"03 March 2018" Archive

Revenue cannot treat LTCG as STCG on the ground that assessee deliberately waited for lapse of 36 months

Micheal Jude Fernandes Vs. ACIT (ITAT Mumbai)

The objection of the revenue that the assessee intentionally waited for mechanical lapse of 36 months and deliberately put the date on agreement as 18-11-2009 to avoid the payment of tax is not tenable. ...

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Interest U/s. 234A cannot be levied on Assessment considering return filed U/s. 139(1)

G. Narasiman Vs. ITO (ITAT Chennai)

G. Narasiman Vs. ITO (ITAT Chennai) Belated return filed under section 139(4) could not be revised under section 139(5). Therefore, revised return filed by assessee was invalid and to frame assessment by considering such return as return filed under section 139(1) was in conflict with charging interest under section 234A for delay in fili...

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Registration U/s. 12A/12AA cannot be denied for non-production of books & vouchers

Vidyadayani Shiksha Samiti Vs. CIT (ITAT Delhi)

CIT is not justified in rejecting registration on the ground that the non-production of books and vouchers means that the genuineness of the charitable activities cannot be verified. The CIT is entitled only to examine the objects of the trust at the stage of registration and not the books of account...

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Addition cannot be made on the basis of unsigned impounded dumb document

Devaram C. Bhavani Vs. ITO (ITAT Mumbai)

Devaram C. Bhavani Vs. ITO (ITAT Mumbai) We have given a thoughtful consideration to the notings in the impounded document, viz. Annexure A-2– Page 37 & Page 105 and are unable to persuade ourselves to be in agreement with the view taken by the lower authorities. We find that as against the working of the amount […]...

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AO cannot Review his Own Order by invoking Sec 147 of Income Tax Act

Deputy Commissioner of Income-tax Vs. M/s. ABCI Infrastructure Pvt. Ltd. (ITAT Kolkata)

Right or wrong, the decision taken by AO cannot be revisited or reviewed by AO invoking Sec. 147 of the Act because the AO does not have the power to review his own order....

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Reference to DVO is mandatory for invoking Section 50C (2 )

Amarshiv Construction Pvt. Ltd. Vs. D.C.I.T. (ITAT Ahmedabad)

Impugned addition u/s.50C(2) of the Act mandates reference to DVO in case an assessee contests the jantri price in question to be higher than fair market value of the relevant capital asset. ...

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Explanation to section 73 supersede provision of section 43(5)(d)

ITO Vs. M/s. Arandi Investments Pvt. Ltd. (ITAT Mumbai)

ITO Vs. M/s. Arandi Investments Pvt. Ltd. (ITAT Mumbai) Assessing Officer treated loss in future and options (F&O) transactions as speculation loss and disallowed the same. We find that on this issue, the A.O. has referred to Honorable Delhi High Court decisions on identical issue. The Honorable Delhi High Court in the case of CIT [&h...

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ITAT upheld tax on LTCG on sale of shares for substantial price hike in short time

Sanjay Bimalchand Jain L/H Shantidevi Bimalchand Jain Vs. Pr. CIT, Nagpur & Anr. (Bombay High Court At Nagpur Bench)

ITAT held that fantastic sale price was not at all possible as there was no economic or financial basis as to how a share worth Rs. 5 of a little known company would jump from Rs. 5 to Rs. 485. AO was justified in denying exemption under section 10(38) to assessee, being fantastic sale price was not at all possible in such a short time....

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Mere Material found during survey not gives any authorization to AO to make assessment U/s. 153C & 153A unless the same evidences Income understatement

Supraja’s Sandy Lane Bar & Restaurant Vs. ACIT (ITAT Visakhapatnam)

Supraja’s Sandy Lane Bar & Restaurant Vs. ACIT (ITAT Visakhapatnam) As per 153C of Income Tax Act for invoking jurisdiction, there must be incriminating material found and seized during the course of search in form of money, bullion, jewellery or the evidences indicating the inflation of e expenditure or undisclosed investments or s...

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NFRA – A Quick Review

As announced by Central Govt. on the approval for the Constitution of NFRA for regulating accounting and auditing related aspects....

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