CA Prarthana Jalan

Certain Relaxations Needed to Make More Vishwas In Vivad Se Vishwas Scheme

Corporate Law - How much Vivad would be closed and how much Vishwas the Vivad se Vishwas scheme will be able to achieve that in coming months would be in front of all of us,but this scheme has proved the true integrity that we professionals have. It is the professionals who foregoing their professional opportunities and are educating […]...

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24th July | Income Tax Day – “कोष मूलो दण्डः (Kosh Muloo Dand)”

Corporate Law - As mark of celebration of 159th Income Tax Day on 24th July,2019, CBDT in a mega event to be held in Delhi to be graced by Hon’ble FM and other distinguished personalities of Finance Minstry, CBDT and Income Tax Department would be launching taxpayer’s e-assistance campaign....

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Do Surgical Strike , Not Tax Terrorism For Collection of Tax

Corporate Law - CBDT- HOW’S THE TAX COLLECTION? Income Tax Officers- high CBDT- HOW’S THE TAX COLLECTION? Income Tax Officers- HIGH CBDT –HOW’S THE TAX COLLECTION? Income Tax Officers- HIGH CBDT- I WANT TO HEAR HIGGGGHHHHHHHHHH Well, as we are marching towards March, i.e end of financial year, Income tax department by any means even by ignoring t...

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Dangerous Overdose of Drug of Social Media Sites/Apps

Corporate Law - “Rahul”, “Rahul”, “RAHUL…………………..””RAHUL DO YOU HEAR ME OR NOT?” . “Smriti”, “Smriti””SMRITI…………………” “I AM TELLING YOU SMRITI, I AM GONNA THROW THAT PHONE OF YOUR’S IN THE DUSTBIN” “PHONE……..PHONE……PHONE………..DIN BHAAR PHONE MAIN(DAY AND NIGHT ON PHONE)” Wel...

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Tax sites / Govt portals need Speed Booster

Corporate Law - On 31St August, all the professionals were just sitting helplessly infront of the Income Tax E-filing site that was moving with the speed of “Three toed sloths” and the last date of filing of return was ending with the speed of “Cheetah”. All were just praying that either the site runs or date gets extended. […]...

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Lockdown period wages: Employers & Employees Should Negotiate & Settle themselves: SC

Ficus Pax Private Limited Vs Union of India & Ors. (Supreme Court) - Ficus Pax Private Limited  Vs Union Of India & Ors. (Supreme Court) Hon’ble Supreme Court in an interim order passed today in the case of FICUS PAX PRIVATE LIMITED & ORS. P VERSUS UNION OF INDIA & ORS. has stated that Employers and Employees Should Try to negotiate and settle between ...

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Interest on PPF, Saving Bank deposit or Loan part of Aggregate Turnover For GST Registration

Re. Shree Sawai Manoharlal Rathi (GST AAR Gujarat) - In the case of Sawai Manoharlal Rathi, the Gujarat Authority for Advance Ruling has held that interest income from PPF, interest income from personal loan and advances given to family/friends and interest income from saving bank account to be included in aggregate turnover for GST registration....

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Unsecured Loan from relatives cannot be equated with Bank Loan

DCIT Vs. Prem Kumar Gupta (ITAT Delhi) - Hon'ble Delhi ITAT held that there is difference between loan taken from Banks and unsecured loans taken from the relatives. In the case of unsecured loans from the relatives, no formalities and bank guarantee have to be given. Thus the Hon'ble Tribunal has held 15% interest paid on unsecured loans ...

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Addition deleted as money deposited in the bank account was received from son

ITO Vs. Hukum Singh Rao (ITAT Jodhpur) - It was explained by the appellant that the money deposited in the bank account represented cash received from elder son, who was tax payer and the withdrawals in the bank account had a a chronologically progressive linkage of events....

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No penalty u/s 271B if appellant had bonafide belief

Dr. Shantanu Datta Vs ITO (ITAT Kolkata) - Hon'ble Kolkata ITAT has deleted penalty u/s 271B in the case of Dr. Shantanu Datta in I.T.A. No. 261/Kol/2017 as there was a bona fide belief entertained by the assessee in the facts and circumstances of the case and the same constituted a reasonable cause for the failure of the assessee to compl...

