"16 January 2016" Archive

Disallowance u/s 14A gets attracted even if a mix of interest bearing & non-bearing funds used to make investments earning exempt income

M/s Thermotech Engineering Vs ACIT (ITAT Pune)

The ITAT bench of Pune in the case of M/s Thermotech Engineering held that where the assessee has earned exempt income and incurred expenditure by way of interest which is not directly attributable to any particular income...

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Initiation of penalty proceedings u/s 271(1)(c) without specifying basis makes such proceedings void -ab-initio

Shri E. Krishnappa Vs ITO (ITAT Bangalore)

The ITAT Bangalore in the case of Shri E. Krishnappa vs. ITO held that initiation of penalty proceedings u/s 271(1)(c) without mentioning its basis i.e. concealment of income or furnishing inaccurate particulars or both would make the proceedings illegal because AO’s satisfaction of the existence...

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Cancellation of Registration U/s 12AA(3) should be based on activities of Trust and not of Trustees

Friends of WWB India Vs Director of Income Tax (Exemption) (ITAT Ahmedabad)

In the case of Friends of WWB India Vs The Director of Income Tax (Exemption) Ahmedabad, it was held that registration u/s 12AA cannot be cancelled under the provision of section 12AA(3) unless the activities of trust are not found in accordance with the provision rather than the trustees....

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No time limit for compliance of direction or findings of appellate forum

U.P. Forest Corporation Lucknow Vs DCIT (ITAT Lucknow)

Common appeal is raised by the assessee against the order of CIT relating to assessment year 2001-02 & 2005-06, therein CIT by virtue of Sec 263 of Income Tax Act, 1961(ACT) ordered assessing officer to make fresh assessment for said asstt year...

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On voluntarily disclosure in response to notice u/s 153A before any detection by revenue, immunity from levy of penalty can’t be denied

DCIT Vs Deepak Chaudhary (ITAT Kolkata)

In the case of DCIT Vs. Deepak Chaudhary Kolkata Bench of ITAT have held that the assessee has cumulatively satisfied all the conditions stipulated in Clause 2 of Explanation 5 to Section 271(1)( c) of the Act and hence entitled for immunity from levy of penalty for all the assessment years under appeal....

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If AMP is an International Transaction than TPO have jurisdiction over it even without any reference by A.O.

M/s Nikon India (Pvt) Ltd. Vs DCIT (ITAT Delhi)

M/s Nikon India (Pvt) Ltd. Vs. DCIT (ITAT Delhi) In the light of various case laws & on bare reading of the provision prescribed in Act: ITAT held that as AMP is an international Transaction and TPO is having jurisdiction over it even without any reference is made by A.O....

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Expenses not charged to P&L cannot be adjusted to income in TP adjustment

M/s DQ Entertainment (International) Ltd Vs ACIT (ITAT Hyderabad)

ITAT Hyderabad held in M/s DQ Entertainment (International) Ltd Vs ACIT that if the effect of expenses has been given in the balance sheet then the upward TP adjustment could not be made because the same had not been charged to P&L account and so same could not be be added to the income of the assessee....

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Mere Change in profit sharing ratio would not change constitution of Partnership firm

DCIT Vs Deepsons Southend (ITAT Delhi)

ITAT Delhi in DCIT Vs Deepsons Southend held that if there is change in the profit sharing ratio of the partnership and all the partners remain same in the new partnership deed then that would not be change in the constitution of the firm so the loss of the firm could be carried forward....

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Continuously selling of product depicts commercial production not trial production

ACIT Vs Phonix Lamps India Ltd. (ITAT Delhi)

ITAT New Delhi held in ACIT Vs Phonix Lamps India Ltd that if the assessee was selling its final product to particular parties continuously and there was no return of the final product. Moreover there was no complaint of any defect in the finished product....

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Expense allowed for earlier year cannot be disallowed in subsequent years if facts & circumstances are same

DCIT Vs M/s Ashiana Ispat Ltd (ITAT Jaipur)

ITAT Jaipur held in DCIT Vs. M/s Ashiana Ispat Ltd that if the facts and circumstances were same in the assesse’s own case of earlier years then, disallowance could not be made if the same was allowed in the earlier years by any appellate authority....

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