Court : Orissa
Reported in : AIR1949Ori60; [1949]17ITR256(Orissa)
..... the operation of buying is doubtedly an essential part in the business of trade, but on that account can it be held that a portion of the profits of the business accrued or arose at the place of buying ?the expressions 'accrue' and 'arise' occuring in section 4 of the indian income-tax act have been the subject of much judicial interpretation but for the purpose of this judgment it may be judicial interpretation but for the purpose of this judgment it may be assumed that they both denote the same ..... he further contended that buying is an important part of operation in the business of trade and that the income-tax authorities should have estimated that portion of the profits which accrued or arose in the states and applied the provisions of sub-section (3) of section 42 of the indian income-tax act for calculating the profits that might be deemed to have accrued in british india. ..... (2) whether section 42(3) of the income-tax act is applicable to the facts of the case the assessees headquarters is at cuttack and he has been assessed to income-tax for the year 1943-44 in respect of his dealings in (a) nux vomica and (b) hides, horns, bones etc. ..... as regards the second question of the tribunal sub-section (3) of section 42 of the indian income-tax acd will not be applicable to the present case in view of my opinion to the effect that no part of the profit of the business accrued or arose in an indian state.the assessee should pay the cost of this reference, standing .....
Tag this Judgment!Court : Orissa
Reported in : [1949]17ITR282(Orissa)
..... by the income-tax appellate tribunal, madras bench, under section 66(1) of the income-tax act. ..... , namely, that raghunaths death was not stated in the body and that the partners, as named in the deed before him, did not all personally sign.the order of the income-tax officer was confirmed by the appellate income-tax authority as well as by the appellate income-tax tribunal. ..... the original deed, without any alteration, had been produced, and the income-tax officer being of opinion that the renewal of registration has to be granted by an endorsement on the partnership deed had refused the renewal on the ..... by we cannot conclude that such trivial deficiencies would vitiate the application.the learned standing counsel contends that the words 'and by the legal representative of any such person who is deceased' in the rule should govern the latter of the alternative cases contemplated in the rule, namely, that which governs the ..... section 66(1) agreed to state a case as above and referred to us the question formulated as 'whether under the facts and circumstances of the case the application for renewals of registration was defective and liable ..... the place of the deceased partner whose status devolves upon him.in consideration of what i have said above, i would answer the question in the negative holding that in the facts and circumstances of the case, the application for renewal of the registration was not defective and should not have been rejected.the application is allowed with costs. .....
Tag this Judgment!Court : Orissa
Reported in : AIR1952Ori109
..... 8675/-is not allowable either as a trading loss or as an expenditure laid out or expended wholly and exclusively for the purposes of the business within the meaning of section 10(2) (xv) of the income-tax act.11. ..... , before dealing with question of law observed 'in my opinion the decision of the commissioner of income-tax that the loss (by theft) did not occur in the year of accounting (1932-33) is fatal to the contention of the assessee'. ..... it cannot be said that the theft which occurred after the close of the shop was committed by the accountant in the course of his employment or else that the theft was incidental to the conduct of the business. ..... mohanti's mam contention is that the theft was commuted by the accountant was an employee of the assesses and that there was no material distinction between embezzlement by an employee of an assessee or by theft by such an employee so far as deduction for the purpose of estimating the profits is concerned. ..... but the loss did not occur in the year of accounting and consequently it was unnecessary to consider whether the loss was deductable from the total profits. ..... 8,675/- in respect of the accounting year commencing from 21-10-1941 and ending on 8-12-1942 on the ground that the said sum was stolen from the iron-safe inside his shop by one jhaharmal who was a relation of the assessee and who was also working as the accountant of his firm during the year in question. .....
Tag this Judgment!Court : Orissa
Reported in : 15(2009)CLT94; [1949]17ITR247(Orissa)
..... 675 is not allowable either as a trading loss or as expenditure laid out or expended wholly and exclusively for the purposes of the business within the meaning of section 10(2)(xv) of the income-tax act.the assessee should be pay costs to the commissioner of income-tax.hearing fee is fixed at rs. ..... before dealing with question of law observed : 'in my opinion the decision of the commissioner of income-tax that the loss (be theft) did not occur in the year of accounting (1932-33) is fatal to the contention of the assessee. ..... it cannot be said that the theft which occurred after the close of the shop was committed by the accountant in the course of his employment or else that the theft was incidental to the conduct of the business ..... mohantis main contention is that the theft was committed by the accountant who was an employee of the assessee and that there was no material distinction between embezzlement by an employee of the an assessee or by theft by such an employee so as deduction for the purpose of estimating the profit is ..... but the loss did not occur in the year of accounting and consequently it was unnecessary to consider the whether the loss was deductable from the total ..... 8,675 in respect of the accounting year commencing from october 21, 1941, and ending on december 8, 1942, on the ground that the said sum was stolen from the iron safe inside his shop by one jauhar mal who was a relation of the assessee and who was also working as the accountant of his firm during the year in .....
Tag this Judgment!Court : Orissa
Reported in : AIR1952Ori89
..... arises out of two applications, consolidated, because of the facts being identical, by the commissioner of income-tax, excess profits tax, bihar and orissa, under section 66 (1) of the income-tax act read with section 21 of the excess profits tax act for stating a case and opinion of this court on the following (three) questions of law: (1) whether in the circumstances of the case, the tribunal was right in asking the income-tax officer to assess the assessee on receipts basis with regard to contracts carried on and completed during the year of account? ..... in the strongest possible case with which their lordships of the judicial committee were dealing their lordships answered the question--'whether, in view of the provisions of section 13 of the income-tax act or otherwise, the income-tax officer was right in computing for the purpose ofsection 10 of that act income, profits and gains, in accordance with the method of accounting regularly employed income, profits and gain. ..... it is well-settled in law that the words 'accrue and arise' used in section 4 of the income-tax act -- the section that defines income in the previous year (accounting year) -- are of the same import except that the use of one or the other may be more appropriate in the facts of any ..... down by their lordships of the privy council, any method of accounting adopted by the income-tax officer acting under the proviso of section 13 can be rejected if the method in fact does not show the true income, profits and gains. .....
