Court : Mumbai
Reported in : [1993]204ITR272(Bom)
..... entire property of the bigger hindu undivided family was partitioned amongst the seven smaller assessee hindu undivided families, and (ii) whether the assessee-hindu undivided families are entitled to benefit under section 54 of the income-tax act, 1961 ('the act'). 2. ..... hindu undivided family of shri gordhandas vallabhdas kapadia and his sons on the death of the widow of the late vallabhdas, further, in view of the clear provisions of section 54 of the act, as they stood at the relevant time the tribunal erred in law in accepting the assessee hindu undivided families claim of benefits under section 54 of the act as such benefit could be given only to an individual-assessee. 9. ..... as regards the applicability of the provisions of section 54 of the act, learned counsel for the revenue pointed out that the benefit under that section was available only to an individual assessee an not ..... at the instance of the revenue, the tribunal has referred to us the following two questions under section 256(1) of the act : '(1) whether, on the facts and in circumstance of the case, the tribunal was justified in holding that shri gordhandas vallabhdas kapadia and his six sons who in their turn ..... they also held that the benefit under section 54 of the act was available to an individual assessee and ..... he submitted that the tribunal was not not justified in holding that the assessee-hindu undivided families would be entitled to the benefit under section 54 of the act. ..... benefit under section 54 of the act .....
Tag this Judgment!Court : Mumbai
Reported in : (1991)97CTR(Bom)163; [1991]191ITR384(Bom)
..... the income-tax appellate tribunal has referred to this court the following question of law under section 256(1) of the income-tax act, 1961 (for short, 'the act') : 'whether, on the facts and in the circumstances of the case and on the interpretation of the trust deed dated june 30, 1962, the assessee were liable to pay tax on ..... mentioned in clauses (iii) and (iv) of sub-section (1) of section 160 are liable as representative assessees or any part thereof is not specifically receivable on behalf or for the benefit of any one person or where the individual shares of the persons on whose behalf or for whose benefit such income or such part thereof is receivable and indeterminate or unknown (such income, such part of the income and such persons being hereafter in this section referred to as ..... -testamentary instrument and the income-tax officer is satisfied, having regard to all the circumstances existing at the relevant time, that the trust was created bona fide exclusively for the benefit of the relatives of the settlor, or where the settlor is a hindu undivided family, exclusively for the benefit of the members of such family, in circumstances where such relatives or members were mainly dependent on the settlor for their support and maintenance; or.... ..... 164 of the income-tax act, 1961 ?' 2. ..... that the assessees' case falls within the four corners of the proviso of sub-section (1) of section 164 of the act and the income was liable to be assessed at the maximum rate of tax, i.e., 65%. .....
Tag this Judgment!Court : Mumbai
Reported in : AIR1985Bom183
..... consequently the petitioner is disentitled to benefit of the exemption from the provisions of the ceiling act of 1961 as held by both the tribunals below and i uphold the said finding.7 ..... it was held that the petitioner was not a public trust on 4-8-1959 or 26-1-1962 when maharashtra agricultural lands (ceiling on holdings) act, 1961 came into force, as the petitioner failed to prove that it applied for registration within the specified time as required under s. ..... special deputy collector held that major portions of agricultural income was not spent for education or medical relief and hence he held that the lands of the petitioner cannot be exempted from the ceiling act, 1961 and the case of the petitioner does not fall under latter part of s. ..... on return filed by the petitioner under s.12 of the maharashtra agricultural land (ceiling on holdings) act,1961, the special deputy collector (land revenue) nagpur after inquiry, held that the petitioner held 479.43acres of surplus land vide order dated 31-31971.this order was challenged in appeal before the ..... petitioner was not a public trust on 4-8-1959 or 26-1-1962, the appointed date under the ceiling act of 1961. ..... in thana unit were shown to be running in losses except in 1961and it is observed that in 1961 also major portion of income was not spent on education and medical relief. ..... 58 of the bombay public trusts act, 1950, for the period ending on 30-6-1961 to 30-6-1965 on 18-3-1976 in pursuance of demand notices will not assist .....
