In absence of any finding recorded in the assessment order or in the penalty order to the effect that repayment of loans/ deposit was not under a bonafide transaction and was made with a view to evade tax, the cause shown by the assessee was a reasonable cause and in the view of section 273B no penalty could be imposed.
The ITAT considered the submissions and concluded that the AO could not have brought to tax the amounts that he ultimately did merely based upon the DVO’s report in the absence of any material pointing to under valuation.
Related party transactions (RPT) is one of the important section in Companies Act,2013 which have been in highlight since its notification due to its overwhelming provisions. MCA has issued many circulars and orders relating to RPT. SEBI has also amended Clause 49 for RPT’s vide CIRCULAR No. CIR/CFD/POLICY CELL/7/2014, Dated- September 15, 2014 to align it with Companies Act but there are some places where Clause 49 seems to be more stringent than Companies Act which we are going to discuss in this article.
Sri Damodarlal Badruka Vs. ITO (Andhra Pradesh High Court) It is well settled that once an assessment is re-opened by virtue of the order passed by CIT under Section 263 of the Act, the initial order of assessment ceases to be operative.
