Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2007)110TTJ(Kol.)152
..... change and, therefore, the assessee-company fell within the definition of an "industrial company" because it processed cotton into cotton bales and was entitled to the concessional rate of tax within the meaning of sections 2(7)(c) and 2(8)(c) of the finance acts, 1973 and 1974, respectively.nu-look (p) ltd. v. ..... engaged in the manufacture or produce of an article or thing and/or no new article or thing emerged which are distinctive in character or identity and thereby disallowing the claim of the appellant under section 10b of the it act though it was demonstrated with evidence that the appellant was engaged in the business of ornamental fishes which was produced by them and new ornamental fishes with distinctive character and identity was produced. 2. ..... revenue has considered the processing of juvenile fishes into ornamental fishes not eligible for deduction under section 10b as such conversion of juvenile fishes into ornamental fishes could not be considered as manufacturing activity within the meaning of section 10b of the act, by relying on the order of supreme court in the case of venkateshwara hatcheries and ors ..... by the assessee for converting juvenile fishes into ornamental fishes tantamount to manufacturing of new articles or things and has relied on following decisions: (ii) andaman & nicober islands forest & plantations development (2005) 198 ctr (cal) 76 : (2006) 280 itr 118 (cal); (iii) cit v. ..... 1046/kol/2005 has held that the assessee company should be treated to .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1984)10ITD88(Kol.)
..... but, as we see, section 155(13) was inserted by the finance act, 1975, which took effect from 1-4-1975, but the previous year relevant to the assessment year under appeal ended on 31-3-1974. ..... it was, therefore, urged that on approval to the gratuity fund the provisions contained in section 155(13) became applicable and since the amount was not allowed in the original assessment rectification as provided in the said section could be made, provided the time limit of four years prescribed therein had not run out. ..... the ito negatived that claim of the assessee and on appeal the aac set aside the assessment on this point and directed the ito to reconsider the assessee's claim and allow deduction of the provision for gratuity after being satisfied that the conditions prescribed under section 40a(7)(b) of the income-tax act, 1961 ('the act') are fulfilled. ..... it was also submitted that the initial contribution to an approved gratuity fund was deductible from the total income under section 36(1)(v) of the act read with rule 104 of the income-tax rules, 1962 ('the rules'). ..... according to the ito, under section 154 the assessee can ask for rectification only of that part of the provision for gratuity which was wrongly claimed by the assessee at the time of assessment and disallowed by the ito.3. ..... that being the position, we are of the opinion that there was no patent mistake in the regular assessment which was sought to be rectified by the assessee by tiling an application under section 154. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1992)40ITD373(Kol.)
..... in arrears of finalisation of his accounts for the earlier assessment years and since the completion of the finalisation of the accounts for the years took considerable ..... ; (iii) it is only after the matters for the assessment years 1982-83 and 1983-84 were finalised that the matters for the subsequent assessment years 1984-85 and 1985-86 could be progressed leading to belated auditing of the accounts for the years relevant to the assessment year 1985-86.the main defence, therefore, of the assessee was that at the time when finance act, 1984 was passed bringing section 44ab on the statute book the assessee was already ..... time it was not possible for him to make compliance in time with the provisions of section 44ab nor within the time extended by the cbdt .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD230(Kol.)
..... though he expressly refers to section 45(3) of the act, that provision cannot be invoked since it was inserted only with effect from 1-4-1988, by the finance act, 1987. ..... it was on these facts that the cit came to the conclusion that the partners of the firm were liable to capital gains tax on the contribution of the land to the firm for the assessment year 1986-87 and further that the share of the partners in the alleged unaccounted monies received for the sale of the multi-storeyed building should be brought to tax in the same year.8. ..... we however find that there has been an assessment upon the firm in the assessment year 1986-87 under section 143(3) of the act on 27-5-1986 and in this assessment the alleged 'on money receipts' amounting to rs. ..... cit [1985] 156 itr 509/23 taxman 14w.regarding the applicability of section 45(2) or section 45(3) of the act it was submitted that the focus of these provisions was on the year of sale and not in the year of conversion which has to be necessarily earlier and the flats having been sold in the accounting year relevant to the assessment year 1986-87, the capital gains are rightly assessable in the assessment year under appeal. ..... the cit overruled the objections of the assessees and by orders passed under section 263 set aside the assessments in respect of both the assessees with direction to the ito to complete them afresh after making necessary enquiries and investigations.5. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)61ITD119Cal
..... it was introduced only by the finance act, 1983 and that too with effect from the assessment year 1984-85 only. ..... the object of inserting the words 'bona fide' in the section was to provide for exemption in respect of a real and genuine transaction and in the context the expression conveys the absence of intent to ..... ), it was held by the allahabad high court with reference to section 4(1)(c) that in order that the transaction is bona fide, it must be shown that everything was done in an open and straight-forward manner without subterfuge or concealment of any kind or without any attempt to make the transaction ..... the question for consideration before us is whether the provisions of section 4(1)(c) can be invoked to the facts of the case - the gift-tax authorities have taken the view that there is an abandonment of the debt which should be deemed to be a gift made by the assessee.extensive arguments were addressed ..... crore to gift-tax by invoking section 4(1)(c) of the gift-tax act, 1958.2. ..... considered such write off a gift within the meaning of section 4(1)(c) of the act. ..... gift-tax officer took the view that there was an abandonment of the debt which should be treated as deemed gift under section 4(1)(c) and brought the sum of rs. ..... pal on the basis of section 5(1)(xiv) that the gift having been made in the course of the business, is ..... whether clause (c) of sub-section (1) would be invoked only in cases where circumstances justify inference of collusion between person who makes discharge, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)61ITD196(Kol.)
