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CA Girish Gupta

Amount received from client by Solicitor in capacity of principal and agent is not income

November 30, 2015 731 Views 0 comment Print

In the Case of ACIT vs Sri Pawan Kumar Jhunjhunwala, ITAT Kolkata held that solicitor is the agent of the client. The client makes over the money to the solicitor for some work being done by the solicitor as his agent.

Aggregation of income to be done before applying section 73

November 30, 2015 1584 Views 0 comment Print

In the case of ITO vs Snowtex Investment Ltd, the Kolkata Tribunal held that the claim of the assesse for set-off of loss from share dealing should be allowed from the profits from F&O in share transactions, the character of the income being the same and before application of the Explanation

Commitment charges paid towards foreclosure of business agreement are allowable u/s 37

November 26, 2015 2304 Views 0 comment Print

In the case of D.C.I.T. vs Autoline Industries Ltd, Pune Tribunal held that foreign exchange cover taken by the assessee from DBS Bank was in order to prevent itself from future currency rate fluctuations. Later, it had to close its agreement with DBS Bank in view of the offer made by the principal lender i.e. Citi Bank.

Expenditure on research is revenue nature if no new product develops, irrespective of treatment in books

November 26, 2015 3094 Views 0 comment Print

In the case of D.C.I.T. vs Autoline Industries Ltd, Pune Tribunal on the issue whether a particular expenditure is of nature of capital or revenue held that the law on the issue is that the accounting treatment given by the assessee in its books of account is not determinative whether or not the expenditure is allowable as a deduction.

Tribunal Power to grant stay is confined only to appellate order

October 31, 2015 1952 Views 0 comment Print

The Hon’ble (P&H) High Court in the case of Pr.C.I.T. vs ITAT Delhi Bench, New Delhi and anothers while dealing with the scope of power of Tribunal for grant of stay against the prosecution proceedings held that once

Re-opening due to mere audit objection not valid

October 11, 2015 1129 Views 0 comment Print

Relying on judgment of jurisdictional High Court in the case of Raajratna Metal Industries Ltd. vs. ACIT, [2014] 49 taxmann.com 15 (Gujarat) ITAT Ahemdabad held in the case of DCIT vs. Naroda Enviro Project Ltd. that the reopening of assessment solely on the ground of audit objection is not valid.

No Penalty on additions sustained on alleged Bogus Purchase for mere non-production of parties

October 11, 2015 10745 Views 0 comment Print

The ITAT Ahmedabad in the case of M/s Ruchi Developers vs. ITO, where Assessee has failed to produce creditor parties in respect of alleged Bogus Purchases while he submitted all other details and evidences and additions been made,

No Penalty u/s 271(1)(c) if advance tax paid on undisclosed income

October 11, 2015 1225 Views 0 comment Print

In the case of M/s Kantilal Siyaram vs. ACIT (ITAT Ahmedabad), the assessee has claimed that advance tax was paid, which was not recorded in the original return on the income which was remained to be disclosed in original return.

Construction Business- No Revenue recognition if substantial risk & reward not transferred to buyer

October 11, 2015 1907 Views 0 comment Print

ITAT Ahmedabad held in case of ITO vs. M/s Tirupati Enterprises held that the revenue has to be recognized only at the time when substantial risk and reward are transferred to the buyer by the seller. Since the construction was incomplete, the property was not ready for sale.

No Rejection of books of accounts in absence of any material defect

October 11, 2015 627 Views 0 comment Print

In the case of ACIT vs. Smarneev Fashions Pvt. Ltd, ITAT Ahmedabad held that merely because there is a fall in gross profit or there is a NIL closing stock at the end of the year the books of accounts cannot be rejected.

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