Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1989)31ITD338(Mad.)
..... even assuming that the word 'industrial undertaking' which we come across in section 32a(2), is to be understood in the same manner in which an industrial company under the finance act, 1983 should be understood, the assessee fulfils the requirements of such 'industrial company' and the finding of the income-tax officer that the assessee is not an 'industrial undertaking' cannot be upheld. ..... specified in the list in the eleventh schedule.sub-section (2a) of section 32a is as follows: "the deduction under sub-section (1) shall not be denied in respect of any machinery or plant installed ..... the learned counsel contended that either the case of the assessee falls under section 32a(2) or 32a(2a) the assessee should be granted investment allowance.under section 32a(2) the assessee should fulfil the requirements of sub-section (b)(iii) which is as follows: "(b) any new machinery or plant installed after the 31st day of march, 1976, (iii) in any other industrial undertaking for the purpose of business of construction, manufacture or production of any article or thing, not being an article or thing .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2000)73ITD180(Chennai)
..... the plea as raised in this appeal is that the said section that was amended by the finance act, 1988 had extended the exemption to the buildings that are owned by the company and used by it for the residence of its employees without any restriction to the salary that are paid to such employees, is to be applied ..... we accordingly reproduce the said section as it was enacted, followed by the amendment that was made by the finance act, 1988. ..... 13 of the finance act, 1960 [13 of 1960], relating to exemption of companies from levy of wealth-tax under the wt act, 1957 (27 of 1957) (hereinafter referred to as the wt act), wealth-tax shall be charged under the wt act for every assessment year commencing on and from 1st april, 1984, in respect of the net wealth on the corresponding valuation date of every company, not being a company in which public are substantially interested, at the rate of ..... this sub-clause was amended by the finance act, 1988 and it read, "the building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as a residential accommodation for its ..... a proviso which is inserted to remedy unintended consequences and to make the provisions workable, a proviso which supplies an obvious omission in the section and is required to be read into the section to give the section a reasonable interpretation, requires to be treated as retrospective in operation'. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD576(Mad.)
..... the finance act, 1988 inserted, with effect from 1-4-1989, the following proviso to section 40(3) of the act : provided that this section shall not apply to any asset referred to in clause (i), u(ii), (iii), (iv), (v) or (vi), which is held by the assessee as stock-in-trade in a business carried on by it or, in the case of motor-cars referred to in clause (vii), they are held as stock-in-trade in such business or registered as taxis and used as such in a business of running motor-cars on hire carried on by the assessee.having been inserted into the ..... theatre being actually a source of the assessee's income was a plant both for income-tax and wealth-tax purposes.secondly, the finance act, 1988 substituted a new clause (vi) for the existing clause (vi) in section 40(3), so as to extend the benefit of the exemption from wealth-tax to cinema houses also. ..... according to the tribunal : ...the provisions of the finance act, 1988 led one to presume that a cinema house was intended to be included in the list of assets exempt from wealth-tax even from the inception because the connotation of substituted' was that new clause should be taken to have been incorporated in place of the old clause from the ..... the tribunal had held: ...that a cinema house was intended to be included in the list of assets exempt from wealth-tax even from inception because the connotation of 'substituted' is that new clause shall be taken to have been incorporated in place of the old clause from the very inception. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)48ITD191(Mad.)
..... that section had been inserted by the finance act, 1982 with a view to encouraging house ..... however, the finance act, 1987 introduced sub-section (4) to say that the amount of net consideration which is not utilised for the construction of a new asset before the date of filing the return shall be deposited in a specified bank account and if it remains unutilised for the period of three years it shall be chargeable to tax as ..... the aforementioned amendments, where the amount of capital gains or the net consideration, as the case may be, is not appropriated or utilised by the tax-payer for acquisition of the new asset before the date for furnishing the return of income, it shall be deposited by him on or before the due date of furnishing the return of income, under section 139(1) in an account with a bank or institution and utilised in accordance with a scheme framed by the central government in this regard. ..... this scheme will be applicable in relation to the new section 54g also.this itself shows that the purpose of the deposit was to see that the amount is actually utilised and not for depriving the assessee of the use of ..... under the existing provisions of sections 54, 54b, 54d and 54f, long-term capital gains arising from the transfer of any immovable property used for residence, land used for agricultural purppses, compulsory acquisition of lands and buildings and other capital assets are exempt from income-tax if such gains are reinvested in new assets within the time allowed for .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1997)60ITD267(Mad.)
..... the assessee appealed to the commissioner (appeals) against the said order passed by the assessing officer.according to the assessee, the silver collected from the dust and flakes is not asset within the meaning of section 40 of the finance act, 1983 so that it can be included in the net wealth of the assessee.the commissioner (appeals) by the impugned order held that the silver is a by-product in the process of development and printing of films.therefore, it is a manufactured ..... further submitted that accordingly the silver should be considered as stock-in-trade, which has been sold by the assessee in the market and section 40 of the finance act, 1983 specifically excluded the stock-in-trade from the purview of the net wealth by inserting the proviso. ..... (supra), the tribunal held that although the cinema house was included within the exempted assets under section 40(3)(vi) of the finance act, 1983 with effect from 1-4-1989 by the finance act, 1988, for the earlier assessment years also the exemption will be applicable if it is found that the theatre building was being used exclusively by the assessee for the purpose ..... the commissioner (appeals) held that since silver was a product of the assessee-company, it cannot be termed as an asset for the purpose of section 40(3) of the finance act, 1983.therefore, from the facts of this case we find that the assessee-company accumulated puts silver out of dust and flakes by further processing and in turn the silver is being sold out in the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1989)29ITD29(Mad.)
