum.)
..... [1964] 53 itr 100, he cited the following passage at page 105: to the present case the general rule of construction of fiscal acts would apply and not the exception engrafted on that rule: for section 4 of the amending act cannot be described as a provision laying down the machinery for the calculation of tax. ..... introduced with effect from 1-1-1976 which reads as follows : (1) notwithstanding anything contained in this act, where, in an assessment to be made under sub-section (3) of section 143, the income-tax officer proposes to make any variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed by the board under sub-section (6), the income-tax officer shall, in the first instance, forward a draft of the proposed ..... is quite another thing that the legislature, keeping in view the provisions of section 144b, made amendments in some other sections which might or might not affect certain rights.25. ..... is the consequence of the amendment to section 246 brought out in 1978. ..... submitted that the amendment to section 246 affects pending proceedings to which section 144b is applicable. ..... there the calcutta high court has pointed out that in respect of section 34 of the 1922 act which authorised the reopening of assessment, there was no question of any ..... (supra), it has been held that the limitations contained in section 34 of the 1922 act (corresponding to section 153 of the 1961 act) are all aspects of procedural law. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD774(Mum.)
..... he then referred to the peculiar terminology used in different sub-sections of section 64.starting from section 64(1)(i) where reference is made to a firm carrying on a business, he stated that section 64(1)(ii) refers merely to a concern and should be read in continuation of section 64(1x0 he argued that section 64(1)(ii) was but an appendix to section 64(1)(i) as what the act was trying to hit at was tax avoidance carried on through the stratagem of a firm carrying on a business as distinguished from a profession. ..... it may be that a raw chartered accountant or a lawyer may not fit into the proviso and the assessee may not escape the clutches of section 64(1)(ii) at least for the first few years of service of the spouse ; but then the proviso, as it stands in all its rigour, should not be watered down or rewritten so as to thwart the legislative intent and slur over legislative ..... joshi, the learned standing counsel for the department, traced the genesis of the legislative amendment resulting in the provisions of section 64(1)(ii) and strongly relied upon the wanchoo committee's recommendations extracted in the earlier part of this order. ..... 'mischief rule' enjoins upon us to so interpret the section as to suppress the mischief and advance the remedy after studying the reasons for the amendment as reflected in the wanchoo committee findings. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD652(Mum.)
..... deputy commercial tax officer [19651 16 stc 290 which was concerned with the provision of section 24(3) of the madras general sales tax act which the earlier bench found to be comparable in language and scheme with section 36 of the bombay sales-tax act. ..... 8,500 as business expenditure under section 36(1)(iii) or section 37 of the income-tax act, 1961 ('the act"). ..... sales tax is a trading liability and the payment of interest in respect thereof is of the nature of a financing charge allowable as business expenditure. ..... the same is, therefore, allowable as revenue expenditure under section 37 of the act.4. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD244(Mum.)
..... the mercantile system of accounts, as is said to be indicated by the provision therein to the effect that where an amount or part of any debt has been allowed as a deduction under section 36(1 )(vii) of the income-tax act, in computing the total income of the assessee for income-tax purposes, the amount has to be reduced by the deduction so allowed, that is to say, for a debt to come ..... in any case, this decision also was rendered under the provisions of the act before the amendment to section 7(2)(a) and the introduction of the rules prescribed thereunder when the provisions of the act contemplated adjustment of the values at the discretion of the wto as circumstances of the case may require and it cannot, therefore, be regarded as ..... the introduction of clause (xa) to section 5(1) by an amendment adverted to in the submissions made before us, it is noticed, stems not from the recognition of any theory of greater sensitivity or respect or regard for the learned professions but from the fact as stated in the memorandum explaining the provisions of the finance bill, 1976, by which the clause was introduced, that there was a representation ..... that the outstanding fees in the case of leading advocates and senior advocates who are briefed by junior advocates are not legally recoverable and as such cannot be regarded as "assets" for the purposes of the wealth-tax act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD213(Mum.)
..... with regard to the claim for exemption based on section 5(1)(vi), here also we think that the assessee is not totally correct as the contention fails to take note of the proviso to the clause inserted by the finance act, 1974, effective from 1-4-1975.according to this proviso, what is excludible in respect of the right or interest of the assessee in the policy of insurance before the moneys under the same become ..... in any event, it is argued on behalf of the assessee, even if the right to receive the annuity can be regarded as an asset, it is specifically exempted under section 5(1)(v/) of the act, according to which the right or interest of the assessee in any policy of interest before the money covered by the policies become due and payable to the assessee is not liable to ..... the assessee based on the definition of "asset" in section 2(e) of the act according to which the right to an annuity where the terms and conditions relating thereto preclude its commutation of any portion thereof into a lump sum is excluded from the definition for the years up to 1974-75 but not for subsequent years, as there was an amendment to this definition effective from the assessment year 1975-76 with ..... be included by the wto in the computation of net wealth by way of adjustments contemplated under rule 2c of the wealth-tax rules and whether even otherwise it is an asset required to be included as an asset under section 7(1) of the act and our finding is in favour of the contentions of the assessee. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD828(Mum.)
..... that case related to the effect of the amendment of section 23a of the indian income-tax act, 1922, by section 11 of the finance act, 1959, which received the assent of the president on 28-4-1959. ..... tribunal had also held that the expenses of the assessee relating to this item of income should be treated as 50 per cent and this was being allowed.but a new development took place in the form of introduction of section 44d of the income-tax act, 1961 ("the act"), by the finance act, 1976, with effect from 1-6-1976. ..... a glance at the finance act, 1976, will show that while some of the sections have been brought into force with effect from 1-4-1976 so that they may operate for the assessment year 1976-77, some sections have been brought into force with effect from 1-4-1977 so that they may operate for the assessment year 1977-78.but in the case of section 44d, it has been brought into force on 1-6-1976. ..... ruling is not applicable to the present case where apart from the fact that the section was brought into force on a particular day, there was nothing in the body of the section which would indicate that the provision was to operate from any particular date.it was, therefore, argued that the section which was introduced into the act on 1-6-1976 was clearly on the statute book on the first day of the assessment year, namely .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)2ITD195(Mum.)
..... briefly, the reasons which prevailed upon the commissioner (appeals) were as under : firstly, he accepted the argument on behalf of the assessee that under the companies (temporary restrictions on dividends) act, 1974, the assessee was not permitted to declare dividends in excess of one-third of the profits, whereas under section 104, the assessee was expected to declare 45 per cent of the profits. ..... though rendered in the context of the 1922 act, the relevant section thereof is section 23a, which is in part materia with section 104, which we are called upon to interpret. ..... we are mainly concerned with the circumstances laid down in section 104(2)(i), because the assessee has merely rested its case on this provision for refraining from the declaration of dividends for the accounting period under consideration.as stated earlier, in the first place, the restrictions laid down by the companies (temporary restrictions on dividends) act, 1974, did not permit the assessee to distribute more than 33 per cent of profits. ..... further, it was stated that under the amendment to the companies act, 1974, there were some restrictions placed on the declaration of dividends. ..... a view to build up sufficient reserves to be utilised for such developmental activity, it was not possible to assume that the declaration of a lesser dividend was for the reason that the board of directors or the general body required finance for the developmental activity. .....
Tag this Judgment!