Court : Gujarat
Reported in : [1965]57ITR490(Guj)
..... shelat, c.j.1. the question arising in this reference is one of the construction of the sub-section (2a) of 10 of the income-tax act, 1922, and arises as a result of bringing to tax a sum of rs. 18,401, in the assessment for the assessment year 1959-60. the normal accounting year of the assessee-company, while ..... benefit having been carried on during the relevant year, he held that the benefit amounting of rs. 18,401 could not be assessed to income-tax under sub-section (2a) of section 10 of the act. on an appeal by the commissioner, of the tribunal thought that there was no validity in the ground upon which the appellate assistant ..... conclusion from sub-section (1) of section 41 of the 1961, act, which provides that the amount obtained by an assessee or the value of the benefit accruing to him shall be deemed to be profits or gains of business or profession and accordingly chargeable to income-tax as the income of that previous year, whether the business or profession in respect .....
Tag this Judgment!Court : Gujarat
Reported in : [1968]69ITR614(Guj)
..... bhagwati, j.1. this reference arises out of an order made upon the assessee under section 23a of the income-tax act, 1922, for the assessment years 1957-58, 1959-60, 1960-61 and 1961-62 and raises a short and interesting point. the assessee is a private limited company admittedly governed by the provisions of section 23a ..... with company which is merely holding investments cannot be said to be carring on business : there can be no business of holding investments within the meaning of the income-tax act. but the question is : does not necessarily follow from this proposition that we must regard clause (i) of the second explanation as meaningless in so far ..... a company whose business consists mainly in dealing in or holding of investments within the meaning of clause (i) of the second explanation to section 23a of the income-tax act, 1922 ?' this is the question which we shall now proceed to consider and answer. 5. the determination of the question turns primarily on the true interpretation of .....
Tag this Judgment!Court : Gujarat
Reported in : [1966]60ITR370(Guj)
..... lieu of the sale price of the business as a whole, there was any profit in the amount of rs. 2,50,000, the same being taxable under the indian income-tax act ?' 8. the high court, following doughty's case held as regards the third question that the transfer was a slump transaction and that, therefore, the amount of rs. 2, ..... it would not apply to the case of a sale under section 10(2)(vii). 'it must apply', they observed, 'to all cases of sale dealt with under the indian income-tax act, unless there is something in the section itself which makes it clear that the sale contemplated by the legislature is not only a sale where, according, to the real transaction ..... this reference is 'whether, on the facts and in the circumstances of the case, the sum of rs. 40,743 is assessable to tax by applying the second proviso to section 10(2)(vii) of the indian income-tax act, 1922 ?' 2. the present reference arises out of the assessment for the assessment year 1959-60 on the assessee which is assessed as .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]102ITR356(Guj)
..... the persons who are referred to in section 41(1) of the indian income-tax act, 1922, equivalent to section 160 of the income-tax act, 1961, are not the persons having any beneficial interest in the income. none of them has any beneficial interest in the income, for example, the court of wards, the administrator-general, the official trustee ..... ) must be answered against the assessee and it must be held that the income includible in the total income of the assessee is income determinable as per the provisions of the income-tax act, 1961, in the case of the trust and not the income actually received or receivable by the assessee from the said trust or according to ..... the facts and in the circumstances of the case, the income includible in the total income of the assessee is income determinable as per provisions of the income-tax act, 1961, in the case of the trust or the income receivable by the assessee from the said trust ?' 6. in income-tax reference no. 29 of 1973, only one question has been .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]114ITR913(Guj)
..... year. it is no doubt true that whole making final order under section 104 of the income-tax act, 1961, (corresponsing to section 23a of the 1922 act), one of the considerations which should weigh with the income-tax officer is the smallness of profits. these profits, are, according to the settled legal position commercial ..... question arose in the course of the proceedings for assessment of the said year as to whether the income-tax officer was competent to make an order under section 104 of the income-tax act, 1961. he could have justifily made the order, provided the accumulated profits and reserves representing accumulated past profits exceeded ..... the accumulated profits. he, therefore, confirmed the order of the income-tax officer imposing additional tax under section 104 of the income-tax act, 1961. 4. the assessee-company being aggrieved with the said order carried the matter in the further appeal before the income-tax appellate tribunal. the department had not filed any appeal against .....
