Home Case Index All Cases Income TaxIncome Tax Section Wise 2012 2012 2012 (11) Income Tax - 2012 (11) This

Law	-- All -- GST Income Tax Benami Property Customs Corporate Laws Securities / SEBI Insolvency & Bankruptcy FEMA PMLA Service Tax Central Excise CST, VAT & Sales Tax Wealth tax Indian Laws
Court	-- Any -- Supreme Court SC Orders / Highlights High Court Appellate Tribunal Tribunal Appellate authority for Advance Ruling Advance Ruling Authority National Financial Reporting Authority Competition Commission of India ANTI-PROFITEERING AUTHORITY Commission Central Government Board DISTRICT/ SESSIONS Court Commissioner / Appellate Authority Other
Citation	--Year-- 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 Upto 1949 - -Volume- 1 2 3 4 5 6 7 8 9 10 11 12 -
Landmark	Nil - N/A Referred in >= 3 Cases Referred in >= 4 Cases Referred in >= 5 Cases Referred in >= 10 Cases Referred in >= 15 Cases Referred in >= 25 Cases Referred in >= 50 Cases Referred in >= 100 Cases
Order by	TMI Citation Date of Decision

Advanced Search Options

Income Tax - Case Laws

Showing 361 to 380 of 695 Records

• 2012 (11) TMI 627 - ITAT CHANDIGARH
  

  Unexplained Cash Credits - Whether CIT(A)erred in deleting the addition of Rs. 15,00,000/- made on account of unexplained cash introduced, when the assessee as well as creditor failed to prove creditworthiness of the creditor - Held that:- Assesse explained the source before the Assessing Officer and if the Assessing Officer was not satisfied with the explanation regarding sources in the hands of the buyer then action could have been taken against such buyer and the assessee cannot be saddled with the burden to prove the sources in the hands of the purchaser of the property.

  The theory of casting of burden to prove the sources of source may not be applicable in case of cash creditor where it can be shown that creditor has deposited the cash in his bank account and given loan to a particular person because it can be argued that such person may have given the cash but this theory cannot be applied in case of sale purchase transaction of the property because no person would give the money to other person to show the same as being received back as advance particularly after the execution of agreement to sell.

  The Assessing Officer is directed to pass on the information to the concerned Assessing Officer for taking appropriate action in the case of Shri Bakhtawar Singh(purchaser) to examine the source of investment of Rs. 15.00 lakhs which is in dispute - CIT(A) has very correctly decided the issue after taking all precautions and nothing wrong with the order of the ld. CIT(A) and the same is confirmed - In the result, appeal filed by the revenue is dismissed.

  ---

• 2012 (11) TMI 626 - ITAT CHANDIGARH
  

  Employees contribution to PF and ESI - Disllowance as the payment made beyond due date - Held that:- As decided in CIT Vs. M/s Nuchem Ltd. [2010 (2) TMI 959 - PUNJAB AND HARYANA HIGH COURT] that where the employees' share of contribution to ESI or PF is made before the due date of filing the return of income, no disallowance is warranted. As in the present case assessee had deposited the said amount of employees share of PF and ESI admittedly before the due date of filing the return of income & only in respect of the month of June, 2005, the said amount was paid on 21.7.2005 one day later than the grace period but before the due date of filing the return of income. Thus the total amount is allowable as an expenditure in the hands of the assessee - against revenue.

  Deduction under section 80IC on the profits of Baddi unit - whether any part of the head office expenditure was attributable to the Baddi unit for determining eligible profits ? - Held that:- Except selling & distribution all are the expenses attributable to different units being run by the assessee and no part of the said expenditure could be held to be attributable to the Baddi unit, even to the extent of its turnover to the total turnover. The direct expenses of other units, in no manner can be attributed to Baddi unit. Similarly the selling and distribution expenses are not to be considered as Baddi unit is computing its income by reflecting sales of its manufactured items at predetermined price and transferring part of its margin of profits to the head office and retail units, which at the end of year had declared profits, which are assessable in the hands of assessee itself. In case these margin of profits are excluded from head office and included in the hands of Baddi unit, the resultant figure after debiting even the allocated expenditure on selling and distribution, would be eligible for the benefits of deduction u/s 80IC - direct the AO to recompute the disallowance u/s 80IC by excluding 2.54% of the total expenditure of Directors' salary, Directors' traveling & conveyance expenses, legal & professional expenses and Auditors remuneration being attributable to Baddi unit - partly in favour of assessee.

