Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1999)70ITD330(Mum.)
1. A group of migrants, in the aftermath of partition, led by Mr.Parmanand Deepchand Hinduja came and settled in Bombay. They felt the need for medical care. These persons banded together and on account of their efforts, a small outdoor clinic was opened in December, 1951. In February, 1953, the clinic was converted into an indoor hospital with 30 beds which was progressively increased to 70. In 1954, the persons who started the clinic in a small way, formed a society which was named the "National Health and Education Society". It was registered under the Societies Registration Act on 13th April, 1954. In 1963 a new 100 bed hospital was commissioned in the same plot of land. Gradually this 100 bed hospital increased its activities and in 1972 ventured into medical research. The research institution also came to be recognised by the Government of India. The name of the hospital, after the advent of the research centre, was changed from National Hospital to "P.D.Hinduja National Hospita...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)18ITD226(Mum.)
1. This Special Bench was constituted to consider the question whether provisions of Section 40A(8) of the Income-tax Act, 1961 ('the Act') are applicable to assessment year 1976-77, irrespective of previous year followed by the assessee. A Bombay Bench had expressed the opinion that it would, while a Madras Bench had held that Section 40A(8) would apply only to expenditure on interest incurred after 1-4-1976.2. The assessee-company manufactures Pharmaceuticals, drugs and milk products. Its accounting year ended on 30-6-1975 which is relevant for the assessment year 1976-77 (year under consideration). The ITO had disallowed under Section 40A(8) Rs. 3,11,040. The only discussion in the assessment order as per paragraph 10 is that (assessee) has correctly shown disallowance at the rate of 15 per cent of Rs. 20,73,598 (out of interest paid) amounting to Rs. 3,22,040. Before the Commissioner (Appeals), the assessee raised an additional ground challenging the disallowance under Section 40A...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2000)72ITD1(Mum.)
1. This is an appeal by the assessee, M/s. Tata Chemicals Ltd., for the assessment year 1992-93, for which the relevant previous year ended on 31-3-1992. The assessee is a public limited company engaged in the manufacture of chemicals, salt and detergents in its factories. This appeal arises out of the assessment order passed by the Dy.Commissioner of Income-tax, Special Range I, Bombay, on 24-3-1995, under Section 143(3) of the Act, determining the total income at Rs. 76,84,31,176.2. The first ground is directed against the disallowance of interest under Section 36(1)(m) of the Income-tax Act, while computing the profits and gains of the business. The total claim of interest was Rs. 81,24,20,861, which was made in the revised return. The break-up of the claim is as below : Division 1,66,83,137 36,80,38,952 86,42,54,952(c) Gross Interest (a + b) 86,42,54,952(d) Less : Interest and out of borrowed funds 5,18,34,091(e) Net Interest claimed as 81,24,20,861 deduction In the assessment pro...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)100TTJ(Mum.)565
2. The only effective ground of objection by the Revenue is directed against the order of the CIT(A) in holding that interest income amounting to Rs. 46,74,87,123 on advances given to Reliance Industries Ltd., Lavanya Holdings and Trading (P) Ltd. and Reliance Industrial Infrastructure Ltd. had not accrued to the assessee, though the AO had rejected the assessee's claim of non-accrual/receipt of interest from the above three companies.3. The case of the Revenue is that the CIT(A) ought to have appreciated that the assessee-company itself had credited the interest income in its accounts, which are duly audited and subsequently, as an after thought, that the entries were reversed on 31st Oct., 1994, which was in the subsequent accounting year and the AO had rightly pierced the corporate veil and found that the assessee's claim of non-accrual of interest did not appear to be bona fide and correct. It is also the case of the Revenue that the CIT(A) ought to have ignored the agreement betw...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)16ITD128(Mum.)
1. These two appeals pertain to the estate duty proceedings arising out of the death of Shri P.G. Mehta. There are number of grounds in these appeals but the point that was referred to the Special Bench reads as follows : Whether in the case of coparcenary interest in joint family property constitutes property passing on the death of coparcener, the interest of the lineal descendants of the deceased can be aggregated under Section 34(1)(c) of the Estate Duty Act, 1953 to determine the rate of duty.The deceased was the karta of a HUF, which comprised of his three sons and his wife. Therefore, the Assistant Controller brought to tax one-fifth share of the deceased which would have been allotted to him if there had been partition before his death. He also included 3/5th share of his sons (i.e., lineal descendants) for rate purposes.3. The accountable person challenged this order before the Appellate Controller contending that the shares of the lineal descendants could not be aggregated f...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1988)25ITD479(Mum.)
