"04 March 2018" Archive

In absence of issue of notice U/s. 143(2) assessment U/s. 143(3) r.w. section 147 was invalid and void ab initio

Shri Ramesh Salecha HUF Vs. ITO (ITAT Mumbai)

Shri Ramesh Salecha HUF Vs. ITO (ITAT Mumbai) Revenue could not produce before us any evidence to show that notice under sections 143(2) has been issued or served to the assessee the re-assessment made under sections 143(3) read with section 147 is void ab-initio in view of the above decisions of the Honorable Allahabad High Court in [&...

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Service of notice U/s. 148 by affixture at wrong address is bad in law

Aminex Merchant Pvt. Ltd. Vs. I.T.O. (ITAT Kolkata)

Kolkata bench of Income Tax Appellate Tribunal (ITAT) recently quashed the re-assessment under section 147/148 of the Income Tax Act since service of notice by affixture was done at a wrong address. ...

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No Dis allowance U/s. 14A if no exempt income earned during the year

DCIT Vs. Aksh Optifibre Ltd. (ITAT Delhi)

Where assessee had not earned any tax-free income, then, corresponding expenditure also could not be worked out for dis allowance. ...

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Assessee entitled to claim additional depreciation on windmill

Giriraj Enterprises Vs. Dy. CIT (ITAT Pune)

Process of generation of electricity is akin to manufacture or production of an article or ‘thing’, therefore, assessee was entitled to claim additional depreciation under section 32(1)(iia) on windmill even prior to amendment of section 32(1)(iia) by Finance Act, 2012 as said amendment is only clarificatory in nature....

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Reassessment cannot be made to disallow deduction allowed in Original Assessment

M/s. Kotarki Constructions Pvt. Ltd. Vs. Asst. CIT (Karnataka High Court)

The powers of reassessment u/S.147/148 of the Act have to be invoked with great amount of circumspection and the relevant material on record, on the basis of which, a “reasonable opinion” can be framed in contrast with a mere change of opinion for initiating the reassessment proceedings....

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Addition merely on the basis of rough papers found from premises of wife of assesse not sustainable

DCIT Vs. Smt. Manishaben N. Mashru (ITAT Rajkot)

Rajkot bench of Income Tax Appellate Tribunal (ITAT) recently held that the notebooks and diaries found from assessee’s wife cannot be treated as Books of Accounts for the purpose of making addition under the Income Tax Act, 1961. ...

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Interest cannot be disallowed for interest free business advances made to subsidiary companies

M/s. Essel Pro pack Ltd. Vs. DCIT (ITAT Mumbai)

M/s. Essel Pro pack Ltd. Vs. DCIT (ITAT Mumbai) Assesses has incurred expenses on behalf of certain foreign subsidiaries and Indian subsidiary and shown them under the head Advances Recoverable. The assessee has not made any non business advance to the these companies, but these amount represents various debits in the nature of sale of [&...

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Addition U/s. 68 justified if Assessee failed to establish creditworthiness of donors

Pandit Vijay Kant Sharma Vs. CIT (Allahabad High Court)

Where assessee had failed in establishing the creditworthiness of the donors, occasion for making the gifts and why the donors who were strangers and not men of means gifted such huge amounts to the assessee- HUF out of love and affection, therefore, addition made by AO was justified....

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S. 269SS: Cash Transactions with Sister-in-Law & Nephew not amounts to Loan

Sri Jagmohan Sharma Vs. JCIT (ITAT Kolkata)

Sri Jagmohan Sharma Vs. JCIT (ITAT Kolkata) The transactions between these family members are neither loans nor deposit and purely a family system and purely a family requirement to help each other in the needy hours, for example medical help, education help and expenses to run the family. That is, one member of the family […]...

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Delay in service of notice U/s. 143(2) invalidates Scrutiny assessment

Pr. CIT Vs. National Informatics Centre Services Inc. (Delhi High Court)

Pr. CIT Vs. National Informatics Center Services Inc. (Delhi High Court) Date of filing of the return of income is 25-09-2009. Therefore, the notice served on the taxpayer u/s 143(2) on 26-08-2011 is beyond the period of six months from the end of the financial year in which the return was furnished. Therefore, the notice […]...

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