Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1985)14ITD208(Ahd.)
..... in this context, my attention was also invited to an order of the bombay high court under section 256(2) of the act holding that no question of law arose out of the tribunal's conclusion that the amount of rs. ..... his only attempt was to establish that the reasoning of the supreme court and of the bombay high court, as given in respect of goodwill, will strongly apply to the case of an asset of the type of remainderman's interest.6. ..... fairly admitting that in all the above three cases, the question involved was that of surrender of tenancy rights, it is urged that the ratio laid down is that the cost of acquisition of the asset and the cost of improvement thereon must be fairly and reasonably ascertainable in order to attract the provisions of section 45. ..... as regards the cost of improvement also, shri bhattacharya points out that the fluctuation in the price of the asset on account of the passage of time is not an improvement of the asset and the market value goes up because of fluctuation. ..... shakuntala, sister of the party of the first part, and her sons who may be living at the time of death of the party of the first part. ..... shakuntala is not living, it should be given to the son of the said smt. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2002)81ITD482(Ahd.)
..... the bombay high court held that sale of such a goodwill would be outside the purview of section 45 since its cost of improvement cannot be ..... treating the stock-in-trade as a short-term capital asset, the ao computed the short-term capital gain on the slump sale as under: sales consideration on sale of industrial undertaking as a going concern aggrieved the assessee carried the matter in appeal before the cit(a).the learned cit(a) endorsed the view taken by the ao and held that the computation of capital gain is in accordance with the computation provision contained under section 48 of the it act and the decision of hon'ble supreme court in the case of cit ..... relation to capital assets being an undertaking or division transferred by way of such sale, the 'net worth; of the undertaking or the division, as the case may be, shall be deemed to be the cost of acquisition and the cost of improvement for the purposes of ss. ..... every assessee, in the case of slump sale, shall furnish in the prescribed form along with the return of income, a report of an accountant as defined in the explanation below sub-section (2) of section 288 indicating the computation of the net worth of the undertaking or division, as the case may be, and certifying that the net worth of the undertaking or division, as the case may be, has been correctly arrived at in accordance with the provisions of this section ..... a going concern is essentially a functioning living organism possessing attributes of vitality, growth and .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2007)109ITD181(Ahd.)
..... that annealing process does not bring about any structural changes in the metal but he did not agree with that and said that 'in the assessment order itself, the assessing officer has given the finding that the annealing process performed by the assessee though decreases the iron loss of the core and relieves the laminations of plastic and elastic stresses and improves the conductivity and magnetic value of the transformer core, it cannot be said that simply because of this process, a new ..... advanced by standing counsel for the revenue is accepted, we are afraid, the assessee would not be in a position to avail of the deduction under section 35 of the act to the extent to which the legislature intends to give to the assessee.thus reliance on the above decision by the assessee is misplaced as the provisions of section 35 were found not to be ambiguous as there was no requirement therein for user of the asset for the purpose of scientific research and development whereas in the present case as a condition precedent the assessee requires to be a manufacturer or producer or an artjcle or thing.ship scrap ..... ) and also of the bombay high court in the case of ship scrap traders v. ..... the bombay high court while considering the object of the enactment of sections 80hha and 80-i, held that the said expression will have to be construed liberally in a broader commercial sense keeping its object in mind.... .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)93ITD624(Ahd.)
..... 37,85,199.93 lying with the exchange out of the sales proceeds thereof which had came in the hands of bse for and on behalf of the defaulter member in the course of administration of assets and allocation under rule 16(1)(iii).13.1 in the aforesaid case, the bombay high court after analysing the bombay stock exchange rules, regulations and bye-laws observed that the bombay stock exchange has been recognised by the central government under the securities contracts (regulation) act, 1956, and constituted with the main object of protecting, in public interest, the status of brokers ..... cwt (1973) 88 itr 417 (sc), the supreme court dealt with the case of settler under the trust deed wherein the trustees were to apply the net income of the trust funds for the support, maintenance and advancement in life and otherwise for the benefit of the settler and his wife in such manner as to enable the settler to live as far as possible with the same comforts and to enjoy life in the same manner as he is accustomed to it. ..... shroff (1933) 3 comp cas (pc), wherein the member lost his membership for being declared as a defaulter. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (1989)30ITD23(Ahd.)
..... the assessee had submitted that the farm had been entered as porperty of the foundation in the public register maintained under the bombay public trust act, 1950 and since the foundation was a registered public chartable trust the property acquired was for the furtherance of the objects of the foundation and formed part of the corpus of the trust and consequently contained in the trust deed so that the expenditure incurred on the imporovement or maintenance of the farm was an application of the income of the trust within the meaning of section 11. ..... the iac has also alleged that by his letter dated 4 -1 - 1985 the assessee was requested to furnished various details regarding the stock of various articles like gramophone records, audio cassettes, air conditioners, furnitures and fixtures, articles of national importance which the assessee was displaying in the museum and was owned by the assessee for public or official use and even up to the date of the assessment i.e. ..... patel on 18-5-1981 were for improving the yield but that was not an experiment. ..... regarding the submission of the learned standing counsel that it has taken a long time to set up this library we would first of all like to point out that getting the live recordings of as many as to authors would take up quite some time. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2003)262ITR1(Ahd.)