Tag this Judgment!Court : Mumbai
Reported in : (1991)93CTR(Bom)237; [1991]187ITR25(Bom)
..... (whether convertible into money or not) to any employee or incurs directly or indirectly any expenditure or is entitled to any allowance in respect of any assets of the assessee used by an employee either wholly or partly for his own purposes or benefit, then, subject to the provisions of clause (b), so much of such expenditure or allowance as is in excess of the limit specified in respect thereof in clause (c) shall not be allowed as a deduction.'7 ..... . (iii) any expenditure incurred after the february 29, 1964, which results directly or indirectly in the provision of any benefit or amenity or perquisite, whether convertible into money or not, to an employee (including any sum paid by the company in respect of any obligation which but for such payment would have been payable by such employee), to ..... under :'whether, the expenditure incurred on repairs of the assessee's own flats and the flats taken by it on lease and used by its employees for residence is to be considered for disallowance under section 40a(5) of the income-tax act, 1961 ?'3. ..... a deduction in excess of the specified limit where the assessee incurs directly or indirectly any expenditure or is entitled to any allowance in respect of any assets of the assessee used by 'an employee' either wholly or partly for his own purposes or benefit ..... second part so far as it is relevant for the case applies to a case where the assessee incurs any expenditure in respect of any of its assets used by an employee for his own purposes or benefit .....
Tag this Judgment!Court : Mumbai
Reported in : [1991]192ITR128(Bom); 1991(1)MhLj572
..... held that the activity of the assessee by way of production of motion pictures was liable to be treated as an 'industrial undertaking' within the meaning of section 80j of the income-tax act, 1961, and the assessee was entitled to the necessary relief under the said section for the accounting period relevant to the assessment year 1972-73 and all subsequent years, subject to the assessee satisfying the ..... the assessee claimed the benefit of deduction under section 80j of the income-tax act, 1961, on the ground that the said business was an 'industrial undertaking' within the meaning of the said ..... 'whether, on the facts and in the circumstances of the case, the activity of the assessee of producing cinematograph films is an 'industrial undertaking' for the purpose of deduction under section 80j of the income-tax act, 1961, for the assessment years 1972-73, 1973-74 and 1974-75 ?' 2. ..... has referred the following question to this court for its decision under section 256(1) of the income-tax act, 1961, at the instance of the commissioner of income-tax, bombay. ..... 'manufacture of an article or goods' within the meaning of section 104(4)(a) as it then stood, it follows that the said activity must be treated as an 'industrial undertaking' within the purview of section 80j of the income-tax act, 1961. ..... the revenue, has fairly admitted that the above-referred circular is still operative and is being given effect to for the purpose of applying section 104(4)(a) of the income-tax act, 1961. .....
Tag this Judgment!Court : Mumbai
Reported in : [1994]207ITR442(Bom)
..... the agreement dated february 14, 1963, the development rebate which have been allowed to the assessee-firm for the assessment years 1961-62 to 1962-63 must be deemed to have been wrongly allowed having regard to clause (i) of the explanation to section 33(4) read with section 34(3) of the income-tax act, 1961, and as such withdrawing the development rebate for the said assessment years and taking action under section 155(5)(i) was justified 2 ..... the explanation sets out the conditions with a view to restrict the benefit of section 33(4) to cases of real succession and it is that context that provides, inter alia, that all the property and liabilities of the firm relating to the business should become the property and liabilities ..... (3) of clause 1, all the books debts and other debts due to the assessee-firm in connection with its business and the full benefit of all securities for such debts were transferred to the company. ..... it is for an assessee who claims the benefit of the exception to satisfy the income-tax officer that the conditions attached to the exception ..... by sub-clause (4) of clause 1, full benefits of licences, quotas and concessions in respect of machinery and raw materials and all other rights and privileges held by the assessee-firm in connection with its business were ..... for consideration is whether, in a case like the one before us, where the entire business of the assessee-firm as a going concern including all assets, liabilities, rights, privileges, benefits, etc. .....
Tag this Judgment!Court : Mumbai
Reported in : (1991)97CTR(Bom)186; [1991]191ITR483(Bom)
..... the income-tax appellate tribunal has referred the following two questions to this court under section 256(1) of the income-tax act, 1961 :'(1) whether, on the facts and in the circumstances of the case, the premium of rs. ..... the tribunal also came to the conclusion that the assessee-company had not acquired any benefit of enduring nature under the said agreement as the said agreement was merely a temporary agreement. ..... it was held by our high court that since the service line remanded the property of the electricity board, the assessee had not acquired any capital asset or an enduring benefit or advantage and the object of making the payment was purely one of commercial expediency. ..... the criterion to be applied is to see whether the assessee has obtained any advantage of an enduring benefit under the said agreement dated july 22, 1966.9. ..... assessee for the purpose of facilitating the running of its motor vehicles and was, therefore, incurred for running the business or working it with a view to producing profits without the assessee gaining any advantage of an enduring benefit to itself. ..... the question to be asked is whether the expenditure was incurred in the ordinary course of business or commercial expediency or was the expenditure incurred to acquire a capital asset or to acquire an enduring benefit. .....
