Balaji Enterprise Vs ACIT (ITAT Guwahati) -
Balaji Enterprise Vs ACIT (ITAT Guwahati) The case of the assessee was reopened u/s 148 by the ACIT, Investigation, Delhi, on the basis of CBI search. When the question of jurisdiction came before the Hon’ble High Court, it was held that where the assessee shifts his residence etc., the AO of the place where the […]...
Read More
Pawan Mundra Vs DCIT (ITAT Jaipur) -
Pawan Mundra Vs DCIT (ITAT Jaipur) The issue under consideration whether AO is justified levying penalty under section 271AAB on failure to offer explanation about the source of the undisclosed investment in land? ITAT states that during course of post search proceedings, assessee admitted an income of Rs. 6,00,000 on account of undisclos...
Read More
Gigabyte Technology (India) Private Ltd. Vs CIT (Bombay High Court) -
The issue under consideration is whether the assessment order u/s 143(3) made by the AO in clear breach of the mandatory provisions of Section 144C is merely erroneous or is void ab initio?...
Read More
Self assessment - The assessee is required to make a self assessment and pay the tax on the basis of the returns furnished. Any tax paid by the assessee under self assessment is deemed to have been paid towards regular assessment. Regular assessment - On the basis of thereturn of income chargeable to tax furnished by the assessee an intim...
Read More
Sudhakar Motiram Kadam Vs ITO (ITAT Pune) -
The issue under consideration is whether the assessee can challenge the order of AO for which he has agreed before without there being any contrary evidence?...
Read More
ITO Vs Ajay Raj (ITAT Delhi) -
ITO Vs Ajay Raj (ITAT Delhi) The issue under consideration is whether the notice u/s 143(2) served on wrong address is sustainable in law? ITAT states that, the notice u/s 143(2) of the Act was issued to the address at “85, Kumharon Wali Gali, Village Khampur, Delhi” which was not served on the assessee whereas […]...
Read More
Manju Kaushik Vs DCIT (ITAT Jaipur) -
The issue under consideration is whether the conversion of case from limited scrutiny to complete scrutiny prior to receipt of approval from Pr. CIT is justified in law?...
Read More
The Scrutiny Assessments under Income Tax Act 1961 are made u/s 143(3). For many years now many of the returns of the assesses are accepted as they are being filed by the assesses and intimation is sent u/s 143(1) and only fewer cases are selected for scrutiny assessment based upon some predetermined criterias. Therefore every assessee de...
Read More
Betts India (P) Ltd. Vs. ACIT (Bombay High Court) -
whether depreciation is mandatory to be granted while determining the Appellant's entitlement to the deduction under Section 80IB of the Act, even though the Appellant had not claimed such depreciation?...
Read More
Shri Abhishek Acharya Vs ITO (ITAT Mumbai) -
The issue under consideration is whether the assessment order passed without serving of the notice u/s 143(2) on correct address as mentioned in ITR is considered as Valid order?...
Read More
Sankha Mukherjee Vs ACIT (ITAT Kolkata) -
The issue under consideration is whether the addition on the income from foreign asset earned through the retirement plan mentioned in FA schedule is taxable in India or not?...
Read More
American Express (I) P. Ltd. Vs DCIT (ITAT Delhi) -
The issue under consideration is whether disallowance of relocation expenses u/s 40(a)(i) of the Act and non granting of tax deducted at source with respect to that expense is justified in law?...
Read More
Hi-tech Estates & Promoters Pvt Ltd. Vs PCIT (ITAT Cuttack) -
The issue under consideration is whether as per Section 43CB, profits and gains of a construction company mandatorily be determined on the basis of percentage completion method for revenue recognition?...
Read More
Rajesh Kumar Adukia Vs DCIT (ITAT Ranchi) -
Whether A.O. is right in dismissing the claim of the assessee u/s. 54F of the Act on the ground that residential flat was not constructed after the date of transfer and they were constructed alongwith saleable flats?...
Read More
Sumit Balkrishna Gupta Vs ACIT (Bombay High Court) -
Sumit Balkrishna Gupta Vs ACIT (Bombay High Court) The issue under consideration is whether the issuing of a notice u/s 143(2) in the name of the wrong person is sustainable in law? High Court states that it is a fact that the petitioner had filed return for the assessment year 2016-17 in the name of […]...
