Records 1 to 20 of 1209

Income Tax - Tribunal in fist round of appeal was of the view that the assessee was fully justified in raising the claim u/s 10A, for the first time, before the CIT (A), who ought to have entertained it and decided on merits – thereafter, CIT found that assessee’s claim is justified - Tribunal in second round hold that the revenue, having accepted the order of the Tribunal in the first round, cannot raise those objections in the second round - no infirmity in Tribunal’s order - No question of law arises

Income Tax - Whether any "gift" arose in terms of Section 2(xii) of the Gift-tax Act on the allotment of rights issue by the company to its shareholders - on question of evasion of tax, contention of Department is conflicting – Dept. has messed up entire case - Department has not kept in mind the difference between "allotment" & "renunciation" – Dept. has not invoked the provisions of Gift-tax Act against renouncer shareholder despite the observation of the CIT(A) in that regard - Assessee’s appeal allowed

Income Tax - Entitlement of benefit in terms of Section 32AB, Section 80HH and Section 80I - effect of conversion of Jumbo rolls of photographic films into small flats and rolls in the desired sizes - whether activity undertaken was manufacture or production – After analyzing the expressions ‘production’ and ‘manufacture’ from different sources honorable SC allowed the appeal of the assessee.

Income Tax - Penalty u/s 271(1)(c) is a civil liability - Wilful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution under Section 276C - Section 11AC of Central Excise Act and Rules 96ZQ and 96ZO have no scope for any discretion – Wilful concealment is not an essential ingredient for imposing penalty thereunder

Income Tax - Purchase of immovable property - appropriate authority failed to consider the merits and demerits of the case pointed out by the petitioners. In these circumstances, it is difficult to hold that the sale instances relied upon by the Appropriate Authority were comparable and consequently, it is difficult to hold that the flat in question sought to be purchased by the petitioners has been undervalued by 15% or more than the fair market value – order of pre-emptive purchase is invalid

Income Tax - Taxability of rental income from sub-lessee – assessee-trust lesee of property had sub-let the property - assessee trust at no point of time indulged in any systematic business activity, hence income is not taxable as “Income from Business”.– assessee is not a owner of property, so income is not assessable as “Income from House Property” - income is liable to be taxed as “Income from other Sources” and not as “Income from House Property” or “Income from Business”

Income Tax - Recovery of tax - Attachment and sale – dept. ordered that sale of properly was fraudulent - Held that in the absence of a declaration by a civil court the order declaring the sale deed, as null and void, was an order without jurisdiction and consequently had to be set aside - Consequently the order of attachment dated is quashed and set aside - As the sale is legal and valid, respondent no.1 was bound to issue the TDS certificate in favour of the petitioners from 30.7.2002 onwards

Income Tax - “Transfer” - Section 2(47) - tax on capital asset u/s 45(4) – dissolution of firm consisting of two partners – held that the transaction resulted in dissolution of the firm and partner or partners getting rights over the immovable property. Subsequent reconstitution of the firm does not affect the liability of the dissolved firm to be assessed for capital gains in terms of Section 45 (4) - hold that the transaction in both the cases is transfer within the meaning of Section 2(47)(vi)

Income Tax - Assessee was showing interest on sticky loans on accrual basis – interest not brought to P/L A/c but taken to Suspense A/c -as per circular dated 9/10/84, assessee can take benefit only in respect of interest payable on those loans where no recovery has taken place for 3 consecutive accounting years and it is only from the 4th year onwards that the interest accrued is not to be considered as income – AO should have decided matter in view of said circular- matter remanded for fresh assessment

Income Tax - Whether Tribunal was right in law in treating the return invalid on the ground that it had been signed by secretary, is not in accordance with the provisions of Section 140(c) - there cannot be any doubt that the Assessee had made an error which was in the nature of a defect as explained by the Kerala HC and that defect was removed by filing a fresh return signed by the Managing Director of the Assessee. The return would then relate back to the original filing date.

Income Tax - Reassessment - Notice under section 148 of the Act has been issued after a period of four years from the end of Assessment Year - absence of any evidence to show any failure or omission on the part of the assessee to disclose truly and fully all relevant particulars of income in the return of income - impugned Notice is hereby quashed and set aside

Income Tax - Assessee not appeared even after several opportunities – Commissioner held that assessee is not interested in prosecuting appeal on the ground that assessee not appeared in any of seventeen hearings nor gave any justifiable reason for adjournment of the case - Tribunal also found that non-recording of reasons in support of the order passed by the Commissioner of Income-tax (Appeals) would not amount to committing any illegality – assessee’s appeal is dismissed

Income Tax - Whether in the facts and circumstances of the case, the Tribunal was right in holding that surcharge is not applicable to block assessments if the search took place prior to introduction of the proviso to Section 113 with effect from 1.6.2002 - Held that even prior to 1.6.2002 the Department is entitled to levy surcharge as the proviso introduced on that is only curative in nature

Income Tax - ITAT uphold the order of the CIT (A) and deleted the addition made by the Assessing Officer, on account of unexplained loans - ITAT has affirmed the order of CIT (A) while observing that the creditors were produced and their statements were recorded and in their statements, the creditors have confirmed having advanced loan to the assessee - held that in view of this material, the Assessing Officer was not justified in making addition – no substantial question of law arise

Income Tax - Clause (c) of Explanation 1 to section 147 provides that an Assessing Officer can resort to reassessment proceedings in a case where income has been made the subject of excessive relief under the Act. The assessee at the regular assessment had been allowed a deduction more than actually allowable u/s 80HHC - Accordingly, reassessment under section 147(b) cannot be held to be invalid

Income Tax - Tribunal was justified in holding that the interest income of Rs.95,97,864/-recovered from delayed payments from the Sundry Debtors to whom the industrial unit of the assessee had sold the goods could be treated as interest income derived from the industrial undertaking of the assessee in light of the provisions of section 80HH - even though the assessee has realised income from other sources, Assessing Officer is directed to recompute the deduction under sec.80HH.

Income Tax - Share/stock broker - maintaining separate books of account for the trading in shares as well as investments in shares - assessee is carrying on the business only in the name and style of "Brilliant and Company" - payments in shares have been done by the assessee in his personal account -it was found that assessee has been holding shares for a long time and has been utilising the surplus funds only for the investments – held that profit earned on sale of surplus shares will attract capital gains

Income Tax - Additions made by the AO on account of the disallowance of commission & service charges paid by the assessee to one M/s CIL, in which the assessee was a director – revenue contend that tribunal is not justified in relying on the assessee’s own case of A.Y. 1996-97 & giving decision in favour of assessee, because in the year under consideration, increase in sale was less than 15% when compared to the immediately preceding year – revenue’s plea is rejected & order of tribunal is sustained

Income Tax - Whether the expenses claimed towards payment of commission, as well as, service charges to CIL was reasonable having regard to the provisions of Section 40A - impugned issue is a pure question of fact – SC also in its various decisions have held that whether or not an expenditure is unreasonable and hence, merits disallowance u/s 40A, is essentially a question of fact – no perversity in the findings of tribunal deciding the issue in favour of assessee - no substantial question of law

Income Tax - Addition made by AO by disallowing the claim of depreciation on machinery items – supplier of machinery items has neither denied receipt of payments from the assessee company, nor stated that the said money was returned to the assessee company in cash - Assessing Officer by solely relying upon the information received from the bankers of the suppliers - genuineness of the purchase cannot be questioned – additions were rightly deleted by Tribunal