Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)92TTJ(Ahd.)645
1. In the above mentioned cases, the Hon'ble President of Tribunal has referred the following question for the consideration of Special Bench : "Whether penalty can be levied Under Section 271(1)(c) in cases where the assessed income is loss having regard to the amendment made by the Taxation Laws (Amendment) Act, 1975, and by the Finance Act, 2002 ?" 2. The facts which are common in all the cases are that all the assessees have furnished the return disclosing "loss" and what was finally assessed was also "loss" and the assessment years pertaining were after the amendment by Taxation Laws (Amendment) Act, 1975, and before the amendment made by Finance Act, 2002. Several counsels appeared on behalf of the assessees.3. Shri K.H. Kaji, senior advocate appeared in the case of Apsara Processors vide ITA No. 284/Ahd/2004 and Khedkar Brothers Trading Co.(P) Ltd. vide ITA No. 251/Ahd/2002. He argued at length. His arguments can be summarised as under : That Section 271(1)(c) provides for levy...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1985)14ITD27(Ahd.)
1. The common issue in all these appeals relates to the valuation of properties. Taking the first and second appeals, the WTO valued a bunglow called 'Shalimar' situated in Shahi Baug, Ahmedabad, for wealth-tax purposes at Rs. 15,48,600 and Rs. 10,90,000 as against the value offered for assessment by the assessee of Rs. 3,95,260 and Rs. 2,72,700, respectively. For the assessment years 1972-73 to 1974-75, the same issue came up on appeal before the Commissioner who accepted the assessee's contention that the provisions of Section 7(4) of the Wealth-tax Act, 1957 ('the Act') would be applicable to all the assessment years including those even prior to the assessment year 1976-77. He also held that the value to be adopted for the assessment purposes is the market value of the property as arrived at for the assessment year 1971-72. In disposing of the above appeals, he followed a decision of his for the earlier years. He, accordingly, directed the WTO to adopt the value of the property at...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1991)38ITD138(Ahd.)
1. These three appeals were heard together with the consent of the parties and arc being decided by this common order. There are three asscssees before us. All of them follow mercantile system of accounting.2. The common point in these three appeals relates to interpretation of provisions of Section 43B of the Income-tax Act, 1961 as amended by the Finance Act, 1987 and the Finance Act, 1989.3. In ITA No. 229/Ahd/1988 the assessee is firm of M/s. Chandulal Venichand carrying on business in tea leaves on wholesale basis. The assessee firm filed return of total income Rs. 41,210 for assessment year 1984-85. The Income-tax Officer noticed that sales-tax liability of Rs. 4,18,302 was outstanding in the books of the assessee.The assessee explained that it was selling tea on commission basis and was collecting sales-tax from the parties to whom the tea was sold. The assessee maintained a separate sales-tax account. The sales-tax collected from the parties was credited and sales-tax paid to ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2002)81ITD482(Ahd.)
1. This appeal filed by the assesses is directed against the order of the CIT(A) dt. 10th Feb., 2000 for asst. yr. 1993-94.2. The main ground involved is against the addition of Rs. 1,02,97,689 on account of short-term capital gain on the sale of business undertaking of the assessee as a going concern.3. The assessee-firm was engaged in the business of manufacture of components for pharmaceuticals equipments upto 31st Dec., 1992 and w.e.f. 1st Jan., 1993 it sold the entire business undertaking as a going concern, lock stock and barrel, at a slump price of Rs. 1.25.crores to Shah & Parikh Agency (P) Ltd. as per agreement dt. 31st Dec., 1992 entered into by the assessee-firm with the said company. Clause (1) of the agreement dt. 31st Dec., 1992 reads as under: "1. The vendor shall sell and purchaser shall purchase the entire business undertaking of the vendor under the name Industrial Machinery Associates as a going concern including leasehold land, buildings, plants and machinery, ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
1. These appeals have been filed by the Revenue for the asst. yrs.1988-89 and 1989-90. The main business of the assessee-company is production of films. In the process of development of printing of films chemicals are used, out of which flakes and dust are accumulated, which contain silver. After processing and cleaning the flakes and dust pure silver is accumulated by the company which has been sold in the market.The value of the silver sold in the market has been shown by the assessee as income from business in its income-tax assessments. While computing the wealth-tax assessments the Assessing Officer (AO) included the value of the silver in the net wealth of the assessee for the two assessment years. The assessee appealed to the CWT(A) against the said order passed by the AO. According to the assessee, the silver collected from the dust and flakes is not asset within the meaning of s. 40 of the Finance Act, 1983, so that it can be included in the net wealth of the assessee. The CW...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2006)6SOT375(Ahd.)
