Array
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    [0] =>  ..... the view that the question proposed by the commissioner should be referred to the high court. order under section 255(4) of the income-tax act, 1961. whereas we are unable to agree on the point set out below for the assessment year 1979-80, we refer the following point  .....  1. the commissioner has made this reference application under section 256(1) of the income-tax act, 1961 ('the act') and thereby requested the tribunal to draw up a statement of the case and to refer  .....  third member : whether, on the facts and in the circumstances of the case, the question of law proposed by the commissioner of income-tax does arise out of the order of the tribunal and should be referred to the madras high court 2. in the course of assessment .....  president for reference to third member, under section 255(4) of the act : whether, on the facts and in the circumstances of the case, the question of law proposed by the commissioner of income-tax does arise out of the order of the tribunal and should be referred to ..... 
    [1] =>  ..... had been used by the directors of the company and, therefore, the disallowance is to be made if the limit prescribed under section 40(c) of the income-tax act, 1961 ('the act'), is surpassed. the revenue being aggrieved has preferred this appeal.3. shri s.l. narasimhan, the learned departmental representative, contends that in the case of a ..... the assessment order or canvassed before us, the order of the first appellate authority should stand and the departmental appeal dismissed.order under section 255(4) of the income-tax act, 1961 - i suggested for reference to the president the following question : whether, on the facts and in the circumstances of the case, an amount of rs. ..... to an employee or director, the fact of the payment could be ignored or its legality challenged.any contravention of the companies act made, have to be dealt not under the 1961 act especially in a tax matter in an altogether different context. in my opinion, therefore, to say that the user of the car is unauthorised, ..... 
    [2] =>  .....  assist in advancing the case of the revenue any further and this is binding on us. as the aspect of argument of section 67(1)(b) of the income-tax act, 1961 ('the act') was not further gone into because, it was outside the scope of reference ; we would also advert to the argument of the learned departmental representative with reference  .....  the profits taxable as such. the court also further held : it is plain that salaries paid to partners are regarded by the income-tax act, as retaining the character of profits and not excludible from the tax net, whatever the reason behind it be....they also stated that salaries are profits known by a different name and must be treated as ..... ] 66 itr 613, the supreme court observed as under : ...a hindu undivided family is undoubtedly a 'person' within the meaning of the indian income-tax act. it is, however, not a juristic person for all purposes, and cannot enter into an agreement of partnership with either another undivided family or individual. it is ..... 
    [3] =>  .....  processed) made wholly or mainly of cotton, including cotton yarn, hosiery and rope.3. the ito in his reassessment order under section 147(6) of the income-tax act, 1961 ('the act'), completed on 11-3-1981 in appeal has recorded the view that a mere spinning mill such as that run by the assessee could not be said to be ..... and depreciation. hence, i restore his order and set aside that of the commissioner (appeals) for the assessment year under consideration.order under section 255(4) of the income-tax act, 1961 - as we have differed in reason and conclusion in deciding this issue, therefore, i frame the question as under for reference to the president for referring it to ..... 139(8), where the assessee is a registered firm or an unregistered firm which has been assessed under section 183(6) of the act, the tax payable on the total income shall be the amount of tax which would have been payable if the firm had been assessed as an unregistered firm. the submission is that the ito calculated the ..... 
    [4] =>  ..... rs, 3,03,225 (after deducting brokerage) even though the assessee has admitted the same at rs. 2,67,225 and exemption under section 54e of the income-tax act, 1961 ('the act') has been allowed at a lower figure compared to the claim of the assessee. aggrieved, the assessee filed an appeal before the aac.2. before the aac, .....  is part of the cost of acquisition/ cost of improvement of the asset and, hence, should have been allowed as a deduction under section 48 of the income-tax act." the departmental representative objected to this additional ground being raised. however, since this appears to be an alternative plea on the same set of facts already on record ..... borrowed for the purchase of open plot of land constituted part of actual cost to the assessee within the meaning of section 12b(2)(ii) of the indian income-tax act, 1922, for the purpose of determining the capital gain derived from the sale of the land. in this connection, the learned departmental representative relied upon a decision ..... 
