Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 488 - HC - Income TaxStay application - Disallowance made to M/s.Jaldhi Overseas Pvt. Ltd. – Held that:- Following the decision in M/s. Anand Transport (Private) Ltd. Versus Assistant Commissioner of Income Tax [2014 (2) TMI 434 - MADRAS HIGH COURT] - the transaction between the assessee and non-resident company would be taxable only in Singapore and not in India - disallowance u/s 49(a)(i) for alleged non-deduction of tax at source in terms of Section 195(1) of the Income Tax Act is upheld - the issue raised for consideration is prima facie covered by the decision of the Hon'ble Division Bench - Therefore, it is a good ground for granting stay of the demand - the demand which has been raised on the petitioner under the 1st head shall remain stayed till the disposal of the appeal by the CIT(A). Disallowance of interest on amount borrowed and advances to Sister company for development of group business – Held that:- In assessee’s own case for the earlier assessment year wherein the assessee had filed appeal before the CIT(A) and pleaded for deletion of the disallowance by relying upon SA BUILDERS LTD. Versus COMMISSIONER OF INCOME-TAX [2006 (12) TMI 82 - SUPREME COURT] - the assessee has established prima facie case - Though it is stated by the learned Standing Counsel for the Revenue that it is for the AY 2009-2010, yet legal principles, which were adopted by CIT (A) as on date holds good and it is for the appellate authority in the present appeal to consider that issue independently. Disallowance u/s 14A – Held that:- Though the submission was made by the petitioner, the 1st respondent has not assigned any reason either accepting or rejecting the petitioner's contention, but only proceeded to direct the petitioner to pay tax due immediately - the scheme of the Act reposes such duty on the AO, while examining the stay petition, filed by the assessee requesting for stay of the demand till the appeal against the order of assessment is heard by the CIT(A) - this principle has not been adhered to and the order is a non speaking order – thus, the disallowance is set aside and the matter is remitted back for fresh consideration. Disallowance for difference in 26AS – Held that:- The revenue has granted liberty to the petitioner to file necessary documents and statements and granted time – revenue is entitled to proceed with in accordance with law, after receipt of documents and statements from the petitioner – Decided in favour of assessee.
|