Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1994)49ITD73(Pune.)
..... the amendment effected by the finance act, 1980, has done away with the deeming provisions whereby a trust, under section 164(1), could be assessed as though it were an ..... santimoyee bose's case (supra) was a direct authority for the proposition that the representative assessee to whom the provision of section 41(1) of the income-tax act, 1922 applied, were liable to be assessed in the status of aop because of a deeming provision contained therein in spite of the fact that they could not be said to have formed an association or combined together to earn ..... the income is received is indeterminate, then such income can be taxed as if it was an income of an association of persons even though, in fact, they are not an association of persons...under the proviso to section 41 of the income-tax act, 1922, even though the assessees did not associate or join in any endeavor or any purpose to produce the income, they would be deemed to be an association of persons.7. ..... the learned counsel for the assessees shri sathe urged before us that under the income-tax act, the assessment on the representative assessees should be in the like mariner and to the same extent as would have been leviable ..... the high court observed that before the amendment in 1980, the provisions of the income-tax act, 1961, created a fiction whereby, in the case of a discretionary trust, the exigible tax was the tax payable by an association of persons or at the rate of 65%, whichever course would be more beneficial .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)49ITD190(Mad.)
..... of the assessee's counsel was that if the guaranteed sums received by the assessee were to be brought to charge, then the assessee should be given the benefit of deduction under section 36(1)(vii) of the act, even though the majority of the bad debts covered by the guaranteed sums received by the assessee were not written off in its books of account. ..... secondly, to that extent, the assessee cannot claim deduction under section 36(1)(vii) read with section 36(2) of the act, even when on a later date it writes off the amount in its books of account with the previous approval ..... scheme was designed to inject into the assessee's business funds necessary to carry on its activities.consequently, the funds thus injected could not be treated as the assessee's income.in relation to the financing activities of the assessee, the interest received by it is income that is chargeable to tax. ..... its share capital, the major source of its finance is refinance from the industrial development bank of ..... corporation was established for the specific purpose of financing and developing industries in the union territory of ..... given the fact situation, the financing activities of the assessee are risk-prone in that bad and doubtful debts occur to a larger extent than would normally ..... the first was to provide finance as and by way of term and other loans ..... the re financing/guarantee schemes are designed to prevent the aforesaid eventuality, by providing necessary finance from time to time so that the assessee could .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)49ITD617(Hyd.)
..... (i) if any tax or interest is found due an intimation shall be sent to the assessee specifying the sum so payable and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this act shall apply accordingly; and** ** ** clause (b) of sub-section (1a) is also relevant and as far as it is relevant for our purpose reads as follows : (1a) where as a result of the adjustments made under the first proviso to clause (a) of sub-section (1) (ii) the ..... is pending adjudication in some proceeding; (b) at any rate the correctness of legal position whether the losses as claimed would be allowed is certainly debatable and cannot be arrived at without going through the process of harmonising the provisions of the act and applying the decided authorities to the same; it is contended that the permissible prima facie adjustments are totally absent in this case and the assessing officer was clearly in error in making the above adjustments ..... retrospective amendments in the shape of sub-sections (iiia) to (iiic) were inserted in section 28 of the it act by finance act, 1990 which was introduced in the lok sabha on 19-3-1990. ..... thus it can be seen that both at the time of filing the it return by the assessee for assessment year 1989-90 or by the date when an intimation was sent to him on 28-2-1990 finance act, 1990 was not even introduced in the lok sabha. ..... they were inserted in section 28 by finance act, 1990 with retrospective effect. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)49ITD39(Mad.)
