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2012 (4) TMI 688
... ... ... ... ..... the assessee. It is a case of honest difference of opinion between the assessee and the department regarding allowability or otherwise of certain amount. The CIT(A) has observed that the disallowance was technical and all particulars of income were available in the audit report part of the return of income. The assessee has filed explanation, which could not be said to be not bona fide. In these facts of the case, we hold that since necessary particulars were filed by the assessee before the AO and were part of the audit r....... + More
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2012 (4) TMI 687
... ... ... ... ..... earned CIT(A) having observed that the assessee was entitled to claim exemption u/s.11 of the Act after specifying some other additions had not spelt out the contentions which could only be clarified by the Revenue in their appeals was therefore a question to be settled only after hearing the Revenue s appeal becomes infructuous to the extent that this issue has been dealt by us and disposed of in the assessee s C.Os. supporting the orders of the learned CIT(A) on this issue and in accordance with the grounds raised by the....... + More
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2012 (4) TMI 686
... ... ... ... ..... of the donors, it does not justify the imposition of the penalty under Section 271(l)(c) of the Act. The facts of the case may justify the additions of the gift amounts for taxation purpose in the assessment of the assessee, but are not sufficient to justify the imposition of the penalty under Section 271(1)(c) of the Act. We are unable to sustain the observations of the CIT(A) that the levy of penalty was mandatory and no discretion, is left with the competent authority. In these facts of the case, we hold that it is not ....... + More
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2012 (4) TMI 685
... ... ... ... ..... ugh ground No.1 iv , Ld counsel for the appellant submitted that the disallowance of interest to the tune of ₹ 394537.00 invoking sec 14A r.w rule 8D is against the law as rule 8D is applicable from 01.04.2007 and it is prospective and further submitted that the AO has grossly erred in not appreciating the fact that investments have been made solely out of own funds and not from borrowed funds. Ld DR contended that rule 8D squarely apply to the facts of the case. We have heard rival contentions and find that the AO h....... + More
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2012 (4) TMI 684
... ... ... ... ..... the revenue- appellant. During the course of hearing we asked a pointed question to the learned counsel for the revenue about the status of the judgments rendered by the Bombay High Court and Rajasthan High Court in the cases of Universal Medicare (P) Ltd. (supra) and Hotel Hilltop (supra) respectively, on which reliance has been placed by the Commissioner Appeals and the Tribunal. There was no satisfactory answer. Learned counsel has not been able to point out that the assessee-respondent fulfilled the basic ingredients o....... + More
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2012 (4) TMI 683
... ... ... ... ..... cts Ltd., are not available in the public domain. Thus, in our view without proper information relating to the activities carried on by the company India Products Ltd., and also the segmental information relating its income from various sources and activities, the said company cannot be taken as comparable for computing the ALP. According to us, the DRP has not dealt with the issue in a judicious manner. In view of the same, we deem it fit and proper to remit the issue to the file of the AO/TPO for reconsideration of the o....... + More
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2012 (4) TMI 682
... ... ... ... ..... pleaded that the assessee should not be allowed the benefit of claiming deduction u/s. 80P. 9. We have heard the arguments and we are of the view that the principle of mutuality is fully applicable and the interest earned on the fixed deposits with the bank and other institutions is fully covered within the parameters of mutuality. We fully endorse the view taken by CIT(A) in the case of Hill Properties Ltd. ITA No. 6223, 6249/Mum/09, that the principle of mutuality cannot be destroyed simply because the funds were not par....... + More
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2012 (4) TMI 681
... ... ... ... ..... area of the site because the same was not available with them at the relevant point of time. In any case, it goes to the root of the issue i.e. size of the plot. Therefore, we, in the interest of justice, admit the additional evidence and restore this issue to the file of the A.O with the direction to decide the actual measurement of the plot for the purpose of allowability of deduction u/s. 80 IB (10) and decide the issue afresh and in accordance with law after giving due opportunity of being heard to the assessee. Revenu....... + More
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2012 (4) TMI 680
... ... ... ... ..... ad debt may also be a trading loss but a trading loss need not necessarily be bad debt . 23. We find that the amount charged off to the profit and loss account during the year pertains to the balance receivable from various customers. The amounts pertains to the current year and previous year balances. Hence it is in the nature of amounts which cannot be recovered and charged off, the claim to the extent ₹ 5,79,350/- is to be allowed as deduction. The Hon ble Punjab Haryana High Court in the case of CIT Vs. Dayachand....... + More
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2012 (4) TMI 679
... ... ... ... ..... tantial error of law in deleting penalty of ₹ 23,42,010/- imposed under section 271(1)(c) of the Income Tax Act by the Assessing Officer and confirmed by the appellate Commissioner by totally overlooking the fact that the ingredients of section 271(1)(c) of the Act were established and was also referred to by the Assessing Officer.
