"01 November 2009" Archive

False claim in return of Income would be treated as case of concealment of Income or of furnishing inaccurate particulars of Income

CIT Vs Escorts Finance Ltd. (Delhi High Court)

It is repeatedly held by the Courts that the penalty on the ground of concealment of particulars or non-disclosure of full particulars can be levied only when in the accounts/return an item has been suppressed dishonestly or the item has been claimed fraudulently or a bogus claim has been made. When the facts are clearly disclosed in the...

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Reopening under section 147 by the AO on the same set of facts, without there being any additional information, can only be considered as change of opinion

Fluroscent Fixtures Pvt. Ltd. Vs ITO (ITAT Mumbai 'F' Bench)

As can be seen from the above the adjustment made by the assessee is according to the provisions of the Act. Since both the industrial galas fall within the block the WDV is increased by the actual cost of the asset falling within the block and reduced by the amount payable in respect of the asset sold. Accordingly we do not find any mist...

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Where fair market value of the capital asset under transfer is less than the valuation as per Stamp Value Act

Mohd Shoib Vs DCIT (ITAT Lucknow)

Where fair market value of the capital asset under transfer is less than the valuation as per SVA and such valuation as per SVA becomes final under Stamp Duty Act then the assessee is left with no choice and has to pay tax on the notional sale consideration on the valuation as per SVA....

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Jurisdiction of AO to proceed with assessment under section 147 of IT Act, 1961

Ms. Rainee Singh Vs ITO (ITAT Delhi)

In the present case, the notice u/s. 148 was issued on 28.03.2003, pertaining to the A.V. 1996-97. Section 147 authorizes and permit the Assessing Officers to assess or re-assess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. ...

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Revised return which is a defective return filed under any of the provisions of the IT Act can be rectified

Sanghi Textiles Ltd. Vs ACIT (ITAT Hyderabad)

The first issue is taken up first for consideration. Section 139(5) permits the assessee to file a revised return on discovery of an omission or any wrong statement in the original return. Of course, only such return can be revised which has been filed under section 139 (1) or which has been filed pursuant to notice under section 142 (1)....

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True character of receipt in the hands of assessee can not be judged by utilization thereof

ACIT Vs. Sanghi Textiles Ltd. (ITAT Hyderabad)

We have duly considered the rival contentions and the material on record. The crux of the matter is to determine the true character of the receipt in the hands of the assessee and not the utilization thereof. The utilization will not determine the nature of the receipt. The assessee may mis-utilise the funds but that will not either deter...

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Depreciation is mandatory for claiming deduction under Chapter VI-A of Income Tax Act, 1961

Plastiblends Vs. ACIT (Bombay High Court)

The Full Bench was constituted to consider whether for the purposes of allowing deduction under Ch. VI-A depreciation could be thrust on the assessee even though it had disclaimed the same for purposes of regular assessment. The assessee argued that as in accordance with Mahendra Mills 243 ITR 56 (SC), depreciation was optional and as Exp...

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