Court : Allahabad
Reported in : [1993]201ITR750(All)
..... was an industrial undertaking within the meaning of section 5(1)(xxxii) of the wealth-tax act, 1957, even though the firm did not manufacture the leather boots itself ?' 3. ..... at the instance of the revenue, two following common questions relating to the assessment year 1974-75 have been referred by the appellate tribunal to this court under section 27(1) of the wealth-tax act, 1957, for its opinion :' 1. ..... whether the income-tax appellate tribunal was correct in law in holding that fabrication of leather boots be regarded as manufacturing or processing of goods within the meaning of section 5(1)(xxxii) of the wealth-tax act, 1957 ? 2. ..... the firm was, therefore, clearly an industrial undertaking and the assessee was entitled to exemption under section 5(1)(xxxii) of the wealth-tax act in respect of his share in the firm.'5. ..... following the aforesaid decisions, we hold that the firm in which the assessees are partners will be characterised as an industrial undertaking within the meaning of section 5(1)(xxxii) of the act despite the fact that it got the leather boots manufactured on job basis from others to whom the raw material was supplied and labour charges were paid on contract basis.7. ..... radhey mohan naraiu : [1982]135itr372(all) which, adverting to the explanation appended to clause (xxxi) of sub-section (1) of section 5, held that the activity of converting plain white cloth into printed and dyed bedspreads, scarves and garments, etc. .....
Tag this Judgment!Court : Chennai
Reported in : [1963]50ITR809(Mad)
..... the charging section is section 3 which is as follows :'subject to the other provisions contained in this act, there shall be charged for every financial year commencing on and from the first day of april, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, hindu undivided family and company at the rate or rates specified in the schedule. ..... these words are used in other rules, and appear to me to mean for the purpose of enabling a person to carry on and earn profit in the trade, etc. ..... his submission is that the foundation of the business of the company is its wealth, that it cannot carry on the business without it, that its ownership of the wealth cannot be dissociated from its business engagement or activity and that a charge on the wealth under the wealth-tax act when properly made and collected would be a permissible deduction in the ascertainment of the true commercial profits of the business. ..... is the head note in that case :'held, that land tax paid under the land tax acts of the common wealth by a person who carries on the business of a grazier in respect of land in victoria on which he carries on the business, is an outgoing actually incurred by him in the production of income, and is also a disbursement of money wholly and exclusively laid out or expended for the purposes of such trade within the meaning of section 93 and therefore that, for the purpose of assessing the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2005)94ITD21(Hyd.)
..... under wealth-tax act is permissible under section 27 of wealth-tax act and similar provisions are contained for filing reference applications under other direct taxes, but still if we have to give a meaning to para-5 of the instruction, it has to be understood that the monetary limits etc. ..... to be brought under tax net under the wealth-tax act and also due to enhancement of basic exemption limit, there would be very few cases where the tax effect in wealth-tax appeals would exceed rs ..... the cbdt never intended to enhance the monetary limits with regard to the appeals to be filed under wealth-tax act since the tax rates under wealth-tax act were drastically reduced from 3 to 1% during the above period and many assets were taken out of tax net. ..... learned dr submitted that in respect of appeals filed under the wealth-tax act different monetary limits are prescribed by the cbdt and thus the appeals were filed in consonance ..... have, under peculiar circumstances, thought fit not be enhance the monetary limit in respect of the departmental appeals filed under the wealth-tax act.as directed by the bench, the d/r filed a copy of instruction no. ..... the case of 263 itr 706 in the case of azadi bacha andolan to submit that it is the duty of the ito to follow the instructions issued by the cbdt under section 119 of the act and the departmental authorities should not choose to ignore the guidelines and spend their time, talent and energy on inconsequential matters. ..... wealth-tax, gift-tax, estate duty etc .....