..... is significant that section 2(24)(iia) was inserted with effect from 1-4-1973 simultaneously with the present section 12, both of which were introduced from the said date by the finance act, 1972. ..... view of this clear legal position, the assessing officer in the present appeals was wrong in treating the assessees as private religious trusts assessable under section 164 of the act. ..... as the income of shree ganeshji maharaj estate and shree shankar bhagwan estate respectively.the assessments were made taking the status of the assessee as private religious trusts, under section 164 of the income-tax act.5. ..... are two appeals challenging the assessments made on the assumption that the assessee are private religious trusts taxable under section 164 of the income-tax act.2. ..... the assessees appealed and contended that they should be assessed in the status of individual, that the provisions of section 2(24)(iia) did not authorise the assessment of the corpus gifts and further that it was not necessary for a valid religious endowment under the hindu law that the deities should have come into existence at the time of the ..... we, therefore, hold that the assessment of the corpus donations cannot be supported. ..... in the present cases the assessing officer on evidence has accepted the facts that all the donations have been received towards the corpus of the ..... the view taken by the assessing officer to the contrary cannot be accepted as it runs counter to the principle laid down in the authorities cited .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2008)115TTJ(Kol.)390
..... counsel for the assessee has thus argued that firstly the huge discrepancy in the estimations of the value of the constructed area as done by the dvo (at the stage of the assessment) and by the stamp duty valuation authority reflects the lack of reality in the matter of such estimations and secondly since both the authorities included the value of the constructed area ..... the assessment order passed under section 143(3) on 31st march, 2005, however, the consideration amount for the transfer was considered by applying the provisions of section 50c of the act, ..... the consideration received or accruing as a result of the transfer by the assessee of a capital asset, being land or building or both, is less than the value adopted or assessed by any authority of a state government (stamp valuation authority) for the purpose of payment of stamp duty in respect of such transfer, the value as adopted or assessed shall, for the purpose of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.4. ..... view of this factual position, it has finally been submitted that it would be gross injustice to the assessee if his case be considered to be subject to the provisions of the newly introduced section 50c and the amount of consideration actually received by him and as also considered by the departmental authority to be adequate, be substituted by a highly exaggerated figure adopted by the stamp duty ..... finance act, 2002 introduced a new section .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)18ITD151(Kol.)
..... 434) the legislation by inserting explanation to sub-section (2a) of section 37 by the finance act, 1983 with retrospective effect from 1-4-1976 made it clear that 'entertainment expenditure' includes expenditure on provision of hospitality of every kind by the assessee to any person, whether by way of provision of food or beverages or in any other ..... : "it is, therefore, clear to us that the dictionary meaning of the term 'entertainment' is to receive and treat with hospitality which broadly means receiving and entertaining strangers or guests in a friendly, generous and liberal way....these acts may consist of providing, inter alia, a formal or elegant meal, a banquet and being hospitable is providing for the wants of a guest in a liberal and generous manner". (p. ..... of the claim made by the assessee-company in the assessment year 1977-78 (previous year ending on 31-3-1977) under the head 'sales promotion' the ito ..... in view of restriction placed by sub-section (2a) of section 37 on allowability of the entire expenditure on entertainment, a simple plea that it was incurred wholly and exclusively for the purpose of the business cannot help ..... business expenditure under section 37 of the income-tax act, 1961 ('the act'). ..... the act is not merely concerned with 'entertainment' simpliciter.entertainment of any person unconnected with business has no relevance.in order that an expenditure-whether on entertainment or not-to be considered for its allowability, it should primarily be wholly and .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD160(Kol.)
..... the tribunal in the said order has brought out the settlement between the assessee and the department referred to above and then cancelled the ex parte assessment made against the assessee under section 144/147(a) and directed the ito to make fresh assessment in accordance with law after giving the assessee a reasonable opportunity for adducing of evidence in support of his case because the assessee's authorised representative and the ..... to be operative and it was open to the ito to take up the matter at the point at which the illegality supervened and to correct his proceedings the notice under section 28(1)(a) of the 1922 act having remained still to be disposed of, the proceedings started after the order passed by the aac could be described as during the course of the assessment proceedings, because the action would relate back to the time when the first notice was issued. ..... 000 made in the assessment of m/s greekay transport corporation for the year 1961-62 represents bogus loan in the name of m/s jain finance distributors (india) ..... two brothers, disclosed their investments in the shape of loans and pseudonyms appearing in the books of (i) m/s geekay corporation, (2) m/s auco finance corporation, (3) m/s allied finance corporation, and (4) m/s geekay transport corporations (as per rotation statement -marked annexure a). ..... thereupon the appellant approached financiers for financing the project and initiated negotiations with manufacturers for the purchase of machinery for .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (2005)93ITD177(Kol.)
..... 1997-98, whether the assessee can be said to be having principal business of granting loans and advances and not hit by explanation to section 73 of the it act merely because in the preceding assessment years the assessee was not dealing in shares but was having interest income from loans and advances and rental income from leasing." 2. ..... if in any particular year, the assessee has nominal business income and has substantial interest income, it does not imply that the assessee's principal business is of finance or granting of loans and advances.similarly, the assessee, the principal business of which is the granting of loans and advances, may earn a comparatively high income from other activities in any particular year and still the ..... since, its inception the company has been engaged in the business of financing by way of granting loans and advances and earning interest income therefrom. ..... during the financial year 1995-96, the assessee-company started a new line of financing business of leasing and also derived income by way of lease rentals. ..... if in any particular year, the manufacturing or trading company has nominal business income and has substantial interest income, it does not imply that the company's principal business is of finance or granting of loans. ..... if in any particular year, the manufacturing or trading company has nominal business income and has substantial interest income, it does not imply that the company's principal business is of finance or granting of loans. .....
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