Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)18ITD599(Coch.)
..... written down value of the lorry as on 1-4-1978 was rs.56,458. the assessee returned rs.25,362 as profit under section 41(2) of the income-tax act, 1961 ('the act') as under :sale proceeds 1,15,000less : written down value 56,458 _______finance charges 28,180 33,180 _______ ______profits under section 41(2) 25,362 ______ the ..... the rival submissions. from a perusal of section 41(2), it is clear that it creates a legal fiction under which the balancing charge is treated as business income chargeable to tax. as a general rule, a legal fiction is limited to the purpose for which it has been created. it cannot be extended beyond such legitimate frame.the bombay ..... assessee's claim for the deduction had to be accepted since in the assessee's case also the profit under section 41(2) had to be treated as business income and the expenses claimed, viz., finance charges and insurance, will be expenses admissible under section 37. but the aac observed that difficulty will arise in quantifying the amount .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)18ITD350(Coch.)
..... -1985.the assessee has taken two grounds in this appeal. the first ground is that the aac erred in concluding that the action under section 143(2)(b) of the income-tax act, 1961 ('the act') initiated by the ito was valid. the second ground taken by the assessee is that the aac erred in holding that the sale of agricultural land situated in alleppey ..... original assessment in this case was completed under section 143(1) on 30-4-1983 on a total income of rs. 33,700. after the completion of the original assessment, the same has been reopened under section 143(2)(b) for bringing to tax the capital gains arising on the sale of agricultural land belonging to the assessee and situated inside the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)19ITD177(Coch.)
..... income, the assessee objected to it on the following grounds : (1) the sales tax collected during the month of july was due to be paid to the state government only on the 20th ..... liabilities side under the head 'sundry creditors-for sales tax'. the assessee explained that this represented sales tax collections made during july and part of august 1983 which were due for payment in august and september. when the ito pointed out that according to the provisions of section 43b of the income-tax act, 1961 ('the act'), only tax paid becomes eligible for deduction in computing the total .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)19ITD587(Coch.)
..... apparently the assessee did not claim the amount of rs. 1,06,004.70 as business or trading loss. the assessment was completed under section 143(3) of the income-tax act, 1961 ('the act') on 23-10-1978 accepting the value of the closing stock as shown by the assessee. certain disallowances and additions have been made in that assessment. an appeal was ..... which forms part of the assessment proceedings and not only the return. if an assessee omits to claim the relief allowable to him under the provisions of the income-tax act, 1961, it could not be said that he is not entitled to get that relief. it is the duty of the ito and other officers administering the ..... . k.n. oil industries [1983] 142 itr 13 held as under : the record of assessment is not confined to the return. section 154 of the income-tax act, 1961, which confers jurisdiction for rectifying a mistake enables the ito to assume jurisdiction when he finds 'any mistake apparent from the record'. the word 'record', as used in section .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)19ITD816(Coch.)
..... the assessee. the ito's power to substitute a system of accounting for the one followed by the assessee flows from the provisions of section 145 of the income-tax act, 1961. it is, therefore, imperative that before rejecting the system of accounting followed by the assessee, the ito must refer to the inherent defect in the system ..... department. the assessee in this case is following the last-in, first-out method. reference may be made to the commentary of sampat lyengar's law of income-tax, 7th edn., vol. 4/pp. 3445fand 3448. where an assessee had been following a particular method of valuing the closing stock and that method had been ..... the department. in that background, the assessee urged that the present efforts of the ito to unsettle this accepted method of valuation would not only affect the taxable income of the firm but will also distort the results. before the commissioner (appeals), the assessee filed computation statements for the assessment years 1977-78 onwards. the commissioner .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)19ITD866(Coch.)
..... of her retirement from the firm is against jaw and the facts of the case. he should have appreciated that the share income has been adopted according to the order under section 158 of the income-tax act, 1961 ('the act') in the case of the firm. in the absence of any express stipulation in the deed of partnership entered into between the ..... point, if arises in his individual assessment, in an appeal filed against his own individual assessment. under section 246(1)(c) of the act an assessee is entitled to object to the amount of income assessed in his/her hands, here this appeal is filed under section 246(1 )(c) before the aac. so the a ac was ..... lallubhai patel v.patel bhailal narandas air 1968 guj. 157. section 247 provides that any partner of such firm may appeal against the assessment/allocation of the firm's income, but such appeal has to be preferred not against his individual assessment but against the assessment of the firm itself.beyond the two questions, viz., the determination of .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1986)19ITD835(Coch.)
..... two assessees herein but the shares of all the partners were reduced and all partners had suffered detriment. so, if any assessment has to be made under the gift-tax act, 1958 ('the act') in respect of the said transfer it should have been made on the firm and not on these two assessees. this view has been approved by the madras high ..... the forfeiture of a part of each partner's share of profits in the firm was without consideration and had been effected with a view to benefit the incoming partner and that this act on the part of these assessees tantamounted to gifts. he further held that the assessees had foregone 1/72 portion of their rights to enjoy profits of the ..... effect : as rightly pointed out by the gto each of the assessees had foregone 1/72 portion of their rights to enjoy profits of the firm in favour of the incoming minor. the case of m.k. kuppuraj (supra) clearly applies to the facts of the case. the case of harinder katyal (supra) is distinguishable because in that case the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1987)20ITD69(Coch.)
..... equal rights in the conduct and management of the business jointly and severally. the gto served a notice under section 16 of the gift-tax act, 1958 ('the act') calling upon the assessee to file her gift-tax return. a nil return was filed in pursuance thereof. according to the representative of the assessee there was no gift involved in the ..... sharing right in the business of the firm in favour of mrs. surajben k. mehta without adequate consideration and so the case involved liability to gift-tax under section 4(1)(a) of the act. a notice under section 16 was, therefore, issued to the assessee requiring her to file the return of gift for the assessment year 1979-80 ..... surrender of 5 per cent right in favour of the incoming partner. this contention was not accepted by the gto. he held that 5 per cent .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1987)20ITD578(Coch.)
..... this appeal filed by the assessee is against order of the commissioner under section 263 of the income-tax act, 1961 ('the act') dated 18-8-1984 for the assessment year 1979-80, for which the previous year ended ..... the decisions on this point relied on by the assessee's counsel as well as the departmental representative in chaturvedi and pithisaria's income-tax law third edn.. vol. 5. one view is that the doctrine of merger would operate only on matters which were the subject ..... following the said decision we hold that the notification dated 29-3-1979 is effective for the assessee as well as the income-tax department or for that matter the public in general from 3-4-1979 only. in fact in this case the secretary to ..... the alleged assumption of jurisdiction wrongly by the commissioner does not arise. reliance is placed on the decisions quoted in chaturvedi and pithisaria's income-tax law.. fifth edn., vol. 5, page 4594.5. we have considered the rival submissions. it is seen that the government's .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1987)21ITD455(Coch.)
..... on 30-6-1978.2. in the original assessment made on 8-4-1981 under section 143(1) of the it act, 1961, investment allowance on intensive care unit was allowed as deduction. later on the income-tax officer noticed that the investment allowance claimed by the assessee in respect of the intensive care unit was not allowable under ..... the act. since this was a mistake apparent from the record, a show-cause notice under section 154 was issued to the ..... if he was of the opinion that the assessment made under section 143(1) was incorrect, inadequate or incomplete in any material respect.section 154 of the it act, 1961 is a general provision for rectification of mistakes apparent from the record. specific provision prevails over general provisions in the statute. so, the ito was not correct .....
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