CA Amit Handa

Reassessment u/s 148 quashed, on issue of notice without valid jurisdiction

Income Tax - The reliance has been placed on the decision of Hon’ble Allahabad High Court in the case of CIT Vs. M/s MT Builders Pvt. Ltd., (2012) 349 R 271 (All.) that the notice issued by an Officer who had no valid jurisdiction over the assessee is invalid. Accordingly, The notice under Section 148 of the Act issued by the Income Tax Officer...

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Cash advance not claimed as deduction cannot be disallowed u/s 40A (3)

Income Tax - The assessee company is engaged in real estate business. It paid cash advance for purchasing a plot and reflected it in balance sheet under loans and advances given. The AO made addition of 20 % of amount paid as advance, invoking the provisions of Section 40A(3) of the Income Tax Act, 1961. ...

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Disallowance u/s 40A(2) of Commission paid to relatives cannot be made without proper enquiry

ACIT Vs Sh. Saurabh Batra (ITAT Delhi) - AO made the disallowance by invoking the provisions of section 40A(2) of the Act, however nothing was brought on record on the basis of the comparative analysis to substantiate that the commission paid to the related parties was higher than the commission paid to unrelated parties....

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Validity of Reassessment based on Audit Report/Balance Sheet Submitted during Original Assessment

ACIT Vs Super Cassettes Industries Ltd. (ITAT Delhi) - The reopening has basically been done for two reasons – the first one being the alleged difference between Unsecured Loans from Directors in the Balance Sheet and Unsecured Loans from Directors in Audit Report under Form 3CD; and the second one...

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Assessment initiated and framed in name of deceased is void

Income Tax Officer Vs Late Sh. Som Nath Malhotra, Through Smt. Raj Rani Malhotra ( ITAT Delhi) - In the present case also the notice u/s 148 of the Act was issued on 31.03.2010 in the name of the deceased assessee and claimed to have been served upon the deceased assessee who had already expired on 06.12.2002. ...

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Services of development of agricultural land for housing project not covered in agricultural services

M/s NGK Infrastructure Ltd. Vs. C.C.E.&S.T. (CESTAT Delhi) - Tribunal held that the service provided by appellant was not in relation to agriculture. Further appellant’s claim that service provided by it are eligible for exemption under notification no. 17/2005-ST, dated 07.06.2005...

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Service tax SCN, that fails to identify specific taxable service is liable to be Quashed

M/s Shubham Electricals Vs CST & ST, Rohtak (CESTAT Delhi) - In the entirety of the show cause notice there is not a single assertion proposing to levy and collect service tax on the basis of any specified taxable services allegedly rendered by the appellant except the several alternative taxable services speculated to have been provided. ...

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Recent Posts in "CA Amit Handa"

Disallowance u/s 40A(2) of Commission paid to relatives cannot be made without proper enquiry

ACIT Vs Sh. Saurabh Batra (ITAT Delhi)

AO made the disallowance by invoking the provisions of section 40A(2) of the Act, however nothing was brought on record on the basis of the comparative analysis to substantiate that the commission paid to the related parties was higher than the commission paid to unrelated parties....

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Validity of Reassessment based on Audit Report/Balance Sheet Submitted during Original Assessment

ACIT Vs Super Cassettes Industries Ltd. (ITAT Delhi)

The reopening has basically been done for two reasons – the first one being the alleged difference between Unsecured Loans from Directors in the Balance Sheet and Unsecured Loans from Directors in Audit Report under Form 3CD; and the second one...

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Assessment initiated and framed in name of deceased is void

Income Tax Officer Vs Late Sh. Som Nath Malhotra, Through Smt. Raj Rani Malhotra ( ITAT Delhi)

In the present case also the notice u/s 148 of the Act was issued on 31.03.2010 in the name of the deceased assessee and claimed to have been served upon the deceased assessee who had already expired on 06.12.2002. ...