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Recent Posts in "CA Prarthana Jalan"

Lockdown period wages: Employers & Employees Should Negotiate & Settle themselves: SC

Ficus Pax Private Limited Vs Union of India & Ors. (Supreme Court)

Ficus Pax Private Limited  Vs Union Of India & Ors. (Supreme Court) Hon’ble Supreme Court in an interim order passed today in the case of FICUS PAX PRIVATE LIMITED & ORS. P VERSUS UNION OF INDIA & ORS. has stated that Employers and Employees Should Try to negotiate and settle between themselves issues relating to […]...

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Interest on PPF, Saving Bank deposit or Loan part of Aggregate Turnover For GST Registration

Re. Shree Sawai Manoharlal Rathi (GST AAR Gujarat)

In the case of Sawai Manoharlal Rathi, the Gujarat Authority for Advance Ruling has held that interest income from PPF, interest income from personal loan and advances given to family/friends and interest income from saving bank account to be included in aggregate turnover for GST registration....

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Certain Relaxations Needed to Make More Vishwas In Vivad Se Vishwas Scheme

How much Vivad would be closed and how much Vishwas the Vivad se Vishwas scheme will be able to achieve that in coming months would be in front of all of us,but this scheme has proved the true integrity that we professionals have. It is the professionals who foregoing their professional opportunities and are educating […]...

Read More
Posted Under: Income Tax |

24th July | Income Tax Day – “कोष मूलो दण्डः (Kosh Muloo Dand)”

As mark of celebration of 159th Income Tax Day on 24th July,2019, CBDT in a mega event to be held in Delhi to be graced by Hon’ble FM and other distinguished personalities of Finance Minstry, CBDT and Income Tax Department would be launching taxpayer’s e-assistance campaign....

Read More
Posted Under: Income Tax |

Do Surgical Strike , Not Tax Terrorism For Collection of Tax

CBDT- HOW’S THE TAX COLLECTION? Income Tax Officers- high CBDT- HOW’S THE TAX COLLECTION? Income Tax Officers- HIGH CBDT –HOW’S THE TAX COLLECTION? Income Tax Officers- HIGH CBDT- I WANT TO HEAR HIGGGGHHHHHHHHHH Well, as we are marching towards March, i.e end of financial year, Income tax department by any means even by ignoring t...

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Posted Under: Income Tax |

Unsecured Loan from relatives cannot be equated with Bank Loan

DCIT Vs. Prem Kumar Gupta (ITAT Delhi)

Hon'ble Delhi ITAT held that there is difference between loan taken from Banks and unsecured loans taken from the relatives. In the case of unsecured loans from the relatives, no formalities and bank guarantee have to be given. Thus the Hon'ble Tribunal has held 15% interest paid on unsecured loans taken as highly reasonable....

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Dangerous Overdose of Drug of Social Media Sites/Apps

“Rahul”, “Rahul”, “RAHUL…………………..””RAHUL DO YOU HEAR ME OR NOT?” . “Smriti”, “Smriti””SMRITI…………………” “I AM TELLING YOU SMRITI, I AM GONNA THROW THAT PHONE OF YOUR’S IN THE DUSTBIN” “PHONE……..PHONE……PHONE………..DIN BHAAR PHONE MAIN(DAY AND NIGHT ON PHONE)” Wel...

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Posted Under: Income Tax |

Tax sites / Govt portals need Speed Booster

On 31St August, all the professionals were just sitting helplessly infront of the Income Tax E-filing site that was moving with the speed of “Three toed sloths” and the last date of filing of return was ending with the speed of “Cheetah”. All were just praying that either the site runs or date gets extended. […]...

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Addition deleted as money deposited in the bank account was received from son

ITO Vs. Hukum Singh Rao (ITAT Jodhpur)

It was explained by the appellant that the money deposited in the bank account represented cash received from elder son, who was tax payer and the withdrawals in the bank account had a a chronologically progressive linkage of events....

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No penalty u/s 271B if appellant had bonafide belief

Dr. Shantanu Datta Vs ITO (ITAT Kolkata)

Hon'ble Kolkata ITAT has deleted penalty u/s 271B in the case of Dr. Shantanu Datta in I.T.A. No. 261/Kol/2017 as there was a bona fide belief entertained by the assessee in the facts and circumstances of the case and the same constituted a reasonable cause for the failure of the assessee to comply with the requirement of section 44AB. ...

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Penalty U/s. 271C cannot be imposed for updation error in software

State Bank of India Vs. Addl. CIT-(TDS) (ITAT Agra)

Assessee cannot be considered as having done willful neglect for non-compliance of the TDS provisions. This is just a technical mistake and, accordingly, the assessee cannot be held to be an assessee in default and no penalty can be imposed....

