Array
(
    [0] =>  .....  para 9 as under-- "on a perusal of the assessment order made for the assessment year 1997-98 under section 143(3) read with section 148 of the income tax act, 1961, apparently, the reopening under section 147(b) has been invoked only for the limited purpose of disallowing payment made to the partner who is representing his huf in  ..... (i) the partners have agreed that the remuneration to a working partner will be the amount of remuneration allowable under the provisions of section 40(b)(v) of the income tax act; and (ii) the amount of remuneration to working partner will be as may be mutually agreed upon between partners at the end of the year. it has been  ..... 40(b), then the available profits shall be paid to the working partner, to the extent of making the firms income nil" section 40 of the income tax act speaks of amounts not deductible. as per section 40(b) of the act, salary or remuneration paid to a partner is not allowable. however, exceptions were provided in the said clause whereby  ..... 
    [1] =>  ..... ltd. (apgpcl in short), which is an enterprise carrying on infrastructure facility as contemplated under clause (iii) of explanation l(c) to section 10(23g) of the income-tax act, 1961. apgpcl started generation of power after 31-3-1997 and completed the combined cycle of power generation by 23-12-1997. apgpcl is recognised as an industrial undertaking which .....  of rs. 12,33,167. the return was originally processed under section 143(1). later, a notice under section 148 of the income-tax act, 1961, was served on the assessee on the ground that the assessee had claimed an amount of rs. 20,00,35,094 as extraordinary item of expenditure.  ..... per head note) as follows: a circular of the central board of direct taxes under section 119 of the income-tax act, 1961, cannot override or detract from the act, inasmuch as what section 119 has empowered is to issue orders, instructions or directions for the "proper administration" of the act or for such other purposes specified in sub-section (2) of the  ..... 
    [2] =>  ..... capital receipt in the hands of the recipient industrialists.4. the commissioner (appeals) set out in his order the provisions of section 41(1) of the income-tax act, 1961 (hereinafter referred to as 'the act') and, according to him, the assessee's claim for exclusion of the amount of rs. 14,665 could not be accepted, because the amount was  ..... by means of the application of that test". this proposition is as sound as it is well-expressed, and has been followed in numerous cases under the indian income-tax act and also by this court. it is the quality of the payment that is decisive of the character of the payment and not the method cf the payment  .....  limb of argument, of the learned departmental representative was that the receipt in question was includible in the total income by virtue of the provisions of section 28(iv) of the act.this provision enabled the revenue to tax the value of any benefit or perquisite arising from business or the exercise of a profession and he submitted that ..... 
    [3] =>  ..... issues as arrived at by my learned brother.2. on the point as to whether proceedings were validly initiated under section 147(a) of the" income-tax act, 1961 ('the act'), i would like to add a few words to highlight certain facets. in the present case, the assessee had filed a return on 17-2-1972 showing ..... the contention of the revenue is that the commissioner (appeals) erred in holding that the ito had no reasonable belief that income had escaped assessment in initiating the proceedings under section i47(a) of the income-tax act, 1961 ('the act') for the assessment year 1965-66. another contention raised is that the commissioner (appeals) erred in holding that the land ..... assessee but not the sufficiency of the reasons for the belief. again the expression 'reason to believe' in section 34 of the income-tax act does not mean a purely subjective satisfaction on the part of the income-tax officer. the belief must be held in good faith : it cannot be merely a pretence. to put it differently, it  ..... 
    [4] =>  .....  uphold his order on this point.5. the next ground is with regard to the computation of capital for the purpose of relief under section 80j of the income-tax act, 1961 ('the act').this ground is to be rejected in view of the decision of the supreme court in lohia machines ltd. v. union of india [1985] 152 itr 308 ..... an activity carried on in a hotel. take for instance section 80j of the income-tax act which specifically differentiates an industrial undertaking and hotel business. we are, therefore, satisfied that the view taken by the tribunal that the hotel business carried on by the .....  that the definition of 'industrial company' will not include a trading activity such as the one being carried on by the assessee. we also find that the income-tax act has drawn a distinction between industrial undertakings and a hotel and, therefore, when the statute refers to an industrial company, it cannot be taken to refer to  ..... 