..... been followed, the department would have been forced to bring this matter to the notice of the hon'ble finance minister, and the latter would have certainly clarified what he meant while incorporating a provision of the companies act into the income-tax act, and particularly whether he intended to have that expression in the companies act to have quite a different meaning for the purpose of income-tax, even though he had stated that he wanted to give ..... since the revenue is not able to demonstrate that this expression meant something different in the companies act and since the hon'ble finance minister himself has stated in his speech that he intended to allow the same adjustment as available in the companies act, it is not possible to hold that the word loss' in this expression referred only to gross loss before depreciation.6. ..... present case, we were only applying the mischief rule inasmuch as the assessees made representations that the determination of the book profit without adjustment of past years' results would be unfair and the hon'ble finance minister introduced the amendment to allay that grievance.since he has done so with reference to the provisions of the companies act, it was very material to know the basis on which such assurance was given. ..... in respect of direct taxes, i propose to make the following amendments: (b) the finance bill inserts a new section 115j in the income-tax act to levy a minimum tax on 'book-profits' on certain companies. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)49ITD386(Mum.)
..... claimed and allowed in respect of profits of business referred to in sub-section 1 for any assessment year, no deduction shall be allowed in relation to such profits under any other provisions of this act for the same or any other assessment year.all the above facts clearly go to point out that the provisions of sections 80 hhc and 80hhe are independent of each other and they were brought on ..... evident from the fact that the section provided that no deduction contemplated by it shall be allowed in relation to the assessment year commencing on the 1st day of april 1994 (later on deferred to 1995 by finance act, 1993) or any subsequent assessment year. ..... at pages 7146-7182, 7164-65 in volume 6 of the learned author chaturvedi pithisaria, section 80hhe was inserted by finance (no.2) act, 1991 for the following purpose: finance (no. ..... apex court with reference to section 3 of the general clauses act, 1897 on which strong reliance has been placed by the learned counsel for the assessee wherein it has been held that in view of clauses 26 and 36 of section 3 of the general clauses act defining "immovable properties" and "movable property" respectively and section 2(7) of the sale of goods act, 1930, the expression 'goods' should mean property of every ..... the assessing officer thereafter hops on to the speech of the hon'ble finance minister, the mover of the bill for the enactment of section 80hhe, delivered by him on the floor of the house on 24th july, 1991, a part of the annual budget .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1994)49ITD412(Kol.)
..... 202, dated 5-7-1976 issued by the cbdt explaining the provisions of the finance act, 1976, was introduced in section 9. ..... the finance act, 1976, omitted the reference in the aforesaid provision to the interest income with effect from 1-6-1976. ..... under section 9(1)(v) of the act, only the following types of interest income will be deemed to accrue or arise in india : (ii) interest payable by a person who is a resident subject to certain exceptions, and (iii) interest payable by a non-resident, where the interest is payable in respect of ..... the circular referred to above recognises the fact (see para 14.2 of the circular) that the earlier provision for deeming the interest income as having accrued or arisen in india in section 9(1)(i) of the act has been replaced by section 9(1)(v) of the act. ..... that those provisions are not applicable.it is therefore our view that it is unnecessary to consider the nature and source of the deposit in view of our conclusion that the interest income has to be dealt with by section 9(1)(v) of the act.10. ..... representative for the assessee that the interest income should be dealt with in accordance with section 9(1)(v) of the act.7. ..... he, therefore, held that the provisions of section 9(1)(i) were applicable and not the provisions of section 9(1)(v) of the act. ..... it is contended that the income should have been considered non-taxable under the specific provisions of section 9(1)(v) and should not have been brought to tax under section 9(1)(i) of the income-tax act.2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (1994)49ITD521(Bang.)
