Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)8SOT50(Mum.)
..... (appeals) erred in not holding that the profits and gains (whether "capital gains" or "income from business") arising on sale of the undertaking was not eligible for deduction under sections 80hh and 80-i of the income tax act. ..... held for more than 36 months, the sum is a long-term capital asset within the meaning of section 2(29a) read with section 2(42)(a) of the income tax act and the assessee worked out the long-term capital gain arising on sale of undertaking at rs. ..... considered the provisions of section 50 of the income tax act vis-a-vis section 50b of the income tax act, which covers slump sale ..... such there is no transfer of business undertaking but only the sale of certain assets by the assessee-company, though the agreement is for the sale of undertaking as a going concern and gains on such sale is to be taxed as short-term capital gains under section 50 of the income tax act.we have heard the rival submissions and perused the record. ..... intention between the parties is that the entire undertaking with all its assets and liabilities, rights and obligations exclusively secured ind unsecured loans, current assets and current liabilities shall in terms of this agreement to be sold ..... of agreement and particularly para 1 thereof, it is clear that the entire undertaking with all its assets and liabilities, rights and obligations, exclusively secured and unsecured loans, current assets and liabilities were transferred to the purchasers. ..... section 50 and section 50b are mutually exclusive .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1988)25ITD479(Mum.)
..... the tribunal in regard to the point as to whether the aac was justified in setting aside the assessment and directing the ito to re-do the assessment and further whether the question of assessing the profits under section 41(2) of the income-tax act, 1961 in the hands of a holding company arises in case of sale by a holding company as a going concern to its hundred per cent subsidiary company. ..... paragraph 10 of the proposed scheme of amalgamation found in the statement dated 4-6-1982 prepared under section 393(1)(a) of the companies act, 1956, recorded the following position ..... on the contrary, the cit(a) states in para 7 of his order that the assessee has entered into a scheme of amalgamation with ambalal sarabhai enterprises limited as on 4th june, 1982 and has proposed to transfer the lands and immovable properties to the said ambalal sarabhai ..... then, put the vendee in full possession of the above industrial undertaking and businesses so much so that the vendee ran the said industrial under taking and the businesses to the total exclusion of the assessee from 1-3-1977. ..... as late as 4-6-1982 the assessee entered into a scheme of amalgamation with ambalal sarabhai enterprises ltd. ..... december 1985(vi) central government approved the scheme january 1987(vii) the gujarat high court ..... an amalgamation scheme was initiated which resulted in the assessee's amalgamation with ambalal ..... in this series of transactions is represented by the amalgamation brought about under a scheme of amalgamation. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2005)4SOT757(Mum.)
..... " "recovery of tax interest notice of demand entire demand satisfied within time-appeal from assessment order allowed - refund with interest order of commissioner set aside by tribunal - original demand notice does not survive-interest cannot be charged from date of original demand notice-income tax act, 1961, section 220(2).interest is payable if a sum is ..... the department demanded interest under section 220(2) of the income tax act, 1961, on the tax assessed for the period commencing from the date of refund of the tax upon the appellate order till the date the taxes were finally paid after disposal of the ..... decisions support this proposition; the mere non-mention on the part of the income tax officer in the assessment order, of penal interest under section 217(1) of the income tax act, 1961, for failure by the assessee to file an estimate of advance tax and pay advance tax as required by section 212(3), cannot lead to the assumption that the income tax officer had waived the levy of penal interest. ..... 72), inter alia, that the object of section 234a of the income tax act, 1961, was not to penalise the assessee, who had already filed a return under section 139, for not producing accounts or documents and so on pursuant to notice issued under clause (ii) or (iii) of section 142(1), and that no interest could be levied under section 234a for such failure, and that under explanation 4 to section 234a interest was to be levied with respect to the income declared in the return and not the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)4ITD706(Mum.)