    [5] =>  .....  godowns for its business purposes. he also held that tollowing certain other decisions house-owning, however, profitable cannot be a business or trade under the income-tax act, 1961 (the act) where income is derived from house property by exercise of property rights. it is the nature of operations and not the capacity of the owner that must determine .....  whether the income is from property or from trade. therefore, he had computed the income as income from house property granted allowable deductions under section 24 of the act and computed net income from house property at rs. 1,10,718.6. aggrieved against the said ..... godowns. the assessee claimed the activity of letting out the godowns constituted a business activity. the ito disallowed the claim and computed the income under section 22 of the act. the commissioner upheld the itos order. the tribunal ultimately confirmed the order of the commissioner (appeals) and treated the ..... 
    [6] =>  .....  on buildings, godowns, laboratory equipments, trollies, etc., all of which form part of the assets of the assessee-company leased out under section 32(1) of the income-tax act, 1961, it is common knowledge that depreciation on building machinery, plant and furniture would be allowed only when they were used for the purpose of business or profession. therefore, ..... filed is crucial and essential for giving a just decision it cannot be admitted even at the second appellate stage by invoking rule 29 of the income-tax appellate tribunal rules, 1963 ('the rules') which are quite in pari materia with the provision of order 41, rule 27 of the code of civil procedure,  ..... exploiting its assets through somebody else for a temporary period does not hold water. therefore, it is clear that one of the grounds for considering the lease income as 'income from other sources' was that the assessee-company was not in a fit condition to carry on tobacco trade or export business itself or personally because of ..... 
    [7] =>  ..... section 17 following the decision in addl. cit v. p.r. parthasarathy [1979] 118 itr 869(ap).8. the income-tax officer, a ward, salary circle, hyderabad, in his assessment order dated 21-3-1983 passed under section 143(3) of the it act, 1961 (hereinafter called the act), accepted the revised return filed showing nil income holding that payments made by bhel to the ..... each of these assessees were all shown in the table given at p. 513: the learned commissioner intended to exercise his powers of revision under s. 263 of income-tax act called upon the assessees' agent bhel by his letter dated 15-3-1985 as to why he should not set aside the assessment order as being erroneous and prejudicial ..... not expired before 1-10-1984. however, with a view to avoiding controversy and litigation in the matter it is desirable that orders under s. 263 of the income-tax act are passed as far as possible, within two years of the date of the order sought to be revised in cases where the order sought to be revised  ..... 
    [8] =>  ..... proved and hence the assessee is not liable to be assessed in respect of the excess consideration under section 69b of the income-tax act, 1961. having thus, held in the computation part of the assessment order, the income-tax officer remarked as follows : "3. (ii) i have held that the assessee is not liable to be assessed  ..... transaction. the only point to be seen in this case is whether such an enquiry had been conducted by the income-tax officer observing the procedures laid down in the income-tax act. it may be mentioned that the income-tax officer was having jurisdiction over nor only the assessee but also smt. razia begum, the seller in this case ..... having held so, the appellant submits that the commissioner (appeals) was not justified in conceding the iac requested for enhancement.3. under section 251 of the income-tax act, certain power are conferred on the appellate authorities, to consider and decide any matter arising out of the proceedings raised by the appellant, there is no  ..... 
    [9] =>  .....  that since the settlement was not the result of the application of any provision of the income-tax act, 1961, and the wealth-tax act, 1957,itwas not income-tax and wealth-tax liability within the meaning of section 2(m)(iii) of the wealth-tax act, 1957,andthattheliabilitypertainingto the assessment years 1967-68 to 1969-70 determined at rs. 16,50 ..... court decision in cwt v. vimlaben vadilal mehta [ 1984] 145 itr 11. in that case the income-tax liability for the assessment years 1958-59 and 1960-61 and the wealth-tax liability for the assessment year 1961-62 created as a result of rectification orders passed after the valuation date was claimed as deduction while .....  date for the relevant assessment year under the w.t. act and a gift-tax liability crystallizes on the last day of the previous year for the relevant assessment year under the g.t. act.... now, the quantification of the income-tax, wealth-tax or gift-tax liability is determined by a corresponding assessment order, and even  ..... 
