Court : Chennai
Reported in : [1984]149ITR108(Mad)
..... 12,838 to the estate account was hit by section 40(b) of the income-tax act, 1961, for the assessment year 1974-75 ?' 3. ..... amounts not deductible :- notwithstanding anything to the contrary in sections 30 to 39, the following amounts shall not be deducted in computing the income chargeable under the head ' profits and gains of business or profession ...... ..... the assessee went on appeal to the aac contending that the payment of interest is not to the minors, but to the estate of the deceased seeniappa nadar which is in the hands of the trustee and that, therefore, it should not be taken to be payment of interest to the minors who have been admitted to the benefits of the partnership. ..... 12,838 credited to the account of the estate of the late seeniappa was factually interest payable to the above-said two partners, namely, karunakaran and kartikeyan, and, therefore, the said amount cannot be allowed as a deduction in view of s ..... cit [1982] 137 itr 593, has dealt with a case of payment of interest to the family of the partner, since the partner represented his family in the ..... in support of the said proposition that there was no accrual of right to interest in favour of the minor partners, the tribunals has relied on the decision of the supreme court in cit ..... to the tribunal, in order to be a payment, there should be first of all an accrual of right to the payment and, on the facts of this case, there is no accrual of interest to the partners as such having regard to the terms of the will. .....
Tag this Judgment!Court : Mumbai
Reported in : (1982)28CTR(Bom)174; [1982]138ITR607(Bom); [1982]10TAXMAN169(Bom)
..... rejected the argument of the accountable persons that the sons had a joint interest along with the widow in the property in question and observed that 'section 2(15) of the act defines property so as to include any interest in the property which should certainly include the right of residence as well ..... now, section 7(1) of the act provides as follows :'subject to the provisions of this section, property in which the deceased, or any other person had an interest ceasing on the death of the deceased, shall be deemed to pass on the deceased's death to the extent to which a benefit accrues or arises by the cesser of such interest, including, in particular, a coparcenary interest in the joint family property of a hindu family governed by the mitakshara, ..... of the observations in the judgment will clearly show that even according to the division bench, the question as to whether the interest of the widow extended to the whole income of the property and whether the valuation in such a case could be made ..... free residence cannot be treated as an interest which extends to any income of the property, it is difficult for us to see how the valuation of the benefit accruing or arising out of the cesser of such interest, namely, the right of free residence, can be computed in accordance with the manner prescribed under ..... person then filed an appeal before the income-tax appellate tribunal and it was contended by the ..... act, 1953, estate duty thereon will be chargeable ..... 1973, 2 of 1974 and 9 of 1979 .....
Tag this Judgment!Court : Andhra Pradesh
Reported in : (1987)63CTR(AP)294; [1987]167ITR697(AP)
..... respect of the interest amount, the question that arose was whether it was allowable as a deduction under section 10(2)(iii) or 10(2)(xv) of the indian income-tax act, 1922, in computing its profits. ..... the instance of the assessee, the following two questions were referred by the income-tax appellate tribunal to this court for its opinion, under section 256(1) of the income-tax act, 1961 (act no. ..... for the assessee, it is contended that under section 37(1) of the act, the expenditure incurred by the assessee by way of payment of interest on the unpaid purchase money is a claimable ..... section 67(3) of the act deals with the method of computing a partner's share in the income of the ..... after holding that section 10(2)(iii) was not attracted since admittedly no amount was borrowed and, therefore, the interest paid did not qualify for deduction, the supreme court held, after referring to its earlier decision in state of madras v. ..... no stipulation anywhere in the documents placed before the income-tax appellate tribunal obligating payment of interest on the instalments in respect of the unpaid purchase money. ..... sub-section (3) enjoins that any interest paid by a partner on capital borrowed by him for the purpose of investment in the firm shall, in computing his income chargeable under the head 'profits and gains of business or profession' in respect of his share in the income of the firm, be deducted from the ..... sohanlal nyyar : [1974]95itr90(delhi) has also taken the same ..... before august 30, 1974. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : [2003]264ITR597(P& H)
