Income Tax Judgment of SC, HC and ITAT

  • May
  • 21
  • 2015

Does Tribunal have power to grant stay beyond period of 365 days prescribed in Act?

Reliance in this regard can be placed on the decision of Hon’ble Delhi High Court in case of Pepsi Foods Private Limited vs. ACIT [W.P.(C) 1334/2015] pronounced on 19-05-2015 wherein the petitioner has challenged the constitutional validity of Section 254(2A) of the Income Tax Act, 1961 (here-in-after referred to as ‘the Act’). The said section […]

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  • May
  • 18
  • 2015

Assessee can request condonation of delay in filing of return if reason for delay was not attributable to him

The High Court held that the assessee was bound to get its accounts audited under section 64 of the Kerala Co-operative Societies Act, 1969, and the delay in audit by the auditor appointed under the Act was not attributable to the assessee. Besides showing sufficient cause for delay in filing the return for refund, the assessee had also established genuine hardship inasmuch as it had suffered losses in the five succeeding years.

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  • May
  • 18
  • 2015

Mere family connection cannot be a ground for transfer of cases

Yash Shah Transfer of assessee cases from Kolkata to Patna not for the purpose of co-ordinated and effective investigation but for centralization not valid. Relevant Case – Dillip Kumar Agarwal v. CIT (Calcutta High Court), Appeal No. WP No. 200 of 2009, Date : 17th March, 2009, Euivalent Citation- (2009) 314 ITR 291 (Cal.)

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  • May
  • 18
  • 2015

Revenue cannot have access to data in laptops pertaining to third parties unconnected with person searched

The petitioner was a firm of auditors. During the course of search and seizure operations conducted against EMAAR, the laptop computers of two employees of the petitioner, who were conducting an audit of EMAAR, were seized by the Deputy Director.

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  • May
  • 17
  • 2015

Registration granted U/s. 12AA(3) cannot be withdrawn on mere presumptions and surmises

Section 12AA, which lays down the procedure for registration, does not speak anywhere that the CIT, while considering the application for registration, shall also  see  that  the  income  derived  by  the  trust  or  the institution  is  either  not  being  spent  for  charitable purpose  or  such  institution  is  earning  profit. 

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  • May
  • 17
  • 2015

Statement recorded u/s 133A during survey, cannot be taken as evidence to make addition to income

The statement recorded by an officer on oath will be used as evidence in any proceeding, whereas statement recorded u/s. 133A has not given any evidentiary value because it was recorded by the authority, which has not been empowered to administer the oath to the assessee and take sworn statement.

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  • May
  • 17
  • 2015

SC on Principles for Formation of opinion for issuing warrant of authorization U/s. 132

The issues that arise in the present appeal lie within a short circumference. As the warrant of authorization under Section 132, which is required to be founded on a reasonable belief of the authorized official regarding the existence of the conditions precedent to the exercise of the power to issue the same

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  • May
  • 15
  • 2015

Addition on account of ‘notional interest’ on loan given by assessee not justified

In the absence of any specific provision under which the so called notional income on advances, could be brought to tax, we do not see as to how the impugned orders passed by the Commissioner of Income Tax can be sustained.

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  • May
  • 15
  • 2015

Addition for notional interest in absence of actual receipt not justified

There is no finding of fact to the effect that actually the loan had been granted to the managing director or any other person on interest, or that interest had actually been collected and the collection of the interest was not reflected in the accounts. The finding of the Income Tax Officer is that the […]

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  • May
  • 15
  • 2015

In absence or Provisions in Income Tax addition for Notional Interest not justified

The case of the assessee is that they did not charge interest on that advance and in consideration of the same the assessee got the premises it a very low rent of rupees two per sq feet in a prime locality of Calcutta. The Assessing Officer added a notional interest of 18 per cent on the advance amount and added the income as the amount of interest.

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