Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1985)13ITD800(Delhi)
..... by the finance act, 1973, with effect from 1-4-1974 (in relation to the assessment year 1974-75 and subsequent years), this section was amended to enlarge the scope of 'short-term' capital gains by providing that gains arising from the transfer of any capital asset held by the taxpayer for not more than 60 ..... be reduced by the amount of the capital gain.the section grants exemption in respect of capital gain arising from the transfer of a house property provided two conditions are satisfied, namely, (i) the house property must have been used by the assessee or a parent ..... as the case may be, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45 ; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall ..... then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,-- (i) if the amount of capital gain is greater than the cost of the new asset, the difference between the amount of the capital gain and the cost of the new asset ..... 1977 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1985)14ITD450(Delhi)
..... government or a local authority or any indian concern ; (a) any sum which during the previous year is transferred by it to a reserve fund under sub-section (1) of section 17 of the banking companies act, 1949 (10 of 1949), or is deposited by it with the reserve bank of india under sub-clause (ii) of clause (b) of sub-section (2) of section 11 of that act ; not exceeding the amount required under the aforesaid provisions to be so transferred or deposited, as the case may be, or (b) any sum transferred by it ..... -tax whereon is payable by the state government ; (vii) an amount equal to fifty per cent of the sum with reference to which a deduction is allowable to the company under the provisions of section 80g of the income-tax act ; (viii) income by way of dividends from an indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends within india ; (ix) income by way of ..... the exclusion was in the following terms : (i) any income chargeable under the income-tax act under the head 'capital gains' ; (ii) any compensation or other payment as is referred to in clause (ii) of section 28 of the income-tax act; (iv) any income referred to in sub-section (2) of section 41 of the income-tax act; (v) [omitted by the finance (no. ..... our attention has been drawn to the fact that for the purpose of surtax, there was an amendment in the computation of chargeable profits by adding an explanation to rule 1 of the first schedule. ..... reserves in 1977. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)19ITD855(Delhi)
..... the word 'belonging to' has been considered the content of clause (") of sub-section (1) of section 33 of the estate duty act, 1953 and it has been held by their lordships of the calcutta high court in the case of ced v. ..... the assessee claimed exemption under section 5(1)(iv) of the wealth-tax act, 1957 ('the act') in respect of the aforesaid flat. ..... the department's grievance against the grant of exemption under section 5(1)(/v) to the assessee does not appear to us to have any merit. ..... these are cross-appeals in respect of the assessment year 1977-78.in the assessee's appeal the question is with regard to the valuation of flat no. ..... , the builder is not in a position to dislodge him due to the operation of section 53a of the transfer of property act, 1908. ..... it can, therefore, be said in his case that the flat belongs to the assessee, and, this being so, the assessee would be eligible for exemption under section 5(1)(iv). ..... the wto rejected the assessee's claim by observing that the assessee did not own the flat, and, therefore, he was not eligible for exemption under section 5(1)(iv). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1985)14ITD506(Delhi)
..... now since the definition of 'industrial company' in the finance act, is so different from the language in section 32a the meaning given to the expression 'manufacture or processing of goods' cannot be applied to the manufacture or production of any article or thing used in section 32a.this is the basic difference between that decision which has not been noticed by the authorities below and which has been pointed out by the learned chartered accountant shri pradip ..... the decision given by the kerala high court on the language used in section 2(6)(w) of the finance act. ..... the definition of industrial company as given in the finance act, should first be noticed to understand this controversy and this is as under : (d) '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 ..... assessment year 1968-69 it claimed to be an industrial company as the term is defined in the finance act, 1968. ..... the raw materials into finished products, namely, food-stuffs did amount to carrying on of an activity of manufacture and, therefore, the assessee was an industrial company within the meaning of definition of 'industrial company' as given in the finance act. ..... in this appeal centred round the claim made by the assessee for the allowance of investment allowance under section 32a of the income-tax act, 1961 ('the act') on the new plant and machinery installed by the assessee. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)15ITD480(Delhi)
..... order to enable the charitable trusts to change the form of the capital assets held by them and to hold investments which do not disqualify the charitable trust under the provisions of the act, executive instructions had been issued prior to the insertion of sub-section (1a) of section 11 that where the capital gain is utilised in acquiring a new capital asset for the purposes of the trust it would be considered to be in application of the income for the ..... are utilised to acquire some other capital assets which are again transferred and the proceeds are held in cash by the charitable trust, it cannot be held that the conditions of section 11(1a) are satisfied.on this issue, therefore, we hold that the aac erred in giving the finding about the capital gains of rs. ..... plea of the assessee that mere purchase of shares in five different companies should be taken as sufficient compliance with the provisions of section 11(1a) and the fact that new shares were also sold shortly could not make any difference.14. ..... book which has been relied upon by the aac also felt that the interpretation given by him could not follow unless an amendment was made in law for this purpose. ..... as is equal to the amount, if any, by which the appropriate fraction of the amount utilised for acquiring the new asset exceeds the appropriate fraction of the cost of the transferred asset.this section was inserted by the finance (no. ..... is directed against the order of the aac and relates to the assessment year 1977-78. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1985)14ITD366(Delhi)
