"06 August 2011" Archive

If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable

Nihilent Technologies Private Limited Vs DCIT & Anr. (Bombay High Court)

Nihilent Technologies Private Limited Vs DCIT & Anr. (Mumbai High Court)- A division bench of the Bombay high court has quashed the reopening of the income tax assessment of Nihilent Technologies Ltd after four years. The software company had shares held by Hatch Investments (Mauritius) Ltd. ...

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Interest paid by the assessee, on account of an investment in its sister concern from borrowed funds for the acquisition of shares in a subsidiary company in order to have control over that company, is eligible for a deduction under s 36(1)(iii)

CIT Vs Phil Corporation Ltd. & Anr. (Bombay High Court)

CIT Vs Phil Corporation Ltd. & Anr. (High Court of Bombay) - interest paid on borrowings utilized for the purchase of shares in order to retain managing agency by the assessee company was held allowable as business expenditure. We find that the reasoning of the ITAT that the overdraft was not operated only for investing in the shares of s...

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Expenditure incurred on the total reconditioning and overhauling of the machinery, which had outlived its utility, by replacing many vital parts in order to make the same functional cannot be treated as current repairs

Bharat Gears Limited Vs CIT (Delhi High Court)

In all these three appeals the assessee is the same and even the issue is identical, which pertains to three different assessment years, the factual premise on which such an issue has arisen for consideration is somewhat different. Therefore, we propose to first take up the facts of ITA No.14/2005 to understand and appreciate the question...

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When assessee is already granted exemption u/s 10(23C)(vi), fresh application of exemption cannot be rejected

Palam Jain Educational & Welfare Vs DGIT (Delhi High Court)

Palam Jain Educational & Welfare Society Vs DGIT (Delhi High Court)- When the assessee is already granted exemption u/s 10(23C)(vi), the fresh application of exemption cannot be rejected in view of third proviso to section 10(23C)(vi) as the exemption can be withdrawn only in the event that conditions under which the exemption is granted ...

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Opportunity of being heard is required to be given to the director of the private limited company before initiation of recovery proceedings pursuant to the issuance of a notice under s 179(1)

Sanjay Ghai Vs Dy. CIT (Delhi High Court)

Sanjay Ghai Vs Dy. CIT (Delhi High Court)- Impugned order dated 14th November, 2007 is set aside with a direction that the petitioner or his authorised representative will appear before the Deputy Commissioner of Income Tax, Circle 7(1), New Delhi on 29th August, 2011 at 2 p.m. ...

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When assessee fails to rebut the addition made by the AO in respect of undisclosed income found during the search and also chooses not to file appeal against the huge quantum addition, penalty is warranted in such circumstances

Earth Castle Vs Dy. Commissioner of Income Tax (ITAT Mumbai)

Earth Castle Vs Dy. Commissioner of Income tax (ITAT Mumbai)- Imposition of penalty under s 271(1)(c) is sustainable if the assessee is unable to substantiate an explanation in relation to the addition made by the AO in respect of the undisclosed income found during the search and also did not file appeal against the addition....

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Expenditure incurred in foreign exchange is to be reduced from the total turnover while computing the deduction under s 10A

Navayuga Info tech Private Limited Vs DCIT (ITAT Hyderabad)

Navayuga Info tech Private Limited Vs DCIT (ITAT Hyderabad)- Expenditure incurred on foreign travel, spent in foreign exchange, is to be reduced from the export turnover for the purpose of the computation of the deduction under s 10A. Interest on term deposits, profit on exchange variation, etc, do not form part of the profits and gains d...

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Tax cannot be levied on an amount wrongly paid to a person because of a mistake made by the payer – ITAT Mumbai

DCIT Vs Tata Investment Corporation Ltd. (ITAT Mumbai)

DCIT Vs Tata Investment Corporation Ltd. (ITAT Mumbai)- All income cannot be taxed, but only those incomes on which the taxpayer has a legitimate and enforceable right is liable to tax, the ITAT held. According to ITAT order, taxmen do not have the right to tax any receipts as the law is well settled that all receipts are not income, only...

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Bombay HC upholds Service Tax on Renting of Immovable property

Bombay High Court, while disposing a batch of writ petitions filed by The Retailers' Association of India along with the Confederation of Real Estate Developers' Association of India and Multiplex Association of India, upheld the constitutional validity of levy of service tax on renting of immovable property with its retrospective amendme...

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Income tax Department detect and deletes 11.69 lakh Multiple PAN Card

The Income tax Department Department has identified the multiple PANs belonging to the same person through an automated Computer System of the Department. Till date 11,69,238 multiple PANs have been detected and deleted....

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Posted Under: Income Tax |