Advanced Search Options
Case Laws
Showing 341 to 360 of 769 Records
-
2012 (4) TMI 488
Jurisdiction Power of Commissioner - Assessee’s claim in respect of deductions on account of payment of bonus was allowed under Section 43B of the Act - said claim had been allowed in the assessment year 1994-95 also - proceedings initiated for rectification under Section 154/155 were dropped - initiation of suo motu revisional jurisdiction by seeking to revise order of assessment in lieu of the interest of Revenue as the assessee had claimed the deduction twice – CIT set aside the order of assessment and directed re-computation - the assessee approached Court under Article 226 of the Constitution - writ petition was opposed and it was submitted that merely because rectification proceedings were dropped, did not affect jurisdiction of the Commissioner under Section 263 – Learned Single Judge held that the writ petition could be entertained as order of the Commissioner was without jurisdiction - Held that:- the learned Single Judge was not justified in interfering with the order of the Commissioner passed under Section 263 of the Act - an error was noticed by the Commissioner in the order of the AO and thus it could not be held that such an order was beyond the revisional jurisdiction of the Commissioner - allow appeal, set aside the impugned order passed by the learned Single Judge and dismiss the writ petition filed by the respondent assessee.
-
2012 (4) TMI 487
Validity of reopening of assessment beyond 4 years – Trust - A.Y. 2004-05 – Revenue contended that provision made in the accounts cannot be treated as income applied to the objects of the trust hence escapement of income – not entitled for double deduction by way of claiming both capital expenditure as application of income and depreciation on capital assets – Held that:- Second contention of revenue is not sustained, since same has been decided in favor of assessee for A.Y. 2003-04. Further, since Income & Expenditure A/c clearly reflects provision for doubtful accounts it is ex facie, evident that there was no suppression of material facts by the assessee. Therefore, in absence of failure on the part of the assessee to disclose fully and truly all material facts, notice issued u/s 148 is quashed – Decided in favor of assessee.
-
2012 (4) TMI 486
Appeal by Revenue against the Tribunal - challenging the order that interest under section 234B and 234C of the Act cannot be levied against the assessee as the computation of income has been made under Section 115JA of the Act – Held that:- The pre requisite condition for applicability of Section 234B is that the assessee is liable to pay tax under Section 208 and the expression "assessed tax" is defined to mean the tax on the total income determined under Section 143(1) or under Section 143(3) as reduced by the amount of tax deducted or collected at source - The expression "assessed tax" is defined to mean the tax assessed on regular assessment which means the tax determined on the application of Section 115J/115JA in the regular assessment - there is no exclusion of Section 115J/115JA in the levy of interest under section 234B – appeal of revenue accepted.
-
2012 (4) TMI 485
Petition filed for directing respondents to dispose of the refund claim application – Held that:- Respondent is directed to dispose off refund claim on merits and in accordance with law, within a period of six weeks from the date of receipt of a copy of this order. No opinion is expressed on merits of the matter.
-
2012 (4) TMI 484
Writ petition for a Mandamus directing the respondents to release the goods residue Wax imported vide Bill of Entry No.5345063 - third respondent on being forwarded the Bill of Entry alleged that the petitioner had undervalued the goods and withhold the goods - petitioner submits to release Residue Wax as it will melt causing great prejudice to the petitioner - petitioner claims that since Residue Wax is declared as freely importable goods, the value declared by the petitioner has to be accepted as correct as per the provisions of the "Customs (Provisional Duty Assessment) Regulations, 1963 - Held that:- only reason for non releasing of the goods is that the petitioner has undervalued the goods at USD 325 per MT - writ petition is disposed of - provisional release of the goods in regard to deposit with the custom authorities the duty payable on the value declared by them i.e. USD 325 Per MT and 50% of the differential duty
-
2012 (4) TMI 483
Companies Act 1956 - petitioning-creditor seeking immediate appointment of a provisional liquidator over the company – non-payment of debt – winding up petition filed by creditor in 1998 dismissed on ground of reference made by the company to the BIFR prior to the filing of such petition – no scheme formulated by BIFR for nearly a decade - immovable properties of the company were alienated against little or no consideration – fictitious financial restructuring undertaken by the company to have positive net worth to de-register itself from BIFR scheme – other creditor’s winding-up petitions also admitted - Held that:- Merely by virtue of the pendency of the reference, the company enjoyed the suspension of legal proceedings, contracts and the like under Section 22(1) of the BIFR Act of 1985. A series of measures was adopted by the management of the company as a part of a vicious and malafide design to cheat its creditors, deceive all authorities and, its employees. In such circumstances, petition is allowed by way of appointment of official liquidator as the provisional liquidator over the company. Since, company is unable to show that transactions of sale of immovable properties were necessary or for the purpose of augmenting resources to discharge the company’s debts. Hence they being fraudulent, the title therein may not be deemed to have passed at all from the company – Decided in favor of petitioner.
