Court : Gujarat
Reported in : [1980]122ITR499(Guj)
..... act, 1961, could be pressed into service so as to justify the inclusion of income arising from the properties transferred to a person or association of persons for the benefit of the spouse or minor child, the following conditions must be satisfied : namely, (1) there should be a transfer of assets; (ii) the transfer must be a transfer otherwise than for adequate consideration; and (iii) the income from such assets is intended for the immediate or deferred benefit of ..... opinion of the ito, the assets were transferred by the assessee to the trust otherwise than for adequate consideration for the benefit of the three minor sons and the benefit of the income arising from the said properties was deferred and, therefore, it was liable to be included in the ..... children without subjecting it to the tax liability of the settlor, is sought to be avoided by providing that such income would be includable in the hands of the assessee-settlor provided the benefit from the income of such assets is either immediately available or is deferred for the spouse or minor children of the settlor. ..... the income from such assets is for the immediate or deferred benefit of his/her spouse or minor child (not being a married daughter) or both' did not appreciably alter the position which was available under the old act, and that in order to press in service the provisions contained ..... 1961 act, it was necessary that the assets should be held in the relevant accounting year for the immediate or deferred benefit .....
Tag this Judgment!Court : Gujarat
Reported in : [1980]123ITR669(Guj)
..... it was further held by this court that the construction canvassed by the revenue, apart from militating against the aforesaid rule of construction, would subject the expenses incurred by a company for providing benefit or amenity or perquisite to a director or employee to the twin scrutiny, namely, prescribed ratio applicable to an employee and also the test of excessive and reasonable limits applicable to a director, and such a construction would result in absurdity inasmuch as the ..... expenses laid out by a company for providing amenity or benefit to an ordinary director would be subject only to the test of reasonableness and would put a director in a better position than a director-employee of a company for whose benefit or amenity or perquisite the company entails expenses, and that such a result could not have been envisaged by parliament. ..... the aac was of the opinion that in the absence of there being any specific provision in the act that the new unit should be altogether distinct and even physically at a distance from the old unit, and that, if the relief as admissible for assessment year 1968-69, in respect of the expended unit of the assessee- ..... act, 1961, with reference to the capital employed in the expansion of the plant and machinery. ..... act, 1961. 11. ..... act, 1961. ..... act, 1961, for the subsequent year, i.e. ..... act, 1961. .....
Tag this Judgment!Court : Gujarat
Reported in : (1990)83CTR(Guj)1; [1990]183ITR591(Guj)
..... been held that the assets so acquired were the assets by purchase by the assessee-society and its value would certainly have gone in to computation of capital for purposes of working out tax benefit, and that, merely because the government, instead of granting machinery or equipment in specie, aided by grant in cash with the avowed and specific object of purchase of equipment and machinery, the ..... to the previous year ending on march 31, 1963, in connection with the computation of capital employed by the society for purposes of tax holiday under section 84 (now section 80j) of the act and rule 19 of the income-tax rules, 1962, one of the claims which was made on behalf of the assessee-society was that the entire amount of grant-in-aid given by the goverment ..... following question of law under section 256(1) of the act: 'whether, on the facts and in the circumstances of the case, the tribunal was right in law in holding that the amount of subsidy received in the year could not be treated as part of the cost of the fixed assets met by the government and, therefore, the assessee would be entitled to benefits of depreciation, additional depreciation and investment allowance on the ..... deducted from the cost of its/his assets for the purpose of allowing depreciation, investment allowance and relief under section 80j of the income-tax act, 1961 ('the act', for short)? 2. ..... cit : [1961]42itr392(sc) , the assessee, which owned a tea estate consisting of tea gardens, factories and other .....