  Disallowance & capitalizing interest - Held that:- The said land was claimed to be business asset of the assessee and was declared in the schedule of fixed asset at Sr.No.1. The total investment in the land reflected by the assessee was at ₹ 2.12 crores. In addition , during the year under consideration the reserve surplus of assessee company had increased from ₹ 4.81 crores to ₹ 8. 39 crores implying there by generation of funds by the assessee company itself out of its business activities. As AO has failed to refer to any borrowed funds utilized for the purposes of investment in the said fixed asset no disallowance warranted - in favour of assessee.

  Freight in and freight out payment - non deduction of TDS - Held that:- As decided in Merilyn Shipping & Transports Versus ACIT, Range-1, Visakhapatnam [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] that where the amount payable to the payee has been paid during the year under consideration itself and no amount is payable at the close of the year, no disallowance is warranted under section 40(a)(ia) of the Act for non- deduction of tax at source. As in present case the total amount on account of freight has been paid during the year itself and nothing is payable at the close of the year; consequently no disallowance is warranted - in favour of assessee.

  Interest free loans and advance given to related party - Held that:- Though the plea of the assessee before the authorities below was that the advances made to the said parties were not loan accounts and the assessee was having purchase/sale transactions with these concerns during the year under consideration, the CIT (Appeals) had allowed the claim of the assessee both on account of availability of funds with the assessee and also the non-consideration of the entries debited to the account of M/s Shivam Industries. Thus the issue raised by the assessee needs to be relooked by the AO by considering the plea of the assessee and in view of the ratio laid down by the Hon'ble Supreme Court in S.A. Builders Vs. CIT (2006 (12) TMI 82 - SUPREME COURT) that in case the advances between the assessee company and two concerns were on account of business transactions, no disallowance was warranted under section 36(1)(iii) - remit the issue back to the file of the AO for reconsideration - in favour of revenue by way of remand.

  Expenditure incurred for increase in Authorised Capital of the Company - Revenue v/s Capital - Held that:- As decided in Brook Bond India Ltd. Vs. CIT [1997 (2) TMI 11 - SUPREME COURT] though the increase in the capital results in expansion of the capital base of the company and incidentally that would help in the business of the company and may also help in the profit-making, the expenses incurred in that connection still retain the character of a capital expenditure - against assessee.

  Disallowance under section 14A r.w.r. 8D - Held that:- As held in Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT (2010 (8) TMI 77 - BOMBAY HIGH COURT) that the provisions of Rule 8D will be held to be prospective applicable from assessment year 2008- 09 onwards no merit in the orders of the authorities in applying the provisions of Rule 8D for computing the disallowance under section 14A of the Act in the hands of the assessee relating to assessment year 2007- 08 - no merit in invoking the provisions of section 14A of the Act in assessment year 2008 - 09 where the income from the said investment in SBI Mutual Funds has been offered to tax. no merit in invoking the provisions of section 14A of the Act in assessment year 2008 - 09 where the income from the said investment in SBI Mutual Funds has been offered to tax. - in favour of assessee.

  Construction of building on lease hold land - Disallowance of expenditure - Held that:- We are in conformity with the orders of the authorities below that the said expenditure incurred by the assessee is capital expenditure and the assessee is entitled to the claim of depreciation on the said assets. Reliance placed by the assessee on the ratio laid down in CIT Vs. Hi Line Pens (P) Ltd. [2008 (9) TMI 25 - HIGH COURT DELHI] is misplaced as there Court had allowed the claim of the assessee on account of expenditure on repairs and renovation of rented premises, whereas in the present facts of the case before us, the assessee had incurred the said expenditure on the construction of the building itself from which it had carried on its business in the later period - against assessee.

  Expenditure on Air Conditioners and coolers and mobile phones - disallowance - Held that:- The above said expenditure incurred by the assessee is purely capital expenditure and is not to be allowed as revenue expenditure, though the assessee is entitled to the claim of depreciation on the said asset - against assessee.

  Expenditure on modification of premises - Held that:- As the assessee failed to produce bills in respect of the said expenditure no merit in the claim of the assessee - against assessee.

