Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1998)65ITD214(Kol.)
..... first assessable, where such assessment year is an assessment year commencing on or before the 1st day of april, 1967; (ii) three years from the end of the assessment year in which the income was first assessable, where such assessment year is the assessment year commencing on the 1st day of april, 1968; (iii) two years from the end of the assessment year in which the income was first assessable, where such assessment year is an assessment year commencing on or after the 1st day of april, 1969; or [substituted by finance act ..... and as there was no express provision to initiate proceedings under section 271(1)(c) within the normal time and the limitation of 8 years as prescribed in section 153(1)(b) was available to the assessing officer, the assessment was not barred by limitation.no doubt it is case covered by the provisions of section 271(1)(c), as it is evident from last para of page 2 of the assessment order and from last but one para of the assessment order, wherein the assessing officer has very clearly recorded that the penalty for ..... , in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed : (4)(a) any person who has not furnished a return within the time allowed to him under sub-section (1) or sub-section (2) may before the assessment is made, furnish the return for any previous year at any time before the end of the period specified in clause (b), and the provisions of clause (iii) of the proviso to sub .....
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 : (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)60ITD640(Kol.)
..... in the assessments to wealth-tax, the wto was of the view that the assessee was the owner of the building constructed on the roof of the premises and was, accordingly, assessable to wealth-tax under section 40 of the finance act, 1983. ..... the assessee in these appeals is a closely-held company liable to wealth-tax under section 40 of the finance act, 1983. ..... it is not disputed that the memorandum of agreement for lease was not registered.as per section 107 of the transfer of property act, a lease of immovable property from year to year or for any term exceeding one year can be made only by a registered instruments. ..... thirdly, the agreement was for lease for a period of 30 years and any lease of immovable property for a term exceeding one year can be made only by a registered document as per section 107 of the transfer of property act and the document in question admittedly not having been registered, was invalid as a lease. ..... when for these reasons the lease itself was void, the assessee's occupation of the same was at best only as a monthly tenant under section 106 of the transfer of property act, liable for eviction by 15 days' notice. ..... act, the condition for assessability under the wealth-tax, namely, ownership of the property, as expounded in the judgment of the supreme court in the case of (late) nawab sir mir osman ali khan (supra) cited on behalf of the assessee, stands satisfied. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1997)60ITD348(Kol.)
..... so as to be taxable and not the incomplete portions of the buildings or for that matter the building in progress.accordingly, we hold that the portion shown by the assessee as building in progress is not a taxable asset within s. 40(3)(vi) of the finance act, 1983, and so the impugned order of the learned cit(a) (sic) in upholding the assessment order of the wto in bringing the said building in progress to wealth-tax is not legally tenable.9 ..... he has contended that the object of bringing the company to wealth-tax under the finance act, 1983, was to defeat the avoidance of personal wealth-tax by forming closely-held companies to which the tax avoider assessees transferred their unproductive assets but in this case the assessee's assets are not ..... 40(3) of the finance act, 1983, it is "building" which is a ..... 40(3) of the finance act, 1983, to the let out portion of the property which is the business assets of the ..... 6 and further elaborated for the purposes of computation in following sections of the it act, 1922, are intended merely to indicate the classes of income and that the heads do not exhaustively delimit sources from which income ..... and elaborated in the following sections do not exhaustively define sources for the purpose of computation of total income and the break up thereby indicated should not be income and the break-up thereby indicated should not be regarded as rigidly delimiting the source of income under different heads for the purpose of other provisions of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD303(Kol.)
..... in the assessment made under section 143(3) on 30-3-1990, the ito assessed the total income @ 55%, which was the rate applicable in the case of an industrial company as defined in the relevant finance act.on 16-7-1991, the assessment was amended under section 154 of the act and in this order, after a some what elaborate discussion, the ito held that the assessee cannot be treated as an industrial company. ..... but it is contended that the interpretation placed on the provisions of the relevant finance act by the tribunal for the assessment year 1981-82 is in respectful conformity with the interpretation placed on the provisions by the kerala high court and andhra pradesh high court in the decisions cited supra and, therefore, in the interest of judicial discipline and ..... in the assessment year 1981-82, a controversy arose as to whether the assessee should be treated as an industrial company within the meaning of the relevant finance act, so that it would be assessed at a lesser rate of tax compared to a trading company. ..... for that purpose, he has placed reliance upon the explanation to the clause (c) of section 2(7) of the finance act, 1981 which is reproduced above. 4. ..... the correct rate of tax in this case for the assessment year 1986-87 should be 60 per cent instead of 50 per cent originally charged by the assessing officer and also subsequently charged by him in terms of his orders under section 154 of the it act dated 17-12-1991. 5. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD145(Kol.)