Tag this Judgment!Court : Gujarat
Reported in : [1977]108ITR654(Guj)
..... for the purpose of section 3(1)(d) of the act of 1961 what is required to be considered is the setting up of ..... company also, as part of the assets of that firm, acquired the know-how for the manufacture of aluminium conductors and other conductors and it got the benefit of the licence which was issued by the government of india in favour of prem industrial corporation. 15. mr. ..... section 3(1)(d) of the income-tax act, 1961, defines what is meant by 'previous year' so far as the facts of this ..... there was a clear distinction between a person commencing a business and a person setting up a business and for the purposes of the indian income-tax act, 1922, the setting-up of the business and not the commencement of the business was to be considered. ..... prem industrial corporation, passed on the benefit of this contract to the assessee-company and that contract was ..... 1 lakh or so and it also got the benefit of some contracts which the prem industrial corporation had entered into even before the assessee-company ..... according to that section, for the purposes of the act, 'previous year' means - '(d) in the case of a business or profession newly set up in the said financial year, the period beginning with the date of the setting up of the business or profession and ending with ..... under the indian income-tax act, 1922, also, section 2(11)(c) defined 'previous year' in the same manner and there also it was the period from the date of the setting up of the business or profession which was the material .....
Tag this Judgment!Court : Gujarat
Reported in : (1988)67CTR(Guj)233; [1988]171ITR504(Guj)
..... , the high court held that the profit earned by the association went to increase the funds of the association and benefits out of the same came to the members qua members, but not qua contributors or advertisers. ..... relevant years, the assessee-club claimed that the income derived by it was exempt by virtue of section 10(23) of the income-tax act, 1961 (hereinafter called 'the act'). ..... conceded before us that the assessee-club cannot fall within the meaning of 'similar association' used in section 28(iii) of the act, we must also hold that since the same expression used in section 44a has the same meaning, the assessee is not entitled to the benefit of section 44a of the act. 11. ..... an association or institution referred to in section 10(23a) from its purview, presumably because it desired to extend the benefit only to those associations the income whereof was chargeable under section 28(iii) and not to those associations which were given the benefit of deduction under section 10(23a). ..... , the intention of the legislature was to give the benefit of section 44a to all professional associations other than those referred to in section 10(23a) of the act. ..... ]69itr878(cal) , the association, a mutual concerns run on no profit basis, published a monthly magazine for the benefit of its members. ..... kumbakonam mutual benefit fund : [1964]53itr241(sc) , held that there was no identity between the contributors and the participants and hence the principle of mutuality could not be invoked in the facts .....
Tag this Judgment!Court : Gujarat
Reported in : (1969)ILLJ824Guj
..... terms and conditions of service of the petitioners to their disadvantage inasmuch as while under the terms and conditions of service applicable to them before the coming into force of the gujarat housing board act, 1961, they were eligible to be promoted to any post in the clerical group also, from their respective posts in the non-clerical-cum-technical group the impugned rules have created groups of clerical ..... follows : '(ix) all officers and servants in the employ of the dissolved boards shall stand allotted for service to the new board and shall, until provision is otherwise made under the provisions of this act, be subject to the conditions of service to which they were subject before the appointed day : provided that the conditions of services of any such officer or servant as applicable immediately before the appointed ..... out, clause (b) may with some stretch of argument be said to touch the fringe of rights of those who may claim to be entitled to the benefit of the tenements or the premises but in our view by and large the provision is only meant to directly touch a matter of internal management of ..... the board may, from time to time, with the previous sanction of the state government, make regulations consistent with this act and with any rules made under this act - (a) for the management and use of buildings constructed under any housing scheme; (b) the principles to be followed in allotment of tenements and premises; (c) the remuneration and conditions of service of the .....
