revenue authorities

We have heard both the sides in detail. Thrust given by the C1T(A) on the mens rea reflected in the conduct of the assessee does not survive with usual force, since the judgment of the Hon'ble Supreme Court in the case of Union of India & Others Vs. Dharmendra Textiles Processors & Ors., 306 1TR 277. The Supreme Court has held in the said case that willful concealment is not essential for attracting civil liability of penalty under Section 271(1 )(c) of the Act. The othe.. Full Article

It depends on the facts of each transactions, whether the letting out of the property is incidental and subservient dominant object of selling the property or not. If the property has merely been let out b> the assessee then the same cannot be held to be exploitation of the property for commercial purpose in view of the decision of the Hon'ble Shambhu Investment (supra). We. therefore, restore this issue to the file of the AC) for fresh consideration in the light of afor.. Full Article

The Delhi Bench of the Income - tax Appellate Tribunal (Delhi Tribunal), in the case of Vertex Customer Services (India) Pvt. Ltd. (the taxpayer) held that exclusion of provision of doubtful debts from the operating expenses being a debatable issue and considering full disclosure made by the taxpayer; the taxpayer could not be held liable for penalty. Full Article

Central Board of Direct Taxes (CBDT), the apex body that administers corporate and personal income-tax, expects a 10-15% year-on-year increase in collections by December 15, the last date for paying the third installment of advance tax, according to CBDT chairman SSN Moorthy. Mr Moorthy, who was in Mumbai on Monday for a review meeting of the department, said the trend so far suggested a high rate of increase in tax collection by December 15. Full Article

The taxpayer was a company incorporated under Hong Kong laws. It filed its return of income declaring total income of INR196 million. AO noticed that the taxpayer had not offered for tax the amount received toward reimbursement of expenses, which included custom duty and accordingly the income was assessed at INR197.2 million. Aggrieved by the same, the taxpayer filed an appeal before the CIT(A). Full Article

The Supreme Court (SC) last week set aside the judgement of the division bench of the Madras high court in a case raising the question of the power of the Income Tax authorities to ‘rectify mistakes’ in assessment under Section 154 of the Income Tax Act. Full Article

Treatment of a revised return which is defective A defective return filed under any of the provisions of the Income-tax Act, 1961 can be rectified; it is not that only the return filed under section 139(1) can be rectified; the discretion given in section 139(9) is not to treat the return as invalid without giving an opportunity to the assessee to remove the defect. Full Article

SUMMARY OF CASE LAW The ships include barges; the ships/barges owned by the third party when operated in the assessee’s business, the assessee is entitled to the deduction under section 33AC. Full Article