Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1984)8ITD258(Mum.)
..... cwt [1981] 129 itr 314, where it was held that while computing the net wealth of the assessee, liability in respect of income-tax payable on the income disclosed is deductible as a 'debt owed' on the valuation date under section 2(m) of the wealth-tax act, 1957.8.4 the learned departmental representative relied upon the order of the aac. ..... section 3 of the voluntary disclosure of income and wealth act, 1976, ('the 1976 act'), talks of charge of income-tax on voluntarily disclosed income, chargeable to tax under the indian income-tax act, 1922, and also the 1961 act. ..... the vds, subsequently converted into an act, was a separate act of a different nature and, hence, the borrowings for the payment of taxes under the said scheme would not come under the purview of section 80v.on behalf of the assessee, reliance was placed on the decision of the supreme court in the case of ahmed ibrahim sahigra dhoraji v. ..... the learned departmental representative submitted at the time of hearing as under: 3.1 in respect of the disallowance made under rule 6d(1), of the income-tax rules, 1962 ('the rules') it was submitted that the aac was in error in observing in para 6 of the order that the said rule does not apply to foreign travels. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)14ITD44(Mum.)
..... basis of all these appeals is the levy of penalty under section 18(1)(c) of the wealth-tax act 1957 ('the act'), by the wto for the assessment years 1966-67 to 1971 ..... for the wealth-tax purposes, the value of an asset as defined in section 7 of the act as on the valuation date is to ..... where actually a tenancy right exists and has even then both from the point of legal theory as well as departmental practice been omitted from wealth-tax and estate duty assessments, the position of such a right after the tenancy has disappeared on account of the demolition of the tenanted building would be ..... the stand taken by the assessees and almost the acceptance of the wealth-tax addition in disclaiming the liability to gift-tax, gift-tax proceedings were correctly dropped by the revenue. ..... therefore, no hesitation in holding that the inclusion of the assets in the wealth-tax assessments in the present case itself is unjustified and erroneous in law. ..... aac but subsequently transferred to and taken up for consideration by the commissioner (appeals), the order of the commissioner (appeals) is ab initio void.objection is also raised to the commissioner (appeals)'s issuing a show-cause notice of hearing to the ito even before receiving a report from him on the point of limitation. ..... for these enactments, even if the courts have held that transferability or otherwise of an asset is not the criterion for taxability, certainly determination of a market value ..... landlord, such an allotment is highly profitable. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1985)14ITD519(Mum.)
..... wealth) trust [1977] 108 itr 555 that the department could assess the trustees only under the provisions of section 21 of the wealth-tax act, 1957 ('the act') ..... the aggregate of the actuarial valuations of the life interest of a and the remainderman's interest would not be assessable in the hands of the trustee because, as pointed out above, the trustee can be taxed only in respect of the beneficial interests and there being no other beneficiary apart from a and such of the children of a as the trustee might think fit, the balance of the value of the corpus ..... that the beneficiary will have no interest in the property for a period of 31 years cannot be correct.the fictional beneficiary in section 21(4) is not only the full beneficiary of the income but also the full beneficiary of the corpus.this point has been overlooked.11 ..... assuming that in such case the provisions of section 21(4) would apply to the corpus beneficiaries, the supreme court had observed as follows : we have given in the preceding paragraph illustration of a case falling within section 21, sub-section (1), but the illustration can be slightly modified by taking a case where property is held on trust for giving income for life to a and on his death, to such of the children of ..... above two appeals together.the main issue is whether the department was justified in assessing the value of the assets held by the trust in the hands of the trustees instead of assessing a highly discounted value as returned by the assessee.2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)16ITD76(Mum.)
