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Archive: 06 August 2011

Posts in 06 August 2011

Free YouTube Live on The global landscape –  from market’s to trade

May 24, 2024 513 Views 0 comment Print

Join us for an insightful and dynamic YouTube Live session on “The global landscape –  from market’s to trade.” with renowned financial analyst Ankit Baid, MBA Finance. The presentation explores shifting of the global economic landscape, focusing on the decline of US dominance and the rise of China. It examines the potential decrease in global […]

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 7491 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

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

August 6, 2011 1658 Views 0 comment Print

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.

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)

August 6, 2011 2507 Views 0 comment Print

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 subsidiary company and the fact that it was also used for investment in the shares of the subsidiary company to have control over that company and, therefore, the element of interest paid on the overdraft was not susceptible of bifurcation and therefore, the respondent no.1 is entitled to the deduction under section 36(1)(iii) of the Income Tax Act is correct and deserves to be accepted.

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

August 6, 2011 2578 Views 0 comment Print

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 of law on which this appeal is admitted.

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

August 6, 2011 1736 Views 0 comment Print

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 are not fulfilled and not before that.

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)

August 6, 2011 991 Views 0 comment Print

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.

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

August 6, 2011 654 Views 0 comment Print

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.

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

August 6, 2011 919 Views 0 comment Print

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 those receipts with the character of income can be assessed to tax. The ITAT held that income can be considered “accrued” only when the taxpayer has a right to receive the income. Without a legally enforceable right, there cannot be an accrual of income.

Bombay HC upholds Service Tax on Renting of Immovable property

August 6, 2011 6119 Views 0 comment Print

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 amendment. However, the operation of the order has been stayed for four weeks to enable the petitioners to move the Supreme Court.

Income tax Department detect and deletes 11.69 lakh Multiple PAN Card

August 6, 2011 8412 Views 0 comment Print

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.

Income Tax Department takes Several Punitive and Deterrent Steps to Unearth Unaccounted Money And Curb Tax Evasion

August 6, 2011 2049 Views 0 comment Print

The Income Tax Department takes several punitive and deterrent steps to unearth unaccounted money and curb tax evasion. These include scrutiny of tax return; surveys, search and seizure actions; imposition of penalty and launching of prosecution in appropriate cases. Information Technology has also been used in a big way in collection, collation and dissemination of taxpayer information. Tax Information Network (TIN) has been set up as a depository of important tax related information which can be accessed by the Department. The basic components of TIN are information relating to Tax Deduction at Source (TDS), payment of taxes and high value transactions reported in Annual Information Returns (AIR).

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