"27 June 2015" Archive

14A : No disallowance of expenditure can be made on estimate basis against exempt income

Kulgam Holdings P. Ltd. Vs ACIT (ITAT Ahmedabad)

The Revenue has not brought any positive material on record to show that the assessee actually incurred any expenses in relation to earning of exempt income. In our considered view, before making disallowance under section 14A, it was imperative on the part of the Revenue...

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Expense cannot be held unproved, un-genuine and bogus sham for merely because it remain unpaid on B/s Date

M/s.Ambica Foundary Vs ACIT (ITAT Ahmedabad)

Simply because outstanding liability at the end of the year is comparatively higher, considering the amount of expenditure incurred during the year, does not empower the AO to disallow the actual outstanding liability unless it is found that the liability shown was not genuine. ...

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In case of rejection of books of account profit ratio applied for earlier year should be considered

Shri Raghvendra Pratap Singh Vs DCIT (ITAT Lucknow)

Whether profit % can be applied on estimate basis if books of accounts are rejected, without reference to earlier year’s profit % where books were accounts were not rejected or whether the Assessing Officer is justified in Assessing the profit at a rate higher than earlier year in which profit was assessed by Assessing officer without s...

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Even if Assessee fails to appear or attend his case CIT (A) should decide appeal on merits

Shri Poojan Kinnerkumar Patel vs ACIT (ITAT Ahmedabad)

In our considered view, even if the assessee failed to put-in appearance, it is the duty of the CIT(A) to dispose of the appeal on merit on the basis of material available on record. Our view finds support from the decision of the Hon’ble Delhi High Court in the case of VODAFONE ESSAR LTD Vs. DISPUTE RESOLUTION PANEL–II & Ors. in W.P....

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Books cannot be rejected without verifying, merely on the ground that its afterthought of the Assessee

Shri Bhavesh I.Gandhi Vs ITO (ITAT Ahmedabad)

It was incumbent upon the Assessing Officer to examine the books of accounts with the related evidences and documents and thereafter should have arrived at a decision. Without verification of books of accounts produced before him and bringing any material on record, the Assessing Officer was not justified in rejecting the books of account...

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If once income is already assessed by AO u/s. 44AE no separate addition to income can be made

Shri Amitkumar Hasmukhbhai Shah Vs DCIT (ITAT Ahmedabad)

The contention of the assessee is that he has shown income from truck under section 44AE of Rs. 2,01,000/- which includes income of Rs.1,07,890/- from M/s. Chandan Carriers, and therefore, no separate addition of Rs.1,07,890/- is warranted. None of the lower authorities has verified this contention of the assessee. ...

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271(1)(c) : Penalty cannot be imposed merely because assessee didn’t objected to addition

Consolidated Finvest & Holdings Ltd. Vs ACIT (ITAT Delhi)

However, it is a well-settled proposition that the quantum of penalty proceedings are separate proceedings and penalty cannot be imposed merely on the ground that the assessee did not challenge or agitate the issue before higher forum and accepted the disallowance made by the AO. ...

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Pre-liquidation period assessment cannot be completed ex-parte during liquidation period

Asian Consolidated Industries Ltd. Vs ACIT (ITAT Delhi)

Whether assessment related to pre-liquidation period cannot be done ex-parte during the period of liquidation without giving reasonable opportunity of being heard to ex-management? ...

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Impact of Budget Proposals on Delhi Value Added Tax Presented On 25-06-2015

There is no upward change in rate of taxes under Delhi VAT as Hon’ble Finance Minister said that I am not proposing any enhancement in tax rates. We believe that tax collection will improve with effective and efficient tax administration. This Government is committed to simplifying the VAT structure to make it easier for the trader comm...

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Posted Under: Income Tax |

क्या 1 अप्रैल 2016 से लग पायेगा जी.एस.टी – सी.ए. सुधीर हालाखंडी

सरकार भारत में गुड्स एंड सर्विस टैक्स दिनांक 01/04/2016 से लाने की घोषणा कर चुकी है और इसके लिए सरकारी स्तर पर तैयारी भी चल रही है . क्या हो...

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Posted Under: Income Tax |

CIT(A) has to follow directions given by the Tribunal, violation of directions can be treated as contempt of Court

DCIT Vs.Sh. Sham Sundar Sharma (ITAT Chandigarh)

The orders passed by the Tribunal are binding on all the revenue authorities functioning under the jurisdiction of the Tribunal. The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. ...

