In this case, AO, made an addition of Rs.28,00,000/-, in respect of advances received from M/s Jot Agro Processors Pvt. Ltd. at Rs. 25 lacs and M/s Madura Agro Food Industries at Rs. 3 lacs/-. The main addition made by the AO pertains to non-furnishing of PAN and bank account number. However, in the course of appellate proceedings, appellant filed detailed submission which was found plausible explanation within the meaning of provisions of Section 68 and having regard to the factual matrix of the case.
From the above it is clear that unabsorbed depreciation for the block of Assessment year 1997-98 to 2001-02 which could not have been set off earlier, cannot be allowed to be set off now. Therefore, we set aside the order of the ld. CIT(A) and remit the matter back to the file of Assessing Officer with a direction to only allow set off of unabsorbed depreciation which is outside the block of Assessment year 1997-98 to 2001-02.
If Assessee Possess more than one house, it can result in denial of deduction under section 54F relief even if one of them is in bad condition.
The provisions of Penalty levied u/s 272B of Income Tax Act, 1961 are prospective i.e. it is applicable from the date of insertion of sub-clause (iv) to section 139A(5B) of the Act i.e. 01.06.2006.
In the case before us, admittedly no plans were made, therefore, there is no question of getting the same approved. Apart from this, the ld. counsel of the assessee admitted that assessee has no evidence to prove that assessee wanted to start construction. If the tax is allowed to be postponed merely on the basis of purchase of plot then no assessee would pay correct taxes during the year
The computation of benefit of gratuity and leave encashment, as contemplated under section 10(10) and 10(10AA) are to be governed by the definition of ‘salary’ contained in the Explanation to section 10(10) and not by any agreement, to section 10(10) viz., 8th Bipartite Settlement on wage revision and other similar conditions between Indian Banks’ Association and their Workmen.
Hon’ble Punjab & Haryana High Court in case of Kim Pharma (P.) Ltd. (supra) held that surrendered income during the survey has to be assessed separately as deemed income and set off of losses u/s 70 & 71 was not possible against such income.
In the present case, the revenue authorities, sought to apply the statutory presumptions, as contemplated under section 132(4A) to the facts of the present case, without establishing the factum that the assessee was found in possession or control of any books of account, other documents, money, bullion, jewellery or other valuable article or thing etc. In this specific context, it is inconceivable and incomprehensible, as to how the provisions of section 132(4A) are applicable to the facts of the case, without showing satisfaction of the statutory conditions precedent contained therein.
The various clauses of the MOUs need to be examined in the light of the criteria laid down by the Courts to determine whether the doctors attached to the appellant hospital are employees of the hospital. The test which is uniformly applied in order to determine whether a particular relationship amounts to employer-employee relationship is the existence of a right of control in respect of the manner in which work is to be done by the person employed
Consideration as shown in the Registered Sale Deed cannot be equated with ‘Fair Market Value’, as defined in the Act u/s 2(22B) of the Act. /Therefore, adoption of average value of land at Rs. 27,030/- per acre as on 1.4.1981, as ‘Fair Market Value’ of the land in question, for the purpose of computation of capital gains, is not legally and factually tenable. ‘Fair Market Value’ represents the price that a seller is willing to accept and a buyer is willing to pay in the open market. The price or sale consideration as specified in the Registered Sale Deed of an asset in India represents the price or sale consideration negotiated or determined not in the open market but in the parallel operating market where such transactions crystallized in a clandestine manner. In view of this, sale consideration of an asset, as recorded in the Registered Sale Deed is generally understated and, hence, cannot he taken as ‘Fair Market Value’ as on 1.4.1981 for the purpose of computation of ‘Capital Gains’.