Read More
Pandian Hotels Ltd. Vs DCIT (Madras High Court) -
The issue under consideration is whether the expenditure incurred in renovation and redecoration of rooms in a hotel is a revenue expenditure or capital expenditure?...
Read More
RMP Holding (P) Ltd. Vs ITO (ITAT Delhi) -
The issue under consideration is whether the re-opening of assessment u/s 147 on the basis of wrong appreciation of facts can be sustained in law?...
Read More
Ashok S Vakharia HUF Vs ITO (ITAT Mumbai) -
The issue under consideration is whether the CIT(A) is correct in confirming addition u/s 69C of the Act on account of unexplained purchases made during the year, calculated on the basis of peak credit?...
Read More
ACIT Vs Shri Sudesh Kumar Gupta (ITAT Jaipur) -
whether CIT(A) is justified in quashing the action of the AO u/s 154 of the Act in applying provision of section 115BBE of the IT Act on undisclosed investment surrendered during the course of survey proceedings?...
Read More
Mahindra & Mahindra Limited Vs DCIT (ITAT Mumbai) -
The issue under consideration is whether the expenditure incurred by the assessee for the expansion will be considered as Capital Expenditure and allowability of the depreciation on the same?...
Read More
An assessee is required to file an income tax return under Section 139 or in response to notice under section 142, consisting all the details of income earned during the previous year. Once the return is filed the next step of Income tax department is to examine the return for its correctness. This examination is known as Assessment....
Read More
Lionbridge Technologies P. Ltd. Vs ACIT (ITAT Mumbai) -
Whether the re-opening of assessment u/s 147 initiated by AO is justified in law? Re-opening of assessment on basis of Internal Audit Objection Not Justified....
Read More
ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) -
ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) The issue under consideration is whether the set off of brought forward losses and unabsorbed depreciation of merged division in revised return is justified in law? In present case, the assessee Company had filed the original return of income on 28.09.2010 showing total i...
Read More
Dev Milk Foods Pvt. Ltd. Vs ACIT (ITAT Delhi) -
The issue under consideration whether conversion of the case from limited scrutiny to complete scrutiny is justified in law?...
Read More
Tapan Kumar Biswas Vs ITO (ITAT Kolkata) -
Whether the higher rate of depreciation can be granted to the vehicles used for the display of advertisement under the provisions of the Income Tax Act, 1961....
Read More
PCIT Vs Alag Securities Pvt. Ltd. (Bombay High Court) -
In the present case, Assessee is engaged in the business of providing accommodation entries to entry seekers. During the assessement proceedings AO held that the identity of the parties involved in the transactions were not furnished as well as genuineness of the transactions relating to total cash deposits were not satisfactorily explai...
Read More
NIIT Foundation Vs CIT (ITAT Delhi) -
NIIT Foundation Vs CIT (ITAT Delhi) Online Coaching considered as Education u/s 2(15) hence eligible for Exemption under section 11/12 The issue under consideration is whether the CIT(A) is correct in holding that the activity carried out by the Appellant is not in the nature of ‘education’ within the meaning of Section 2(15) ...
Read More
DCIT Vs SovaIspat Limited (ITAT Kolkata) -
The issue under consideration is whether industrial Promotion Assistance (IPA) received by the assessee-Company from the West Bengal Government is taxable under income tax?...
Read More
Shri Dinesh Khodidas Patel HUF Vs ITO (ITAT Ahmadabad) -
Shri Dinesh Khodidas Patel Vs ITO (ITAT Ahmadabad) The issue under consideration is whether A.O. is correct in referring the matter to DVO to find FMV by rejecting valuation report submitted by assessee? In the present case, assessee sold a land along with others co-owners. It had submitted the valuation report as on 1-4-1981 of […...
Read More
DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) -
DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) The issue under consideration is whether the A.O. is correct in rejecting the valuation report obtained by the assessee? In the present case, assessee had sold its land and building. Assessee had taken the cost of acquisition for land as per valuation report as at 1-4-1981 as against […]...
Read More
Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi) -
Nikon India Pvt. Ltd. Vs DCIT (ITAT Delhi) The issue under consideration is whether the assessment will sustain even if the Assessing Officer ignoring the statutory provisions of section 144C, passed the Final assessment order without issuing draft assessment order to the assessee? In the present case, the Tribunal vide order dated 31.03....