..... it is claimed that in terms of section 10(29) of the income-tax act, 1961 (hereinafter referred as 'the act'), in the case of an authority constituted under any law for the marketing of commodities, any income derived from the letting of godowns or warehouses, for storage, processing or facilitating the marketing of commodities, is not to be included in computing the total income of a previous year of any person. ..... order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this act, the central government shall pay to such assessee simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund ..... 2), issued demand notice under section 156 of the act for the payment of advance taxes in terms of section 210 in respect of the assessment year 1973-74 on june 19, 1972, and january 2, 1973 (revised february 24, 1974), revised again calling upon the petitioner-corporation to pay advance tax of rs. ..... as such the said income derived from letting of godown or warehouses for storage, processing or facilitating the marketing of commodities is excluded and does not form part of the income which is chargeable to income-tax. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Indore
Reported in : (1982)1ITD615Indore
..... ; and (iii) the amount of the tax, penalty or interest payable in consequent of any order passed under or in pursuance of this act or any law relating to taxation of income or profits, or the estate duty act, 1953 (34 of 1953), the expenditure-tax act, 1957 (29 of 1957), or the gift-tax act, 1958 (18 of 1958)- (a) which is outstanding on the valuation date and is claimed by the assessee ..... a conclusion we derive support from the ratio in the case of kantilal manilal (supra), wherein their lordships, inter alia, observed as under : "if an amount of tax falls within the description given in section 2(m)(iii)(a) of the wealth-tax act, 1957, it would not be deductible even though it is a debt owed by the assessee on the relevant valuation date. ..... computed in accordance with the provisions of this act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than- (ii) debts which are secured on, or which have been incurred in relation to, any property in respect of which wealth-tax is not chargeable under this act ..... , for the assessment years 1971-72, 1972-73, 1973-74 and 1974-75, inter alia, on the following identical grounds: 1. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : (1980)15CTR(P& H)272; [1981]132ITR342(P& H)
..... as is clear from the provisions of section 37(1) of the act, any expenditure which is in the nature of capital expenditure or personal expenses of the assessee, cannot be allowed in computing the income chargeable under the head 'profits and gains of ..... , was an admissible deduction under section 37(1) of the income-tax act, 1961 ?'6. in i.t. ..... the learned counsel has pressed his claim under the provisions of section 37(1) of the income-tax act, 1961. ..... as is clear from what has been stated above, the short question which falls for determination in these cases, is whether the amount of interest claimed by the assessee regarding all the four assessment years, is an expenditure laid out or expended wholly and exclusively for the purpose of the business of ..... , was an admissible deduction under section 37(1) of the income-tax act ?'7. ..... his business and if in that case, he had incurred a loan as a matter of fact, for running his business, it is probable that the assessee could make a claim for the deduction of the amount of interest from the profits and gains of his business, but not in the facts and circumstances of the present case. ..... before the income-tax appellate tribunal by the assessee, the assessee claimed that his case was not covered by the provisions of section 36(1)(iii) or section 67(3) of the act, but the claim was covered by the provisions of section 37 of the act. ..... 73 to 75 of 1974, for our opinion :'whether, on the facts and in the circumstances of the case, ..... 1974. ..... of 1974 and .....
Tag this Judgment!Court : Chennai
Reported in : (1998)147CTR(Mad)514; [1998]233ITR370(Mad)
..... whether, on the facts and in the circumstances of the case, the appellate tribunal was right in holding that interest under section 244(1a) should be granted even in respect of the refund of interest levied under sections 139(8) and 215 of the income-tax act, 1961 2. ..... this tax case reference raises an interesting question on the interpretation of section 244(la) of the income-tax act, 1961, (hereinafter to be referred to as 'the act'). 2. ..... of any order of assessment or penalty and such amount or any part thereof having beenfound in appeal or other proceeding under this act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this act, the central government shall pay to such asses-see simple interest at the rate specified in sub-section (1) on the amount so found to be in excess from the date on which such amount was paid to the date on which the ..... though that order does not find a place in the typed set of papers, it is found from the statement of the case that the interest collected under section 215 of the act was refunded as no interest under section 215 was chargeable in the assessee's case. ..... 46,601 and computed the interest as under : interest on rs. ..... the original assessment for the assessment year 1974-75 was completed on august 29, 1977, and the order of assessment was the subject-matter of appeal before the first appellate authority and the appellate tribunal. .....