  Addition invoking provisions section 36(1)(iii) - Held that:- The issue has not been considered by the authorities below in proper perspective and the addition has been made merely because the loan had been raised by the assessee company. The finding of the AO in this regard that the amount has been invested in the land account, does not come out from the documents filed by assessee. In the interest of justice the issue is to be restored back to the file of the AO to decide the same de - novo - in favour of assessee for statistical purposes.

  ---

• 2012 (11) TMI 625 - ITAT CHANDIGARH
  

  Addition on account of labour charge – Labour charges on gold jewellery – Assessee shown labour charges @ 5.73% of the gold sale, whereas in earlier year it was 10.9% - Held that:- As no evidence was produced to show about selling readymade jewellery. It is common knowledge that whenever jewellery item is bought from a jeweler, separate making charges are charged. At the same time it is not necessary that in every year the labour charges proportion would remain same. Restrict the addition on account of labour charges to Rs.1.00 lakh. Partly allowed in favour of assessee

  Addition on account of revaluation of closing stock of gold - Sum of Rs. 3,80,000/- has been taken in account by adopting the same as purchase of gold but the same has not been added to the closing stock and accordingly a sum of Rs. 3,80,000/- was added to the income of the assessee – Held that:- As concluding from the facts that the assessee has already reflected undisclosed sales. The gross profit comes to Rs. 11,41,316/- but the same was done as Rs. 15,21,316/ - in P&L account. This amount has been reflected in books. In favour of assessee

  Valuation of closing stock – FIFO or weighted average method – Held that:- Since the AO has adopted FIFO method whereas the claim before the ld. CIT(A) was that stock has been valued at average rate when it is not clear whether weighted average was taken or not and therefore, we set aside the order of ld. CIT(A) and remit the matter back to the file of AO with a direction to value the closing stock on weighted average after verification of the same. Remand back to AO

  Disallowance u/s 40A(3) – Expense incurred in cash more than Rs. 20,000/- - AO argued that out of surrendered income of Rs. 4.00 lakhs, a sum of Rs. 3,80,000/- was shown as gold purchase out of books and Rs.20,000/ - as silver purchased out of books - AO was of the view that this amount must have been spent in cash exceeding Rs . 20,000 - Held that:- The assessee had surrendered a sum of Rs. 3,80,000/ - which was shown as purchases of gold outside the books and this amount was shown as purchases because of the surrender. There is no evidence before the Revenue that this amount was spent in payment of cash exceeding Rs. 20,000/-. Therefore, there is no justification in the addition. In favour of assessee

  ---

• 2012 (11) TMI 624 - ITAT LUCKNOW
  

  Addition u/s 69C - Unexplained Expenditure – Assessing Officer held that the assessee-firm has made payment of Rs.2,07,25,297 (30% of Rs.6,90,84,323) to the retiring partner out of undisclosed sources in order to avail the benefit of assets left by the retiring partner for the business purpose of the assessee-firm. The Assessing Officer applied the provisions of section 69C of the Act and made addition of Rs.2,07,25,297. - held tha:- what is postulated in section 69C of the Act is that first of all the assessee must have incurred that expenditure and thereafter, if the explanation offered by the sssessee about the source of such expenditure is not found satisfactory by the Assessing Officer, the amount may be added to his income. [CIT v. Lubtech India Ltd, 2007 (7) TMI 281 - DELHI HIGH COURT]

  The showroom was owned by the retiring partner and the assessee-firm continued to pay rent to the retiring partner at the same rate. The firm was not taken over by any of the agency. Therefore, there cannot be question of estimating the value of the goodwill.

  In the Present case even if it is assumed that some benefit is accrued on the retirement of the third partner, the benefit may be accrued to the surviving partners and not to the assessee-firm. In case of that, if any addition is required to be made the same can be made in the hands of the individual partners and not to the assessee-firm. There is no evidence on record that any amount over and above the amount declared in the capital account has ever been paid to the retiring partner either by the assessee-firm or by the remaining partners. In the absence of any evidence, it cannot be assumed or presumed that a substantial amount of Rs.2,07,25,297 has been paid to the retiring partner by the assessee-firm - no merit in the addition made by the Assessing Officer - Order of the CIT(A) is confirmed - In the result, appeal of the Revenue is dismissed.

