"01 May 2013" Archive - Page 2

WDV has to be arrived at only after reducing depreciation actually allowed

The Addl. CIT Vs. M/s. Nicholas Piramal India Ltd. (ITAT Mumbai)

The Hon'ble Supreme Court in Mahendra Mills (supra) has laid down that the assessee is entitled to exercise his option even through the filing of revised return and that option cannot be denied to him nor can depreciation be thrust on the assessee against his willingness. ...

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Sec.40A(2) – Concrete evidence or material must to allocate unreasonable &excessive expenses for purpose of disallowance

Global Innovsource Search Solutions P. Ltd. Vs. ITO (ITAT Mumbai)

Here in this case, it is not disputed fact that the assessee is sharing staff, office premises, etc. with its parent company. The allocation of the expenses have been identified as per the memorandum of understanding with regard to nature and the quantum of expenses which were to be borne out by the parent company and to be reimbursed by ...

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Foreign trip Expenses on spouse of Director not allowable unless connected with business

Harinagar Sugar Mills Limited Vs. ACIT (ITAT Mumbai)

Expenses incurred by the assessee on the foreign tour of spouses of the Directors were wholly gratuitous and for a purpose outside the course of its business. As the incurred expenditure was for extra-commercial reasons, so, same is not deductible under section 37(1) of the Act....

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Commission paid to director cannot be allowed if no service been rendered

Joint Commissioner of Income tax Rage 16 Vs. M/s. Orient Longman (P) Ltd. (ITAT Hyderabad)

It is seen from the material on record that there is no contract of employment between the assessee-company and non-whole time directors. They were also not paid any fixed remuneration. The Board's resolution dated May 15, 2002, which has been extracted in the impugned order of the Commissioner of Income-tax (Appeals) provides for payment...

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Payments to Government for diversion of forest land for non-forest purposes, amounts to compensation is revenue expense

M/s. Mysore Minerals Ltd. Vs. Assistant Commissioner of Income Tax (ITAT Bangalore)

We find force in the submission of the learned counsel that payments to the government are to be paid once the mining lease is obtained and such payments are governed by various Acts along with the Apex Court making a ruling for State Governments to participate in the granting of mining lease by recovering compensation when their forests ...

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Tribunal cannot dismiss appeal only for want of prosecution without same being decided on merit

Sanket Estate & Finance Pvt Ltd Vs Commissioner of Income Tax (Gujarat High Court)

Rule 24 of the Income Tax Rules, 1963 makes it abundantly clear that the Tribunal cannot dismiss the appeal without adverting to the merits. Even on the day on which the hearing is adjourned, the appellant chose not to appear in person or through an authorised representative. It is incumbent upon the Tribunal to dispose of the appeal on m...

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Gift not bogus if Assessee proves identity / creditworthiness of donor & genuineness of transaction

Commissioner of Income Tax VI Vs Bhanwarlal Sharma (Gujarat High Court)

In the instant case, as can be noted from the findings of the Tribunal, Assessing Officer had not summoned any of the donors. However, it had issued the letters under section 133(6) of the Act. Assessing Officer had also called for confirmation letters which were received by it. The assessee also had furnished all other requisite document...

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HC upheld addition for unaccounted stock, rejects plea of stock borrowal from Sister Concern

D.B. Bandodkar & Sons (P.) Ltd. Vs Assistant Commissioner of Income-tax (Bombay High Court)

In survey, an unaccounted stock was found lying at the railway plot of the assessee. The assessee claimed that the said stock was borrowed by it from sister concern OGPL to meet its export requirements for shipment in the month of March, 2005 and said quantities were returned to OGPL on purchase of order in the last weeks of March, 2005 a...

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Reassessment Notice for mere change of opinion is impermissible in law

NTPC Ltd. Vs Deputy Commissioner of Income Tax (Delhi High Court)

The learned counsel for the respondent had sought to argue that the present writ petitions were different and distinct from the earlier writ petition which resulted in the judgment dated 10.01.2013 inasmuch as in respect of three of the years in question i.e., assessment years 2001-02 to 2003-04, the issue of the proviso to Section 147 pe...

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CBDT notifies ITR for A.Y. 2013-14 / FY 2012-13

Notification No. 34/2013 - Income Tax (01/05/2013)

Notification No. 34/2013 - Income Tax In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2013....

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