"30 June 2015" Archive

Estate of deceased person can be assessed by adopting the procedure prescribed u/s.159

Smt. Jharna Ghosh v. ITO (ITAT Kolkata)

The Hon’ble Tribunal held that the property in question was sold by assessee’s late husband before his death and the receipts out of the sale proceeds are deposited in a joint bank account that of assessee and her late husband. Once this is the position the entire receipts are to be assessed in the hands of late husband although throu...

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Sale proceeds of Flags on Women’s Day Pursuant to govt. order are capital receipts

Kittur Rani Channamma Vs ACIT (ITAT Panaji)

Assessing Officer found that the assessee has received a sum of Rs. 29,03,109/- on account of sale of Women’s Day Flags and the same has been credited to the capital fund and he treated the same as revenue receipt. On Appeal Honourable ITAT has held that sale proceeds of flags on Women’s Day are in the nature of capital receipts. ...

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Notification No. 55/2015-Income Tax, Dated: 30.06.2015

Notification No. 55/2015-Income Tax (30/06/2015)

Under the project only product neutral training will be given except a short session on company's profile and prixiucts. Further, the farmers benefitted under the project will have the privilege of supplying their produce to any other entity....

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Orders passed U/s. 201(1)/201(1A) should comply by time limit prescribed under proviso to section 201(3)

M/s. Vamona Developers Pvt. Ltd. Vs DCIT (ITAT Pune)

Appeals filed by the assessee were withdrawn. The Revenue filed the appeal. Facts of the case were that the assessee company was engaged in the business of running a mall. A TDS survey was conducted on 15-11-2012 during which it was observed that the assessee company had deducted tax on professional fees u/s.194J at lower rate than as req...

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Penalty proceedings can’t be initiated when there is reasonable cause of not complying with section 269S

Sri Venkateswara Reddy Kasireddy Vs ITO (ITAT Hyderabad)

During the course of the assessment proceedings, it was noticed that the assessee had received a loan of Rs.30.00 lakhs in cash on 10.05.2009 thereby violating the provisions of section 269S of the I.T. Act. Accordingly, penalty notice u/s 271D of the I.T. Act was issued to the assessee on 25.04.2013 which was duly served on the assessee....

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Seizure of blank cheques during search can’t be treated as an unexplained investments in absence of Additional Evidence

Sri Laxmi Narayan Agarwal Vs ACIT (ITAT Hyderabad)

The Hon’ble Tribunal held that all the persons questioned have confirmed that cheques have been handed over to the appellant only as a measure of security for supply of scrap or for the purpose of obtaining the loan, but all of them have denied having obtained any loan from the appellant. The statements given by those people remains unc...

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Passing of ex-parte without giving hearing to Assessee would constitute violation of natural Justice

Shri Sanjay Gupta Vs ITO (ITAT Delhi)

When reassessment proceedings were started and ended by passing a reassessment order u/s 147/143(3) of the Act, then original assessment order passed u/s 143(3) of the Act and appeal against that order does not survive for adjudication and the same was correctly dismissed by the CIT(A). ...

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TDS not deductible on Shipment Charges Paid as Reimbursement U/S 194C

M/s. Cipro Pharmaceuticals Vs A.C.I.T. (ITAT Hyderabad)

The Hon’ble Tribunal agreeing to the contentions of the assessee held that regarding GBR, payments made to them were only towards reimbursement of shipment charges and therefore, no tax was deducted at source. Assessee did not attract the provisions of section 40(a)(ia) of the Act as reimbursement of expenses do not consist the income o...

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Advance received can’t be termed as a dividend U/s. 2(22)(e) when there was no accumulated profits available

Shri Ch. Krishna Murthy Vs D.C.I.T. (ITAT Hyderabad)

The Hon’ble Tribunal while relying on the Judgment of co-ordinate Bench in the Assessee’s own case which was having similar facts in which it was observed that the advance was treated as deemed dividend u/s 2(22)(e) because it was converted as advance in the name of assessee merely through book entries and actually no money ...

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All transactions in different bank accounts have to be taken in consideration while doing the Assessment

Shri Sama Srinivas Reddy Vs ITO (ITAT Hyderabad)

The CIT(A) remanded the matter and according to the remand report cash deposits were not explainable as there was cash in hand. Also, it was came to known that Assessee maintained one more account in Vijaya Bank which was not shown to the Department. Regarding the rental receipts it was observed by the AO ...

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Reopening of Assessment u/s 147 cannot be allowed if there is any subsequent change in Law

ACIT Vs Sahara States (ITAT Hyderabad)

Revenue submitted that there was no change of opinion as contended by assessee and accepted by the Ld.CIT(A) as assessee has not furnished 'Project Completion Certificate' nor furnished the complete details of AOP as pointed out by the AO. It was the submission that the original project has started way back in 1996 and therefore...