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Questionnaire on FLA Return (Foreign Liabilities And Assets)

Q.1 Which Companies Are Eligible Are Eligible To File FLA Return? A: The Annual return of foreign liabilities and assets ( FLA) is required to be submitted by all the Indian Companies which have received FDI and /or made FDI abroad in the previous year (S) including the current year i.e. who holds foreign assets or liabilities in their B...

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Posted Under: Income Tax |

Service tax SCN, that fails to identify specific taxable service is liable to be Quashed

M/s Shubham Electricals Vs CST & ST, Rohtak (CESTAT Delhi)

In the entirety of the show cause notice there is not a single assertion proposing to levy and collect service tax on the basis of any specified taxable services allegedly rendered by the appellant except the several alternative taxable services speculated to have been provided. ...

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Applicability Of Cash Flow Statement to Private Companies under Companies Act, 2013

The Company act 1956 didn’t include cash flow statement in the Definition of Financial statement. The Applicability of Cash Flow Statements governed by the Companies (Accounting Standards) Rules, 2006. Enterprises which fall in any one or more of the following categories, at any time during the accounting period, are classified as Level...

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Posted Under: Income Tax |

Important point to be consider in-case directors having frequent visit outside India

As per Sec 149(3) of the companies Act 2013 – Every company shall have at least one director who has stayed in India for a total period of not less than one hundred and eighty-two days in the previous calendar year. This provision applies to all Companies including private companies....

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Posted Under: Income Tax |

Interest Income due to delay in actual start of Project is assessable as Income from other sources

M/s HP Power Transmission Corporation Ltd. Vs The ACIT (ITAT Chandigarh)

The test to decide, as to whether the income is revenue in nature or capital receipt, is that if the funds borrowed are just surplus and by virtue of that circumstances they are invested in fixed deposits the income earned in the form of interest will be taxable under the head 'Income from other sources' [as per ratios of SC decision in 2...

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When order in quantum has been decided in favour of assessee penalty cannot be levied u/s 271(1)(c)

JCIT Vs M/S Nitya Educational Society (ITAT Delhi)

Though in these case the appeal in quantum was decided in favour of the assessee and thereby penalty u/s 271(1)(c) was deleted, there are also cases where the appeal in quantum was decided by Tribunal against the assessee and the appeal was pending before High Court for disposal but High Court had admitted the appeal, even in that case, i...

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TDS claimed by the assessee can be treated as income of the assessee if the same has been taxed on substantive basis

ACIT Vs M/s IBN Media & Software Limited (ITAT Lucknow)

Protective assessment made by the Assessing Officer in the present case cannot be sustained because substantive addition has been made in the hands of IBN-18 Broadcast and therefore, if any addition is made in the present case, it will amount to double addition. ...

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Allowability of deduction U/s. 80IB(10) on construction of units more than the permitted

ITO Vs M/s. Nirman Enterprise (ITAT Ahmedabad)

The assessee has filed its return of income on 31-12-2006 declaring total income at Rs. Nil. The assessee had claimed deduction at Rs. 1,91,400/- u/s. 80IB(10) of the income tax act. The Point of issue was the assessee has carried out the construction in violation of the original plan passed by AUDA and therefore violated the condition of...

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Impact of Service Tax on Uber, Ola!!

The dawn of Cab aggregators Uber, Ola, etc.., has been seen in India in recent times, but the laws pertaining to service tax in the aggregators model of service was in gray. The aggregator model of service is new in India and there has been a lack of clarity about service tax rules that must apply toward Uber, Ola, etc......

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Posted Under: Income Tax |

CBDT notifies Nature of business relationship with Clients which CA can have

(i) commercial transactions which are in the nature of professional services permitted to be rendered by an auditor or audit firm under the Act and the Chartered Accountants Act, 1949 (38 of 1949) and the rules or the regulations made under those Acts; NOTIFICATION NO. 50/2015-INCOME TAX, Dated: June 24, 2015 ...

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Posted Under: Income Tax |

ICAI allows to complete Advanced ITT Course after Final Examination

Students who have registered for Practical Training on or after February 1, 2013 and are eligible to appear in Final Examinations from November, 2015, are allowed to complete the Advanced ITT course after the Final Examination but before enrolling as a member of the Institute....

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Posted Under: Income Tax |

CSR- History, Consequence for non compliance, Benefit and Judicial Views

Even after six decades of Independence, India is still an under-developed country. Still problems like hunger, poverty, illiteracy, ill-health and malnutrition are prevalent in the society. There is need to look after the socio economic problems prevailing in the society not only by the individuals and Non Governmental Organization...

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Posted Under: Income Tax |

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