Sponsored
    Follow Us:

Karnataka High Court

AO’s power u/s. 142A to refer matter to valuation officer to estimate cost of construction

August 13, 2012 2439 Views 0 comment Print

In view of the amendment to the IT Act, the Assessing Officer has got power to refer the matter to the DVO for the purpose of valuation. Further, the Tribunal has committed an error in holding that CPWD rates adopted by the DVO were not correct without assigning any reason to arrive at such a conclusion. Hence, the order passed by the Tribunal cannot be sustained.

Mere suppression of turnover do not lead to taxable income in the head of Assessee

August 8, 2012 6610 Views 0 comment Print

The suppression of turnover is different from the suppression of income. If there is suppression of turn-over, there is liability to pay excise duty. Merely because the excise duty is paid, there is no presumption that it leads to taxable income in the hands of the assessee. The tax under the Income Tax Act is payable for the income in excess of the limit prescribed under the Act.

Earning of huge profit within few days by a software company is possible

August 1, 2012 1132 Views 0 comment Print

The owner of the industry shall issue serially cash/credit memos, for sales of finished goods which will contain name and address of the purchasers, descriptions of the goods sold and its value, exemption certificate number and date, signature of the seller.

Steel plates & strips used for fabrication of storage tanks being part of Boiler is entitled to CENVAT Credit

July 30, 2012 1538 Views 0 comment Print

Assessing authority has himself extended the benefit to storage tank storing water as a component to main machinery namely, boiler, he ought to have extended the benefit to the storage tanks which are also part of the factory premises, in which the by products are stored and thereafter sold as a finished product.

HC has no jurisdiction on Issue of classification of service

July 30, 2012 961 Views 0 comment Print

High Court has no jurisdiction to entertain this appeal under section 35G of the Central Excise Act, 1944, as held by this Court in the case of CCE v. Mangalore Petrochemicals Ltd. in CEA No.6/2007 disposed of on 01.09.2010. The said question has to be adjudicated by the Apex Court under section 35L of the Central Excise Act, 1944. Hence, the appeal is not maintainable.

Non Explanation of Fund Received from partner sufficient ground for Reassessment

July 10, 2012 849 Views 0 comment Print

Ultimately the assessing officer was of the opinion that a firm, which had the capacity to lend an amount of Rs. 71,50,000/- that too, to one of its partners or others is reasonably presumed to have the taxable income and if the assessee had never disclosed its expenditure or otherwise earlier and in such circumstances, if the officer records that he has reason to believe that assessee had taxable income and a non-filing of the return is not merely suspicion and therefore in bringing to tax such amount by re-opening.

Settlement Commission should examine application for settlement by lifting corporate veil

July 6, 2012 1166 Views 0 comment Print

In a given case if such immunity is not granted the Department would proceed to prosecute the assessee in a jurisdictional court. Once prosecution is lodged the presumption is that there was mens rea on the part of the assessee to conceal the income by a smoke screen or evade tax. Thus the Settlement Commission will have to examine the application by lifting the corporate veil to see as to whether there has been an intention to evade tax and then arrive at a conclusion. In the absence of such exercise being undertaken by the Settlement Commission the intention underlined behind section 245H(1) would become otiose or redundant.

Tribunal cannot stay demand beyond maximum period of 365 days

July 5, 2012 1162 Views 0 comment Print

The Tribunal is not authorized to extend stay of demand beyond maximum period of 365 days. The decision of Tribunal to extend stay of demand beyond 365 days amounted to contravention of provisions of the law.( Ecom Gill Coffee Trading Private Limited and B. Fouress Private Limited v. CIT (ITA. No. 160&161/2012)]

Section 158B – Revelation of any undisclosed income should be clear & direct

July 4, 2012 1236 Views 0 comment Print

If the revenue is to reply upon some documents for some part of them to claim that the documents reveal some undisclosed income of the assessee which has escaped tax and is earned during the block period, at the same time not giving same importance to the other parts of the documents, but understanding the other clauses by way of inference or on a logic attributing certain motives to the assessee, it is not a proper way of reading the document, assuming that it is relatable to the search and has a link to the search.

S. 80-IB(10) – Exemption cannot be denied if Assessee complied with conditions

June 24, 2012 1436 Views 0 comment Print

Assessee owned only 38 guntas of land when he started the construction, he acquired an extent of 1,440 sq. ft. of land adjoining the said land, thus making the total land in which the project was put up, to 44,470 sq.ft. more than 43,480 sq.ft. which is prescribed under the law. The modified housing project was approved in the year 2001 after the aforesaid provision was inserted. On 20.5.2003 occupancy certificate is issued. Therefore, the construction is within the 4 years period stipulated.

Sponsored
Sponsored
Search Post by Date
February 2025
M T W T F S S
 12
3456789
10111213141516
17181920212223
2425262728