Court : Supreme Court of India
Reported in : [1959]37ITR1(SC); [1960]1SCR185
..... 204 under the caption 'accrued liability' observes as under, after citing the case mentioned above :- 'in cases, however, where an actual liability exists, as is the case with accrued expenses, a deduction is allowable; and this is not affected by the fact that the amount of the liability and the deduction will ..... 24,809 represented the estimated amount which would have to be expended by the appellant in the course of carrying on its business and was incidental to the same and having regard to the accepted commercial practice and trading principles was a deduction which, if there was no specific provision for it under section 10(2) of the act was certainly allowable deduction, in arriving at the profits and gains of the business of the appellant under section 10(1) of the act, there being no prohibition against ..... , is there anything in the income-tax act which would prevent this debit being allowed as a deduction in the computation of the profits and gains of the appellant's business the appellant, had, it appears, claimed this deduction as and by way of ..... these are no doubt observations from the english cases dealing with english statutes of income-tax, but the general principles which can he deduced therefrom are, nevertheless, applicable here and it was stated by lord ..... it may be useful to observe at this stage that prior to the amendment of the indian income-tax act in 1939, bad and doubtful debts were not treated as deductible allowance for the purpose of computation of profits .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1999SC1641; [1999]237ITR454(SC); JT1999(2)SC377; 1999(2)SCALE243; (1999)5SCC189; [1999]2SCR131
..... and has to be determined from the point of view of a businessman in that business on the facts and in the circumstances of each case including true interpretation of the agreement under which the assets are let out;(3) where all the assets of the business are let out, the period for which the assets are let out is a relevant factor to find out whether the intention of the assessee is to go out of business altogether or to come back and ..... 17 of 1991 under section 256(2) of the income tax act, 1961 [for short, 'the act'] passed on february 6, 1992 [hereinafter referred to as 'upl ..... . from a plain reading of the clauses noted above, what is clear is that they deal with a situation arising out of the breach of the terms of the agreement entitling the licensor to terminate the agreement on the expiry of the period of one month from the service of the notice to ..... . clause 16 deals with a situation of the licensee being wound up in which situation the licensor reserved his right to determine the agreement and retake the possession of ..... he invited our attention to various clauses of the agreement and pointed out that the high court has not considered clauses 15 and 16 which unmistakably point out that the agreement was only a temporary measure and the intention of the assessee was to go back to the ..... it then entered into an agreement styled as 'leave and licence' agreement with m/s, leatherite industries limited [hereinafter referred to as 'the licensee'] for a period of 7 years on march .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1997SC1860; [1997]225ITR1(SC); JT1997(4)SC161; 1997(3)SCALE195; (1997)10SCC88; [1997]3SCR216
..... senior counsel appearing for the revenue, however, so far as the first question is concerned, contended that under section 4 of the super profits tax act, a super profit tax is to be charged on every company on the amount on which the chargeable profits of the previous year exceeds the standard deduction at the rate specified in the iiird schedule ..... of rule i of the first schedule of super profits tax act stipulates that the income chargeable under the income tax act under the head 'interest on securities' derived from any security of the central government or a state government, it is therefore, necessarily referable to section 14(b) so far as the head of income is concerned, and section 18 so far as the type of securities, interest from which has to be computed in arriving at the income of the ..... of interpretation of rule i of the first schedule to the super profits tax act, 1963, but the principles therein would apply with full force and, therefore, the income under the head 'interest on security' derived from security of the central or the state government having fallen under the head under section 14(b) of the income tax act as it stood then, as well as under section 18 (b) of the said income tax act as it stood at the relevant point of time, when the question of ..... -tax, west bengal 32 income tax reports 1957 page 688, the question for consideration before this court was whether income from interest on security would fall under section 8 or under section 10 of the income tax act, .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1976SC1016; (1976)2SCC44; [1976]2SCR939; [1976]37STC207(SC)
