"18 October 2009" Archive

Section 54F exemption cannot be availed if there is a house in existence on the date of transfer

ACIT Vs T. N. Gopal (ITAT Chennai)

I have heard the rival submissions in the light of material placed before me and the precedents relied upon. The assessee got share in the house property, as per the WILL of his father He became the joint owner of the property along with his brother. After becoming the joint owner of the said property the assessee sold shares for the purp...

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No disallowance u/s 43B if deduction not been claimed by the Assessee in respect of sum payable by way of tax or duty

Dynavision Ltd. Vs ACIT (ITAT Chennai)

Sec.43B can only be invoked when the assessee claims deduction for any sum payable by way of tax or duty, under any law for the time being in force, and, as such, where no such deduction is claimed nor charged made to the profit and loss account, there is no question of disallowing the amount. Having regard to the facts, the Assessing Off...

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Satisfaction of the AO and determination of Expenditure in relation to income which is not includible in total income

PTC India Ltd. Vs. DCIT (ITAT Delhi)

A perusal of section 14A (2)(supra), evinces that the amount of expenditure incurred in relation to income not includible in the total income shall be determined by the AO if the AO is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income not includible in the total income. ...

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Applicability of TDS on payment made to legal advisors at Hongkong

DIT (Int'l Taxation) Vs Tata Iron & Steel Co. Ltd. (ITAT Mumbai)

Admittedly there was no DTAA with Hongkong for the relevant year. As such we will restrict ourselves in examining the provisions of section 9(l)(vii) in order to ascertain the deductibility or otherwise of tax at source from the payment so made to the firm of legal advisors at Hongkong....

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Levy of penalty under section 158BFA (2) on undisclosed income returned for non-payment of tax thereon

DCIT Vs Heera Constructions Co. (P.) Ltd. (ITAT Cochin)

Provided further that the provisions of the preceding proviso shall not apply where the undisclosed income determined by the Assessing Officer is in excess of the income show in the return and in such cases the penalty shall be imposed on that portion of undisclosed income determined which is in excess of the amount of undisclosed income ...

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Undisclosed income of the partnership firm can not be assessed in the hand of the partners

ACIT Vs Shri K. T. Joseph (ITAT Cochin)

Whether, in the facts and circumstances of the case, the CIT(Appeals) is justified in holding that no addition can be made in the hands of the assessee towards undisclosed income from the liquor business carried on by the firms M/s. Malabar Associates....

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Leviability of Penalty under section 271D if Assessee have reasonable cause for borrowing in violation of section 269SS

Jitu Builders Pvt. Ltd. Vs. ACIT (ITAT Ahmedabad)

The facts leading up to the levy of penalty have been stated in the dissenting orders and there is no dispute regarding their accuracy. The only question is whether on these facts there was reasonable cause within the meaning of sec.273B preventing the assessee from accepting the sum of Rs. 15,00,000 from N.K. Chemist by account payee che...

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If assessee has no enforceable right to receive interest then there can not be accrual of income

ACIT Vs Travancore Titanium Products Ltd. (ITAT cochin)

I entirely agree that unless and until the terms and conditions of advance are known and agreed between the parties or through Government of Kerala, assessee will not acquire any right to receive interest on the advanced loan and no income would accrue by way of interest. This is well settled position....

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Expression Marketing under section 80P(2)(a)(iii) includes processing

Budhewal Co-op. Sugar Mills Ltd. Vs CIT (Punjab & Haryana High Court - Full Bench)

According to plain reading of Section 80P(2)(a)(iii) , if a Cooperative Society earns income from marketing of the agricultural produce grown by its members, the deduction in respect of the profits and gains of business which are attributable to that marketing activity would be available under this provision. The main point that needs del...

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Change in method for Valuation of closing stock should be bona fide

Triveni Engineering & Industries Ltd. Vs. CIT (Delhi High Court)

As regards the issue raised with regard to rejecting the method in the change of valuation of closing stock, we find that the finding arrived at by the three authorities below that the change in the valuation of closing stock was not bona fide is a pure finding of fact and no question of law arises much less a substantial question of law...

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