Read More
Ajanta Pharma Limited Vs DCIT (ITAT Mumbai) -
The issue under consideration is whether the penalty levied u/s 271AAB of the Act is justified on Income voluntarily admitted during Search by Appellant?...
Read More
Maharashtra State Board of Technical Education Vs ITO (ITAT Mumbai) -
The issue under consideration is whether CIT(A) is correct in holding that the appellant is not a state under Article 289 of the Constitution of India and therefore, liable to tax under the Income Tax Act?...
Read More
Audhut Timblo Vs ACIT (Bombay to Goa High Court) -
The issue under consideration is whether A.O. is correct in issuing Notice under section 147 for re-opening of assessment irrespective of the fact that the material on which he relied is already present in front of him at the time of assessment u/s 143(3)?...
Read More
ITO Vs Satish Singh Bhati (ITAT Delhi) -
The issue under consideration is whether CIT(A) is correct by annulling the assessment order on the ground that no notice under section 143(2) was issued before the completion of assessment?...
Read More
These days people are getting different types of notices/intimations from the Income Tax department by different modes such as delivery by post or by an e-mail. This article aims to highlight the different situations in which income tax notices can be received and how to respond to those notices if anyone receives the same. ...
Read More
Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. ...
Read More
Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur) -
Chordia Buildcon Pvt. Ltd. Vs DCIT (ITAT Jaipur) The issue under consideration is whether the action taken by the AO u/s 147 r.w.s 148 is justified in law? The case of assessee was originally selected for scrutiny and a detailed questionnarie was issued alongwith notice u/s 142(1). The AO asked specific queries with regard to […]...
Read More
Maharashtra Engineering Vs PCIT (ITAT Pune) -
Issues have been examined by the A.O and just because the opinion as arrived by the A.O is at a variation of the opinion of the learned Pr. CIT, would not grant the learned Pr. CIT the powers of revision u/s 263 of the Act....
Read More
Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing his return of income. Once the return of income is filed by the taxpayer...
Read More
Kailash Kanhaiyalal Gidwani Vs ACIT (ITAT Pune) -
Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessme...
Read More
If you are thinking of seeking rectification of the intimation issued by Centralized Processing Center at Bangalore, then you must carefully review the Common Error Guide and the typical causes of error presented below in order to prepare an accurate...
Read More
Cessna Garden Developers Pvt. Ltd. Vs ACIT (ITAT Bangalore) -
The issue under consideration is whether deduction under section 80IAB will be allowed against the income of lease/ rental income from development of SEZ irrespective of wrong classification of head of income....
Read More
Whether an assessing officer is required to entertain and consider a fresh claim or a modification in a claim made at any time before the completion of assessment u/s 143(3) of the income-tax act....
Read More
CIT Vs A.R.Builders & Developers P Ltd, (Madras High Court) -
The issue under consideration is that, when two views are possible and A.O. adopt one of the view and passed his order accordingly. But that view is not acceptable by PCIT, in such case can PCIT adopt its one of the other views and call the order of A.O. the erroneous?...
Read More
Dear Readers, now these days Income Tax Department is very active in tax collection matters to achieve their targeted collection. Income Tax law mainly permits self-Assessment by assesse, related to their Income Tax Liability, however, from huge database of assesses limited numbers of returns are selected for scrutiny assessment. Now, Inc...
Read More
CBDT has issued instruction dated 12th February 2018 to conduct assessment proceedings in scrutiny cases electronically, saying that except for search-related assessments, proceedings in other pending scrutiny assessment cases shall be conducted only through the E-proceeding functionality in ITBA/e-filing....
Read More
This article is covering in depth knowledge of various types of Jurisdictions, Various types of Assessments under Income Tax Act, 1961 and details of new system i.e. Jurisdiction-Free Assessment which was introduced from 2016. Jurisdiction is prescribed under Section 124 of the Income-tax Act, 1961 and assessment includes Summary assessme...
Read More
n the era of technology and data analytics, Income Tax Department too empowered itself with one of the most enabling report which allowed itself to peep itself into the assessee’s deeper secrets by laying down the responsibility on Financial Institution like Banks, Mutual Funds, to submit AIR (Annual Information Report). In this article...
Read More
Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing up his return of income. Once the return of income is filed up by the taxpayer, the next step is the processing of the return of income by the Income Tax Department. The […]...
