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Archive: 15 October 2011

Posts in 15 October 2011

section 41(1) Merely because liability is more than 5 years old does not mean that there is a cessation or remission

October 15, 2011 637 Views 0 comment Print

ITO Vs Maharashtra State Co-operative, Consumers Federation Ltd. (ITAT Mumbai) -Whether CIT(A) was not justified in deleting the addition of Rs. 10,00,000/ – made by the AO under sect ion 41(1) of the Act . Assessee is an AOP being the Apex body of consumers co-operative societies in the State of Maharashtra. Its business is divided in 8 Divisional Offices and 13 Apna Bhandars which are retail out lets of federations. The federation is Semi – Government body sponsored and fully supported by the State Government federations.

Expenses incurred for maintenance of building structure owned by the assessee and for the safety of the employees is revenue in nature

October 15, 2011 387 Views 0 comment Print

DCIT, Baroda Vs Liberty Phosphate (ITAT Ahemdabad)- It was not in dispute that in respect of an another building at Udaipur, this assessee itself has capitalised the expenditure. However, the impugned repairs were in respect of an another factory building situated at F-227, Mewar Industrial Area Udaipur, wherein the company has carried out manufacturing of Fertiliser; namely, Single Super Phosphate. One of the ingredients of the said fertiliser is stated to be sulphuric acid.

Prior scrutiny of accounts before referring them for special audit is sine qua-non and if the same has not been done the direction for special audit is bad in law and hence assessment framed becomes nullity

October 15, 2011 387 Views 0 comment Print

Jyoti Traders Vs DCIT (ITAT Mumbai )- In our view the conditions precedent for passing an order u/s.142(2A) of the Act directing the Assessee to get its account audited by a special auditor viz., the satisfaction of the AO having regard to the nature and complexity of the accounts of the assessee and the interest of the revenue, that is necessary get the assessee’s account audited by a special auditor is not fulfilled in the present case and therefore the reference to special audit is held to be invalid.

Hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is business income- ITAT Mumbai

October 15, 2011 11808 Views 0 comment Print

ACIT Vs M/s JPS Associates (ITAT Mumbai)- Revenue has raised a grievance against the finding of the Ld. CIT (A) that hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is to be treated as a business income. The Ld. D.R. vehemently argued that the assessee has not carried out any activity and hence, the same is to be treated as income from other sources. Per contra, Ld. Counsel submitted that the said income has been accepted by the A.O. as business income in the preceding assessment years.

In view of the provisions of section 112 where there are several transactions of sale and purchase of securities, the discretion to take the benefit of indexation lies with assessee

October 15, 2011 697 Views 0 comment Print

Jethiben K Patel Discretionary Trust Vs DCIT (ITAT Ahemdabad)- In the case of Mohanlal N. Shah (HUF)- Vs- ACIT reported in [2008] 26 SOT 380 (Mum) wherein it was held that as per section 48, option is with the assessee to or not to avail of benefit of indexation for computation of capital gains on transfer of long- term capital asset.

Expenses reimbursed to recreation clubs and staff clubs of employees are revenue in nature

October 15, 2011 5170 Views 0 comment Print

ITC Limited Vs DCIT (ITAT Kolkata)– We have carefully considered the submissions of the ld. representatives of the parties and the orders of the authorities below. We have also gone through the details of the expenditure aggregating Rs. 9,00,111 claimed by the assessee, the break-up of which has already been mentioned herein above. We observe […]

To qualify as agricultural income, it is necessary for an operation to be carried on soil

October 15, 2011 2672 Views 0 comment Print

Invitro International Pvt Ltd Vs DCIT (ITAT Bangalore)- Plant tissue culture is used to reproduce clones of a plant to get multiple plants with the same traits by placing various tissues of the mother plant in containers and required medium, which is definitely not consisting of land or soil.

MCA advises to file ROC return before Diwali

October 15, 2011 1217 Views 0 comment Print

Ministry of Corporate Affairs desires that the members of the institute may file Company’s Balance Sheet and Annual Return at the earliest preferably before festival time of Diwali to avoid last minute rush and system congestion in MCA21.

MCA releases XBRL Validation Tool with enhancements

October 15, 2011 303 Views 0 comment Print

Updated version of MCA XBRL validation tool (Version 1.1) has been released on 14th October 2011.The list of enhancements to the validation tool has also been provided.

Rate hike looms as Sept inflation stays high at 9.72%

October 15, 2011 462 Views 0 comment Print

India’s inflation rate continued to remain close to worrisome double-digit levels bolstering speculation that the Reserve Bank of India (RBI), despite a slowing economy, may increase interest rates yet again to cool prices when it presents the quarterly policy review later this month. So, expect your EMIs on loans to go up all over again.

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