  ---

• 2012 (11) TMI 623 - ITAT AGRA
  

  Set off & Carry forward business loss - change in share holding - inclusion of share application money for determination of percentage of share holding - Held that:- Share holding of the Company has changed by more than 51% and management and control of the company has been passed on to Pippal family. There is unabsorbed losses of Rs.29,94,643/- of A.Y. 2004-2005. CIT(A) rejected the assessee's contention that 72.8% of total paid share capital was introduced by family of Shri Hari Kishan Pippal during the F.Y. 2004-05 and not during the year under consideration has no merit in its case because that was simply share application money and no shares were allotted during that year. The shares have been admittedly allotted during the year under consideration for the reasons whatever it may be. Therefore, after considering the totality of the facts of the case in the light of section 79, the A.O. has rightly disallowed the claim of set off of brought forward losses and the CIT(A) has rightly confirmed the order of the A.O - Order of the CIT(A) is confirmed - In the result, appeal of the assessee is dismissed.

  ---

• 2012 (11) TMI 622 - ITAT COCHIN
  

  Benefit of Deduction u/s 80 IB – Whether casual,contract labour and electrician be considered as Employee of Co. - held that:- the casual and contract employees including electrician has to be taken into account for the purpose of calculating number of employees. Once the contract and casual employees are taken into account, the number of employees would be more than 10, therefore, the assessee is eligible for deduction u/s 80IB of the Act. - Decided in favor of assessee.

  Burning Loss – Held that:- Theoretical research made by the universities may be to some extent nearer to the actual burning loss suffered by the companies but there cannot be any standard formula to fix the burning loss. - the burning loss would depend upon the nature of the raw material and the process adopted for conversion of scrap into iron ingots. - There may be various factors which would reduce the burning loss or increase the burning loss. Unless specific materials are available with the assessing officer to say that the burning loss claimed by the assessee is highly excessive or there was no loss at all - the disallowance made by the assessing officer cannot be sustained. - Decided in favor of assessee.

  ---

• 2012 (11) TMI 621 - ITAT COCHIN
  

  Addition of 10% of the unsecured loan as interest income. - assessee company advanced unsecured loan to another government company, viz. Trivandrum Rubber Works Ltd with an intention to take over the company. - Following the judgement of Tribunal in assessee’s own case for assessment year 2004-05 and for the reasons stated therein addition 10% of the unsecured loan as interest income on account of interest on advance to Trivandrum Rubber Works Ltd is not justified – Order of lower authorities are set aide and the addition is deleted – Decided in favor of assessee.

  Disallowance of claim of loss on revaluation of spares as expenditure - Held that:- The loss or gain, if any, in the revaluation would be notional in nature, therefore, the assessee may not have any funds for replacement of asset physically. Loss, if any, in the revaluation of the loose tools and implements would be capital in nature, therefore, the same cannot be allowed while computing the income as revenue expenditure- there is no infirmity in the order of the lower authority , the same is confirmed – Decided against the assessee.

  Income from Agriculture operations - producing rubber products - Whether Sale value of scrap can be excluded from the turnover while computing income under Rule 7A of the I.T. Rules, 1962 - Held that:- Order of the Tribunal is set aside and the issue is remitted back to the file of the assessing officer to verify whether the income from scrap is obtained in the course of agricultural operation, i.e. in the occurs of taking yield or whether it is natural scrap generated in producing rubber products covered by Rule 7A of the I.T. Rules and to assess the income from scrap accordingly - Assessing officer shall thereafter reframe the assessment order in accordance with law after giving reasonable opportunity of hearing to the assessee – appeal allowed for statistical purposes.

  ---

• 2012 (11) TMI 620 - ITAT PUNE
  

  Deduction u/s 80IB(10) – Whether area of land as per provision u/s 80IB(10) is to be considered on gross or net basis - AO disallowed deduction on ground that the net area of the plot is less than 1 acre for the housing project was not fulfilled - Substantial portion of the plot is reserved for D.P. Roads, hospital building and open space – Held that:- The law is well settled on this issue that so far as opening space and the area of the D.P. Road is concerned, the same cannot be excluded from the total area of the plot. Even the language of Clause (b) does not even remotely suggest that only the net area of the plot is to be considered. So far as the reservation of the hospital is concerned, the same is to be treated as a separate project and the area occupied by the said project has to be reduced from the gross area. Therefore after considering this area covered is more than 1 acre. Issue in favour of assessee

