Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2004)88ITD373(Chennai)
..... once that basic fact is accepted, then there is no occasion either for the assessee or for the department to sneak into the provision of section 145 of the income-tax act, 1961. ..... the assessee-company has changed its method of accounting as mandated by the provisions of the companies act, 1956 to accrual system from the assessment year 1990-91 onwards and once the assessee has adopted either by compulsion of companies act or by its own volition, it is bound to compute the income under the income-tax act on the basis of the same set of financial and accounts statements prepared on the basis of accrual system. ..... therefore the scheme provided under the companies act for the maintenance of accounts, audit of the accounts and other matters relating thereto are provided in a very comprehensive scheme. ..... after the amendment in the companies act in june, 1988 requiring obligatory maintenance of accounts under the mercantile system, limited companies were required to observe the same and file annual returns before the registrar of companies on mercantile basis. ..... the assessee-company is reporting its profits or loss for a particular year under the companies act also, by preparing annual accounts statements and getting it audited and getting it adopted by the board of directors, and finally getting it passed by the a.g.m. ..... the accounts of the company are audited and the auditors' reports are delivered on the basis of the accounts maintained by the assessee-company on mercantile system. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1993)44ITD581(Mad.)
..... of income-tax, madurai, invoking the powers vested in him by and under section 263 of the income-tax act, 1961, called for and examined ..... operator, was maintaining accounts but he did not produce them before the income-tax authorities who estimated his income rejecting the income as returned by him ..... , follow that recourse to section 263 of the act is available to the cit, in view of the foregoing, therefore, the cit passed the impugned order in revision, cancelling the order dropping the penalty proceedings and directing the assessing officer to make a fresh order after taking into account all the materials available on record and after making further enquiries, if necessary, and after giving the assessee a ..... assessee was systematically omitting to record part of the daily collections, the assessing officer called upon the assessee to produce the order books, and daily collection chittai relating to the year of account ending 31-3-1983 (being the previous year relevant to the assessment year 1983-84 which is now before us).the assessee responded by contending that ..... the tribunal, is the fact that, admittedly, the assessee had met some expenditure out of the suppressed receipts, thus underscoring the factum of suppression of tailoring charges and consequently the income flowing therefrom.during the relevant previous year, the assessee had made various investments which he had failed to account for in his books of account; and the tribunal ultimately quantified such investments at rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD187(Mad.)
..... subsequently, invoking the powers vested in him by and under section 263 of the income-tax act, 1961. ..... it is, therefore, necessary first to ascertain the nature of the consideration received by the assessee under the agreement in question.for this purpose, it is necessary to examine the relevant provisions of the income-tax act, 1961.30. ..... as respects royalty/technical fees received by a foreign company under a post 31-3-1976 agreement, the effect of section 115a, in its application to the assessment years under consideration, is that income-tax is payable at the rates indicated below:(a) where royalty consists of lump 20% section 115a sum consideration for the (1)(b)(ii)(1) transfer outside india of, or(b) in other cases. ..... the indian company in their information to the chartered accountants have stated that they received from the foreign company certain formulations and necessary data and with the above assistance they made alterations in the composition of their products which improved their performance. ..... in this view of the matter and taking into account the fact that no specific percentage can be ascertained having regard to the scanty information given by the assessee, i feel it is better to go by the averages. ..... after taking into account the submissions made before him on behalf of the assessee, the commissioner observed as follows: the information given by the representative of the non-resident company states that the company would have given very little .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1993)46ITD71(Mad.)
..... question of receipt of income, profits and gains would not arise but if there were income, profits and gains, then the proportionate part thereof attributable to the sale proceeds received by the agents in india were income, profits and gains received by them at the moment the gross sale proceeds were received by them in india and that being the position the provisions of section 4(1)(a) were immediately attracted and the income, profits and gains so received became chargeable to tax under section 3 of the act.again in the case ..... in this regard he drew our attention to the fact that, in the context of section 44ab, which obligates certain persons carrying on business or profession to have their accounts audited, the cbdt had issued circular no. ..... as we see it, neither the section nor the circular can avail the assessee.the object of the section obviously is to cast an obligation on certain types of assessees to have their accounts compulsorily audited. ..... the scheme of the section is that having identified the classes of assessees who are obligated to get their accounts compulsorily audited, the section proceeds to make a further classification so as to indicate that a group of assessees falling in the said classes need not get their accounts audited compulsorily. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1993)46ITD429(Mad.)
