Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1992)42ITD84(Mad.)
..... since the assessee is a banking company, under the interest-tax act, 1974, interest-tax was exigible on the chargeable interest of the assessee.further, by virtue of the provisions of section 18 of the interest-tax act, 1974, the tax payable under the said act was deductible in computing the total income of the assessee under the income-tax act. ..... the foregoing analysis will indicate that the total income of an assessee computed under the income-tax act will not cease to be the total income computed under the said act, merely because a deduction which is not available under the income-tax act has been given to the assessee by virtue of the overriding provisions of a special act, namely, section 18 of the interest-tax act 1974. ..... it is common ground that while making the assessments under the income-tax act, the assessee was allowed the benefit of deduction in respect of the interest-tax payable under the interest-tax act, 1974.3. ..... the first schedule of the surtax act opens with the following words: in computing the chargeable profits of a previous year, the total income computed for that year under the income-tax act shall be adjusted as follows from the above, it would be clear that the base for computing the 'chargeable profits' under the surtax act is the total income computed following the rules and regulations under the income-tax act. ..... (b) rules 1 to 3 of the first schedule of the surtax act also do not provide for any such deduction. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1978)8ITD141(Mad.)
..... . (i) the following amounts shown as assets in the balance sheet shall not be treated as assets, namely:-- (a) any amount paid as advance tax under section 18a of the indian income-tax act, 1922 (11 of 1922), or under section 210 of the income-tax act, 1961 (43 of 1961); (b) any amount shown in the balance sheet including the debit balance of the profit and loss account or the profit ..... withdrawal of the first circular which is mentioned in the second circular is on a certain footing, which appears to us to be untenable and based on an incorrect view of the provisions of the income-tax act and the supreme court decisions.the aforesaid discussion would show that looking to the concept of contingent liability from an accountancy point of view provision for gratuity particularly that arrived at on the basis of actuarial ..... parties yet the court before sanctioning the compromises, would certainly satisfy itself that the direction proposed to be given by it pursuant to the consent terms, would not adversely affect or jeopardise the interest of the creditors.the judicial authority is, therefore, in favour of providing for all foreseeable outgoings in arriving at the market value of a share for such outgoings would not come to the ..... . any other interpretation would make the rules, which are intended for arriving at the ..... . the circular of the board having been issued on 14-8-1974, we consider it only reasonable to infer that this circular would have ..... published in 1974), it ..... 1974 ..... 14-8- .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD714(Mad.)
..... the underlying principle is that an assessee should obtain the benefit of depreciation only on so much of the cost as he has incurred or met.with a view to provide for this situation, the income-tax act defined the expression 'actual cost' in section 43(1) of the income-tax act to mean 'the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any of the person or authority'.the definition of ..... the statement of objects and reasons appended to the amendment bill clearly provided that the intention for the insertion of the explanation was to make it clear that where a part of the cost of the asset was met in the course of business from an outside scurce, depreciation is to be allowed only on the net cost borne by the owner.he submitted that ..... the true reason of the remedy and the construction that the judge has to place upon such a rule especially to suppress the mischief and advance the remedy and to suppress subtle inventions and evasions for continuance of mischief and to add force and life to the cure or remedy.he says that before ..... itr 61 for the purpose of finding out the meaning of the word 'met' used in the definition.he also referred us to section 19 of the transfer of property act for the difference between vested interest and contingent interest and contended that what the assessee got by way of subsidy is not a contingent interest but a vested interest. ..... of 1977-78 1974-75 2,698 3,875it .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)1ITD504(Mad.)
..... the ito, however, considered that there was a sale or transfer, which attracted not only assessment of profit under section 41(2) of the income-tax act, 1961 ("the act") in regard to the assets on which depreciation had been allowed to the assessee, but also capital gains in regard ..... in this case, as we have already noticed, there is intention to the contrary in the subsisting partnership deed.it may also be that in the property or assets of the firm all the partners have joint and common interest and by reason of entries in the accounts and the transactions carried out the property and assets vest only in two of them, namely, shri rajamani and shri thangarajan, and there is consequently a change of ownership from ..... or market rate, whichever is lower, and the parties of third to seventh parts shall receive the balance standing to their credit only after making adjustments for profit or loss up to the date of dissolution and further shall have no right to demand revaluation of the assets in the partnership deed dated 5-4-1974, evidencing certain further change by way of retirement of some partners and introduction of new partners also, clause 9 provides that only the party ..... , took in five more partners, in clause 9 it is provided that the parties of the first and second parts, namely, shri rajamani and thangarajan, or their duly authorised nominees alone have the power to borrow, pledge, sell or mortgage any of the assets of the partnership for the purpose of the partnership. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)1ITD1120(Mad.)
..... later, however, it appears that she had filed a revision petition, before the commissioner, claiming exemption in regard to such interest as exempt by virtue of section 10(4a) of the income-tax act, 1961.5. ..... the first objection is against the rejection of the assessee's claim for exemption under section 6(ii) of the wealth-tax act, 1957 ("the act"), on an amount of rs. ..... coming to the assessment years 1977-78 and 1978-79, the assessee, in addition to the claim for deduction of income-tax liability for 1974-75 and wealth-tax liability for the years 1974-75 and 1977-78 on the similar lines as those related to the income-tax and wealth-tax liability for the earlier two years, the other two grounds of objection are to the restriction of the exemption granted to the assessee under section 5(1)(xxxiii) of the act, to a sum of rs. ..... in the instant case of the assessee before us, since she arrived in india on 20-10-1973, the seven assessment year periods will have to be reckoned from the assessment year 1974-75 and the exemption will be available to her only for four assessment years commencing from 1977-78. ..... moneys which were held in her account with the british bank of middle-east, bombay, by way of deposits, the accounts having been styled "non-resident (external) account", in accordance with fera and under its rules. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)2ITD266(Mad.)
