Follow Us :

Archive: 09 January 2013

Posts in 09 January 2013

Reassessment Notice u/s. 148 notice issued by a non-jurisdictional AO is not valid

January 9, 2013 5057 Views 0 comment Print

Section 148 mandates issue of notice before assessment, reassessment or computation u/s 147. As per section 148, it is mandatory that the Assessing Officer shall serve on the assessee a notice required him to furnish a return. The expression “Assessing Officer” used in the section 148 means ‘the Assessing Officer vested with the jurisdiction over the assessee as stipulated in the definition u/s 2(7A) by virtue of the directions / orders passed u/s 120, sub-section (1) & (2)’.

Warranty provisions not to be added for calculation of book profit for MAT

January 9, 2013 6887 Views 0 comment Print

The facts of the case are that the assessee which is engaged in the business of manufacture and trading of medical consumable devices and diagnostic equipment for use by the health care professionals, medical research institutions, industry and general public etc. had claimed provision for warranty service. It had contended that this provision was based on adoption of scientific analysis. T

TPO cannot determine ALP of Project at NIL if Assessee submit all relevant documents & bills

January 9, 2013 1810 Views 0 comment Print

In our opinion, the exercise of ascertaining ALPs has to be done by the TPO keeping in view the well laid down scheme in the relevant provisions of the Act and addition, if any, on account of TP adjustment, has to be made only after doing such exercise. We, therefore, restore this issue to the file of the AO/TPO with a direction to do such exercise and make addition, if any, on this issue after completing such exercise in accordance with law.

S. 54F benefit available even on Value exceeding actual consideration due to deemed fiction U/s. 50C

January 9, 2013 7760 Views 0 comment Print

Raj Babbar v. ITO – Based on the factual matrix of the present case, where the assessee invested total full value consideration of Rs. 16,87,000/- (as per the SRO) in the residential house, which is one house only as it has only one kitchen, and these FVC is less than the invested amounts of 17,65,752/-, during the specified period, the assessee is not chargeable to tax on the capital gains u/s 45 of the Act.

Amount disallowed u/s. 40(a)(ia) not eligible for deduction u/s. 80IB

January 9, 2013 3526 Views 0 comment Print

It is settled principle that the deeming fiction created under any provisions of the Act cannot be imported into a beneficial provisions of the Act. In this case, the addition made on account of disallowance of expenditure is due to the deeming fiction created by the penal section 40(a)(ia) of the Act. Thus, the effect of the same cannot be imported into a beneficial provision vis-a-vis section 80-IB(10) of the Act.

Assessee entitled to relief U/s. 91 in respect of tax paid in Bhutan on income earned in Bhutan

January 9, 2013 2434 Views 0 comment Print

The Assessing Officer has computed the income from Bhutan operations at Rs. 68,63,57,400/- and included the same in the total income of the assessee, then the relief u/s 91 of the I T Act is allowable @ 8.53% on the said income, which is subjected to tax in both the countries. Accordingly, we direct the Assessing Officer to give relief u/s 91 by calculating the average rate of tax of 8.53% on Rs. 68,63,57,400/- subject to the total tax paid /payable in either of the countries.

Reassessment not justified if no failure by petitioner to disclose truly & fully all material facts

January 9, 2013 630 Views 0 comment Print

We notice that in the return filed by the petitioner, in addition to claiming deduction of gross income of interest and dividend of Rs.1,81,27,606 under Section 80P(2)(d) of the Act, the petitioner further provided various details. For example, in the Annexure-VII to the return, such deduction under Section 80P(2)(d) was bifurcated into dividend income of Rs. 53,71,450 and interest income of Rs. 1,27,56,156.

Looted amount of Assessee recovered from Police after completion of Search operations cannot be taxed under block assessment

January 9, 2013 874 Views 0 comment Print

Applying the ratio of the judgment in Chandra Prakash Agrawal (supra) to the present case, we find that the Tribunal did not commit any error in recording findings that since nothing was found in the search operations on 26.10.1995 and that though the warrant of authorisation under section 132A was issued on the following day on 27.10.1995,

Penalty to be set aside if revenue accepts that Assessee is eligible for immunity u/s. 271(1)(c) although he is not eligible

January 9, 2013 2082 Views 0 comment Print

The hearing was closed at this stage, pronouncing the result of these appeals by the Revenue against it; it being the common contention of both the parties that the provision of Explanation 5 to section 271(1)(c) stood attracted and satisfied in the instant case for the relevant years.

CBI raids premises of four Customs officials in bribery case

January 9, 2013 1241 Views 0 comment Print

CBI REGISTERS A CASE AGAINST FOUR OFFICIALS OF CUSTOMS & ONE DRI OFFICIAL IN AN ALLEGED BRIBERY CASE; CONDUCTS SEARCHES             The Central Bureau of Investigation has registered a case against four officials of the Customs Department & a Deputy Director, DRI; one Representative of a Kolkata-based private firm in an alleged bribery case, for […]

Search Post by Date
January 2013
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031