ITAT Jodhpur

If issue is debatable, it cannot be corrected u/s 154 of Income Tax

M/s. Sarraf Export Vs The ITO (ITAT Jodhpur)

It is settled position of law that where any issue is debatable, it cannot be corrected u/s 154 of the Act. In this regard, the Hon'ble Apex Court in the case of T.S. Balaram ITO v. Volkart Bros. [1971] 82 ITR 50 is relevant wherein an action taken by Assessing Officer u/s 154 of the Act was found to be illegal....

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Depreciation should be allowed as claimed in revised return and not as claimed in original return

Assistant Commissioner of Income-tax Vs G.R. Contractor (ITAT Jodhpur)

CIT(A) followed the earlier order of the Tribunal in assessee's own case in part and not in toto. He was of the view that interest and salary to the partners be allowed but not interest to third parties and the depreciation was to be allowed as claimed in the original return because the claim made in the revised return could not be substa...

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No Revision U/s. 263 if issue been examined in detail by Assessing Officer

Pradeep Bandhu Vs Commissioner of Income-tax (ITAT Jodhpur)

Briefly stated, the facts of the case are that the assessee-firm filed its return of income (ROI) on 29.09.2009 declaring total income at Rs. 'NIL'. The books of accounts of the firm are duly audited u/s 44AB and the report in form No 3 CA and 3CB dated 26/09/2009 were filed alongwith the ROI. The assessee-firm derives its income from sal...

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For Failure to prove source of capital contribution by partners the same cannot be taxed in the hand of firm as unexplained cash credit U/s. 68

Laxmi Imaging & Medical Research Vs Assistant Commissioner of Income-tax, Circle-1, Jodhpur (ITAT Jodhpur)

In the present case, it is an admitted fact that the partners Shri C.P. Mathur and Shri L.C. Mathur contributed Rs. 8 lacs and Rs. 4,30,000/- respectively as their capital and the Assessing Officer made the addition by invoking the provisions of section 68 of the Income-tax Act. On a similar issue, the Hon'ble Jurisdictional High Court in...

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Sale and transmission of gas is a contract for sale & not a contract for technical services

A.C.I.T [TDS] Vs M/s Chambal Fertilizers & Chemicals Ltd. (ITAT Jodhpur)

The agreement between the assessee and GAIL is a contract for sale of gas and not a works contract. VAT which is charged by the seller is on the composite price and not only on the price of the gas. The assessee is required to disclose the price of the gas and transmission charges separately in the same invoice. GAIL is a Government of In...

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Reference to DVO without rejection of books is invalid

Prithavi Raj Bohra Vs Income-tax Officer, Jalore (ITAT Jodhpur)

In the present case, a categorical finding is recorded by the Tribunal that the books were never rejected. This aspect has not been considered by the Hon'ble High Court. In the circumstances, the reliance placed on the report of the DVO was misconceived''. By observing these observations, the decision of Hon'ble High Court was set aside a...

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Assessee engaged in property trading too can claim exemption u/s 54F

Sunil Bhandari Vs Assistant Commissioner of Income-tax (ITAT Jodhpur)

There is no dispute regarding the source of income of the assessee which is mainly from the business of purchase and sale of plots/lands. But it does not mean that such an assessee is debarred from purchasing and holding some plots/land as capital asset and claim benefit u/s 54F....

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ITAT criticizes department for filing appeal despite lower tax effects

Income-tax Officer Vs Dr. Suresh Sharma (ITAT Jodhpur)

From the ratio laid down by the Hon'ble Delhi High Court, it is clear that the instructions issued in the Circulars by CBDT are applicable for pending cases also. Therefore, by keeping in view the ratio laid down in the aforesaid referred to cases, we are of the considered view that Instruction No.3/11, dated 09.02.2011 issued by the CBDT...

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Splitting of cash payment to circumvent law attracts Section 40A(3)

Vaishali Builders & Colonizers Vs Additional Commissioner of Income-tax, (ITAT Jodhpur)

It is very clear that the assessee consciously split up the payments in whole of the year, which is impracticable, illogical as noted above and it was done just to circumvent the provisions of law. There was no justification for the assessee to split up the transactions of crores of rupees in small payments of Rs. 15,000/- to Rs. 20,000/-...

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Bad debt cannot be claimed for first time in revised return filed pursuant to section 153A

Gendmal Kothari Vs Deputy Commissioner of Income-tax (ITAT Jodhpur)

The assessment is framed u/s. 153A of the IT Act, which is specifically meant for computation of undisclosed income, which is found during the course of search. The assessee in order to circumvent the provisions of law have tried to reduce the amount in question out of total undisclosed income determined in the course of search by claimi...

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October 2020