Court : Andhra Pradesh
Decided on : Mar-15-1983
Reported in : (1983)37CTR(AP)294; [1984]148ITR287(AP)
Seetharama Reddy, J. 1. The question for decision in this reference at the instance of the Revenue, is : 'Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the interest income of Rs. 1,98,791 is exempt from income-tax for the assessment year 1975-76 ?' 2. Before the above question was sought to be referred to this court at the instance of the Revenue, M.P. No. 63/79 was filed by the assessee before the Appellate Tribunal for giving a decision with respect to the sum of Rs. 1,98,791 which accrued as interest out of the principal sum of Rs. 56,97,657 which the Welfare Society-assessee-kept in a bank. This arose because of the fact that earlier in I.T.A.No. 595/79, which pertained to the principal sum which stood in the name of the assessee-society in a bank as a sequel to the raffle conducted on behalf of the society by the Government, one of the issues framed was : 'Whether, on the facts and in the circumstances of the case, and o...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Jan-25-1983
Reported in : (1984)38CTR(AP)33; [1984]146ITR445(AP)
Jeevan Reddy, J. 1. The question referred for our opinion under s. 27(1) of the W.T. Act, 1957, is : 'Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the status of the assessee is that of Hindu undivided family for the purpose of wealth-tax ?' 2. The assessee, Smt. T. Yasodamma, is the daughter-in-law of one T. Chinna Venkata Subbaiah. Her husband predeceased Chinna Venkata Subbaiah. On Novermber 2, 1970, a partition took place between Chinna Ventaka Subbaiah and the assessee. The assessee has an unmarried daughter. In the assessment proceedings under the W.T. Act, the assessee claimed that she together with her daughter constituted a Hindu undivided family and must be assessed as such. The relevant assessment years are 1971-72, 1972-73 and 1973-74. The WTO negatived her contention and assessed her as an individual. During the relevant years, exemption limit for an HUF was higher than that for the individual; that is why ...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Jun-17-1983
Reported in : (1984)38CTR(AP)1; [1983]144ITR146(AP)
Jagannadha Rao, J.1. Questions relating to the interpretation of International Tax Agreements containing international tax language fall for consideration in this reference. 2. The question of law referred to us at the instance of the Commissioner of Income-tax, Andhra Pradesh, Hyderabad, is as follows : 'Whether, on the facts and in the circumstances if the case, the assessee is immune from liability either wholly or partly to tax on the basis of the Double Taxation Avoidance Agreement between Germany and India?' 3. The Income-tax Appellate Tribunal, Hyderabad, has consolidated 21 reference applications as common question are involved and it has drawn up a single reference application. 4. The assessee is the Visakhapatnam Port Trust (hereinafter called the 'Port Trust'). The Port Trust is under the Ministry of Shipping and Transport, Govt. of India. The Visakhapatnam Port exports a large amount of iron ore. In order to speed up the export operations, the Port Trust felt it necessary t...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Apr-13-1983
Reported in : [1984]148ITR184(AP)
Jagannadha Rao, J. 1. The question referred by the Income-tax Appellate Tribunal, Hyderabad, in this reference is as follows : 'Whether, on the facts and in the circumstances of the case, the interest on the sum of Rs. 14,86,360 paid on September 20, 1969, is payable under section 214 of the Income-tax Act, 1961 ?' 2. The following facts are stated by the Tribunal in the statement of cases : The assessee is the Andhra Pradesh State Road Transport Corporation, Hyderabad, plying buses on various routes in Andhra Pradesh. The assessee is a person hitherto assessed. In these proceedings we are concerned with the assessment year 1970-71 for which the financial year is 1969-70. 3. Advance tax was payable for the assessment year 1970-71 by the assessee. The latest regular assessment completed as at the beginning of the financial year 1969-70 was one for the assessment year 1964-65 by way of an assessment order dated March 28, 1969, which showed a loss of Rs. 1,63,425 as determined by the ITO....