  Taxability of the profit from housing project u/s 80IB(10) - Assessee has completed the housing project in the A.Y. 2006-07 only, but declared the profit in the A.Y. 2007-08 – Held that:- Since the Completion Certificate has been issued to the assessee in the F.Y. 2006-07 relevant to the A.Y. 2007-08. The assessee is consistently following a particular method of accounting recognizing the profit which has not been rejected in past. We further find that the A.O has not rejected the method of accounting followed by the assessee in the A.Y. 2006-07. We, therefore, hold that there is no justification to bring to tax the part of profit from the housing project declared by the assessee in the A.Y. 2007-08. Accordingly, delete the addition. Issue decides in favour of assessee

  Disallowance u/s 40(a)(ia) for non-deduction of tax at source - Assessee contended that the payments were not made to contractor but to the various workers/labourers - A.O argued that the payments were made to the contractors, not the labourers/workers – Held that:- As concluded from the facts that the persons to whom the payments are made are the labour contractors and assessee was bound to deduct the tax at source from the payments made to the labour contractors as provided u/s. 194C. Following the decision in case of Merilyn Shipping and Transport (2012 (4) TMI 290 - ITAT VISAKHAPATNAM) that disallowance can be restricted to the extent the payments outstanding as on the 31st March of the respective FY. Issue need to be decides on the basis of said judgment, remand back to AO.

  Depreciation in respect of civil work in windmill – Whether road constructed for movement of the crane and electrical yard fencing are eligible for rate of depreciation at rate of along with windmill 80% or building 10% separately - Assessee has claimed depreciation at the rate of 80% on the Windmills - Civil work consisting of construction of one Windmill foundation and transformer plinth, electrical yard fencing, road for movement of crane and preparation of crane platform - A.O argued that only 10% depreciation can be allowed on electrical yard fencing road for movement of crane and preparation of crane platform – Held that:- Following the decision in case of Parry Engineering and Electronics P. Ltd. (2012 (10) TMI 224 - ITAT, AHMEDABAD) that foundation, civil and electrical work are necessary for the installation of the Windmill and is clearly part and parcel of the Windmill project on which depreciation at the rate of 80% is allowable. In our opinion, road constructed for movement of the crane cannot be said to be the part of the windmill but the electrical yard fencing is a part of the windmill. Issue partly allowed in favour of assessee

  Taxability on substantive basis – Held that:- We have deleted the addition made by the A.O in the A.Y. 2006-07 in respect of the part of the profit from the Housing project. In the A.Y. 2007-08, the assessee offered the entire profit from the housing project but while completing assessment, the A.O. sustained the addition on the protective basis to the extent of profit brought to tax in the A.Y. 2006-07. As we have deleted the addition made by the A.O in respect of the part of the profit assessed in the A.Y. 2006-07, the same has to be taxed on the substantive basis in A.Y. 2007-08. Issue is favour of revenue

  ---

• 2012 (11) TMI 619 - ITAT PUNE
  

  Revenue or capital expenditure – software development expenditure – Assessee had treated the expenditure as a deferred revenue expenditure in the books of account – And claimed it as a revenue expenditure in the computation of income - Held that:- As the expenditure on development of new product in the line of business being carried out by the assessee is an expenditure related to such business and benefit to the assessee is in the revenue field, inasmuch as it seeks to improve the profitability of the assessee and the enduring benefit cannot be regarded to be in the capital field. The entries in the books of account cannot be demonstrative of the true nature of a transaction. The true nature of a transaction is to be assessed not on the basis of the entries in the books of account alone, but having regard to the realities of the transaction. - Therefore, the expenditure incurred on development of various software packages, for being sold in the assessee’s business of software development and selling, is to be regarded as in the nature of revenue expenditure. - Decision in Empire Jute Co Ltd (1980 (5) TMI 1 - SUPREME COURT) followed - Decided in favour of assessee

  Carry forward of loss/ depreciation u/s 10A – Whether carry forward of loss/ depreciation can be set off against other normal business income - Assessee was eligible to claim benefit of Sec. 10A – AO argued that Sec 10A was contained in Chapter III which dealt with “incomes which do not form part of total income”, therefore, assessee was not eligible to carry forward unabsorbed loss/depreciation – Held that:- As the provisions of Sec. 10A as it stood w.e.f. 1.4.2001 continued to be a provision for exemption. Sec. 10A(6)(ii) provides that no loss which relates to the business of the undertaking shall be carried forward or set off where such loss relates to any of the relevant assessment years ending before 1.4.2001. - Therefore, losses which are sought to be carried forward by the assessee are for the assessment year ending after 1.4.2001 and, therefore, do not fall in the restriction contained in section 10A(6)(ii). - Decided in favour of assessee

