Income Tax Judgment of SC, HC and ITAT

  • Oct
  • 30
  • 2014

No disallowance for non-payment of TDS can be made if payee has paid tax thereon

Insertion of the second proviso to section 40(a)(ia) of the Act should be read retrospectively from 1/4/2005 and not prospectively from 1/4/2013. In this view of the matter, the provisions of section 40(a)(ia) of the Act is not attracted to the payments made by the assessee to Shri Uday Kumar Shetty amounting to Rs.1,53,78,795/- since the object of introduction of section 40(a)(ia) is achieved for the reason that the payee/recipient has accounted for, declared and offered for taxation the payments received from the assessee in his hands.

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  • Oct
  • 30
  • 2014

S. 148 Reopening based on re-appreciation of same material on record not valid

In the present case also, there exist no grounds for re opening the assessment after the expiry of 4 years from the relevant assessment year. The notice under section 148 of the said Act is based on re-appreciation of the same material on record. The respondent has not specifically indicated as to which material facts were not disclosed by the petitioner/ assessee in the course of the assessment proceedings under the said Act.

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  • Oct
  • 27
  • 2014

Loss from a Business Activity cannot be disallowed for mere non mention of that Activity in Form 3CD

Mere non mentioning of all business carried on by the assessee in Form 3CD may not lead the A.O., forming an opinion that the dealing in shares was not amounting to business activity.

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  • Oct
  • 26
  • 2014

Sec. 194A TDS not deductible on Hundi discount as it is not interest

During the course of the scrutiny the assessment proceedings the AO noticed that under the Head ‘Finance Expenses’ the assessee has debited an amount of Rs.91,30,250/- on account of discount on Hundi. The assessee was asked whether tax has been deducted at source u/s 194A of the Act. The assessee replied that provision of section […]

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  • Oct
  • 26
  • 2014

In case of disclosure of material facts of during original assessment proceeding, AO cannot issue re-assessment notice u/s 148 of the Act to find nature of same

  It is a settled position in law that for reassessment proceedings beyond the period of four years from the end of the relevant assessment year, it is an essential condition that the income chargeable to tax which has allegedly escaped assessment must be occasioned, inter alia, by reason of the failure on the part […]

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  • Oct
  • 26
  • 2014

S. 80IC Assembling of Tools & Machinery for final product is equal to manufacturing process

The respondent-assessee was engaged in the business of manufacture of health care and surgical items and in the returns filed for Assessment Years 2006-07, 2008-09 and 2009-10 had declared taxable income of Rs.26,25,230/-, Rs.94,90,363/- and Rs.32,18,350/- respectively. The deduction claimed under Section 80-IC of the Act was to the tune of Rs.42,90,162/-, Rs.35,69,594/- and Rs.2,46,13,965/- […]

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  • Oct
  • 25
  • 2014

Expenses incurred between the dates of commencement of business to setting up of business are allowable

Some of the relevant facts are, the assessee company was incorporated on September 19, 2007 under the Companies Act, 1956, to carry on trading activities which primarily included wholesale trading of all kinds of consumer goods durables, articles and products. The year 2008-09 was the first year of assessment. The assessee company filed an E-Return […]

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  • Oct
  • 24
  • 2014

S. 68 Addition based on mere report of Investigation Wing not sustainable

The only issue here is the addition of Rs.60 lacs made by the Assessing Officer as unexplained credit on account of the share application money. On going through the facts of the case, we notice that assessee has filed the relevant details which it could have filed in support of its contention of having received […]

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  • Oct
  • 24
  • 2014

AO can make adjustment to profit if books are not in accordance with established accounting principles

The assessee had contended that the Assessing officer was not entitled to make adjustments to book profit shown in the audited The question that had arisen was whether the Assessing officer was entitled to disturb the net profit shown by the assessee in the profit and loss account prepared as per the Companies Act, 1956. […]

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  • Oct
  • 24
  • 2014

Share broker business commences on the date on which assessee filed application for registration with NSE

The company was incorporated on 24-11-2004 under the Indian Companies Act with the authorized capital of Rs. 2,00,00,000/- being minimum capital for the company obtaining membership of stock broker. As per the object clause of memorandum of association of the assessee, the main object of the assessee was to carry on the business of stock […]

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