Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD625(Mum.)
..... the learned departmental representative supported the case of the department for taxing the concerned receipts by the society either as assessable under the head 'income from other sources' or alternatively, as chargeable to income-tax under the head 'profits and gains of business or profes--sion' under section 28(3) as income derived by the society from specific services performed for its members. ..... it is true that in the instant case it cannot be said that the appellant-society is carrying on any business and that the receipts in question arise to it as profits and gains of such business but it is not necessary that a receipt in order to be of the nature of income must arise from a business carried on.the concept of income for the purpose of income-tax is very wide and according to its definition in section 2(24) it is an inclusive definition and not an exhaustive one. ..... cit [1956] 29 itr 687, wherein the expression 'performing specific services' was held to be a stronger and more definite than 'rendering services' and by conferring a benefit on another by some act or omission or by even merely maintaining a particular attitude, it could be said that the services were rendered thereby. ..... in the previous years relevant to the four assessment years under appeal before us, namely, 1970-71 to 1973-74, the assessee realised from its members on account of the sale of plots by them rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD566(Mum.)
..... the controversy centres round the claim of the assessee under section 35b of the income-tax act, 1961 for weighted allowance of its expenditure under various heads.2. ..... these findings of the aac are specifically challenged by the assessee in its appeal.there is also the claim urged, as had been done earlier at any rate before the ito, that under section 35b the assessee is entitled to weighted deduction in respect of all the expenses incurred by them and debited to the profit and loss account of the year.4. ..... before the ito the assessee had contended that being engaged exclusively in exports, all its expenses would qualify for deduction under section 35b, yet he considered that it would suffice if the assessee's claim enumerated above is examined.and in what followed, the aac held that the benefit of section 35b should be made available to commission paid in india, sample charges, salary and bonus and sales promotion expenses and not to the others in the list above.3. ..... in the assessment proceedings it claimed before the ito, for the purpose of weighted deduction under section 35b, expenses on account of commission, postage and telegrams, local travelling expenses, sample charges, label charges, salary and bonus paid to the employees in india, sales promotion expenses and export credit guarantee corporation insurance. ..... the assessee has also raised, as already mentioned, further claim in respect of other expenses debited to the profit and loss account. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)8ITD427(Mum.)
..... fund is not the initial contribution contemplated in section 36(1)(iv) of the act, rules 87 and 88 of the income-tax rules, 1962 ('the rules'), and notification no. ..... , the income of the assessee chargeable to tax had been underassessed on account of allowance of initial contribution to superannuation fund in full, he recorded a finding to that effect and issued notice under section 148 read with section 147(b) of the act on 22-9-1975, in response to which the assessee filed its return on 28-10-1975 declaring its income at rs ..... subject to any condition on which the board may think fit to specify under clause (rv) of sub-section (1) of section 36, the amount to be allowed as a deduction on account of an initial contribution which an employer may make in respect of the past services of an employee admitted to the benefits of a fund shall not exceed twenty-five per cent of the employee's salary ..... be allowed in respect of the matters dealt with therein, in computing the income referred to in section 28-- (iv) any sum paid by the assessee as an employer by way of contribution towards a recognised provident fund or an approved superannuation fund subject to such limits as may be prescribed for the purpose of recognising the provident fund or approving the superannuation fund, as the case may be; and subject to such conditions as the board may think fit to specify in cases ..... originally made under section 143(3) of the income-tax act, 1961 ('the act') on 29-3-1975 computing total income at rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD303(Mum.)
..... to any authorities on the point, it appears to us that under the provisions of the income-tax act an order of assessment is one, single and indivisible composite order of the ito which involves determination of the various issues or points that arise in the course of assessment for the determination of the income or tax and is not an amalgam of a number of orders of the ito in which different issues are determined.the provisions of section 143 clearly contemplate that the ito shall, after hearing the evidence ..... apart from the fact that the provisions considered in those decisions were of section 35 of the 1922 act and/or section 154 of the 1961 act, which, to our mind, are certainly not identical with those of section 33b of the 1922 act and section 263 of the 1961 act, it may be noted that even the insertion of sub-section (1a) in section 154 in 1964 which makes the legal position abundantly clear was not brought to the notice of their lordships in those ..... of the assessee and other evidence required by him on specific points and taking the relevant materials into account, by an order in writing, make an assessment of total income or loss of the assessee and determine the sum payable by him or refundable to him. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD739(Mum.)
..... , reads as under: (4) where a deduction is allowed for any year under this or the last preceding section in respect of expenditure represented wholly or partly by any assets, no deduction shall be allowed under any provisions of the income-tax act other than this part of this act in respect of wear and tear, obsolescence, depreciation or exceptional depreciation of these assets for any year of assessment during any part of which they are used by the person carrying on ..... asset is used in the business after it ceases to be used for scientific research related to that business and a deduction has to be made under clause (i), clause (ii) or clause (iii) of sub-section (1) or sub-section (1a) of section 32 in respect of that asset, the actual cost of...sub-section (1) of section 35 or under any corresponding provision of the indian income-tax act, 1922(11 of 1922).it is evident that clause (iv) provides that no deduction shall be allowed under section 32 for the same previous year in which deduction has been allowed under section 35. ..... this remains, in spite of so many amendments of the provisions since 1946, in 1961, 1967, 1974, etc.9.3 the only argument in favour of the revenue's stand appears to be based on the following part of the statement of objects and reasons given while piloting the indian income-tax (amendment) act, 1946, for inserting these provisions [section 10(2)(xiv)] : this clause purposes to allow expenditure on scientific research related to a business or to the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)7ITD666(Mum.)