..... being immaterial [section 5(1)(b)]; (c) income which accrues or arise outside india during the accounting year, even if it is not received in or brought into india [section 5(1)(c)].it should, therefore, follow that normally the income derived by the assessee from its malaysian estate is exigible to indian income-tax.normally, again, if in the course of its business the assessee keeps surplus funds with banks and earns interest thereon, such interest income will have to be treated as business income and taxed as such.on this general principle, interest income earned by the ..... assessee will normally have to be assessed as business income.and, again ..... (sb), no part of the malaysian income could enter into the computation of the total income of the assessee under the income-tax act, 1961.23. ..... to him, the 'indian loss' represented the expenditure incurred by the assessee on the maintenance of administrative office in india, holding board meetings, maintaining the register of shareholders and the like. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2007)104ITD149(Chennai)
..... in this case, the income-tax act enacted by parliament as interpreted by the jurisdictional high court in categorical term says that the excise duty and sales tax cannot form part of total turnover for the purpose of deduction under section 80hhc. ..... in fact experience shows that on account of an impersonal machinery and the inherited bureaucratic methodology imbued with the note-making, file-pushing, and passing-on-the-buck ethos, delay on its part is less difficult to understand though more difficult to approve. ..... considering the present case on the anvil of aforesaid expositions, we find that delay of 310 days on account of misplacement of the documents is undoubtedly an inordinate delay. ..... (6) it must be grasped that the judiciary is respected not on account of its power to legalise injustice on technical grounds but because it is capable of removing injustice and is expected to do so.4. ..... (5) there is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of mala fides. ..... chaturvedi sitting as third member vide his order dated 11-8-2006 has concurred with the view of the accountant member. ..... i, therefore, concur with the reasonings adduced by the learned accountant member.9. ..... question as proposed by the accountant member. ..... i had the benefit of going through the draft order prepared by learned brother the accountant member. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1993)47ITD315(Mad.)
..... the ito allowed registration to the firm for the assessment years 1972-73 and 1973-74.the commissioner of income-tax, acting under section 263, cancelled the registration on the ground that no business was carried on by the assessee during the relevant accounting years. ..... in our opinion these provisions have nothing to do with the validity of partnership either under the partnership act or its registration under section 26a of the income-tax act.thus, according to the punjab and haryana high court the head of income under which a particular item of income of the firm is to be computed for purposes of taxation has nothing to do with the legal validity of the partnership.39. ..... in the assessment for the assessment year 1955-56 the assessee's main contention was that the lease granted under the indenture of 15th march, 1948 was a lease of a commercial asset and, that therefore, the income from the lease should be assessed under section 10 of the income-tax act, 1922; and that consequently, the assessee was entitled to depreciation and development rebate also. ..... owning properties and letting them was not a purpose for which it was formed and that being so, the disputed income cannot be said to fall under any section of the indian income-tax act other than section 10. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1994)50ITD170(Mad.)
..... thereon will be applicable to the assessment year 1985-86 also.being a company engaged in the business of manufacturing tea, the assessee was entitled to and was granted development allowance under section 33a of the income-tax act, 1961. ..... in cases where inter-corporate dividends are excluded from the total income by virtue of the provisions of rule 1(viii) of the first schedule, the cost to the assessee of the shares as exceeds aggregate of: (i) any moneys borrowed and remaining outstanding on the first date of the previous year; and (ii) the amount of any fund, any surplus and any such reserve as is not to be taken into account in computing the capital base of the company under rule ..... that, for the purposes of reducing the capital base under rule 2, the aggregate cost to the assessee of the assets which yield the excluded items of income referred to above is not taken into account in its entirety; but is first attributed to the aggregate of borrowed capital and the aforesaid three items occurring under the heading 'reserves and surplus', and the balance, if any, alone is taken into account for reducing the capital base.34. ..... supra, provision for taxation cannot be regarded as a fund for purposes of rule 2(ii), while surplus in the profit & loss account is squarely covered by the provisions of the said rule.this matter is really consequential one and hence, the related grounds dismissed.the findings given by us in relation to the assessment year 1983-84 will hold good here also .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1996)59ITD570(Mad.)
..... into account before applying the provisions of section 115j and, therefore, there ..... , even for purposes of section 115j there was normal computation of the total income under other provisions of the income-tax act in terms of which the depreciation calculated as per income-tax rules had been taken into account though tax was levied on the basis of 30% of the book profits.he also noticed that for the assessment years 1989-90 and 1990-91 the cit(a) had held that in computation of income under the other provisions depreciation as admissible under the income-tax rules had been taken ..... on the issue of depreciation actually allowed the the supreme court in madeva upendra sinai's case (supra) by the majority judgment held 'that the key word in clause (b) of section 43(6) of the income-tax act, 1961 is "actually". .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)43ITD8(Mad.)
..... in our opinion going as it does against the scheme of the income-tax act, 1961 relating to collection and recovery of tax, the said contention lacks force.13. ..... even so, he held that, in the facts and circumstances of the case, "the appellant cannot argue that interest was not chargeable under provisions of section 217 and section 139(8) of the income-tax act.6. ..... preferred against an order charging penal interest, it would be open to him to raise a contention that the income in respect of which tax is imposed and in respect of which interest is calculated for the purpose of section 18a(8) was not income which fell under the head covered under section 18a or he could contend that the income calculated by the income-tax officer as income of the assessee for the relevant year was not the proper income and that there was no income at all or the income was less than the ..... let us assume that an assessee follows the year ending on, say 31-3-1984, as the year of account, and that he is liable to pay advance-tax now, under the provisions of section 211, he is obligated to pay advance-tax by 15-9-1983, 15-12-1983 and 15-3-1984. ..... according to the assessing officer, such ad hoc payment cannot be taken into account for purposes of computing the interest chargeable under the said sections. ..... cit [1986] 160 itr 961 27 taxman 275.interest under section 139(8) was not exigible, because the delay in the filing of the return was occasioned by the delay in the finalisation of the accounts of t.t.k. .....
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