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Services of development of agricultural land for housing project not covered in agricultural services

M/s NGK Infrastructure Ltd. Vs. C.C.E.&S.T. (CESTAT Delhi)

Tribunal held that the service provided by appellant was not in relation to agriculture. Further appellant’s claim that service provided by it are eligible for exemption under notification no. 17/2005-ST, dated 07.06.2005...

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Service tax SCN, that fails to identify specific taxable service is liable to be Quashed

M/s Shubham Electricals Vs CST & ST, Rohtak (CESTAT Delhi)

In the entirety of the show cause notice there is not a single assertion proposing to levy and collect service tax on the basis of any specified taxable services allegedly rendered by the appellant except the several alternative taxable services speculated to have been provided. ...

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Penalty cannot be imposed on preponderance of probabilities

Sh. Jagjit Singh Vs. ITO (ITAT Chandigarh)

It is well settled that the parameters of judging the justification for addition made in the assessment case of the assessee is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/addition could legally be made in the assessment...

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Revenue can’t file appeal to ITAT, if tax not exceeds Rs 4,00,000/-

Income-tax Officer Vs Shri Om Prakash (ITAT Delhi)

Assessing officer has made few additions in his assessment order which were later on deleted by the CIT (A) on merits. Revenue preferred an appeal to the Tribunal against an order of CIT(A). However in this case the tax effect was less than Rs 4 lacs. ...

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Loan foreclosure charges are eligible for deduction u/s 24(b)

Subha Singhvi Vs ACIT (ITAT Delhi)

1. The assessee is an individual, who earned rental income from certain properties and claimed deduction for interest on loan paid by the assessee as interest u/s 24(b)of the Income Tax Act, 1961. 2. The A.O., on perusal of interest certificate given by the bank, noticed that out the total interest of Rs. 29,89,223/-...

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Reassessment u/s 148 quashed, on issue of notice without valid jurisdiction

Mukesh Kumar Vs ITO (ITAT Delhi)

The reliance has been placed on the decision of Hon’ble Allahabad High Court in the case of CIT Vs. M/s MT Builders Pvt. Ltd., (2012) 349 R 271 (All.) that the notice issued by an Officer who had no valid jurisdiction over the assessee is invalid. Accordingly, The notice under Section 148 of the Act issued by the Income Tax Officer...

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Marketing & liasoning services can’t be equated with advisory services for ALP adjustment

M/s Deutsche Asset Management (India) Pvt. Ltd. Vs DCIT (ITAT Mumbai)

The Tribunal, in assessment year 2006-07, in the assessee’s own case and on identical facts/ circumstances, has given a clear finding that the fee received by the assessee for providing marketing and liasioning services cannot be equated with the advisory services given to an investment manager. ...

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No right of appeal provided under the statute against order passed u/s. 264 of Income Tax Ac t,1961

Gausia Cold Storage Pvt. Ltd, Mumbai Vs. ACIT (ITAT Mumbai)

There is no right of appeal provided under the statute against the order passed u/s. 264 of the Act. In fact a party to litigation can move to an appropriate forum only when the statute provides for such a right. As can be noticed from section 253 of the Income-tax Act, 1961 an order passed by the Commissioner of Income Tax (‘CIT’) u...

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Income determined on estimate basis, penalty u/s 271(1)(c) cannot be imposed

Rajiv Kumar Garg Vs ITO (ITAT Delhi)

The Hon'ble Calcutta High Court in case of Durga Kamal Rice Mills Vs. CIT (2004) 265 ITR 25 (Cal.) has held that quantum proceedings are different from penal proceedings. The Hon'ble Kerala High Court in CIT Vs. P.K. Narayanan (1999) 238 ITR 905 (Ker.) has held that despite the addition being confirmed by Tribunal in quantum proceedings, ...

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Section 234B interest not applicable under Block Assessment

ACIT Vs Sh. Akhil Jain (ITAT Delhi)

No interest under the provisions of section 234A, 234B or 234C or penalty under the provisions of clause (c) of sub-section (1) of Section 271 or section 271A or section 271B shall be levied or imposed upon the assessee in respect of the undisclosed income determined in the block assessments...

