Court : Supreme Court of India
Reported in : AIR1966SC30; [1965]57ITR521(SC); [1965]3SCR818
..... payments made under the agreement with the said government as being expenditure incurred solely for the purpose of earning such profits within s. 10(9) of the income-tax act. in dealing with the questioin, lord macmillan observed : 'a payment out of profits and conditional on profits being earned cannot accurately be described as a payment ..... business profits and not statutory profits. they are real profits and not notional profits. the real profit of a businessman under s. 10(1) of the income-tax act cannot obviously include the amounts returned by him by way of rebate to the consumers under statutory compulsion. it is as if he received only from the ..... expenditure wholly and exclusively incurred for the purpose of the company's business and, therefore, it is an allowance deductible under s. 10(2)(xv) of the income-tax act for computing the profit of the appellant's business. (3) the company follows the mercantile system of accounting and, therefore, the amount of rebate so reserved is .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1966SC1260; [1966]59ITR666(SC); [1966]2SCR296
..... e., on the basis of the provisions of the indian income-tax act. the indian income-tax act, 1922, hereinafter called the act, admittedly applied to hyderabad state from january 26, 1950. under s. 3 of the act, where any central act enacts that income-tax shall be charged in any area at any rate or rates, tax at that rate or those rates shall be charged for that ..... case and referred four questions to the high court of andhra pradesh for its decision. on july 4, 1961, the high court answered some of the questions in favour of the assessee and others against him. the commissioner of income-tax filed two appeals to this court, being civil appeals nos. 46 and 47 of 1964, insofar as the ..... not detain us, as it was answered by this court in sri sudhansu shekhar singh deo v. the state of orissa : [1961]41itr743(sc) in the context of the claim of exemption from agricultural income-tax by an ex-ruler of an indian state based upon articles in a merger agreement, similar to the one now in question. this .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1986SC376; (1985)49CTR(SC)183; [1985]156ITR497(SC); 1985(2)SCALE803; [1985]Supp3SCR209; 1986(1)LC572(SC)
..... her share of speculation profits from the firm for the assessment year under appeal as per the provisions of section 78(2) of the income tax act, 1961 (hereinafter referred to as the act). section 78 of the act is as follows:78. carry forward and set off of losses in case of change in constitution of firm or on succession. - ..... material for our present purpose, to be referred to.7. for the assessment year 1962-63, the income tax officer while making the assessment of the assessee included under section 64 of the income tax act, 1961., in her total incomes the share income as well as the interest earned by the minor adopted son from the partnerships to the benefits of ..... of the partners - in 1947 the partnership was converted into a limited company and the assessee claimed relief under section 25(4) of the indian income tax act, 1922. the income tax officer disallowed the claim on the ground that the partners of the firm in 1939 being different from the partners of the firm in 1947, no .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1999SC2276; [1999]237ITR6(SC); JT1999(2)SC126; 1999(2)SCALE8; (1999)3SCC304; [1999]1SCR948
..... exercise of the powers conferred by section 104(3). it read thus :in exercise of the powers conferred by sub-section (3) of section 104 of the income-tax act, 1961 (43 of 1961), and in partial modification of the ministry of finance (department of revenue and insurance) notification no. s.o.2007 dated the 6th june. 1967, the central ..... . no. 3210, dated 8.8.1969 and therefore the assessee would be entitled to enjoy the exemption from the operation of the provision of section 104 of the income tax act. 1961?2. as indicated in the questions, we are concerned with the assessment years 1972- 73 to 1974-75.3. to appreciate what is involved, it is necessary ..... to set out, at the outset, the provisions of section 104 of the income tax act, 1961 so far as they are relevant:104. income-tax on undistributed income of certain companies -(1) subject to the provisions of this section and of sections 105, 106, 107 and 107a, where the .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1961SC1579; [1961]42ITR392(SC); [1962]1SCR257
..... .' 43. these observations, though made under a different statute, are, in general, true of a business as such, and can be usefully employed under the indian income-tax act. our act divides the sources of income, profits and gains under various heads in s. 6. business is dealt with under s. 10, and the primary condition of the application of the section is ..... to error. it is well to remember the wholesome advice given by lord dunedin in green v. gliksten & son ltd. [(1929) 14 t.c. 364.] that 'in these income tax act cases one has to try, as far as possible, to tread a narrow path, because there are quagmires on either side into which one can easily be led.... '. 13. the ..... it is clear that the business of the appellants as tea-growers and tea-manufacturers had come to a stop. the word 'business' is not defined exhaustively in the income-tax act, but it has been held both by this court and the judicial committee to denote an activity with the object of earning profit. to say that a business is .....