Tag this Judgment!Court : Chennai
Reported in : [1989]179ITR228(Mad)
..... in holding that the assessee's addiction to alcohol would constitute reasonable cause for not filing the return within the prescribed time wealth-tax assessment years 1966-67 to 1969-70 : (1) whether, on the facts and in the circumstances of the case, the appellate tribunal was right in cancelling the penalties levied under section 18(1)(a) of the wealth-tax act, 1957 (2) whether, on the facts and in the circumstances of the case, the appellate tribunal was right in holding that the assessee ..... at the instance of the revenue, under section 256(2) of the income-tax act, 1961, and under section 27(3) of the wealth-tax act, 1957, the following questions of law have been referred to this court for its opinion : 'income-tax assessment year 1968-69 : (1) whether, on the facts and in the circumstances of the case, the appellate tribunal was right in cancelling the penalty levied under section 271(1)(a) of the income-tax act, 1961 (2) whether, on the facts and in the circumstances of the case, the ..... 1969-70 on august 17, 1969, and the signing of an income-tax return by the assessee on january 7, 1969, established that the assessee was fully aware of his obligation under the income-tax and wealth-tax acts, and since the periods of drunkenness attributable to excessive consumption of liquor were followed by intervals of normalcy, the assessee could have discharged his obligation of filing the returns under those acts during those intervals of normalcy and, therefore, there was no .....
Tag this Judgment!Court : Kolkata
Reported in : AIR1970Cal462,[1970]78ITR214(Cal)
..... we cannot over-emphasize the fact and we repeat that compensation either interim or final when paid certainly becomes an asset, a part of the wealth and will attract wealth tax under the wealth tax act wilnin the definition of asset in section 2(e) of the wealth tax act and we also repeat that mere physical or other mechanical difficulties of valuing an asset, will be no deterrent under section 7 of the wealth tax act, so long it does not suffer from legal prohibition of being sold in real or imaginary open market. ..... ' the big issue unquestionably then is that this land to begin with is agricultural land which lias been expressly excluded by section 2(e) of the wealth tax act as forming part of the assets in the scheme of the wealth tax act but the revenue authorities contend that by a statutory provision a 'new kind of property' described as right to receive compensation, has been created independently of all concept of agricultural land and its exemption. ..... the statement of case refers to the assessments during 1957-58, 1958-59 and 1950-60. ..... 'net wealth means the amount by which the aggregate value computed in accordance with the provisions of this act and all the assets, wherever located, belonging to the assessee on the valuation date' etc. ..... does not include in relation to the assessment year commencing on the 1st day of april, 1959 or any earlier assessment year, agricultural land etc. .....
Tag this Judgment!Court : Jammu and Kashmir
Reported in : [2001]247ITR549(J& K)
..... under section 27(1) of the wealth-tax act, 1957 ('the act') (erroneously numbered as income-tax reference), at the instance of the revenue, the income-tax appellate tribunal, amritsar bench, amritsar ('the tribunal'), has referred the following question of law to this court for opinion : 'whether, on the facts and in the circumstances of the case, the tribunal was correct in law in confirming the order of the commissioner of income-tax (appeals) quashing the assessment framed by the wealth-tax officer ..... case, the supreme court considered at length the question whether the wealth-tax act (minus agricultural land) related to entry 86 of list i (union list) of the seventh schedule as contended by the revenue or entry 97 of list iii (concurrent list) as contended by the assessee and held (page 633) : 'the language of entry 86 also clearly indicates that the tax is upon individuals and not directly upon the assets or upon ..... the real controversy in this case is in regard to the legislative competence of parliament to enact the wealth-tax act in relation to the state of jammu and kashmir in view of the special provision contained in article ..... as below : 'whether, the tribunal was justified in holding that the extension of the wealth-tax act, originally enacted, to the state of jammu and kashmir was unconstitutional ? ..... mehta, wto , wherein it was held that the application of the wealth-tax act to the state of jammu and kashmir was ultra vires the constitution of india, as applicable to .....
Tag this Judgment!Court : Mumbai
Reported in : [2003]264ITR667(Bom)
..... company filed its return of wealth on april 13, 1992, in response to a notice under section 17(1) of the wealth-tax act, 1957, declaring the net wealth of rupees nil, the assessing officer calculated the net wealth of the assessee-company ..... matter, the commissioner of income-tax (appeals) further observed that the rate of capitalisation should be worked out on a scientific basis and, consequently, the assessing officer was directed to apply schedule iii to the wealth-tax act and revalue the property on that ..... tax (appeals) has merely directed valuation of the property as per schedule iii to the wealth-tax act. ..... tax (appeals) has merely directed the assessing officer to revalue the property after taking into account the principles mentioned in schedule iii to the wealth-tax act. ..... of the tribunal, the department has filed this appeal under section 260a of the income-tax act, 1961.facts :3. ..... respect of the assessment year 1992-93 and the wealth-tax appeal no. ..... respect of the assessment year 1989-90, wealth-tax appeal no. ..... wealth-tax ..... of the department that, in this matter, the department has come in appeal before the high court as the commissioner of income-tax (appeals) has laid down a principle of law while remanding the matter to the assessing officer. ..... being aggrieved, the assessee carried the matter in appeal to the commissioner of income-tax (appeals) who took the view that, in this matter, the government valuer has not worked out the actual rent received for the property occupied by .....
