Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)14ITD263(Nag.)
1. This appeal by the assessee is against the order of the Commissioner (Appeals) in his appeal No. CIT-(A)-358 of 1982-83, dated 24-6-1983 relating to the assessment year 1982-83 wherein he has held that the ITO was justified in effecting disallowance of the depreciation on the car and jeep to the extent of one-third of the claim in this behalf for personal user of the vehicles by the family members.2. The facts leading to the disallowance of one-third of the claim for depreciation on jeep and car are as under : The assessee, a family trust, is assessed in the status of an AOP. For the year under consideration, the ITO disallowed one-third of the claim on account of car and jeep expenses, inclusive of the driver's salary, on estimate for personal use of the car and jeep by the trust members. Following the same, he invoked the provisions of Section 38(2) of the Income-tax Act, 1961 ('the Act') and made a similar disallowance from out of the claim for depreciation on car and jeep.3. On...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)13ITD403(Nag.)
1. This appeal by the assessee is against the order of the AAC, A-Range, Raipur, in his Appeal No. Rjn-B-64 1372 I, 1982-83, dated 30-3-1983, relating to the assessment year 1980-81 confirming the interest paid to the partners by the firm disallowed under Section 40(b) of the Income-tax Act, 1961 ('the Act'), as also the disallowance made by the ITO, in the loss claimed in bardana account to the extent of Rs. 3,000. The facts in this regard, the rival submissions and our conclusion thereon are discussed hereunder.2. The assessee is a partnership concern dealing in grains and oilseeds. There was a claim for allowance of loss of Rs. 20,779 in the bardana account. The ITO noticed that the actual consumption during the year of account was 2,717 gunny bags billed at Rs. 14,582 at Rs. 6.72 per bag. He came to the conclusion that the claim of loss to the extent of Rs. 20,779 was excessive considering that the opening and closing stocks were estimated at round figures of Rs. 9,000 and Rs. 10,...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)13ITD526(Nag.)
1. This appeal of the assessee relates to the assessment year 1978-79 and arises out of the order of the Commissioner passed under Section 263 of the Income-tax Act, 1961 ('the Act'). The assessee contests the appeal on the ground that on the facts and in the circumstances of the case the Commissioner erred in invoking the provisions of Section 263.2. The assessee has filed the return for the assessment year 1978-79 declaring a net loss of Rs. 3,00,720 which did not bear the signature of any of the partners competent to sign the same. The ITO has, however, completed the assessment on 31-3-1981 determining the loss at Rs. 2,94,653.3. The Commissioner on a perusal of the case records came to the conclusion that the order passed by the ITO is erroneous and prejudicial to the interests of the revenue as according to him the aforesaid assessment was made on the basis of an invalid return. He, therefore, issued a notice to the assessee on 7-2-1983 under Section 263(1). The learned Counsel f...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)13ITD420(Nag.)
1. This appeal by the assessee is against the order of the Commissioner (Appeals) in his Appeal No. CIT (A)/145 of 1982-83 dated 4-6-1983 holding that the gross amount of interest paid to the partners by the firm was disallowable under Section 40(b) of the Income-tax Act, 1961 ('the Act') as held by the ITO and not the net amount of interest after adjustment of interest received from individual partners as claimed by the appellant.2. The facts in this regard, the rival submissions and our conclusion thereon, are discussed hereunder. The assessee, a partnership firm, paid interest amounting in all to Rs. 37,548 to its partners. It had also received interest from two of its partners, namely, Shri V.R. Shah and Shri H.S. Shah, of Rs. 1,825 and Rs. 5,838, respectively, on the amounts borrowed by them from the firm. The position of interest paid to and received from these two partners is as under:Name of the Interest Interest Net paid Net receivedpartner paid receivedShri V.R. Shah 4,880 1...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1986)17ITD912(Nag.)
Per Shri P. I. Mohan Singh, Judicial Member - This appeal of the revenue relates to the assessment year 1981-82 and arise out of the order of the AAC, dated 19-3-1983. The revenue contests the appeal on the ground that on the facts and in the circumstances of the case, the AAC erred in deleting the interest charged under section 139(8) /215/217 of the Income-tax Act, 1961 (the act).2. The brief facts of the case are as under : The assessee held one-seventh beneficial interest in Bhatia Family Trust. The share of her income assessable in this year amounted to Rs. 28,572. As no return had been filed by the assessee under section 139(1), the ITO issued a notice under section 148 of the Act on 7-7-1982 which was served on the assessee on 13-7-1982. Even before the notice under section 148 was served on the assessee, the assessee had filed the return on 12-7-1982.In the order passed by the ITO under section 143(3), read with section 147(a). of the Act, he directed the levy of interest unde...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)12ITD186(Nag.)