..... thus, he stated that while the provisions of section 139(8) specifically provide for exclusion of advance tax from the 'tax payable' determined on the regular assessment, in section 271(1) of the income-tax act, 1961 as it then stood, the term 'tax, if any, payable by him' called for being interpreted judicially to make it clear that the concept of the term 'tax payable' implied deduction of advance tax and tax deducted at source, from the gross tax determined. ..... required an answer was whether the advance tax paid under section 210 of the income-tax act, 1961, and shown on the assets ..... , the advance tax paid under section 210 of the income-tax act, 1961, and shown on the assets side of the balance sheet of the said company cannot be deducted from the tax payable in determining whether the provision for taxation is in excess over the tax payable with reference to the book profits in accordance with the law applicable thereto within the meaning of clause (ii)(e) of explanation ii to rule 1d of the wealth-tax rules, 1957 he stated that the express issue for which the question .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD87(Mum.)
..... apart, we have quoted extensively from the observations of the andhra pradesh high court in visakhapatnam port trust's case (supra) about the extent and scope of applicability of section 5 and section 9 as also the charging section 4 of the income-tax act, 1961. ..... the tribunal had considered that these payments partook the nature of 'royalty' having due regard to the definition in section 9(1)(vi) of the income-tax act, 1961 which was also the provision relied on by the cit (appeals) in this year in paragraphs 13, 14 and 20 of ..... in fact the doable taxation avoidance agreements which have been entered into by the central government under section 90 of the income-tax act, 1961 also provide that the laws in force in either country will continue to govern the assessment and taxation of income in the respective country except where provisions to the contrary have been made in the agreement. ..... dastur, the learned counsel for the assessee, went on to elaborate that explanation 2 to section 9(1) of the income-tax act, 1961 on which reliance was placed by the authorities below could not be called in aid by the revenue for considering whether any of the amounts were taxable or ..... which the assessee reserved to itself, he stated, was adequate to hold that even where right to patents was not transmitted payments made for the right to use the know-how which was exclusively in the knowledge of the assessee would amount to royalty.32. ..... meaning, it was submitted looking to the scheme of the d.t.a. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1991)38ITD528(Mum.)
..... in the income-tax act, 1961 'perquisite' has been included as part of salary under section 17(1)(iv) of the act and is defined to include, under subsection (2), the value of rent-free accommodation provided to the assessee by his employer, the value of any concession in the matter of rent respecting any accommodation provided to the assessee by his ..... therefore, hold that the contention of the assessee that perquisite could not be assessed unless it is convertible into money or moneys worth is not applicable under the income-tax act, 1961 and the assessee would be liable to tax on the amount of the food borne by the employer in his assessment.8. ..... the income-tax act, 1961 has adopted the value of certain facilities, benefit or amenity provided to an employee including the amount payable by the employer on behalf of the assessee.to feed oneself is personal obligation of the employee-assessee and when that ..... the two other cases were rendered under the indian income-tax act, 1922 where also the term 'perquisite' has not ..... having offered and assessed the income from the employer under the head 'salary' for the entire period, the assessee would not be justified in taking the plea that there was no employer-employee relationship up to ..... 2,000 per month for the period from 21-9-1981 to 31-3-1982, as the food expenses for the period prior to 21-9-1981 could not, in his opinion, be treated as ..... for the period from 1-4-1981 to 31-3-1982, the food charges were ..... 49,208 from the assessment of the .....
Tag this Judgment!Court : Mumbai
Reported in : 2003(2)BomCR56; (2003)2BOMLR184; [2003]260ITR6(Bom); 2003(2)MhLj963
..... whether the impugned attachment was in consonance with the provisions of section 226(5) read with the third schedule to the income-tax act, 1961, is the issue, which arises for determination in this case. ..... 3 issued under section 226(5) read with the third schedule to the income-tax act, 1961, under which the deputy commissioner of income-tax--respondent no. ..... that the three investment companies were advised to convert the shares, held as stock-in-trade, into investment because if the shares are so transferred from the three investment companies to the petitioners as stock-in-trade, then there was an apprehension that the department would bring to tax, the difference between the market value and the book value of the shares as business income under section 28 of the income-tax act. ..... under section 281 of the income-tax act, it is, inter alia, laid down that where, the during pendency of proceedings under the act or after the completion thereof, but before the service of notice under rule 2 of the second schedule, an assessee creates a charge or parts with the possession of any assets in favour of any other person, then such charge or transfer shall be void as against any claim in respect of tax due from the assessee as a result of the completion of the proceedings or otherwise. ..... ramsay [1981] 2 wlr 449 was that one must consider fiscal consequences of a pre-planned series of transactions and one has not to dissect the scheme and consider individual stages separately. .....