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Amendment in sec 43B is curative in nature and applies retrospectively

M/s. Simbhauli Sugar Mills Ltd. Vs. Addl. CIT (Allahabad High court)

Hon'ble Allahabad High court has in the case of M/S Simbhauli Sugar Mills Ltd in ITA No 607 of 2011 has held that amendment is sec 43B is curative in nature and would apply retrospectively....

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Re-assessment proceedings quashed as there was no nexus between reasons recorded and addition made

Krishan Kumar Vs. ITO (ITAT Delhi)

Delhi ITAT has in the case of Krishan Kumar v/s ITO in ITA No. 3985/Del/2017 has quashed the reassessment proceedings as there was no nexus between reasons recorded and addition made. ...

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CIT (A) should discuss or decide merits of case even in ex- parte decision

Pramod Kumar Pathak Vs. ITO (ITAT Agra)

Agra ITAT has remitted the file back to the CIT(Appeals) as CIT (Appeals) had just sustained Assessing Officer's order without himself discussing or deciding the merits of the case....

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Allahabad High Court also rules that sec 40(a)(ia) is applicable on “Payable”

Ashok Auto Sales Ltd v/s CIT (Allahabad High Court)

Allahabad HC in case of Ashok Auto Sales Ltd v/s CIT held that Vector shipping is not correct preposition of law as held by Honb'le SC in case of M/s Palam Gas Service vs. CIT....

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100% addition on bogus purchases cannot be done without doubting sales

Pravin Thanmal Shah HUF Vs. Asst. CIT(A) (ITAT Mumbai)

Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. In such situation, in our considered opinion, on the facts and circumstances of the case, 12.5% disallowance out of the bogus purchases meets the end of justice. Accordingly, I hold that the disa...

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No Penalty- When deeming provisions are applied for assessing income

Pr. CIT Vs. M/S Hariom Steels (P) Ltd. (Allahabad High Court)

Hon'ble Allahabad High Court has in the case of Hariom Steels Pvt Ltd has held that penalty cannot be levied when deeming provisions are applied for assessing income....

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No sec 40A(2)(b) rws 36 disallowance on Trade advance given to sister concern

CIT Vs. M/S Ghari Industries Pvt. Ltd. (Allahabad High Court)

No disallowance can be made under Section 40A(2) (b) read with Section 36 of the Income Tax Act of interest paid on borrowed funds for trade advance given out of commercial expediency to sister concerns....

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Mere receipt of information cannot be equated to reason to believe that income has escaped assessment

Piramal Enterprises Ltd. Vs. DCIT (Bombay High Court)

Mere receipt of information from any source would not by itself tantamount to reason to believe that income chargeable to tax has escaped assessment. In the present case the Assessing Officer prima facie has not done the bare necessary/rudimentary enquiry into the material received before he concludes that income chargeable to tax has esc...

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Penalty only on Disproved claim of expenditure & not unproved

Arun Duggal Vs. DCIT (ITAT Delhi)

Hon'ble Delhi ITAT held that Penalty can be imposed only on disproved claim of expenditure and not unproved claim of expenditure....

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As per Indian culture, competent members who work in business of family, are paid as others are paid

Smt. Jyoti Mantri Vs. ITO(ITAT Jaipur)

It is natural in Indian culture that if the members of the family are competent to work in the business of the family, naturally they will be required to pay the minimum / the same compensation/benefit/incentive as other employees are paid. ...

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Fees Recovery Committee/Forums- Need of The Hour?

We all as dignified professional, with utmost sincerity and perseverance do discharge our professional duties. We have commanded our fields and we do perform our duty to the best of our efforts, but somehow I feel, that our fraternity fails to collect the professional fees which is our legitimate right....

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Posted Under: Income Tax |

“Sudoku”- The Puzzle of Life

Sudoku is a Japanese game which is a logic-based, number-placement puzzle. In this game one has to fill a 9×9 grid with digits so that each column, each row, and each of the nine 3×3 subgrids all contains the digits from 1 to 9. The puzzle setter provides a partially completed grid, which has to be completely filled....

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Posted Under: Income Tax |

In absence of contumacious conduct penalty U/s. 271C not leviable

ITO (TDS), Vs Pushpanjali Hospital and Research Centre Pvt. Ltd. (ITAT Agra)

Brief facts relating to the case are that a survey 133A of the Act was conducted in the premises of the assessee on 15/10/2009 during the course of which it was found that the assessee had deducted tax amounting to Rs.15,76,219/-...

