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 ..... whether the assessee was an 'industrial company' within the meaning of section 2(6)(c) of the finance (no.2) act, 1971 and the finance act, 1972. ..... buildings, claimed that it should be charged at the concessional rate of tax of 55 per cent instead of 65 per cent on the ground that it was an industrial company as defined in section 2(6) (c) of the finance (no.2) act, 1971 and the finance act, 1972. ..... industrial undertaking for the purpose of business of construction, manufacture or production of any article or thing, not being an article or thing 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 and used mainly for the purposes of business of construction, manufacture or production of any article or thing, ..... the amendment made in 1983, the definition of industrial company has been changed to include 'execution of project' as one of the activities and project includes construction works as well as assembly or installation of any machinery or plant.thus, this activity as such has come to be included in the definition only after this amendment. .....
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. ..... the further plea was that the amendment that was made by the finance act, 1988 was with a view to remove certain unintended hardships caused by the enactment made by finance act, 1983. ..... 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 ..... the lawmaker in their amendment made by finance act, 1988 has stated that 'the unintended hardship was noted with reference to the assets that are held as stock-in-trade'. ..... 40 of the finance act, 1983 is a complete act in itself with substantive and procedural provisions.amendment to the substantive provisions like sub-s. (3) of s. ..... this was clearly an indication that the amendment was effective from the date of the enactment by finance act, 1983.6. ..... he considered the plea of the appellant company that amendment that was made by the finance act to sub-cl. (3) of s. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD576(Mad.)
..... exemption was claimed on the ground that the cinema theatre building was a plant not chargeable to tax under section 40(3)(ut) of the finance act, 1983.alternatively, it was contended that the 1988 amendment which exempts theatre building from wealth-tax should be given retrospective effect.31. ..... (iii) the 1988 amendment to section 40(3) of the finance act, 1983 is not retroactive, but prospective in operation with effect from ..... cinema 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. ..... now, 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 ..... two cases were centred on the provisions of not only the old section 40(3)(vi) but also the substituted section 40(3)(vi) of the finance act, 1983. ..... the commissioner passed an order in revision holding that the theatre building could not be categorised in any of the exempted categories mentioned in section 40(3)(vi) of the finance act, 1983. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)48ITD191(Mad.)
..... 342, dated 30-6-1982 that this was with a view to encouraging house construction.sub-section (4) introduced by finance act, 1987 by which it was provided that the unutilised funds should be deposited in a specified bank account. ..... this is in contrast with section 54e where originally any investment of the proceeds in specified assets were exempt under the section as enacted by finance act, 1978. ..... 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 ..... that section had been inserted by the finance act, 1982 with a view to encouraging house construction. ..... after 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. ..... with a view to dispense with such rectifications of assessments, the amendments made to sections 54, 54b, 54d and 54f provide for a new scheme for deposit of amounts meant for reinvestment in the new asset. .....
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 ..... (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 ..... 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. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1989)29ITD29(Mad.)
..... section 87 of the finance act of 1988 has introduced several amendments in section 40 of the finance act of 1983.sub-section (ii)(c) of section 87 of the finance act of 1988 has substituted the following three clauses for the existing clause (vi) ..... departmental representative opposed these contentions urged on behalf of the appellant and argued that the provisions contained in section 40 of the finance act of 1983 as quoted by the commissioner were clear and unambiguous and therefore there was no need for us to look into either the budget speech of the finance minister while introducing the finance bill for 1983 or into the memorandum explaining the provisions of the finance bill of 1988 proposing the amendment to section 40 of the finance act of 1983. ..... 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 the net ..... the learned chartered accountant submitted that 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 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2006)100ITD199(Chennai)
..... task assigned to this special bench is to point out whether the amendment in proviso to section 43b by finance act, 2003 could be construed to be curative as such retrospective in nature ..... under section 255(3) of the income-tax act, 1961 (hereinafter called as "the act") the hon'ble president of the income-tax appellate tribunal (hereinafter called "the tribunal") has constituted this special bench to consider the following question: whether amendment in proviso to section 43b by finance act, 2003 could be construed to be curative, as such retrospective in nature? ..... object that was accomplished by the amendment was to give effect to the true intention behind the introduction of the section.that amendment is, therefore, required to be regarded as retrospective qua the amendment incorporated by the finance act, 1987.32. ..... before the tribunal was whether deduction can be allowed in respect of the said payment in view of amendment in proviso to section 43b by the finance act, 2003 by holding the same as retrospective.3. ..... by section 21 of the finance act, 2003 following amendments were incorporated in section 43b of the act: (b) in the first proviso, the words, brackets and letters 'referred to in clause (c) or clause (d) or clause (e) or clause (f)' have been ..... section 43b of the act was further amended by the finance act, 1987.two provisos were ..... on parity of reasoning the proviso which is now amended by the finance act, 2003 can also be treated as retrospective qua the payment of tax .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2000)242ITR55(Mad.)
..... " there is amendment brought in explanation b by the finance act, 1986.the following words in brackets were inserted by finance act, 1986 :- "(and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him)".the above words which were introduced by the finance act, 1986 were taken to be part of explanation 1(b) even by finance act, 1983 by the learned accountant member, as can be seen from the ..... 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 income-tax ..... were made 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. .....
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 company entitled ..... the 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 during the ..... 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 non- .....
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 may at once be stated that by an amendment introduced by the finance act, 1988 machinery installed for the purpose of repairs to ocean going vessels were also made eligible for investment allowance. .....
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