..... the case of the assessee was that the conditions laid down in section 40a(7) of the income-tax act, 1961 ('the act') for getting the deduction for the provision for liability applied only to a case where provision for such liability was made in the books of account and so, those conditions did not apply to a case where the assessee makes no such provision in its books of account. ..... the finance act, 1975, has amended the income-tax act retrospectively and under this amendment, deduction in respect of provision for gratuity payable to employees on retirement or termination of their employment is conditional upon the company creating an approved gratuity fund before 1st january, 1976. ..... then, the special bench referred to the word 'provision' appearing in section 40a(7) and considering the content in and the purpose for which it was inserted in the act, it came to the conclusion that its meaning was not confined only to the entries made in the books of account but extended to all claims for deduction of that expense in the course of assessment proceedings. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD539(Mum.)
..... the claim of the assessee was that the income for the purpose of considering the question of deduction as required under section 11(2) of the income-tax act, 1961 ("the act") should be determined on commercial principles which would take into consideration the depreciation admissible to it on ..... direction that they shall form part of the corpus of the trust or institution) shall for the purposes of section 11 be deemed to be income derived from property held under trust wholly for charitable or religious purposes and the provisions of that section and section 13 shall apply accordingly.it is also necessary to consider the definition of income as set out in section 2(24)(iia) of the act which reads as follows : (iia) voluntary contributions received for a charitable or religious purposes or by an ..... which are set out in the order of the ito, submitted that as the capital expenditure was allowed as deduction by treating it as application of income, no further deduction on account of depreciation was admissible.he next pointed out that claim for depreciation was allowable only in computing the income from business and the trust was not carrying on any business activity. ..... ) who held that the entire surplus according to the audited statement qualified for deduction under section 11(2).6. ..... ) was justified in coming to the conclusion, as he did, that the assessee was entitled to deduction under section 11(2) of the entire surplus as determined on the basis of the audited statement.7. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD780(Mum.)
..... income-tax act, 1961 ("the act"), for recovery of arrears of income-tax as certified by the ito and interest payable thereon for the period commencing after the date of the certificate.the case of the assessee before the ito was that the order of attachment issued by the tro created an annual charge, not being a capital charge, in respect of the interest payable by the assessee referred to above and so the said interest should be allowed as a deduction under section 24(1)(iv) of the act while computing the income ..... referred to us to the commentary of the learned authors, kanga and palkhivala's law and practice of income-tax, 7th edition, page 334. ..... the liability to pay interest for the subsequent year will not arise unless and until the default in paying the tax arrears was made by the assessee and in such a case, there cannot be said to be any charge on the property, vide the decision in the case of metro theatres bombay ltd ..... to him, the attachment order gave the right to the tro to sell the house property and apply the sale proceeds towards the tax arrears as well as the interest thereon from the date of the certificate to the date of ..... hold that the attachment order under consideration did not create any charge envisaged under section 24(1)(iv) and so the claim of the assessee has been rightly rejected.6-9. ..... observed that no evidence was produced to show that the liability to pay the interest was actually incurred as the sum was not debited in the accounts of the assessee. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)2ITD44(Mum.)
..... ito [1960] 40 itr 298 did not apply to the facts of the instant case because in that case the notice under section 28(1)(a) of the indian income-tax act, 1922, had been validly served and the question was only regarding the hearing after the valid service of the aforesaid notice.8. ..... in that case, the ito started penalty proceedings under section 28(1)(a) of the 1922 act and served a notice under section 28(3) of the said act on the assessee to show cause as to why penalty should not be imposed. ..... the present appeals relate to the assessment of the assessee under the wealth-tax act, 1957 ('the act'), for the assessment years 1963-64 to 1974-75, both inclusive.2. ..... meenakshi singh stated that it was enough if a notice under section 16(2) was served once before completing the assessment and so it was not true to say that no notice under section 16(2) was served on the assessee before the completion of the assessment ..... pandit, the learned representative for the assessee, urged before us that the aac should have quashed the assessments as void ab initio and should not have directed the wto to make the assessments afresh after giving reasonable opportunity of being heard to the assessee. ..... only where it was given in ignorance or forgetfulness of some inconsistent statutory provision or of some authority binding on the court, so that in such cases, some part of the decision or step in the reasoning on which it was based was, on that account, demonstrably wrong.14. ..... ito [1961] 43 itr 562 (ass. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD718(Mum.)
..... invoked the provisions of section 2(22)(e) of the income-tax act, 1961, and held the sum of ..... he held that the development rebate brought forward from the earlier partnership concern could not be said to be accumulated profits of the private limited company because it was of a hereditary nature and it had to be kept intact for eight years and was not available for distribution of dividends.according to him, the development rebate of the current year could not form part of the accumulated profits. ..... the loan given by the company to sameer finance corporation was in the ordinary course of its business and there was a gap of about three months between the date of loan received by sameer finance corporation and the date on which it gave loan of a different amount to the assessee in the ordinary course of its ..... secondly, he observed that "shareholder" envisaged under section 2(22)(e) means a registered shareholder and not a benami shareholder, in view of the decision in the case of damodaran ..... in our opinion, it can be argued that the accumulated profits envisaged under section 2(22)(e) cannot extend to accumulated profits of a predecessor-in-business which is not ..... he observed that an artificial provision like section 2(22)(e) has to be strictly construed and its scope could not be widened. ..... 4,09,798 and unappropriated credit balance in the profit and loss account amounting to rs, ..... the accounts of the said company were closed for the first time on 30-6-1972 relevant to the assessment year .....
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