Tag this Judgment!Court : Allahabad
Reported in : [1991]192ITR686(All)
1. under section 27(3) of the wealth-tax act, 1957, the following two questions have been stated by the tribunal :'1. whether the income-tax appellate tribunal was correct in law in holding that preparation of biris from tendu leaves and tobacco can be called 'manufacturing or processing of goods' within the meaning of section 5(1)(xxxii) of the wealth-tax act, 1957? 2. if the answer to the above is in the affirmative, whether the income-tax appellate tribunal was correct in law in holding that the firm, messrs ram kishan daya ram and co., was an industrial undertaking even though the firm did not prepare biris by itself ?' 2. it is brought to our notice that both the questions are concluded in favour of the assessee and against the revenue by the decision of this court in cwt v. mubarakali khan and cwt v. mujahid ali khan : [1980]123itr101(all) , wherein it has been held that preparation of biris from tendu leaves and tobacco can be called 'manufacturing or processing of goods' within the meaning of section 5(1)(xxxii) of the wealth-tax act. if it is manufacturing or processing of goods, it would also constitute an industrial undertaking.3. accordingly, the two questions are answered in the affirmative, that is, in favour of the assessee and against the revenue.4. no costs.
Tag this Judgment!Court : Chennai
Reported in : (1995)129CTR(Mad)397; [1995]215ITR461(Mad)
..... the supreme court has stated (headnote) : 'on a reading of the plain words of the proviso to section 4(1)(a) of the wealth-tax act, 1957, the clause 'for any assessment year commencing after the 31st day of march, 1964' can only be read as relating to gift-tax assessments and not to wealth-tax assessments. ..... the wealth-tax act, 1957, brought a charge for every assessment year commencing on and from the 1st day of april, 1957, by way of a tax called the wealth-tax, in respect of net wealth on the corresponding valuation date of every individual, hindu undivided family and company at the rate or rates specified in schedule i. ..... then what section 4(1a) of the wealth-tax act says is that then, notwithstanding anything contained in any other provision of the wealth-tax act, or any other law for the time being in force, for the purpose of computing the net wealth of the individual under the wealth-tax act for any assessment year commencing on or after the 1st day of april, 1972, the converted property or any part thereof in so far as it is attributable to the interest of the individual in the property of the family, shall be deemed to be assets ..... further the question whether that hindu undivided family validly transferred it to the wife, daughter, etc. .....
Tag this Judgment!Court : Chennai
Reported in : [1969]72ITR107(Mad)
..... this and the other two questions, which we shall presently reproduce, turn on whether the taxes for which provision has been made in the assessment year are debts owed by the assessee under section 2(m) of the wealth-tax act, 1957. ..... , : [1966]59itr569(sc) the supreme court held that the amounts covered by notices of demand under section 18a of the income-tax act in respect of advance tax were debts owed within the meaning of section 2(m) of the wealth-tax act on the valuation date. ..... the supreme court in that case held that a certain amount shown in the balance-sheet of a limited liability company as provision for payment of income-tax and super-tax in respect of the particular year of account was a debt owed within the meaning of section 2(m) of the wealth-tax act as on the valuation date and that, as such, it was deductible in computing the net wealth of the company. ..... for convenience, we shall next deal with the third question under reference : ' whether the tax due under section 18a on the basis of the assessee's own estimate could not be regarded as a debt owed within the meaning of section 2(m) of the wealth-tax act ' 9. ..... 3,18,129, representing the balance of tax for the year ending december 31, 1957, are allowable deductions in the computation of the net wealth under the wealth-tax act ' 3. .....
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