"03 October 2015" Archive

Disallowance for bogus purchases should be restricted to reasonable profit % of such Purchases

M/s Sharma East India Hospitals & Medical Research Ltd Vs DCIT (ITAT Jaipur)

In the case of M/s Sharma East India Hospitals & Medical Research Ltd vs. DCIT, ITAT Jaipur held that disallowance out of unverifiable purchases may be restricted to 15% following the consolidated order in the cases of Sh. Anuj Kumar Varshney and ors. Vs. ITO, ITA No. 187/JP/2012 ...

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Penalty cannot be imposed for mere non acceptance of evidences during Quantum Assessment

M/s. Blessing Construction Vs ITO (ITAT Ahmedabad)

In the case of M/s Blessing Construction vs. ITO The Ahmedabad Tribunal has held Merely because the Assessing Officer or the ITAT did not consider the evidences to be sufficient for the purpose of explaining the cash credit u/s 68, it will not automatically lead to levy of penalty u/s 271(1)(c)....

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TDS on exempt income allowable in the year of deduction of Tax

Arvind Murjani Brands Pvt Ltd Vs ACIT (ITAT Ahmedabad)

Brief of the case- ITAT Ahmedabad held in the case of Arvind Murjani Brands Pvt Ltd vs. ACIT that As the amount on which tax was deducted at source is not at all chargeable to tax, then the command of section 199 will have to be harmoniously and pragmatically read as providing...

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Character of land at the time of sale relevant to consider nature of income, period of holding not relevant

Smt. C. Vijay Kumari Vs ITO (ITAT Hyderabad)

In the case of Smt. C. Vijay Kumari vs.ITO the Hyderabad ITAT has held that addition made by AO to the total income of the assessee on account of profit arising from sale of agricultural land treating the same as business income instead of capital gains claimed by the assessee as exempt ...

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Disallowance of interest on presumption of use in capital work-in-progress not sustainable

JCIT Vs Riddhi Siddhi Gluco Biols Ltd (ITAT Ahmedabad)

In case of JCIT vs. Riddhi Siddhi Gluco Biols Ltd. The Ahmedabad tribunal has held that Interest free funds available with assessee was much more than the interest free loan given by the assessee. A.O made proportionate disallowance merely on the presumption that the proportionate borrowed money must have been utilized for investment in ...

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Deduction U/s. 10A cannot be disallowed for mere belated receipt of export proceeds

ITO Vs M/s.Testree Solutions Pvt. Ltd. (ITAT Bangalore)

In case of ITO VS. M/s.Testree Solutions Pvt. Ltd, ITAT Bangalore held that the export proceeds received after the expiry of the period of six months from the end of the relevant previous year was to be allowed as a deduction u/s 10A ....

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No addition for expense shown in projected P&L A/c without showing corroborative evidences

DCIT Vs M/s. Vaghasia Associates (ITAT Ahmedabad)

In the case of DCIT vs. M/s. Vaghasia Associates, ITAT Ahmedabad held that merely because some estimated labour payment was written on the projected profit & loss account, the addition for unexplained expenditure cannot be made....

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Wealth Tax Exemption for Commercial property available if used for business by others

ACIT Vs M/s. Prasad Machinery Pvt. Ltd. (ITAT Ahmedabad)

In case of ACIT vs. M/s. Prasad Machinery Pvt. Ltd. (ITAT Ahmedabad) assessee was owner of factory building. It allotted certain space therein to its sister concern for enabling it to carry on their business in lieu of charging rent....

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Functionally dissimilar company cannot be considered as comparable for computation of ALP

M/s. AT & T Global Business Services India Pvt.Ltd. Vs ITO (ITAT Bangalore)

In case of M/s. AT & T Global Business Services India Pvt.Ltd. VS. ITO , assessee-company, engaged in business of software development and providing application services to its AE. TPO on basis of mean margin earned by his own set of comparables...

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Business Transactions/Salary do Not come within purview of Section 2(22)(e)

Shri Kaushik B. Patel Vs D.C.I.T Mehsana Circle, Mehsana (ITAT Ahmedabad)

In the case of Shri Kaushik B. Patel Vs. D.C.I.T it was held by ITAT Ahmedabad that routine business transactions/salary payments do not fall under the purview of Deemed Dividend u/s 2(22)(e) of the Act. In this case the assessee’s books nowhere treat the sums received as loan and advances to have been received from the said Company. ...

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