-
2012 (4) TMI 482
Rebate claims - Petition filed for directing respondents to dispose of the various rebate claims filed by applicant - Held that:- Respondent is directed to dispose off rebate claim filed by applicant on 16.08.2011, 17.08.2011, 04.11.2011, 07.12.2011, 08.12.2011 and 23.01.2012 on merits and in accordance with law, within a period of six weeks from the date of receipt of a copy of this order. No opinion is expressed on merits of the matter.
-
2012 (4) TMI 481
Vested right of promotion – petitioners passed the department examination, for the post of Senior Tax Assistants in February, 2009 seeking consideration for promotion to that category before 1.1.2010 - vacancies were identified as available as on 1.1.2010 to operate during F.Y. 2010-11 – Held that:- Appointment to a higher category, even by promotion, is not a vested entitlement. It is also the vested right that among the persons in the field of choice, seniority will apply unless the junior has certain other grounds for marching over the priority based on seniority that may be available to an admitted senior. In present case, petitioners do not have any claim that any person junior to them in same category was given promotion in preference to them. Further, period of service would be counted from actual date of promotion and not from availability of vacancy – Petition dismissed
-
2012 (4) TMI 480
Period of limitation – rejection of rebate claim on ground of limitation - goods actually exported on 12.02.2006 – finally assessed copy of shipping bill handed over to assessee on 25.06.07 – rebate claim filed on 17.07.2007 – Held that:- U/s 11B a claim for the refund of duty has to be made within a period of one year from the relevant date; the date on which the ship or the aircraft in which such goods are loaded leaves India would be regarded as the relevant date. Therefore, rejection of application for rebate filed on 17 July 2007 is justified – Decided against the assessee.
-
2012 (4) TMI 479
Addition - principal agent relationship - addition on the ground of surplus in RGCTP account on sale of development rights to M/s Parsvnath Developers Ltd., made by the AO - The assessee-Board and the Chandigarh Administration are not natural persons but juristic entities and hence there cannot be any oral agreement between them to create agency. The admitted position is that there is no written contract between them to create agency. After taking into account all the materials brought on record including the legal position, we confirm the finding of the AO/CIT(A) that the assessee-Board was not an agent of the Chandigarh Administration in so far as the said project is concerned. All the pleas taken by the assessee in this behalf are therefore rejected.
.
Regarding diversion of income - if the income, before it reaches the assessee, is diverted away by superior title so that the assessee, when he receives the income, has to pass it on to a third party, the portion passed on, or is liable to be passed on, is not the income of the assessee but of the person to whom it is passed on or is liable to be passed on - Held that: there is no diversion of income arising from the commercial exploitation of land owned by the assessee by an overriding title in favour of the Chandigarh Administration - it is held that the impugned sums accruing to the assessee in pursuance of the Development Agreement did not stand diverted at source by any over-riding title, which is antecedent in point of time, in favour of the Chandigarh Administration - The application or destination of the income has nothing to do with its accrual or taxability.
.
