Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1994)48ITD322(Mum.)
1. This is an appeal filed by the assessee against confirmation by the CIT(A) of levy of a penalty of Rs. 2,11,39,972 under Section 271 (1)(c) of the Income-tax Act, 1961, for concealment.2. The assessee is a registered firm carrying on business of 'Indigenous Bankers' since 1960. The business consisted of taking deposits from the public as well as advancing loans to the public.During the accounting year relevant to assessment year 1985-86, the firm had 180 branches spread over the States of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh besides its Head Office at Bombay.3. The assessee was following the calendar year as its previous year.Thus, the previous year for assessment year 1985-86 ended on 31st December, 1984. During this calendar year, certain amendments were brought about in the Reserve Bank of India Act, 1934, by introduction of Section 45S therein, with effect from 15th February, 1984. According to this newly introduced section, no firm shall, at any time, have deposi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2000)73ITD123(Mum.)
1. The assessee is a company. It was granted certificate of Registration No. 23334 of 1980, by the Registrar of Companies, Bombay, on 24-10-1980. Photocopy of the Certificate of Incorporation is provided at page 6 of the paper compilation filed on behalf of the assessee. As per the Certificate commencement of business was granted to the assessee dated 25th November, 1980, a copy of which is provided at page 7 of the paper compilation, and accordingly the assessee commenced its business. The company is a public limited company. Its business is that of investment and trading in shares by way of speculation and ready shares. M/s. H. B. Financial Consultants Pvt.Ltd., H-72, Connaught Circus, New Delhi was the Managers to issue of equity shares of 170000 at Rs. 10 each for cash at par. The registered office of the assessee was at 1111-A, Raheja Chambers, 213, Backbay Reclamation Scheme, Nariman Point, Bombay - 400 021. The authorised share capital was Rs. 30,00,000 divided into 3,00,000 eq...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1989)31ITD97(Mum.)
1. These two appeals by the assessee are taken together and disposed of by a common order.2. The assessee is a registered firm which derives income from manufacture and sale of bidis. The business was carried on by Smt.Ujjambai, wife of Shri Hargovind, and Smt. Jadaobai, wife of Shri Mohanlal, under the firm name of Messrs Mohanlal Hargovinddas. Smt.Jadaobai died on 12-4-1961 leaving behind an adopted son, Shri Parmanand Patel. Smt. Jadaobai also left a will executed by her which was registered on 22nd October, 1953. According to the will, all movable and immovable properties were given to Smt. Ujjambai. However, the properties, movable and immovable, given before her death, became the sole properties of the recipient. Shri Parmanand Patel joined the partnership with Smt. Ujjambai under the partnership deed dated 21-6-1961 and was entitled to 50% profit. Thereafter Shri Sravankumar, son of Shri Parmanand Patel, joined the partnership and a fresh partnership deed was drawn on 19-9-1963...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2004)85TTJ(Mum.)821
1. This appeal of the assessee is directed against the order of the CIT(A)-I, Mumbai, dt. 28th Feb., 2001, for the asst. yr. 1998-99. The assessee is a company belonging to the Mafatlal Group. The main objects of the company are to carry on the business of an investment company and to invest in and acquire and hold, sell or otherwise deal in shares, stocks, debentures, debenture-stocks, bonds, units, obligation and securities issued or guaranteed by Indian or foreign Governments, States, Dominion, Sovereigns, Municipalities or public authorities or bodies or any company corporation, forum or person whether incorporated or established in India or elsewhere. Thus, the main object clause of the company is to carry on business of finance and investments.2. The first three grounds of appeal taken up by the assessee pertain to the disallowance of interest of Rs. 1,74,12,682. The AO observed that the assessee-company has not given out any new finances during the accounting year relevant to a...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)14ITD35(Mum.)
1. This is the assessee's appeal preferred against the order of the Commissioner (Appeals). Though the assessee has raised as many as 22 grounds, in fact there are only three grounds as under: 2. That the assessee challenges the validity and legality of the assessment. 3. Disallowance of surtax liability and the expenses disallowed under Section 40A(5) of the Income-tax Act, 1961 ('the Act').2. The assessee-company manufactures various tungsten carbide products such as tips, dyes, nibs, drill steels, cutters, etc. The assessee-company follows previous year ending 31st December as accounting year.In the profit and loss account for the year under consideration, note 18 is relevant in which it was mentioned that last in first out method (LIFO) was adopted for computing direct cost and that on the basis of method which was used in the earlier years the cost as on 31-12-1975 was Rs. 48,659,804.It was the assessee's contention that because of the rising prices the assessee found it proper t...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)12ITD201(Mum.)