Tag this Judgment!Court : Mumbai
Reported in : 2009(111)BomLR1905; (2009)223CTR(Bom)441; [2009]318ITR252(Bom); [2009]180TAXMAN494(Bom)
..... law for the purpose of calculating book profit under section 115 jb of the income tax act, 1961 under explanation 1 sub clause (iv) the export profits to be excluded from the book profits would be the export profits allowed as a deduction under section 80 hhc after restricting the deduction as per the provisions of sub-section 1b of section 80 hhc of the act or the export profits calculated as per sub-section 3 and 3a of section 80 hhc ..... possible to conceive of any degree of fairness and/or justice that mat companies, who for some periods were denied the benefit of section 80 hhc, because of the introduction of section 115(jb) explanation 1 (iv) are entitled to have their entire ..... is difficult to conceive of any rational reason as to why the legislature should have thought to give mat companies additional benefits than the other companies who are paying tax on total income and not the tax based on book profit as ..... when section 115ja was introduced and the benefit under section 80hhc was not available ..... finance act 1997 to give the benefit was ..... by section 80hhc cannot be sub-classified into two classes, when more so, for intermittent periods parliament had even denied the benefit of section 80hhc to mat companies ..... specified in sub-section (3) or sub-section (3a) of section 80 hhc or sub-section (3) of section 80 hhd, as the case may be, or ....the legislature, therefore, in case of mat companies choose not to initially give them the benefit of reduction of export profits.9 .....
Tag this Judgment!Court : Mumbai
Reported in : (1994)116CTR(Bom)1; [1994]206ITR23(Bom)
..... facts and in the circumstances of the case, the tribunal was right in holding that the applicant's liability for the payment of surtax under the companies (profits) surtax act, 1964, is not deductible in computing the income of the applicant under the income-tax act, 1961 (4) whether, on the facts and in the circumstances of the case, the tribunal erred in holding that an appeal did not lie on the facts and in the ..... have been incurred in the course of running the business or for protecting the business, it will be a revenue expenditure but if it is in connection with the acquisition of a benefit of enduring nature or an asset of permanent character, then the legal expenditure would partake of the character of capital expenditure. ..... there is, however, no dispute that, if a particular expenditure or payment result in an enduring benefit to the assessee or acquisition of any asset or benefit of a permanent nature (in the absence of special circumstances lending to an opposite conclusion), the expenditure cannot be held to be revenue expenditure but it would be an expenditure ..... itself, cannot convert expenditure incurred for acquiring a capital asset or benefit of enduring nature or setting up plant or machinery into revenue expenditure ..... the opinion that the madras high arrived at the conclusion in those cases that the expenditure was revenue expenditure in view of the specific finding of fact that no enduring benefit had accrued to the assessee as a result of the amalgamation. .....
Tag this Judgment!Court : Mumbai
Reported in : [1994]205ITR495(Bom)
..... 53,834 have been rightly included under section 64(1)(v) of the income-tax act, 1961, in the total income of the assessee for the assessment years 1971-72 and 1972-73 ..... the contribution of the assessee being one-third of the total contribution, the benefit accruing to his minor sons was also one-third of the total income, the income-tax officer took into account only one-third of the income of the trust and included the same ..... of persons from assets transferred directly or indirectly otherwise than for adequate consideration to the person or association of persons by such individual, to the extent to which the income from such assets is for the immediate or deferred benefit of his or her spouse or minor child (not being a married daughter) or both.' 8. ..... to any person or association of persons from assets transferred otherwise than for adequate consideration to the person or association of persons by such individual, to the extent to which the income from such assets is for the immediate or deferred benefit of his or her spouse or minor child (not being a married daughter) or both.' 7. ..... 1 lakh each with the trust for the benefit of their respective children numbering six as mentioned in the trust deed and thereafter a property was constructed with the said fund and other borrowed funds ..... 1 lakh each in the said trust for the benefit of their respective children numbering six as mentioned in the trust deed and a property had been constructed with the said funds and other borrowed funds .....
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