Whether the AO is right in holding that the impugned amount has accrued to the assessee in the year under appeal and taxing the same as such in the year under appeal - The case of the AO is that the assessee follows mercantile system of accounting and hence the entire bid price amounting to Rs. 821.21 crores being consideration for granting the leasehold and development rights to the Developer has accrued to the assessee in the year under appeal and therefore is chargeable to tax in the year under appeal - assessee has followed accrual system of accounting, the AO has rightly taxed the impugned sum in the year of accrual, i.e., the year under appeal, and not on the basis of receipt or in the years of actual receipt - Appeal is dismissed
-
2012 (4) TMI 478
Block assessment - Search and seizure - Undisclosed income - Assessing Officer issued a notice under Section 158 BC of the Act on 11.03.1997 directing the assessee to furnish return of income in Form -2B for the block period 1987-88 to 1997-98 - In addition to the above sum of Rs.75 lakhs, the assessee also paid another sum of Rs.25 lakhs to AIADMK on 13.07.1995 as is evidenced by the statement of his Bank Account - it is an undisputed fact that the assessee would have generated more than Rs.7,73,250/- for the 10 assessment years during the period 1987-88 to 1997-98. Hence the assessee would not have earned any amount from undisclosed source - Held that: it is clear that the Tribunal had given a finding that the assessee had established the source of fund from where it was collected and the collected money was given to the AIADMK head quarters for Building Fund - Decided in favor of the assessee
-
2012 (4) TMI 476
Rejection of Audit report u/s 142(2A) by the AO - Undervaluation of closing stock - it is submitted that there was a change in method of valuation of closing stock. In this connection, she has drawn our attention to the table noted by the Assessing Officer, who has held that the closing stock was bifurcated into three categories; finished goods, semi finished goods and goods under process - assessee has, before us, filed a chart giving year-wise details of the closing stock from the assessment year 1997-98 to 2005-06 in respect of finished goods, semi finished goods, goods under process and raw material. The said chart indicates that the closing stock was exported or was sold in different time spans in each year - Assessing Officer did not interfere/reject the valuation of the closing stock made by the assessee @ 90%, 74% and 60% of the sale value for finished, semi finished and goods under process - Considering the volume of business and numerous items involved, the assessee has been valuing the finished goods, semi finished goods and goods in progress on the basis of sale price of these items sold in the subsequent year after deducing a particular margin, which has been uniformly followed by the assessee in the earlier and the subsequent years - for assessment year 2003-04, an assessment order was passed on 31st March, 2006 and in the said assessment order no addition whatsoever was made to the closing stock but the method adopted by the assessee for the said assessment year was same - Decided in favor of the assessee Regarding addition of Rs.25,80,879/- made by the AO on account of travelling expenses - Assessing Officer had disallowed the entire expenditure of Rs. 25,80,879/- The tribunal while partly deleting the disallowance held that the expenses were incurred for purpose of business under Section 37 - Held that: tribunal has estimated and disallowed 20% of the foreign travel expenditure on the ground that it may not have been incurred wholly and exclusively for the purpose of business - Decided in favor of the assessee Regarding addition u/s 40A(2)(b) of the Act on the ground that excessive/unreasonable expenditure was incurred on getting garments fabricated from associate concerns, namely, R.A. Exports and Sensational Exports - Held that: the disallowance had been made mainly on the basis of some technical defaults noted by the A.O. The assessee has satisfactorily explained the absence of GRN or challans, which were not required as the work was being done at the factory premises of the assessee - Assessing Officer did not conduct any investigation or verification into the reasonableness of the said expense with reference to payment made to third parties or fair market charges payable for similar nature of work - Decided in favor of the assessee Regarding rejection of book of accounts - High Court has clearly observed that absence of stock register, in a given situation, may not per se lead to an inference that the accounts were incomplete or false but this issue has to be examined keeping view the other factors, which include fall in gross profit rate - Held that: the contention of the Revenue that stock register was not maintained and the relevant column of the auditor‟s report record indicate absence of the stock register, justify rejection of the books of accounts, cannot be accepted - Decided in favor of the assessee