Tag this Judgment!Court : Orissa
Reported in : [1949]17ITR355(Orissa)
..... lordships answered the question, 'whether, in view of the provisions of section 13 of the income-tax act or otherwise the income-tax officer was right in computing for the purpose of section 10 of that act, the income, profits and gains in accordance with the method of accounting regularly employed by the assessee, when that method in fact does not show the true income, profits and gains', in the negative.in dealing with the question involved in the width of the income-tax officer discretionary power of assessment in the cases of default of the assessee ..... either under section 23(4) or section 13, proviso, vis-a-vis the appellate tribunal power .....
Tag this Judgment!Court : Orissa
Reported in : AIR1949Ori53; [1949]17ITR420(Orissa)
..... - this arises out of an application made to this court, under sub-section (3) of section 66, indian income-tax act, 1922, complaining against the correctness of the appellate tribunal decision dated november 9, 1948, that the assessee application, under section 66(1), to the tribunal to refer a question of law said to arise out of its order dated november 19, 1947, was time-barred by 3 days, and that the tribunal has no powers to condone the delay. ..... the law, on the point, consists of the sub-section (1) and (3) of section 66 rules 7 and 8 read with rule 36 of the income-tax appellate tribunal rules, 1946. ..... to complete the picture of he analogy in the instant case, we have at one end the tribunal sending notice of its order to an assessee or the income-tax commissioner as the case may be, and at the other end the latter manifesting his reaction either by accepting the validity of the order or by challenging the same and requiring the tribunal to state a case and refer it to the high court. ..... it would be height of absurdity to contend that an assessee cannot be deemed to have made an application under sub-section (1) of the section when he presents the same to the bench whose order he requires to impugn and the latter accepts it.considering in the premises above, this court is not satisfied of the correctness of the appellate tribunal decision rejecting the application of the assessee under sub-section (1) of section 66 of the act on the ground that it is time-barred. .....
Tag this Judgment!Court : Orissa
Reported in : AIR1950Ori47
..... both under the central income-tax act as also under section 49 of the impugned act, the centre is the same and only the circumferences different and that to allow the provinces to impose a levy under the name of a fee even for the limited purposes of raising an ear-marked fund for a provincial subject would, in effect, result in imposing double income-tax on the individual affected. ..... judicial committee say :'it is not necessary for their lordships to determine whether, if a special fund had been created by a provincial act for the maintenance of the administration of justice in the provincial courts, raised for that purpose, appropriated to that purpose, and not available as general revenue for general provincial purposes, in that case the limitation to direct taxation would still have been applicable.'36 ..... secured is by appointing a statutory authority in the person of a commissioner under section 7 of the act and by vesting in him various large supervisory and administrative powers over the endowments and by providing the funds for his functioning by means of section 49 of the act, and by providing compulsory audit under section 21 and also providing for the payment of the auditor under section 24. ..... point out that: 'a legislature which passes a law having extraterritorial operation may find that what it hag enacted cannot be directly enforced, bat the act is not invalid on that account and the courts of its country must enforce the law with the machinery available to them.'53. .....
Tag this Judgment!Court : Orissa
Reported in : AIR1950Ori140; 16(1950)CLT45
..... with respect i would agree with the later bombay view and hold that if certain property is attached before judgment in a money suit that property will not be the subject-matter of the suit or of a proceeding as contemplated in clause (vi) of sub-sections (2) of sections 17, registration act, registration is therefore compulsory for creating such a charge even in a compromise petition and in the absence of such registration the plaintiff cannot claim any preferential right ..... , in any case, the plaintiff's preferential claim in respect of the disputed house must fail because under section 8 (b), b & o public demands recovery act from the date the service of the notice under section 7 of that act a charge is created in respect of all the property of the certificate debtors and all other charges created subsequently are postponed to that charge. ..... certificate case arose in conaquence of a certificate filed by the income-tax authorities on 10th march 1934 against gadadhar sahu for realisation of income-tax dues with penalty. ..... 137 of 34 was not a valid charge because it was not created by a registered instrument nor was it incorported in the operative part of the compromise decree ; and (iii) in any case the suit was barred by limitation by virtue of article 12, limitation act inasmuch as it was not brought within one year from the date on which the collector on appeal maintained the order of the certificate officer rejecting the claim of gadadhar's three brothers satyabadi sahu, madan .....
Tag this Judgment!Court : Orissa
Reported in : AIR1950Ori191; [1950]18ITR383(Orissa)
..... it may therefore follow that if the disruption has taken place in the course of the accounting year, a major or substantial portion of the income would escape assessment by virtue of section 14, income-tax act. ..... for instance, an item of property may not at the time be in the possession of the family, an item of property may be required to be kept in the possession of one of the female members of the family for maintenance during her lifetime, to be divided between the members thereafter, an item of property in the nature of a family true in which the members have rights, either of trusteeship or of beneficial enjoyment of the surplus may have to be kept joint as a matter of ..... of the parties deem it convenient or possible to so, it is stated to us that item 1 in schedule (e) is a plot on which the family, house is situated and in which the various parties live in separate portions as a matter of family convenience, though there has been no partition by metes and bounds and also that item 2 in schedule (e) is a land on which the swastika rice mill and its appurtenances stand and that it is an item of partnership asset according to the partnership-deed between the parties relating to this mill, expressly .....
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