Income Tax Judgment of SC, HC and ITAT

  • Jul
  • 26
  • 2014

Addition cannot be made only on the basis of a surrender simplictor

CA Prarthana Jalan The Honble Agra ITAT has in the case of Ram Prakash has held that “Addition cannot be made only on  the basis of a surrender simplictor “. Brief Facts of the case are that the assessee is engaged in the business of foodgrains. During the course of the assessment proceedings, the Assessing […]

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  • Jul
  • 25
  • 2014

Sec 153A cannot be used to re-agitate concluded assessment in absence of any incriminating material

Sec 153A cannot be used to re-agitate concluded assessment in the absence of any incriminating material. Hon’ble Agra ITAT Bench has in the order of DCIT V/S Kalyani Chaturvedi has held that assessments that have attained finality don’t abate at the time of search and they cannot be done de-novo u/s 153A of the Income Tax Act, 1961 in the absence of any fresh incriminating material found during the course of search by observing as under :-

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  • Jul
  • 23
  • 2014

Deduction of Depreciation as well of Capital Expenditure in Case of Trusts not amounts to double deduction

Hon’ble ITAT Delhi has held in the case of ITO(E) Vs. S.D.College Society (Lahore) that  where the capital expenditure has been treated to have been applied for the object of the trust, allowance of deduction on account of depreciation will not amount to double deduction?

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  • Jul
  • 23
  • 2014

Mere confirmation of disallowance by high court not sufficient to impose Penalty U/s. 271(1)(c)

Having heard Mr Ahuja, learned counsel appearing on behalf of the Appellant, we find that this Appeal cannot be entertained as it does not raise any substantial question of law. The imposition of penalty was found not to be justified and the Appeal was allowed. As a proof that the penalty was debatable and arguable issue, the

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  • Jul
  • 23
  • 2014

Rebate of STT paid u/s 88E available against tax calculated u/s 115JB

Assessing Officer has computed the taxable income of the assessee company under the normal provisions of the Act as well as under the special provisions of section 115JB of the Act. While computing the book profit u/s 115 JB, the Assessing Officer has not allowed the rebate on account of STT u/s 88E of the […]

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  • Jul
  • 21
  • 2014

CPC Charges 60% Tax on LTCG & not rectified, ITAT orders rectification

First of all it is to be mentioned that the rate of tax at what rate long term capital gains is to be charged, the assessee has declared long term capital gain and charged tax on the same at 20% as is evident from the acknowledgment of return filed before us. Even the endorsement issued […]

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  • Jul
  • 21
  • 2014

Expenditure on education of director is personal expenses and not allowable

 Cousel fo the Assessee submits that , the ITAT had erred in confirming the disallowance of expenditure on remuneration and training of a working Director of the Appellant-Assessee that was incurred legitimately for the efficient management and conduct of the Appellant-Assessee’s business. He submitted that the expenditure was not only legitimate but had a direct […]

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  • Jul
  • 21
  • 2014

Even if section 201 do not prescribe any limitation period, proceedings must be completed within a reasonable period

Though Section 201 does not prescribe any limitation period for the Assessee being declared as an Assessee in Default yet the Revenue will have to exercise the powers in that regard within a reasonable time.

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  • Jul
  • 21
  • 2014

Notice U/s. 148 notice and order on objections cannot be challenged by Writ Petition

The power of the assessing Officer under Section 147 of the Act is not in dispute. A challenge made to an order passed on the objections of the assessee would in effect is a challenge made to a notice under Section 148 of the Act. Such an order passed by the assessing officer is only at the stage of process of determination and not a determination by itself. The process of assessment is not required to be challenged before Court of law, as it is a still born child.

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