Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD1100(Kol.)
..... this appeal involves a very important and rather ticklish question of interpretation of some of the provisions contained in the income-tax act, 1961 ("the act"). ..... it will be relevant to note that the liability for deduction of income-tax on the amount payable, at the average rate of income-tax computed on the basis of the rates in force in respect of salaries under section 192, arises at the time of payment. ..... therefore, according to section 163, it being liable to pay income-tax on the interest credited to the accounts of the non-residents as an agent, section 195 was not applicable. ..... the assessee contended that section 195 is not applicable to persons who are liable to pay income-tax as an agent. ..... the fact remains that he is liable to pay income-tax on the interest in question as an agent within the meaning of section 163. ..... before the money can actually be transmitted to the non-residents some kind of sanction or authorisation is necessary under the foreign exchange regulations act and the reserve bank of india act.therefore, the legislature advisedly used the words "payment" and not "credit" or "payment by issue of a cheque or draft or any other mode" in this section.we are, therefore, of the opinion that prima facie the argument of the representative of the assessee that the liability under .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD852(Kol.)
..... the commissioner (appeals) erred in directing the ito to include dearness allowance as salary for the purpose of perquisites under section 40a(5) of the income-tax act, 1961 ("the act"). ..... explanation provides that in the aforesaid provisions "salary" has the meaning assigned to it in clause (7) read with clause (3) of section 17 of the act, subject to certain modifications which are not relevant for the purpose of the present discussion.a perusal of section 17(1) and (3) would show that the aforesaid definition of "salary" is wide enough to include dearness allowance. ..... representative contended that under explanation 2 to rule 3 of the income-tax rules, 1962, dearness allowance is not. ..... relevant facts are that in calculating the aggregate of the expenditure and allowance to be disallowed under section 40a(5)(c)(ii) the ito did not include the dearness allowance payable to the concerned employees as a ..... he held that for the purpose of section 40a(5), salary is to be taken as defined in explanation ..... him, the term "salary" occurring in section 40a(5) has to be construed according to the meaning assigned to that term by explanation 2 to section 40a(5). ..... ito was justified in excluding the dearness allowance for the purpose of applying the provisions of section 40a(5) as well. ..... is no merit in the departmental appeal on this point and that the commissioner (appeals) was justified in directing the ito to include dearness allowance as a part of salary for the purpose of section 40a(5).6. to 9. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)2ITD149(Kol.)
..... he, accordingly, issued a show-cause notice as to why an order under section 263 of the income-tax act, 1961 ('the act'), as the circumstances justify including an order, or enhancing, or modifying the assessment order or cancelling the assessment and the making of ..... opinion of the commissioner there is no justification for the delay, a further sum not exceeding fifty per cent of such amount shall be recovered from the employer by way of penalty.section 19(1) of the 1923 act lays down that if any question arises in any proceedings under the act, as to whether the liability of any person to pay compensation (including any question as to whether a person injured is or is not a workman) or as to the amount or duration of compensation ..... 7,56,236, even though that liability could not be enforced till the quantification was effected consequent to the awards by the commissioner under section 19 of the 1923 act, irrespective of the fact that the assessee in the proceedings before the commissioner was contesting its liability towards its said workmen-employees, that liability did not cease to ..... after cause was shown, the commissioner after referring to the scheme of the 1923 act, as was clear from sections 2, 3, 4, 4a, 10, 19, 22 and rules 20, 21, 23 to 28 and 32 of the workmen's compensation rules, 1924, made under section 32 of the 1923 act, and negativing the contentions of the assessee to the contrary, has observed in para 9 of the impugned order that "it is impossible to contend that .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD160(Kol.)
..... v, calcutta, dated 20-3-1974 minimum penalty under section 271(1)(c) of the income-tax act, 1961 will be imposable at the rate of 20 per cent of the tax sought to be avoided, in terms and conditions for agreed assessments laid down in paragraph 8 of the aforesaid settlement.it is a fact that the iac before levying penalty did not give a hearing to the assessee.9. ..... be made use of by the revenue because the said provision stand omitted by the taxation laws (amendment) act, 1975, with effect from 1-4-1976 prior to the passing of the impugned penalty orders by the iac for the assessment years 1958-59, 1960-61 and 1961-62), reading as under : notwithstanding anything contained in clause (hi) of sub-section (1) of section 271, if in a case falling under clause (c) of the sub-section, the amount of income (as determined by the income-tax officer on assessment) in respect of which the particulars have been ..... concealed or inaccurate particulars have been furnished exceeds a sum of twenty-five thousand rupees, the income-tax .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD223(Kol.)
..... the claim on behalf of the assessee-trust was that the higher rate of tax contemplated by section 164 of the income-tax act, 1961 ("the act") is not leviable as the beneficiaries are known and determinate. ..... no doubt their lordships were considering the provisions of section 41 of the indian income-tax act, 1922 and the proviso thereto but the language of that provision is in pan materia with section 164 of the 1961 act. ..... their lordships were no doubt considering the provisions of section 21(4) of the wealth-tax act but those provisions are analogous to the provisions under the income-tax act and they have full force at page 598 the dictum laid down can be better understood by quoting their lordships : ...the wealth-tax officer has to determine who are the beneficiaries in respect of the remainder on the relevant date and whether their shares are indeterminate or unknown. ..... in our opinion, the word "person" used in section 164 must be understood in the light of the provisions relating to trusts and not by looking to the definition given under the income-tax act or definition under the general clauses act.9. ..... the learned departmental representative, relying on section 5 of the transfer of property act and section 112 of the indian succession act, argued that the beneficiary should be an existing person. ..... the ito, however, held that section 164 would apply as a part of the income is not specifically receivable on behalf of or for the benefit of any one person. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD654(Kol.)