1. In this appeal, the revenue objects to the order of the Commissioner (Appeals) allowing a sum of Rs. 21,016 as business expenditure. On 29-3-1946, an immovable property was acquired on behalf of the Indore Mill Owners Association through its President, Sir Seth Hukamchand Sarupchand Kt., and the Vice President, Rai Bahadur Rajya Bhushan Seth Kanhaiyalal Nandlal Bhandari. According to the sale deed dated 29-3-1946 at pages 27 to 32 of the appellant's paper book, this property was purchased on behalf of the said association, which was not yet a registered corporation but which consisted of seven incorporated and registered companies under the Indore Companies Act, 1914. The assessee-company, the Hukamchand Mills Ltd., Indore, is the first company mentioned therein. It appears that these seven companies formed themselves into an association called the Indore Mill Owners Association and by resolution No. 1 dated 2-1-1946 resolved that the said association should buy all the property de...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1991)37ITD293(Mum.)
1. This is an appeal by the assessee against the order of the CIT (Appeals) for the assessment year 1984-85.2. The appellant herein is a non-resident banking company. The appellant has substantially raised three grounds in the present appeal which are dealt with seriatim.3. The first ground is that the CIT (Appeals) erred in rejecting the appellant's claim under Section 20 of the Act for deduction of proportionate expenses reasonably expended to earn interest on securities while computing income chargeable under the head "interest on securities" and thereby enhancing the disallowances under Sections 37 and 40A(5) of the Act. The CIT(Appeals) has dealt with this issue in para-2 of his order. It was the case of the appellant before the CIT (Appeals) that the ITO should have apportioned the gross expenditure between its two sources of income assessable under the head "interest on securities" and the head "profits and gains from business" and thereafter made disallowance under Section 40A...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)44ITD231(Mum.)
1. These eleven appeals are by the assessee against the orders of the Dy. CIT(A) for the assessment years 1969-70 to 1979-80, confirming the penalties levied by the ITO, under Section 271(1)(a) of the Income-tax Act, 1961. All these appeals are being disposed of by this common order, for the sake of convenience.2. The position of filing of the returns, the due dates and the issue of notice under Section 148 of the Act, is as under:Asst.Date of filing Due date Notice under sectionYear of return 148 issued on.1969-70 01-03-1978 30-06-69 10-03-1979 In response to the show-cause notices, the assessee stated before the ITO that his quantum appeals were pending before the Tribunal and, requested that the proceedings be kept pending till the disposal of the appeals by the Tribunal. As the limitation for levying the penalty was expiring on 31-3-1987, the ITO did not grant time to the assessee and levied penalties for various amounts, aggregating to Rs. 1,56,860 for the periods of delay, after...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)45ITD473(Mum.)
1. These are appeals by the department and cross appeals by the assessee. For the sake of convenience the appeals are consolidated and disposed of by this common order.There is an appeal by the department and one by the assessee. The appeals relate to assessment year 1982-83.3. Assessee is a limited company engaged in construction work. It had secured from the Government of Maharashtra a plot of land No. 211 at Nariman Point on lease and had started construction a multi-storeyed building from 1978. Initially, the booking rate per square feet was Rs. 130. This was raised to Rs. 140 and Rs. 150 and much later the sale fetched as high an amount as Rs. 612 per sq. ft. Assessee was following the project completion method of accounting and filed the return for the year under appeal disclosing an income of Rs. 35,39,408. It has to be remembered in this connection that there was a raid at the premises of the assessee and in the course of the raid a table diary maintained by one Shri R.T. Shar...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1993)46ITD31(Mum.)
1. The assesses, an individual, resident/non-citizen, is in appeal for the assessment year 1984-85, for which the valuation date shown is March 31, 1984. Assessment has been framed under Section 16(3) of the Wealth-tax Act, 1957. The return was filed by the assessee on September 28, 1984, declaring a wealth of Rs. 16,26,200, while the assessment stood framed at Rs. 1,20,42,441. The assessee appealed and the learned first appellate authority, the Commissioner of Income-tax (Appeals), Central-I, Bombay, dismissed the appeal, vide orders of January 3, 1990. The assessee is as yet aggrieved, hence this second appeal and we have heard the parties at length, since the hearing was spread over three days. The addition being agitated upon by the assessee amounts to Rs. 1,01,61,850 and it has the following components : (i) Rs. 93,02,545 being the market value of shares of the Bombay Dyeing and Mfg. Ltd. ; (ii) Rs. 2,00,000 representing advances to the two minor sons of the assessee ; (iii) Rs. ...
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