    [10] =>  .....  by the person who is authorized to sign the return of in come under section 140 of the income-tax act, 1961 as applicable to the assessee.5.8 similarly, for the sake of ready reference, section 140 of the income-tax act, 1961, with the marginal note 'return by whom to be signed' is also extracted as below. section  ..... partakes the character of a contract of a nature contemplated under section 53a of the transfer of property act, before invoking the definition of "transfer" in terms of section 2(47)(v) of the income-tax act, 1961.while so, the cit(a) dismissed the assessee's appeal in limine as not maintainable, objecting and observing that the  ..... assistant commissioner had exercised his discretionary jurisdiction and had condoned the delay and admitted the appeal for adjudication on the merits under section 249(3) of the income-tax act, 19061. for condoning the delay he had considered the facts. by admitting the appeal for adjudication on the merits, the revenue was not likely to suffer ..... 
    [11] =>  .....  lines in regard to which the assessee received full reimbursement by contributions from the consumers. since the proper provision applicable was section 43(1) of the income-tax act, 1961 under which in computing the written down value, the actual cost had to be reduced by that portion of the cost as had been made, met .....  that there is a vast difference between an order passed under section 250 implementing the appellate order and an order passed under section 154 of the income-tax act. the learned departmental representative contended that granting depreciation on parent birds is not consequential simply because they are found to be plants. further he argued that ..... rejection of the claim of depreciation before the commissioner (appeals). the first modificatory order dated 10-9-1990 is one passed under section 250 of the income-tax act, in order to give effect to the order of the commissioner (appeals). it is significant to note that the assessee did not file specific application seeking ..... 
    [12] =>  ..... relied upon the board's circular no. 689 dated 24-8-1994, wherein the board clarified the scope of prima facie disallowances under section 143(1)(a) of the income-tax act, 1961.7. on the other hand, the learned departmental representative supported the orders passed by the lower authorities. he contended that as per the scheme framed under section 3  ..... only reduced on account of disallowance under section 43b, additional tax is not attracted. in view of the retrospective amendment to the provisions of section 143(1a) made by finance act,' 1993 w.e.f.1-4-1989, even where the loss declared by the assessee is reduced, additional income-tax can be levied. in this view of the matter, we .....  adjustments can be made to the returned income or lons'. further, board's circular no. 689 dated 24-8-1994, a copy of which is also filed by the assessee from 209 itr (st.) 75, also clarifies the scope of prima facie disallowance under section 143(1)(a) of the it act, 1961.the said circular lists out the prima  ..... 
    [13] =>  ..... and the subsequent circular no. 689 dated 24-8-1994 reported in 209 itr (st.) 75 wherein the scope of prima facie disallowances under section 143(1)(a) of the income-tax act, 1961, has been explained, he submitted that the impugned adjustment does not amount to a prima facie adjustment, and as such it could not have been made in an intimation under ..... behalf is a debatable one, on which two opinions are possible. in this view of the matter, we set aside the order of the cit(a), and cancelling the intimation under section 143(1)(a) of the income-tax act, 1961, sent by the assessing officer on 18-6-1993, and direct him to complete regular assessment under section 143(3) after issuing due  .....  in the case of srf charitable trust (supra), the honble delhi high court held as follows - "clause (iii) of the first proviso to section 143(1)(a) of the income-tax act, 1961, clearly provides that the assessing officer, in making an intimation deemed to be a notice of demand, can make an adjustment to the ..... 
    [14] =>  ..... is still alive for debate and the issue cannot be decided by the assessing officer by way of a routine adjustment available under section 143(1)(a) of the income-tax act, 1961. the learned counsel submitted that the scope of prima facie adjustment provided under section 143(1)(a) is very limited and only such adjustments could be made which  .....  is whether this net receipt of rs. 4,69,512 could be made the subject-matter of a prima jade adjustment while the return of income is processed under section 143(1)(a) of the income-tax act, 1961.8. in this respect, we find that there is a decision of the a.p. high court in the case of v. parthasarathy ( ..... relating to the assessment year 1995-96. therefore, the same is claimed as exempted and shown in part iii of the return of income.' while processing the return of income under section 143(1)(a) of the income-tax act, 1961, the assessing officer added the net receipt of rs. 4,69,512 as prima facie adjustment, under the head professional receipt and  ..... 