Tag this Judgment!Court : Mumbai
Reported in : (1965)67BOMLR413; [1965]58ITR40(Bom); 1965MhLJ640
..... he points out that the scheme of the gift-tax act allowing exemption from tax in respect of gifts and donations made out of property of the assessee for charitable purposes is the same as under the income-tax act for exemption of income-tax for donations and gifts of income made for such purposes. ..... he has, therefore, invited our attention to section 15b of the indian income-tax act and has urged that having regard to the provisions of that section there can be no doubt whatsoever that the initial gifts made out of income for the purpose of constituting or crating charitable funds would not be entitled to exemption from gift-tax. 14. ..... the same is the position under the gift-tax act and it is only gifts or donations, which are made to institutions or funds to which the provisions of section 15b of the income-tax act apply that are permitted exemption from gift-tax. ..... thirdly, according to him, it is only where a gift is made to an existing charity, fund or institution, which possesses the qualifications specified in section 15b of the income-tax act that it is exempted from gift-tax. ..... we do not want to consider what would be the position under the indian income-tax act, though we are by no means satisfied that the provisions of that section are even prima facie so clear that under the indian income-tax act no exemption of gifts of income for the creation or constitution of a charitable fund will ever be allowed. .....
Tag this Judgment!Court : Mumbai
Reported in : 2000(4)BomCR313
..... the scheme of the income-tax clearly indicates that liability to pay income-tax chargeable under section 4(1) of the act does not depend upon the assessment being made by the income-tax officer but, it depends on the enactment of the finance act prescribing rate/rates for any assessment year. ..... it was contended that under the income-tax act, it was possible to work out tax liability arising out of such security transactions pertaining to the statutory period and only to that extent section 11(2) would apply. ..... in cases where the custodian is of the view that as of the date of judgment of this court, 5% of the paid up capital is not reached from the registered shares available with the custodian, but that in future the said ceiling likely to be attained from unregistered shares/benami shares or from shares to be traced out in future, then in that event the custodianshall submit his report to the court for keeping aside the shares of particular notified parties in a company. ..... hence, this court has held that all claims pertaining to the attached properties would fall within the exclusive jurisdiction of the special court. ..... in any event, he urged that the sale of controlling block of shares should come before the court and the court should not permit the sale of controlling block of shares exclusively by the disposal committee. ..... the above number is exclusive of 'non-tradable shares'. .....
Tag this Judgment!Court : Mumbai
Reported in : AIR1951Bom297; (1951)53BOMLR86
..... the scheme of section 25 seems to be that it deals under sub-section (1) with the case of a business which is discontinued & which has not been subjected to double taxation having paid tax under the provisions of the income-tax act, 1918, & the provision of sub-section (1) is that if a business is discontinued in the middle of a year, then the business which is discontinued has to pay tax both with regard to the whole of its previous year & also for the broken ..... & was taxed under the provisions of the income-tax act, 1918 ..... section (4), with which we are concerned, it deals with a business which had paid tax under the income-tax act, 1918, & that sub-section deals not so much with the mode of taxing a business which is discontinued as with giving relief to a business from ..... the relief in this case to which the joint hindu family would be entitled to is that it will not be liable to pay any tax in respect of the income, profits & gains of a period which consists of the end of the previous year & the date of succession. ..... we must answer the first part of question (1) as follows : that the income of the assessee is exempt from 17-10-1944, till 18-10-1944, & section 25 (5) does not apply to this relief under section 25 (4). ..... section 25 (5) provides that no claim to the relief afforded under sub-section (3) or (4) shall be entertained unless it is made before the expiry of one year from the date on which the business, profession or vocation was discontinued or the ..... be anything from one day .....
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