..... he has contended that on the facts found it would appear that the movement of goods from orissa to west bengal took place in pursuance of an agreement of sale and not in pursuance of the sale itself which actually took place in west bengal and, therefore, the sale is not covered by section 3(a) of the central sales tax act and the levy made by the state of orissa was illegal. mr. ..... they are :(1) that there was an agreement or contract of sale between the appellant-firms and the calcutta firms by which the appellants agreed to sell raw jute of certain specifications of weight and quality to the calcutta firms ; (2) that at the time when the contract of sale was entered into, the raw jute was not in existence as it was being grown; (3) that after the goods were ready the same were booked in bags by the appellants not ..... it seems to us that the parliament wanted to give the widest amplitude to the word 'sale' and, that is why, while in section 3 the words 'sale of goods' have been used, in section 4(2), clauses (a) and (b), which deal with the situs of the sale, the words 'contract of sale' have been used in the same sense. ..... finally, if all these conditions are satisfied the question whether the agreement to sell is in respect of ascertained or unascertained goods, existing or future goods, makes no difference whatsoever so far as the interpretation of section 3(a) of the central sales tax act is concerned.26. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : (1976)5CTR(SC)175
..... he has contended that on the facts found it would appear that the movement of goods from orissa to west bengal took place in pursuance of an agreement of sale and not in pursuance of the sale itself which actually took place in west bengal, and, therefore, the sale is not covered by section 3(a) of the central sales tax act and the levy made by the state of orissa was illegal. mr. ..... it seems to us that the parliament wanted to give the widest amplitude to the word sale and that is why, while in section 3 the words sale of goods have been used, in section 4(2), clauses (a) and (b), which deal with the situs of the sale, the words contract of sale have been used in the same sense. ..... they are :-(1) that there was an agreement or contract of sale between the appellant firms and the calcutta firms by which the appellants agreed to sell raw jute of certain specifications of weight and quality to the calcutta firms;(2) that at the time when the contract of sale was entered into, the raw jute was not in existence as it was being grown;(3) that after the goods were ready the same were booked in bags by the appellants not .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1999SC573; (1999)151CTR(SC)102; [1999]235ITR278(SC); JT1998(8)SC641; 1998(6)SCALE635; (1999)1SCC430; [1998]Supp3SCR647
..... (2) whether, on the facts and in the circumstances of the case, the repayment of annuity deposits can properly be taxed in the hands of the assessee, who is a nominee of the depositor, under the provisions of section 2(24)(viii) read with section 280d of the income-tax act, 1961, since the repayment of annuity deposit is actually received by the assessee? ..... reliance was placed by the learned additional solicitor general on section 159 of the income-tax act, which says, 'where a person dies, his legal representative shall be liable to pay any sum which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent to the deceased'. ..... hence, the court said, 'we do not see how a payment which is made to a nominee upon the death of the depositor, in respect of the annuity deposits made by the depositor, would fall within the definition of income under section 2(24)(viii) of the income-tax act, 1961'. ..... meanwhile.under these circumstances, considered from either point of view, namely, from the point of view of the provisions of the act and the paragraphs of the annuity deposit scheme, taken together, or considered from the point of view of general law, the result would be the same, namely, that these annuity payments which are a creature of statute and statutory powers, are income in the hands of the nominee, legal representatives of the original depositor .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR2006SC1383; (2006)4CompLJ330(SC); (2006)201CTR(SC)346; [2006]282ITR273(SC); JT2006(3)SC114; 2006(2)SCALE752; (2006)3SCC1; [2006]145STC91(SC); 2006[2]STR161; [2006]152
..... trade tax act, 1948, the challenge to section 2(h) and 3f which have basically re-produced article 366(29a) has not been pressed by the petitioners. ..... of the principles of natural justice in that he was not a party to the lis but the judgment adversely affected his interests or, if he was a party to the lis, he was not served with notice of the proceedings and the matter proceeded as if he had notice, and (2) where in the proceedings a learned judge failed to disclose his connection with the subject-matter or the parties giving scope for an apprehension of bias and the judgment adversely affects the petitioner.19. ..... the classical concept of sale was held to apply to the entry in the legislative list in that there had to be three essential components to constitute a transaction of sale-- namely, (i) an agreement to transfer title (ii) supported by consideration, and (iii) an actual transfer of title in the goods. ..... what is noteworthy is that in both the cases there were goods in existence which were delivered to the contractors for their use. ..... we are, therefore, of the view that where the goods are in existence, the taxable event on the transfer of the right to use goods occurs when a contract is executed between the lessor and the lessee and situs of sale of such a deemed sale would be the place where the ..... (d) in cases where goods are not in existence or where there is an oral or implied transfer of the right to use goods, such transactions may be effected by the delivery of the goods .