..... these were : (a) for levy of a lower rate of tax provided for an industrial company under the provisions of section 2(9)(c) of the finance act, 1976 ; while considering these separate claims, the full bench took note of the distinctive statutory provisions applicable in respect of the three claims. ..... find out whether the company was mainly engaged in the activity of manufacturing or processing of goods and only after ascertaining those facts he must come to the conclusion whether the definition of 'industrial company' as given in the finance act was satisfied or not.since no such enquiry was made in this case in his considered view, the ito erred in allowing the investment allowance and the commissioner was justified in setting aside those assessments. ..... of the case law dealing with their claims arising under the separate statutory provisions proceeded to record its finding on each of the three claims as follows : as far as claim for a lower rate of tax under the finance act, 1976 was concerned, the full bench held that the assessee-company having the activity of carrying out of civil construction works like tunnel, power houses, etc. ..... as far as the claim for grant of investment allowance is concerned, the full bench noted the amendment in section 32a with effect from the assessment year 1978-79 and then held as follows : for this year (assessment year 1978-79) it was provided that an assessee would be entitled to investment allowance if machinery was used in an industrial .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)16ITD486(Delhi)
..... other receipts was granted under section 80g of the act up to 31-3-1977 by the said commissioner vide ..... board of trustees, consisting of besides, its chairman, two directors of the board and the executive director of the ifci as ex-officio member and two persons nominated by the board of ifci to represent industry, finance, banking and technical institutions, bodies of undertakings, two persons nominated by the said board to represent all india financial institutions and one representative nominated by the chairman of ifci on behalf of kreditanstalt fur wiederaufbau of ..... , inter alia, (i) loans from the ifci, with or without interest, out of the benevolent reserve fund established under section 32b of the industrial finance corporation act, 1948; (ii) loans and grants made available by the ifci out of interest differential funds arising out of lines of credit ..... promoting industrial projects by giving necessary guidance and financial assistance to enable them to subscribe to promoters' equity of projects eligible for financial assistance from the industrial finance corporation of india and other financial institutions and bodies corporate on such terms and conditions as may be decided upon by the foundation from time to time. ..... against the above background the learned commissioner inferred that the foundation was established to provide help, aid, finance and organise the advancement and promotion of industry, trade and commerce, and such object was to be achieved by providing guidance .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)18ITD285(Delhi)
..... co.was a benami of the assessee-firm, that against the order of the tribunal not even a reference application was filed by the assessee even though an application was filed under section 256(2) before the delhi high court, that the entire facts showed that the assessee has adopted a device with much deliberations for the purpose of diverting profits which genuinely belonged to ..... imposing penalty at the rate of 110 per cent also shows that the revenue wanted to impose penalty under the substantive provision of section 271(1)(c), in which case discretion of imposing penalty between 100 per cent to 200 per cent depending on the facts and circumstances of ..... prove concealment.i like to observe and emphasise that where the revenue frames a charge of concealment against a taxpayer, then in addition to penalty, the taxpayer may be prosecuted under section 276 of the act, which course certainly would not be open if the assessee is penalised under the fiction of the explanation ..... to him, are independent of each other : (i) that the penalty levied being more than minimum it could not be sustained and supported with the help of the explanation to section 271(1)(c) and, therefore, the levy was invalid per se ; (ii) that the penalty was levied on the charge of concealment of various additions totalling rs. ..... were aware of the business transactions, the fact that entire finance was provided by the assessee-firm coupled with the fact that the profit-sharing ratio of the three groups is same .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)18ITD490(Delhi)
..... urged was that the expenditure incurred on expansion of an existing plant was to be regarded as capital expenditure and should not have been regarded as revenue expenditure by importing into it the theory that for the purpose of grant of section 80j of the income-tax act, 1961 ('the act'), relief expansion of existing business was judicially noticed as amounting to establishment of new industrial undertaking and on the same analogy the expansion should also be considered as a new undertaking. ..... in respect of any proceedings before any income-tax authority or the appellate tribunal or any court relating to the determination of any liability under this act, by way of tax, penalty or interest : provided that no deduction under this section shall, in any case, exceed in the aggregate five thousand rupees.for this section to apply the amount must have been paid in respect of any proceeding before any income-tax authority or the tribunal or any court and ..... the commissioner (appeals) pointed out that the persons who undertook the tour to kenya to discuss with the finance minister, the government of kenya and other high officials was only in connection with the supply of machinery or the supply of know-how. ..... cit [1977] 108 itr 358 that the expenditure incurred by the company on the wife of its loyal employees to enable her to accompany him on foreign tour in order that the tour of the employee was successful could only be ..... 15.43 lakhs in 1977 and about rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (1986)18ITD201(Delhi)
..... on the ground that this amount was in the nature of capital gains arising on sale of national defence gold bonds and as such, exempt from tax under section 2(14) of the act.however, the ito held that the conditions for exemption are not fulfilled because, 'the assessee purchased these bonds with business motive'. ..... and its resale were allied to his usual trade or business or incidental to it; the nature and the quality of the commodity purchased and resold; any act subsequent to the purchase to improve the quality of the commodity purchased and thereby make it more readily resaleable; any act prior to the purchase showing a design or purpose, the incidence associated with the purchase and resale, the similarity of the transaction to operations usually associated with ..... the first ground relates to weighted deduction under section 35b of the income-tax act, 1961 ('the act') but this ground was not pressed for determination on merits at the time of ..... sub-clause (iv) was inserted by the taxation laws (amendment) act, 1962 with effect from 13-12-1962. ..... defence gold bonds are excluded from the definition of capital asset by sub-clause (iv) of clause (14) of section 2. ..... section 2(14) provides legal authority for its chargeability on the transfer of a ..... resultant profit, as such, was not taxable as capital gains because national defence gold bonds issued by the central government did not fall within the definition of 'capital assets' given in section 2(14). ..... cit [1977] 107 itr 716 (all), cit .....
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