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2012 (4) TMI 678
... ... ... ... ..... the Hon ble jurisdictional High Court in assessee s own case and it has been held that payment made by the assessee to non-resident companies would amount to royalty within the meaning of Article 12 of the DTAA with the respective countries and there was obligation on the part of the assessee to deduct tax at source u/s. 195 of the I.T. Act. We therefore do not see any infirmity in the order of the ld. CIT(A), as such we do not find any merit in this appeal of the assessee. 11. Since the facts of the present case are simil....... + More
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2012 (4) TMI 677
... ... ... ... ..... uld summon M/s. Sar Stitchers Pvt. Ltd. or its director, which authorities lies with the AO under the Income-tax u/s 131 of the Act and the same has not been used by the A.O. At the same time, the AO proceeded to conclude the matter purely on arbitrariness, surmises and conjectures to doubt the agreement entered into by M/s. Sar Stitchers Pvt. Ltd; with the assessee alongwith the confirmation of the amount given and taken back. In the absence of any evidence against the assessee or adverse material to rebut the explanation....... + More
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2012 (4) TMI 675
Delayed payment of employees’ contribution towards Provident Fund and towards ESIC - Held that:- The Act permits the employer to make the deposit with some delays, subject to stated consequences. Insofar as the Income-tax Act is concerned, the assessee can get the benefit if the actual payment is made before the return is filed. Computing deduction u/s.10A - Held that:- CIT(Appeals) was justified in allowing the claim of the assessee and directing the AO to exclude the expenses both from export turnover as well as total turnover while calculat....... + More
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2012 (4) TMI 674
... ... ... ... ..... s ground is dismissed. 29. Ground 8 relates to computation of book profit u/s115JB of the Act . 30. AO while framing the assessment order calculated the book profit for the purposes of sec 115JB on the basis of the additions made by him in the assessment order . Since we have deleted all those additions made by the AO as per ground 2 , 3 6 here in above , we find no room for calculation of book profits on the basis of the impugned additions. 31. Order of the Ld CIT A is reversed on this count and appellants appeal on this ....... + More
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2012 (4) TMI 673
... ... ... ... ..... le of Assessing Officer for adjudication afresh in accordance with law. The Assessing Officer is directed to consider the propositions laid down by this Bench in the case of M/s. B.K. Tex Corp. (supra) and in the case of Mr. Bhagwan Gada (supra), as well as the material found during the course of search and the inflation factor claimed by the assessee and come to an appropriate conclusion. Accordingly, we set aside the impugned order passed by the Commissioner (Appeals) and restore this issue to the file of Assessing Offic....... + More
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2012 (4) TMI 672
... ... ... ... ..... case, relevant record and judicial verdicts, the surplus realized on sale of such land, is not taxable receipts. In view of the above legal and actual discussions, we are of the considered opinion that findings of the CIT(A), based on bare assertions, in the face of documentary evidence, filed by the assessee, to support his claim, as discussed above, cannot be upheld. Accordingly, appeal of the assessee is allowed. 16. As the facts and grounds of appeal raised in ITA No. 228/Chd/2010 are similar to that of raised in ITA N....... + More
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2012 (4) TMI 671
... ... ... ... ..... self clearly shows that the motive and intention of the assessee of purchase and sale is to retain the same as investment. Further, when these shares are held and treated in the balance sheet as investment at cost price, then in view of the overall facts and circumstances of the case, we do not find any merit and substance in the appeal of the revenue on this issue. Accordingly, we do not find any error or illegality in the order of the CIT(A), qua, this issue. o p /o p 7. In the absence of any distinguishing feature broug....... + More
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2012 (4) TMI 670
Income from lease rent is assessable under the head Income from business - Held that:- The undisputed facts are that the assessee has leased out its plant and machinery in the year 1995. Hence, while considering the claim of the assessee for the years ending 31.3.1996 and 31.3.97, the Tribunal held that there is nothing on record to show that the assessee had no present intention to revive its business at appropriate time, as the gap between the year of closure and the years under consideration at that point of time was very narrow. We are con....... + More
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2012 (4) TMI 669
... ... ... ... ..... the said Tribunal s order, has been reproduced under para 12 of this order, while dealing with the same issue in the revenue s appeal, as adjudicated above. 29. In view of the above legal and fact-situation, this ground of appeal of the assessee is allowed. 30. In Ground No. 5, the assessee appellant raised the issue in respect of initiation of penalty u/s 271(1)(c) of the Act which is pre-mature in nature and, hence, the same is dismissed. 31. In Ground No.6, assessee challenged the charging of interest u/s 234B, C and D ....... + More
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2012 (4) TMI 668
... ... ... ... ..... In a case where an issue was examined and considered in the original assessment proceedings, mere question(s) is not sufficient. There is no material/evidence to show that the statement or the explanation given by the petitioner was false. This is not alleged or stated in the reasons to believe. Mere doubt or suspicion without any tangible material cannot justify re-opening. The Assessing Officer could have justified reopening if he had conducted verification and inquiries and referred to material/evidence to prima facie s....... + More
