"16 February 2014" Archive

Penalty u/s 271D cannot be levied for cash deposited in bank by company director for making urgent payments to suppliers

Makewell Inducto Cast Pvt. Ltd. Vs JCIT (ITAT Ahmedabad)

Assessee is a private limited company engaged in the business of manufacturing of Casting. During the course of assessment proceedings AO noticed that Assessee has received cash loans on various days aggregating to Rs 8,89,000/- from Shri Ramusingh Badoria, the Director, of the Assessee. ...

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S. 41(1) Merely because liabilities were outstanding for last many years, it cannot be said that said liabilities ceased to exist

ACIT Vs Gopal Fabrics (ITAT Ahmedabad)

The Tribunal was justified in taking the view that the assessee had continued to show the admitted liabilities in its balance sheet, the same could not be treated as cessation of liabilities. Merely because the liabilities were outstanding for last many years, it could not be inferred that the said liabilities has ceased to exist. ...

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Interest cannot be disallowed if huge interest free funds were available without any interest

ACIT Vs Gopal Fabrics (ITAT Ahmedabad)

Where huge funds were available without any interest liability with assessee and there was no evidence to hold that borrowed money was utilized for purpose of advance to sister concerns, no disallowance of interest was warranted. ...

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No Proportionate disallowance of Interest u/s 14A if investments in shares been made from interest free funds

DCIT Vs Nandan Exim Ltd (ITAT Ahmedabad)

We find that CIT(A) while deleting the addition has noted that the Assessee was having sufficient interest free funds and therefore there was no justification for presuming that any part of interest bearing loan has been utilized for the purpose of making investments. ...

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No disallowance u/s 14A r.w. Rule 8D if interest income exceeds interest expenditure

Safal Reality P. Ltd.  Vs ACIT  (ITAT Ahmedabad)

The assessee company is a builder and developer of residential and commercial projects. It was noted by the AO that the assessee company is a partner in several “partnership firms”. The AO had made a list of all those firms along with profit sharing ratio of the assessee in those firms....

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Deduction U/s. 80IB cannot be denied for mere non-filing of Audit Report alongwith return of income

DCIT  Vs Anoli Holdings Pvt. Ltd. (ITAT Ahmdabad)

Requirement of filing audit report alongwith return of income is procedural in nature and audit report filed at the assessment stage shall be construed as sufficient compliance of the same for claiming deduction u/s 80IB....

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