"09 January 2013" Archive

Reassessment Notice u/s. 148 notice issued by a non-jurisdictional AO is not valid

M/s. Indorama Software Solution Ltd. Vs ITO- Ward 9(2)-1 (ITAT Mumbai)

Section 148 mandates issue of notice before assessment, reassessment or computation u/s 147. As per section 148, it is mandatory that the Assessing Officer shall serve on the assessee a notice required him to furnish a return. The expression "Assessing Officer" used in the section 148 means 'the Assessing Officer vested with the jurisdict...

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Recalling of order by Tribunal is not permissible u/s. 254(2)

M/s Syndicate Realtors Vs ITO, Ward 5 (3) (ITAT Hyderabad)

The scope and ambit of application of section 254(2) is very limited. The same is restricted to rectification of mistakes apparent from the record. Recalling the entire order obviously would mean passing of a fresh order. That does not appear to be the legislative intent. The order passed by the Tribunal under section 254(1) is the effect...

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Warranty provisions not to be added for calculation of book profit for MAT

CIT Vs Becton Dickinson India Pvt. Ltd. (Delhi High Court)

The facts of the case are that the assessee which is engaged in the business of manufacture and trading of medical consumable devices and diagnostic equipment for use by the health care professionals, medical research institutions, industry and general public etc. had claimed provision for warranty service. It had contended that this prov...

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TPO cannot determine ALP of Project at NIL if Assessee submit all relevant documents & bills

M/s Castrol India Ltd. Vs Asstt. Commissioner of Income-tax (ITAT Mumbai)

In our opinion, the exercise of ascertaining ALPs has to be done by the TPO keeping in view the well laid down scheme in the relevant provisions of the Act and addition, if any, on account of TP adjustment, has to be made only after doing such exercise. We, therefore, restore this issue to the file of the AO/TPO with a direction to do su...

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S. 54F benefit available even on Value exceeding actual consideration due to deemed fiction U/s. 50C

Shri Raj Babbar Vs ITO-11(1)(3) (ITAT Mumbai)

Raj Babbar v. ITO - Based on the factual matrix of the present case, where the assessee invested total full value consideration of Rs. 16,87,000/- (as per the SRO) in the residential house, which is one house only as it has only one kitchen, and these FVC is less than the invested amounts of 17,65,752/-, during the specified period, the a...

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Amount disallowed u/s. 40(a)(ia) not eligible for deduction u/s. 80IB

The D. C. I. T. Vs Shri Rameshbhai C. Prajapati (ITAT Ahmedabad)

It is settled principle that the deeming fiction created under any provisions of the Act cannot be imported into a beneficial provisions of the Act. In this case, the addition made on account of disallowance of expenditure is due to the deeming fiction created by the penal section 40(a)(ia) of the Act. Thus, the effect of the same cannot ...

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Assessee entitled to relief U/s. 91 in respect of tax paid in Bhutan on income earned in Bhutan

Hindustan Construction Co Ltd Vs The Dy Commr of Income Tax (ITAT Mumbai)

The Assessing Officer has computed the income from Bhutan operations at Rs. 68,63,57,400/- and included the same in the total income of the assessee, then the relief u/s 91 of the I T Act is allowable @ 8.53% on the said income, which is subjected to tax in both the countries. Accordingly, we direct the Assessing Officer to give relief u...

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Reassessment not justified if no failure by petitioner to disclose truly & fully all material facts

Surat District Co-op Milk Producers Union Ltd Vs Income Tax Officer (Gujarat High Court)

We notice that in the return filed by the petitioner, in addition to claiming deduction of gross income of interest and dividend of Rs.1,81,27,606 under Section 80P(2)(d) of the Act, the petitioner further provided various details. For example, in the Annexure-VII to the return, such deduction under Section 80P(2)(d) was bifurcated into d...

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Revisionary power u/s. 263 can be exercised on matters never raised by AO during assessment

M/s. Mahalakshmi Liquor Promoters Pvt. Ltd. Vs The CIT-IV (ITAT Hyderabad)

There was no enquiry by the Assessing Officer on the issues raised by the CIT in his order u/s. 263 of the Act. The lack of enquiry or inadequate enquiry by the Assessing Officer could be very much reason for assuming jurisdiction u/s. 263 of the Act. ...

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Looted amount of Assessee recovered from Police after completion of Search operations cannot be taxed under block assessment

The Commissioner of Income Tax-II Vs Shri Nirankar Nath Mittal (Allahabad High Court)

Applying the ratio of the judgment in Chandra Prakash Agrawal (supra) to the present case, we find that the Tribunal did not commit any error in recording findings that since nothing was found in the search operations on 26.10.1995 and that though the warrant of authorisation under section 132A was issued on the following day on 27.10.199...

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