..... these are five appeals by the department ; the first four relating to the assessment years 1973-74 to 1976-77 are under section 143(3), read with section 147(b), of the income-tax act, 1961 ('the act'), and the last appeal for the assessment year 1977-78 is under section 143(3). ..... learned counsel for the assessee urged before us that in respect of the first four years, the assessment years 1973-74 to 1976-77, the reopening of the assessments under section 147(&) of the act is bad.since the aac himself had not gone into this question, we do not give a finding on such an issue. ..... it is also further held that the pensioner was paying a part of his savings, out of his income, for safeguarding his interest in old age and his beneficiaries and the debt in respect of the pensioner's contribution existed between the widow and the uno, and the widow along with her dependent son as beneficiaries were getting ..... the tribunal held that such pension payments are not taxable, inasmuch as, by making contribution to the pension fund, the deceased had entered into an agreement as debtor and creditor, and the amounts were received in the nature of recompense and not as annuity, pension or salary ..... janaki lokanathan became entitled to the benefit payable as per rules and regulations of the pension fund. ..... the ito did not accept this contention and following his own findings, given in the reassessment made for the year 1974-75, held in his order dated 21-2-1979 that the said amount was assessable to tax.3. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD167(Mad.)
..... venkateswara rao, should not be assessed in his individual assessment, but should be clubbed with the income of his wife in her assessment, on account of section 64(1)(ii) of the income-tax act, 1961 ('the act'). ..... assessable in the hands of the individual, where such income is derived from a concern in which the individual has substantial interest but this section has to be invoked by the ito assessing the individual in whose hands the inclusion is made, in this case the assessee's wife and it is not open to the assessee to claim that the provisions of section 64(1)(ii) should be brought into play and he should not be assessed on the income admittedly received by him and which belongs ..... it is true that ordinarily the income is to be assessed in the hands of the person who is in receipt of such income, but the act makes a departure in this respect when it provides for inclusion, under section 64(1), in the assessment of an individual, of income belonging to some other person. ..... the contention of the departmental representative that the assessee cannot dispute the addition and it is for the ito while making the assessment on his wife, should invoke the provision, has no merit.we, therefore, accept the assessee's contention and direct deletion of the disputed addition. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)1ITD296(Mad.)
..... -in computing the total income of an assessee, there shall be allowed by way of deduction any interest paid by him in the previous year on any money borrowed for the payment of any tax due from him under this act.section 80v is an independent relief available against total income even if there were no business and the payment which qualifies for this relief cannot by any stretch of imagination be construed ..... under section 40a(8) of the income-tax act, 1961 ("the act"). ..... , clear that such disallowance is not warranted in respect of payment of interest allowable, say, against income from property or other sources and much less against interest under section 80v, the deduction of which arises after the computation of both business and ..... the other argument that interest allowed under section 80v is also subject to section 40a(8), is based upon the non obstante clause found in the words "notwithstanding anything to the contrary contained in any other provisions of this act" overlooking the immediately succeeding words "relating to the computation of income under the head 'profits and gains of ..... from business income.it has rightly claimed as a deduction only under section 80v of the act which reads as under : deduction of interest on moneys borrowed to pay taxes. ..... however, found that section 40a applied only to the computation of income from business and that there was no possibility of application of section 40a(8) in respect of interest claimed and allowed under section 80v of the act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)2ITD485(Mad.)
..... raise an interesting question as to whether a married daughter could be considered to be a minor child of the assessee for the purpose of section 64(1)(iii) of the income-tax act, 1961 ('the act').2. ..... daughter, it is derived from assets transferred directly or indirectly to the minor by his or her father or mother, and (hi) if it is derived from assets apportioned to him in the partition of a hindu undivided family.the parliament, therefore, enacted section 16(3) of the indian income-tax act, 1922 ('the 1922 act') adopting the above suggestion of the commission. ..... we, therefore, accept the contention of the assessee that the income arising to his married daughter, though a minor, cannot be added to his total income under section 64(1)(iii).the ito is directed to recompute the total income of the assessee by excluding the income arising to the married daughter of the assessee.the appeals ..... the supreme court has explained in the case of cit v.manilal dhanji [1962] 44 itr 876 that "this sub-section aims at foiling an individual's attempt to avoid or reduce the incidence of tax by transferring his assets to his wife or minor child or admitting his wife as a partner or admitting his minor child to the benefits of a partnership in a firm in which such individual is ..... moreover, the admission is, as a rule, merely nominal, but being supported by entries in the firm's books, the income-tax officer is rarely in a position to prove that the alleged participation in the benefits of the partnership .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)1ITD722(Mad.)
..... this ground was rejected by the first appellate authority, as according to him, section 16(i) of the income-tax act, 1961 ("the act") does not contemplate pro rata deduction as claimed by the assessee. ..... according to the authorities, interest is allowable against income from property under section 24(1)(vi) of the act, which authorise a deduction of the amount of interest payable on borrowed capital "where the property has been acquired, constructed, repaired, renewed or re-constructed" with such borrowed capital. ..... this spirit of the claim as well as the language of section 16(i), in our opinion, would warrant the allowance of standard deduction on a pro rata basis as claimed by the assessee. ..... the scheme of the standard deduction under section 16(7) is that the assessee should not get the higher deduction only if he is in receipt of conveyance allowance which is not taxable, or has free use of the car provided by the employer. ..... the learned departmental representative, however, claimed that the language of section 16(r) does not permit pro rata allowance.3. ..... the second ground relates to the claim of disallowance of interest to the extent of rs. ..... the word "acquired" in section 24(1 )(v) would certainly comprehend the purchase of sites. .....
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