Read More
PCIT Vs. M/s I-Ven Interactive Limited (Supreme Court) -
Mere mentioning of the new address in the return of income without specifically intimating the Assessing Officer with respect to change of address and without getting the PAN database changed, is not enough and sufficient....
Read More
Nazare Vikas Karyakari Seva Shakari Society Ltd Vs ITO (ITAT Pune) -
Addition on non-CASS issues made without obtaining due permission from superior authorities was in contravention of CBDT guidelines and, therefore, could not be sustained....
Read More
Purnima Komalkant Sharma Vs DCIT (Gujarat High Court) -
Purnima Komalkant Sharma Vs DCIT (Gujarat High Court) In the given case, the petitioner is an individual and engaged in the business of real estate and transportation and ship breaking. The return of income was accepted without any scrutiny. Thereafter, a search action took place at the premises of the petitioner. Upon conclusion of such...
Read More
We become surprised when we receive any intimation or notice from Income tax department even when we have successfully filed our Income tax return. First thing we have to understand the difference between an intimation and a notice. Intimation is just the outcome of the processing of return and we may not be required to […]...
Read More
Notice under Section 142(1) - Inquiry before assessment Notice under Section 142(1) is usually served to call upon documents and details from the tax payers, and to take a particular case under assessment.The basic purpose is to inquire the details of the assessee before making assessment under the Act. It can be related to ‘Preliminary...
Read More
Income tax assessment is estimation for an amount assessed while paying Income Tax by assessee himself or by income tax officer. Following types of assessment are carried out under Income tax act. We will discuss each type of assessment in detailed in this article....
Read More
Brothers & Sisters Enterprise Vs JCIT (ITAT Kolkata) -
When the CIT is satisfied with the reasons given by the Assessing Officer, he in not once again give separate reasons or repeat the reasons recorded by the Assessing Officer and then give his approval for the same....
Read More
Crescent Construction Co. Vs. Asst. CIT (ITAT Mumbai) -
The primary condition of reasonable belief having nexus with the material on record is still operative. However, we are of the view, that mere fresh application of mind to the same set of facts or mere change of opinion does not confer jurisdiction to the assessing officer even under the post-1989 section 147 of the Act. ...
Read More
Shri Fazal Sarang Vs DCIT (ITAT Mumbai) -
AO's assumption of jurisdiction under section 153A of Income Tax Act,1961 and consequent passing of order of assessment u/s. 143(3) r.w.s. 153A is void if Assessing Officer erred in assuming jurisdiction u/s 153A...
Read More
Framing of Quality Assessments is an essential part of any risk management strategy. Quality of Assessments is being used as one of the most important indicator to judge the performance of tax department. Therefore, it is imperative that various authorities in the hierarchy of Income-tax Department discharge their respective roles in the ...
Read More
It has been observed that in many cases an assessee may wish to make a claim which was not made in the return of income filed under section 139. Where the assessee makes a claim of any expenditure or a deduction during the assessment proceedings which had not been made in the return of income […]...
Read More
Krypton Industries Ltd. Vs DCIT (ITAT Kolkata) -
Krypton Industries Ltd. V/s. DCIT (ITAT Kolkata)- Whether the action of AO for framing the assessment under section 147 is within his jurisdiction though the time for scrutiny assessment under section 143(3) has not lapsed. ...
Read More
Subhash Chander Vs CIT (Punjab & Haryana High Court) -
Punjab & Haryana High Court held In the case of Subhash Chander vs. CIT that it is open for the AO to complete assessment either u/s 144 or u/s 143(3), in case compliance of notice has not been done by the assessee....
Read More
CIT Vs Balampur Chini Mills Pvt Ltd. (Calcutta High Court) -
High Court Calcutta held in CIT Vs Balampur Chini Mills Pvt Ltd that even if the assesse had voluntary disclosed its income by filing revised ROI though not detected by the revenue during scrutiny proceedings u/s 143(3), penalty u/s 272(1)(c) would be levied. ...
Read More
M/s. Janus Investment Pvt. Ltd. Vs ITO (ITAT Mumbai) -
If the AO had reopened the assessment and made a disallowance and these facts could affect the outcome of the issue, the AO should appear before the FAA to file an explanation about the chronology of events. But, in any manner the subsequent decision taken by the AO cannot be held to be a mistake apparent from the record....