Tag this Judgment!Court : Gujarat
Reported in : [1978]112ITR134(Guj)
..... of this court : '(1) whether the tribunal was right in holding that the cash payments in question relating to purchases fell within the mischief of section 40a(3) of the income-tax act, 1961 (2) if the answer to question no. 1 is in the affirmative, whether the tribunal was right in holding that the said payments were not covered by the exemption granted ..... , although the amount involved was more than rs. 2,500 on each occasion, came to the notice of the income-tax officer. the income-tax officer felt that, in the facts and circumstances of the case, section 40a(3) of the income-tax act, 1961 (hereinafter referred to as 'the act'), was attracted and he, therefore, issued a notice to the asessee on september 21, 1972, to show cause .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]102ITR455(Guj)
..... . 24,341 received by the assessee could be assessed in her hands as a deemed profit under section 4(1) of the income-tax act, 1961. it was held by the supreme court that the income-tax act did not contain any provision making a successor in business or the legal representative of an assessee to whom an allowance had already been ..... and nominee of one subhadraben k. nawab who was the original depositor of certain amounts under the annuity deposit scheme set out in chapter xxii-a of the income-tax act, 1961. subhadraben, the original depositor, had made a nomination in the regular form under the scheme in favour of the assessee and by her will, she had ..... hands. before proceeding to answer this question, we must appreciate the back-ground against which these provisions relating to annuity deposits were inserted in the income-tax act, 1961. for the first several years parliament has been trying different measures to curb inflation and as a policy of curbing inflaction, attempts are being made .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]103ITR405(Guj)
..... decision was rendered. it should be noted that the scheme of set-off of speculative losses contained in section 24 (1) is not disturbed in the income-tax act of 1961 and the corresponding provisions which have a bearing in these references are more or less the same. section 10(1) of the 1922 ..... assistant commissioner found after the remand that, as the forward contracts were speculative transactions within the meaning of the 2nd explanation to section 24(1) of the indian income-tax act, 1922, the loss arising therefrom could be set off only against the profits arising from the other speculative transactions by reason of the first proviso to section 24( ..... the circumstances of the case, the transactions resulting in a loss of rs. 3,40,443 were speculative transactions for the purposes of section 24 of the indian income-tax act, 1922, merely on the ground that the assessee had not performed the contracts by giving delivery and has paid damages in settlement of the obligations contracted for 4. .....
Tag this Judgment!Court : Gujarat
Reported in : [1981]131ITR257(Guj)
..... the view that though such a liability is a contingent liability and, therefore, not a 'debt' under section 2(m) of the wealth-tax act, it would be deductible under the income-tax act while computing the taxable profits.... it was then pointed out that the question in the case in hand was not whether such estimated liability ..... amounts set aside or provisions made for meeting specific liabilities, contingencies or commitments. the contention that though sch. vi to the companies act might permit a provision for contingent liabilities, the i.t. act, 1961, does not, because, under s. 36(v), the only deduction from profits and gains permissible is of a sum paid by ..... company of india ltd. v. their workmen : (1969)illj785sc , the company was entitled to deduction under s. 37(1) of the i.t. act, 1961, (hereinafter referred to as 'the act'), in respect of such gratuity liability. the assessee requested the ito to consider its claim in that behalf while finalising its assessment. 5. along with .....
Tag this Judgment!Court : Gujarat
Reported in : (1981)21CTR(Guj)20
..... whether, on the facts and in the circumstances of the case, under rule 19(5) of the income-tax rules, 1962, half of the profits had to be added for the computation of capital for determining relief under section 84 of the income-tax act, 1961 ?' 2. we are concerned in this case with the assessment year 1967-68, the previous year ..... business for the purpose of relief under s. 84 of the i.t. act, 1961, as it then stood. the assessee was entitled to claim under that section that no income-tax should be paid in respect of a newly established undertaking in respect of income to the extent of six per cent. of the capital employed. the capital ..... : 'section 84 of the act (now section 80j) provided for tax holiday for new industrial undertakings or hotels and exempted the income thereof to the extent of six per cent. of the capital employed in the business of the new industrial undertakings or hotels, computed in the manner prescribed by rule 19 of the income-tax rules, 1962. the legislative intent .....
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