Tag this Judgment!Court : Supreme Court of India
Reported in : [1968]67ITR84(SC)
..... before the commissioner. the assessee appeared before the commissioner on march 15, 1963, and on the same day the commissioner passed an order under section 33b of the income-tax act, 1922. in the concluding paragraph of the order he stated : 'having regard to all the facts and circumstances of the case as i consider that the assessments ..... her father-in-law, etc., which should have put any income-tax officer on his guard. but the income- tax officer without making any enquiries to satisfy himself passed the assessment order on march 30, 1961, for the assessment years 1952-53 to 1957-58 and on april 26, 1961, for the assessment years 1958-59 to 1960-61. no ..... 1957-58, 1958-59, 1959-60 and 1960-61, and other connected records i consider that the orders of assessment passed by the income-tax officer, 'd' ward, howrah, on 30th march, 1961, and 26th april, 1961, are erroneous in so far as they are prejudicial to the interest of revenue for the following reasons amongst others. 2. enquiries made .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1963SC1484; [1963]Supp(1)SCR871
..... it came into force and that appeal was competent only if certified to be a fit one for appeal. 7. section 66a was introduced in the income-tax act by s. 8 of the indian income-tax (amendment) act (24 of 1926) to provide for appeals against judgments of the high courts to the privy council and by the adaptation order of 1950 to ..... order is not final within art. 133. jethanand & sons v. state of u.p. : [1961]3scr754 and sardar syedna taher saifuddin sahib v. the state of bombay [1958] s.c.r. 1007. considering the history of legislation of s. 66a of the income-tax act and the fact that the high court was exercising its advisory jurisdiction and that it passed an ..... open the door to fresh evidence.' 13. another case where the scope of s. 66(1) was defined is commissioner of income-tax v. scindia steam navigation co. ltd. : [1961]42itr589(sc) . it was there held that the high court acted purely in its advisory capacity on a reference which properly came before it under s. 66(1) or (2). it gave .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1963SC1343; [1963]48ITR237(SC); [1964]1SCR163
..... was received by the assessee was a compensation which was compellable at law. it was pointed out that the object of the indian income-tax act was to tax 'income' a term which it did not define. income however connoted a periodical monetary return 'coming in' with some sort of regularity, or expected regularity, from definite sources. the ratio ..... the only case of this court dealing with an assessment under explanation 2 to sub-s. (1) of s. 7 of the act is mahesh anantrai pattani v. the commissioner of income-tax, bombay north, ahmedabad : [1961]41itr481(sc) . the assessee in that case served as dewan of the state of bhavnagar and, on retirement, was sanctioned a ..... counsel for the department has put it, can be accepted as correct. in mahesh anantrai pattani v. the commissioner of income-tax, bombay north, ahmedabad : [1961]41itr481(sc) , this court had to consider s. 7(1) of the act and explanation 2 thereto, as they stood prior to the amendments in 1955. the facts of that case were these .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1963SC493; [1962]45ITR271(SC); [1962]Supp3SCR455
..... been paid thereon. he averred that this was a mistake' apparent from the records and stated that he intended to rectify the same under s. 35 of the income tax act.. the four assessees objected to the rectification, but almost the entirely of the grounds on which the objection was based related to the legality of the original assessment and ..... from this registered firm. in such circumstances the learned judges held that what was distributed to the individual partners could not be deemed to be dividend income within section 16(2) of the income-tax act. it is to test the correctness of this construction of section 16(2) that these appeals have been preferred. 4. in our opinion, however, ..... dividend 'deemed to be declared' under s. 23a among the shareholders of the company notices .were issued to the four partners under s. 31 of the income tax act. in respondent to the notice the partners appeared and it was stated in their behalf that the 40 shares hold by three of the partners in .the company .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1973SC2352; [1973]88ITR439(SC); (1973)4SCC175
..... hegde, j.1. this appeal by certificate arises from the decision of the high court of allahabad in a reference under section 66(1) of the income-tax act 1922 (to be hereinafter referred to as the act). the assessee is a hindu undivided family. in this case we are concerned with the assessee's assessment for the assessment year 1950-51.2. the ..... whether the amount of rupees 62,500/- was liable to tax under section 4(1)(b)(iii) of the indian income-tax act?3. the high court answering the first question, came to the conclusion that the notice in question was a valid notice and it was a notice under ..... by the issue of a notice under section 34 of the indian income-tax act fell within the ambit of section 34(1) (a) of the act or under section 31(1)(b) of the act?(2) whether the service of the notice under section 34 of the indian income-tax act by affixture on the residential house of the assessee was legal and proper?(3) .....
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