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Orders u/s 263 could be passed only after taking into consideration explanation offered by the Assessee

Mr. Kailash Chand Gupta Vs CIT (ITAT Hyderabad)

Impugned order has been passed by the Ld. CIT under section 263 without considering the explanation offered by the assessee and without applying his mind. The failure of the Ld. CIT, however, does not constitute any legal infirmity to make the order passed by him under section 263 invalid...

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Collection of Instruments- Local and Outstation Cheques

Updated on 30/06/2015 Q.1 What is the timeline for realization of local and outstation cheques and compensation payable if there are delays in affording credit? Ans. Local Cheques Local cheques are payable within the jurisdiction of the clearing house and will be presented through the clearing system prevailing at the centre. Credit arisi...

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Posted Under: Income Tax |

US-Dollar Cheque Collection

Updated on 30/06/2015 One of the services rendered by banks as part of their normal banking operations is collection of cheques deposited by their customers, some of which, could also be drawn or payable on banks that are outside the country. Such cheques are called foreign currency cheques and, presently, a significant part of these [&he...

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Posted Under: Income Tax |

HUF will be treated as Relative u/s 56(2)(vi)

Mr. Biravelli Bhaskar Vs ITO (ITAT Hyderabad)

The expression HUF must be construed in the sense in which it is understood under the Hindu law HUF constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters. ...

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Duty drawback is to be allowed under section 10B

Mohini Originals v. ITO (ITAT Delhi)

Mohini Originals v. ITO (ITAT Delhi) Facts of the Case The Assessee was an EOU filed its return of income, where AO observed that they have claimed exemption under section 10B which was allowed at the time of Assessment. Deduction on duty drawback was also allowed. However, in the proceedings for the next year A.O. […]...

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Delay could be condoned on the ground of Wrong Advice of Counsel

Madan Mohan Sharma Vs ITO (ITAT Chandigarh)

Tribunal held that in order to impart justice to the employees/assesses the delay deserves to be condoned. Accordingly, the Tribunal condoned the delay in filing the appeals. Regarding the issue of Section 10(10)(C), the Hon’ble Tribunal allowed the claim of the assessee holding that the authorities below were not justified in disallowi...

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No addition is allowed if the minor difference is only 3.24% between declaration of Assessee & Calculation made by DVO

DCIT Vs Sanjay Seth (ITAT Lucknow)

The Hon’ble Tribunal held that the DVO has estimated the cost of investment at Rs.3,58,39,100/- against the cost of investment declared by the assessee at Rs.3,47,12,678/-. Therefore, the difference is about 3.24% and for this minor difference, no addition is called for. Since the difference is very nominal, no addition is called for in...

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Statement U/s. 132(4) without any supporting material does not have any evidentiary value

M/s. Avishkar Infrastructure Pvt. Ltd. Vs DCIT (ITAT Mumbai)

The sole basis of the Department to assess profit of Rs.70.00 lacs is based upon the statement recorded under section 132(4) of the Act. It is a matter of fact that by the time statement was recorded, the entire project was not sold by the assessee. Only two shops were sold....

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Deduction U/s. 10B is allowed only on “undertaking” not on “whole Business”

M/s. Unicorn Natural Products Limited Vs DCIT (ITAT Hyderabad)

The Hon’ble Tribunal observed that the company has maintained and submitted separate set of accounts. There was a confusion between the total turnover of the business and total turnover of the undertaking. The Hon’ble Tribunal held that in the proviso to section 10B, there is reference to computation of total income of Undertaking....

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Retention money taxable as when the right to receive the same accrues

M/s. Techno Electric & Engineering Co. Ltd. Vs DCIT (ITAT Kolkata)

The assessee was involved in power sector contracts and as per the terms and conditions of such work contract, an amount of 5 to 10% is used to deducted from the bills raised as retention money which would be payable to the assessee after successful completion of the commissioning of the project. ...

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Second proviso to section 40(a)(ia) is curative and has retrospective effect, Appeal allowed

M/s. J. Ahmed Construction Pvt. Ltd. Vs DCIT (ITAT Kolkata)

Second proviso to section 40(a)(ia) provides that where the assessee is not deemed to be assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by th...

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Self serving recitals cannot be accepted as true Unless the assessee proves it

Pankaj Mahajan Vs ITO (ITAT Delhi)

In the present case, AO come to know about cash deposit of Rs.13.01 Lac by the assessee through AIR Information. On being called upon to explain the source of such cash deposit, assessee submitted that he has inherited a sum of Rs.13 lac from his mother who has died on 14-08-2006 and produced copy of her income tax return,...

