Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)34ITD388(Chd.)
1. This second appeal is directed against the order dated 29th of December, 1989 passed by the Commissioner of Income-tax (Appeals), Ludhiana, in respect of assessment year 1988-89 vide which she upheld two additions totalling Rs. 9,37,762 made in the assessment framed by the Income-tax Officer, Ward-I, Ludhiana, Under Section 143(3) of the Income-tax Act, 1961 on 28th February, 1989. The addition was made of two components, one representing the value of 3217.320 gms., of jewellery to the tune of Rs. 8,07,547 and the other on account of under valuation of closing stock amounting to Rs. 1,30,215.2. The necessary related facts are that the appellant, partnership firm constituted of S/Shri Sukhdev Raj Jain and Ajay Kumar Jain, was doing jewellery business as licensed gold dealer deriving income from manufacture and sale of gold ornaments. On sale of Rs. 11,31,895, G.P.of Rs. 1,88,176 was offered giving a rate of 16.62% which was found to be in order. This we are stating because though th...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)34ITD358(Chd.)
1. This appeal by the assessee is directed against the order of the Appellate Assistant Commissioner dated 24-11 -1987 relating to assessment year 1986-87. The grievance of the assessee is that the Appellate Asstt. Commissioner erred in law as well as on facts in upholding the action of the Income tax Officer to reopen the assessment under Section 147(b) of the Income-tax Act, 1961. On this issue, we have heard the parties and we find that the grievance of the assessee is well founded because we are of the considered opinion that on the facts and in the circumstances of the case, the impugned assessment was made on the basis of a change of opinion by the Income-tax Officer.This becomes clear if the position of law is properly appreciated and is applied to the relevant facts which are necessary for determination of this issue.2. The assessee, Mr. Justice S.P. Goyal, filed the return of his income for the year under appeal on 30th July, 1986 vide receipt No. 2461.Below the computation o...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)33ITD62(Chd.)
1. The appellant-revenue, by the present appeal, challenges the correctness of the order dated 3-2-1987, of the learned Appellate Assistant Commissioner, for assessment year 1983-084, inter alia, on the following ground :- "The ld. AAC has erred both in law and on facts in holding that the sum of Rs. 40,000 received by the assessee from the firm over and above the capital as per books was not liable to capital gains tax." 2. By status, the assessee in this case is an individual and was a partner up to 31-12-1982 in the firm known by the name and style as M/s Rajindra Agro Industries, carrying on business of manufacturing, purchase and sale of various kinds of agricultural implements, auto parts, cycle parts, tractor parts, etc. The accounting period was the year ending 31-3-1983 and the accounts were maintained on mercantile basis. Return in this case was filed on 30-9-1983, declaring net income of Rs. 14,514. It was noted by the by the learned Income-tax Officer during assessment pro...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)32ITD567(Chd.)
1. These appeals by the assessee are directed against the two orders of the Commissioner of Wealth-tax (Appeals) relating to assessment years 1979-80 and 1984-85 respectively made on 7-8-1987 and 9-9-1987.However, a common ground projected in these appeals is that the Commissioner of Wealth-tax was not justified in upholding the finding of the Wealth-tax Officer to the effect that amount of Rs. 2,50,000 kept aside by the appellant for the marriage expenses of Archana Singal by taking out the same from the nucleus of the joint family was to be considered as pan of the appellant's taxable wealth. Before we come to determine this issue, we consider it necessary to have in focus the facts which are relevant for the determination of the issue. These are as under.2. There is a Hindu undivided family of which Shri B.B. Singal is the karta. Its two coparceners being sons of Shri B.B. Singal, are Sanjay Singal and Neeraj Singal. The other members of this joint family are Smt. Usha Singal w/o S...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)32ITD636(Chd.)
1. Appellant revenue by their present appeal challenge order dated 7-8-1985 of the learned Commissioner of Income-tax (Appeals), Ludhiana, passed on an appeal against the assessment order dated 17-3-1983, framed under Section 143(3)/147(b) of the Income-tax Act, 1961, for the assessment year 1977-78, inter alia, on the following ground:- On the facts and in the circumstances of the case the learned CIT (Appeals) has erred in cancelling the re-assessment framed by the ITO vide order dated 17-3-1983.2. By status, assessee in this case is an individual deriving income from various sources including salary, director's fee, dividend and agriculture. His method of accounting was mercantile and the accounting period was the year ending 31-3-1977. Return in this case was originally filed on 31-3-1977, declaring income of Rs. 1,09,290 including agricultural income of Rs. 6,900. The said return was subsequently revised on 10-2-78, showing income at Rs. 86,690. The reason for filing the revised ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1989)31ITD535(Chd.)
