"14 October 2011" Archive

Assessee is entitled to depreciation on Wind Electric Generators from the date on which it was installed and commissioned

Hindustan Platinum Pvt. Ltd. Vs ACIT (ITAT Mumbai)

Hindustan Platinum Pvt. Ltd. Vs ACIT (ITAT Mumbai)- Statement given u/s 131 cannot be the only basis for disallowing the claim of depreciation when it is shown with documentary evidence that the admission made in the statement recorded was under a mistake or misapprehension. Assessee is not entitled to claim loss u/s 28 on account bad deb...

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If AO has not applied his mind while passing the order and did not call for the required details for completing the assessment, initiation of proceedings u/s 263 in such circumstances is valid

Hemant Mangaldas Bhanushali Vs ITO (ITAT Mumbai)

Hemant Mangaldas Bhanushali Vs ITO (ITAT Mumbai)- The main ground on which the CIT exercised jurisdiction under section 263 of the Act, was the failure on the part of the Assessing Officer to make enquiries with regard to the applicability of the provisions of section 194C to the payments made by the assessee to other truck owners in the...

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No addition can be made for the difference in the receipts as per TDS certificate and as per the books of account when the difference is on account of service tax

ACIT Vs M/s Hari Machines Ltd (ITAT Delhi)

ACIT Vs M/s Hari Machines Ltd (ITAT Delhi)- Service tax is a recovery on behalf of the company and it has been paid to Government account. Element of service tax cannot be treated as income of the assessee. Assessee is entitled to depreciation u/s 32 on the equipment purchased during the impugned year once a government authority inspectin...

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Service Tax – Retailers Association of India vs. Union of India & Ors. (Supreme Court)

Retailers Association of India Vs Union of India & Ors

Having heard learned counsel for the parties on the question of stay with regard to the arrears of service tax due from the members of the appellant association prior to 30th September, 2011, we direct as follows: (i) all members of the appellant association, namely, Retailers Association of India, who are before us, shall deposit with...

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When the assessee successfully explains the source of share application money, the additions made u/s 68 are not sustainable

ACIT Vs H.K. Imp ex Pvt. Ltd. (ITAT Mumbai)

ACIT Vs. H.K. Imp ex Pvt. Ltd.(ITAT Mumbai)- The dispute is regarding addition of Rs. 4.85 crores being the share application money invested by the two directors who were holding 50% share in the company. We find from the records that the assessee vide letter dated 17.9.09 addressed to AO had given full details such as name, address, PAN ...

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The assessee shall be entitled to admissible business expenses from the day when the business was ready to commence and not from the date of actual commencement of the business,

GNG Stock Holdings (P) Ltd. Vs DCIT (ITAT Delhi)

GNG Stock Holdings (P) Ltd Vs DCIT (ITAT Delhi)- When a business is established and is ready to commence business, then it can be said of that business that it is set up. But before it is ready to commence business, it is not set up. In other words, a business cannot be said to be set up before it is ready to commence. The actual commence...

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S. 50C -Fair Market Value assessed by DVO to be adopted even if its lower than stamp duty valuation

Income Tax Officer Vs Gita Roy (ITAT Kolkata)

Whether Ld. CIT(A) erred in directing the AO to adopt the value of the property sold as per DVO report for the purpose of computing capital gains in place of value adopted by Stamp Valuation Authority and considered by AO as per provisions of Section 50C(1) of the IT Act, 1961. Held, Yes If the fair market value as assessed by the DVO is ...

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Income from commission is business income, not income from other sources

CIT Vs FX Info Technologies Pvt. Ltd. (Delhi High Court)

These two appeals are under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) directed against the order dated 31st March, 2010 of the Income Tax Appellate Tribunal (for short “the Tribunal”) pertaining to the assessment years 2004-05 and 2005-06....

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When assessee reverses a unilateral write back of dues payable to a vendor to its P & L account, the liability is to be treated as contingent liability

Echjay Forgings P. Ltd. Vs. ITO (ITAT Mumbai)

Echjay Forgings P. Ltd. Vs. ITO (ITAT Mumbai)- As observed by Honourable Supreme Court, in the case of Chainrup Sampatram vs CIT, 24 ITR 481, “while anticipated loss is thus taken into account, anticipated profits...is not brought into account, as no prudent trader would care to show increased profit before it’s actual realization”....

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Different business of the assessee can not be considered separately for the purpose of calculating the deductions under Section 80 HHC of the Act

Dun-cans Industries Limited Vs CIT (Calcutta High Court)

Duncans Industries Limited Vs CIT (Calcutta High Court)- Under S. 80-HHC (1) the deduction is to be given in computing the total income of the assessee. In computing the total income of the assessee both profits as well as losses will have to be taken into consideration. Section 80-AB is relevant....

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