-
2012 (4) TMI 475
Search and seizure - Block assessment - Undisclosed income - Provisional attachment to protect revenue in certain cases - it is stated that the block assessment proceedings were to be completed by 25th August, 2007 but in view of the stay granted by the Supreme Court, the proceedings were still pending - The third proviso was inserted in 2009 by Finance (No. 2) Act of 2009 with retrospective effect from 1st April, 1988 is as under:- “Provided also that the period during which the proceedings for assessment or reassessment are stayed by an order or injunction of any court shall be excluded from the period specified in the first proviso - The contention relating to communication of the order also need not be decided as there is no order extending the provisional attachment under Section 281B on or after 24th January, 2008 - It is not the contention of the Revenue and it was not urged and in our opinion rightly that the third proviso incorporates a deeming provision, which has the effect of continuation or extension of the last order under Section 281B dated 19th July, 2007 which was upto and valid till 24th January, 2008 - It does not stipulate that the provisional attachment order issued, shall be deemed to be effective and continue beyond the stipulated period mentioned in the order, when there is an injunction or an order by a Court staying the assessment/reassessment proceedings The contention of the petitioner is that there is no connection between the block assessment proceedings and the refunds which are due to the petitioner - The “connection” mentioned in the said order has reference to the reasons stated in the order of provisional attachment and whether the said reasons have any nexus or connection with the assessment/reassessment proceedings, which have been stayed by the Supreme Court Whether the Revenue can pass a fresh order under Section 281B in view of the third proviso to the said Section introduced/inserted by Finance (No. 2) Act of 2009 with retrospective effect from 1st April, 1988 - The petitioner in fact had filed an application CM No. 2845/2010 challenging the retrospective amendment, which was dismissed as withdrawn vide order dated 26th May, 2010.
-
2012 (4) TMI 474
Exercise of jurisdiction by the Assessing Officer under Section 147/148 - deduction under Section 33AC and deduction under Section 80IA of the Act - The tribunal has held that the aforesaid reasons to believe do not justify reopening and satisfy the requirements under Section 147/148 of the Act. - Held that :- Re-assessment proceedings were initiated by the Revenue, inter alia, stating that income had escaped assessment in respect of so many items. Additions were made on account of as many as six heads - The order passed by the tribunal is cryptic and does not deal with the contentions and the issues raised with reference to the reopening under Section 147 of the Act - the tribunal has not examined and dealt with the said aspect as mandated and required - accept the appeal by the Revenue and pass an order of remand directing the tribunal to decide the issue afresh
-
2012 (4) TMI 473
Deemed dividend - Assessing Officer held that Rs. 2,13,84,360/- received by the partnership firm from Bharti Enterprises Pvt. Ltd. should be treated as deemed dividend. It may be noted that the two partners hold more than 10% shares in Bharti Enterprises Pvt. Ltd - learned counsel for the respondent-assessee submits that the payment of Rs.2,13,84,360/- was not out of accumulated profits but this contention was not examined by the CIT (A) and Income Tax Appellate Tribunal as the respondent had succeeded on the other ground mentioned above - Decided in favor of the assessee by way of remand to Tribunal.
Regarding capital loss - It was simultaneously claimed that a note was enclosed with the return stating that long term capital gains on the sale of the property was exempt under Section 54, consequent upon her purchase of a residential house in Vasant Vihar for more than Rs.13 crores. The Assessing Officer expressed reservation/doubt about the exemption claim by Deepika Mittal under Section 54 after stating that only Rs.50 lacs was paid to her and balance amount was payable on registration of the sale deed. - held that:- The Revenue should have examined and verified the records before raising the said contention in this appeal.
