Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1988)25ITD599(Pat.)
1. The issue is about a sum of Rs. 45,710 which was added by the Income-tax Officer in the assessment for the asst. year 1979-80.2. The sum of Rs. 45,710 was made up of two additions one for Rs. 21,170 and another for Rs. 24,540. The sum of Rs. 21,170 represented the profit worked out at 2 per cent on sale of goods amounting to Rs. 10,58,509. It was found by the ITO that the account books of M/s. Raj Trading Co. which have been seized during the search of their premises contained an account of M/s. Rama Traders the assessee where the later was found to have made purchases amounting to Rs. 10,87,306. The books of the assessee showed that he had made purchases of only Rs. 28,797 from M/s. Raj Trading Co. The ITO therefore relying on the ledger account of the assessee as appearing in the seized books of M/s. Raj Trading Co. enquired why the excess purchases amounting to Rs. 10,58,509 were not appearing in the account of Raj Trading Co. in his accounts maintained by him. The assessee deni...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1988)25ITD305(Pat.)
1. The applicant has pointed out several omissions in the order passed by the Appellate Tribunal in ITA Nos. 7, 233 to 241 (Pat.) of 1982 for asst. years 1972-73 to 1976-77. We deal with them serially one after the other.2. His first objection is that grounds of appeal Nos. 4 & 5 in these appeals have not been dealt with. The applicant had filed an application with Settlement Commission for all out settlement on 23-1-1978. The applicant showed a challan for payment of fee of Rs. 500 on 18-1-1978. It was the contention of the applicant before the CIT that during the pendency of the application the revenue authorities were not justified in proceeding with the assessments for the aforesaid years. Provisions of Chapter XIXA forbade continuance of proceedings for these years as long as the question of settlement of his liabilities for these years was pending before the Settlement Commission. The ITO knew about his application moved before the Settlement Commission. The CIT(A) before hi...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1987)20ITD94(Pat.)
1. While the assessee is in appeal for the assessment years 1974-75 to 1979-80, the revenue is in appeal for the assessment years 1976-77 to 1978-79. As these appeals involve consideration of a common issue, these are combined together and disposed of by this common order.2. We first take up the appeal filed by the assessee for the assessment year 1974-75 One of the issues which is common for all the years both in the appeals filed by the assessee as well as those filed by the revenue is regarding the claim of assessee for deduction under Section 80J of the Income-tax Act, 1961 ('the Act'). The assessee, a company, had taken over a running business of a partnership concern Hindustan Tools & Dies, Laxmi Mansion, Bistupur, Jamshedpur with all its assets and liabilities. Soon after taking over this business from Hindustan Tools & Dies, Laxmi Mansion, the assessee launched a scheme of expansion and diversification of the manufacturing job which was done by the existing business. T...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1987)20ITD80(Pat.)
1. The issue raised in this appeal relates to a claim for deduction of Rs. 81,978. The assessee made a claim of deduction of this sum as provision for gratuity to employees for the assessment year 1973-74. In fact, the assessee had claimed a deduction for Rs. 2,92,160. The ITO allowed the deduction of Rs. 2,01,929 made as contribution towards the approved gratuity fund. It was only in respect of the claim for deduction of Rs. 81,978 which was provided as additional liability foisted under the Central Gratuity Act, 1972, that the ITO objected to.According to him, the contribution of this sum not being made under the gratuity scheme which was approved by the Commissioner could be allowed. The AAC did not agree with this view taken by the ITO. He observed "the next ground is about an addition of Rs. 81,978 being the provision for payment under the Central Gratuity Act, 1972 which became effective from 15th October, 1972. The ITO has allowed normal payment to the gratuity fund recognised ...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1987)20ITD730(Pat.)
1. Appeal filed by Phoolchand Bharmal Agrawal pertaining to his assessment for the assessment year 1984-85 and the appeals filed by Rajesh Kumar Phoolchand Agrawal pertaining to his assessments for the assessment years 1983-84 and 1984-85 were, for the sake of convenience, consolidated and heard together as the question arising for consideration in these appeals was the same.2. The dispute arising in these appeals is with regard to the status in which the assessments should have been made.3. Shri Phoolchand Bharmal Agrawal was the kartra of the HUF. The family was as under : ------------------------------------------------------------ | | | | Rajesh Kumar Shaila Devi Kumari Nita Kumari Nanda (son) (daughter) (daughter) (daughter) | It was claimed before the WTO that there had been a complete partition of the HUF as on 18-3-1983. The WTO passed an order under Section 20 of the Wealth-tax Act, 1957 recognising the complete partition.4. On this partition, certain properties had been allo...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1987)20ITD358(Pat.)
