Income Tax Judgment of SC, HC and ITAT

  • Feb
  • 28
  • 2015

Assessment Completed without issue of u/s. 143(2) is invalid

As per record, we find that there was no notice issued u/s. 143(2) of the I.T. Act which is very much essential for reassessment and it is a failure on the part of the AO for not complying with the procedure laid down in section 143(2) of the I.T. Act. If the notice is not issued to the assessee before completion of the assessment, then the reassessment is not sustainable in the eyes of law and deserve to be cancelled.

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  • Feb
  • 25
  • 2015

Furnishing of audit report is directory and not mandatory

Finding of the AO that in the absence of audit report, the enhanced claim is not maintainable over looks this factual position. It is undisputed that audit report for the enhanced claim had been furnished during the impugned 153A assessment proceedings along with Profit and Loss account and Balance sheet duly certified by the Accountant. No adverse observations have been made vis-à-vis the said audit report/ financial statement.

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  • Feb
  • 25
  • 2015

S. 68 No Addition if Assessee discharges initial onus casted on him

ITO vs.  Parth Mehrotra (ITAT Delhi), I.T.A. No. 3333/Del/2011, Date-18th February, 2015 Assessee had declared an income by filing its return. The said return was selected for scrutiny through CASS on the basis of AIR. Assessment u/s 144 was made, resulting in an addition of Rs. 28,50,000/- as the assessee was found to have failed […]

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  • Feb
  • 25
  • 2015

Section 10A exemption- Approvals given by Directors of STPI is valid

Assesee claimed deduction of Rs. 1.33 crores under Section 10A of the Act. On being called upon to explain about the eligibility of deduction, the assessee stated that it was entitled to deduction in view of fulfillment of all the requisite conditions as prescribed under Section 10A. The Assessing Officer held the assessee to be not qualifying for deduction under this section because the registration was granted by the Software Technology Park of India (STPI)

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  • Feb
  • 25
  • 2015

Death of Authorised representative not sufficient cause for delay in Appeal Filing

Madhu Dadha Vs. ACIT (2009) 317 ITR 458 (Mad)- In the present case, the appeal has been filed after a delay of 558 days. From the contents of the affidavit and submissions of the learned counsel for the assessee, it is clear that the assessee has not explained the delay for such a long period […]

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  • Feb
  • 25
  • 2015

ITAT raises serious questions on professional competence and work ethics of CA

M/s K.G.N.M.M.W. Educational research & Analysis Society Vs. ITO (ITAT Jaipur), ITA Nos. 402 & 403/JP/2012, Date of Pronouncement: 13/02/2015 Affidavit and cavalier conduct of CA in respect of delayed Filing of Clients Appeal – ITAT raises serious questions on professional competence and work ethics of CA   The learned counsel for the assessee contends that […]

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  • Feb
  • 24
  • 2015

CIT not justified in passing ex parte order without allowing proper opportunity of being heard

Smt. Maltidevi Birbal Singh Vs. ITO (ITAT Mumbai), ITA No. 2863/Mum/2010, Dated 30th March, 2011 Briefly stated facts of the case are that the assessee, an individual derives income from manufacture of wire & wire ropes. The return was filed declaring total income at ` 4,07,734/-. However, the assessment was completed at an income of […]

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  • Feb
  • 24
  • 2015

In respect of Shortage of stock during survey only profit element can be added to Income of the Assessee

ACIT Vs Surajbhan Agrawal (ITAT Indore), ITA No. 352/Ind/2013, Date of pronouncement- 26.8.2013 It was contended that the assessee accepted the undisclosed income to the tune of Rs. 20 lacs on account of shortage of gold ornaments and excess of stock of silver. The facts, in brief, are that a survey u/s 133A of the […]

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  • Feb
  • 24
  • 2015

Principle of law apparent is real onus is on the person who alleges that apparent is not real

It is settled principle of law apparent is real onus is on the person who alleges that apparent is not real. Once the assessee has submitted the evidence by way of bank account of JPC supporting his contention that the assessee has taken loan for the payment of labour payment incurred by it. In our opinion, onus is on the revenue to prove that the assessee has not taken the loan nor he has incurred the labour expenses by taking the loan or the assessee has utilized this fund for any other purposes.It is settled principle of law apparent is real onus is on the person who alleges that apparent is not real. Once the assessee has submitted the evidence by way of bank account of JPC supporting his contention that the assessee has taken loan for the payment of labour payment incurred by it. In our opinion, onus is on the revenue to prove that the assessee has not taken the loan nor he has incurred the labour expenses by taking the loan or the assessee has utilized this fund for any other purposes.

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  • Feb
  • 24
  • 2015

Income of Female Assessee cannot be added to Income of other family members/ concern merely based on her Statement

Smt. Meena Garg Vs  DCIT (ITAT Chandigarh), ITA Nos. 1165 to 1170/CHD/2013, Date of Pronouncement : 26.02.2014 In this case merely on the basis of statement recorded during the search where Smt. Meena Garg i.e the assessee has said that she was not running any business concern in the name of M/s Punjab Timber Trading […]

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