When the assessee is a consignment agent, as the definition of C&F agent includes consignment agents, CESTAT was not right in holding that the service provided by a consignment agent is not covered by section 65(25) of the Finance Act, 1994.
the agreement was on a principal to principal basis, (ii) the manufacturer had his own establishment where the product was manufactured, (iii) the materials required in the manufacture of the article or thing was obtained by the manufacturer from a person other than the assessee and (iv) the property in the articles passes only upon the delivery of the product manufactured, the contract was one of “sale” and there was no obligation to deduct tax u/s 194C. The fact that the assessee imposed restrictions on the manufacturer as to quality of the goods, user of trade marks etc are merely matters of business expediency.
ection 147 provides that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 163 assess or re assess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently
The only other argument advanced was in respect of the penalty and interest imposed in so far as assessment year 1987-88 is concerned relying on the judgment in the case of Rohitkumar. The returns were filed only after the seizure of the incriminating material. The issue of whether penalty or interest could be levied was in issue in proceedings for adjudication. In the instant case, the levy of penalty or interest including for the Assessment Year 1987-88 has not been challenged and has become final.
The omission of the AO to levy interest under section 234B(3) in the first reassessment completed under section 147 which could have been rectified under section 154, does not bar the AO from levying interest under the very same provision, when the assessment was again revised a second time under section 147.
Since the Stock Exchange membership card which is sold in auction is property covered by the description “capital asset” under section 2(14) of the I.T Act, it’s sale by stock Exchange amount to transfer” within the meaning of Section 2(47) of the I.T. Act.
Tribunal was correct in deleting the addition made by the Assessing Officer on the ground that the assessee had deposited employers’ as well as employees’ contribution towards PF/ESI after the due date, as prescribed under the relevant Act/Rules, but before date of filing return.
Sub section (1) of Section 73 provides that the loss in respect of a speculation business can be set off only against the profits and gains of another speculation business. Sub section (2) of Section 73 enables an assessee to carry forward the loss arising out of a speculation business which has not been set off e their wholly or partly under the provisions of sub section (1)
We have considered the rival submissions and perused the material on record. In our considered view, the claim of the revenue that notices were sent through Courier and the Courier had served it within a week on the assessee is not sustainable because the revenue has to produce the copy of the acknowledgement in token of service of the notice.
Recently, the Delhi High Court in the case of ACIT v. Nestor Pharmaceuticals Limited [2010-TIOL-124-HC-DEL-IT] on the issue of whether the year in which trial production starts can be considered as initial Assessment Year (AY) for claiming benefit under section 80-IA of the Income-tax Act, 1961 (the Act) after relying on various judicial precedents held that the initial year is the year in which the commercial production starts and not trial production.
