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Archive: 04 July 2015

Posts in 04 July 2015

Penalty u/s 272B cannot be imposed if there was reasonable cause of failure to quote valid PANs

July 4, 2015 831 Views 0 comment Print

In the instant case, there was a reasonable cause in the assessee not mentioning the correct PANs in respect of a few deductees at the time of originally filing e-TDS quarterly statement of deduction of tax in Form No.26Q, which were in fact, not available with the assessee at the material time.

Transfer to special reserve U/s. 45-IC of RBI Act is a part of book profit U/s. 115JB

July 4, 2015 5534 Views 0 comment Print

The reserve, which is required to be created under Section 45-IC, is out of the profits earned by a non-banking financial institution. It is not an amount diverted at source by overriding title. The Reserve Bank of India Act, 1934 can permit appropriation in respect of the said reserve.

Reassessment Notice U/s. 148 void even if issued by authorities who rank higher than competent authority

July 4, 2015 1754 Views 0 comment Print

The Revenue’s argument seems plausible and even logical because the Commissioner or a Chief Commissioner is unarguably ranked higher in authority than a Joint Commissioner. Yet at the same time

Reassessment u/s 147 valid if assesse had deemed notice of reassessment proceedings

July 4, 2015 862 Views 0 comment Print

In the present case, there is no doubt at all that the assessee cooperated and appeared both in the assessment as well as reassessment proceedings. Therefore, it had deemed notice of the re-assessment proceedings.

Share Application money cannot be added to Income if Assessee discharges the onus cast on him

July 4, 2015 1463 Views 0 comment Print

In the present instance, the AO apparently had the books and all the relevant information pertaining to the share applicants. CIT v. Lovely Exports (P) Ltd. 2008 (216) CTR (SC) 195 directs that whilst the initial onus to prove the identity of a third party,

Addition cannot be made merely on the facts that assesse had filed a petition to claim the same

July 4, 2015 544 Views 0 comment Print

The assessee submitted that with respect to the addition of ₹24.3 crores, both the CIT(Appeals) and the ITAT had noticed that the matter with respect to this liability was sub-judice and pending adjudication in the Company Court which since by its interim judgment dated 25.4.2013

Assessee cannot take advantage of accepted accounting for other periods after voluntarily disclosure of receipt of certain amount

July 4, 2015 429 Views 0 comment Print

Assessee relied upon the assessment order of AY 2008-09 before CIT (A) in which the accounting to assessee was accepted by revenue. CIT (A) took cognizance of that order pertaining to AY 2008-09 and quantified net profit of assessee retail business @ 5%. ITAT also confirmed the order of CIT (A).

Section 124(3) stipulates a bar to any contention about lack of jurisdiction of an AO

July 4, 2015 5901 Views 0 comment Print

It is provided in section 124 (3) that no person shall entitled to call in question the jurisdiction of AO after the expiry of the time allowed by the notice under section 148 for the making of the return or by the notice under the first proviso to section 144 to show cause

Assessment is liable to be quashed in absence of issuance of notice u/s 143 (2)

July 4, 2015 2723 Views 0 comment Print

Notice u/s 143 (2) is a right of assessee to be heard before any income tax authority. Statutory notices are the first step to initiate any proceeding under income-tax act. Therefore, failure in issuance of notice u/s 143 (2) is enough to hold assessment bad-in-law.

Interest earned on Escrow Account shall be treated as income from business not from other sources.

July 4, 2015 5863 Views 0 comment Print

Whether interest income earned on amount in Escrow Account can be treated as Income from other sources instead of income from business.

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July 2015