• Jul
  • 01
  • 2015

Gist Of Cenvat Credit On Construction Service

Added In Service Tax
The Cenvat Credit Rules 2004 provides for availment of credit of excise duty paid on inputs and capital goods and service tax paid on input services. But a real estate developer/builder opts benefit of Notification No. 26/2012-ST dated 20.06.2012 then builder/developer can avail credit of excise duty paid on capital goods and service tax paid on input services i.e. can not avail credit of excise duty paid on inputs.

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  • Jul
  • 01
  • 2015

All you want to know about ITR 2A

Added In Income Tax
For the financial year 2014-15 i.e. assessment year 2015-16, income tax department has issued a new Form ITR 2A. The reason for this form is that ITR 1 is very basic form in which very limited details are required to be furnished and only a limited salaried taxpayer are allowed to furnish this form. Due to its limitation Taxpayers has to File ITR 2 which is very complicated. To remove this complexity department introduced a new form ITR2A i.e. in between ITR 1 and ITR 2.

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  • Jul
  • 01
  • 2015

Undisclosed income beyond block period cannot be taxed

CIT (A) appeal as well as ITAT examined the document relied upon the revenue for making addition. It was found that the document was not addressed to anyone and without any signature and date. In such situation it can be said that it belong to assessee. Regarding another issue court found that income belong to period prior to block assessment hence can not be added for the block period.

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  • Jul
  • 01
  • 2015

For application of section 2(22)(e) a person should be both registered as well as beneficial shareholder

In the language of Section 2 (22) (e) the term beneficial owner of shares includes both registered as well as beneficial share holder. So provisions of this section could be applied where assessee can be treated as both mentioned above. AO, in order to bring any particular amount to tax, is entrusted with powers to invoke provisions of section under which assessee is defaulted. In all those section time limit to invoke provisions is mentioned like in sections 143 (2), 263, 147 etc.

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  • Jul
  • 01
  • 2015

Section 54- Even provisional letter of flat allotment is capital asset

The facts in that case were that the assessee had booked a flat, and was recipient of a provisional allotment letter. The Court held importantly that even booking rights or rights to purchase the apartment or to obtain its letter was also capital asset

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  • Jul
  • 01
  • 2015

Mere Entries found in third party books are not binding on Assessee

Entries found in third party books are not binding on the assessee solely on the basis of information received from the investigation unless the statement of the third party was supported by any documentary evidence.

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  • Jul
  • 01
  • 2015

Deemed dividend can be made applicable only in the hands of registered shareholders

From the bare reading of provision of section 2 (22) (e) it can be easily understood that section can be invoked only if assessee to whom any payment was made by way of loan or advance must be beneficial owner of the shares. In this particular case ITAT examined a list of shareholder filed by assessee in support of his argument and after examining the same ITAT concluded that section 2 (22) (e) had no application in the case of assessee.

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  • Jul
  • 01
  • 2015

Once identity & creditworthiness of parties and genuineness of transaction proved, section 68 cannot be invoked

There are various case laws which conclude the facts that once the assesse discharged its primary onus by placing material and document on record before AO then it is assumed that the unexplained amount reflected in books of assessee stands explained. In order to make addition AO must enquire further and brought out contrary material to make addition u/s 68.

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  • Jul
  • 01
  • 2015

Valuation of closing stock of finished goods at realizable value/sale price not amounts to understatement of closing stock

Assessee is a company engaged in the business of manufacturing and sale of cycle chains, wheel and axles. Assessee its return of income for AY 1997-98 was filed disclosing loss of Rs. 27,09,520/- and income of Rs. 1,08,544/- under the provisions of Section 115J. The assessment was completed u/s 143(3) at a loss of Rs. 1,26,032/- thereby, making addition of Rs. 25,83,492/-. However, this assessment order was rectified by the Assessing Officer under Section 154 at a loss of Rs. 12,75,648/-.

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  • Jul
  • 01
  • 2015

Appeals should Not Be Filed in Cases Where Tax Effect not Exceeds Monetary Limits

The contention of the assessee was that the tax effect in this appeal is less than Rs.4,00,000/-, therefore, the department ought not to have filed this appeal in view of the circular issued by the CBDT and the provisions contained in Section 268A of the Income Tax Act, 1961 (hereinafter to be referred as the Act).

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