-
2012 (4) TMI 472
Failure to examine the material which gives rise to the demand making the adjudication unsustainable - both the authorities proceeded under presumptions and suppositions without applying their mind to examine the evidence which has determined liability - Held that :- it is desirable in the interest of justice to send the matter back to the adjudicating authority to examine the very source document which creates liability and incidence tax shall be determined - All legal pleadings are open to the appellant to argue before the adjudication authority in its defence leading permissible evidence
-
2012 (4) TMI 471
Penalty imposed u/s 76, 77 & 78 of Finance Act 1994 - Cable operator – period 1.9.03 to 31.3.06 – services taxable w.e.f. 16.08.2002 – assessee pleaded illiteracy, bona fide belief of non-taxability of said service and financial hardship – Held that:- Service tax together with interest is confirmed as not contested by the applicant. Tribunal in the case of Krishna Satellite Cable Network v. CCE [2008 - TMI - 31294 - CESTAT NEW DELHI] has held that there could be bona fide reasons on the part of the assessee, who was cable operator and was receiving signals from multiple system operator, as regards the fact of services not being taxable. In view of aforesaid, penalties are set aside – Decided in favor of assessee.
-
2012 (4) TMI 470
Confirmation of the penalty u/s. 271(1)(c) by CIT (A) as on the date of filing of return no judicial pronouncement was available in his favour of assessee – assessee contested that appellant had disclosed all the details with respect to claim u/s. 10B in the computation of income and notes thereon and the said claim was as per Form 56G issued by the Chartered accountant – Held that:- Availability/non-availability of a particular pronouncement on a particular date cannot be the basis for imposing penalty u/s. 271(1)(c) - deduction has to be allowed in respect of three eligible units and loss of the fourth 10A unit has to be set off against the normal business income - Provision of s. 271(1)(c) are valid when there exists concealment of the particulars of the income of the assessee or the assessee have furnished inaccurate particulars of his income - no information given in the return was found to be incorrect or inaccurate – in favour of assessee.
-
2012 (4) TMI 469
Treating the sale proceeds of depreciable assets as short term capital gains – ITAT held the Order to be contrary to Section 50 - Held that:- Given the fact that block of assets is identified by the percentage of depreciation granted, on going through the various heads under the Schedule, we find that the depreciation percentage fixed is more of machinery specific rather than industry specific. Thus, on going through the various clauses in the Schedule, we find, if the asset transferred and the asset purchased fall for consideration under the self-same percentage of depreciation, then the asset qualified for being termed as falling under a block of assets. Thus, if the assets transferred from the 100 per cent export- oriented unit and the assets purchased come for the same percentage of depreciation as prescribed in the table, the assessee would be justified in seeking adjustment in the matter of working out the capital gains.
Whether effect of section 32 should be examined while computing short term capital gains and interpreting Section 50 - held that:- ection 32 forms part of Chapter IV-D and relates to computation of income from profession and business. It is not the case of the Revenue that the gain on transfer of the block of assets is taxable as business income. The two sections operate in their own filed and there is no conflict. In these circumstances, we do not think we should refer and rely upon Section 32 and accordingly compute and decide whether short term capital gains is payable under Chapter IV-E - in favour of the assessee
-
2012 (4) TMI 468
ITAT deleted addition of Rs.5,60,750/-, Rs.4,50,600/- and Rs.8,12,350/- made by the Assessing Officer on the basis of the valuation report – Held that:- AO cannot make addition solely on the basis of the report of the DVO - no incriminating material was found during the course of search and the transactions were duly reflected in the returns filed by the assessee in the normal course – against revenue.
ITAT deleted addition made by the Assessing Officer on account of undisclosed investment – Held that:- Income in question had to be taxed in the hands of Association of Persons and the mere fact that the said income was taxed in the hands of individual members of Association does not bar the Income Tax Officer from taxing the Association of Persons - Order passed by the tribunal is perverse and an order of remit is passed to the tribunal to re-examine the question of taxability on account of the undisclosed investment in the purchase of property No.1028, Sector 15-II, Gurgaon in the hands of the respondent-assessee –in favour or revenue.
Undisclosed income in the block assessment proceedings has to be taxed at a flat rate - no matter whether the income has been assessed under the head “income from business”, “income from other sources” or “income from property”.
............
|