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No further addition if addition not made on re-assessment reasons

Anugrah Varshney Vs ITO (ITAT Agra)

In the absence of any addition having been made on incomes which the AO had reason to believe had escaped assessment, no addition of any other income could have been made and that the AO had exceeded his jurisdiction in passing the impugned order u/s 147....

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Take flight of your dreams: Happy Women's day

Our CA Profession is also not deprived of this gender discrimination. We have girls in huge numbers joining the course and also completing the course with flying colours but the number of girls or Female CA that join the main stream profession are very less in numbers. ...

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Posted Under: Income Tax |

While granting sanction u/s 151, application of mind is sacrosanct

I.T.O Vs M/s Observer Investment & Finance Pvt. Ltd (ITAT Delhi)

While granting sanction u/s 151 of the I.T Act,1961 for granting sanction for approval of re-assessment proceedings it is necessary for the authorithy to apply his/her mind. Mere affiction of signature along with date cannot be considered as proper approval....

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Department must not take advantage of ignorance of the assessee about his rights

Madhabi Nag Vs ACIT (ITAT Kolkata)

Hon'ble Kolkata ITAT has in its judgement of Madhabi Nag v/s ACIT has placed reliance on The CBDT Circular No.14 of 1955 dated 11.04.1955 and has taken a view that the officers of the department must not take advantage of ignorance of the assessee about his rights...

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234E Fee deleted in the absent of the enabling provisions u/s 200A

Sibia Healthcare Private Limited v./s Dy. Commissioner of Income-tax (TDS)

The Hon'ble Amritsar bench has given a landmark judgement on the issue of 234E Fee levied prior to June,2015 in the case of Sibia Healthcare Private Limited v./s Dy. Commissioner of Income-tax (TDS), in I.T.A. No.90/Asr/2015 and has deleted the addition-...

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Posted Under: Income Tax | ,

For invoking reassessment proceedings, reasons has to be recorded & not conclusions

ACIT Vs M/s Responsible Builders Pvt. Ltd (ITAT Delhi)

Hon'ble Delhi ITAT has in the case of ACIT V/s M/s Responsible Builders Pvt. Ltd in ITA No. 2726/Del /2011 has held that it is trite law that in order to determine whether there are reasons to believe that the income got escaped the assessment, one has to look at the reasons recorded by the Assessing Officer before the issuance of notice...

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Sec 50C(2) Mandates reference to DVO for ascertaining fair market value of property

Nikunjkumar H.Jariwala Vs ITO (ITAT Ahemdabad)

Hon'ble ITAT Ahemdabad in the case of Nikunjkumar H.Jariwala v/s ITO in I.T.A. No. 2404/Ahd/2011 vide order dated 19/03/2015 has held that as per the mandate provisions of section 50C(2) of the Act, the AO was not justified in adopting the value of the property as adopted by the stamp valuation authority without referring to the DVO for a...

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A mere non discussion or non mention in assessment order would not justify sec 263

CIT Vs M/s. Krishna Capbox (P) Ltd. (Allahabad High Court)

Hon'ble Allahabad High Court in the case of CIT V/s M/S Krishna Capbox (P) Ltd in Income Tax Appeal No. 1 of 2015 has held that a mere non discussion or non mention in assessment order would not justify section 263 to be applied....

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35 Pre-Budget suggestions by CA Prarthana Jalan

1. Tax Slabs should be revised as per the DTC Bill Provisions The Parliamentary Standing Committee on Finance (PSC) in its Report on the Direct Taxes Code Bill 2010 (DTC Bill) has appropriately recommended the following revised tax slabs for individual taxpayers. 0-3 Lakh – Nil 3-10 Lakh-  10% 10-20 Lakh – 20% Beyond 20 Lakh – [&...

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Posted Under: Income Tax |

Its inhuman to collect money for admission in medical college

M/s Sree Anjaneya Medical Trust Vs CIT (ITAT Cochin)

Hon'ble Cochin ITAT has in the case of M/s Sree Anjaneya Medical Trust while disposing off the appellant's plea for registration u/s 12A has held that collection of money for admission of students in the professional colleges is not only inhuman but also against the scheme of the Constitution of sec 12A....