..... customs authorities by way of fines in lieu of confiscation of goods imported without valid licence was held to be expenditure not wholly and exclusively laid out for purposes of the business of an assessee and as such not deductible under section 37(1) of the income-tax act , 1961 by the calcutta high court. ..... contended that in so far as the contention of the assessee with regard to the loss by confiscation of goods by the customs authorities is concerned, it may be noted that the reference to the judgment of the assistant director under the enforcement act does not carry much weight because any judgment by a collateral authority should not affect the judgment of the collector. ..... there was no infringement either of import licence or any other law, held that the goods were not of the description for which the import licence had been issued and, therefore, the import contravened section 111(d) of the customs act read with section 3 of the import and export control act. ..... he firstly held that the order of the collector of customs was not final and secondly, the confiscation order was passed on the infringement of the customs act read with section 3 of the import and export control act. ..... in this regard, it was submitted that the infringement of the customs act in any case was there by the assessee and it is clearly indicated that the assessee was not entitled to the loss arising out of confiscation in view of the ratio of the supreme court judgment in the case of haji ..... cit [1961] 41 itr .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD1(Kol.)
..... 1,00,000 to a trust known as "vishwamangal trust" (hereinafter referred to as "the trust").deduction under section 80g of the income tax act, 1961 ("the act"), was claimed in respect thereof and allowed by the ito while completing the assessment under section 143(3), read with section 144b, of the act. ..... because all the religion also place emphasis on these aspects of life it will not be possible to say that such objects or purposes are of religious nature in the sense the word "religion" or "religious" are used in the income-tax act.moreover, explanation 3, in our view, does not cover a case of an object which is of a religious nature in the technical sense. ..... the explanation uses the expression "religious nature" which has not been defined in the income-tax act, nor the word "religion" defined. ..... the one under clause (d) enjoined upon every state bar council under section 6(1) of the act, it is clear that the primary or dominant purpose of an institution like the assessee-council is the advancement of the object of general public utility within the meaning of section 2(75) of the act, and as such the income from securities held by the assessee-council would be exempt from any tax liability under section 11 of the act.reliance is also placed on the observations of their lordships of the supreme court .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD831(Kol.)
..... the assessee claimed exemption of capital gains as the assessee invested the entire sale proceeds of the investments, including capital gains, with mohini thapar charitable trust, calcutta, at interest and, therefore, satisfied the condition in section 11(1a)(a) of the income-tax act, 1961 ("the act"). ..... on the basis of this position, the learned counsel for the assessee contended that inasmuch as the income of mohini thapar charitable trust was not exempt under section 11, section 12(2) was not applicable and, therefore, the assessee's case squarely falls within section 12(1) of the act, as it existed in the year of account. ..... there are specific provisions in section 13(2) with regard to lending of income or property and investment of funds of the trust in any concern in which the persons, specified in section 13(3), have substantial interest. ..... this plea did not prevail with the ito who held that the assessee has not acquired another capital asset as contemplated in the act inasmuch the loan is not a capital assest as defined in section 2(14) of the act.therefore, he subjected the capital gains to tax. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)2ITD17(Kol.)
..... the assessee's claim for exemption under section 11 of the income-tax, act, 1961 ('the act'), was negatived by the ito en the ground that ..... of income-tax (central), range-i, calcutta, has erred in holding that sangit kala mandir was an institution established wholly for charitable purposes and hence exempt under section 11 of the income-tax act, 1961. ..... regarding the objects and organisation of the society and the finding on the grounds regarding applicability and fulfilment of certain procedural and technical requirements such as explanation to section 11 and section 12(1) of the act, would decidedly evidence that the tribunal positively endorsed the claim, which was accepted at the assessment stage, that the society was an institution established wholly for charitable purposes. ..... exempt from payment of income-tax under section 11. ..... a reference was made to the provisions of section 2(75) of the act and it was claimed by the learned departmental representative that the objects of the assessee-society were not of general public utility but activities for profit inasmuch as the .income earned by the society was by staging dramas as also by the earning of interest by way of advancing loans out of ..... that the assessee was a mutual benefit society and the income earned by it was found to be by an activity of profit.therefore, he submitted that the aac was not justified in holding that the income earned by the assessee-society was exempt from tax in view of the provisions of section 11.5. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Kolkata
Reported in : (1982)1ITD857(Kol.)
..... therefore, he held that the conditions envisaged under items (a) and (b) to sub-clause (iii) of section 2(m) would not be satisfied in respect of any liability of the assessee for payment of tax of some other persons within the meaning of section 199 of the income-tax act, 1961. ..... now turning to the case of the assessee, section 192 of the income-tax act enjoins upon any person responsible for paying any income chargeable under the head "salaries" to deduct income-tax and pay it to the central government on behalf of the person from whose income the deduction was made within the prescribed time. ..... the tax deducted at source under section 192 of the income-tax act is not in consequence of an order passed under or in pursuance of the income-tax act but under the statutory provision holding the person responsible for payment of income chargeable under the head "salaries" as an assessee in default if such tax was not deducted or not paid after deduction. ..... the position is clear when we look at section 202 of the income-tax act, which clearly specifics that the levy of tax by deduction at source is one of the modes of recovery of tax.there is no question of disputing by way of appeal, revision or other proceedings as not payable, so far as the tax deducted at source from the salaries of the employees is concerned. .....
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