..... charitable or benevolent objects or for any exhibition or for any public, general or useful object; (k) the acquisition, construction, maintenance and alteration of any building or works necessary or convenient for the purposes of the company; (l) selling, improving, managing, developing, exchanging, leasing, mortgaging, disposing of or turning into account or otherwise dealing with all or any part of the property and rights of the company ; (m) acquiring and undertaking the whole or any part of the business of any person or company, when such business is of nature enumerated or ..... giving of receipts and discharge and otherwise acting as an attorney on behalf of customers, but excluding the business of a managing agent or secretary and treasurer of a company; (c) contracting for public and private loans and negotiating and issuing the same : (d) the effecting, insuring, guaranteeing, underwriting, participating in managing and carrying out of any issue, public or private, of state, municipal or other loans or of shares, stock, debentures, or debenture stock of any company, corporation or association and the lending of money for the purpose of any such ..... . this judgment of the bombay high court, has also achieved finality as slp preferred by the department against the said judgment has been dismissed by the hon'ble supreme court as reported in 256 itr (st) 48.41 ..... basant rai takhat singh (1933) 1 itr 197 (bom). .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)93ITD321(Ahd.)
..... the bombay high court pointed out in this case that there is a clear distinction between a person commencing a business and a person setting up a business and for the purpose of section 2(11) which was the section of the indian it act, 1922, corresponding to section 3(1)(d) of the it act, 1961, what is required to be considered is the setting up of a business and not the commencement of a business. ..... " "to alter, manage, develop, exchange, lease, mortgage, underlet, sell, give i gifts or otherwise dispose of, improve or deal with the land, property, assets and rights and resources and undertaking of the company or any part thereof for such consideration of the company may thing fit and in particular for shares, stocks, debentures, or securities of any other company having objects altogether or in part similar to those of this company". ..... related to a loan to the assessee, much less to the loan which was shown to have been advanced by that persons to the assessee, in the first ground the live link or close nexus which should be there between the material before the ito and the belief which was to form was missing or in any event too tenuous to provide legally sound basis for reopening the assessment. ..... the project is to create a concrete gravity dam of the height of 128 meters from the river-bed and reservoir with a live storage of 5800 million cubic meters (4.72 maf) enveloping about 214 km. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2003)87ITD475(Ahd.)
..... (supra), the nagpur bench of the bombay high court held that the tribunal was justified in directing the assessing officer to treat the interest income from fixed deposit as eligible profits of the business while computing deduction under sections 80hhc and 80-i of the income-tax act. ..... 'the managing director shall be entitled to the remuneration calculated at the rate of 10 per cent of net profits of the company for the financial year computed in the manner laid down in section 349 of the companies act, 1956 [subject to deducting the depreciation to the extent allowable under the income-tax act, 1961 instead of specified in section 350 as stated in sub-clause (k) of clause (4) of the said section 349] and except that the remuneration to director shall not be deducted from the gross profit over and above the existing salary of rs. ..... and shall give whole-time attention to management and necessary affairs of the company and shall use his best endeavour and efforts to improve and extent overall business of the company. ..... it cannot be said that because in the previous years the shares were held to be stock-in-trade, they must be similarly treated for the assessment year 1949-50. ..... and in this mundane world where law lives now, economic utilities - material goods and services, not transcendental flights nor intangible achievements - are the functional focus of industry. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2003)80TTJ(Ahd.)278
..... learned cit(a) has erred on facts and in law in holding that the decision in the case of dhun dadabhoy kapadia was applicable in the changed position of taxation of capital gains under 1961 act, where as per the entire share, no deduction for any notional amount is allowable as "cost of acquisition" or "cost of improvement" except the actual cost of acquisition or the value of capital asset on 1st april, 1981, as per the option of the assessee and subsequent case of improvement, if any. ..... the question which was referred by the tribunal to the hon'ble bombay high court in the case of miss dhun dadabhoy kapadia was whether the tribunal was right in rejecting the claim of the applicant to deduct from the computation of capital gain the cost of right determined in accordance with the accepted principles of accountancy in the light of provisions of section 12b of the 1922 act. ..... (1969) 74 itr 62 (sc) in which it was held as under: "in the case of a dealer in shares who values his stock at cost, where bonus shares issued in respect of ordinary shares held by him rank pari passu with the original shares, the correct method of valuing the cost to the dealer of the bonus shares is to take the cost of the original shares, spread it over the original shares and the bonus shares collectively and find out the average price of all the shares." 9.4. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2005)97TTJ(Ahd.)985
..... scindia workshop ltd, (supra), it was held by their lordships of the bombay high court that whenever there is a receipt of an amount by an assessee, it is not the nature of the receipt under the general law that determines its nature for the purpose of the it act but the receipt would have to be considered under the provisions of the it act from the commercial point of view. ..... ) wherein it was held that though in the agreement of sale there was no reference to value of the plant, machinery and dead stock, but on the basis of information that was furnished by the assessee before the ito, it became evident that the amount of consideration had been arrived at by taking into consideration the value of the plant, machineries and dead stock as assessed by the valuer.15.4 in the case of hindustan co-operative insurance society (supra) a case before their lordships of the calcutta high court, the assessee was carrying on life insurance ..... 5,000 for preparing a project report for manufacturing insecticide formulations, an item to be used for improving the quality of the cane produced in the area by the individual agriculturists and societies and since the manufacture of insecticide formulation was not carried out by the assessee and the amount paid was for project report only, the ao disallowed the same as capital expenditure. .....
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