1. This appeal by the assessee is against the order of the AAC in his appeal No. 19, Cir. I (1) of 1982-83, dated 23-4-1983, holding that the sum of Rs. 12,500, being professional fees paid in respect of professional services rendered by the assessee to the company during the previous year, was assessable in the assessment for the year 1980-81.2. The appeal filed by the assessee is belated by a fortnight. From the condonation letter dated 21-7-1983, submitted by the counsel of the assessee, it would appear that there was no delay on the part of the assessee who appears to have handed over the necessary papers in this regard to the counsel in time and the delay that ensued thereafter, was due to a mistaken impression on the part of the counsel. We, therefore, condone the delay and admit the appeal. The facts in this regard are briefly as under: 3. The assessee was the managing director of Commercial Explosives (India) Ltd. By a resolution dated 23-7-1979, the Board of Directors requisi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)12ITD175(Nag.)
1. This appeal filed by the assessee is against the penalty of Rs. 4,500 imposed by the ITO under Section 273(2)(a) of the Income-tax Act, 1961 ('the Act'), and confirmed by the Commissioner (Appeals). The assessee contests the appeal on the following grounds, namely ; 1. The Commissioner (Appeals) erred in confirming the penalty of Rs. 4,500 levied by the ITO under Section 273(2)(a). 2. The Commissioner (Appeals) erred in holding that Section 292B of the Act is applicable to the assessment order, wherein penalty proceedings were initiated under Section 273(2)(aa). 3. The Commissioner (Appeals) erred in holding that he has powers under the Act to give the assessee an opportunity to submit reasons as regards why penalty under Section 273(2)(a) should not be levied on it.2. Before proceeding with the merits of the case, it is very relevant to set out the following facts: Notice under Section 210 of the Act was issued to the assessee on 2-6-1978 and the same was served on the assessee on...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)12ITD181(Nag.)
1. These four appeals relating to the assessment years 1979-80 to 1982-83 by the assessee are against the order of the Commissioner, Vidarbha, Nagpur, under Section 263 of the Income-tax Act, 1961 ('the Act'), setting aside the assessments for these years and directing the ITO to examine the activities carried on by the assessee and allow exemption under Section 80HH of the Act only in respect of those items which would qualify for being categorised as manufacturing activities.The facts in this regard, the rival submissions and our conclusion thereon are discussed hereunder.2. The assessee, a private trust, carried on the business of purchasing forest, felling the trees and converting them into logs and, subsequently, sawing them into timber of various sizes and varieties fit to be used in construction of buildings and also for being put to other uses inclusive of manufacture of furniture. The business operations of the assessee were carried on in a backward area.Deduction under Secti...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)12ITD330(Nag.)
1. This appeal by the revenue is against the order of the AAC in his Appeal No. 39YB of 1982-83, dated 31-3-1983, directing the ITO to allow relief under Section 89(1) of the Income-tax Act, 1961 ('the Act'), in accordance with the provisions of Sub-rule 4 of Rule 21A of the Income-tax Rules, 1962, on the sum of Rs. 31,088. The facts in this regard, the rival submissions and our conclusion thereon are discussed hereunder.2. The assessee, an employee of Brooke Bond India Ltd., Yavatmal, voluntarily retired from the service of the company on 2-4-1980 after twenty-eight years of continuous service. In the normal course, his retirement would have taken place only on 1-4-1985 subject to his having been found fit on 1-4-1983, fit to continue for two more years.In consideration of his voluntary retirement and in pursuance of a scheme evolved by the company in this behalf and the practice followed in similar cases, the assessee was paid a sum of Rs. 31,088. The assessee claimed that only one-...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Nagpur
Reported in : (1985)12ITD631(Nag.)
1. This appeal filed by the revenue and the cross-objection filed by the assessee relates to the assessment year 1976-77 and arise out of the order of the Commissioner (Appeals), Nagpur, dated 2-11-1981. The aforesaid appeal and the cross-objection involve a common issue and are, therefore, heard together and disposed of by a common consolidated order for the sake of convenience.The revenue contests the appeal on the following grounds, namely, that on the facts and in the circumstances of the case, the Commissioner (Appeals) erred in : (i) cancelling the assessment disregarding the fact that the ITO enjoyed ab initio jurisdiction and had seisin over the case ; (ii) in exercising his discretion wrongly in cancelling/annulling the assessment altogether and, thus, deprived the revenue of an opportunity to reassess the assessee ; (iii) holding that Shri Sunderdas Jairamdas was never a witness of the assessee and in placing the onus of disapproving the purchases in question made by the ass...
Tag this Judgment!