These two appeals by two assessees are against the orders of assessing officer passed under section 158BD read with section 158BC of the Income Tax Act, 1961 for the block period 1-4-1985 to 31-3-1995 and 1-4-1995 to 12-12-1995. For the sake of convenience, they are being disposed of by this common order. The only dispute canvassed at the time of hearing was that the income for the assessment year 1995-96 has already been disclosed by the assessees in the regular returns and therefore, could not be subjected to assessment under section 15813D, read with section 158BC of the Income Tax Act, 1961.The facts are that search and seizure operation was carried out at the residential premises of the assessee, the business premises of Electrotherm (1) Ltd. and residence of various persons connected with Electrotherm (1) Ltd. group on 12-12-1995 which was concluded on 14-12-1995. From the papers seized from the residence of Shri Shailesh Bhandari, Shri Pukhraj Shah and the factory premises of E...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1995)55ITD53(Ahd.)
Per Shri B. L. Chhibber, (Accountant Member) - The following identical grounds have been raised in these two appeals by the revenue : (1) The learned CIT (A) has erred in law and on facts in holding that the incomplete structure is not a building and, therefore, not chargeable to wealth-tax in the hands of the assessee who is closely-held company.(2) The learned CIT (A) has erred in law and on facts in holding that the market value of incomplete structure on the valuation date was the value as per audited balance sheet of the assessee.(3) The learned CIT (Appeals) has erred in law and on facts in holding that the land under incomplete structure is no longer a plot of land and it cannot be subjected to assessment in the hands of closely-held company.(4) The learned CIT (Appeals) has erred in law and on facts in holding that the basis of adopting value of incomplete structure is wrong.(5) The learned CIT (Appeals) has erred in law and on facts in holding that several Factors will direct...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
(ii) deleting the addition of Rs. 23,33,154 made on account of delayed payment of various funds.2. The learned Departmental Representative relied upon the reasons mentioned in the assessment order. As regards ground No. (ii), the learned Departmental Representative also placed reliance on the judgment of the Hon'ble Kerala High Court in the case of Kerala State Financial Enterprises Ltd. v. CIT 3. The learned counsel supported the order of the CIT(A). As regards ground No. (i) raised by the Revenue, the learned counsel submitted that the disallowance under Section 40A(3) was made by the AO in respect of payment made to truck drivers towards payment for transportation of goods. The details of such cash payments exceeding Rs. 10,000 were annexed with the tax audit report, copy thereof has been placed at pp. 2 to 7 of the compilation. He drew our attention to Circular No. 220, dt. 31st May, 1977, to support his contention that such cash payments were made under exceptional and unavoidabl...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2002)76TTJ(Ahd.)652
(ii) deleting the addition of Rs. 23,33,154 made on account of delayed payment of various funds.The learned Departmental Representative relied upon the reasons mentioned in the assessment order. As regards ground No. (ii), the learned Departmental Representative also placed reliance on the judgment of the Hon'ble Kerala High Court in the case of Kerala State Financial Enterprises Ltd. v. CIT The learned counsel supported the order of the Commissioner (Appeals).As regards ground No. (i) raised by the revenue, the learned counsel submitted that the disallowance under section 40A(3) was made by the assessing officer in respect of payment made to truck drivers towards payment for transportation of goods. The details of such cash payments exceeding Rs. 10,000 were annexed with the tax audit report, copy thereof has been placed at pp. 2 to 7 of the compilation. He drew our attention to Circular No. 220, dated 31-5-1977, to support his contention that such cash payments were made under excep...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2006)98ITD119(Ahd.)
1. These two appeals have been filed by the assessee against the consolidated order of the CIT(A) dated 11-1-1995 for assessment year 1990-91 whereby part relief has been allowed in the quantum appeal and adjustment made under Section 143(1)(a) has been upheld. Since both the appeals relating to the same assessment year have been heard together, these are being disposed of by a single order.2. First we take up ITA No. 698/Ahd./1995 relating to upholding of adjustment made by the Assessing Officer under Section 143(1)(a). The assessee filed a return of income on 20-12-1990 showing total income of Rs. 3,52,306. The Assessing Officer, while processing the return under Section 143(1)(a) made an addition of Rs. 1,30,815 on account of bad debts debited to P&L Account and corresponding credit made to bad debt reserve account. The Assessing Officer also charged additional tax under Section 143(1A). The assessee filed an application under Section 154 which has been rejected by the Assessin...
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