..... the bombay high court held that harmonious construction demands that the method adopted or rule 1bb of the wealth-tax rules laying down a recognized method should be employed while determining the value under section 36(1) of the estate duty act even in cases where ..... took place prior to the amendment of the section in 1982.even so the bombay high court supported the application of rule 1bb.14. ..... the question of valuation by resort to rule 1bb of the wealth-tax rules, 1957 ('the rules'), it is pointed out that a hotel was ..... ramachandran [1966] 60 itr 103 their lordships of the mysore high court held that in the case of buildings with compounds in a city, which buildings are in the possession of tenants, and the tenants cannot be either evicted or the rent payable by them enhanced except in accordance with the provisions of the rent control act, the only appropriate basis is to capitalise the annual rent by a ..... province of madras [1948] 2 mlj 159, a division bench of the madras high court laid down that the proper method of valuation to be adopted in the case of a compulsory acquisition relating to a house and ground situated in a municipality and fetching regular income is to assess the value on the ..... referring to the provisions of section 16a(1) of the wealth-tax act, 1957 ('the act'), it is pointed out that a statutory valuation made under this section can be countered only by another valuer's report and after rejecting the contentions and the claims of ..... after hearing the parties, .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1986)15ITD514(Mum.)
..... sheth's case (supra), is directly in favour of the assessee and against the revenue.their lordships of the bombay high court held as follows : in our opinion, capital gains made on sale of land situate in india, which land is used for agricultural purposes, would be revenue derived from such land and, therefore, agricultural income within the meaning of section 2(1) of the income-tax act, 1961, and parliament would have no legislative competence to tax such agricultural income. ..... on the facts and in the circumstances of the case and in law, the learned commissioner (appeals) erred in holding that land at kalwa can be treated as urban land for the purposes of income-tax act, 1961 and wealth-tax act, 1957, only with effect from 6-2-1973, i.e. ..... only from the date of the notification itself, namely, 6-2-1973 and that, therefore, the said notification was inapplicable to the facts of the present case to bring to tax the surplus arising on the sale of the lands in question by the assessee as capital gains under section 45 of the income-tax act, 1961 ('the act').he argued that the notification issued by the central government on 6-2-1973 would take effect from 1-4-1970 itself when sub-clause (iii) of clause ..... omarkhan [1979] 116 itr 950 to which a reference was made in the course of the hearing, is of no relevance as it related to the interpretation of section 2(14)(iii)(a) and not of section 2(14)(iii)(b) with which we are presently concerned in this appeal. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)21ITD8(Mum.)
..... section 2(m) of the wealth-tax act, 1957 ('the act') defines net wealth as the amount by which the aggregate value of assets computed in accordance with the provisions of the act of all the assets belonging to the assessee on the valuation date is in excess of the aggregate value of all the debts owed by the assessee on ..... wealth-tax act ..... was liable to be deducted.the fact that the said amount came in the category of deemed dividend under section 2(22) of the income-tax act, 1961, was wholly irrelevant for determining the question whether the said amount represented deductible debt under section 2(m). ..... the wto rejected the claim for deduction in the wealth-tax assessment proceedings on the ground that the said amount had been treated as deemed income in the ..... the question, therefore, which requires investigation for wealth-tax purposes is whether a particular amount represents a debt owed by the assessee on the valuation date and if so, whether the said debt was other than the debts mentioned in sub-clauses (i), ..... provisions of the income-tax act would be irrelevant for ..... that the said amount represented deductible debt for computing the net wealth under section 2(m). ..... to determine the question whether the said debt was deductible under section 2(m), we have to look to the provisions of the said ..... debt owed by the assessee on the valuation date although the payment was required to be made in future.the said debt did not come under any of the three sub-clauses of clause (m) of section 2. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)21ITD272(Mum.)