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1956SC246; [1956]29ITR349(SC); [1955]2SCR1196
..... . by the time this petition came to be heard by this court, the parliament had enacted act xxxiii of 1954 which, as stated above, introduced section 34(1-a) in section 34 of the indian income-tax act and this court came to the conclusion on a comparison of the provisions of section 5(1) of the act with section 34(1-a) of the indian income-tax act that the new sub-section inserted in section 34 by act xxxiii of 1954 was intended to deal with the class of persons who were said to have been classified for special treatment by section 5(1) of act xxx of 1947 ..... in accordance with the recommendations of the committee, an agreement was entered into on the 25th february, 1950 between the president of the union and the rajpramukh of travancore-cochin in regard to these matters and on the 31st march, 1950 the finance act, 1950 (act xxv of 1950) came into force and the indian income-tax act, 1922 (xi of 1922) was extended to travancore-cochin. 11. ..... integration and was not an 'existing law' continued in force by ordinance i of 1124; (2) the notification dated the 26th july, 1949 which purported to bring the travancore act xiv of 1124 into force as from the 22nd july, 1949 was ineffective and invalid; (3) even if the travancore act xiv of 1124 was in force, it could not apply to or override the assessment orders concluded by the chief revenue authority, travancore; (4) the rajpramukh's agreement read with article 245 of the constitution .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1985SC924; (1985)45CTR(SC)220; [1985]152ITR447(SC); 1985(1)SCALE446; (1985)2SCC343; [1985]3SCR297; 1985(17)LC737(SC)
..... section 2(m) of the wealth tax act provides :(m) 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than-(i) xx xx xx(ii) xx xx xx(iii) the amount of the tax, penalty or interest payable in consequence of any order passed ..... under or in pursuance of this act or any law relating to taxation of income or profits, or the estate duty act, 1953(34 of 1953), the expenditure tax act, 1957 (29 of 1957), or the gift-tax act, 1958 (18 of 1958),-(a) which is outstanding on the valuation date and is claimed by the assessee in appeal, revision or other proceeding as not being payable by him ; or(b) which, although not claimed by the assessee as not being payable by him ..... the tax liability comes into existence on the last day of the previous year relevant to the assessment year. ..... but when we refer to the clause under consideration, it narrows the scope down to a liability which exists in present time. .....
Tag this Judgment!Court : Supreme Court of India
Reported in : AIR1997SC1372; [1997]224ITR362(SC); JT1997(2)SC419; RLW1997(2)SC287; 1997(2)SCALE16; (1997)3SCC253; [1997]1SCR480
..... 1178 and 1181 of 1974 filed by the respondents and has quashed the notices dated march 27, 1974 issued under section 17 of the wealth-tax act, 1957. ..... you may also convey this information to the cit, rajasthan and iac, bikaner so that the information reaches the concerned wealth-tax officers, income-tax officers and gift tax officers, who would be concerned with the case of the other share-holders in rajasthan.with regards,yours sincerely,sd/- (s. m. ..... it is clear from these facts that the quotations appearing are as a result of certain manipulated transactions between the group itself and cannot be said to reflect the fair market value of the company, the extract of which you have given, shows transfer of a very small number of shares compared to 72,000 equity shares of the company.4. ..... been decided by the high court by a common judgment dated october 26, 1979 whereby the high court has held that in the facts and in the circumstances of the case, it could not be said that the income-tax officer had in his possession information in consequence of which he could have reason to believe that income chargeable to tax had escaped assessment for the relevant assessment years. ..... which he had extracted from the bombay stock exchange directory and which he had forwarded as an annexure along with the said letter. ..... along with the said letter shri bagai had annexed the information which was gathered by him on the basis of the bombay stock exchange directory and other information. .....
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