  Deduction u/s 10A- Foreign exchange fluctuation gain - Whether Foreign exchange fluctuation gain is eligible for deduction u/s 10A – AO argued such income could not be said to be profits and gains derived by an undertaking from the export of computer software – Held that:- As long as gain on foreign exchange fluctuation is on account of collection of export proceeds, it has a direct nexus with the exports undertaken by the assessee and, to that extent, it will also form part of an income eligible for claim of deduction u/s 10A. - Decided in favour of assessee

  ---

• 2012 (11) TMI 618 - ITAT PUNE
  

  Addition on account of difference in stock – Retraction of statement - Due to theft and unaccounted sales – Assessee stated u/s 132(4) that investment made in land and its development by cash generated from such unaccounted sales – Subsequently assessee rectifies such statement u/s 132(4) that only gross profit has been used to purchase & develop the land - AO assessed the undisclosed income being the sale value of gold jewellery found short – Held that:- The assessee has tried to explain his mistake in the statement recorded on behalf of it. The assessee has accounted for the suppressed sales by way of declaration of gross profit on account of the suppressed sales. Assessee tried to clarify his stand immediately after the receipt of the statement recorded u/s.132( 4) on 20-05-02 and after realizing that there has been mistake in the statement. Such factual retraction should not be brushed aside without verifying the facts and circumstances of same. The addition in question is not justified while assessee has already declared gross proceeds on unaccounted sales as discussed above. The Assessing Officer is directed accordingly. Addition deleted. Issue in favour of assessee

  ---

• 2012 (11) TMI 617 - ITAT PUNE
  

  Validity of Order by CIT u/s 263 – The assessment order has been passed by earlier AO, i.e., ACIT, while said jurisdiction was already transferred to Addl.CIT - Whether the CIT can set aside such an order by invoking provisions of section 263 – Held that:- The CIT has clearly observed that order of Assessing Officer dated 7-09-09 is non est because jurisdiction of this case was already transferred to Additional CIT Satara range on 04-09-2007. The CIT further observed that order of Assessing Officer is set-aside as an abundant precaution. The assessment order has been passed by earlier Assessing Officer, i.e., ACIT of Satara Circle, Satara, while said jurisdiction was already transferred to Addl.CIT, Satara Range, Satara, w.e.f. 04-09-2009. In such situation, order passed by ACIT, Satara Circle, is illegal order. Now question arises as to whether the CIT can set aside such an order by invoking provisions of section 263 of the Act. In our opinion the answer is in the affirmative.

  It is not in dispute that the concern Assessing Officer was not having jurisdiction over the matter due to transfer of jurisdiction discussed above. In case such illegal order passed by the Assessing Officer being erroneous and prejudicial to revenue, is not set aside, it will amount to perpetuation of error. - Once order of ACIT in question is not quashed, the order passed by successor Assessing Officer will go infructuous. It will enhance the mischief. - Decided in favor of revenue.

  ---

• 2012 (11) TMI 616 - ITAT CHENNAI
  

  Additions towards business income from lease of buses – Held that:- As the same issue has been duly consider by ITAT, Chennai ‘B’ Bench in assessee's own case while considering the appeals for the Assessment Years 2002-03 to 2006-07 filed before it and deleted similar additions after examining the facts of the case. Issue decides in favour of assessee

  Additions on account of interest and chit bazar – Held that:- The Tribunal also had considered the appeals in the case of very same assessee for AY 2002-03 to 2006-07, this issue has not been raised therein. In these circumstances, justified in following his earlier orders and granting relief to the assessee.. Issue decides in favour of assessee

  Addition on account of unexplained money – Cash found during search - Books of accounts were not available at the time of search - Assessee had maintained books and they were produced before the assessing authority - Books were not rejected in the course of assessment – Held that:- When we consider the entire aspects, in view of the fact that the cash balance was available in her hands as per cash book. The CIT(A) has deleted the addition of Rs.17 lakhs on sound and reasonable ground. In favour of assessee

  Addition on account of unexplained investment - Gold jewellery and diamonds – Held that:- The assessee coming from an affluent family, reasonable amount of jewellery was received at the time of marriage and other occasions from her parents and other close relatives. As examined the statements made by different persons at the time of search and has tabulated the details of gold ornaments available in the hands of different persons and has reasonably worked out the account of gold jewellery in the hands of the assessee.. In favour of assessee

