Income Tax Judgment of SC, HC and ITAT

  • Sep
  • 19
  • 2014

Penalty under section 271(1)(c) leviable on Bogus gifts

Kamal Kant Jain v. CIT (Punjab & Haryana High Court), ITA No. 369 of 2013, Date of Decision- 14 July, 2014 The Tribunal while upholding the levy of penalty had concluded that the assessee had failed to substantiate that the gift received was genuine. The plea of the assessee that the gift was received due […]

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  • Sep
  • 19
  • 2014

ITAT explains how to serve Proper Notice by Post & affixtures

As per sub-section (1) of section 282, the notice is to be served on the person named therein either by post or as if it was a summons issued by Court under the Code of Civil Procedure, 1908 (V of 1908). The relevant provision for effecting of service by different modes are contained in rules 17, 19 and 20 of Order V of CPC. Rules 17, 19 and 20

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  • Sep
  • 17
  • 2014

B/F unabsorbed depreciation can be set off against Unexplained Income U/s. 68

ACIT Vs. M/s. Shree Raghupati Fibres Pvt. Ltd. (ITAT Ahmedabad), ITA. No. 256/Ahd/2011, Date of Order: 12.09.2014 In the instant case, the Assessing Officer observed that the addition of Rs 13,80,000/- was made u/s. 68 of the Income Tax Act which does not form part of any specific head of income and is also not […]

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  • Sep
  • 17
  • 2014

Reference u/s 142A is exclusive prerogative of AO

Hon’ble Hyderabad ITAT has in the case of Dr. G. Premalatha v/s DCIT has categorically held that the CIT(A) had no jurisdiction in appeal proceedings to call for a valuation report, which is the exclusive prerogative of the AO.

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  • Sep
  • 16
  • 2014

Supreme Court On Levy of Surcharge U/s 113 Proviso In Search Cases

The aforesaid discursive of ours also makes it obvious that the conclusion of the Division Bench in Suresh N. Gupta treating the proviso as clarificatory and giving it retrospective effect is not a correct conclusion. Said judgment is accordingly overruled.

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  • Sep
  • 14
  • 2014

Reopening of assessment Beyond a period of 4 years without Approval of Joint Commissioner not valid

Reassessment proceedings are bad in law in as much as the AO sought to reopen the assessment beyond a period of four years and not followed the procedures laid down in section 151(2) of the Act for issuing notice under section 148 of the Act.

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  • Sep
  • 14
  • 2014

In absence of Tax Advantage and Huge Loss , Penalty not leviable

CIT vs. M/s. Garware Chemicals Ltd. (Bombay High Court), Income-tax Appeal No. 916 of 2012 , dated 10/03/2014 Assessing   Officer   has   observed   that   the contentions  of  the  Assessee  are  considered,  but  found  not  acceptable. From the contentions, what has been deduced is that the particulars of income filed by the Assessee were not correct or to put it in the language  of the Act, the Assessee has filed inaccurate particulars of its income. The Assessing  Officer  has  observed  that  the  Assessee  has  not  stated  any reasonable cause for failure on its part to report its true and correct profit. The Assessing Officer has then perused the explanation given and found […]

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  • Sep
  • 14
  • 2014

Capital expenditure/ revenue expenditure – No reassessment in subsequent years – Reassessment quashed

DCIT v. India Infoline Insurance Services Pvt. Ltd. (ITAT Mumbai), ITA No. 5758/M/2011 dt. 21/7/2014, AY 2005-06 Assessee-Company,engaged in the business of life insurance,filed its return of income on 29/10/2005 declaring total income at Rs.3 1.19 lakhs. The return was processed u/s. 143(1) of the Act on 30/03/2007.Later on a notice u/s 147 of the […]

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  • Sep
  • 12
  • 2014

Reopening based on information received from Investigation Wing, without application of mind not sustainable

Reopening of assessement based on information received from Investigation Wing, without application of mind not sustainable – S. 148

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