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Penalty cannot be imposed if explanation given by the assessee cannot be brushed aside as totally false

M/s. Allgrow Finance & Investment Pvt. Ltd. Vs ITO (ITAT Delhi)

The assessment proceedings and penalty proceedings are two separate and distinct proceedings. The fact that certain additions were made in the assessment proceedings would not automatically justify for imposition of penalty u/s 271(1)(c) of the Act. ...

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Cash advance not claimed as deduction cannot be disallowed u/s 40A (3)

The assessee company is engaged in real estate business. It paid cash advance for purchasing a plot and reflected it in balance sheet under loans and advances given. The AO made addition of 20 % of amount paid as advance, invoking the provisions of Section 40A(3) of the Income Tax Act, 1961. ...

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Posted Under: Service Tax |

No new material besides full and true disclosure, reassessment u/s 148 is not justified

DCIT Vs The Handicrafts and Handlooms Exports Corporation of India Ltd. (ITAT Delhi)

In the recent judgment of the Hon’ble jurisdictional High Court in the case of Madhukar Khosla vs. ACIT (supra), the Hon’ble Court has held that ‘if there is no reason to believe that the income has escaped assessment based on new tangible material, then the reopening of assessment amounts to impermissible review’....

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Assessee is not the shareholder & transaction in ordinary business, sec. 2(22)(e) doesn’t apply

Gomti Exim Pvt. Ltd. Vs ITO (ITAT Delhi)

The assessee company is not the shareholder in M/s Precision Stock & Credit Pvt. Ltd. and received the amount from the said company in the course of ordinary business activities. Therefore, in view of ratio laid down by the Hon’ble Jurisdictional High Court in the aforesaid referred to case, the provisions of section 2(22)(e) of the Act...

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Identity and creditworthiness of shareholder proved, addition u/s 68 not Justified

Gomti Exim Pvt. Ltd. Vs ITO (ITAT Delhi)

The assessee submitted that he produced following evidences before the AO to prove the identity and creditworthiness of Shri Vinod Kumar :- (i) Copy of Share Application received from Mr. Vinod Kumar (ii) Copy of Shares Certificate of shares Allotted to him (iii) Copy of confirmation received from him ...

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No Penalty u/s 272B, if Reasonable cause proved for missing PAN nos. in TDS returns

ITO (TDS), Rohtak Vs The Executive Engineer,Provisional Division,Public Health, Jhajjar (ITAT Delhi)

Here the assessee originally did not have the correct PANs of all the persons from whose payments, tax at source was required to be deducted. Despite that, the assessee did deduct tax at source and paid the amount to the exchequer well in time. The only fault of the assessee was in not filling PANs of some of the deductees which were not ...

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Concept of indexation while computing the LTCG cannot be imported to the computation of book profit u/s. 115JB

Dharmayug Investments Ltd. Mumbai Vs ACIT (ITAT Mumbai)

Section 1115JB is non-obstante section and a complete code by itself, which provides that in case of a company, the income tax payable on the total income is computed under the Income tax Act in respect of any previous year is less than 7.5% (which percentage has been increased from time to time) of its book profit, ...

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‘Loan Arranger Service’ not liable for Deduction of TDS U/s. 195

Idea Cellular Limited. Mumbai Vs Asst. Director of Income Tax Mumbai (International Taxation) (ITAT Mumbai)

Regarding the treatment of Arranger fees as fees for technical services, we find that the ld. CIT(A) had treated it to be in the nature of service fee for managing and arranging the finance and, hence, it is the consideration for rendering managerial and consultancy services....

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No adjustment for disallowance of license fees and management charges U/s. 44C of Income Tax Act 1961

M/s. Lloyd’s Register Asia (India Branch Office) Vs The Asst. CIT (ITAT Mumbai)

In our conclusion, neither the payment of license fees nor the management charges, falls within the ambit and purview of section 44C and, accordingly, the nature of adjustment to the total income for the purpose of disallowance is not required. Thus it is held that license fees and management charges do not fall in the nature of head offi...

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