Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD513(Mum.)
..... open, then it could file a revised return under section 139(5) of the income-tax act, 1961 ('the act') claiming that the commission wrongly credited in the books as income was, in fact, not income and should be excluded from the computation of total income.the assessee did exactly this. the other course of action open to the assessee was ..... in this case, it was held that if income does not result at all, there cannot be a tax, even though in bookkeeping, an entry is made about a 'hypothetical income', which does not materialise. his point was that income liable to tax under the act must be real income, but not hypothetical income. further, the taxability of an item docs ..... . shoorji vallabhdas & co. [1962] 46 itr 144 (sc), wherein it has been held that only the real income and not hypothetical income is liable to tax under the act. the commissioner (appeals) considered the above contentions. he agreed with the assessee that there was absolutely no chance of recovery of the commission under .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)5ITD713(Mum.)
1. the assessee has made this miscellaneous application under section 254(2) of the income-tax act, 1961 ('the act') and thereby requested the tribunal to rectify its order dated 31-8-1982 in it appeal no. 1002 (bom.) of 1981, as mistake apparent, from the record is there in view of the following : (a) that at the time of arguments, the decision of the supreme court in the case of chainrup sampatram v. cit [1953] 24 itr 481 was cited, but the tribunal, in deciding the appeal, has failed to consider this decision; (b) that each territory specified in the table in the said rule 9a of the income-tax rules, 1962, is a unit as a whole and the statutory rule did not permit any bifurcation thereof ; (c) that if the picture is released in any part of the territory mentioned in the table, the distribution in the said territory should be treated as complete and, therefore, the tribunal has committed an error of law inasmuch as that territory 'k' mentioned in the said table is bifurcated ;
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD141(Mum.)
..... was not mainly engaged in the manufacturing activities nor its income from manufacturing activities exceeded 51 per cent of the total income. in the second year under consideration, the assessee applied to the ito to pass a rectification order under section 154 of the income-tax act, 1961 ('the 1961 act') and treat the assessee as an industrial company. by ..... an order under section 154 the ito refused to do so.5. the assessee appealed to the commissioner (appeals) against the orders under section 143(3) of the 1961 act for the assessment years 1979-80 and ..... on the aforesaid circular of the cbdt. in the second year, the commissioner (appeals) observed that the iac in his directions under section 144b of the 1961 act has held that the assessee was still engaged in business, and so was entitled to the set off of the carried forward loss of the earlier years. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD178(Mum.)
..... him. he stated that the entire expenses should have been allowed on this ground alone, because it satisfied all the conditions laid down undersection 37(1) of the income-tax act, 1961 ('the act'). further, he stated that apart from the five days spent in the conference and the two days spent in travelling, the balance of 30 days were also ..... of rule 6d with effect from 1-4-1964.as has been held in the case of ellerman lines ltd. v. cit [1971] 82 itr 913 (sc), the directions of the cbdt are binding on the income-tax authorities.13. we also find support for our conclusion from the aforesaid decision dated 3-10-1979 of the tribunal, which ..... europe, and took the opportunity of meeting his counterparts in the profession to study the methods of accounting, auditing, tax planning, etc., prevalent in those countries. after so observing, the ito invoked the provisions of rule 6d of the income-tax rules, 1962, and held that the expenses claimed by the assessee could not be fully allowed, but had .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD300(Mum.)
..... been filed by the department against the order, dated 20-4-1982, of the commissioner (appeals), by which she allowed the petition under section 154 of the income-tax act, 1961 ('the act') filed by the assessee, relating to the assessment year 1975-76.2. the original assessment in this ease was completed on 18-9-1978.during the previous year ..... , the bombay high court struck down the amendment as ultra vires, and held that the surplus arising out of the transfer of agricultural land could not be taxed under the income-tax act.4. soon after the aforesaid decision of the bombay high court became known to the assessee, it filed a petition dated 19-9-1981 addressed to the ..... a change in the constitution of the firm, or a succession of the business. further, he urged that the allahabad high court was dealing with a matter under the income-tax act. on the other hand, the bombay high court in the case of manubhai a. sheth (supra) was dealing with a constitutional issue. he urged that the decision .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)7ITD216(Mum.)
