Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1991)39ITD506(Mad.)
..... 7.1 speaks of structure and equipment and it is stated in that paragraph: we guarantee the kiln structure and lining for 300 firings or 12 months from the date of light-up (whichever is the sooner) and all mechanical and electrical equipment supplied by us or specified and approved by us for a period of 12 months from light-up and will supply free of charge within that period replacement parts (ex works, packed for shipment) for any parts which may prove defective, either .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1991)39ITD5(Mad.)
..... considering these facts in the light of section 7(4) read with explanation (ii), we direct the wto to value 5/6th portion of this house according to section 7(4) of the w.t. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1993)46ITD98(Mad.)
1. this is an assessee's appeal against the order of the commissioner (appeals)-ii, madras, dated 26-4-1989 and it relates to the assessment year 1986-87. the sole question involved in this appeal is whether the amount of rs. 2,54,994 spent by the assessee-company towards the medical expenses, foreign travel, living and incidental expenses during the seven weeks stay of shri a.m.m. arunachalam, an employee of the assessee company, in united kingdom is admissible as business expenditure.2. the facts leading to the present appeal may be briefly stated as follows. the assessee is a non-industrial company, in which the public are not substantially interested. it provides consultancy, computer services, transit fiat accommodation and executive mess services, etc.to its group companies and others. from the information furnished the following appear to be the same group of companies to which the assessee belongs:- the assessee-company was formed on 10-7-1972 and basically it was a service oriented company. one shri a.m.m. arunachalam has been working as adviser of the assessee-company being appointed under the terms of the appointment letter dated 17-1-1971. the terms of appointment as well as copy of the appointment letter dated 17-1-1971 were furnished.the terms of appointment revealed that a sum of rs. 4,250 is payable towards monthly salary, rs. 450 per month towards engagement of a private servant; to be provided with medical facility both for him and for his wife, which is .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)40ITD105(Mad.)
..... to the modus operandi contained in the proviso to rule 5 of the income-tax rules, 1962 would be the normal depreciation.coming to section 32(1)(iia) of the income-tax act, 1961 it provides for a further sum equal to one-half of the amount admissible under clause (ii) which refers to the prescribed rate of depreciation.therefore the additional depreciation is to be calculated at 50 per cent or half of the amount admissible under section 32(1)(ii) read with rule 5 of the income-tax rules. ..... on appeal the commissioner (appeals) held that the additional depreciation admissible is half of the normal depreciation and the normal depreciation admissible is proportionately higher for a period of 14 months of the previous year by virtue of the proviso to rule 5 of the income-tax rules. ..... in the rectified order the assessing officer held that the normal depreciation allowable under section 32(ii) would be only for a period of 12 months and additional depreciation would be restricted to one-half of the rate admissible under the normal procedure. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)40ITD45(Mad.)
..... therefore, in the light of the ratio of the decision of the madras high court in the case of n.p. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)40ITD494(Mad.)
1. this appeal by the assessee is directed against the assessment of a sum of rs. 26,80,640 collected as deposit, as a trading receipt, the disallowance of interest of rs. 3,20,000 and the denial of deduction under section 80hhc of the income-tax act, 1961.2. the assessee is a company engaged in the construction and sale of residential flats and commercial units. in the previous year ended 31-3-1984, corresponding to the assessment year 1984-85, the assessee constructed a building at bangalore known as "highpoint-iv". all the units in that building except two were sold and the unsold units were let out. however, the assessee claimed that the entrance foyer, corridors, staircases and common facilities such as lifts etc. were kept as a reserved area in respect of which the assessee had granted a licence, charging a fee for the use of the reserved area. in order to secure the payment of the fee, the assessee had collected deposits totalling rs. 26,80,640. the assessee claimed that this amount had to be excluded in computing the total income. the assessing officer, however, treated this amount as a trading receipt and brought it to tax.3. on appeal, the cit (appeals) held that the amount was received as part of the trading transaction and could not cease to be income merely because it was called a security deposit.4. in the further appeal before us, it was contended on behalf of the assessee that the security deposit was taken under a separate licence agreement for fulfilment of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)43ITD550(Mad.)
..... thereupon, the assessing officer examined the matter afresh and in the light of the directions given by the itat and gave the following findings: (a) the piece of land admeasuring 75 cents is covered by three survey numbers, namely. ..... in the light of the foregoing legal position obtaining in this country, the following two questions, as we see it, need to be asked and answered in this case: (1) does the piece of land (admeasuring 75 cents) belong to all the members of the erstwhile .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD187(Mad.)
..... it was prejudicial to the interests of the revenue, because it was passed without giving effect to the clear directions of the cit(a) to the effect that the assessing officer would examine the matter afresh in the light of the observations contained in the itat order dated 17-10-1986 relating to the assessment year 1982-83. ..... 1983-84 to 1985-86 it is a matter of record that all that the cit(a) did by his common order dated 21-1-1988 was to remit the matter to the assessing officer for fresh consideration and decision in the light of the observations made by the itat in its order dated 17-10-1986. ..... the assessment year 1982-83 was set aside by the tribunal, it is necessary to send back the assessments under appeal to the inspecting assistant commissioner to determine the income to be taxed at the concessional rate of 20% in the light of the observations of the tribunal in their order dated 17-10-1986.10. ..... 2 3(b) disc pads for both passenger car and light commercial vehiclesapplications including the fourth generation materials using compositeelastomer ..... by way of fees for technical assistance, which is covered by clause (vii), is a more general category as compared to the royalty which is referred to in clause (vi), particularly in the light of the definition of 'royalty* in explanation 2 to clause (vi) of section 9(1). ..... circumstances, we feel that the matter should be restored to the commissioner for determining the question afresh in the light of our observations made earlier. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD292(Mad.)
1. revenue is the appellant in all these five appeals directed against the orders dated 28-2-1990 of the cwt (a), madurai, relating to the assessment years 1984-85 to 1988-89 but pertaining to one and the same assessee.2. the sole common issue that arises for consideration in all these appeals is whether the assessee is entitled to claim exemption from wealth-tax on the value of the whole buildings owned by it at d. nos.17, 18and 19. east chitrai st., madurai, on the ground that the assessee used the said buildings for purposes of its business as contemplated under clause (vi) of sub-section (3) of section 40 of the finance act, 1983. hence, these appeals relating to one and the same assessee have been heard together for disposal by a common order.3. the facts that led to the filing of these appeals are as follows : the assessee, a great name in textile business, is a private limited company in which the public are not substantially interested. it is the owner of the buildings bearing d. nos. 17, 18 and 19, east chitrai st., madurai. the following six partnership concerns have entered into agreements known as "franchise agreements" with the assessee for the purpose of carrying on business in textiles and garments in the aforementioned buildings of the assessee : accordingly, they were carrying on business in textiles in the said buildings by virtue of the franchise agreements entered into by them with the assessee. each of them was paying a commission at the rate of 1 per .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD676(Mad.)
..... it is obvious that between a partial assignment of copyright and a licence the line may run extremely fine, and i think this does run rather fine; but, construing the agreement in the light of the authorities and each agreement has to be construed in the light of its own facts, i think that the correct view here is that this was not an assignment of the copyright but rather a licence to do certain specific things - not, of course, to translate into ..... 101 and the royalty was paid at 12.5 per cent if the total half yearly sales was upto rs. ..... 's case (supra) however throws greater light on this question. ..... the assessee protested by letter dated 16-2-1989 and pointed out that the expenditure was not capital expenditure because the amount was paid as a percentage of the sales worked out on half yearly basis. .....
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