"05 January 2013" Archive

TPO must justify arm’s length margin fixed by it

M/s SITEL India (P) Ltd. Vs ACIT 8(3) (ITAT Mumbai)

The TPO while rejecting the idle capacity, however, did not discuss anything about the arms length margin fixed at 11.96 per cent. This indicates that assessee's TP study has not been considered by the TPO. The assessee has selected ten comparable companies and summary of net cost + margin varies from -6.04 per cent to 19.06 per cent. ...

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Assessment of earlier year cannot be reopened on the basis of persuasive finding in subsequent years

The Commissioner Of Income Tax-I Vs M/S Kanodia & Sons (Allahbad High Court)

From a perusal of the reasons recorded by the Assessing Officer, we find that he had simply recorded the finding in the assessment order passed for the assessment year 1996-97 and a vague reference was made that similar was the position in respect of the assessment year in question. The assessment order was for the assessment year 1996-97...

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CBI arrests a superintendent and inspector of service tax department for accepting bribe

The Central Bureau of Investigation has arrested a Superintendent and an Inspector of Service Tax, Department of Revenue (Ministry of Finance), CGO Complex, Lodhi Road, New Delhi for demanding and accepting a bribe of Rs.One Lakh from the Complainant. ...

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Posted Under: Income Tax |

CBDT Grants Exemption from TDS on the Payments of Certain Categories

CBDT Grants Exemption from TDS on the Payments of Certain Categories to Mitigate Compliance Burden on Businesses Held by Individuals, Firms or Corporate Etc Who are Using the Financial Services Offered by Banks To mitigate compliance burden on businesses held by individuals, firms or corporate etc who are using the financial services offe...

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Posted Under: Income Tax | ,

MAT payable on Loan admitted as income by the Assessee

M/s. Dream Shelters Pvt. Ltd. Vs Income Tax Officer (ITAT Agra)

Whether this agreed addition is to be added while calculating book profit under section 115JB of the Act. Section 115JB provides that where in the case of an assessee being a Company, the income tax payable on total income as computed under this Act is less than 10% (applicable in the impugned Assessment Year) of its book profit, such boo...

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Filing of return electronically is a directory provision and not a mandatory provision

M/s. Gemini Communication Ltd. Vs The Assistant Commissioner of Income-tax (ITAT Chennai)

Statute consisting of Act and Rules speak of filing of return before due date and contents of that must be furnished in that return. The format has been prescribed by the Rules and also the contents have been prescribed by the Rules. Filing of the return also has been prescribed by the Act. Nowhere in the Act or Rules, there is a mandator...

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Disallowance U/s. 40A(2) is not required to be made for TP adjustments

M/s. Toyota Kirloskar Motors (P.) Ltd. Vs Asst. Commissioner of Income Tax (ITAT Bangalore)

The Explanation to section 92(1) of the Act clarifies that the allowance for any expense or interest arising from an international transaction shall also be determined having regard to the ALP and therefore the disallowance is made under section 92(1) and not under section 40A(2) of the Act. ...

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In the absence of finding by AO Regarding Mis-statement / Non Disclosure, penalty order not justified

Mastek Ltd. Vs The Deputy Commissioner of Income Tax (ITAT Ahmedabad)

As per Explanation 7; no penalty is leviable if the assessee proves that the price charged or paid in such transaction was computed in accordance with the provisions contained in Sec. 92C and in the manner prescribed under section in good faith and with due diligence....

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No addition u/s 68 for gift from close relative who confirms the gift and was man of means

Commissioner of Income-tax Vs Dr. Kodela Siva Prasada Rao (Andhra Pradesh High Court)

Assessee had received a gift of Rs. 22,76,750/-in U.S. dollars from an NRI, N.Mohan and the assessee had filed two confirmation letters, one in December 2006 and another on 10-07-2007 given by the donor stating that he had gifted the above amount to the assessee, that the assessee is his close relative, that he is a man of means owning a ...

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Addition u/s. 68 justified if creditworthiness of creditor & genuineness of transaction not proved

Dr. D. Siva Sankara Rao Vs Income-tax Officer (Andhra Pradesh High Court)

The principle is that the assessee has to prove the identity of the creditor, the genuineness of the transaction and the creditworthiness of the creditor in order to discharge the burden cast on him, that a particular cash credit found in his books is genuine having regard to the nature and the source thereof and, therefore, cannot be add...

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