"January, 2010" Archive - Page 41

Income from transfer of leased premises is taxable as Capital Gains under the Income-tax Act

ACIT Vs. United Motors (I) Ltd. (ITAT Mumbai)

Recently, the Mumbai bench of Income-tax Appellate Tribunal (the Tribunal) in the case of ACIT Vs United Motors (I) Ltd. (2009-TIOL-693-ITAT-MUM) has held that income from transfer of a leased premises without transferring its own business amounts to extinguishment of the taxpayer's right in the capital asset as per section 2(47) of the I...

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Business of providing services in connection with the prospecting for or extraction or production of mineral oil governed by Section 44BB

Geofizyka Torun Sp.zo.o., In Re- (Authority for Advance Rulings)

We are of the view that the case of the applicant neatly fits into Section 44BB and all the ingredients of that section are satisfied. To attract the first part of section 44BB, the non-resident must be (a) engaged in the business of providing services or facilities; (b) such provision of services/facilities must be ‘in connection with...

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Assessing Officer can examine the entries in respect of writing off of bad debt or part thereof by assessee

CIT Vs Kohli Brothers Color Lab (P) Ltd. (Allahabad High Court)

Provision of Section 143 (2) of Income Act viz-aviz section 36(1)(vii) of the Income Tax Act, 1961 read with section 36(1) both would be harmonized to give purposeful meaning to both the statutory provisions, as one extends benefit to the respondent-assessee of deduction for their debt or part thereof becoming bad and other authorizes Ass...

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Set off of long term capital loss with indexation against long term capital gains without indexation is allowable

Keshav S. Phansalkar Vs ITO (ITAT Mumbai)

Section 70(3) of the Act postulates that for any assessment year where there is a loss in respect of long term capital asset, the asscssee shall be entitled to have the amount of such loss set off against the income, if any fas arrived at under a similar computation) made for the assessment year....

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S. 220(2) Interest chargeable with reference to due date reckoned from original notice of demand

DCIT Vs. AS Krishna & Co. (P.) Ltd. (ITAT Visakhapatnam)

It is thus clear that the entire assessment order was not set aside to enable the Assessing Officer to reframe the assessment; the order passed by the first appellate authority was only to enable to the Assessing Officer to vary the assessment originally made and not to take a reiook at all the issues which were considered in the original...

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Applicability of rule of limitation in respect of appeal filed after an inordinate delay without reasonable cause

Foramer France Vs. DCIT (ITAT Delhi)

Coming to the general proposition regarding condonation of delay, the learned counsel relied on a number of cases, which have already been summarized. In the case of Shakuntala Devi (supra), the Hon'ble Supreme Court held that liberal construction should be placed on the words "sufficient cause" provided that no negligence,...

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S. 41(1) applies only to trading liability not to other types of liabilities

Govindbhai C. Patel Vs. DCIT (ITAT Ahmedabad)

Where the assessee had not claimed nor obtained a deduction in respect of a security deposit treating it as a trading liability, section 41 (1) cannot be invoked when such security deposit is refunded to the assessee. In the present case, none of the above probabilities existed and this is a case of amount...

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If refund is legitimately due to assessee, mere delay should not defeat claim for refund

Sitaldas K. Motwani Vs DGIT (International Taxation) (Bombay High Court)

There is no presumption that delay is occasioned deliberately, or on account of culpable negligence, or on account of malafides. A litigant does not stand to benefit by resorting to delay. In fact he runs a serious risk. The approach of the authorities should be justice oriented so as to advance cause of justice. If refund is legitimately...

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There is no provision for adjustment for short payment of service tax of earlier period against excess payment of service tax in subsequent period

Lilason Breveries Ltd. Vs. CCE (CESTAT Delhi)

Learned Chartered Accountant submits that the excess amount paid in the subsequent period may be treated as mere deposit which can be adjusted against the earlier short payment and it may be paid alongwith interest. I am unable to accept the contention of the learned Chartered Accountant. The assessee paid the service tax of excess amount...

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For a debt to be classified as bad, assessee has only to write it off as irrecoverable in its accounts

C. B. Richard Ellis Mauritius Ltd. Vs DDIT (International Taxation) (ITAT Delhi)

For claiming any debt as a bad debt, one has to satisfy following two conditions: (1) Debt is written off as bad debt in the Profit and Loss Account by making corresponding entry in the party account. (2) Debt is taken in to account in computing the income of the assessee of the previous year in which debt is written off or in earlier pre...

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