M/s Maitri Developers Vs ITO (ITAT Mumbai)- Project completion method is well recognised method as per AS-7. Under project completion method entire project as a whole is to be seen and hence transfer of some flats via registration is not conclusive of the year in which the income attributable to the project is to be taxed. Completion certificate is also not conclusive of the fact that the project was completed when the facility of drinking water shows it otherwise.
ITO Vs Maharashtra State Co-operative, Consumers Federation Ltd. (ITAT Mumbai) -Whether CIT(A) was not justified in deleting the addition of Rs. 10,00,000/ – made by the AO under sect ion 41(1) of the Act . Assessee is an AOP being the Apex body of consumers co-operative societies in the State of Maharashtra. Its business is divided in 8 Divisional Offices and 13 Apna Bhandars which are retail out lets of federations. The federation is Semi – Government body sponsored and fully supported by the State Government federations.
Jyoti Traders Vs DCIT (ITAT Mumbai )- In our view the conditions precedent for passing an order u/s.142(2A) of the Act directing the Assessee to get its account audited by a special auditor viz., the satisfaction of the AO having regard to the nature and complexity of the accounts of the assessee and the interest of the revenue, that is necessary get the assessee’s account audited by a special auditor is not fulfilled in the present case and therefore the reference to special audit is held to be invalid.
ACIT Vs M/s JPS Associates (ITAT Mumbai)- Revenue has raised a grievance against the finding of the Ld. CIT (A) that hire charges received on account of hiring of the motor-cars, office equipment, computer, furniture and fixture is to be treated as a business income. The Ld. D.R. vehemently argued that the assessee has not carried out any activity and hence, the same is to be treated as income from other sources. Per contra, Ld. Counsel submitted that the said income has been accepted by the A.O. as business income in the preceding assessment years.
Hindustan Platinum Pvt. Ltd. Vs ACIT (ITAT Mumbai)- Statement given u/s 131 cannot be the only basis for disallowing the claim of depreciation when it is shown with documentary evidence that the admission made in the statement recorded was under a mistake or misapprehension. Assessee is not entitled to claim loss u/s 28 on account bad debt of the advance given as inter corporate deposit without establishing the fact that it was a trade advance
Hemant Mangaldas Bhanushali Vs ITO (ITAT Mumbai)- The main ground on which the CIT exercised jurisdiction under section 263 of the Act, was the failure on the part of the Assessing Officer to make enquiries with regard to the applicability of the provisions of section 194C to the payments made by the assessee to other truck owners in the course of his business of transportation of cargo and the consequent dis-allowance that could be made under the provisions of section 40(a)(ia) of the Act. In para 3.1 of the impugned order of the CIT, the CIT has concluded that the order was erroneous and prejudicial to the interest of the revenue because of the lack of enquiry and application of mind by the Assessing Officer on the above aspect.
ACIT Vs. H.K. Imp ex Pvt. Ltd.(ITAT Mumbai)- The dispute is regarding addition of Rs. 4.85 crores being the share application money invested by the two directors who were holding 50% share in the company. We find from the records that the assessee vide letter dated 17.9.09 addressed to AO had given full details such as name, address, PAN of the two directors. The source of the money had been explained as the money withdrawn from the capital account in the firm M/s. S.G. Enterprises.
Echjay Forgings P. Ltd. Vs. ITO (ITAT Mumbai)- As observed by Honourable Supreme Court, in the case of Chainrup Sampatram vs CIT, 24 ITR 481, “while anticipated loss is thus taken into account, anticipated profits…is not brought into account, as no prudent trader would care to show increased profit before it’s actual realization”. The underlying principle is the theory of conservation in accounting which has the sanction of Honourable Courts above. In view of these discussions, as also bearing in mind the entirety of the case, we deem it fit and proper to direct the Assessing Officer to delete the impugned dis-allowance of t. 1,07,83,402 The assessee gets relief accordingly.
ITO Vs M/s Dresdner Kleinwort Wasserstein Sec (I) Ltd. (ITAT Mumbai)- Assessee has incurred an expenditure towards the service charges of the shared premises to its group concern which has taken the same on leave and license. As per leave and license agreement, the sharing of the premises with group concern is allowed as contemplated in clause 11 of the agreement.
Deepak Fertilisers & Petrochemicals Corporation Ltd. Vs. DCIT (ITAT Mumbai)- Whether the assessee is entitled to claim expenses for obsolete stores/ spares on provisional basis or it will be allowed in the year in which it is sold
