"15 December 2012" Archive

TDS not applicable on service rendered by Tenants’ Association to members even if the same is for remuneration

Belvedere Estates Tenants Association Vs Income-tax Officer, Ward-34(1), Kolkata (ITAT Kolkata)

On the facts of the present case, we have noted that there is no finding by any of the authorities below that services are rendered to non-members. There is a reference to the services rendered to the outsiders in the orders of the authorities below, but it is in the context of analysis of judicial precedents, and, therefore, nothing turn...

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If non deduction of TDS on Salary is pursuant to HC order Assessee not liable for consequences u/s. 201

State Bank of Indore Vs Income-tax Officer, TDS-II Indore (ITAT Indore)

Section 192 deals with the deduction of tax at source. It is computed on the estimated income of the assessee under the head 'salary' and the liability is at the time of payment of salary, if there is a perquisite, there is responsibility to deduct tax of the employer under section 192(1), 192(1A) and 192(1B). Perquisite is actually not ...

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No requirement in Income-tax Act that only self cultivated land will be treated as agricultural land

Income-tax Officer-5(1), Indore Vs Ashok Shukla (ITAT Indore)

Observation of the Assessing Officer that since the land was not cultivated by the assessee himself and was carried on by the brother, therefore, it cannot be treated as agricultural land. We are not absolutely convinced by this argument/observation because there is no requirement in any Act more especially the Income Tax Act that only th...

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Mere Non-compliance with ICAI guidelines would not invite TP adjustment

Hindustan Unilever Ltd. Vs Additional Commissioner of Income-tax (ITAT Mumbai)

Where neither the TPO nor the DRP have found any fault with audited segmental accounts, the Departmental Representative cannot Canvass rejection of the same before the ITAT on the ground that the same one not prepared or audited as per ICAI guidelines....

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‘Service’ – What it Means under the service Tax Provisions

SERVICE ? ‘Service’ has been defined in clause (44) of the new section 65B and means – any activity for consideration carried out by a person for another and includes a declared service does not include – any activity that constitutes only a transfer in title of (i) goods or (ii) immovable property by way […]...

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SEZ profit not to be included in computation of Book Profit

Genesys International Corpn. Ltd. Vs Assistant Commissioner of Income-tax, Circle 8(1) (ITAT Mumbai)

On perusal of orders of authorities below, we agree that facts and issue involved in Ground No.2 of appeal for assessment year 2009-10 are identical to ground No.2 & 3 of appeal for assessment year 2008-09, which we have discussed in paras 7 to 9 hereinabove. For the reasons mentioned in para 9 hereinabove, we allow Ground No.2 of appeal ...

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Ceiling u/s. 44C applies to Expenses not directly attributable to Indian Branch

Deputy Commissioner of Income-tax Vs Banque Indosuez (ITAT Mumbai)

We are not convinced with the submission made by the learned AR in this regard for the reason that as per the mandate of Article 7, the deduction is to be allowed in conformity with the provisions of the Income-tax Act, 1961. Once section 44C is there, there can be no escape unless it is proved that the expenses incurred are not covered w...

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Paying Tax on concealed income not enough to avoid penalty

ADIT Vs Ravindra Bahl (ITAT Delhi)

Merely by depositing the due tax on the amount received on termination of employment the bona fides of the assessee in not declaring the receipt as income in its return of income is not established. ...

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CA expected to be diligent & careful in his professional work – HC

CA Rajesh Vs Disciplinary Committee (Gujarat High Court)

A Chartered Accountant has an obligation, not only statutory but also moral and social, to be absolutely and completely diligent and cautious and careful while preparing, signing and certifying Annual Accounts and/or Audit report. Several Government and private organizations and individuals rely on the report/certificate by Chartered Acco...

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Whether commission paid to directors were allowable expenditure u/s. 36(1)(ii)?

Commissioner of Income Tax-I Vs Convertech Equpments Pvt. Ltd. (Delhi High Court)

When the similar issue arose in AY 2005-06, the ITAT again following its own order for AY 2004-05, upheld the order of the learned CIT(A) deleting the disallowance of commission paid to directors. Admittedly, the facts of the year under consideration are identical. Therefore, respectfully following the above decision of ITA T in assessee ...

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