Income Tax Judgment of SC, HC and ITAT

  • Oct
  • 21
  • 2014

Penalty u/s 271(1)(c) cannot be levied for mere non acceptance of explanation furnished by the assessee

Issue -During the course of search certain valuables including jewellery was found and the assessee has filed detailed explanation regarding the source of acquisition of jewellery. The assessee has explained that out of the jewellery found, some part belongs to the wife of the assessee, and some part thereof was gifted by the mother of […]

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  • Oct
  • 20
  • 2014

Validity of order u/s 263 on a issue on a issue on which CIT (A) has already decided in favour of Assessee

Ld. Commissioner of Income  Tax in his notice u/s 263 dated 18.3.2014 stated that prima facie deduction claimed u/s 80IC of the Act by the assessee is not justifiable on the following grounds :- Assessee is assembling and trading LCDs and it is not carrying on manufacturing of goods. The unit of the assessee is […]

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  • Oct
  • 19
  • 2014

Interest Income of Co-Operative Bank on deposits with Co-operative Bank not eligible for Deductoion U/s. 80P

In the present case, we find that the assessee has earned interest income on fixed deposits made by the assessee with sub-treasury, Meenachili, Kadappattoor and SBI Pala totaling Rs. 20,21,909/- and the interest income earned on the surplus funds of the assessee cannot be considered as business income so as to be entitled for deduction […]

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  • Oct
  • 16
  • 2014

Books of Accounts cannot be rejeced on mere fall in G.P Ratio

We have found that the G.P. rate in this year has been on lower side. However, the decrease in G.P. rate stands explained by the undeniable reasons that there is heavy increase in purchase price, freight cost and export cost. The books of accounts were lost and assessee has filed an FIR. The assessee has produced particulars of blocks-purchased and purchase bills were made available vide letter dated 05.12.2005.

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  • Oct
  • 15
  • 2014

Omission of notice u/s 143(2) of the Act is not merely a procedural irregularity

Prarthana Jalan Hon’ble Jodhpur ITAT has in the case of ITO V/s Shri Bhuvanesh Maheshwari has held that Omission of notice u/s 143(2) of the Act  is not merely a procedural irregularity and it is not curable. Facts of the case in brief are that the assessee filed his return of income belatedly on 26/03/2010 […]

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  • Oct
  • 12
  • 2014

TDS deductible on Excess amount paid on Cacellation of Flat Purchase Agreement

In the instant case, the amounts were paid in respect of an obligation in respect of purchase of flat through agreement, therefore, no fault can be found on the part of the AO for treating these charges as interest and liable for TDS u/s 194A of the Act.

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  • Oct
  • 12
  • 2014

TP adjustment cannot be made on issue of shares at a price lower than ALP or FMV

Land Mark Judgment by Hon’ble Bombay High Court in case of Vodafone India Services Private Limited Vodafone India Services Pvt. Ltd vs. UOI (WRIT PETITION NO.871 OF 2014) (Bombay High Court) dated 10.10.2014 In the instant case, the assesse has issued shares to its holding company at premium (INR 8591) amounting to INR 246.38 crores. The […]

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  • Oct
  • 11
  • 2014

Section 269SS not violated in accepting share application money or deposit in current account in cash

CA Prarthana Jalan Hon’ble Chandigarh bench has in the case of M/s Eqbal Inn & Hotels Ltd.  has held that Share Application Money or deposit in the current account cannot be included in the definition of deposit so as to trigger provisions of sec 269SS of the Income Tax Act,1961. Brief facts of the case […]

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  • Oct
  • 09
  • 2014

A.O Cannot act as a reviewing authorithy u/s 147 of Income Tax Act,1961

The Assessing Officer has though power to re–assess but no power to review and if the concept of change of opinion is removed, then in the garb of the re–assessment, review of earlier orders would take place. The change of opinion is in–built test to check the abuse of power by the Assessing Officer.

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  • Oct
  • 08
  • 2014

HC set aside order rejecting Stay of demand in high-pitched assessments

we feel that it would be appropriate if the ACIT reconsiders the application of the petitioner for stay in the light of the observations contained in the said decision [Soul v. DCIT (supra)]. This is so because according to the petitioner the assessment is a high pitched one inasmuch as it is approximately 17 times of the returned income.

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