"December, 1965" Archive

Section 68– Cash credits– Evidence by migrants from Burma

Circular No. 11(LIV 4) D (31/12/1965)

It has been represented to the Board that in view of the difficulties faced by persons migrating from Burma to India, it may not be possible for a migrant from that country to lead the evidence necessary to prove his claim that a particular sum of money has been brought over by him from that country. 2. The Board consider that the case of...

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Calculation of penalty imposable for default under section 271(1)(a)

Circular No. 17(XLV-18)-D (31/12/1965)

On a representation made by the Gujarat Chamber of Commerce, the matter has been reconsidered by the Board in consultation with the Ministry of Law. Under section 271(1)(i) the penalty is to be 2 per cent of the tax, if any, payable by the assessee...

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S.271(1)(a) of Income-tax Act, 1961 – Penalty for late filing of return

Circular No. 17D(XLV-18) (31/12/1965)

On a representation made by the Gujarat Chamber of Commerce, the matter has been reconsidered by the Board in consultation with the Ministry of Law. Under s. 271(l)(a) of the IT Act, 1961, the penalty is to be 2 per cent of the tax, if any, payable by the assessee....

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Business converted into limited company – capital gains?

Circular : No. 23D(XXIII-6) (31/12/1965)

The decision of the Supreme Court was that where the sale was of the concern as a whole and a slump price was paid, no portion of this price was attributable to the stock-in-trade and, therefore, it was not possible to hold that there was a profit other than what resulted from the appreciation of capital. It follows, therefore, that where...

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Number of Income-tax assessees—Salaries assessees—Disposal of Cases

CBDT Bulletin No. XII/II/32 page 43 (31/12/1965)

All salaried persons having taxable income as per annual returns under section 206 should be taken on the G.I.R. However notices under section 139(2) or 147 are to be issued only to those persons who have not paid the tax correctly or who are believed to be having some source of income besides salary...

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Tax on Interest by Partner to Firm and Vica Versa

Circular No. 33-D(XXV-24) (31/12/1965)

In Board Circular No. 55 of 1941, it was stated that interest charged to a partner on his overdrawn account should not be included in the total income of the firm. It was further stated that where it appears that the capital borrowed for the purpose of business was partly diverted towards over-drawn account, the correct procedure would be...

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Taxability of surplus arising on sale of business as a going concern

Circular No. 23-D (LXXV III-6) (31/12/1965)

The decision of the Supreme Court was that where the sale was of the concern as a whole and a lump price was paid, no portion of this price was attributable to the stock-in-trade and therefore it was not possible to hold that there was a profit other than what resulted from the appreciation of capital....

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