Income Tax Judgment of SC, HC and ITAT

  • Apr
  • 15
  • 2015

Sec 50C(2) Mandates reference to DVO for ascertaining fair market value of property

Hon’ble ITAT Ahemdabad in the case of Nikunjkumar H.Jariwala v/s ITO in I.T.A. No. 2404/Ahd/2011 vide order dated 19/03/2015 has held that as per the mandate provisions of section 50C(2) of the Act, the AO was not justified in adopting the value of the property as adopted by the “stamp valuation authority” without referring to the DVO for […]

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  • Apr
  • 11
  • 2015

Calculation of Average Investment U/s 14A r.w rule 8D only Tax Free Investment to be Considered

ABC India Ltd. Vs. ACIT (Delhi High Court), ITA 615/2014, Decided on 24th March, 2015  For the assessment year 2008-09 the assessee  had reported a tax exempt income to the tune of  Rs. 18,26,360/- amongst other heads of income. The AO added back  Rs. 19,96,242/- under Section 14A. While doing so, the AO applied Rule […]

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  • Apr
  • 05
  • 2015

Amounts already paid without TDS cannot be disallowed- Merilyn Shipping followed

Jitendra Mansukhlal Shah vs. DCIT (ITAT Mumbai), ITA NO.2293/MUM/2013, Date of pronouncement : 04/03/2015 Contention of the Assessee- Provision of Sec. 40(a)(ia) shall apply only in respect of the amounts payable at the end of the year and shall not apply on the amounts actually paid by the appellant during the year.

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  • Apr
  • 05
  • 2015

Section 40(a)(ia) not attracted in respect of payment already made by the end of previous year

M/s. Vivil Exports P. Ltd.Vs. ITO (ITAT Mumbai), ITA No.509/Mum/2011, Date of Pronouncement: 26.02.2014 The following disallowances were made by the AO by invoking  provisions of section 40(a)(ia) of the Act: – 1 Disallowance on account of transportation charges  paid to M/s. Lalji Mulji – Rs. 1 ,59,386/- 2 Disallowance on account of export freight […]

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  • Apr
  • 05
  • 2015

s. 40(a)(ia) Disallowance has to be made irrespective the fact that whether payment is made during the year or not

ITO vs. Pratibhuti Viniyog Ltd. (ITAT Mumbai), ITA No.1689/Mum/2011, Date of Order – 22.08.2014 In this case ITAT Mumbai  distinguished the Allahabad High Court’s ruling in the case of CIT v. Vector Shipping Services (P) Ltd. (ITA No.122 of 2013) and held that the issue of ‘paid and payable’ was not subject of reference before the […]

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  • Apr
  • 05
  • 2015

Penalty U/s. 271(1)(c) cannot be imposed for failure to deduct TDS

It is not the case of the Revenue that the assessee had not incurred the expenditure claimed or that the claim of expenditure was bogus or incorrect. The disallowance of expenditure was attracted due to non-deduction of TDS and it cannot be said to be a case of concealment of income or furnishing of inaccurate particulars of income.

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  • Apr
  • 04
  • 2015

Burden of proof lies on revenue that assessee stated a lesser amount in return to evade tax

Section 143 (1A) can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden of proving that the assessee has so attempted to evade tax is on the […]

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  • Apr
  • 03
  • 2015

Penalty u/s 271(1)(c) not justified for unsustainable claim which was fully disclosed

Hon’ble High Court held that making of an incorrect claim would not tantamount to furnishing inaccurate particulars of income when Assessee has made full disclosure of relevant Facts and of Claim Made as held by Hon’ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt. Ltd. 322 ITR 158.

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  • Apr
  • 02
  • 2015

Whether provisions of Section 206AA overrides provisions of Section 90(2) of Income-tax Act, 1961

The assessee had made payments to non-residents on account of interest, royalties and fees for technical services and the same were subject to withholding under Section 195 of the Act. The assessee in accordance with provisions of Section 90(2) deducted tax on such payments as per the beneficial rates prescribed in the DTAA with respective countries.

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  • Apr
  • 02
  • 2015

Addition for Bogus Purchases based on mere Assumptions not justified

Further, it is not the case of the assessing officer that the assessee has indulged in accounting of bogus purchases. When the assessee submitted that he could not have effected the sales without making corresponding purchases, the AO has taken the view that the assessee could have effected purchases in the grey market, which conclusion is, in fact, not supported by any material.

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