1. This appeal by the assessee has raised several issues which are considered seriatim below. (i) Swastik Household & Industrial Products, (ii) Sarabhai Research Centre and (iii) Operation Research Group. A company, M/s. Karamchand Premchand Pvt. Ltd., transferred and assigned as a going concern on 30-6-1973 its various industrial undertakings and businesses to its wholly-owned subsidiary. While doing so, with effect from 30-6-1973, that company had transferred and assigned its industrial undertaking of Swastik Oil Mill division as a going concern to the assessee-company. With effect from the close of business of the assessee as on 28-2-1977, the assessee-company which had in the meanwhile set up two divisions, Swastik Research Centre and Operation Research Group, in 1974, transferred the industrial undertakings and businesses of Swastik Household & Industrial Products Division, business of Operation Research Group and the Sarabhai Research Centre to its subsidiary company, M/...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)8ITD57(Mum.)
1. These two appeals, one each by the assessee and the ITO, relate to the assessee's assessment for the assessment year 1967-68. The assessee is a non-resident company. It filed its returns of income for the first time for the assessment year 1971-72, inter alia, disclosing a loss of Rs. 7,272. The assessment was completed on 1-7-1975 determining the total income at Rs. 33,120. Return for the assessment year 1972-73 was filed on 10-2-1976 disclosing dividend income on 21,000 equity shares held by it in an Indian company by the name Albright Morarji & Pandit Ltd. During the course of proceedings for the assessment year 1972-73, the ITO came to learn that the assessee-company has sold its technical know-how relating to its designs, drawings, specifications, etc., and also certain patents to the Indian company under an agreement dated 10-2-1966 and that in consideration thereof the Indian company had allotted 21,000 equity shares of Rs. 50 each out of its initial issue of shares to t...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD451(Mum.)
1. These two appeals are filed by A-Z (Industrial) Premises Co-operative Society Ltd. and by Shri N.M. Virwani, against the order of acquisition passed by the competent authority under Section 269F(6) of the Income-tax Act, 1961 ('the Act'), dated 24-2-1984 acquiring property consisting of leasehold land measuring 17,199 sq. yards along with structures constructed thereon bearing C.S. No. 1/265, 267, 439, 440, 2/267 and 3/267 of Lower Parel Division,, Bombay.2. The facts relating to these appeals are that by an indenture of lease dated 21-5-1966, Amrut Banaspati Com. Ltd., a company limited under the Companies Act, 1956, leased to Virwani Construction Co., a proprietary concern of Shri N.M. Virwani ('the lessee'), a piece and parcel of vacant land measuring in the aggregate 17,199 sq. yards equivalent to 14,380 sq. metres situated at Fergusson Road, Parel, Bombay, for a period of 98 years from 21-5-1966 subject to payment of a monthly rental of Rs. 35,258. In pursuance of this lease a...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1991)36ITD508(Mum.)
1. The appeal by the revenue and the cross objection by the assessee are against the order of the CIT(A), for the assessment year 1983-84.2. The assessee is a non-resident company incorporated in the Federal Republic of Germany, hereinafter referred to as Daimler Benz. It had entered into an agreement on 16-1-1970 with M/s. Tata Engineering & Locomotive Company Limited ('Telco') whereby, under Clause 2(a), the former licensed the latter to manufacture direct injection diesel engine, type OM 352 and spare parts thereof. Clause 2(b) widens the scope of the licence to manufacture any other products, namely, new complete models of Daimler-Benz commercial vehicles and/or parts thereof, on terms and conditions mutually agreed upon. Clause 3(a) defines the nature of licence. It provides- 3(a) Daimler-Benz undertake to furnish to Telco all technical information, drawings, designs, manufacturing data, test reports and other information available with Daimler-Benz (except such documents and...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)47ITD103(Mum.)
1. This is an appeal by the assessee against an order of the Commissioner of Income-tax (Appeals )-XIX, Bombay, pertaining to the assessment year 1984-85.2. The grievance of the assessee is that the Commissioner of Income-tax (Appeals) erred in confirming the inclusion of Rs. 10,99,024 in the income of assessee. on the basis of excise duty refund received by the assessee.3. The assessee was sanctioned, during the assessment year under consideration, refund of Rs. 10,24,652 by the Central Excise Department, Bombay, vide letter dated December 20, 1982, which was encashed by the assessee. In addition to this amount, he also received another refund of Rs. 74,371 during the year, which makes up to a total of Rs. 10,99,024 received by the assessee in the entire year as refund from the Excise Department. The Income-tax Officer observed that the assessee has shown refund of Rs. 10,99,024 as liability in the balance-sheet. On being asked to explain, the assessee has mentioned that he paid exci...
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