Court : Mumbai
Reported in : AIR1970Bom30; 1969MhLJ574
..... it was, however, contended that even notices under section 34 have not been issued in the present case and the notices that are issued are under section 23(2) of the income-tax act, 1922 or under section 143(2) of the income-tax act, 1961. ..... on 6th of april 1967 the income-tax officer, central circle iii, nagpur, issued notices dated 6th april 1967 for each of these seven years to the assessee under section 23(2) of the indian income-tax act, 1922 or section 143(2) of the income-tax act, 1961. ..... it runs:'notice under section 23(2) of the indian income-tax act, 1922/under section 143(2) of the income-tax act, 1961.dated 6-4-1967.no. ..... the income-tax officer further applied the proviso to section 13 of the income-tax act, 1961. ..... in fact it is contended that the assessee in respect of whom a finding or direction has been given has submitted himself to the procedure under the income-tax act and has gone through the whole procedure, whereas in respect of the other assessees they have escaped assessment on account of the negligence or inadvertence or omission on the part of the income-tax officer and are in a more favourable position.15. ..... if there is any inherent defect in the maintenance of such day-to-day stock books by virtue of which they are proved to be worthless, only then should they be rejected altogether. .....
Tag this Judgment!Court : Mumbai
Reported in : [1970]77ITR456(Bom)
..... . it was, however, contended that even notices under section 34 have not been issued in the present case and the notices that are issued are under section 23(2) of the income-tax act, 1922, or under section 143(2) of the income-tax act, 1961 ..... on 6th of april, 1967, the income-tax officer, central circle iii, nagpur, issued notices dated 6th april, 1967, for each of these seven years to the assessee under section 23(2) of the indian income-tax act, 1922, or section 143(2) of the income-tax act, 1961. ..... it runs : 'notice under section 23(2) of the indian income-tax act, 1922 ------------------------------------------------------- under section 143(2) of the income-tax act, 1961. ..... the income-tax officer further applied the proviso to section 13 of the income-tax act, 1961. ..... . in fact, it is contended that the assessee in respect of whom a finding or direction has been given has submitted himself to the procedure under the income-tax act, and has gone through the whole procedure, whereas in respect of the other assessee they have escaped assessment on account of their negligence or inadvertence or omission on the part of the income-tax officer and are in a more favourable position. 21 ..... if there is any inherent defect in the maintenance of such day-to-day stock books by virtue of which they are proved to be worthless, only then should they be rejected altogether. .....
Tag this Judgment!Court : Gujarat
Reported in : (1986)54CTR(Guj)272; (1987)1GLR3; [1986]162ITR28(Guj)
..... the report of auditor would cause such an irreparable injury to the assessees that even the assessees who would fail to get the accounts audited and obtained audit report in respect of the assessment year 1985-86 in particular and subsequent assessment years in general for compelling, bona fide and just reasons would also expose themselves not only to penalty under section 271b of the income-tax act, 1961, which penalty is again related to the total sales turnover or gross receipts subject to a maximum sum of rs. ..... compulsory audit of accounts : we think it would facilitate the administration of tax laws to a considerable extent if,jsimultaneously with the compulsory maintenance of accounts, there is a statutory provisions for their mandatory audit, at least in the bigger cases... ..... in the present state of income-tax law, the interpretation and development of which has become very intricate and complex, it is not difficult to anticipate that a situation has arisen where more and more assessees would like to be assisted both by the chartered accountants as well income-tax consultants and practitioners who may be non-chartered accountants in arranging their financial affairs and in the maintenance of their accounts, records and documents for preparation of the returns and in the course of assessment before tax authorities. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Allahabad
Reported in : (1989)28ITD85(All.)
..... by order dated 24-2-1986, the following question has been referred to me under section 255(4) of the income-tax act, 1961: whether, on the facts and in the circumstances of the case, the assessee was allowed a deduction within the meaning of section 41(1) of the income-tax act, 1961 in earlier years in respect of sales tax payable by it to the government 2. dr. r.o. ..... accordingly, the point of difference of opinion was stated as below: whether, on the facts and in the circumstances of the case, the assessee was allowed a deduction within the meaning of section 41(1) of the income-tax act, 1961 in earlier years in respect of sales tax payable by it to the government the matter was referred to the president. ..... for the above reasons, i answer the question referred to me as below: on the facts and in the circumstances of the case, the assessee was indeed allowed deductions within the meaning of section 41(1) of the income-tax act, 1961 in the earlier years in respect of the sales tax payable by it to the government.the case will now go back to the bench, which originally heard the appeal for being disposed of in accordance with the provisions of the income-tax act, 1961.1. ..... the commissioner of income-tax (appeals) was of the view that the form of the accounts or their maintenance in any particular, way did not affect the legal position. ..... vaish for the work done by him relating to income-tax matters as also for matters pertaining to audit, company law and industrial law. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1990)34ITD506(Pune.)
..... of maintenance of account books in terms of section 44 aa of the income tax act, 1961. ..... that section 44aa with effect from 1-4-1976 enjoined maintenance of accounts by business and professional people and while section 44ab enjoined submission of audit report in the prescribed form even while books of accounts were ..... time on 31st january, 1985 which would clearly go to show that the assessee could not have anticipated the introduction of new law and prepared to switch over to the maintenance of accounts in the same manner in which the corporate assessees maintained accounts to facilitate compulsory tax audit in terms of section 44ab. ..... 1984 or december 31,1984 where they would not have reasonable time to prepare and finalise the accounts in the manner in which the auditors required for the purpose of tax audit.further the learned counsel for the assessee referred to circular no.387 dated 6-7-1984 issued by the central board of direct taxes containing the explanatory notes on finance act, 1984 especially paragraph 17.2 thereof which clarifies that the provisions were intended to ..... for the assessees whose previous year ended on october 24,1984, or december 31, 1984, and whose specified date being june 30,1985, and for that matter those assessees whose previous year ended on march 31, 1985, and whose specified date being july 31, 1985, to satisfy these provisions by getting their accounts audited and obtain the auditors' report, particularly when their turnover was so high as to exceed .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1993)46ITD216(Coch.)
