Income Tax Judgment of SC, HC and ITAT

  • Jul
  • 31
  • 2014

Salman Khan Gets relief in Penalty case – No Penalty if two views possible

Salman Khan Vs. ACIT (ITAT Mumbai) Assessee (Salman Khan) in the present case is a leading film actor who derives income from profession of acting and advertisement assignments. The returns of income for both the years under consideration i.e assessment years 2003-04  & 2004-05 were filed by him on 28-11-2003 and 29-10-2004 declaring total income […]

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  • Jul
  • 29
  • 2014

Mumbai HC imposes penaltyon I-T department for frivolous litigation

The Revenue officers must realize that just like other powers a executive power conferred in them is in the nature of a Trust. They hold office as trustees of the public at large. They deal with public revenue and public money and that cannot be wasted in such frivolous litigation. We, therefore, dismiss these appeals with costs quantified at Rs.1,00,000/­ each.

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  • Jul
  • 29
  • 2014

Mere Retracted statement cannot form the basis of reopening

On careful consideration of above contention, we are of the view that there may be a substantive assessment without any protective assessment but there can not be any protective assessment/addition without a substantive assessment/addition, meaning thereby there has to be some substantive assessment/addition first which enables the AO to make a protective assessment/addition.

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  • Jul
  • 28
  • 2014

Mere Statement recorded during survey cannot be the sole basis for making addition

A survey proceedings was carried out in the middle of the accounting year (on 1.12.2006) in the case of AHS Joint Venture, the sister concerns of the assessee firm. During the course of survey there was no incriminating material nor undisclosed income found in the hands of the assessee or its sister concern. A statement […]

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  • Jul
  • 28
  • 2014

Agricultural receipts, duly shown in past & accepted by dept, cannot be added as cash credits

The assessee is an individual. The return of income was filed on 29.7.2009 declaring an income of Rs. 36,04,069/- and agricultural income of Rs. 10,25,000/-. The assessment was taken up for scrutiny by issuance of notice u/s 143(2) of the Act. In the course of scrutiny assessment, the assessee was asked to explain the source […]

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  • Jul
  • 28
  • 2014

Share Application Money – Primary burden is on AO to show that same is unexplained cash credit

Even if the reopening is sustained, the primary burden that income has escaped assessment is on the shoulder of the assessing officer and after discharging this burden only, the onus shifts to the shoulder of the assessee. We find that nothing has been brought on record by the assessing officer to substantiate his serious allegation […]

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  • Jul
  • 27
  • 2014

No disallowance of lawful expense for mere non-compliance with Company law provisions

Assessee entered into transactions of payment of job work charges to a related party, viz., M/s Razormed Inc. during the financial year relevant to assessment year under consideration without obtaining prior approval of the Central Government in accordance with the provisions of section 297 of the Companies Act, 1956.

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  • Jul
  • 27
  • 2014

Section 269SS/ 269T not applies to book entries not involving cash transactions

In the instant case, the transaction in question, was not cash transaction. It was merely book entries. The CIT(A) has called Remand Record from the AO, who vide report dated 05.01.1999, confirmed that the transaction in question, by mentioning that no cash was involved. There was only adjustment entries. When that it so, then there […]

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  • Jul
  • 27
  • 2014

Entering of agreement to sell amounts to Purchase U/s. 54 as it creates rights in favour of buyer – SC

In the instant case, the following three dates are not in dispute. The residential house was transferred by the appellants and the sale deed had been registered on 24th September, 2004. The sale deed had been executed in pursuance of an agreement to sell which had been executed on 27th December, 2002 and out of […]

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