1. Wealth-tax appeals filed by the department in respect of the assessments of the assessee pertaining to the assessment years 1978-79 to 1981-82 and the cross-objections filed by the department for the assessment year 1978-79 were heard together on 16-7-1986. Appeals filed by the department in respect of income-tax assessments of the assessee pertaining to the assessment years 1980-81 and 1981-82 were heard on 17-7-1986. After considering the rival submissions, these appeals and the cross-objections are being disposed of by a common order, as the main issue involved in these appeals is the same.2. Shri Nathmal Choudhary, his wife and their son, Ram Autar Choudhary, were members of a Mitakshara undivided family. The HUF had owned certain movable and immovable properties. Shri Nathmal Choudhary died in 1959, i.e., he died after coming into force of the Hindu Succession Act, 1956. The assessee-HUF while filing its wealth-tax return for the assessment year 1978-79 claimed for the first t...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1987)20ITD209(Pat.)
1. The abovementioned two appeals filed by the assessee pertain to the assessment years 1979-80 and 1980-81. The valuation dates relevant to these two assessment years are 31-3-1979 and 31-3-1980. As these appeals had raised similar issues, they were consolidated and heard together. After hearing the rival submissions, these appeals are being disposed of by a common order as under.2. The main issue to be decided in these appeals is whether the reassessment proceedings are valid.3. The facts giving rise to these appeals may be stated. The original assessments for these two years were completed on net wealth as disclosed by the assessee in her returns. For the assessment year 1979-80, the assessee had filed her wealth-tax return on 6-11-1979 showing net wealth of Rs. 2,53,128. The WTO completed the assessment on 28-10-1980 on the same wealth. For the assessment year 1980-81, the assessee had filed her return showing net wealth of Rs. 2,10,947 and the WTO completed the assessment on 28-1...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1986)19ITD175(Pat.)
1. This appeal has been filed by the assessee against the order dated 22-2-1985 of the AAC relating to the assessment year 1978-79.2. The assessee is a trust assessed in the status of AOP. In the course of assessment proceedings, the ITO found that the assessee's net income was Rs. 74,748 which was kept as a deposit with the State Bank of India. A sum of Rs. 75,500 was spent during the previous year under consideration out of the income of the earlier year. There is no dispute about the fact that the assessee is a trust whose income is exempt under Section 11 of the Income-tax Act, 1961 ('the Act') provided it spends at least 75 per cent of its income for the charitable purposes in India. The case of the assessee before the ITO was that it had spent a sum of Rs. 75,500 during the previous year under consideration in which its income was Rs. 74,748 and, consequently it spent the statutory portion of its current income during the year under consideration. The ITO did not agree. Accordin...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1985)13ITD369(Pat.)
1. This appeal has been filed by the assessee against the order dated 3-3-1984 of the AAC, the previous year of which ended on 31-3-1980.2. The assessee is an individual deriving income from pension and business as a dealer in Indane Gas.3. The only dispute in this appeal is whether the salary paid by the assessee to his manager, who happens also to be his wife, could be added under Section 64(1)(ii) of the Income-tax Act, 1961 ('the Act') to the income of the assessee or the said salary is excludible from such inclusion under the proviso to the said section. The case of the assessee was that his wife was acting as the manager of the Indane business while the assessee was looking after the work relating to the Bank, attending other office work and the matters generally connected with the places outside its business premises. The manager was solely incharge of the business premises, the godown where the Indane Gas is stored and running the business of storing and supplying the gas cyli...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Patna
Reported in : (1985)13ITD373(Pat.)
1. This appeal has been filed by the assessee against the order dated 2-4-1984 of the AAC relating to the assessment year 1980-81, the previous year of which ended on 31-3-1980.2. The assessee has been assessed in the status of an individual in the proceedings before me in this appeal. He is a Government officer deriving income from salary. In addition to the salary income, the ITO has assessed a sum of Rs. 11,000 as the assessee's income from house property. There is another sum of Rs. 1,000, assessed income from SOP (sic). The only dispute in this appeal relates to the assessment of Rs. 11,000, as the assessee's income from house property.3. The case of the assessee before the ITO was that the aforesaid property which yielded an income of Rs. 11,000, according to the computation of the ITO, did not belong to him in his individual capacity, but it belonged to the HUF of which he was the karta. It may be stated that this house was situate at Gandhi Nagar, S. K. Puri, Patna. The assess...
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