    [5] =>  ..... below for the assessment year 1981-82, we refer the following points of difference of opinion to the president for reference to third member, under section 255(4) of the income-tax act, 1961 : 1. whether the consideration of rs. 4 lakhs agreed to between the assessee and the transferees in this case for transfer of business name 'city transport' should be held .....  1. this appeal is filed by the department. it is in the case of the assessee, city transport (p.) ltd., coimbatore, relating to its income-tax assessment for the year 1981-82. the assessee is a private limited company running passenger bus service. it is stated that the previous year for the assessment year  ..... fund and gratuity and all other liabilities arising thereunder, etc.3. the aseessee's contention that no part of the amount of rs. 4 lakhs was liable to be taxed as income under the head 'capital gains' as it represented the sale price of the self-generated goodwill, has been rejected by the ito. he has held that there was  ..... 
    [6] =>  ..... 30-6-1979, respectively. the assessments for all these years were completed under section 143, read with section 144b, of the income-tax act, 1961 ('the act') as in the opinion of the ito, the variance between the returned income and the income at which the ito sought to assess is more than rs. 1 lakh; 3. the first common ground which arises for  .....  be taken to be part of the turnover of the assessee-mill or whether it should not be so considered for purposes of determination of levy of income-tax. before considering the above point in controversy, we have to bear in mind another important factor, i.e., the government passed the levy sugar price equalisation fund ..... the said fund. it is further contended that this being a statutory obligation, the amount in question cannot be treated as the income of the assessee. relying upon the ratio of the bombay high court's decision in cit v. bombay state road transport corpn. [1977] 106 itr 303 it was requested that the addition may be deleted.17. ..... 
    [7] =>  ..... the iac (assessment), range-i, salem-4, against the assessee for the five assessment years 1974-75 to 1978-79 under section 271(l)(c) of the income-tax act, 1961 ('the act'). the amounts of penalties levied by the iac are the following :assessment year penalty levied rs.1974-75 92,6901975-76 57,1301976-77 42,3201977-78 45, .....  held that by merely relying on the explanation to section 271(l)(c) or by reference to section 68 of the act, in which unexplained cash credits can be presumed to be income for purposes of assessment of tax, a penalty cannot be sustained under section 271 (1)(iii). shri ramagopal also referred us to the decision of the .....  proceedings the assessments of the assessee were reopened under section 147(a) of the act to bring to tax the income which had escaped assessment and that such reassessments were completed determining the total income of the assessee at a much higher figure than the income originally returned by the assessee for each of the years. the iac pointed out  ..... 
    [8] =>  ..... [1983] 141 itr (st.) 61.) the rule specifically lays down that it comes into effect from 2-4-1983. under section 295(4) of the income-tax act, 1961 a retrospective operation of a rule is possible. the rule together with the appendix specifying the rates of depreciation gives a formula for calculating the depreciation. depreciation  ..... 1961 act does not lay down that depreciation on the fixed assets is to be allowed on any general concept of depreciation but only at the rates prescribed and, therefore, there is a distinction between rule 5 of the income-tax rules and rule ibb of the wealth-tax rules. it is pointed out that section 295(2)(d) of the income-tax act .....  contention cannot be accepted. in that case the notification itself was specifically made retrospective, to be applied to all assessments made under the indian income-tax act after this act was extended to the part b states of which hyderabad was one. the dispute was not whether the notification was retrospective in intent.there was ..... 
    [9] =>  .....  made taxable. in the absence of such a nexus, he submitted that the subsidy given could not be treated as income especially because winnings from horse racing were treated as income by the definition in section 2(24)(ix) of the income-tax act, 1961.5. a perusal of the conditions laid down for the grant of the subsidy by the race club shows that the .....  waived by grant of the subsidy it is impossible to ignore the subsidy received by the assessee in computing the income of the assessee from winnings which is taxable under section 56(1) read with section 56(2)(ib) of the income-tax act, 1961. the assessments in this respect are, therefore, confirmed.6. in the assessment year 1981-82, there is an additional claim ..... 