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Penalty based on order passed in cursory & summary manner not sustainable

M/s. Fortune Ploymers Industries Pvt.Ltd. Vs DCIT (ITAT Delhi)

Hon'ble Delhi ITAT has in the case of M/s. Fortune Ploymers Industries Pvt.Ltd. vs. DCIT, has held that Penalty u/s 271(1)(c) cannot be imposed on an un-detailed assessment order passed in a cursory and summary manner . ...

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Reimbursement of medical expense is not perquisite u/s 17(2)

Rajkamal R. Bajaj v/s ADDL. CIT (ITAT Mumbai)

Brief facts of the case are that The assessee received a sum of Rs.90,090/- towards reimbursement of medical expenses from the company M/s Bajaj Consultants Pvt. Ltd., wherein, he is a Director and claimed the same as exempt u/s 17(2) of the Act. ...

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Indexed cost of acquisition of gifted assets

DCIT Vs Soni Sonu Mirchandani (ITAT Delhi)

Hon'ble Delhi ITAT has in the case of DCIT V/s Soni Sonu Mirchandani has held that indexed cost of acquisition to be computed with reference to the year in which the previous owner first held the gifted assets. ...

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Mere Invoking sec 50C not amounts to concealment or furnishing inaccurate particulars of income

ACIT Vs Sunland Metal Recycling (ITAT Mumbai)

The fact of actual sale consideration received by the assessee has not been disputed by the Assessing Officer but the addition was made simply by applying the deeming provisions of section 50C. Therefore, in view of the various decisions as relied upon by the Ld. Authorized Representative as well as by the CIT(A), we do not find any error...

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Incorrect claim would not tantamount to furnishing of inaccurate particulars

ACIT Vs M/s.Beekman Heiix India Consulting P. Ltd. (ITAT Delhi)

The dictum laid down in case of Rubber Udyog Vikas (P) Ltd. is that incorrect claim would not tantamount to furnishing of inaccurate particulars unless it is established that assesee has acted with malafide intention....

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Maxim of “audi alteram partem”cannot be sacrificed at the altar of administrative convenience or celebrity

Raman Kumar Kapoor Vs ACIT (ITAT Delhi)

The principles of natural justice are those which have been laid out by the Courts as being the minimum protection of the rights of an individual against the arbitrary procedure that may be adopted by a judicial, quasi-judicial and administrative authority while making an order affecting those rights....

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TDS U/s. 194C attracted on contract of putting up hoarding

Madison Communication Pvt. Ltd. Vs Dy. CIT (ITAT Mumbai)

The assessee has shownexpenditure on advertisement through outdoor display which includes payment for advertisement on hoarding/board. The A.O. further noticed that the assessee has deducted TDS @ 2% u/s.194C on these payments....

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Entire amount of deposit in bank cannot be treated as unexplained

ITO Vs Rajeev Kumar Gupta (ITAT Agra)

In the assessment order passed u/s.144 the income was at Rs.12,96,457/- as against the returned income of Rs.1,20,000/-. During the course of assessment proceeding, the AO found that there was a cash deposit of Rs.11,76,457/- in the bank account of the assessee maintained with ICICI Bank. ...

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Statutory impost paid as damages, penalty or interest, if compensatory in nature, is allowable as business expenditure

M/s M.P. Gupta Vs ITO (ITAT Mumbai)

The assessee entered into an agreement with an Export House M/s Rajnikant & Bros. As per the terms of the agreement M/s Rajnikan & Bros imported consignment of “Almonds in Shell” at Madras Port. This import was actually for one of the nominee of the assessee M/s Peanut Products ...

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Asset Side of Balance Sheet cannot be isolated from Liability side

M/s. Manas Greenland Pvt. Ltd. Vs ITO (OSD) (ITAT Hyderabad)

The assessee is engaged in agricultural and allied activity. This company is one of the group companies constituted by Shri B.Ramalinga Raju and his family members. During the course of scrutiny proceedings, the Assessing Officer called for the books of account of the assessee...

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Sec 2(22)e is not attracted on Security deposit made in normal course of business

CIT Vs M/s Atul Engineering Udyog (Allahabad High Court)

In Commissioner of Income Tax vs. Creative Dyeing and Printing Pvt. Ltd., 318 ITR 476, an advance was given to the said assessee by the sister concern, which held 50% of the share holding in the assessee concern for mordenisation project....

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A.O. is not only an adjudicator but also an investigator

Krishna Shriram Vs Commissioner of Income Tax (ITAT Delhi)

It is settled law that that frequency and magnitude of transaction are also important factor to decide whether the transaction is business transaction or investment transaction. Now in our considered opinion, the magnitude of share transaction in this case does call for any enquiry ...

