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Taxation Judgments and Orders

The Court is not bound to answer in the negligence of appellant

 24 November 2012

This case was listed for hearing before the Tribunal on 15-10-2012 and for this assessee was informed. Today i.e. on 15-10-2012 when the case was called on board, none appeared on behalf of the assessee nor any request for adjournment has been filed ..

Posted in Taxation |   1346 hits

Amendment in section 194H by insertion of provision 3 is not applicable retrospectively

 23 November 2012

The present case is identical and similar to the issue decided by COD’s and the amendment made through the Finance Act, 2007 wherein it has been provided that tax shall not be deducted on payments of commission or brokerage payable by Bharat Sanchar ..

Posted in Taxation |   1586 hits

It is enough to proved the source of investment

 23 November 2012

The facts as per the relevant orders are that a search was conducted on the assessee on 15.01.2009, together with searches in the Gopal Zarda group of cases. The assessee individual is a partner in certain firms and has, during the year, derived inco..

Posted in Taxation |   1314 hits

Depreciation of asset of the institution under section 12A to be deducted to arrive at income available for charitable purposes

 22 November 2012

On the facts and in the circumstances of the case, the Ld. CIT(A) erred in allowing depreciation on certain fixed assets, particularly when full cost of such assets stood allowed in earlier years as application of income and further allowance by way ..

Posted in Taxation |   2313 hits

Liability appearing in BS not attract section 41(1) and expenses on business promotion without supporting is disallowed subject to limit

 22 November 2012

The Learned CIT(A) has erred in law, on facts and circumstances of the case in assuming jurisdiction for giving direction for disallowing expenditure in the year which was not before him such directions are beyond the scope of statutory powers of CIT..

Posted in Taxation |   1399 hits

In the interests of justice issue can restore back to the file of the learned CIT(A) with appropriate direction

 21 November 2012

This is an appeal filed by the assessee against the order dated 3.08.2010 of the Commissioner of Income-tax (Appeals)-XIX, New Delhi pertainng to the Assessment Year 2003-04 on various grounds. However, at the time of hearing the assessee filed an a..

Posted in Taxation |   1270 hits

Order not supported by reasoning deserve to be set aside

 21 November 2012

The relevant facts borne out from the assessment order are that as against the returned income of Rs.89,130/- the income was assessed at Rs.6,18,135/- wherein the Assessing Officer made additions on account of undisclosed capital gain; unexplained ag..

Posted in Taxation |   1723 hits

Willful concealment is not an essential ingredient for attracting civil liability and prosecution under section 276C

 16 November 2012

After analysing the facts of this case, considering the submissions made by the learned Advocates for the parties and the materials placed before us, we cannot brush aside the fact that the assessee ompany is a well known and reputed Chartered Accoun..

Posted in Taxation |   1523 hits

Validity of order passed by majority as per section 255(4) of IT

 16 November 2012

The assessee company is engaged in the business of operation and management of hotels owned by third parties. The assessee has taken over the management of the hotel property, viz. Tulip Star Mumbai, situated at Juhu Tara Road, Juhu, Mumbai. The asse..

Posted in Taxation |   1298 hits

Is transfer constituted application of income under Section 11(1)(a) of 1961 Act subject to condition

 15 November 2012

Whether amounts transferred by the assessee to Mandi Parishad would constitute application of income for charitable purposes within the meaning of Section 11(1)(a) of the Income Tax Act, 1961?”..

Posted in Taxation |   1257 hits

Transaction between the assessee and the director cannot be covered by section 269T

 15 November 2012

Briefly stated the facts of the case giving rise to this appeal are that the assessee filed a return declaring loss of Rs.3,95,706/- and his assessment was finalized u/s 143(3) of the Act at an income of Rs.3,84,698. During the assessment, the AO obs..

Posted in Taxation |   1922 hits

Penalty cannot be imposed under section 271 on debatable issue

 12 November 2012

The relevant facts of the case giving rise to these appeals are as follows. The assessee is a private limited company which filed its return of income for A.Y. 1981-82, 82-83 and 83-84 on 30.6.1981, 30.6.1982 and 10.8.1983 respectively. On the basis ..

Posted in Taxation |   2167 hits

Section 32 applied only on capital expenditure not on revenue for any reason

 12 November 2012

That the Ld. Commissioner of Income Tax (A) erred on facts and in law in confirming the disallowance of ` 30,07,454/- made by the Assessing Officer in respect of expenditure on repairs and maintenance of building incurred by the appellant, holding th..

Posted in Taxation |   1916 hits

Stock converted to investment to evade tax cannot be considered as valid conversion

 10 November 2012

The brief facts of the case are that the assessee is a private limited company and it has filed return of income on 31.10.2005. The case of the assessee was selected for scrutiny. During assessment proceedings, the Assessing Officer found that assess..

Posted in Taxation |   1409 hits

Appeal disposed on merit without speaking order cannot be sustained

 10 November 2012

We find that CIT(A) has passed a non-speaking order by following the decision of ITAT in the case of Multiplan India (Pvt.) Ltd. (supra). We are of the view that where appeal has been disposed of even though on merits without a speaking order, the or..

Posted in Taxation |   1856 hits

Assessee is allowed to withdraw before any decision made

 09 November 2012

At the time of hearing, ld A.R. submitted that assessee be allowed to withdraw his appeal. Learned D.R submitted that he has no objection to accept the prayer of ld A.R. In view of submissions of ld representatives of parties, we accept assessee’s pr..

Posted in Taxation |   1200 hits

Without supporting indexation benefit cannot be denied by AO

 09 November 2012

On the facts and in the circumstances of the case and in law, the ld CIT(A) erred in deleting the addition made on account of rejection of indexed cost without appreciating the facts that the assessee has not produced any evidence for acquisition cos..

Posted in Taxation |   1245 hits

Payment received through banking channels is enough to find out the source and reason

 08 November 2012

In this case return of income declaring total income of ` 108107/- was filed on 31.10.1993 after claiming deduction of ` 3,08,43,785/- u/s. 80HHC of the Act. Original assessment in this case was completed u/s. 143(3) on 29.3.1996. At the time of orig..

Posted in Taxation |   1370 hits

Adjustment in the arm’s length price on international transaction to avail intra-group services of associated enterprises

 08 November 2012

the Assessing Officer (‘A.O.’)/Dispute Resolution Panel (‘DRP’) has erred in making an addition of Rs.34,780,481/- to the total income of the Appellant on account of adjustment in the arm’s length price of the international transaction pertaining to ..

Posted in Taxation |   1462 hits

Lack of effort from AO to verify creditors is not the part of fault of Assessee

 07 November 2012

The AO called the assessee to explain why the above claim of unsecured loan from the above three persons shall be treated as unexplained cash credit u/s 68 of the Act. In response to show cause notice, the assessee submitted details of cheque nos. by..

Posted in Taxation |   1452 hits