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 Pune
Reported in : (1982)1ITD1056(Pune.)
..... the assessee-firm is aggrieved against the order of the aac confirming the ito's order, under section 186 of the income-tax act, 1961 ("the act"), cancelling registration.2. ..... 12 required the firm to certify that there was no change in the constitution of the firm or the shares of the partners and as it was not known how the undisclosed profits outside the account books were apportioned between the partners, it cannot be verified whether there was any change in the shares of the partners. ..... of a part of the profits or secret profits, not disclosed in the account books, would not lead to the conclusion that there was no genuine firm in existence.while under the 1922 act the procedure for grant of registration and renewal of registration was the same, namely, distribution of profits as per the terms of the partnership deed, there was no such requirement so far as continuation of registration under section 184(7) in form no.12 was concerned, where the only requirement was ..... that non-distribution of profits outside the account books by the assessee-firm would not make the assessee-firm a non-genuine firm and the fact that the ito in his order under section 185 of the act, had divided the assessee's profits among the five partners would show that profits were divided in the profit-sharing ratio between the partners as per partnership deed and that the ito had nowhere made .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1982)1ITD620(Pune.)
..... 3,000 to each of the two grandsons for the use of their goodwill bequeathed by the deceased appeared to be excessive and that no payment on this account had been made in the assessment year 1974-75 and, therefore, this condition was imposed and accepted for non-commercial reasons and was not bona fide and even otherwise section 40a(2) of the income-tax act, 1961 was attracted under which expenditure which appeared to the ito to be excessive or unreasonable, having regard to the fair market value ..... it was also pointed out that under section 29 of the partnership act a partner can assign his share in the firm and the deceased mohanlal who had heritable rights in the assets of the partnership, including goodwill, disposed of such rights by will and the partnership by accepting the conditions of will had entered into a binding obligation attached to the profit-earning ..... 3,000 as was valued by the accountable person in the deceased's estate duty case and that there was no agreement between the deceased and the continuing partners which could be enforced by the deceased's estate and there was no compulsion on the surviving partners to continue the firm and pay the charge, more so when the partnership was at will as per clause 5 of partnership deed dated ..... to the minor grandsons even when there were no profits and, therefore, payments could no be said to be for the purpose of business and the said payments were also hit by section 40a(2) as payments were to two closely related persons.5 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)3ITD318(Pune.)
..... is a departmental appeal against the findings of the commissioner (appeals) that the assessee is entitled to deduction under section 80hh of the income-tax act, 1961 ('the act').2. ..... levy of interest under section 139 is automatic, if there is a delay in filing the return and the tax payable exceeds the advance income-tax and tax deducted at source. ..... any case, he submitted that the tribunal which went into the question of section 80j has not given any findings being adverse to the assessee on this point ..... he also relied on the facts that the assessee had claimed deduction under section 80j, in respect of the same activity for the assessment year 1971-72, which shows that the manufacturing activity had started before ..... section 80j(2) allows the deduction only in the year in which the industrial undertaking begins to manufacture or produce articles, so production or manufacture of articles during the accounting year is ..... it is not (repeat not) entitled to the deduction under section 80j for the assessment year 1971-72, which shows that the assessee has started production during the accounting year relevant to the assessment year 1971-72 (sic). ..... , have to see whether the manufacturing activity which was admitted for this accounting year took place before 31-12-1970, or not. ..... now the accounting year of the company is the ..... , for the department, submitted that there is an evidence to show that the assessee-company had started manufacturing activity in the course of the accounting year 1970-71. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)4ITD62(Pune.)
..... this is an assessee's appeal preferred against the order of the aac and two grounds are raised: (7) that the aac erred in rejecting the claim of the assessee under section 54(1) of the income-tax act, 1961 ('the act'), and that the benefits of section 54(1) are available to a huf also, and (2) that the aac erred in holding that the capital gain arising on transfer of bungalow is a short-term capital gain.2. ..... the high court held as under: the word 'assessee' as defined by section 2(7) of the income-tax act, 1961, includes every person who is a 'unit of assessment' and the definition of 'person' in section 2(31) is wide enough to include every artificial juridical person including a huf, a partnership firm, etc. ..... it is held in that case "section 54 of the income-tax act, 1961 deals with the profit on sale of property for residence. ..... the supreme court held as under: the only intention of the legislature in enacting section 16(3) of the indian income-tax act, 1922, was to include the income derived by the wife or a minor child in the computation of the total income of the husband or the father, as the case may be, for the purpose of assessment. ..... it is no doubt true that since past years there is an appreciation in price of land and, therefore, it is desirable that the correct value of the plot should be determined first and then the cost of construction to be taken into account and then considering these two, the correct profit or capital gains has to be arrived at.29. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)3ITD553(Pune.)
