Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2004)88ITD620Agra
..... "credit institution" inserted by the finance act, 1991 w.e.f. ..... assessment order for the assessment year 1998-99, wherein the assessing officer has given the finding that the closing stock shown in the balance sheet is running stock in the amounts financed to the hirers, which clearly indicates that the stock is a capital stock and not the revenue stock and the same has not been disclosed in the trading and profit and ..... the finance charges accruing or arising to hire purchases finance company are in the nature of interest as defined in section 2(7) of the interest-tax act, and, therefore, chargeable to interest-tax act.13 ..... to be in the nature of finance transaction, then interest on such financing transactions shall be chargeable to interest-tax act.15. ..... acting under these instructions, the assessing officers have been treating all the hire-purchase transactions as mere financing transactions without distinguishing between a true hire-purchase transaction and a financing ..... transactions entered into by the hire-purchase companies and other credit institutions are generally in the nature of financing transactions and hence the hire chargers earned in the transactions would be in the nature of interest chargeable to tax under the interest-tax act, 1974. ..... finance charges relating to the so called hire purchase transactions are, in fact, interest on loans and advances and the same have been rightly held to be chargeable under the interest-tax act ..... 1991 in section 2(5b)(i) of the act .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2004)83TTJAgra809
..... referred to the amended definition of "credit institution" inserted by the finance act, 1991 w.e.f. ..... dated 25th march 1996, and clarified that the finance charges accruing or arising to hire purchases finance company are in the nature of interest as defined in section 2(7) of the interest tax act, and, therefore, chargeable to interest-tax act.13 ..... on examination of relevant material, the transaction is found to be in the nature of finance transaction, then interest on such financing transactions shall be chargeable to interest-tax act.15 ..... . acting under these instructions, the assessing officers have been treating all the hire-purchase transactions as mere financing transactions without distinguishing between a true hire-purchase transaction and a financing transaction in the form of a hire-purchase transaction ..... dated 25.3.1996, it was stated that hire purchase transactions entered into by the hire-purchase companies and other credit institutions are generally in the nature of financing transactions and hence the hire chargers earned in the transactions would be in the nature of interest chargeable to tax under the interest-tax-act, 1974 ..... for the assessee have been dealt with by the cit (a)-ii in detail in his impugned order and are found not applicable in the instant case.according to her, the finance charges relating to the so called hire purchase transactions are, in fact, interest on loans and advances and the same have been rightly held to be chargeable under the interest tax act.11 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2003)81TTJAgra751
..... of section 80hhc(4b), which says as under (inserted by finance act, 1999, w.e.f. ..... that the tribunal was justified in directing the ao to treat the interest income from fixed deposits as eligible profits of the business while computing the deduction under section 80hhc and section 80-i of the it act, 1961, the special leave petition, filed before the hon'ble supreme court by the department was also dismissed, [(2000) 244 itr (st) 54).13. ..... the ao further mentioned in his order that the clarification issued by the board was in the context of section 194a of the it act, 1961, which will not be applicable to the certificate of deposits, as the amount is only discount and not interest serves only a limited purpose and has a definite meaning and these provisions are machinery ..... of appeal is that the cit(a) has erred in law and on fact in directing the ao to recompute the deduction under section 80hhc of the it act, 1961, allowing the claim of deduction in respect of discount received from the bank on certificate of deposit.3. ..... been raised as to whether difference between the issue price and face value of certificate of deposits should be treated as interest and in which case, it would be liable to deduction of tax at source under section 194a of the it act, 1961, or it should be treated as "discount", which is not liable to deduction of tax at source. ..... itr 371 (bom) has held as under : "explanation (baa) to section 80hhc of the it act, 1961, was inserted by the finance (no. ..... act, 1991, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2008)116TTJAgra951
