Income Tax Judgment of SC, HC and ITAT

  • Nov
  • 20
  • 2014

Section 28 – Loss incidental to illegal business is allowable

On Appeal Honourable high court has held that in view of the decision of the Hon’ble Apex Court in the case of Dr. T.A. Quereshi Vs. Commissioner of Income-tax, Bhopal reported in 287 Income Tax Reports 547, the loss which was incurred during the course of business even if the same is illegal is required to be compensated and for the loss suffered by the assessee.

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  • Nov
  • 19
  • 2014

A.O. is not only an adjudicator but also an investigator

 CA Prarthana Jalan Hon’ble Delhi ITAT while deciding a case involving issue of sec 263 of the Income Tax Act,1961 has held that A.O. is  not only an adjudicator but also an investigator.The observation of the Hon’ble bench is as under :- It  is  settled  law  that  that  frequency  and  magnitude  of transaction  are  also  important […]

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  • Nov
  • 18
  • 2014

While granting Registration U/s. 12A CIT not required to look into trust activities

CA Prarthana Jalan Hon’ble Allahabad HC has in the case of Commissioner Of Income Tax Varanasi v/s Varanasi Welfare Trust in  ITA No 227 of 2014 has held that While granting Registration U/S 12A Commissioner of Income Tax is not required to look into the activities of the trust. The Hon’ble High Court has observed as under:-

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  • Nov
  • 17
  • 2014

Reopening on mere possibility of revenue loss is based on presumption & is invalid

The assessee is a FUND and a resident of Denmark. Along with its return of income, in India, the assessee had submitted ‘Tax Residency Certificate’ issued by the Danish Authorities in order to claim the benefit of Article 14 of India-Denmark DTAA. From the plain reading of the ‘reasons recorded’, it is seen that the […]

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  • Nov
  • 17
  • 2014

Reference to DVO cannot be made if assessee has challenged the valuation by stamp authorities

First contention of the assessee is that the sale consideration cannot be taken more than the actual sale consideration shown in the transfer deed i.e. a sum of Rs.4 1.51 crores. The alternative contention is that if the sale consideration is taken as valuation done by the Stamp Valuation Authorities then there is a mistake […]

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  • Nov
  • 17
  • 2014

In case of conflict in judgment of non-jurisdictional High Courts, one in favour of assessee should be adopted

The assessee is a non-scheduled Co-operative Bank carrying on banking business in terms of a license issued by Reserve Bank of India (RBI), and is thus governed by Circulars of RBI relating to Prudential Norms, Income Recognition, Asset Classification, Provisioning and other related matters. In terms of such Prudential Norms of RBI, assessee did not […]

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  • Nov
  • 17
  • 2014

Section 195 – No TDS on reimbursement of expenses for supply of data

Briefly stated facts are that the assessee claimed deduction for Rs.6,88,12,554/- and Rs.23,78,781/- being amount payable to EYGS LLP and Ernst & Young LLP, UK respectively towards reimbursement of costs for providing access to system & management audit methodology updates, knowledge updates through web etc. assistance in development of common programs and policies, endeavoring to […]

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  • Nov
  • 16
  • 2014

Sham Transactions with object to reduce tax liability liable for Penalty

In the case in hand, from the facts, it was clearly established that the assessee had put a wrongful claim of depreciation and thereby had furnished inaccurate particulars of income for the purpose of concealment of real income, hence, the penalty proceedings were correctly initiated by the AO.

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  • Nov
  • 14
  • 2014

Sec 292BB would operate prospectively as it curtails the right of the assessee

CA Prarthana Jalan Hon’ble Hyderabad Bench has in the case of M/s. Ghanshyamdas Gems and Jewels v/s DCIT in  IT(SS)A No. 16/Hyd/2011  has held that Section 292BB  of the Income Tax Act, 1961 would operate prospectively as it curtails the right of the assessee. Assessee submitted that the CIT(A) erred in holding that the provisions of […]

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  • Nov
  • 13
  • 2014

Notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late

Hon’ble Bangalore ITAT has in the case of Shri G.N.Mohan Raju,v/s ITO in ITA No.242 & 243(Bang) 2013 has held that notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late. AO could not treat a return filed prior to issue of notice u/s 148 of the Act as a return filed by the assessee, pursuant to such notice unless and until assessee had given a direction or request on these lines.

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