..... therefore, according to him, section 21(4) is not applicable.5. we have considered the submissions. in the order disposing of the income-tax appeals on identical point, the tribunal had upheld the application of section 164 of the income-tax act, 1961, on the ground that the beneficiaries were not known. in para 11 of the said order in it appeal nos. 3374 and 3375 ..... contingency is the son of bhagwatiprasad jhunjhunwala not getting married. if in the case of manager, court of wards (supra) the provisions of section 41(1) of the indian income-tax act, 1922, would be applicable, we do not see how the application of section 21(1) can be resisted in this case. ..... had reopened the assessment of both the trusts. the assessments had been made separately of the income arising to the two trusts in the hands of the respective trustees. the wto had also invoked the provisions of section 21(4) of the wealth-tax act, 1957 ('the act') and had assessed the trusts at the rate of 1 per cent.3. the assessees .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD483(Mum.)
..... acquiring residential accommodation for himself and his family.5. the ito came to hold the view that the assessee got a perquisite under section 17(2)(iii) of the income-tax act, 1961 ('the act').according to the ito, the normal rate of interest at which the assessee could have got the loan was 12 per cent per annum as against the rate of 4 ..... cent minus 4 per cent, i.e., at 8 per cent on the amount of the loan. purporting to act under rule 3(g) of the income-tax rules, 1962 he added a sum of rs. 1,136 as perquisite to the salary income of the assessee and made the assessment, accordingly.6. the assessee appealed to the aac and contended that he got ..... on the aforesaid decisions of the tribunal.10. finally, he referred to the commentary on income-tax law by n.a.palkhivala and b.a. palkhivala, volume i, page 310 (seventh edition).he took us through the decision in the case of hochstrasser (inspector of taxes) v. mayes [1961] 42 itr 457 (hl). he emphasised the fact that the house of lords held .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD606(Mum.)
..... works under the indenture, dated 31-3-1977, which was a deed of dissolution of the said partnership and were, therefore, not chargeable to income-tax under section 47(ii) of the income-tax act, 1961 ('the act'). the ito was of the opinion "there has been no division of the partnership assets and the court (sic) had only directed that ..... effect really one payment as value of the assessee's share on dissolution of the firm and as such these were not liable to income-tax under section 47(ii) read with section 45 of the act. this contention, raised on behalf of the assessee-appellant, has been seriously opposed on behalf of the department. the departmental representative, ..... in a supplementary order, dated 19-7-1982, held that "it would partake the character of interest only and, hence, was rightly brought to tax by the ito under the head 'income from other sources' ".4. in this appeal, the assessee challenges these decisions of the commissioner (appeals). it has been contended on behalf of the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD471(Mum.)
..... the department. the appeal for the year 1977-78 is directed against the order of the commissioner under section 263 of the income-tax act, 1961 ('the act') and the appeals for other years relate to section 143 of the act. the common ground in dispute in all these appeals relate to the inclusion of interest paid to hufs of mansukhlal dwarkadas and ..... pointed put that making such an entry would be an easy way of getting out of section 40(b). we de not think so, because there is nothing in income-tax law or accountancy which forbids a partner from immediately transferring whatever profits accrue to him to any other person, related or unrelated, a huf or a stranger. the ..... it is this amount of interest which the ito and the commissioner in their orders under section 263 wanted to add to the total income of the assessee-firm under section 40(b) of the act. the first appellate authority for the assessment years 1978-79 and 1979-80 upheld the department's order. for the assessment year 1977-78 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)6ITD781(Mum.)
..... that the reliance by the aac on the municipal valuation alone was erroneous. on behalf of the assessee, it is submitted that under section 23(l)(a) of the income-tax act, 1961 ('the act'), the annual value of any property would be the sum for which the property might reasonably be expected to be let from year to year. this provision , was ..... of the fair rental value. in the course ,of the hearing of the appeal, it was submitted that under explanation 2 to rule 3(a)(iii) of the income-tax rules, 1962, the fair rental value of unfurnished accommodation provided by the employer to the employee would be the rent which a similar accommodation would realise in the same ..... to be let from year to year in the case of mrs. sheila kaushish (supra), according to which the standard rent determinable under the provisions of the rent control act would be the annual value. therefore, the order of the aac basing the perquisite value under rule 3(a)(iii) on the municipal annual letting value of the premises .....
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