Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1985)11ITD626(Kol.)
..... ito invoked the provisions of section 64(1)(i)of the income-tax act, 1961 ('the act'), and included the share income of the wife of the assessee from the said firm in the total income of the assessee.9. ..... since the firm was engaged in professional activities, and since section 64(1 )(i) refers only to business, the share income of the wife could not be included in the income of the husband.reliance was placed on the decision in the case of cit v. dr. ..... any case, he urged, the income-tax rules were only directory and not mandatory ..... also urged that the aac erred in admitting new evidence in the form of the certificate from the excise authorities without following the procedure laid down in rule 46a of the income-tax rules, 1962 ('the rules').11. ..... case, business has been distinguished from profession and it was held that the income arising out of professional activities do not come within the purview of section 64(1)(i), while the income arising out of non-professional business activities do come within the purview of section 64(1)(i). ..... other hand, the income arising out of selling drugs to the patients or charging room rent from the patients are business income which is hit by section 64(1)(i). ..... more precise, it was held that the income arising out of the activity of treating the patients was professional income outside the purview of section 64(1)(i). ..... appealed to the aac and contended that the ito erred in applying the provisions of section 64(1)0") to the facts of the assessee's case. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1985)13ITD56(Kol.)
..... the assessee-company claimed relief under section 80j of the income-tax act, 1961 ('the act') in respect of its new industrial undertaking and was given relief under section 80j. ..... cit [1980] 126 itr 648. ..... the learned authorised representative for the assessee, on the other hand, supported the order of the commissioner (appeals) and laid emphasis on the use of the word 'concern' occurring in part i of appendix i of the income-tax rules, 1962 ('the rules'), in clause (iv), relating to extra shift depreciation allowance under the head 'machinery and plant'. ..... 10/83/69-it (a-11), dated 28-9-1970--see taxmann's direct taxes circulars, vol. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1985)13ITD32(Kol.)
..... pgnatale [1980] 124 itr 391, wherein the high court held that the living allowance paid to some foreign technicians was not a perquisite within the meaning of section 17(2) of the income-tax act, 1961 ('the act'), as the allowance paid was in the nature of reimbursement and did not give rise to any personal advantage and, consequently, could not be included in the computation of salary income of the technicians. ..... the high court answered the question in the negative as under : in our view, if the tax paid by the employer is to be added to the salary of the employee as a perquisite under section 17 of the income-tax act, 1961, then it must fulfil the characteristics of a perquisite as laid down in the section. ..... cit [1971] 79 itr 514, wherein it was held that the payment of tax made under a statutory obligation because the assessee was in default in not deducting the tax at source at the time of making payments to a non-resident, could not constitute expenditure laid out for the purpose of the assessee's business within the meaning of section 10(2)(xv) of the indian income-tax act, 1922 ('the 1922 act').in his counter reply, the assessee's learned counsel stated that the supreme court ..... the learned counsel for the assessee did not dispute that the bank guarantee is in the usual proforma that is generally submitted before the income-tax authorities under section 230. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1985)13ITD351(Kol.)
..... the assessee claimed standard deduction under section 16(i) of the income-tax act, 1961 ('the act') against the salary income. ..... relying upon the clauses of the partnership deed and referring to sections 40(b) and 67(a) and (b) of the act, he urged that the salary earned by the assessee may be the income of the firm, but it is always in the nature of salary to the partner, and, therefore, the assessee was eligible for standard deduction. ..... even if the clauses of the partnership deed and the said provisions are taken into consideration, it is clear that the income by way of salary was received by the assessee from the firm from which he was only entitled to profit. ..... a reference to the provisions of section 40(b) and section 67(b) would show that any interest, salary, commission or other remuneration paid to any partner in respect of the previous year as apportioned to the partner under clause (a) of section 67, is a profit and shall be treated as the partner's share in the income of the firm. ..... in income-tax law a firm is a unit of assessment, by special provisions, but is not a full person. ..... thus, the salary income shown by the appellant which has been assessed as such is not entitled to the benefit of standard deduction under section 16(i). ..... the ito, is, therefore, directed to rectify the assessment by including the salary income under the head 'profits and gains of business or profession'. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)16ITD160(Kol.)
..... , wherefrom it would be clear that expenses claimed by the assessee have been allowed, without proper verification, as also my earlier order under section 163 of the income-tax act, 1961, dated 25-4-1984 for the assessment year 1979-80, in the instant case, i hold that the assessment for the assessment year 1980-81, completed under section 143(1) of the income-tax act, 1961, is erroneous, being prejudicial to the interests of revenue, for which the said assessment is hereby set aside, with directions to the ..... the assessee is in appeal against the order of the commissioner under section 263 of the income-tax act, 1961 ('the act'). ..... from clauses (1)(a) and (1)(b) of explanation to section 143 which runs as follows : (1) an assessment under sub-section (1) shall be deemed to be incorrect, inadequate or incomplete in a material respect, if- (a) the amount of the total income as determined under sub-section (1) is greater or smaller than the amount of the total income on which the assessee is properly chargeable under this act to tax ; or (b) the amount of the tax payable as determined under sub-section (1) is greater or smaller than the amount of the tax properly payable under this act by the assessee ; or the assessee .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)18ITD230(Kol.)