  ---

• 2012 (11) TMI 615 - ITAT HYDERABAD
  

  Disallowance of expenditure for Assessment year 2007-08 - AO has made an adhoc disallowance of Rs.2,50,000 from the total expenditure of Rs.9,94,262/- claimed by the assessee as assessee is not able to verify expenses. It was contended by the learned AR that for the subsequent assessment year i.e.2008-09 the AO had accepted the expenditure claimed by the assessee and has only made a small disallowance of Rs.50,000/- from the expenditure claimed. Held that:- Considering the totality of facts and circumstances involved, ends of justice will be met if the disallowance is restricted to Rs.1 lakh only - this ground of the assessee is allowed in part.

  Unexplained Cash Deposit - Issue restored to the file of the AO who shall examine the cash deposits in the bank account of the assessee and make an enquiry to find out whether these represent towards LIC premiums paid by policy holders to the assessee for remitting the same to the LIC if he deposits in the saving account are reconciled then the assessee’s claim is to be accepted and, no addition can be made of the said amount u/s 68 of the Act.

  Levy of Interest- Being consequential to the final determination of income, the ground raised by the assessee has become infructuous and accordingly the same is dismissed as such - In the result, the appeal is treated as allowed in part for statistical purposes.

  ---

• 2012 (11) TMI 595 - DELHI HIGH COURT
  

  Addition u/s 68 - ingenuine share transactions - ITAT deleted the addition - reopening of assessment - Held that:- AO had examined the bank accounts and had deduced a pattern by which the bank accounts were used only as a conduit to receive the monies and pay them out on the same day. This pattern, coupled with the general admission made by Pradeep Kumar Jindal one of the directors of company admitted to providing accommodation entry to the assessee and the failure of the share applicants to produce the directors before the AO, all taken cumulatively, should have forced Tribunal necessitating a deeper probe into the matter.

  The Tribunal chose to rest its decision on the sole fact that the share applicants had established there identity by filing confirmation letters and copies of their income tax returns. This is hardly sufficient for the purpose of discharging the creditworthiness of the share applicants and the genuineness of the transactions. Invoking Section 68 involves three ingredients, namely, the proof regarding identity of the share applicants, their creditworthiness to purchase the shares and the genuineness of the transaction as a whole. The Tribunal failed to keep in mind these aspects of the matter and has chosen to dispose of the appeal on the limited question of the identity of the shareholders.

  The present case is one where there is enough material in the possession of the Assessing Officer which warrants explanation from the assessee regarding the nature and source of the share application monies - matter remitted back to ITAT for fresh decision - decided against the assessee

  ---

• 2012 (11) TMI 594 - DELHI HIGH COURT
  

  Offshore Installations – ship/ vessels engaged in drilling operations. - qualifying ships - held that:- Vessels were consistently registered under Section 407 of the Merchant Shipping Act and had a valid certificate which was produced for consideration by the appellate authority who sought remand report and vessel is a qualifying ship for sea in terms of clause (a) of Section 115VD. The Tribunal noticed that unlike in the case of offshore installations which are stationed at one place, the very nature of the activity in which the assessee engaged is to carry out operations in different places; necessarily, at least for a short duration the vessel has to be stationed at one place. In these circumstances, Revenue’s contentions that the vessel is nothing but “offshore installations” has no merit, in the case of Matdrills of the kind put to use by the assessee - reasoning and findings of the Appellate Commissioner and the Tribunal cannot be found fault with - substantial question of law is therefore answered in favour of the assessee and against the Revenue - appeals are consequently dismissed.

  ---

• 2012 (11) TMI 593 - KERALA HIGH COURT
  

  Undisclosed Stock – release of seized gold - one kg of gold already released - held that:- As Assessment proceedings are still not complete and one kilogram of gold has been released to the petitioner after this writ petition was filed and what is held by the Department is, according to the Department, insufficient to realise the probable demand. In such circumstances, the prayer sought in this writ petition, cannot be granted and therefore, the writ petition is dismissed. This shall be without prejudice to the right of the petitioner to seek appropriate orders once the assessment proceedings attained finality.

