"29 October 2018" Archive

Disallowance U/s. 36(1)(iii) justified for Interest-free loan to sister concern without commercial expediency

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh)

M/s C.R. Auluck & Sons Pvt. Ltd. Vs ACIT (ITAT Chandigarh) Assessee has failed to establish its case of commercial expediency.  The intention of assessee in advancing the said interest-free loan to its sister concern was not for the purpose of business because the two concerns were carrying on independent lines of manufacturing and t...

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S. 43B Overdue interest converted into loan allowable only on payment

Teesta Agro Industries Ltd Vs DCIT (ITAT Kolkata)

Explanation 3C to section 43B provides that interest payable can only be allowed to an assessee when the same is actually paid and any interest which has been converted into a loan shall not be deemed to have been actually paid. ...

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Mere investigation wing report not sufficient to treat a transaction as Bogus

ITO Vs Kapil Mittal (ITAT Jaipur)

Finding of AO is based merely on suspicion and surmises without any tangible material to show that the assessee has introduced his own unaccounted income in the share of long term capital gain even otherwise the reliance of the statements recorded by the Investigation Wing, Kolkata wherein without giving an opportunity of cross examinatio...

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S. 80IB Deduction cannot be denied for mere non-submission of Form 10CCB Audit Report with Return

DCIT Vs M/s Reckitt Benckiser (India) Ltd. (ITAT Kolkata)

DCIT Vs M/s Reckitt Benckiser (India) Ltd. (ITAT Kolkata) We come to Revenue’s appeal. Its sole grievance reads that the CIT(A) has erred in law and as facts in allowing arrears Section 80IB and 80IC deduction claims totaling to Rs. 1,39,48,12,000/- thereby reversing Assessing Officer’s action not taking any cognizance thereof solely ...

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Period of holding whether to be reckoned from purchase agreement registration date or stamp date

Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai)

Sanjaykumar Footermal Jain Vs ITO (ITAT Mumbai) In the instant case it is crystal clear that by virtue of agreement for sale dt. 24-04-2008, and making a part payment, the assessee has acquired irrevocable tight, title and interest including possession in the house property in the form of Godown. The registration of the property which [&h...

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Notional Income cannot be added for property lying vacant due to Act of Government

DCIT Vs M/s. Turner Morrison Limited (ITAT Kolkata)

Appellant was prevented by sufficient cause not to let out this property. Therefore, the Notional Income from the said property lying vacant due to Act of Government cannot be added back. ...

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S. 276(C)(1) During pendency of stay application criminal prosecution should not be launched

Ramchandran Ananthan Pothi Vs UOI and Ors. (Bombay High Court)

Ramchandran Ananthan Pothi Vs UOI and Ors. (Bombay High Court) In the event, the petitioner seeks a stay of the order passed by the Assessment Officer by making a stay application, then, during the pendency of such application, the criminal prosecution Section 276(C)(1) of the Income  Tax Act 1961 should not be launched and, if ...

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S. 194H TDS- Incentive paid by dealers to sub-dealers cannot be equated with commission

Rakesh Kumar Vs CIT (ITAT Delhi)

Rakesh Kumar Vs CIT (ITAT Delhi) The permissive right to use the SIM cards to get access to the phone network of the telecom companies is given only to the ultimate customers who have activated the connections. Thus, in the case of the telecom company, it is the owner of the prepaid voucher/SIM card and […]...

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Compensation/damage for settlement of dispute is capital receipt

Shri Jackie Shroff Vs ACIT (ITAT Mumbai)

As could be seen, the compensation received by the assessee was not for his professional activities but for settlement of dispute between him and some other party resulting in filing of a criminal complaint. That being the case, the amount received towards compensation/damage cannot fit in to the definition of income as per section 2(24) ...

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S. 54 Cost of land cannot be segregated in computation of cost of new asset

C. Aryama Sundaram Vs CIT (Madras High Court)

C. Aryama Sundaram Vs CIT (Madras High Court) What has to be adjusted and/or set off against the capital gain is, the cost of the residential house that is purchased or constructed. Section 54(1) of the said Act is specific and clear.It is the cost of the new residential house and not just the cost […]...

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