Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)8ITD922(Mad.)
..... (assessment).2. the only ground in this appeal is that in view of the challenge by other assessees to the amendment of section 80j and section 35 of the income-tax act, 1961 ('the act'), vide the finance (no. 2) act, 1980, with retrospective effect by way of filing writs in the supreme court, whether the amendment is to be followed or not ..... recompute the capital base after the decision of the supreme court or the madras high court regarding the validity of the retrospective amendment to section 80j and section 35, as amended by section 17 of the finance (no 2) act, 1980.3. normally, there should not have been a difference of opinion in such a case, because it is the convention ..... 's order states that the ground in this appeal, i.e., whether, in view of the challenge by other assessees to the amendment of section 80j and section 35 by the finance (no. 2) act, 1980, with retrospective effect by way of filing writs in the supreme court the amendment is to be followed or not, was there before .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)9ITD690(Mad.)
..... parties. at the hearing, reference was made to the provisions of explanation 2 inserted with retrospective effect from 1-4-1976 by the finance act," 1983, according to which for the purpose of section 37(2a), 'entertainment expenditure' would include expenditure on hospitality of every kind, including provision of food or beverages to any person, ..... recomputation of the profit after the decision of the supreme court or the madras high court, regarding the retrospectivity of the amended section 80j [as amended by section 17 of the finance (no. 2) act, 1980] becomes available 2. the point of difference was very clearly worded and the difference of opinion between my learned ..... recomputation of the profit after the decision of the supreme court or the madras high court, regarding the retrospectivity of the amended section 80j [as amended by section 17 of the finance (no. 2) act, 1980] becomes available 1. owing to difference of opinion between my learned brothers on the point set out below, the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)8ITD917(Mad.)
..... the capital base after the decision of the supreme court or the madras high court regarding the validity of the retrospective amendment to section 80j, as amended by section 17 of the finance (no. 2) act, 1980.3. identical point of difference of opinion has come before me in the case of sankareswari process, sivakasi v. ito ..... for recomputation of the profit after the decision of the supreme court or the madras high court, regarding the retrospectivity of the amended section 80j (as amended by section 17 of the finance (no. 2) act, 1980) becomes available ?" 2. the point of difference was very clearly worded and the difference of opinion between my learned brothers ..... recompu-tation of the profit after the decision of the supreme court or the madras high court regarding the retrospectivity of the amended section 80j (as amended by section 17 of the finance (no. 2) act, 1980) becomes available ?" 1. owing to difference of opinion between my learned brothers on the point set out below, the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)10ITD703(Mad.)
..... excess of rs. 50, no disallowance was made under section 37(3) read with rule 6b. section 37(3a) was introduced by the finance act, 1978, with effect from 1-4-1979 and it states that notwithstanding anything contained in sub-section (1) but without prejudice to the provisions of sub-section (2b) or sub-section (3), where the aggregate expenditure on advertisement exceeds rs ..... that the rights of the assessee have been preserved and that what is allowed as a deduction under sub-section (3) could not be disallowed under sub-section (3a).reference was made to paragraph 25 in the memorandum explaining the provisions in the finance bill, 1978-[1978] 111 itr (st.) 158-reproduced below : the existing provisions will continue to apply ..... 1. these appeals are directed against the disallowance made under section 37(3a) of the income-tax act, 1961 ('the act').2. the assessee is a registered firm. in the previous year ended 31-3-1979 relevant to the assessment year 1979-80, the assessee had incurred a .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1984)10ITD754(Mad.)
..... stray cases failure to credit the interest to the account of the payee cannot also be called a method of accounting regularly employed within the meaning of section 145(1) of the act and would not, therefore, be accepted as an explanation for the consequential failure to deduct the tax at source. the burden of proving that there ..... , dated 25-1-1979, or the circular, dated 22rl2-1980, governs the present case. on this question, the tribunal has given a specific finding in the case of sivakami finance (p.) ltd. (supra), that the circular letter, dated 25-1-1979, applies to the assessment year under consideration, i.e., the assessment year 1980-81 (relevant to ..... but there was no such evidence in the present case and hence there was no justification for not deducting the tax under section 194a. he, accordingly, declined to follow the decision of the tribunal in the case of sivakami finance (p.) ltd. (supra). according to him, therefore, the appeal of the assessee deserved to be dismissed.4.3 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1985)11ITD298(Mad.)