..... this amendment, which is brought into force with effect from 1-4-1989 is indicative of the true intention of the parliament while enacting the original provisions contained in section 40 of the finance act of 1983.he particularly relied on paragraph 54 of the memorandum explaining provisions in finance bill of 1988 which clearly states that the said amendment was proposed to remove unintended hardships and provide incentive for growth and modernisation. ..... asset in the computation of the net wealth of the appellant-company for the purpose of levy of wealth-tax under section 40 of the finance act, 1983 for these three years, that there was nothing erroneous or prejudicial to the interests of revenue which called for interference under section 25(2) of the wealth-tax act by the commissioner and that therefore the orders of the commissioner should be cancelled and the assessments made by the wto ..... from a perusal of the aforesaid provision of law, it would be noticed that levy of wealth-tax on companies which were originally exempted by section 13 of the finance act, 1960 is re-introduced into the statute book to a limited extent in respect of the net wealth of certain category of companies known as closely-held companies and in which ..... shri bhatt further relied on the latest amendment brought about in section 40 of the finance act of 1983 by the provisions of section 87 of the finance act of 1988, whereby a cinema house is expressly excluded from the category of assets includible in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2006)100ITD199(Chennai)
..... (supra) hon'ble supreme court treated the first proviso to section 43b as inserted by the finance act, 1987 as retrospective in operation for and from assessment year 1984-85. ..... to curb this practice, the finance act, 1983 has inserted section 43b to provide that deduction for any sum payable by the assessee by way of tax or duty under any law for the time being in force or any sum payable by the assessee as an employer by way of contribution to provident ..... the first proviso, which was inserted by the finance act, 1987 is 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. ..... where a deduction in respect of any sum referred to in clause (f) of this section is allowed in computing the income, "referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of april, 2001, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2000)242ITR55(Mad.)
..... 1976.this new explanation i applicable to the assessee's case now before the tribunal, is totally different from the nature and content of the explanation inserted by finance act, 1964, ..... that the provisions relating to penalty proceedings are quasi-criminal in nature and, therefore, the burden is large on the revenue to establish the charge before imposing penalty under section 271(1)(c), more so, when the explanation to that section has not been invoked the provisions of section 69a are enabling provisions for making certain additions if the assessee fails to give an explanation or the explanation given by the assessee is not to the satisfaction of the ..... in the assessment proceedings, and that the assessee had accepted the same, it was held that the penalty could not be imposed since the assessing officer failed to invoke the provisions of explanation to section 271(1)(c) and further that the burden was on the revenue to prove concealment of income besides that the additions made in the assessment would not automatically entitle the revenue to impose penalty.6.5. ..... the assessee has urged that a perusal of the penalty order clearly shows that no reference has been made to the explanation to section 271(1)(c) in it.that apart, even the notice issued under section 274, read with section 271(1)(c) of the act does not also specify, as urged by the assessee, the charge on the part of the assessee before us as it was printed notes wherein tick marks have been simply made, both against the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2003)84ITD459(Chennai)
..... the point for consideration is whether during the previous year the assessee qualified as an industrial company entitled to concessional rate of tax as provided in section 2(8)(c) of the finance act, 1976.according to the facts arising in this case, the assessee was previously carrying on the business of manufacture of rubber products.when there was the business the assessee was admittedly an industrial ..... contention of the learned departmental representative that in order to claim the reduced rate of tax under section 2(8)(c) of the finance act, the assessee should be mainly engaged in the manufacture or processing of goods during the previous year ..... 1,18,539 was deemed as profit of the business only for the purpose of section 41(2) and that legal fiction cannot be extended further; that was the main contention of the learned departmental representative.shri babu also drew our attention to the definition of industrial company appearing in section 2(8)(c) of the finance act, 1976, and submitted that for qualifying as an industrial company the assessee should be mainly engaged in the business of manufacture or processing of goods ..... aside the assessments with the direction to adopt the correct rate of tax as per section 2(8)(c) of the finance act, 1976 after giving the assessee a fresh opportunity of being heard.the ao then passed revised assessment orders levying tax at the rate of 65 per cent (with surcharge at 5 per cent) as applicable to a ..... liquidator, new era ..... liquidator, new era .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1990)34ITD77(Mad.)
..... coming to the treatment of the assessee as an industrial undertaking within the meaning of the finance act, we find that the definition of an industrial company is as follows:- (c) '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.the explanation to this section states that a company shall be deemed to be mainly engaged in the business of manufacture or processing of goods if the income attributable to such ..... a comparison of the wording of this section with those sections 80j and 80hh as well as the definition of 'industrial company' in the finance act shows that this section 32a does not incorporate the defintion of a factory as in 80j or provide for the bifurcation of the industrial undertaking in the case of a captive unit where the business of the assessee is a composite business. ..... consequently, the assessee has filed these three appeals claiming that it is entitled to investment allowance under section 32 a, deduction under section 80j and concessional rate of tax under the provisions of the finance act.5. ..... it is also stated that it is the 5th year for the deduction under section 80j which meant that in the initial year itself it has been accepted that a new industrial undertaking had been established under that section were satisfied. .....
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