    [10] =>  .....  electricals limited to the engineering personnel of m/s. sulzer brothers limited are taxable under section 9(1)(vii) of the income-tax act, 1961, or not?" 24. these appeals have been referred under section 255(4) of the income-tax act, 1961, on a difference of opinion between the two members who originally heard the case.25. the admitted facts are as follows. ..... fees paid by m/s. bharat heavy electricals ltd. to the engineering personnel of m/s. sulzer brothers limited are taxable under section 9(1)(vii) of the income-tax act, 1961, or not?" 28. when the matter was taken up, it was contended on behalf of the assessee that a perusal of article 1.6 of the agreement  .....  1978-79. on february 6, 1980, the government approved the contract of service of technicians for the purpose of exemption under section 10(6)(viia) of the income-tax act, 1961. in view of these facts, it is clear that the deputation personnel and experts of sulzer and the terms and conditions of fees payable to them were left  ..... 
    [11] =>  .....  are disposed of by a common order as they raise a common point with reference to the meaning of explanation 8 to section 43(7) of the income-tax act, 1961.2. the assessees are companies which had taken advantage of the idbi bills rediscounting scheme for the purpose of purchasing capital assets on deferred payment basis from  .....  on 19-5-1974 that the expression 'actual cost' to the assessee in section 10(2)(vib) of the indian income-tax act, 1922, which is in part materia with section 43(7) of the income-tax act, 1961, means not the value of the assets but what the assessee has actually paid for it because the legislature can be presumed ..... of plant and machinery forms part of the 'actual cost' of the asset for the purpose of claiming depreciation, development rebate, investment allowance, etc., under the income-tax act. 5. as regards interest payable after the date of commencement of production on instalments relating to assets purchased on deferred payment terms or on monies borrowed for  ..... 
    [12] =>  ..... the value of the stock-in-trade remains unchanged at the commencement of the year and the end of the year. it must be remembered that under the income-tax act, tax is levied on income, profits and gains, and not on receipts; taxable profits therefore cannot ordinarily be deduced from cash receipts alone; if in the computation of profits of a  .....  assessee's method of accounting, and that if it did not reflect the true income, profits and gains of the year under appeal, it would be open to the ito to make the necessary adjustments under the proviso to section 145(1) of the it act, 1961. the learned departmental representative pointed out that there was no dispute about the quantity ..... mills ltd. [1954] 25 itb 377 (ca). (f) b.s.c. footwear ltd. v. ridgway (inspector of taxes) [1972] 83 itr 269 (hl). (g) g.r. ramachari & co. v. cit [1961] 41 itr 142 (mad.). (h) a.l.a. firm v. cit [1976] 102 itr 622 (mad.).6. shri v. jagadisan, the learned chartered accountant for the assessee first met the last ..... 
    [13] =>  .....  as the business outgoing. we are unable to accept these contentions because these very contentions have been repelled by the supreme court in the case of dharamvir dhir v. cit [1961] 42 itr 7. the supreme court has observed that in a commercial sense if the payments were an expenditure wholly and exclusively laid out for the purpose of the  ..... the additional interest paid to the recurring deposit holders was an expenditure laid out for the purpose of the business and must be allowed as a deduction in computing the income of each of the previous years in question. the ito however took the directions of the iac under section 144b and held that it was not a business outgoing .....  1. these appeals by the revenue are directed against the order of the cit (appeals) allowing the deduction of additional interest in computing the total income of the assessee.2. the admitted facts are as follows. the assessee is a company which runs a banking business confined to its members holding at least one share ..... 
    [14] =>  ..... value of benefit, amenity or perquisite for the purpose of disallowance in excess of the limits laid down under section 40(c)(iii) or section 40(a)(v) of the income- tax act, 1961. their lordships of the calcutta high court followed the earlier decision of the calcutta high court in indian leaf tobacco development co. ltd. 's case (supra) in support  ..... the benefit, amenity or perquisite for the purpose of disallowance in excess of the limits laid down under section 40(c)(iii) or section 40(a)(v) of the income-tax act 1961." one of the points at question referred to the calcutta high court in that case was whether the cash payments on account of reimbursement of medical expenses of the  ..... that the whole of the expenditure of rs. 2,54,994 should be allowed as a valid business expenditure in the hands of the assessee under section 37 of the income-tax act.13. in view of our decision the further question that the amount of rs. 2,54,994 was already recovered as part of the service charges of rs.  ..... 