Tag this Judgment!Court : Gujarat
Reported in : [1976]104ITR132(Guj)
..... to revenue expenditure incurred wholly and exclusively for the purpose of running their business and are, therefore, allowable as proper deductions under section 37 of the income-tax act, 1961, while the contention of the revenue is that such charges being levied on the basis of the estimated increment in the value of the land covered by the town planning scheme have nothing to ..... lessor on the other hand shall pay such contribution : (iii) no such contribution shall be levied on a plot used, allotted or reserved for a public purpose or purpose of the local authority which is solely for the benefit of owners or residents within the area of the scheme; and (iv) the contribution levied on a plot used, allotted or reserved for a public purpose or purposes of the local authority which is beneficial partly to the owners ..... . when an expenditure is made, not only once and for all, but with a view to bringing into existence an asset or an advantage for the enduring benefit of a trade,....there is very good reason (in the absence of special circumstances leading to an opposite conclusion) for treating such an expenditure as properly attributable not to revene but to ..... . since in these references we find that the betterment charges have been paid by the assessees under section 66 for the enduring benefit which their land lands have received as a rsult of the finalisation of the scheme, and since these charges have no connection either with their running business or with the production .....
Tag this Judgment!Court : Gujarat
Reported in : [1992]195ITR518(Guj)
..... and, pursuant to the order of this court, referred to the high court for its opinion, the following question under section 256(2) of the income-tax act, 1961 (hereinafter referred to as the 'said act') : ' whether, on the facts and in the circumstances of the case, the applicant is entitled in the assessment year 1972-73 to a deduction of ..... no portion of the provident fund was intended to be gratuitously used by the assessee-corporation and when the assessee-corporation had enjoyed the benefit of a portion of the fund by utilising the same for its business, it was bound to make compensation by paying interest to the fund in respect of the amount used and ..... fund were required to be deposited by the assessee-corporation as per its own policy with the banks or with the corporation under section 8 of the state financial corporation act, 1951, as was suggested in the audit note in which event the amount so invested would have earned the rate of interest applicable to such fixed deposits on long-term basis. ..... the only motive by which the assessee-corporation was actuated to pay the interest amount on the portion of the fund utilised by it was a purely commercial expediency for the ultimate benefit of the business of the corporation by securing goodwill amongst the employees. ..... shelat submitted that the assessee-corporation cannot be allowed to benefit by wrongful utilisation of a portion of the fund for its own business, at the cost of the revenue by being allowed deduction of the .....
Tag this Judgment!Court : Gujarat
Reported in : AIR1970Guj167; [1969]73ITR490(Guj)
..... unmarried during the relevant years of account was the sole beneficiary under the trust deeds and the entire income of the relevant account years was therefore receivable by the trustees on behalf of or for the benefit of the assessee and the assessee was liable to be assessed directly in respect of such income under section 166 of the income-tax act, 1961. ..... 161 and 164 shall not be construed to impair the right of the revenue to make direct assessment on the person on whose behalf or for whose benefit income is receivable or received by the representative assessee, if such right exists under some other provision of the act.now, under the charging provision of the act, an assessee can be assessed only in respect of income which has accrued or arisen to him or is received by him during the year of account and it would therefore ..... follow a fortiori that a person on whose behalf or for whose benefit income is receivable or received by the representative assessee cannot be directly assessed in respect of such income unless .....
Tag this Judgment!Court : Gujarat
Reported in : (1980)16CTR(Guj)337
..... clause (4) of this letter the assessee was informed that he would be entitled to other facilities and benefits, such as free medical benefits, to and fro passage to the assessee and his family at the time of joining and leaving his assignment in india and statutory benefits applicable to other employees of the assessee's rank in france. ..... it must be pointed out that the supreme court in that case was dealing with the 1922 act and at page 51 it has been pointed out :' ......income may accrue to an assessee without the actual receipt ofthe ..... act, 1961, the decision of the tribunal was ..... the terms of the letter of june 30, 1971, the assessee was also to be entitled to other facilities and benefits as admissible to the employees of his rank in france.3. ..... the word ' earned' even though it does not appear in section 4 of the act has been very often used in the course of the judgments by learned judges both in the high courts as well as the supreme court (vide cit ..... question so far as the retention remuneration is concerned is whether within the meaning of section 9(1)(ii) of the act the retention remuneration can be said to be salary earned in india. ..... under section 5, sub-section (1) :' subject to the provisions of this act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which- (a) is received or is deemed to be received in india in such year by or on behalf of such person ; or (b) accrues or arises or is deemed to accrue .....
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