Tag this Judgment!Court : Andhra Pradesh
Decided on : Apr-22-1983
Reported in : (1984)38CTR(AP)37; [1984]145ITR702(AP)
Seetharama Reddy, J.1. The question of law raised at the instance of the Revenue, in this consolidated reference, pertaining to the common assessee in respect of the assessment years 1966-67 to 1971-72 is : 'Whether, on the facts and in the circumstances of the case, the assessment in the status of 'body of individuals' in respect of the share income from the firm, T.L. Jagannadham Son, is valid ?' 2. The format of the case, as set out in the statement of case, is that Shankaraiah is the karta of the HUF consisting of himself, his major son, Rajanna alias Raja Veeraiah and his two minor sons, Samba Murthy and Ravinder and his wife. He was a partner in a firm known as M/s. Thota Lingaiah Gari Jagannadham Son, having 30% share. Admittedly, the share income belonged to the HUF, as he was representing the family being the karta of it. The share income from the firm was being assessed in the hands of the HUF up to and including the assessment year 1964-65. On October 26, 1963, there was a p...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Mar-15-1983
Reported in : [1985]156ITR283(AP)
Madhava Reddy, C.J.1. At the instance of the Commissioner, Hyderabad, the following questions of law are referred under s. 256(1) of the I.T. Act 1961 ('the Act') : '1. Whether, on the facts and in the circumstances of the case, the epreciation and development rebate are allowable on the cost of roads and if so whether by treating them as plant or building 2. Whether, on the facts and in the circumstances of the case, development rebate is allowable on the enhanced cost of plant and machinery due to the devaluation 3. Whether in computing the disallowable perquisites under section 40(a)(v), the perquisites relating to employees whose salary is exempt from tax under section 10(6)(vii) of the I.T. Act, 1961, should be excluded 4. Whether, in working out the capital employed for purposes of section 80J, liabilities need not be deducted from the assets employed in the undertaking as provided under r. 19A and also whether the average capital employed by the assessee company should be tak...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Sep-06-1983
Reported in : (1984)40CTR(AP)96; [1984]150ITR394(AP)
Amareswari, J. 1. This case came up on a reference under s. 256(1) of the I.T. Act, 1961. 2. The West Godavari District Rice Millers Association, Tadepalligudem, is the assessee. It is an association of rice millers. For the period September 1, 1970, to March 31, 1971 the assessee admitted an income of Rs. 5,274 under the head 'Other sources'. The gross receipts included Rs. 27,750 being subscriptions received from the members of the association. The balance comprised interest of Rs. 4,974. After deducting various outgoing including an expenditure of Rs. 11,243 in the charity account, the net income was declared at Rs. 5,274. The ITO disallowed the claim for deduction of the expenses in the charity account made some minor adjustments and determined the income in the first stage at Rs. 17,060. To this he added a sum of Rs. 5,17,461, which represented the collections made by the association from its members for construction of a building at Tadepalligudem and Bhimavaram. The association ...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Oct-07-1983
Reported in : [1985]151ITR562(AP)
Punnayya, J. 1. The trustees of late Nizam Supplemental Family Trust, Hyderabad, filed income-tax returns for the year 1962-63 on behalf of the beneficiaries on April 2, 1964, along with the application under s. 237 of the I.T. Act for the refund of the tax of Rs. 20,050.52 deducted at source on interest on government securities and dividends. But the refund application was not disposed of. The trustees, therefore, reminded the ITO on June 17, 1964, for the disposal of the refund application. On June 22, 1964, the ITO gave a reply stating that the refund cannot be granted to the trustees unless the reference on the same question for the preceding assessment years filed by the trustees are disposed of by the High Court. On September 23, 1966, the assessee once again reminded the ITO for the grant of refund but there was no reply from the ITO. The ITO issued a notice under s. 148 of the I.T. Act requiring the trustees of file a return for the assessment year 1962-63. The assessee filed a...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Jan-20-1983
Reported in : [1984]145ITR423(AP)
Jeevan Reddy, J. 1. The question referred for our opinion under s. 256(1) of the I.T. Act (hereinafter called 'the Act') is : 'Whether, on the facts and in the circumstances of the case, the reassessment under section 147 of the Income-tax Act, 1961, could be validly made ?' 2. The facts relevant to the question referred are : The assessee is a firm carrying on ready and speculation business on commission. It is a member of Adoni Groundnut Seeds and Oil Merchants' Association. Its business consists of speculation in groundnut oil and groundnut seeds with members as well as non-members of the Association either for purchase or for sale. So far as non-members are concerned, the assessee charges commission on transactions entered into with them. In the return filed for the assessment year 1958-59, the assessee returned a net loss of Rs. 11,159 in ready and speculation business. The ITO, however, while making the assessment, separately assessed the income from speculation business and read...
Tag this Judgment!Court : Andhra Pradesh
Decided on : Jun-10-1983
Reported in : (1984)39CTR(AP)210; [1984]148ITR546(AP)
Madhava Reddy, C.J.1. The assessee is a company incorporated under the Companies Act, 1956, with its registered office at Secunderabad in Andhra Pradesh, whose main object is manufacture of fertilizers in India. EDI Parry Ltd., a company incorporated under the English Companies Act and having its registered office in London, is one of the largest manufacturers and distributors of fertilizers of various types in India for the last sixty years and had conducted extensive agronomical research and acquired in India unrivalled knowledge and experience of agronomy, agricultural practices and soil formations and chemical compositions, cropping patterns, particularly applicable to South India. The assessee-company, being desirous of obtaining from EID Parry the said know-how for promoting the sale of fertilizers manufactured by it, entered into an agreement with EID Parry Ltd. On April 16, 1964. The important features of this agreement, among others, are as follows : '(5) EID has agreed to imp...
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