..... the matter was carried in appeal before the aac who was of the view that even though the income had accrued outside india since it was received in india it had to be taxed in the case of the assessee, a non-resident by virtue of section 5(2) of the income-tax act, 1961 ('the act'). ..... cit [1956] 29 itr 229, their lordships of the calcutta high court were dealing with a case under the indian income-tax act, 1922 ('the 1922 act')- it was held that section 7(1) of the 1922 act does not give an option to the ito to assess the income in the year of accrual or in the year of receipt according to his choice. ..... the income-tax authorities treated the assessee as the statutory agent of the japanese company under section 43 of the 1922 act and assessed the amounts which were so credited in the assessee's books to the japanese company as income received by the japanese company in india. ..... now, section 15 says that : the following income shall be chargeable to income-tax under the head 'salaries'- (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not ; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him ; and (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)18ITD318(Kol.)
..... appeal by the revenue is that the commissioner (appeals) erred in accepting the contention of the assessee that at the relevant time, the assessee entertained a bonafide belief that it was not obliged to file the estimate under section 212(3a) of the income-tax act, 1961 ('the act') and that constituted a reasonable cause for failure to furnish the estimate under section 212(3a) and thereby the commissioner (appeals) erred in cancelling the penalty levied by the ito under section 273(c) of the ..... it was also contended that the ito made no attempt to ascertain whether the tax payable on current income was likely to exceed the advance tax demanded by more than one-third of the demand and in the absence of such investigation, the ito erred in inferring that the assessee's case fell within the mischief of section 273(c) relying on the decision in the case of p.v. ..... in compliance there with, the assessee paid two instalments.on 17-2-1971, the order under section 210 of the act was revised under section 210(3) purportedly on the basis of the tax paid under section 140a of the act for the assessment year 1970-71. ..... 4,14,313 and as the tax under section 140a was paid on 3-4-1970 the demand for the financial year 1970-71 should have been based on the returned income for the assessment year 1969-70 in accordance with the provisions of section 209(d)(i)of the act.6. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)18ITD236(Kol.)
..... appeal by the assessee is directed against the order of the commissioner as passed under section 263 of the income-tax act, 1961 ('the act'). ..... kochuvareed [1976] 103 itr 799 which related to the revisional order of the commissioner under the kerala agricultural income-tax act, 1950, related to excessive allowance allowed by the assessing officer in respect of expenses incurred by the assessee. ..... the commissioner invoked section 263 by holding that the investment in shares was made by the assessee as an investor and not for selling the shares at profit and, therefore, the income tax officer erred in not taking into account the provision of section 46(2).as the income tax officer has not at all taken into account for consideration the amount received by the assessee from the liquidator keeping in view the provision of section 46(2), the commissioner was justified in invoking his ..... argument, has also pointed out that it was wrong for the commissioner to say that the interest borrowing should also be taken into account in working out the expense or relief for the purpose of section 80m, read with section 80aa, as according to the assessee, the increase in investment was not necessarily relatable to increase in the borrowing as increase in the shareholding was also due to the fact that the bonus shares were ..... achi [1977] 109 itr 126 has held on the facts of that case that section 46(2) is a charging section, but it will apply only in relation to the companies as defined in section 2(17). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)18ITD480(Kol.)
..... by the revenue in which it is contended that the commissioner (appeals) erred in holding that both the conditions of section mentioned in section 79 of the income-tax act, 1961 ('the act') must be cumulatively satisfied before the benefits of set off of losses of the earlier years can be denied to ..... while dealing with the includibility of income under section 16(3)(a)(iii) of the indian income-tax act, 1922.17. ..... of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred ; or (b) the income-tax officer is satisfied that the change in the shareholding was not effected with a view to avoiding or reducing any liability ..... besides, the ito has stated that in the circumstances, the assessee has tried to avoid or reduce the tax liability because the assessee-incoming shareholders owed very small amount to the mehra group before the take-over, vis-a-vis, the amount of liability of ..... of the section, it is apparently clear that in spite of any thing contained in chapter vi of the act where a change has taken place in shareholding in the case of a company in which the public are not substantially interested, no loss incurred in the earlier year shall be carried forward and set off against the income of the relevant ..... section 79 was added in the 1961 act ..... report of the select committee of the india tax bill, 1961, para 41, in order to bring to light the purpose for introduction of clause (b) to the above section. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1986)19ITD570(Kol.)
..... it was contended by the authorised representative for the assessee-company that the amount was actuarially determined and is allowable deduction under section 37(1) of the income-tax act, 1961 ('the act'). ..... contingent liabilities do not constitute expenditure and cannot be the subject matter of deduction even under the mercantile system of accounting.expenditure which is deductible for income-tax purposes is towards a liability actually existing at the time but setting apart money which might become expenditure on the happening of an event is not expenditure. ..... it was sought to be contended by the authorised representative for the assessee that rule 8 of the income-tax rules, 1962 is ultra vires the constitution because of the provisions in articles 246(1), 270 and 366 of the constitution. ..... the first ground in the assessee's cross-objection relates to non-exclusion of total business income of the assessee-company from the tea estates in the state of west bengal. ..... 32,50,516 to the total income of the assessee-company. ..... the employer may pay pension when the employee retires or his service is terminated and claim the payment made as expenditure incurred for the purpose of business under section 37. .....
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