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Some important aspects of allowability of business claim and concealment of penalty

IndusInd Bank Ltd. Vs DCIT (ITAT Mumbai)

Investments are made in Govt. securities, debentures, bonds having fixed rate of return. Assessee is maintaining books of account on mercantile system i.e, on accrual basis. Whether Payment of Interest accrues on day to day basis? Referring to the decision of tribunal, high-court and Supreme Court in various cases sighted...

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Review u/s 254(2) only if there is a mistake apparent from the record

M/s. Janus Investment Pvt. Ltd. Vs ITO (ITAT Mumbai)

If the AO had reopened the assessment and made a disallowance and these facts could affect the outcome of the issue, the AO should appear before the FAA to file an explanation about the chronology of events. But, in any manner the subsequent decision taken by the AO cannot be held to be a mistake apparent from the record....

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Issue of ‘treatment of forfeiture of guarantee amount given for purchase of machinery’ , ‘validity of entertaining Revised claim and disallowance u/s 14A

Skol Breweries Ltd., Mumbai Vs Department Of Income Tax (ITAT Mumbai)

The assessee company rather assumed the risk of taking the liability of another company which cannot be said to be for business purpose of the assessee. Hence, the activity of advancing the money and paying the debt of the M/s. Vinedale Ltd. which was on account of purchase of machinery being capital asset, cannot be said to be the busine...

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Levy of Penalty u/s 221 by A.O. is discretionary and can be waived off if Good and sufficient reasons exists

Shri Chandak Krishnagopal Motilal Vs ITO (ITAT Mumbai)

In the instant case, the assessee has proved beyond doubt that the default by him in not paying the self-assessment tax is not wilful and it was beyond his control as there was no sufficient money available with him to pay the self-assessment tax especially when the income is mainly from short term and long term capital gain....

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Current year income can’t be disturbed on account of difference in opening balance

Sri Laxmi Narayan agarwal Vs ACIT (ITAT Hyderabad)

Lower authorities have overlooked the principle that the opening balance cannot be disturbed this year. The authorities can only reopen for the earlier year. In another case ACIT Vs. Smt. N. Sasikala (2005) 92 TTJ (Chennai) 119 it was held that If the Department doubted the availability of cash balance, it can go to the concerned assessme...

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Provisions relating to import of certain categories of processed metallic scrap

Public Notice No. 23/2015-20 (30/06/2015)

Provision relating to import of certain categories of processed metallic scrap, at designated ports having Scanner/Radiological Detection Equipments (RDEs), has been notified. Three new Appendices 2G-1, 2-H-1 and 2N-2 are inserted in the Appendices and Aayat Niryat Forms of FTP, 2015-20....

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Prohibition on Trade with ISIS, ISIL, Al Nusrah Front and others associated with Al Qaida

Notification No. 14/2015-2020 (30/06/2015)

Trade with ISIL and related terrorist organisations in oil and oil products (hydrocarbons) and items of cultural, scientific and religious importance is Prohibited. Prohibition on Trade with ISIS, ISIL, Al Nusrah Front [ANF] and others associated with Al Qaida....

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Notification No. 65/2015-Customs (N. T.), Dated : June 30, 2015

Notification No. 65/2015-Customs (N. T.) (30/06/2015)

Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001, vide number S.O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 61/2015-Customs (N.T.), dated the 15th Ju...

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Extension of date for online filing of Form DP-I upto 31/08/2015

F.3(352)Policy/VAT/2013/346-357 (30/06/2015)

In partial modification of Notification No.F.3(352)/Policy/VAT/2013/936-47 dated 31/03/15 regarding submission of information online in Form DP-1, I, Sanjeev Khirwar, Commissioner, Value Added Tax, Government of National Capital Territory of Delhi, in exercise of the powers conferred on me by sub-section(1) read with sub-section (2) and (...

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Notification No. 64/2015-Customs (N.T.) Dated: 30/06/2015

Notification No. 64/2015-Customs (N.T.) (30/06/2015)

In exercise of the powers conferred by clause (a) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs, hereby makes the following further amendments in the Notification of the Government of India in the Ministry ...

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Recovery of disputed dues during pendency of Appeal with stay Petition

Edelweiss Commodities Services Ltd Vs Commercial Tax Officer & Ors. (Madras High Court)

In another case of recovery of disputed dues by the Commercial Taxes department, by attaching the bank account of the assessee, during pendency of revision petition, the Hon 'ble Madras High Court has directed the revision authority to dispose of the revision petition along with stay application within four weeks and kept the recovery in...

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Posted Under: Income Tax |

CARO, 2015- Practical aspects and Key Points

In this article I will be discussing all aspects of CARO, 2015, its applicability and its reporting requirements as well. First of all I would like to draw your attention to Section 14(11) of Companies Act, 2013 from where CG used the power and published CARO, 2013....

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Posted Under: Income Tax |

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