..... further, it is also relevant to note that by the same finance act, 1990, clause (iiib) was inserted into section 28 and changes were also made in section 80hhc(3). ..... therefore, section 80hhc as it stood at the relevant time was required to be r/w section 28(iiib) because both the sections have been amended by the same finance act of 1990.4. ..... it indicates that the parliament as well as cbdt have taken into account the insertion of clause (iiib) in section 28 by the finance act, 1990. ..... as a result, in view of the settled position of law and in view of the provisions of the act, we cannot allow the appeals of the revenue. ..... 1991-92. ..... incentive has accrued to the assessee during course of carrying on the business of export, therefore, the learned cit(a) was justified in including unrealized portion of the export incentive for granting deduction under section 80hhc of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2004)87TTJAgra482
..... order of commissioner (appeals).having considered the facts and circumstances of the case and the orders of the revenue authorities, i am of the opinion that proceedings under section 147 of the income tax act for assessment years 1989-90 and 1990-91 were initiated only on the basis of suspicion which the assessing officer entertained in view of the figure of loan from the bank and closing stock shown by ..... for this purpose with effect from this year only an amendment to section 43b has been inserted by finance aqt, 1988 which says as under : '(d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution or a state financial corporation or state industrial investment corporation ..... mere suspicion or necessity of making inquiry cannot make the assessing officer to have reasons to believe as required under section 147 of income tax act and the proceedings initiated only on the basis of suspicion cannot be sustained.so far as the present cases are concerned, it is revealed that the reassessment proceedings under section 147 were initiated only ..... , the assessee in addition to challenging the order of commissioner (appeals) on merits, has challenged the initiation of proceedings under section 147 of income tax act.with regard to merits, the assessee in all these three appeals has objected to the disallowance of assessee's claim of interest payable to the bank as well as the up finance corporation ltd. ..... in the year 1991-92 claimed as bank .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2003)84ITD391Agra
..... authorities has not by that time taken over in possession by the department and without requisition, notice under section 158bc is premature and illegal in view of provisions of section 158bc of the act, which says : "where any search has been conducted under section 132 or books of account, other documents of assets are requisitioned under section 132a, in the case of any person, then,-- (i)............. ..... finance act, 1995 inserted a new chapter xiv-b in the ..... the legality of notice issued, determination of block period and undisclosed income, we have gone through the provisions of chapter xiv-b of the it act, 1961 which is containing special procedure for assessment of a search initiated under section 132 or books of account, other documents or any ..... . from the above, it is seen that common order was passed for action under sections 132 and 132a of the it act by issuing single notice under section 158bc of the it act for filing return for the undisclosed income claimed to have been detected during course of search under section 132 at the premises of the assessee and bank lockers ..... . we noted during course of hearing that department during course of search under section 132 of the it act at the premises of the assessee could not get any evidence in form of entry in books of account or other documents or transaction about speculation business carried out by ..... the words "execution" and "requisition" while calculating the period of limitation in section 158be of the it act, the finance (no .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2004)87TTJAgra488
..... according to our view, unless it is held that the instructions in question have been issued by the cbdt in exercise of its power conferred under section 119 of the act, the same cannot be said to be statutory in nature and would be an administrative instruction for the guidance of the it authorities and as such would have no force of law.be that as it may be, we ..... tractors, kachahari chauraha, jhansi (supra) in, great detail and it has been held that since the instruction in question has not been issued in exercise of power conferred on cbdt under section 119 of the act, the same cannot, be held to be statutory in nature but is merely the administrative instruction for the guidelines of the it authorities, hence, the same could not be enforced through court of law.thus, ..... this appeal of the revenue is directed against the order dated 12-7-1995, passed by commissioner (appeals)-ii, agra, for assessment year 1991-92.during the course of hearing the learned counsel for the assessee at the outset has taken a preliminary objection for maintainability of the appeal filed by the revenue ..... in question issued by cbdt would show that they were issued under section 119 of the act.he has further mentioned that the reliance made upon the decision in the case of kerala finance corporation v. ..... 1991 ..... in (1991) 189 itr 391 (bom), it has been held that no reference application to be made in view of the policy decision of the cbdt not to file reference .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2006)99TTJAgra212
