Analysis of HC, SC and ITAT Judgment on Taxation and Corporate Law

  • Apr
  • 20

Assembling of AC, DVD, Microwave is ‘manufacture’ & income from such activities eligible for deduction U/s. 80IB & 80IC

In this case, assessee was carrying on business of conversion of Jumbo Rolls of photographic films into small flats and rolls in desired sizes. It claimed deduction under secs. 80-HH and 80-I as well as investment allowance under sec. 32AB. The controversy arose whether conversion of jumbo rolls into small sizes amounts to manufacture or [...]

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  • Apr
  • 20

S. 14A not be invocable to disallow set off of carried forward losses in case of co-operative society

The Assessing Officer has observed that the bank has claimed the set off of carried forward losses of earlier years of Rs. 2,39,37,185/-. In the opinion of the Assessing Officer, provisions of section 14A are applicable. The Assessing Officer has observed that up to A.Y. 2006-07, income of cooperative bank was wholly exempt u/s.80P and [...]

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  • Apr
  • 20

S. 12A registration denied to appellant on failure to prove that its independent unit with own bye-laws and regulations

The assessee has explained before us the hierarchy of Sacred Heart Congregation viz., Generalate, Province, Region and Convents. There is no dispute that the applicant herein is a Convent.  It was further submitted that the constitution (meaning ‘bye laws’) is the same for all the four hierarchies stated above. It was further submitted that Chapter [...]

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  • Apr
  • 20

Interest earned by Co-operative Bank on deposits of non-SLR funds is eligible for deduction U/s. 80-P(2)(a)(i)

The question as to whether the business is derived from or attributable to SLR or non-SLR funds would not make any difference for the purposes of qualifying the interest earned by the cooperative bank under Section 80P (2) (a) (i) as the deposits of surplus idle money available from working capital, including reserves, excess collection [...]

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  • Apr
  • 20

Revenue may take steps to implement Order passed by CIT(A) despite non expiry of time to file Appeal with ITAT

The Assessing Officer framed the assessment in respect of the assessment year 2009-2010 on 30.12.2011. The appeal filed by the assessee was dismissed by the Commissioner of Income Tax (Appeals) on 16.1.2013. The order of the same was received by the assessee on 22.1.2013. On 24.1.2013, the petitioner made a request for stay of demand [...]

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  • Apr
  • 19

If effective management of company situated in Netherlands it can claim benefit under India – Netherlands treaty

From the material documents allowed to be produced, the assessee could satisfy the Commissioner (Appeals) that the place of effective management of its enterprises was situated at Netherlands and thus, the requirement of condition in Article 8A of DTA agreement was met with. The Tribunal has rightly confirmed the decision of the Appellate Commissioner holding [...]

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  • Apr
  • 19

Reopening solely on basis of objection of audit party without application of mind by AO is not valid

As is more than apparent, assessment was completed on scrutiny. In post assessment period, audit party raised the objection and Assessing Officer had strongly objected to such objections by communicating internally as mentioned hereinabove. In such background, reasons for reopening if are noted, they are almost identically worded as that of audit report. No material [...]

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  • Apr
  • 18

S. 80-IA(5) – Absorbed losses pre ‘initial assessment year’ need not be set off

From a plain reading of the sub-section (5) of section 801A, it can be gathered that it is a non­ obstante clause which overrides the other provisions of the Act and it is for the purpose of determining the quantum of deduction under section 801A, for the assessment year immediate(y succeeding the initia( assessment year [...]

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  • Apr
  • 18

RTI -Income-tax department return scrutiny guidelines should be public – HC

The expression, economic interest, thus takes within its sweep matters which operate at a macro level and not at an individual, i.e., micro level. In my view, by no stretch of imagination can scrutiny guidelines impact economic interest of the country. These guidelines are issued to prevent harassment to assessees generally. 

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  • Apr
  • 17

Tribunal order giving effect to HC opinion cannot amount to review of its earlier order

When the order was passed by the Tribunal on 09.10.2000, the Revenue had only remedy of seeking reference in terms of the then Section 35-G of the Act from the Tribunal. If the Tribunal does not refer the questions of law for the opinion of this Court, the aggrieved party could invoke jurisdiction of this [...]

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