"26 October 2015" Archive

GST– Impact on Supply Chain Management

India is all set to introduce a tax reform—the goods and services tax (GST). Apart from creating a unified market across India, GST will help make India’s manufacturing competitive by cutting high logistics and warehousing costs. A supply chain is the network of all the individuals, organizations, resources, activities and technology ...

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30 FAQ’s on LBT Exemption in Maharashtra

Please find below a compilation of queries received by us in response to Notes related to LBT Exemption put up on our website along with related opinions from our side . While care has been taken to comprehend the issue alongside applicable legal provisions, it is submitted that considering the fact of frequent changes in LBT laws and lik...

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Section 147 can be invoked only if AO has reason to believe that taxable income has escaped assessment

Oriental Insurance Company Vs CIT (Delhi High Court)

In case of Oriental Insurance Company vs. CIT, Delhi High Court held that AO could not assume jurisdiction to reopen assessment u/s 147, until his reasons of belief have a ‘direct nexus’ and a ‘live link’ with the opinion formed by him, that Taxable Income of Assessee has escaped assessment....

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Sec.292BB- Service of Notice- Objection raised prior to completion of reassessment is valid

Commissioner Of Income Tax Vs Chetan Gupta (Delhi High Court)

In case of CIT Vs. Chetan Gupta, Delhi High Court held that where objection to effect, that notice for reassessment was not served on his last known address of assessee, was taken prior to completion of reassessment...

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In absence of incriminating material found during search, reference to DVO is invalid

Commissioner Of Income Tax Vs Anil Arora (Delhi High Court)

Delhi High Court in case of Commissioner Of Income Tax Vs. Anil Arora held that reference to DVO for valuation of a property itself was invalid ,when AO’s conclusion/reasoning was not based on any material discovered or seized during the search operations. ...

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Amount received by a prospective employee as compensation for denial of employment is capital receipt

Commissioner Of Income Tax Vs Pritam Das Narang (Delhi High Court)

Delhi High Court in case of CIT vs Pritam Das Narang held that Amount received by a prospective employee ‘as compensation for denial of employment,’ is a capital receipt . In case of assessee , where there was no commencement of employment...

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Capital gain benefit u/s 54F allowed even if construction of residential house not fully completed in 3 years

The CIT & ITO Vs Smt. B S Shanthakumari (Karnataka High Court)

Karnataka High Court held In the case of The CIT & ITO vs. Smt. B S Shanthakumari that the purpose of provisions u/s 54F is to ensure that assessee who received capital gains would invest the same by constructing a residential house and once it is established that consideration so received on transfer ...

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Explanation 1 to section 271(1)(c) not applies to ‘furnishing inaccurate particulars of income’

Tristar Intech Pvt. Ltd. Vs ACIT (ITAT Delhi)

ITAT New Delhi held In the case of Tristar Intech Pvt. Ltd. vs. ACIT that for levy of penalty u/s 271(1)(c) there should be concealment of income on the part of assessee. In the given case AO has initiated penalty proceeding u/s 271(1)(c)...

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Section 48- AO cannot replace Consideration agreed with Market Value in Calculation of Capital Gain

Venus Financial Services Ltd. Vs ACIT (ITAT Delhi)

ITAT New Delhi held In the case of Venus Financial Services Ltd. vs. ACIT that the Assessing Officer has no power to replace the value of the consideration agreed between the parties with any fair market value or estimation....

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Penalty u/s 271 (1) (c) is not maintainable if charges are not specific– ITAT

Shri Hafeez S Contractor Vs ACIT (ITAT Mumbai)

Mumbai ITAT held In the case of Shri Hafeez S Contractor vs. ACIT that penalty u/s 271(1) (c) cannot be imposed in those cases where no specific charges are mentioned in penalty notice. In the given case the AO has not specified that as to which limb the notice was issued...

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