..... the cit (a) relying on the order of this tribunal granted exemption under section 11 of the income-tax act, 1961. ..... trust applied for registration as required under section 12a of the income-tax act, 1961. ..... the questions before their lordships were : (i) whether the sabha was established wholly for charitable and religious purposes (ii) whether the business undertaking is held under trust for the welfare of the community and (iii) whether the assessee is entitled to exemption under section 11 of the income-tax act all these questions were decided in favour of the assessee by their judgment dated 2-9-1987 ..... was of the view that the assessee had not complied with the provisions of section 11 (2) of the act, since 75% of the income was not applied for charitable purposes and the assessee had not given any notice to the income-tax officer in form no.10 prescribed under rule 17 of the income-tax rules. ..... all these into consideration, the income-tax officer came to the conclusion that the assessee was not entitled to any benefit of exemption under section 11 of the act and completed the assessment on a total income of rs. ..... 7,000 the income-tax officer was of the view that the accounts were not maintained properly by the assessee trust as was pointed out by ..... , he found that the assessee was not maintaining proper accounts and the auditors have pointed out several discrepancies in the audit report. ..... of these comments lead to the inference with the maintenance of accounts require improvements. .....
Tag this Judgment!Court : Kolkata
Reported in : [1994]209ITR620(Cal)
..... the income-tax officer disallowed the assessee's claim for the carry forward and set off of the unabsorbed development rebate for the earlier years on the ground that the assessee-company had not created the necessary reserve in terms of sub-section (3) of section 34 of the income-tax act, 1961, in its accounts for the calendar year 1974. ..... during each of the said two previous years, the assessee-company had claimed weighted deduction under section 35b of the income-tax act, 1961, in respect of certain expenses. ..... in the reference under section 256(1) of the income-tax act, 1961, at the instance of the revenue, the following questions of law have been referred by the tribunal for the opinion of this court :assessment year 1975-76 : '1. ..... however, weighted deduction is admissible on the commission paid at malaysia for maintenance of a foreign branch in the light of our decision in cit v. ..... no weighted deduction is admissible for payment of audit fees as the same does not fall in any of the items specified in clause (b) of section 35b(1) of the said act. ..... 3 and 9 in the said reference relate to the claims for weighted deduction under section 35b in respect of audit fees of rs. ..... we, therefore, hold that the tribunal was not right in allowing weighted deduction under section 35b in respect of audit fees for each of the said two years. ..... 8,391 being audit fees and rs. ..... 8,390 being audit fee and rs. .....
Tag this Judgment!Court : Madhya Pradesh
Reported in : [1998]229ITR505(MP)
..... ; (ii) the burden to prove the identity, capacity and genuineness is on the firm ; (iii) if the cash credit is not satisfactorily explained, the income-tax officer is justified to treat it as income from undisclosed sources ; (iv) the firm has to establish that the amount was actually given by the lender ; (v) the genuineness and regularity in the maintenance of accounts has to be taken intoconsideration by the taxing authorities, and (vi) if the explanation is not supported by any documentary or other evidence, then the deeming fiction created by section 68 of the income-tax act, 1961, can be invoked.' 12. ..... cit : [1984]148itr523(mp) , as under (headnote) : ' a perusal of sections 68 and 69 of the income-tax act, 1961, shows that section 68 applies when the sum in respect of which the explanation of the assessee is not accepted is found credited in the books of account. ..... this is a reference at the instance of the revenue under section 256(1) of the income-tax act, 1961, and the following two questions have been referred by the tribunal for answer by this court : '1. ..... he required the assessee to explain the genuineness of the credits in terms of the provisions of section 68 of the income-tax act, 1961. .....
Tag this Judgment!Court : Company Law Board CLB
Reported in : (1998)93CompCas170
..... the company was also liable to deduct income-tax at source from such dividend as per the income-tax act, 1961, and has failed to deposit the same with the tax authorities, (iv) the company was liable to repay rs. ..... auditor of the company also did not make any comments with regard to the compliance with section 58a of the act in his report on the accounts for the year ended june 30, 1995. ..... 1,22,83,578 and has not also remitted the unpaid amount in a separate account as per section 205a(1) of the act. ..... from the audited balance-sheet of the company for the year ended june 30, 1995, it is now established that the company is in serious financial difficulties and has committed already a number of defaults with regard to payment of pf of employees, dividends declared on shares, sales tax, interest on loans from financial institutions, banks, etc. ..... (vii) the company has not complied with the requirements of law with regard to maintenance of cost accounting records.5. ..... 4.2 crores, (vi) there is need to strengthen the internal audit system and enlarge its scope. ..... a study of the audited balance-sheets as on june 30, 1995, brings out prominently the following irregularities in the company : (i) the company has not paid the pf and esi dues regularly and at the close of the year an aggregate of rs. ..... 1,25,25,154 as on june 30, 1996, as per the audited balance-sheet.16. .....
Tag this Judgment!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. .....
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