1. In the captioned appeals by the revenue and cross-objections by the assessee, we have before us very interesting legal issues. In order to appreciate why these legal issues arose and why the parties have their respective grievances, it is very essential to have a very accurate factual background of the case which, as culled out from the record and the papers filed before us, is as under.2. The assessment years involved in these appeals are 1979-80, 1980-81 and 1982-83. The assessee is a corporation in which the Government of Punjab is substantially interested. Its business consists of manufacture and sale of 'Malathion Technical'. The assessee maintains books of accounts on mercantile system of accounting. Its previous year ends on 30th September. Thus, for the assessment years under appeals, the previous years ended respectively on 30th September, 1978, 30th September, 1979 and 30th September, 1981. In accordance with the provisions of law, the return of income from the assessee w...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1990)32ITD254(Chd.)
1. This appeal by the assessee is directed against the order of the Commissioner of Income-lax (Central), Ludhiana, made Under Section 263 of the Income-tax Act, 1961 on 7-11-1986 relating to the assessment year 1982-83.2. We have heard the parties and carefully considered their rival submissions. For the reasons that we record below, after bringing into focus the relevant facts of the case, which have a bearing on determination of the issue before us, we have no hesitation in cancelling the impugned order by holding that the Commissioner of Income-tax had no jurisdictional facts to assume lawful jurisdiction Under Section 263 to make the impugned order.3. The assessee, Shri Vinod Kumar Gupta, is an individual having income from house property, share of profits from M/s. New Idea Farm Equipment Co., interest on deposits etc. The assessee was travelling with a couple, who were family friends, in a car driven by a driver on 29th Dec. 1979 when, unfortunately, the car met with a serious ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1989)30ITD221(Chd.)
Per Shri S. K. Chander,-These appeals by the assessee for various assessment years are directed against different orders of the Appellate Assistant Commissioner confirming penalties under sections 271(1) (c), 271(1) (a) and 273(b) of the Act. They are being disposed of by a consolidated order for the sake of convenience.2. In this case, an action under section 133A of the Act was taken on 16-2- 1978 and certain books of account and documents were impounded under section 131 of the Act on the same day. During the course of survey under section 133A, the value of stock found in the shop at that time was estimated at Rs. 1,20,000. A sum of Rs. 3,325 in cash was also found at the business premises of the assessee.3. The scrutiny of the impounded documents and books of account indicated that the assessee had the following assets and investments on the date of survey :- (ii) Cost of immovable properties purchased from time to time standing in the name of the assessee, his wife and son : The...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1987)22ITD296(Chd.)
1. A very ticklish issue is involved in this appeal. On 22-5-1968, the assessee filed return of his income at Rs. 21,172. This was neither in the prescribed form nor was it verified by the assessee underneath the verification. This return was accepted by the Income-tax Officer under Section 143(1) of the Income-tax Act, 1961, and assessment was made accordingly. On 10-1-1969, the assessee filed another return declaring an income of Rs. 71,944. Pending this return, on 7-4-1969 the ITO served a notice to the assessee Under Section 148 on 10-4-1969. Vide his letter dated 19-5-1969, the assessee requested for vacating the said notice or, in the alternative, he pleaded that the return filed by him on 10-1-1969 be considered as having been filed in response to the said notice. On 28-2-1973, the assessee filed another return declaring an income of Rs. 69,180. Ultimately, an assessment was made Under Section 147/143(3) on 21-3-1973. Meanwhile, the assessee also put in an application for cance...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (1987)23ITD262(Chd.)
Matter not raised before Appellate Assistant Commissioner does not hit by merger doctrine, therefore, can be revised by Commissioner.If there are certain matters wholly extraneous to the language of the assessment order, the order cannot be deemed to merge in the appellate order, inasmuch as an appellate authority is not expected to make any fresh enquiries other than on the points on which there is a reference in the assessment order itself. (ii) The order of the Income Tax Officer in question does not say anything about the seizure of the jewellery as that any part thereof was liable to be considered for the purpose of making an addition on account of unexplained investment by the assessee during the relevant accounting year. The revision cannot therefore be said to have hit by doctrine of merger.Revision under s. 263--VALIDITY--Non-consideration of entire matter by assessing officer.An order can be erroneous where, in the circumstances of the case, the assessing officer should have...
Tag this Judgment!