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Income Tax Case Laws - Section: 145

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Cases for Section: 145
Showing 1 to 15 of 2201 Records

2016 (4) TMI 353 - ITAT DELHI

Hemla Embroidery Mills Pvt. Ltd. Versus DCIT, Circle-I, Faridabad

Addition on account of reduction in gross profit of 6 - sale made to sister concern - Held that - No infirmity in the order of ld CIT(A) in confirming the addition to the extent of ₹ 3,01,352/- on sale made to sister concern as the assessee could not explain the fall in gross profit on distress sale made by assessee to its sister concern. The plea of safeguarding itself from the clutches of slow down and of wastages is not supported by evidence. Merely disclosure of sales figures and sales tax return does not prove or disprove the gross profit declared by the assessee. The rates charged ....... - .......


Kodi Ananda Rao and Yandra Subba Rao Versus CIT, Rajahmundry

Revision u/s 263 - estimation of net profit - Held that - Unless the A.O s order is erroneous, no action can be taken by the CIT u/s 263 of the Act. This is because, the twin conditions i.e. the order is erroneous and the same is also prejudicial to the interest of the revenue are co-exists. In the present case on hand, on examination of the records, we find that the A.O. has conducted enquiry on the issue of estimation of net profit. The assessing officer after verification of books of accounts and other relevant details has adopted 4 net profit on net purchases, which cannot be termed as err ....... - .......

2016 (4) TMI 1122 - ITAT MUMBAI

DCIT (OSD) -8 (2) , Mumbai Versus M/s Kusa Chemicals Pvt. Ltd.

Rejection of books of accounts - variations with respect to month-wise consumption of raw material vis- -vis finished products - provision of section 145(3) invoked - Held that - On identical issue in A.Y.2008-09, an elaborate discussion has been made by the Tribunal and after considering the factual matrix, it was concluded that for invoking the provision of section 145(3) of the act to reject the books of accounts, by the Assessing Officer, it can be done only when, the Assessing Officer is not satisfied with respect to the correctness of completeness of the accounts maintained by the assess ....... - .......

2016 (4) TMI 1118 - ITAT KOLKATA

ACIT Ci rcle-3, Darjeeling Versus M/s Nandi Tea Co. Pvt. Ltd.

Method adopted for working out the profit - Held that - The assessee is engaged in the two similar business activities. There were certain common expenditures such as employment cost, administrative cost and depreciation cost which the AO apportioned 100 to the activity i.e. growing and manufacturing of tea leaves of the assessee on the ground that these cost have to be necessarily incurred by the assessee irrespective of any other the business activity. Therefore the allocation of these expenses is not required between the above sources is not required. However the ld. CIT(A) deleted the addi ....... - .......

2016 (4) TMI 993 - ITAT PUNE

The Dy. Commissioner of Income Tax, Circle 7, Pune Versus Tata Toyo Radiator Pvt. Ltd. and Vica-Versa and Tata Toyo Radiator Pvt. Ltd. Versus The Addl. Commissioner of Income Tax, Range 7, Pune and Vica-Versa

Addition u/s 40A - Held that - The issue arising before us is identical to the issue before the Tribunal in Tata Johnson Controls Automotive Ltd. Vs. DCIT (2016 (4) TMI 963 - ITAT PUNE) and following the same parity of reasoning, we hold that the said expenditure is to be allowed in entirety in the hands of assessee being paid in accordance with the terms of the Agreement agreed upon between the parties and for the purpose of carrying on the business of assessee more efficiently. It may be pointed out herein that the assessee had initially entered into an Agreement with TACO in 1997 and the sa ....... - .......

2016 (4) TMI 994 - ITAT AHMEDABAD

M/s Vega Jewellery Versus DCIT, Navsari and ACIT, Navsari Circle, Navsari Versus M/s Vega Jewellery and Vica-Versa

Disallowance of manufacturing loss - Held that - The facts of the case discussed in the decision of co-ordinate bench in the case of Shukra Jewellery Ltd. vs. ACIT (2009 (4) TMI 949 - ITAT MUMBAI) are also similar to the facts of the case we are dealing in. We, therefore, respectfully following the decision of the co-ordinate bench referred above and also on the basis of our discussion made above, including wastage norms set by the Handbook of Procedures (Vol.I) 1st September 2004 31st March, 2009 issued by Ministry of Commerce and Industry, Department of Commerce, Government of India and also ....... - .......

2016 (4) TMI 997 - ITAT DELHI

ACIT, Circle-1, Meerut Versus Mastermind Publication (India) Pvt. Ltd and Vica-Versa

Rejection of books of accounts - GP determination - Held that - As in absence of any latent, patent and serious defect in the books of account of the assessee it cannot be rejected. Furthermore as per office note attached with the order of the AO it is noted that confirmation of sundry creditors has been obtained by issuing notice u/s 133(6) of the Income Tax Act. This shows that all third party enquiries also confirms proper booking of purchases and maintenance of accounts. Subsequently, the month wise quantitative details along with opening and closing stock were also verified by the AO. - T ....... - .......