    [15] =>  .....  of section 80c is for giving a relief to the assessee with respect to sums paid out of the total income chargeable to tax. it follows therefore that no such dichotomy is possible even within the framework of section 80c(4) of the income-tax act, 1961.6. we find that there is no indication as to the reason for the deletion of rule ha and .....  paper book. we have, therefore, no hesitation in concluding that the assessee is an author.5. prior to the assessment year 1984-85, the provisions of rule 11a of the income-tax rules, 1962 governed the deduction permissible under section 80c. the ceiling that had been fixed in the case of an author was an amount equal to the aggregate of 40 .....  the assessee submitted that the assessee is a well-known author and that his books have been published in tamil and in english. he argued that rule 11a of the income-tax rules, 1962 prior to its deletion, with effect from the assessment year 1984-85, had fixed the deduction available under section 80c based upon the ..... 
    [16] =>  ..... : whether, on the facts and in the circumstances of the case, it has been rightly held that the provisions of section 64(1)(ii) of the income-tax act, 1961, would not be applicable and, therefore, the share income arising to the minor daughters of the assessee have to be deleted 13. the high court answered the reference against the assessee and in favour of .....  of the appeal filed by the assessee before the cit(a). the assessee's case before the first appellate authority was .....  called m/s kalyan chakravarthy theatre, the assessing officer brought to tax in the hands of the assessee a sum of rs. 9,489, being the said lady's share in the income of the said firm.this he did invoking the provisions of section 64(1) (i) of the i .t.act, 1961.3. the said addition was one of the subject-matters ..... 
    [17] =>  ..... bombay high court had the following to say as per its headnote of the decision at page 514:- a bare reading of explanation 8 to section 43(1) of the income-tax act, 1961, inserted with effect from april 1, 1974, shows that it was added with the object of removing doubts with regard to the includibility of interest relatable to any period .....  section 43(1) of the i.t. act 1961. the assessee is a company in which the public are not substantially interested. it carried on business of manufacture and sale of twist drills, reamers, taps and other tools.for assessment year 1985-86, it returned an income of rs. 53,08,501 under its income-tax return dated 30-9-85. by the assessment .....  order completed under section 143(3) dt. 29-2-88 the total income of the assessee was determined at rs. 1,62,80,524. while making the assessment,  ..... 
    [18] =>  .....  itd 193, the assessee filed a revised return claiming that tax was not exigible on the said two items of receipt. when the matter reached the cit(a), he held that by virtue of the retrospective amendments made to section 28 of the income-tax act, 1961, by the finance act, 1990, tax was exigible on the said two items of receipt. with the .....  exporting garments. the issues arising for consideration in the case before us is better understood against the backdrop of a brief history of the assessee's assessment to income-tax and particularly in relation to (a) cash compensatory support and (b) duty drawback received by the assessee. it is not disputed that up to and including .....  by the assessing officer.5. it was also the assessee's case that if both the incentives received and the incentives receivable are brought to tax together, the scheme of the act would be vitiated. this argument was also rejected by the assessing officer, because, according to him, the problem would not have arisen had the ..... 
    [19] =>  ..... assessed thereafter. reliance was placed on the kerala high court's decision in the case of dr. david joseph (supra) and provisions of section 166 of the income-tax act, 1961.14. after considering the submissions of the learned counsel for the assessee we are of the opinion that provisions of section 161(1a) are charging section and  ..... was therefore, held that the trustees of a discretionary trust have to be assessed in the status of 'individual', and consequently deduction under section 80l of the income-tax act, is allowable to them.therefore, the ratio laid down by the hon'ble gujarat high court in the aforesaid case and the decision of the special bench of ..... by him. for the purpose of the new provision, the term "maximum marginal rate" shall have the same meaning as in explanation 2 to section 164 of the income-tax act. the proposed amendment will take effect from 1st april, 1985, and will, accordingly apply in relation to the assessment year 1985-86 and subsequent years ...." "taxation  ..... 
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