..... d.v.bapat, ito [1975] 101 itr 292 where the bombay high court had referred to the supreme court decisions under the wealth-tax act, 1957 ('the act') of standard mills co. ..... 's case (supra) had not appreciated the true function of section 7(2)(a) because the said section does not deal with the computation of net wealth but with the computation of aggregate value of assets. ..... 's case (supra), which has since been set aside by the supreme court as noted above, while dealing with deduction under section 36(1)(v) of the 1961 act, had held following metal box co. ..... 's case (supra) it was held that gratuity was not debt due under section 2(i) of the act because it was a contingent liability and was not a debt owed in praesenti. ..... [1965] 56 itr 544 to the effect that since contingent liabilities can be taken into account while computing the net wealth of the assessee under section 7(2)(a), liability for payment of gratuity under such agreements will have to be estimated and an estimated value of the contingent liability would be a permissible deduction in computing the net wealth of the assessee. ..... yield method.however, even after noting the said, decision, the commissioner (appeals) directed that the only variation the wto should make in the value of unquoted equity shares as per rule 1d read with section 7 of the act was to allow deduction of gratuity liability. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1987)22ITD24(Mum.)
..... these deposits were claimed to be exempt under section 6 of the wealth-tax act in the assessments under consideration. ..... value of the assets in india represented by any loans or debts owing to the assessee in any case where the interests, if any, payable on such loans or debts is not to be included in the total income of the assessee under section 10 of the income-tax act ; now coming to explanation i, it directs that an individual shall be deemed to be a non-resident in india or resident but not ordinarily resident in india if in respect of that year he was not resident in india or resident but not ordinarily resident ..... (external) account, the interest payable on which is not to be included in his total income under clause (4a) of section 10 of the income-tax act, the provisions of this section shall, in relation to such asset, apply subject to the modification that the reference in this section to an individual not resident in india shall be construed as a reference to a person resident outside india as defined in clause (q) of section 2 of the foreign exchange regulation act, 1973.it appears from the above that in respect of moneys in nr(e) account, the interest of which is not .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1992)40ITD142(Mum.)
..... hearing the parties and on the review of the facts emanating from the writ petition filed by the appellants (assessees) and the orders made by the court therein, we are of the firm view that the gold in dispute never came in possession of the appellants (assessees), did not belong to them on the valuation date and, therefore, the value thereof could never be brought to wealth-tax under section 3 read with section 7(1) of the wealth-tax act.10 ..... not, therefore, agree with the view expressed by the division bench of the high court that the proviso to section 71(1) of the gold control act does not relate to primary gold. ..... copy of the judgment dated 3-11-1981 in the above writ petition by single judge of the delhi high court and copy of the judgment dated 10-12-1981 by the division bench of the delhi high court in letters patent appeal no. ..... 1982] 135 itr 742 and the observation at page 748 thereof and the decision of the madhya pradesh high court in cwt v.meghji girdharilal [1989] 176 itr 63. ..... to be confiscated but such other action as is authorised by this act, may be taken against the person who has, by such act or omission, rendered it liable to confiscation.it was the case of the petitioner that the instant case was fully covered under proviso to section 71(1) of the gold (control) act as amended and that the gold in question, therefore, could not be confiscated.8.2 on this petition, the single bench of the high court at delhi passed its order, as stated earlier, on 3-11-1981. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1992)40ITD332(Mum.)
..... notwithstanding anything contained in section 13 of the finance act, 1960 (13 of 1960), relating to exemption of companies from levy of wealth-tax under the wealth-tax act, 1957(27 of 1957) (hereinafter referred to as the wealth-tax act), wealth-tax shall be charged under the wealth-tax act for every assessment year commencing on and from the 1st day of april, 1984, in respect of the net wealth on the corresponding valuation date of every company, not being a company in which the public are substantially interested at the rate of.... ..... again, by virtue of sub-sections (5) and (7) of section 40 of the finance act, 1983, we have to refer to all the provisions of the wealth-tax act, 1957, other than stipulated in clause (a) of sub-section (5) of section 40 of the finance act, 1983. ..... in this view of the matter, we are not prepared to accept the submissions made on behalf of the assessee that section 40 of the finance act, 1983, is a self-contained code and, therefore, we have not to look into the provisions of the wealth-tax act, 1957 to determine whether the value of the flats in question would be exigible to the wealth-tax act. ..... we have carefully considered the rival submission of the parties and the material to which our attention was drawn at the time of hearing and we do not find any merit in the stand taken on behalf of the assessee. .....
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