..... the year under appeal, the assessee would virtually lose the interest paid or payable during the year. in this connection, reference is made to the explanation to section 24 inserted by the finance act, 1983, with effect from 1-4-1984. the explanation runs as under: explanation: where the property has been acquired or constructed with borrowed capital, the ..... scheme of our taxing statute, is an annual tax on, ordinarily, annual income from different sources, subject to certain exceptions. definition of 'previous year' in section 3 of the act will show that normally the twelve months period included in the financial year or for which the accounts are made up is the period, the income of which ..... relatable to the period from the date of completion of the property to the last day of the previous year alone can be allowed under section 24 of the income-tax act, 1961 ('the act'). since there were other decisions of the tribunal such as in it appeal no. 2381 of 1977-78, dated 20-3-1978, where the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1985)11ITD125(Mad.)
..... for recomputation of the profit after the decision of the supreme court or the madras high court, regarding the retrospectivity of the amended section 80j [as amended by section 17 of the finance (no. 2) act, 1980] becomes available 2. in the course of the assessment proceedings for the assessment year 1978-79, the contention of the assessee ..... for recomputation of the profit after the decision of the supreme court or the madras high court, regarding the retrospectivity of the amended section 80j [as amended by section 17 of the finance (no. 2) act, 1980], becomes available? 1.- there being difference of opinion between the learned judicial member and the learned accountant member, the following ..... 1973-74.5. in the case of k.n. oil industries (supra), the madhya pradesh high court held as under: after the amendment of section 80j by the finance (no. 2) act, 1980, with retrospective effect from 1 -4-72, borrowed monies and debts owed by an assessee are to be excluded in computing the capital .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1985)11ITD141(Mad.)
..... no doubt left that if the claim of the assessee is to be allowed, then it is manifestly an evasion of tax and violation of mandatory provisions of the act, sections 194a and 201(1a), respectively. he further contends that the impugned order is to be confirmed.6. we have heard the rival contentions and gone through the ..... interest was actually paid to the creditors, as stated by the learned judicial member. he was of the view that the tribunal had clearly held in the case of sivakami finance (p.) ltd. (supra), after discussing the circulars in question, that when the interest was credited to the 'interest payable account, and not to the 'payee's account ..... the date on which such tax is actually paid. 8. the appellant tried to argue that out of the four creditors, the assessment on two creditors, viz., sivakami finance (p.) ltd. and pudukottai corporation (p.) ltd., resulted in nil demand as their ultimate total incomes were below the taxable limit according to the assessment made by the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1985)12ITD652(Mad.)
..... from the firm for the services rendered by him to it, was not includible in its income. later on, however, the ito reopened the assessments under section 147(b) of the act. in the reassessment proceedings, the ito observed that there was no material to prove that shri c.d. chidambaram had rendered any special services apart from the ..... kind, instead of contribution in money. hence, all the aforesaid payments are non-deductible.the above extract shows that a partner is bound to not only find necessary finance for the partnership for which compensation is given by way of interest, he is also bound to render services to the firm as he is the co-owner of ..... no portion be exempted by giving the same away to a partner as his salary, bonus, commission, remuneration or interest. a partner is bound to find the necessary finances for the partnership and hence any interest on capital supplied by the partner is not deductible. a partner rendering services to the firm stands on the same footing as .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1985)13ITD619(Mad.)
..... and a factory building or a godown could not be considered as a house as they constituted separate category of assets other than house. even the amendment to section 5(1)(iv) made by the finance (no. 2) act, 1971 with effect from 1-4-1972 could not cover the property such as godown for the purpose of exemption under ..... definition of the word 'property' is the same as given in the 1953 act. however, only in section 5(1) of the 1957 act specific exemption is provided under clause (iv) to one house or part of a house belonging to the assessee. the finance (no. 2) act, extended the scope of exemption by altogether excluding the disputed requirement about the house ..... section 5(1)(iv). consequently, he dismissed the appeals filed by the assessee. , 3. before us the learned representative of the assessee reiterated the grounds taken by the assessee. .....
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