..... extent of the deposit is very much in order inasmuch as the assessee has been allotted the flat during the relevant accounting year which is the basic condition to be fulfilled.however, for the purpose of exemption under section 4(7) of the act, he contended that the pre-condition in that property should be owned by the assessee and in the present case the possession of the flat having been given only on 2-5-1991, i.e. ..... the learned departmental representative has contended before us that the order of the cit (appeals) is factually and legally not sustainable inasmuch as the first appellate authority has overlooked the fact that the assessing officer has already granted exemption under section 5(1)(xxx) of the act and thus the deposit to pioneer co-operative housing society ltd. ..... , where such deposits have been made under such scheme;" on going through the above provisions, we find that the wordings used in both the provisions are similar inasmuch as for the purpose of exemption under section 5(1)(xxx), the assessee should deposit with a co-operative housing society as a member of the said society and a building or part thereof should be allotted to the said assessee under a house building scheme ..... 72 dated 6-1-1972 (volume 8, income-tax law by chaturvedi & pithisaria, 4th edition, page 145 at page 147), the reason for introduction of section 4(7) as well as section 5(1)(xxx) by the finance (no. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD150(Kol.)
..... in our humble opinion, the provisions contained in explanation 1 to section 2(m) of the wt act which have been introduced by the amendment by the finance act, 1987, no doubt embrace the principle of beneficial ownership by way of deemed ownership as contained in section 27(iiia), (iiib), section 269ua (f)(i) of the it act but there having not been any such amendment in section 40 of the finance act, 1983, the said principle of beneficial ownership can hardly be applied in the matter in hand. ..... cwt (a) has held the assessee assessable for the said property for the assessment year 1988-89 on the analogy of the principle of equitable ownership or beneficial ownership as contained in section 53a of the t. p. ..... 61 to 64 in his paper book and he has specifically referred to para 3 of the said assessment order in which at page 62 of the paper book it is clearly observed that the assessee is still now under occupation of the said property by virtue of lease deed dated 20-7-1983. ..... has supported the cwt (appeal)'s order regarding the above four assessment years and has argued that no sale deed having been executed nor registered in favour of the lessee/assessee-company by the lessor/vendor the assessee-company has not legally become the owner of the ..... cwt (a) allowed the assessee's appeal for the assessment years 1984-85 to 1987-88 holding the assessee-company as not assessable to wealth-tax in respect of the property in question but the ld. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)59ITD220(Kol.)
..... radha devi poddar (1990) 185 itr 544, 554 (cal) (if there is any doubt about the meaning of the phrase "regular assessment" or if two equally good interpretations are possible, then the interpretation which is favourable to the assessee must be preferred). ..... . 74 inserted by the finance act, 1972, w.e.f ..... although business loss has been allowed to be carried forward by the ito the business loss cannot be automatically carried forward and absorbed in the case of the partners, firstly because there is no such scheme or provisions in the act and secondly, carry forward of business loss was wrongly allowed by the ito in the case of the firm.our answer to question no. ..... there are two distinct sections dealing with these two items. ..... . where the language of a section is plain, it is not open to the court to adopt a liberal construction ..... . the acceptance of the claim of the assessee to carry forward and set off the unabsorbed loss of previous years would do violence to the language of the section ..... 74a shall entitle a registered firm to have its loss carried forward or set off under the provisions of the aforesaid sections. ..... (3) of 74a shall entitle any assessee, being a registered firm, to have its loss carried forward and set off under the provisions of the aforesaid sections. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1996)58ITD273(Kol.)
..... has further submitted that the assessee is carrying on business of leasing and in the course of its regular business activities the motor cars are leased on hire and hence the proviso to section 40 (3) of the finance act, 1983 is applicable.he therefore submitted that the motor cars which were owned by the assessee and used as stock-in-trade in the business of leasing carried on by the assessee, is not ..... the ld.counsel for the assessee contended before us that by the finance act, 1988 proviso to section 40 (3) of the finance act, 1983 was inserted by which the motor cars held by a company as stock-in-trade in its business or registered as tax is and used as such in a business in running motor cars on hire carried on by the company ..... by the same spirit and intendment, the legislature has inserted proviso to section 40 (3) of the finance act, 1983 with effect from 1-4-1989 whereby motor cars used in a business of running motor cars on ..... in fact, the intendment of the legislature in enacting section 40 of the finance act, 1983 as can be discerned from the budget speech of the then finance minister is that some persons have been trying to avoid personal wealth-tax liability by forming closely-held companies to which they transfer many items of their wealth and with a view ..... the assessing officer completed the assessments under section 16 ..... appellate authority confirmed the assessment order by holding that ..... we therefore direct the assessing officer to exclude the value of motor cars from .....
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