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Lawyersclubindia Judiciary

Appeal filed in the violation of the instruction issued by the IT is liable to be dismissed

 04 January 2012

This appeal filed on 12.5.2011 by the Revenue against an order dated 27.1.2011 of the ld. CIT (Appeals)-I, New Delhi, raises grounds relating to addition of i)` 4,66,935/- on account of unexplained bank credit.;ii) ` 4,55,000/- on account of unexplai..

Posted in Taxation |   823 hits

Borrowed fund can not be given as interest free loan to other and on disallowance of exp AO must be mention some reason for such

 03 January 2012

(i) That the sustaining of disallowance of interest Rs. 1,61,226/- by Ld. Commissioner of Income Tax (Appeals) on the ground that assessee has made interest free advance of borrowed funds in arbitrary, unjust, unwarranted and at any rate very excessi..

Posted in Taxation |   1320 hits

Merely passage of time cannot treat unsecured loan no longer payable and it can not invoked sec 41(1)

 03 January 2012

“(i) On the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals) has erred in law in deleting the addition of Rs. 13,80,000/- made by the Assessing Officer on account of unsecured loans by accepting unsecured loan ..

Posted in Taxation |   1452 hits

In a case of lessor and lessee the suit can be continued by the person on whom the earlier plaintiffs interest developed

 03 January 2012

.The record shows that the present suit has been filed by the plaintiff M/s DLF Universal Ltd. against five defendants i.e. Delhi Wakf Board who had been arrayed as defendant no.1 and defendants no.2 to 5 who are private parties. This is a suit for p..

Posted in Civil Law |   1373 hits

As per sec 142 No Court take cognizance of offence punishable under sec 138 in the absence of application within the limitation period or with sufficient cause after limitation period

 02 January 2012

This is a petition under Section 482 CrPC assailing the order dated 11.11.2009 of the learned M.M., Dwarka Courts whereby the application under Section 142 of the Negotiable Instruments Act (for short, the „Act‟) filed on behalf of the complainant/re..

Posted in Criminal Law |   4348 hits

At the time of falling market price a person can take the benefit and can adjust his Loss and sec 42 of SEBI Regulation 1996 is only applicable on broker operating in the stock exchange

 02 January 2012

Above issue arises as Assessing Officer considered the sale of shares by the assessee to the firm in which he is a Partner as a non genuine transaction. Consequently he re-worked out the P&L account as stated in page 8 of the assessment order and det..

Posted in Taxation |   771 hits

As per the RBI Guidelines public sector financial institutions are under obligation to fairly consider OTS proposal keeping in mind the RBI guidelines

 02 January 2012

It was urged by the learned counsel for the appellant that the inappropriate manner in which prayers were claimed in the writ petition should not have coloured the view taken by the Single Judge. At the core of the challenge in the writ petition was ..

Posted in Civil Law |   2399 hits

Order Passed under sec 143(3) is not valid in the absence of service of notice under sec 143(2) and AO must give proper findings on the order

 02 January 2012

Ld. CIT (Appeal) is not justified in law and facts and circumstances of the case in holding the order passed under section 143(3) as valid without proving the valid service of notice under section 143(2) with in the limitation period of 12 months as ..

Posted in Taxation |   1605 hits

Depreciation claimed for computer software etc is allowed only if used for more than 180 days

 31 December 2011

The Commissioner issued notice under Section 263 of the Act on two grounds: firstly, the respondent had earned dividend income of Rs.28,20,145/- which was exempt from tax but no disallowance of expenditure under Section 14A of the Act was made. Secon..

Posted in Taxation |   1731 hits

AO can make addition if the cash credit is fully explained

 31 December 2011

This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 28.10.2009 pertaining to assessment year 2005-06. The grounds raised read as under:- “(i) In the facts and the circumstances of the ..

Posted in Taxation |   1041 hits

Expenditure incurred as a measure of value addition is to be treated as revenue expenditure

 30 December 2011

The assessee is converting scrap iron into MS steel. In the previous year relevant to the impugned assessment year, the assessee proceeded further to improve the value addition by converting MS steel again into TMT steel. In that process, the assesse..

Posted in Taxation |   1383 hits

The appeal emanates from revisional order under sec 263 which struck down by the Tribunal will not survive

 30 December 2011

At the time of hearing, it was brought to our notice that this appeal emanates from a revisional order passed u/s 263 of the Act and because the revisionary proceeding itself has been struck down by the Tribunal vide its order dated 17.12.009, this a..

Posted in Taxation |   1118 hits

When contractor supply any goods as per specification given and delivered to the Govt. than it will be outside the purview of sec 194 C

 30 December 2011

Brief facts of this issue are that while doing the scrutiny assessment, the Assessing Officer has disallowed the disallowance by observing as under:- “On examination of the books of accounts it is observed that no tax on such payment/credit has be..

Posted in Taxation |   1230 hits

For Assessment under section 143(3) details of creditors is must to show

 30 December 2011

The assessment in this case was completed under section 143(3). Later, on verification of the records of the case, the Commissioner of Income Tax found that that the assessing authority has not examined the genuineness of certain trade creditors whic..

Posted in Taxation |   1465 hits

Regarding Sec 80G sec 5 clause (vi) was omitted by the Finance Act 2009 w e f 1st Oct 2009 for renewal application

 29 December 2011

We have heard the rival contentions and gone through the facts and circumstances of the case. The brief facts are that the assessee is a charitable Institution registered under section 12AA of the Act by DIT(Exemption), Kolkata vide order dated 30.06..

Posted in Taxation |   3152 hits

Once approval granted under sec 80G will be valid up to five years and application for extension is not necessary

 29 December 2011

In the grounds of appeal, the assessee has taken one legal plea that while rejecting the assessee’s application for renewal of exemption u/s 80G filed on 24.12.2011, the learned DIT(E) has ignored the amendment made in Section 80G(5)(vi) by the Finan..

Posted in Taxation |   1521 hits

Refund of excise duty is directly related to the manufacturing activity and commission paid to related party on sale is allowed up to 2 and half percent

 29 December 2011

Facts of the case in brief are that the A.O. noted that the assessee has received Sales Tax incentive of Rs. 12,94,109/- in respect of Unit I and Sales Tax incentive of Rs. 84687/- in respect of Unit II on which deduction u/s 80IB has been claimed. A..

Posted in Taxation |   1097 hits

Revised Computation filed at the time of assessment is enough to consider income and expenses again

 29 December 2011

The grounds of appeal raised by assessee read as under :- “1. For that the order of assessment as well as order of appeal is bad in law and should quashed. 2. For that the written submission filed in appeal was not considered. 3. For that the re..

Posted in Taxation 1 comments |   1279 hits

As per the natural justice AO must be given opportunity to rebut the claim in pursuance of fresh evidence produced before him

 28 December 2011

That, on the facts and circumstances of the case, the Ld. C.I.T.(A) has erred in law in accepting fresh evidences filed by the assessee without calling for remand report from the AO, which is in contravention of the provision of Rule 46.” Same common..

Posted in Taxation |   751 hits

Order passed under Sec 144 is void ab initio in the absence of service of notice as mention under sec 282 and penalty will not survive if the case restored in the AO file

 28 December 2011

ITA No. 3871/Mum/2008 filed by the assessee is directed against the order dated 8.2.2008 of the Commissioner of Income Tax (A)- XXII, Mumbai relating to Assessment Year 2004-05. ITA No. 87/Mum/2010 filed by the assessee is directed against the order ..

Posted in Taxation |   2530 hits