2016 (4) TMI 999 - ITAT LUCKNOW

DCIT, Circle-Gonda Versus M/s A.P. Associates and M/s A.P. Associates Versus ACIT, Circle-Gonda

Net profit determination - Held that - We find that in Assessment Year 2008-09 also, the Assessing Officer applied net profit rate of 7 as against 8 in the present year and when the assessee carried the matter before the Ld. CIT(A), Ld. CIT(A) held that net profit rate of 4 should be applied subject to allowing of deduction for interest and salary paid to the partners. In this manner, Ld. CIT(A) reduced the assessed income to ₹ 16,01,949/- as against income computed by the Assessing Officer at ₹ 43,31,680/- in that year. Hence, we are of the considered opinion that regarding applic ....... - .......

2016 (4) TMI 741 - PATNA HIGH COURT

Ajay Kumar Singh Versus Commissioner of Income Tax-II, Patna, Joint Commissioner of Income Tax, Range -4, Patna

Allowance of depreciation after applying net profit rate - Held that - Neither before the Assessing Officer or before the Commissioner of Income Tax (Appeals) or before the Tribunal, the appellant referred to the balance-sheet to contend that he should have been allowed depreciation after applying net profit rate. Once the Assessing Officer has found that net profit rate has been applied 12 after depreciation, one can infer that the Assessing Officer was conscious of the depreciation claimed by the assessee. Even if it was not so, the appellant has not made a grievance before the Commissioner ....... - .......

2016 (4) TMI 906 - ITAT JAIPUR

Income Tax Officer, Ward 1 (1) , Kota Versus Harish Kumar Sachdeva

Disallowance on account of net profit - Held that - AO has not given any justification for applying 12 net profit on the estimated sale in the hands of licensee. In case of AOP, the case has been scrutinized U/s 143(3) of the Act where income disclosed by the AOP has been accepted by the Assessing Officer. The income result has been accepted by the Assessing Officer. Copy of scrutiny assessment has been placed in the paper book. The findings given by the ld CIT(A) are also not on merit in estimating the income 2 as in the hands of AOP, same income has been taxed by holding that Assessing Offic ....... - .......

2016 (4) TMI 471 - ITAT DELHI

DCIT, Circle-II (1) , New Delhi Versus IFS Solutions India P. Ltd.

Addition on account of change in the accounting method of the company - Held that - As from an incorrect and flawed accounting Policy Company has now adopted a sound accounting policy. Secondly, when in subsequent years, the revenue itself has accepted the changed accounting policy of the company on period basis. The assessee being company which is required to maintain its books of accounts in accordance with section 209 of The Companies Act, 1956 on accrual basis. The principle of accrual is violated if the revenue is recognized at the time of raising of the bill irrespective of period of ren ....... - .......

2016 (4) TMI 422 - ITAT DELHI

Tarun Bansal Versus ITO, Ward-29 (2) , New Delhi

Undeclared cash deposits - treated as business receipts - Held that - All the sales of the assessee are made in cash, and the assessee failed to substantiate why cash deposit of ₹ 19,93,152/- were only sales of the business receipts and not entire cash deposits. The explanation of the assessee that the withdrawals were re-deposited was not accepted by the AO as well as by the CIT(A) in absence of any evidence in support of its claim that withdrawals were re-deposited in bank account. We find that the ratio of the cases cited by the assessee is not applicable over the facts of the case as ....... - .......

2016 (4) TMI 511 - ITAT DELHI

Sh. Iftikhar Ali Khan Versus DCIT, Central Circle, New Delhi and Vica-Versa

Rejection of books of accounts - Held that - In view of the defects pointed out by the Assessing Officer and ld. CIT(A) in the books of account, we are of considered opinion that the books of account cannot be said to be correct in terms of Section 145(3) of the Act and we find the order of the ld CIT as well reasoned and no interference is required by us, accordingly, we uphold the finding of ld. CIT(A) on this issue in dispute - Decided against assessee - Addition on unexplained cash - Held that - The appellant does not have any explanation for the cash found during the search. Therefore the ....... - .......



Addition of loss due to fall in value of stocks - genuity of purchases - Tribunal deleted the addition - method of accounting - Held that - The payment made is undisputed. The custody of the goods namely, iron ore as that of the assessee, though may be lying at the various ports, is also undisputed. When the assessee has made the payment for purchase of a particular quantity of material and the goods are lying in the custody of the assessee, though may be at various ports, the same could validly be termed as stock in trade. If the value of such stock in trade has gone down, the deduction for t ....... - .......

2016 (4) TMI 335 - ITAT JAIPUR

M/s Gupta K.N. Construction Co. Versus D.C.I.T., Circle-7, Jaipur.

Estimation of N.P. rate - Held that - The assessee has claimed third party interest from the net profit rate estimated but on verification of the past history, it is found that the assessee never claimed third party interest against the net profit rate applied by the Assessing Officer. Therefore, we do not find any merit on ground of the assessee s appeal. Similarly interest on FDR has also been assessed by the Assessing Officer as income from other sources, which has been accepted by the assessee in past. Therefore, we do not find any reason to disturb the consistency of the case. The net pro ....... - .......


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