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While granting Registration U/s. 12A CIT not required to look into trust activities

CIT Vs Varanasi Welfare Trust (Allahabad High Court)

At the time of registration under Section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 and 12 of the Act, the Commissioner of Income Tax is not required to look into the activities, where such activities have not or are in the process of its initiation. ...

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Sec 292BB would operate prospectively as it curtails the right of the assessee

M/s. Ghanshyamdas Gems and Jewels Vs DCIT (ITAT Hyderabad)

Hon'ble Hyderabad Bench has in the case of M/s. Ghanshyamdas Gems and Jewels v/s DCIT in IT(SS)A No. 16/Hyd/2011 has held that Section 292BB of the Income Tax Act, 1961 would operate prospectively as it curtails the right of the assessee....

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Notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late

Shri G.N.Mohan Raju, Vs ITO (ITAT Bangalore)

Hon'ble Bangalore ITAT has in the case of Shri G.N.Mohan Raju,v/s ITO in ITA No.242 & 243(Bang) 2013 has held that notice u/s 143(2) issued prior to filing of return in response to notice u/s 147 is invalid, even if return is filed late....

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A mere diference is perception of CIT & AO cannot make the order erroneous & prejudicial to the interest or revenue

Smt. N.K. Vinayak Vs Commissioner of Income Tax (ITAT Delhi)

In sunbeam Auto case Hon’ble Delhi High Court has held that though revision can be made in a case when there is lack of enquiry in the order, however, inadequate inquiries cannot be a basis of revision as it depends on the perception of the officer exercising assessment powers....

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Books of Accounts cannot be rejeced on mere fall in G.P Ratio

A.C.I.T. Circle- I Vs Smt. Meena Singh Shekhawat (ITAT Jodhpur)

We have found that the G.P. rate in this year has been on lower side. However, the decrease in G.P. rate stands explained by the undeniable reasons that there is heavy increase in purchase price, freight cost and export cost....

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Omission of notice u/s 143(2) of the Act is not merely a procedural irregularity

ITO Vs Shri Bhuvanesh Maheshwari (ITAT Jodhpur)

Facts of the case in brief are that the assessee filed his return of income belatedly on 26/03/2010 showing taxable income of Rs. 6,03,414/-, which was processed under section 143(1) of the I.T. Act, 1961 (hereinafter referred to as Act, for short on 05/04/2010....

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Sec. 269SS not violated in accepting share application money or deposit in cash

M/s Eqbal Inn & Hotels Ltd. Vs The JCIT (ITAT Chandigarh)

Share Application Money or deposit in the current account cannot be included in the definition of deposit so as to trigger provisions of sec 269SS of the Income Tax Act,1961. Brief facts of the case were that the assessee company was in the business of construct ion of the hotel....

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ITAT Cannot be Precluded from handling any point which appertains to assessment even if it is raised for the first time

Pradeep G. Vora, Vs ITO (ITAT Mumbai)

Hon'ble ITAT Mumbai in the case of Pradeep G. Vora v/s ITO has dealt in depth about the power of the tribunal to admit new additional ground and has held that tribunal Cannot be Precluded from handling any point (facts or law) which pertains to the assessment even if it is raised for the first time before it and was not raised before the ...

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A.O Cannot act as a reviewing authorithy u/s 147 of Income Tax Act,1961

DCIT Vs Century Textiles and Industries Ltd. (ITAT Mumbai)

The Assessing Officer has though power to re–assess but no power to review and if the concept of change of opinion is removed, then in the garb of the re–assessment, review of earlier orders would take place....

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Reference u/s 142A is exclusive prerogative of AO

Dr. G. Premalatha Vs The Joint CIT (ITAT Hyderabad)

Hon'ble Hyderabad ITAT has in the case of Dr. G. Premalatha v/s DCIT has categorically held that the CIT(A) had no jurisdiction in appeal proceedings to call for a valuation report, which is the exclusive prerogative of the AO....

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Information from investigation wing is only a prima-facie material and not conclusive

DCIT Vs Heminder Kumari (ITAT Delhi)

Hon'ble Delhi ITAT has in the case of DCIT v/s Heminder Kumari in ITA No. 4210-4213/Del/2013 has held that the information received by the Assessing officer from his investigation Wing, at best, be regarded as a prima-facie material, but could not be construed as conclusive for use against the assessee to fasten any tax liability, becau...