Read More
ITO Vs M/s Staunch Marketing Pvt. Ltd. (ITAT Delhi) -
The issue in dispute raised in additional ground relating to non issue of the mandatory notice u/s. 143(2) of the Act is decided in favour of the assessee and we hold that the impugned assessment order dated 31.12.2009 passed u/s. 147/143(3) of the Act by the AO as invalid....
Read More
Instruction No.1/2015 -
(13/01/2015) -
Instruction No.1/2015 Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961- Vide Finance Act, 2012, section 143(1D) was introduced in income tax act which prohibited processing of income tax returns in case notice u/s 143(2) has been issued (i.e. scrutiny cases). Ambiguity arose as to whether the said sub-s...
Read More
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....
Read More
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....
Read More
CA. M. Lakshmanan As per notification F.No. 225/26/2006-ITA.II (Pt.) dated 8th September 2010 scope of enquiry in the scrutiny cases selected on the basis of information collected from AIR returns would be limited to the aspects of information received through AIR....
Read More
We have attached a file in excel format. The file contains the format of various details which normally assessing officer asks Assessee to furnish during Scrutiny Assessment U/s. 143(3) of the Income Tax Act, 1961. We have attached the format of following details :-...
Read More
The Commissioner Of Income Tax And Another Vs. Shri Jora Singh (Allahabad High Court) -
On a query put by the Court, learned counsel for the assessee accepts if the recourse to Section 143(3) would have been barred by time, there would have been no restriction to initiate the re-assessment proceeding under Section 147 of the Act. We may add that there is nothing on the plain language of Section 143 of the Act which may sugge...
Read More
Kiwanis Club of New Delhi Vs Director of Income Tax (Exemptions) (Delhi High Court) -
It is not disputed by the assessee that the return of income was filed beyond the time limit prescribed by section 139(1) and even section 139(4). Under sub-section (4) of section 139 the assessee ought to have filed the return on or before 31-3-2000. However, the return was filed only on 10-10-2000. Under general principles, a refund of ...
Read More
The existing provisions of section 153 and 153B, inter alia, provides the time limit for completion of assessment and reassessment of income by the Assessing Officer. Time limits have been provided for completion of assessment or reassessment under section 143(3), 147, 153A, 153C, etc. Further, these time limits get exten...
Read More
Vijay Corporation Vs. ITO (ITAT Mumbai) -
Vijay Corporation Vs. ITO (ITAT Mumbai) - Provisions of Sec. 143(3) of the Act contemplates that the AO shall pass an order of assessment in writing. The requirement of signature of the AO is therefore a legal requirement. The omission to sign the order of assessmenet cannot be explained by relying on the provisions of Sec.292B of the Act...
Read More
HV Transmissions Ltd. Vs. ITO (ITAT Mumbai) -
HV Transmissions Ltd. Vs. ITO (ITAT Mumbai) - Section 147 applies both to section 143(1) as well as section 143(3) and, therefore, except to the extent that a reassessment notice issued u/s 148 in a case where the original assessment was made u/s 143(1) cannot be challenged on the ground of a mere change of opinion, still it is open to an...
Read More
ITO Vs. The Ankleshwar Taluka ONGC (ITAT Ahmedabad) -
ITO, Bharuch Vs The Ankleshwar Taluka ONGC (ITAT Ahmedabad)- It is pertinent to note that in the assessment order, the AO disallowed the entire payment made to the farmers amounting to Rs.2,57,62,253/- by invoking the provisions of section 40(a)(i) of he IT Act. Apart from this, the AO disallowed Rs. 51,47,250/- under Section 40A(3) of th...
Read More
Convergys India Services Pvt Ltd Vs DCIT (ITAT Delhi) -
Convergys India Services Pvt Ltd Vs DCIT (ITAT Delhi) - In the present case, we note that gain is not on account of fluctuation in foreign exchange relating to assessee's export activities. The same is with respect to the external commercial borrowings. This cannot be termed as derived from the export activity of the assessee. The assesse...
Read More
Shiva Automobiles Vs ITO (ITAT Agra) -
Where the Assessing Officer has not carried out necessary enquiry which ought to have been carried out for allowing deduction to the assessee under section 40(b), the order passed by the Assessing Officer was erroneous and prejudicial to the interest of the Revenue and CIT has rightly invoked the provisions of section 263....
Read More
