Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (1982)1ITD56(Coch.)
1. This is appeal by the accountable person against the order of the Appellate Controller, Ernakulam.2. After the original memorandum of appeal, the assessee had filed additional grounds. These additional grounds have been admitted by us.These will be considered first before going into the regular grounds of appeal, as the additional grounds raise the question of jurisdiction of the Assistant Controller to make the reassessment under Section 58(3) read with Section 59 of the Estate Duty Act, 1953 ("the Act").3. The original assessment was made by the Assistant Controller on 31-7-1971. The Assistant Controller issued a notice under Section 59 on 28-8-1974. There is no dispute regarding these dates and the issue of the notice under Section 59. No notice under Section 59 was issued prior to this date. In the additional grounds, it has been submitted that under the provisions of Section 73A of the Act no proceedings for the levy of estate duty in the case of reassessment shall be commence...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1983)3ITD111(Mad.)
1. The appeal by the revenue raises two points, one with regard to an addition made for invisible loss in the production of yarn and the other relating to the claim for development rebate under Section 33 of the Income-tax Act, 1961 ('the Act').2. The assessee is a registered firm engaged in the manufacture and sale of cotton yarn. In computing the total income for the assessment year 1975-76 corresponding to the previous year ended 31-12-1975, the ITO scrutinised the quantitative tally statements and found that there was an invisible loss of 2.18 per cent, which was excessive when compared to the similar loss of 1.18 per cent shown in the preceding year. He also noticed that the gross profit had declined from 17.1 per cent to 9.02 per cent and asked the assessee to explain the increased claim in the invisible loss with reference to the monthly figures of production. The assessee explained that the monthly figures were rough and ready estimates and that several factors, such as, the m...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)2ITD121(Mum.)
1. The revenue in these appeals has disputed the orders of the Commissioner (Appeals) directing the ITO to allow weighted deduction under Section 35B of the Income-tax Act, 1961 ('the Act') in respect of the payment of salary and travelling expenses which were paid by the assessee on behalf of the principals to the employees.2. During the years under consideration, the assessee was under a contract for the supply of labour to the Japanese company by name of Ishikawajima-Harima Heavy Industries Co. Ltd. at Tokyo, Japan (IHJH), for the erection of units of ING tanks on Das Island, in Abu Dhabi. The contract was dated 24-12-1973, according to which, whereas IHH, undertook to erect and deliver the two units of ING tanks on Das Island. In accordance with the contract executed between Eastern Bachtel Corporation and IHH and whereas IHH desired to let the contractor, that is the assessee, to supply labours for the erection site under the terms and conditions as set out in the aforesaid contr...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD774(Mum.)
1. The scope and ambit of Section 64(1)(ii) of the Income-tax Act ('the Act') has furnished a happy hunting ground for litigation as a result of which there were conflicting opinions expressed by the Benches of the Appellate Tribunal leading to the hearing of the above appeal by a Special Bench constituted for the purpose. Some interveners also participated in the aforesaid battle between the two sides, though we would like to confine ourselves only to the facts of the above appeal while laying down what we consider to be the parameter of Section 64(1)(ii), along with the proviso, which is reproduced below : 64. Income of individual to include income of spouse, minor child, etc.-(1) in computing the total income of any individual, there shall be included all such income as arises directly or indirectly- (i) to the spouse of such individual from the membership of the spouse in a firm carrying on a business in which such individual is a partner ; (ii) to the spouse of such individual by...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (1982)1ITD533(Mad.)
1. This is a departmental appeal arising out of the order of the AAC in the case of Shri Aurobindo Ashram Harpagan Workshop Trust, Pondicherry, for the assessment year 1975-76.2. Shri Aurobindo Ashram Harpagan Workshop Trust is a trust by way of settlement of certain properties by a deed dated 18-12-1967 registered on the same day. The settlement was made by one Laurence Marshall Pinto, who had taken lease of the Ashram Workshop and was running a workshop therein with machineries purchased by him at a cost of Rs. 72,300 and was running it as a business. By this trust deed, he had settled the machineries specifically referred to in the schedule. It is clear from the preamble that Shri Pinto had taken loans from State Bank of India and was also running the business in the name of Harpagan Workhop and that it was the intention to transfer the business as a running business for the purposes of the objects of the trust with Shri Pinto continuing to manage the business, but as the sole trus...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1983)3ITD633(Mum.)
1. The Special Bench was constituted to consider the following important question which arises from the cross objection of the assessee: Whether the provisions of Section 144B which are introduced in the I.T. Act, 1961 with effect from 1-1-1976 are applicable to all pending assessment proceedings or whether they are applicable only to the proceedings for assessment years 1976-77 and onwards? The assessment year involved is 1974-75. The assessee, a firm, had filed their first return on 5-8-1974. In the course of the assessment proceedings, the ITO, after hearing the assessee, made out a draft assessment order and referred the same to the IAC under Section 144B on 29-3-1977. The assessee filed his objections on 12-4-1977. The IAC, after hearing the assessee, gave his directions which were received by the ITO on 23-9-1977. The assessment was completed later. The assessee's case is that the provisions of Section 144B, under which the ITO made the reference to the IAC, are not applicable s...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (1982)1ITD627(Mum.)
1. The appeal by the assessee, Stretchlon (P.) Ltd., Bombay, and the cross objection by the revenue. Since pertain to the assessment year 1975-76 for which the relevant previous year ended 31-12-1974 and involve certain identical issues, both these matters were heard together and are disposed of by this consolidated order for the sake of convenience.2 & 3. (Paras 2 and 3 are not reproduced here as they involve a minor issue.] 4. The second ground in the assessee's appeal pertains to disallowance of interest amounting to Rs. 11,623 paid to Delhi Development Authority for delayed payment of value of land purchased by the assessee for expansion of its business. The brief facts pertaining to this issue are that the assessee was contemplating of setting up a new unit in Delhi to manufacture nylon yarn and it was in this connection that a piece of land was purchased. Since a part of the price of the said land was not paid by the assessee, an amount of Rs. 11,623 was paid by the assessee...
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