"06 March 2012" Archive

Section 54EC Exemption cannot be denied merely because bonds are in joint names

Ito Vs Smt. Saraswati Ramanathan (ITAT Delhi)

assessee is eligible for the exemption under Section 54EC. I further find that the Mumbai bench, ITAT has held in the case of JCIT v. Smt. Armeda K. Bhaya (2005), 95 ITD 313 (copy filed) that for the purpose of Section 54 of the Act, it is sufficient compliance with the section that the assessee purchased the new flat in the names of hims...

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S. 54EC Exemption allowed where investment was made after 6 months due to non-availability of bonds

Cello Plast Vs DCIT (ITAT Mumbai)

Tribunal held that it was an impossible task for the assessee to comply with the time period laid down u/s 54EC. The delay in purchase due to non-availability of the bonds was held to be a reasonable cause, and the assessee was held to be entitled to exemption u/s 54EC. The Tribunal also noted that in the case of Ram Agarwal 81 ITD 163, o...

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Section 50 would apply only to cases where ‘assessee’ had obtained depreciation

Kali Aerated Water Works Vs. Commissioner of Income Tax (Madras High Court)

the assessee had not obtained any depreciation after the asset became an asset of the partnership firm constituted under the deed dated June 16, 1977. In this context reference may usefully be made to the decision of the Calcutta High Court in the case of CIT v. Bhupender Singh Atwal [1983] 140 ITR 928, delivered by Sabyasachi Mukharji J....

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Benefit u/s 54EC / 54E available even in case of depericiable asset

Cit Vs Ace Builders (P) Ltd. (Bombay High Court)

Deemed fiction created in Ss.(1) and Ss.(2) of S. 50 is restricted only to the mode of computation of capital gains contained in S. 48 and S. 49 and does not apply to other provisions. A fiction created by the legislature has to be confined to the purpose for which it is created. Further, S. 54E does not make any distinction between depre...

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Section 50 nowhere says that depreciated assets shall be treated as short-term assets

Commissioner of Income Tax Vs. Assam Petroleum Industries (P.) Ltd. (Guwahati High Court)

Section 54E, read with section 50, of the Income-tax Act, 1961 - Capital gains - Not to be charged in certain cases - Assessment year 1991-92 - Whether section 50 nowhere says that depreciable asset shall be treated as short-term capital asset and section 54E has an application where long-term capital asset is transferred - Held, yes - Wh...

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Benefit of indexation not available on depreciable Assets

M. Raghavan Vs. Assistant Commissioner of Income Tax (Madras High Court)

Section 50 of the Income-tax Act, 1961 - Capital gains - Computation of, in case of depreciable assets - Assessment year 1994-95 - Whether for purpose of section 50(2), where 100 per cent depreciation had been allowed on assets, whole of amount received by assessee on sale of those depreciated assets is required to be treated as capital g...

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Clarification Regarding Filing of Conflicting Returns by Contesting Parties

The Ministry of Corporate Affairs has clarified that Circular No. 19 and 20 of 2011 issued on 02.05.2011 that were issued for laying down certain procedure to regulate cases wherein filing of conflicting returns with regard to appointment of Directors or change of Director/Directors have now been superseded. This has been done in the ligh...

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Posted Under: Income Tax |

Art of Internal Auditing!

Now, the world is in twenty first century, everywhere changes could be visualised but with respect to accounting, auditing etc, where is the change? Modern organisations have become more sophisticated and thus resulted in decentralisation of their activities and consequently the top management is remotely concerned with the day to day ac...

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Posted Under: Income Tax |

Payment to ESI department for delay allowable under section 37(1)

DCIT Vs Oswal Woollen Mills Ltd. (ITAT Chandigarh)

Payment paid by company to ESI department for delay in payments was nothing but compensation and was compensatory in nature. Thus, the impugned amount was to be allowed u/s 37(1)....

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Income taxed in the hand of Firm cannot be taxed in the hand of Partner

Balachandra Bhatavadekar Vs ACIT (ITAT Mumbai)

Briefly stated the assessee is a Partner in the firm M/s Balachandra Laboratories. The firm had property at Thane on which development rights were transferred to M/s Friends Development Corporation (FDC) for an amount of Rs.17.00 crores. The said firm paid one third of consideration to legal heirs and Ms Balachandra laboratories claimed d...

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