..... before the application of the provisions of section 115j(1), it is first of all necessary to compute the total income of the assessee in accordance with the provisions of the act, which includes allowance of current depreciation and also setting off of unabsorbed depreciation, unabsorbed business loss, etc. ..... against the current year's gross income computed in accordance with the regular provisions of the act and thereafter the resultant amounts of wdvs and business losses, unabsorbed depreciation, unabsorbed investment allowance, etc ..... in fact, while determining the total income in accordance with the regular provisions of the act, current year's depreciation and also, if necessary, part or full amount out of the unabsorbed depreciation, etc.is required to be set-off against the gross income of the ..... indra kumar has stated thereafter that once it is determined that book profit income is applicable, the other computation on statutory basis becomes a manner of computation only without affecting any of the provisions of the act which is not relevant to the tax and, is therefore, required to be totally discarded. ..... such amounts are actually set-off against the gross income of the assessee in the current year calculated in accordance with the regular provisions of the act.section 115j(1) is a special provision which demands some more tax from the assessees even if their computation of income as per the provisions of income-tax act be 'nil' or less than 30% of the adjusted book profit. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT
Reported in : (1994)50TTJ(Bang.)158
..... provisions of s.115j(1), it is first of all necessary to compute the total income of the assessee in accordance with the provisions of the act, which includes allowance of current depreciation and also setting off of unabsorbed depreciation, unabsorbed business loss, etc. ..... the current years gross income computed in accordance with the regular provisions of the act and thereafter the resultant amounts of wdvs and business losses, unabsorbed depreciation, unabsorbed ..... fact, while determining the total income in accordance with the regular provisions of the act, current years depreciation and also, if necessary, part of full amount out of the ..... thereafter that once it is determined that book profit income is applicable, the other computation on statutory basis becomes a manner of computation only without affecting any of the provisions of the act which is not relevant to the tax and is, therefore, required to be totally discarded. ..... particular company, two different calculations of total income are required to be made, one in accordance with the regular provisions of the it act and, the other, on the basis of the adjusted book profits. ..... special provision which demands some more tax from the assessees even if their computation of income as per the provisions of it act be nil or less than 30% of the adjusted book profit. ..... at all.shri prasad also has come out with the theory that in making of an assessment after applying the provisions of the act, two different stages are resorted to, viz. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1994)51ITD417(Hyd.)
..... and when their shares were also accepted to be definite and ascertainable and the only income derived by the association was the lease income of the office complex, then provisions of section 26 of the income-tax act, automatically follow.section 26 states as follows : where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall ..... a particular person as his income will not prevent the income-tax officer from coming to the conclusion on fresh materials that that income is the income of another person and taking proceedings under section 34 of the act for reassessment against the latter on the ground that this income had escaped assessment in his assessment.in that case it was contended that the two entities whose incomes were sought to be clubbed are no other ..... as can be seen from the assessment order dated 13-3-1990 found at pages 108 to 110, it is clearly stated that in support of its claim for applicability of section 26 of the act the assessee in its letter dated 11-1-1990 sought to rely upon the undermentioned documents : (c) income-tax and wealth-tax returns filed by the respective co-owners.in the said assessment itself, at page 109 of ..... is also entirely financed by the advances and deposits received from the tenants as is apparent from a mere glance of the balance-sheet as on 31-3-1978 and subsequent balance ..... finance pvt ..... finance pvt ..... finance pvt .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)49ITD484(Mum.)
..... if we look at the original section 80hhc, introduced by the finance act, 1983 with effect from 1-4-1983, the scheme for deduction in respect of export turnover was quite ..... thereafter, section 80hhc was substituted by the finance act, 1985 with effect from 1-4-1986 and a different scheme of deduction was ..... the case of jamshedpur motor accessories stores (supra), the patna high court was considering the amendment to section 43b, by the finance act, 1987, with effect from 1-4-1988. ..... the learned departmental representative, on the other hand, relied on the order of the commissioner under section 263 of the act and also emphasised that explanation (ba) below section 80hhc does not use an expression "for the removal of doubts" and gives a specific date of 1 -4-1987 for retrospective ..... assessee excluded the freight and insurance from the total turnover also in the computation of export profit, as per section 80hhc(3)(b) of the act and the assessing officer accepted the computation in the assessment order, without any discussion.4. ..... on these facts, the commissioner of income-tax passed an order under section 263 of the act, holding that the assessment was erroneous and prejudicial to the interests of the revenue insofar as freight and insurance had been deducted from the "total turnover" and he directed the assessing officer to ..... this regard, we have also noted that the order under section 263 of the act was passed on 30-12-1988 when the benefit of the amendment brought by the finance (no. .....
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