  ---

• 2012 (11) TMI 592 - HIMACHAL PRADESH HIGH COURT
  

  Claim u/s 43B - Contribution to provident fund – Following the judgement of court in case of [CIT versus Vinay Cement Ltd. 2007 (3) TMI 346 - SUPREME COURT OF INDIA] held that:- If employees' contribution is not deposited by the due date prescribed under the relevant Acts and is deposited late, the employer not only pays interest on delayed payment but can incur penalties also, for which specific provisions are made in the Provident Fund Act as well as the ESI Act. Therefore, the Act permits the employer to make the deposit with some delays, subject to the aforesaid consequences. In so far as the Income-tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed - no reason to deny the benefit of Section 43B, which starts with a non obstante clause and which clearly lays down that the assessee can take benefit of deduction of such contributions, if the same are paid before furnishing of the return - no merit in the appeal filed by the revenue, which is accordingly dismissed.

  ---

• 2012 (11) TMI 591 - HIMACHAL PRADESH HIGH COURT
  

  Deduction u/s 80P(2)(a)(i) - Held that:- Investment of funds by the banks including the non-reserves were part of the banking activities since no bank would like its reserve funds to remain idle and not earn any interest. This is not only prudent business management but is also a part of the activity of banking. Therefore, the interest earned on such deposits is directly attributable to the business of banking followed by decision of court in case of [Mehsana District Co-operative Bank Ltd. Versus Income-Tax Officer 2001 (8) TMI 15 - SUPREME COURT] decided in favour of the assessee and against the revenue and the present appeals are also dismissed.

  ---

• 2012 (11) TMI 590 - DELHI HIGH COURT
  

  Undervaluation - Difference between the circle rate and the purchase price of immoveable properties - ITAT deleted the addition - Held that:- The express provision of Section 50-C enabling the revenue to treat the value declared by an assessee for payment of stamp duty, cannot be a legitimate ground for concluding that there was undervaluation, in the acquisition of immovable property. The finding cannot start and conclude with the fact that such stamp duty value or basis is higher than the consideration mentioned in the deed. The compulsion for such higher value, is the mandate of the Stamp Act, and provisions which levy stamp duty at pre-determined or notified dates. In the present case, the revenue did not rely on any objective fact or circumstances, consequently, the Court holds that there is no infirmity in the approach of the lower authorities and the Tribunal, granting relief to the assessee - in favour of the assessee.

  Addition u/s 68 - CIT(A) deleted the addition - Held that:- The record reveal that the PAN number and material particulars of the Director (of the assessee) and his proprietorship concern, was made available, even the Income Tax Returns concerned, were filed. The CIT (A) scrutinized this aspect in detail, and held that the assessee had discharged its onus of proving that the funds were received, and revealed particulars of the source. This court finds no unreasonableness in regard to such findings, as to call for interference under Section 260-A of the Act - in favour of the assessee.

  ---

• 2012 (11) TMI 589 - DELHI HIGH COURT
  

  Penalty u/s 271(1)(c) - bogus claim of deduction under Section 35CCA - ITAT deleted the levy - Held that:- Both the CIT (Appeals) and the Tribunal have not examined the facts of the present case in the manner expected of them & has merely based its conclusion on certain previous orders without any discussion of the facts of the present case. The question of concealment of income and whether the revised return was filed voluntarily or not is a question of fact to be examined and decided upon the facts and circumstances of the each case and, therefore, it was not permissible to the Tribunal to merely rely on earlier orders where this issue was considered and penalties were cancelled. At best, those earlier cases could only have a persuasive value. Thus the Tribunal has committed an error in upholding the order of the CIT (Appeals) cancelling the penalties, without assigning any valid reason and without examining the facts.

  As the cash book did not contain the name of the donee, though an entry had been made regarding the donation. Even in the donation account appearing in the assessee’s ledger the name of the donee had not been entered when the survey was conducted on 06.10.1983 in the assessee’s premises. The survey of the assessee’s premises under Section 133A took place on 06.10.1983, two months prior to the date of filing the revised return. The survey itself was a result or as a follow up action to the searches and other inquiries conducted earlier. The proceeds of the donation cheque had already been taken out of the bank account which itself had been closed on 13.08.1982. In the light of these facts, the contention that the revised return was filed voluntarily is untenable.

  Reverse the order of the Tribunal and hold that the penalty under Section 271(1)(c) was rightly imposed - against the assessee.

  ---

1 ....151617181920212223........ 35