..... no notice under section 139(2) of the income-tax act, 1961 ('the act'), was also served on him ..... the learned ito is not justified in initiating the proceedings under section 147 and issuing the notice under section 148 of it act, 1961. ..... a suitable case where this independent provision does not conflict with the notice served by the ito, the assessee can certainly file his return of income at any time within the time provided and if the income is negative being loss, the assessee could have the benefit of carry forward of the loss. ..... it cannot, therefore, be held that a return is filed in response to one particular section which is voluntary and not another which is obligatory and actually a validly filed return should be considered for one purpose but ignored for any other purpose ..... the facts and circumstances of the case, appellant pays, that the return submitted by him may please be treated as return submitted by him under section 139(4) and prays that, the loss as declared in the return may please be determined and be allowed to be carried forward to set-off against future income. 4. ..... the return filed on 8-8-1979 has therefore to be presumed clearly as being filed in response to a notice under section 148 and if this be so, the commissioner (appeals) could certainly not have given a direction to the ito to compute the losses and carry them forward as that would be beneficial to the assessee and against the clear decision of the supreme court in anglo-french textile's case (supra). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1984)8ITD1(Pune.)
..... on 10-3-1978 the ito started the penalty proceedings under section 271(1)(c) of the income-tax act, 1961 ('the act') on the following: in view of the aac's decision for the year under consideration and the provisions of the newly introduced explanation 2 to section 271(1)(iii) of the act, penalty proceedings are initiated in terms of explanation read with section 27(1a) for concealment of income. ..... for the assessment year 1972-73 there were additions made to the total income on account of certain cash credits not accepted as genuine. ..... 10,000 as income from undisclosed sources on account of cash credits not accepted as genuine.the matter went on appeal and by his order dated 17-9-1977, the aac reduced the income by rs. ..... 9,000 has been spent by the assessee and ask for the assessee's for the source of such explanation expenditure ; naturally the assessee cannot have any explanation because the money has come into existence only on account of the addition made by the ito. ..... it deserves to be noted that explanation 2 will automatically be applicable because when once the ito makes an addition to the goods account, that much of money is added to the income of the assessee. ..... whenever the ito on account of the incompleteness of the assessee's set of accounts makes an addition to the goods account, it would automatically follow that explanation 2 would be invoked in a subsequent year. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)4ITD243(Pune.)
..... thereafter, the ito issued notices under section 148 of the income-tax act, 1961 'the act', for the assessment years under appeal and by orders dated 24-7-1979, the ito determined total income of the assessee for each of the years as against losses returned by the assessee as indicated in the ..... , therefore, tried to draw a distinction between the losses which are claimed in pursuant to the returns filed volunarily and setting off of those losses in course of regular assessment under section 143(3) of the act, and the claim of setting off of losses when action under section 148 was taken. ..... shri sathe submitted firstly that the said decision was rendered while interpreting the provisions of section 22(3a) of the 1922 act and had no application to the facts of the present case. ..... was no provision analogous to section 80 under the 1922 act and finally according to the facts as set out in the madras decision cited supra, returns' under section 22(3a) were filed in time ..... , section 80 of the act provides that an assessee would be entitled to set off and carry forward such losses as are determined by the ito in pursuance to the returns filed by it.returns have to be filed in accordance with the provisions contained in section 139(3) or section 139 ..... to 1973-74 on the basis of returns filed by it on 4-10-1978 voluntarily.the ito rejected the claim of the assessee on the ground that the returns for the said years were barred by limitation prescribed under section 139(3) and 139(4) of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)5ITD102(Pune.)
..... it was made compulsory, then perhaps such contribution would be treated as income of the trust and, therefore, taxed, with the result that the trust may have very little income for welfare activities. ..... the sum transferred was arrived at upon the actuarial calculations and it was the sum which was thought necessary to enable past years of services of the existing staff to be taken into account for the purpose of pension, ft was held that the sum was not an admissible deduction in arriving at the company's profits being a capital ..... we are equally clear in our mind that section 14 of the transfer of property act does not apply to the facts of the ..... this excess provision had been written back to the accounts in the accounting year ended 30-6-1976 which is assessable for the assessment year ..... no doubt, the amount is contingent and at the time when the provision is made in the accounts it is merely on the basis of an ..... his case is that unless a requirement of such an expenditure is shown to be in existence during the accounting year, the contributions cannot be considered as business expenditure. ..... such a method is followed uniformly for all the years, it will not be reasonable to meddle with it and make adjustments in the accounting year itself. ..... funds had been utilised for the welfare of the employees as the accounts for the subsequent accounting years would show. ..... they have followed a system of accounting of providing for such expenditure consequent to the warranties on sale on a provisional .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
Reported in : (1983)5ITD449(Pune.)
..... by deducting from the gross profits for the year, all interest accrued and accruing in accounts which are overdue establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the payment of bonus act, 1965 and equalisation fund for such bonus, provision for payment of income-tax and making approved donation under the income-tax act, 1961 provision for payment of contribution to education fund of the state federal society which ..... making the claim under two distinct heads as an expenditure under section 37 of the income-tax act, 1961 ('the act') and on account of a diversion by an overriding title, the learned counsel has pointed out that the expenditure incurred in the present case is not a capital expenditure. ..... (6) the state government may make rules regulating all matters connected with or ancillary to the custody and maintenance of, the payment of moneys into and the expenditure and withdrawal of moneys from, the said fund.the contribution to the education fund of the state federal society is referred to in section 68. .....
Tag this Judgment!