..... that the transaction in question was neither loan nor deposit because the amount having been received from the trustee, was receipt to oneself, there was no reason for levy of penalty under section 271d of the act and that the default, if any, was of technical and venial nature, we, in absence of any decision, contrary to the decision relied upon by the counsel for the assessee, such as the decision of tribunal, jaipur bench, ..... . we are convinced with the learned assessee's counsel's arguments that the finance act, 1984, states the legislative intent and describes a situation where explanation of taxpayer of loans obtained from "various ..... were processed under section 143(1)(a) of the act on 21st march, 1991 and 23rd sept. ..... the next one on 31st july, 1991, is for the purchase of land where ..... special range, trichur, processed the return under section 143(1)(a) on 21st march, 1991, without pointing out any shortfalls. ..... is not disputed that the assessee is carrying the production of films and the film was released in 1989 and 1991, as the date given by the ao. ..... 1991-92, the film was released on 21st april, 1991 and the ao treated the said date as completion date and thus the date for filing form ..... 1990-91 and 1991-92 disclosing a loss of ..... and 21st april, 1991, respectively. ..... to 30 of the paper book for financial year 1991-92. ..... 1991 ..... 1991 ..... was due on 21st april, 1991. ..... and the second one released on 22nd march, 1991. ..... and another feature film named 'arangu' which was released on 22nd march, 1991. ..... 1991, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2004)82TTJAgra689
..... we have carefully considered the rival contentions and we noted that by finance act, 2002, sub-clause (b) of clause (c) of sub-section (1) of section 158 bb has been inserted with retrospective effect from 1st july, 1995, according to which if the return has not been filed for the reason ..... amendment in sub-clause (b) of clause (c) of sub-section (1) of section 158 bb by finance act, 2002 w.e.f. ..... to the ao, the income has not been computed in accordance with the provisions of section 158bb of the it act for the reason that the assessee has claimed estimated expenses mentioned above, which are not reflected in the seized documents ..... learned counsel for the assessee has argued that as per the provisions of section 158bb of the it act, 1961, there is no scope for estimating the income incurred on household expenditure. ..... 1986-87, 1989-90, 1990-91 and 1991-92, which was assessed in his ..... the course of assessment proceedings for the block period, notice under section 158bc(a) of the it act was issued to the appellant on 6th nov. ..... should have been allowed as according to him under the provisions is of it act, the gross profit cannot be taxed. ..... yr.1991-92 at ..... 158bb(1), the undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed in accordance with chapter iv containing in section 28 to section 43 of the it act, 1961. ..... course of search, statement of the appellant was recorded under section 132(4) of the it act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Agra
Reported in : (2005)94ITD345Agra
..... other hand, speaks of proof of primary evidence and according to these provisions, to establish the proof of document by considering the same as primary evidence, the documents must be proved except in the case mentioned in other provisions of the act.9.6 so far as section 65 is concerned, it prescribes the circumstances under which the existence of a document, can be established by way of secondary evidence -when it cannot be proved by way of primary evidence.10.1 so far as the present case is concerned, the ..... record at the time of examination of the records by the cit(a), we are of the opinion that the revenue has right to establish the existence of the same byway of secondary evidence as provided under section 61 to 65 of the indian evidence act and if we consider the various eventualities specified under section 65(supra), we are of the opinion that only sub-clause, which can come to the rescue of the revenue, should be the sub-clause (c) of section 65, which speaks ..... fact that: that during the course of hearing on 6.3.2002 the question of validity of service of notice was argued at length, your honour have also perused the records & file of assessment proceedings under section 148 of the act and in the records no such authorization/power of attorney was seen/ found by your honour or by the ao however, if the claim of the assessee as mentioned in this letter is contrary in relation to the facts, the same shall be ..... the decision in the case of commercial motor finance ltd. v. .....
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