Impugned order has been passed by the Ld. CIT under section 263 without considering the explanation offered by the assessee and without applying his mind. The failure of the Ld. CIT, however, does not constitute any legal infirmity to make the order passed by him under section 263 invalid
The expression HUF must be construed in the sense in which it is understood under the Hindu law HUF constitutes all persons lineally descended from a common ancestor and includes their mothers, wives or widows and unmarried daughters.
Tribunal held that in order to impart justice to the employees/assesses the delay deserves to be condoned. Accordingly, the Tribunal condoned the delay in filing the appeals. Regarding the issue of Section 10(10)(C), the Hon’ble Tribunal allowed the claim of the assessee holding that the authorities below were not justified in disallowing the amount of Rs.5 lacs
The Hon’ble Tribunal observed that the company has maintained and submitted separate set of accounts. There was a confusion between the total turnover of the business and total turnover of the undertaking. The Hon’ble Tribunal held that in the proviso to section 10B, there is reference to computation of total income of Undertaking.
Lower authorities have overlooked the principle that the opening balance cannot be disturbed this year. The authorities can only reopen for the earlier year. In another case ACIT Vs. Smt. N. Sasikala (2005) 92 TTJ (Chennai) 119 it was held that If the Department doubted the availability of cash balance, it can go to the concerned assessment year 1990-91
In the present case the Hon’ble Tribunal held that assessee can’t be compared with other companies when they are totally different in functions. Also, the Intellectual property Rights, Brand Value have to be seen while making comparisons under Transfer Pricing.
In the present case the Hon’ble Tribunal held that the Forex gains or losses after the sale receipts would be treated as an amount which will be eligible for deduction under section 10B. On the second issue
Assessee, a partnership firm, was engaged in the business of manufacturing of enameled wire, submersible wire, bare copper wire etc. Assessee filed its return of income related to AY 2009-10 declaring gross loss of (-)3.65% against the total turnover of Rs.590703526/- with net loss of Rs.36385885/-
Peak credit theory will be applicable only when there are deposits in cash and withdrawals in cash. In the instant case when the deposits are made in cash and most of the withdrawals are by way of clearing and not cash withdrawn, therefore, the theory of peak credit is not fully applicable to the facts of this case.
Liability need not to always be a contractual one. On the basis of understanding between the two parties, both sides have passed necessary accounting entries. It was a genuine transaction. Since the assessee was unable to complete the SEZ it transferred the land to the sister concern IGICPL.