Tag this Judgment!Court : Mumbai
Reported in : (1985)87BOMLR132; (1985)47CTR(Bom)342; [1986]157ITR812(Bom); [1985]21TAXMAN131(Bom)
..... section 192 of the income-tax act, 1961, provides that any person responsible for paying income chargeable under the head 'salaries' shall at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made on the estimated income of the assessee under this head for that financial year. ..... it may be mentioned that rule 40 of the income-tax rules, 1962, deals with the circumstances in which an income-tax officer may reduce or waive interest, but it does not contemplate the waiver of interest payable under section 201(1) of the income-tax act, 1961.8. ..... alternatively, it was submitted that the levy of interest under section 201(1a) of the income-tax act, 1961, was penal and ought to be waived where the default was not intentional. mr. ..... they, therefore, became assessees in default under section 201(1) of the income-tax act, 1961, and they became liable to pay interest at the rate of 12% per annum. ..... 12 lakhs per annum and considering this and the fact that they were one of the major taxpayers, the interest charges under section 201(1a) of the income-tax act, 1961, should be fully waived. ..... as regards the contention about rule 119a, the commissioner referred to administrative instructions that for the period up to december 31, 1974, interest had to be calculated as if the rule was not in existence.3. .....
Tag this Judgment!Court : Punjab and Haryana
Reported in : [1989]180ITR416(P& H)
..... by virtue of section 40, the amounts detailed in the various sub-clauses of clauses (a) to (d) shall not be deducted in computing the income chargeable under the head 'profits and gains of business or profession' notwithstanding anything to the contrary contained in sections 30 to 39 of the act. ..... whether the tribunal has been right in law in holding that though the income-tax authorities may restrict or modify a claim of payment of salary to a partner but even such restricted or modified payment is disallowable under section 40(b) of the income-tax act, 1961, and thereby upholding the disallowance of rs. ..... where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in clause (b) of this sub-section, and the income-tax officer is of the opinion that such expenditure is excessive or unreasonable having regard to the fair market value of the goods, services or facilities for which the payment is made or the legitimate needs of the business or profession of the ..... the relevant provisions for our consideration in this section would be clause (b), the relevant portion of which is as follows :'(b) in the case of any firm, any payment of interest, salary, bonus, commission or remuneration made by the firm to any partner of the firm.'3. ..... during the period relevant to the assessment year 1974-75, the asses-see, a partnership concern, paid rs. ..... 18,000 in the appellant's case in respect of the assessment year 1974-75 ?' 2. .....
Tag this Judgment!Court : Gujarat
Reported in : (1988)71CTR(Guj)145; [1988]173ITR248(Guj)
..... whether the income-tax appellate tribunal was right in law in holding that the condition precedent in section 13(2)(h) of the income-tax act is not fulfilled in this case because that condition requires a positive act on the part of the trustees to invest the funds of the trust in certain concerns in which the persons referred to in section 13(3) have substantial interest and because such funds were not invested in purchasing the shares which ..... to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services; (d) if the services of the trust or institution are made available to any person referred to in sub-section (3) during the previous year without adequate remuneration or other compensation; (e) if any share, security or other property is purchased by or on behalf of the trust or institution from any person referred to in subsection (3) during the previous ..... of the assessee-trust and since these funds of the assessee-trust continued to remain invested during the previous year in the concerns in which the persons specified in sub-section(3) of section 13 have substantial interest, the dividend income derived from such shares cannot be excluded while computing the total income of the assessee-trust. ..... of the tribunal to compute the interest in the chargeable total income of the assessee ..... relevant to the assessment years 1972-73 to 1974-75, claimed exemption under section 11 in respect of interest derived from the trust property. .....
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