Section 14A would have no application to the present facts. It is not the revenue’s case that bad debts have been incurred in relation to income which does not form part of the total income. Section 50 of SIDBI Act, 1989 only exempts payment of income tax. It does not provide that such income of the SIDBI Bank will not be a part of the total income. This would happen in cases of income specified in sections 10 and 10A. Even otherwise this issue was not raised before the authorities and cannot be now urged in an appeal under section 260A.
Considering the fact that the dispute between the partners in respect of the accounts of the said firm was referred to the arbitrator who was an independent person and the said arbitrator looking to the entire evidence has accepted the balance-sheet audited by the 1st Respondent as correct, we see no reason to interfere with the prima facie view of the Institute on the complaint filed by the Petitioner.
Corrupt public servant deserves no sympathy and ruling out any leniency towards public servant who has been found guilty by the trial court, also made it clear that each of the criminal case is required to be decided with reference to the individual facts of each case.
In the present case, the evidence in the form of confirmatory letters, deed of gifts etc. were found during the course of search. The authorities on examination of the confirmatory letters and surrounding circumstances reached a prima facie view that the gifts were not genuine. A notice dated 27.06.1996 under Section 158BC of the Act was accordingly issued.
The investment with the sister-concerns had no nexus to the assessee’s business activities. They were merely invested for the purpose of earning interest. The assessee has not even established that one of its business activities was to advance loans to third parties and/or to invest its funds and that it was a mere coincidence that over the years, all the advances were made to and the investments were made in their sister-concerns.
Tribunal has considered the entire evidence and on facts come to the conclusion that the profits earned by Kandla division of the respondent-assessee is not abnormally high due to any arrangement between the respondent-assessee and its German Principal. The Tribunal correctly held that extraordinary profits cannot lead to the conclusion that this is an arrangement between the parties.
Conduct of ACIT10(1) Mumbai as well as CIT10 Mumbai is highly deplorable. Once the jurisdiction to assess the petitioner was transferred by the CIT10 Mumbai from ACIT10(1) Mumbai to DCIT Circle1(2) Pune by order dated 22.11.2011 it was totally improper on the part of ACIT10(1) Mumbai to request the CIT¬10, Mumbai to pass a corrigendum order with a view to circumvent the jurisdictional issue.
Appellant had sought higher deduction of tax at source by annexing TDS certificates and not reflecting the income as shown in the TDS certificates in its return of income. The Tribunal on consideration of all facts had come to the conclusion that remanding the matter to the Assessing Officer would not serve any purpose, as the appellant had consciously claimed credit of tax deduction on the basis of the TDS certificates and even enclosed the same along with the return of income, but failed to show it, as a part of the income.
An assessee that engages itself only or predominantly in activities relating to its ancillary or incidental objects which do not relate to any charitable purpose and does not carry on any activity relating to its main object which pertains to a charitable purpose is not entitled to an exemption under Section 11. A view to the contrary would lead to the most startling results.
In the case before us also, technical services were rendered by Toyo through the medium of the said technicians. It is not the assessee’s case that the technicians were not answerable to Toyo. Nor is it the assessee’s case that there was a separate agreement between the technicians and itself and that the only role played by Toyo was the provision of technicians and not the rendering of technical services through them.
