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CA Ghanshyam Vaswani

Latest Judiciary


Income from subletting of property is to be assessed as business income

Income Tax : In the case of Bhuvan Leasing and Infrastructures Vs ITO, ITAT Mumbai has held that where it is the intention of the assessee to l...

July 28, 2015 2288 Views 0 comment Print

Deduction u/s 80IA(4) cannot be disallowed, merely on the ground that assessee is not the owner of infrastructure facilities

Income Tax : In the case of En-Vision Enviro Engineers (P) Ltd. Vs DCIT, it was held that deduction u/s 80IA(4) cannot be disallowed, merely on...

July 28, 2015 1732 Views 0 comment Print

Loan/Debt from a company to a firm thereby to the assesse, who has substantial interest in company and firm is not deemed dividend u/s 2(22)(e)

Income Tax : The assessee submitted that he was managing director of SISICOL, which had many deposit schemes and 290 units or branches to aid i...

July 18, 2015 720 Views 0 comment Print

Notice u/s 148 for reassessment cannot be issued based on mere suspicion

Income Tax : It would be the proximity of the reasons with the belief of escapement of income, which would be the determinative factor for reop...

July 18, 2015 2924 Views 0 comment Print

Prior year interest cannot be disallowed if the change in the interest rate was retrospective

Income Tax : There is no dispute about the allowability of expenses. Only dispute is regarding the year of allowability. If the Assessing offic...

July 18, 2015 633 Views 0 comment Print


Addition cannot be made merely on the facts that assesse had filed a petition to claim the same

July 4, 2015 568 Views 0 comment Print

The assessee submitted that with respect to the addition of ₹24.3 crores, both the CIT(Appeals) and the ITAT had noticed that the matter with respect to this liability was sub-judice and pending adjudication in the Company Court which since by its interim judgment dated 25.4.2013

Commercial / Industrial properties cannot be assessed to Wealth tax

June 28, 2015 846 Views 0 comment Print

For the purpose of levy, assets are classified as two categories one as productive and other as non productive. Under the provisions of amended Act, tax is levied only on non productive assets such as residential house, urban land, jewellery, bullion, motor car etc. In the case in hand, industrial plots are being utilized as productive assets.

271(1)(c) : Penalty can be imposed on undisclosed bank accounts based on peak credits theory

June 28, 2015 4636 Views 0 comment Print

We find that it is not in dispute that the undisclosed bank account which was detected by the department contains transfer entries to other 5 undisclosed bank accounts maintained by the assessee. In view of this fact the Tribunal concluded that the subsequent disclosure of the assessee of existence of the said 5 bank accounts cannot be held as voluntary.

14A : No disallowance of expenditure can be made on estimate basis against exempt income

June 27, 2015 2527 Views 0 comment Print

The Revenue has not brought any positive material on record to show that the assessee actually incurred any expenses in relation to earning of exempt income. In our considered view, before making disallowance under section 14A, it was imperative on the part of the Revenue

Expense cannot be held unproved, un-genuine and bogus sham for merely because it remain unpaid on B/s Date

June 27, 2015 718 Views 0 comment Print

Simply because outstanding liability at the end of the year is comparatively higher, considering the amount of expenditure incurred during the year, does not empower the AO to disallow the actual outstanding liability unless it is found that the liability shown was not genuine.

In case of rejection of books of account profit ratio applied for earlier year should be considered

June 27, 2015 2285 Views 0 comment Print

Whether profit % can be applied on estimate basis if books of accounts are rejected, without reference to earlier year’s profit % where books were accounts were not rejected or whether the Assessing Officer is justified in Assessing the profit at a rate higher than earlier year in which profit was assessed by Assessing officer without specifying the reason for the same?

Even if Assessee fails to appear or attend his case CIT (A) should decide appeal on merits

June 27, 2015 2797 Views 0 comment Print

In our considered view, even if the assessee failed to put-in appearance, it is the duty of the CIT(A) to dispose of the appeal on merit on the basis of material available on record. Our view finds support from the decision of the Hon’ble Delhi High Court in the case of VODAFONE ESSAR LTD Vs. DISPUTE RESOLUTION PANEL–II & Ors. in W.P.(C) 7028/2010 order dated 02.12.2010.

Books cannot be rejected without verifying, merely on the ground that its afterthought of the Assessee

June 27, 2015 1004 Views 0 comment Print

It was incumbent upon the Assessing Officer to examine the books of accounts with the related evidences and documents and thereafter should have arrived at a decision. Without verification of books of accounts produced before him and bringing any material on record, the Assessing Officer was not justified in rejecting the books of accounts of the assessee as an afterthought.

If once income is already assessed by AO u/s. 44AE no separate addition to income can be made

June 27, 2015 1081 Views 0 comment Print

The contention of the assessee is that he has shown income from truck under section 44AE of Rs. 2,01,000/- which includes income of Rs.1,07,890/- from M/s. Chandan Carriers, and therefore, no separate addition of Rs.1,07,890/- is warranted. None of the lower authorities has verified this contention of the assessee.

271(1)(c) : Penalty cannot be imposed merely because assessee didn’t objected to addition

June 27, 2015 1232 Views 0 comment Print

However, it is a well-settled proposition that the quantum of penalty proceedings are separate proceedings and penalty cannot be imposed merely on the ground that the assessee did not challenge or agitate the issue before higher forum and accepted the disallowance made by the AO.

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