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Business loss can be set off against addition u/s. 68 or undisclosed income

M/s. K.R. Automobiles Vs ACIT (ITAT Ahemdabad)

Once loss is determined, the same should be set off against the income determined under any other head of income including undisclosed income. Hon'ble ITAT Ahemdabad Bench in the case of M/s. K.R. Automobiles v/s ACIT in ITA No.1972/Ahd/2012 has held that business loss can be set off against the addition u/s.68 of the Act by observing as...

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Addition cannot be made only on the basis of a surrender simplictor

ITO Vs Ram Prakash (ITAT Agra)

Brief Facts of the case are that the assessee is engaged in the business of foodgrains. During the course of the assessment proceedings, the Assessing Officer noticed that the assessee has shown unsecured creditors amounting to Rs 80,27,616 but, as certain payments made to these persons ...

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Sec 153A cannot be used to re-agitate concluded assessment in absence of any incriminating material

DCIT Vs Kalyani Chaturvedi (ITAT Agra)

Sec 153A cannot be used to re-agitate concluded assessment in the absence of any incriminating material. Hon'ble Agra ITAT Bench has in the order of DCIT V/S Kalyani Chaturvedi has held that assessments that have attained finality don't abate at the time of search and they cannot be done de-novo u/s 153A of the Income Tax Act, 1961 in th...

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A.O should refrain from adopting double standards of accepting in remand proceedings yet challenging it at appellate forum

ACIT Vs Praveen Kumar (ITAT Agra)

In the case of ACIT v/s Praveen Kumar there was an addition made on account of unsecured loan and interest paid thereon. All the details were furnished before the A.O in form of account of the creditors along with acknowledgement of their income tax returns and bank statement .But summons issued to lenders were not responded . ...

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Disallowance u/s. 40(a)(ia) applies only to amounts ‘payable‘ as of 31st March – SC

Commissioner of Income Tax Vs Vector Shipping Services (p) Ltd (Supreme Court of India)

SC approves HC ruling - Disallowance u/s. 40(a)(ia) applies only to amounts ‘payable‘ as of 31st March and not to amounts already ‘paid‘ during the year...

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ITAT admits Linkedin Profile as additional Evidence

GE Energy Parts Inc. Vs Addl. Director of Income-tax (ITAT Delhi)

In the petition for admission of additional evidence it is submitted on behalf of department that the Linkedin Profile of employees of Assessee are available in public domain and down loaded from the web site of internet and the source is indicated against the same....

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Relationship between a hospital and employee depend on terms of contract between them to determine 192 or 194J applicability

M/s Ravindranath GE Medical Associates Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

On perusal of the order passed by the Tribunal in case of DCIT Vs. M/s Wockhardt Hospitals Ltd., (supra) it is to be seen that service agreement entered in case of M/s Wockhardt Hospitals Ltd., clearly establishes an employer and employee relationship since Doctors are governed...

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If no additions made on grounds of reassessment, than no addition can be made on other aspects

Rajeev Kumar Goyal Vs ITO (ITAT Agra)

If no additions made on grounds set for reasons for reassessment, than no addition can be made on other aspects The legal position is fairly well settled on the issue that in a reassessment proceeding, when no additions are made in respect of the income, purportedly escaping the assessment, set out in the reasons for re-opening the asses...

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Charity from loan taken is Not a valid reason for denying sec 12AA registration

Neesu Human Resource & Welfare Society Vs CIT (ITAT Agra)

Merely because and institution has borrowed funds, one cannot conclude that the objects of such institution cannot be charitable. The assessee may borrow funds for fulfillment of its objects, therefore, we have stated in framing words, the mere facts of borrowing cannot be against the assessee at the stage of grant of registration....

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Transfer of loan through journal entry is not violation of sec 269

ITO Vs Sh. Dinesh Jain (ITAT Delhi)

Hon'ble Delhi High court in the case of Dinesh Jain has held that Penalty u/s. 271E is leviable if a person repays any loan, otherwise, than in accordance with provisions of section 269T. As per section 269T no person shall repay the loan otherwise, than by an account payee cheque or account payee bank draft drawn in the name of the perso...

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A.O Zeal to protect interest of revenue has to be tempered with rules of fair play

Addl. Commissioner Of Income Tax And Anr. Vs Sony Mobile Communications (India) Pvt.Ltd. (Delhi High Court)

The assessing officer is a prospector of the revenue and he is no doubt expected to protect the interests of the revenue zealously, but such zeal has to be tempered with the rules of fair play and an anxiety to ensure that a opportunity is not lost to the assessee to make alternative arrangements for clearing the tax dues, once the stay a...

