"December, 2011" Archive

CIT (Appeals) have inherent and implied powers to grant stay – HC

Maheshwari Agro Industries Vs Union of India (Rajasthan High Court)

Maheshwari Agro Industries Vs. UOI (Rajasthan HC) - the income assessed by the Assessing Officer is almost 47 times of the income declared by the assessee viz. Rs. 1,44,42,320/- against the declared income of Rs.3,48,140/-. The disputed demand of tax also would be almost the same multiples of the declared and admitted tax liability or may...

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CIT can set aside 143(3) assessment if creditors not been verified during the Assessment

M/s. Southern Metals & Alloys Vs. The Assistant Commissioner of Income Tax- IX (ITAT Chennai)

Southern Metals & Alloys Vs. ACIT (ITAT Chennai)- The assessing authority had asked for details in respect of various creditors and in respect of the above stated trade creditors. The assessee had not furnished any particulars before the assessing authority. No confirmations were made by creditors also. On an examination of the records o...

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Cash seized should be adjusted advance-tax liability from the date of seizure

Shri Ram S Sarda Vs Dy. CIT, Cent. Cir. II (ITAT Rajkot)

Shri Ram S Sarda Vs DCIT (ITAT Rajkot)- ITAT, Mumbai Bench in the case of Sudhakar M Shetty vs ACIT held that the department has to adjust the seized amount towards the advance-tax from the date when it was seized and accordingly directed the assessing officer to adjust the seized cash from the date of seizure. In the case under considera...

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Re-assessment proceedings cannot, be initiated on the ground that the Assessing Officer was legally wrong and had misapplied and wrongly understood the law/legal position

BLB Limited Vs Assistant Commissioner of Income Tax (Delhi High Court)

BLB Limited Vs. ACIT (Delhi HC) - If in the course of original assessment proceedings, the Assessing Officer has considered and examined a particular aspect, the said aspect cannot be made a ground to reopen and initiate reassessment proceedings. The assessing authority cannot have a fresh look and reopen an assessment on the ground of c...

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Power to reopen an assessment cannot be exercised to reopen what formed subject matter of an appeal to Commissioner (Appeals)

ICICI Bank Ltd. Vs. Deputy Commissioner of Income-tax (Bombay High Court)

ICICI Bank Ltd. V. DCIT (Bombay HC) - Second proviso to Section 147 stipulates that the Assessing Officer may assess or re-assess such income other than the income involving matters which are the subject matter of any Appeal, Reference or Revision, which is chargeable to tax and has escaped assessment. ...

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Return treated as non est and ‘invalid’ cannot be treated as allowance or deduction – So Interest waived by bank cannot be charged to tax under s. 41(1)

M/s. NJP Surya Cold Storage Pvt Ltd. Vs Income-tax Officer (ITAT Hyderabad)

NJP Surya Cold Storage Pvt Ltd. Vs ITO (ITAT Hyderabad)- In this case, it is on record that in earlier years, returns were non est. returns and the interest claimed cannot be considered as allowed to the assessee in the earlier years. This being so, interest waived in the present assessment year cannot be considered as income of the asses...

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ITAT may dismiss appeal for non attendance by the Assessee

M/s Panwar Roshin & Turpentine Co. Ltd. Vs Income-tax Officer (ITAT Delhi)

M/s Panwar Roshin & Turpentine Co. Ltd. Vs ITO (ITAT Delhi)- The appeal was filed on 08.12.2010 when an acknowledgement cum- notice was served on the bearer under which the appeal was fixed for hearing on 10.02.2011. None attended on that date. Thereafter, another notice dated 07.10.2011 was served on the assessee through the official co...

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TDS U/s. 194C not deductible on Packing or Printed material supplied to us as per pur specification

Dy. Commissioner of Income-tax Vs M/s. Elgie Engineering Works (ITAT Calcutta)

DCIT Vs. Elgie Engineering Works (ITAT Calcutta)- On perusal of the bills of parties, it is seen that the payments are for manufacture and supply of items such as Buckstay Slings, Economiser coils, Lifting beams etc. The bills show that the price is inclusive of the material which indicates that the transactions were in the nature of sale...

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Tribunal may allow additional documents to be produced or witness to be examined or affidavit to be filed or may allow such evidence to be produced

Pradeep Khanduja Vs Income-tax Officer (ITAT Delhi)

Pradeep Khanduja Vs ITO - ITAT Delhi - even after passing of the assessment order, the assessee did not move any application before the ld. CIT(Appeals) for admission of additional evidence, which has now been filed before us, and which is sought to be admitted. Rule 10 deals with filing of affidavit and states that where a fact, which ca...

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Expenditures for value addition and for competing in the market are revenue Expenditure

Assistant Commissioner of of Income Tax Vs. M/s. Kannappan Iron and Steel Co. Pvt. Ltd. (ITAT Chennai)

ACIT Vs. Kannappan Iron and Steel Co. Pvt. Ltd. (ITAT Chennai)-The Tribunal found that the expenditures were not incurred for setting up of any business or initiating an expansion programme. The expenditures were incurred as a measure of value addition and for competing in the market. There was no basic improvement in the fundamental char...

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