CA Saurabh Chokhra's Posts - Page 6

CIT cannot revise assessment for issues already examined by AO

M/s. Rachana Finance & Investments Pvt. Ltd. Vs CIT (ITAT Mumbai)

ITAT Mumbai held that CIT cannot revise assessment for making afresh examination of an issue already examined by the AO who has taken one of the possible views because there has been no erroneous order which could ordered to be revised. ...

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In case of AIR based scrutiny AO’s scope is limited to AIR transactions only

Smt. Gurpreet Kaur Vs ITO (ITAT Amritsar)

ITAT Amritsar held that the scrutiny of cases selected on the basis of information received through Annual Information Return (AIR) would be limited only to the aspects of information received through AIR....

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S. 153A Additions not based on incriminating material are invalid

DMA Investment P. Ltd. Vs DCIT (ITAT Delhi) (Delhi High Court)

The ITAT Delhi bench in the above cited case held that in case of completed assessment if notice u/s 153A is issued then addition can be made only on the basis of incriminating material found during the course of search....

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S.68 Assessee only required to provide evidence of identity & transactions

ACIT Vs M/s Dhanlaxmi Equipment Pvt. Ltd. (ITAT Jaipur)

The Jaipur bench of ITAT in the above cited case held that the assessee is only expected to produce the documentary evidences regarding the transaction and identity of the persons from whom it has accepted the deposits....

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S.145A No Addition for stock valuation if exclusive method followed

DCIT Vs M/s Stone India Limited (ITAT Kolkata)

ITAT Kolkata held that VAT and CST even if not included in value of closing stock do not result in undervaluation of closing stock because of its corresponding non-inclusion in Opening Stock , Purchases and Sales....

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TDS not deductible on web hosting & marketing services procured from US based entity

DCIT Vs M/s Matrimony.Com Pvt. Ltd. (ITAT Chennai)

The ITAT Chennai held that payments made by the assessee in the nature of webhosting and marketing expenses to US based service provider could not be taxed as Fees for technology services because there were not transfer of technology involved in render of services such that the services could be continuously used by the Indian company wit...

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Net realizable of stock to be taken as value it would fetch on actual sale in future

ITO Vs M/s. Mahendra Traders (ITAT Kolkata)

ITAT held that it is generally accepted prudent practice that the closing stock to be valued at lower of cost or net realizable value. Further, net realizable value means the value which the goods would fetch at the time of actual sale....

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Preference shares Redemption not taxable as deemed dividend

Shri Uday K. Pradhan Vs ITO (ITAT Mumbai)

Since redemption of preference shares does not result in reduction of share capital as per Sec 80 of the Companies Act,1956 , the redemption value cannot be taxed as deemed dividend as the distribution of profits if at all there may be is not resulting in reduction of capital....

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Trading in cash & derivative segment cannot be splitted as speculative & non-speculative

J.G.A Shah Share Brokers P. Ltd. Vs DCIT (ITAT Mumbai)

ITAT held that simultaneous trading of shares in cash segment and arbitrage in derivative segment by assessee company cannot be splitted into speculative and non-speculative transactions . So, as soon as it is found that assessee is trading in shares , the entire trading activity to be treated as speculative business as per explanatio...

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Deferred consideration contingent on uncertain future event cannot be taxed before vesting of right to receive

CIT Vs Mrs. Hemal Raju Shete (Bombay High Court)

The Hon'ble Bombay High court in the above cited case held that a consideration receivable by the transferor which is contingent on happening of a future event the outcome of which is uncertain and cannot be predicted with a reasonable degree of certainty....

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