    [15] =>  ..... has held thus : in view of the above discussion, i find that the contention of ld. counsel for the appellant that the provisions of section 276dd of the income-tax act, 1961 prescribe that imposition of fine should always be equal to the amount of deposits is untenable. the word 'liable' used in the section gives discretion to the court  ..... page 16 held as follows : we have considered rival submissions carefully. there is no indication in section 269ss or section 269t or any other provisions of the income-tax act, 1961, that the amount of deposits or loans accepted or the amount of deposits repaid otherwise than by an account payee cheque or account payee bank draft are to ..... -1-1999 for the assessment year 1994-95, confirming the penalty of rs. 12,63,500 imposed under section 271d of the income-tax act, 1961 for contravention of the provisions of section 269ss of the act.2. the facts as gathered from the record are as follows. the assessee is a domestic company in which public are not  ..... 
    [16] =>  ..... the facts and in the circumstances of the case, the excise duty paid in advance for importing liquor can be allowed as a deduction under section 43b of the income-tax act, 1961, irrespective of whether the goods have been received during the year under consideration or not?" 2. facts of the case lie in a small compass, but the  ..... stock. he further held that such payments were made towards the discharge of a statutory liability and so the deduction was allowable under s.37 of the income-tax act read with s.43b. the cit(a) framed the following issues as arising for consideration in these appeals - "(1) whether the countervailing duty is different from the excise duty (2) .....  not properly be deduced therefrom. it was therefore, not only the right but the duty of the income-tax officer to act in exercise of his statutory powers for determining what, in his opinion, would be the correct income." 39. the decision of the apex court in the case of hindustan sugar mills v/s. state of rajasthan and  ..... 
    [17] =>  .....  the case before us the power to grant stay does not directly or indirectly affect the right of appeal, conferred upon the assessee by the statute. under the income tax act, the disputed tax need not be paid by an assessee in order to exercise his right of appeal. even if the petition filed by the assessee seeking stay of collection of the .....  : the legislature has stated that the first proviso and second proviso to section 254 (2-a) come into force "w.e.f. 1:6.2000. in section 254 of the income tax act, in sub-section (2-a), the following provisos shall he inserted with effect from the 1st day of june, 2001" vide 2001-249 - ttr - st. 37,77. the  ..... may be noticed that the statute confers power upon the appellate tribunal to grant stay of collection of outstanding demand under section 254 of the income tax act. provisos to section 254(2a) were inserted by the finance act 2001 with effect from 1.6.2001, whereby the power to grant stay, on each occasion, was restricted to a maximum period of 180 ..... 
    [18] =>  ..... supreme court in the case of national taj traders (supra) had to deal with the provisions of section 33(b) of the indian income-tax act, 1922, vis-a-vis section 263(3) of the income-tax act, 1961, and held that when the commissioner was only seeking to exercise his powers in pursuance of or in obedience to a direction of an  .....  how these decisions can help the revenue, for the following reasons : 7. there are specific prescriptions of time limit in section 275 of the income-tax act, 1961, as amended by the taxation laws (amendment) act, 1970, with effect from 1-4-1971 which is germane to the assessment year under appeal. the relevant provisions of section 275 are as follows ..... with a notice under section 22(2) of the indian income-tax act, 1922. but the return was filed only on 30-12-1961 and the assessment was completed on 10-3-1964 by which time the income-tax officer issued notices under section 27l(1)(a) and section 273 of the income-tax act, 1961. the assessee filed a reply on 23-3-1964  ..... 
    [19] =>  ..... that a claim based on breach of contract did not come within the meaning of ''contract settled" as used in expln. 2 of section 24(1) of the indian. income-tax act, 1922, 'contract settled' meant contract settled before breach. after breach of contract, the cause of action was no longer based on the contract itself but on its breach ..... various parcels of land.further, the deduction was allowed by the hon'ble supreme court not, under section 10(2) of the indian-income-tax act, 1922, but under section 10(1) of the said act. so also, the punjab decision relied upon by the assessee is also distinguishable inasmuch as in that case also the loss suffered by the .....  meaning of the word "expenditure" held that expenditure is what is paid out or away and is something which is gone irretrievably. expenditure, which is deductible for income-tax purposes, is one which is towards a liability actually existing at the time, but the putting aside of money which may become expenditure on the happening of an  ..... 
)