"30 January 2018" Archive - Page 2

Ease of Doing Business’ Next Frontier: Timely Justice

The government’s efforts to make business and commerce easy have been widely acknowledged. The next frontier on the ease of doing business is addressing pendency, delays and backlogs in the appellate and judicial arenas. ...

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Posted Under: Finance |

Hardship arising out of Apex Court’s decision in Goetze (India) Ltd. v. CIT

In the case Goetze (India) Ltd. v. CIT (2006) 284 ITR 323 (SC) the assessee filed its return of income for the relevant assessment year without claiming a particular deduction. Later on, it sought to claim the deduction by way of a letter addressed to the Assessing Officer....

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Posted Under: Finance |

MAThematical puzzles!

Minimum Alternate Tax, though on the statute since practically 3 decades now, has always been a subject matter of controversy. Even after all the amendments to it over the years, most recently to align it with the Ind-AS provisions, there is still room for filling in certain gaps. This article seeks to raise certain concerns, which, hopef...

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Posted Under: Finance |

Demonitisation has Helped Share of Financial Saving Rise, Says Economic Survey

• The ratio of domestic saving to GDP reached 29.2 per cent in 2013 to a peak of 38.3 per cent in 2007, before falling back to 29 per cent in 2016. The cumulative fall over 2007 and 2016 has been milder for investment than saving, but investment has fallen to a lower level....

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Posted Under: Finance |

Expense cannot be disallowed for mere absence of voucher

M/s Maheshwari Flour Mills Vs. JCIT (ITAT Lucknow)

The ITAT, Lucknow bench in M/s Maheshwari Flour Mills vs. JCIT, has held that expenses related to the fundamentals of the assessee’s business cannot be disallowed merely n ground that they were not vouched....

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Payment made towards purchase of flat cannot be treated as deemed dividend

DCIT Vs Smt. Sriram Satyavathi (ITAT Visakhapatnam)

DCIT Vs Smt. Sriram Satyavathi (ITAT Visakhapatnam) The fact that the company M/s. Vijetha Constructions has taken the advances for sale of flats was substantiated by the registered sale agreements. The same cheque No. and the dates were mentioned in the promissory note and the sale deeds which fortifies the assessee’s contention that t...

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Whether issuance of s. 274 notice is merely an administrative device- Conflicting views of High Courts

Jeetmal Choraria Vs. ACIT (ITAT Kolkata)

Jeetmal Choraria Vs. ACIT (ITAT Kolkata) From the aforesaid discussion it can be seen that the line of reasoning of the Honorable Bombay High Court and the Honorable Patna High Court is that issuance of notice is an administrative device for informing the assessee about the proposal to levy penalty in order to enable him […]...

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ICAI stresses on Need for educating tax payers in right manner

Till date all government awareness programmes for education of tax payers adopt the stick approach like making them aware of penalties and prosecution under the Income tax Act, 1961.This approach may not yield the desired results....

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Posted Under: Finance |

S. 14A disallowance cannot be made merely based on Audit Report

M/s IMC Ltd. Vs. ACIT (ITAT Kolkata)

Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently quashed the order passed by the lower authorities disallowing the claim of the assessee towards leave encashment for the reason that the order of the High Court invalidating Section 43(f) of the Income tax Act 1961 was not stayed by the Supreme Court. ...

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Central Excise Duty paid in Cash Eligible for Deduction

M/s. Alladi Drilling Equipments Private Limited Vs. Deputy Commissioner of Income Tax (ITAT Hyderabad)

We are unable to approve the findings of Ld. CIT(A). Whether the payment is in cash or by way of cheque, the Central Excise amount paid would be eligible for deduction, out of the receipts of the business concern. ...

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