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Exemption U/s. 10(23-C) (iiiad) even when the assessee had not claimed any exemption under the Section in assessment proceedings

Commissioner Of Income Tax Vs Om Sarla Babu Educational Trust (Allahabad High Court)

Held - The assessee trust has taken various steps, including the construction of building and getting the necessary permission and sanction for running the school; so as to bring the school into "existence" during the year, although the school have separate running classes from next ...

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Technical infirmity, is of no practical significance if additions on merits cannot be sustained

A.C.I.T. Vs Dakshinanchal Vidyut Vitran Nigam Limited (ITAT Agra)

"As evident from a plain look at the ground of appeal, the actual grievance of the appellant is not on merits but on the legal issue regarding limitations on the powers of the CIT(A) on the ground that post 1st June 2001...

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Allhabad HC- Satisfaction note necessary for initiating 153C

Commissioner of Income Tax (Central) Vs M/S Gopi Apartment (Allahabad High Court)

A bare perusal of the provision contained in Section 153C of the I .T. Act leaves no doubt that, as is provided under Section 158BD, where the Assessing Officer, while proceeding under Section 153A against a person who has been subjected to search and seizure under Section 132(1)...

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Adjustment in book profit for depreciation not permissible in depreciation amount is certified by the auditor

Pune Heat Treat P. Ltd. Vs ITO (ITAT Mumbai)

It is an admitted fact that the assessee has changed the method of depreciation from straight line method to written down value method. Deprecation has been calculated in accordance with the new method from the date of assets coming into use....

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Sec 154 cannot be resorted for applying sec 115JB of Income Tax Act,1961

ACIT Vs M/s Cardinal Drugs Pvt. Ltd. (ITAT Agra)

In the case of Cardinal Drugs Pvt Ltd.Hon'ble ITAT has observed that there was no scope for the A.O. to have resorted to the provision of Section 154 of the Act for the purpose of enhancing the income of the assessee.by stating as under:- The A.O. on long drawn process of reasoning should not have passed the order under Section154 of the ...

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Quality & lavishness of construction is not incriminating material

ACIT Vs Shri Yogendra Kumar Singhal (ITAT Agra)

Agra ITAT in the case of ACIT Vs. Shri Yogendra Kumar Singhal has held that Quality & lavishness of construction is not incriminating material. Reference cannot be made to the Valuation Officer in the absence of incriminating material/document found during the course of search...

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Re-appreciation of seized material in subsequent proceedings by the AO is unjustified

ACIT Vs Kalyani Chaturvedi (ITAT Agra)

Hon'ble ITAT Agra in the case of ACIT V/s. Kalyani Chaturvedi held that Re-appreciation of seized material in subsequent proceedings by the AO is unjustified and quashed the Re-assessment Order. Hon'ble ITAT has held as under...

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Recognition U/s. 80G(5) cannot be rejected for Mere non Commencement of one of the activities mentioned in object clause

Commissioner Of Income Tax Vs Vihangam Yoga Prachar And Social Welfare Trust Lucknow (Allahabad High Court): Income Tax Appeal No. 35 of 2013

ALLAHABAD High Court Rejects Revenue’s denial of Sec 80G(5) recognition on the ground that the assessee-trust did not commence one of the activities mentioned in object clause- The fact that the assessee was still to commence the activity of establishing a hospital for imparting medical treatment would not by itself result in the reject...

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SC : Dismisses Revenue’s SLP; Search-warrant in joint names makes block-assessment invalid

C.I.T. Vs Madhu Chawla (Supreme Court of India)

SC has dismissed the revenue appeal in which the Allahabad High Court had confirmed the ITAT stand of quashing the assessment order on the ground that the assessment order in the name of individuals could not be made when the warrant of authorisation was issued in the joint names of Ashok Chawla, Smt. Madhu Chawla and Shri Anuj Chawla. ...

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Merely applicability of sec 50C will not prove escapement of Income

Income-tax Officer Vs Shri Haresh Chand Agarwal, HUF (ITAT Agra)

Section 50C is not final determination to prove that it is a case of escapement of income. The report of approved valuer may give estimated figure on the basis of facts of each case. Therefore, on mere applicability of section 50C would not disclose any escapement of income in the facts and circumstances of the case....

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