2018 (10) TMI 1124
Disallowance u/s 14A - investment was made by assessee on last day of relevant year - assessee made suo-moto disallowance on the basis of method provided in Rule 8D of IT rules - Held that - Referring to the working of the disallowance u/s 14A we observe that an apparent mistake was pointed out by the assessee during the course of assessment proceedings itself before the Ld.A.O by way of providing the revised calculation of the disallowance u/s 1....... + More
2018 (10) TMI 1123
Addition u/s. 50C on account of STCG - non referring the mater to DVO for determination of Fair Market Value - Held that - Assessee having income from Salary, Short Term Capital Loss & Bank F.D. Interest etc. Assessee filed the return of income for A.Y. 2010-11 on 02.04.2011 declaring total income of ₹ 92,400/-. During the course of assessment, appellant filed all necessary documents and detailed submissions and during assessment procee....... + More
2018 (10) TMI 1122
Addition u/s 68 - unexplained capital receipt - onus on the assessee to prove to satisfaction of the A.O the nature and source of the credits in the books of accounts. - Admission of additional evidences by hte CIT(A) - Held that - All the aforesaid evidences have been filed at the instance of the Ld.CIT(A) and, therefore, the said evidence is covered by Rule 46A(4) which does not require to satisfy the conditions of Rule 46A(1) of Income-tax Rul....... + More
2018 (10) TMI 1121
Eligibility for deduction u/s. 80(P) denied - area of operation not confined to a taluk - amended clause 80P(4) - Impact of article a used therein - providing credit facilities to its members for Agricultural And allied Rural Development activities - Held that - Explanation (b) to section 80P(4) is a defining provision employing the word means . The Hon ble Apex Court in the case of West Bengal State Warehousing Corporation vs. Indrapuri Studio P....... + More
2018 (10) TMI 1120
Allowable busniss expenditure u/s 37(1)- payment for resuming the mining activity by Categories A & B companies - Held that - The fact that the compensation is proportionate to area of illegal mining outside the leased area and that the assessee has paid the proportionate compensation for mining in the areas outside the sanctioned area allotted to it and that 10% of sum is to be transferred to SPV and the balance 10% is to be reimbursed to th....... + More
2018 (10) TMI 1119
Reassessment in the case of a dissolved company even for the year in which the company was existing - reopening against not existing company - Held that - Since, in the instant case, the Assessing Officer has issued notice u/s 148 on a non-existent company as the assessee company has been liquidated vide the order of the Hon ble High Court dated 06.08.2009, therefore, we do not find any infirmity in the order of the CIT(A) quashing the re-assessm....... + More
2018 (10) TMI 1118
Disallowance in respect of Commission and incentive made - Held that - It is pertinent to note that the CIT(A) and the Assessing Officer has relied upon the assessment order for Assessment Year 2003-04 but failed to appreciate that in the assessee s own sister concern in case of Bulk Explosives, this issue has been decided in favour of the assessee. In-fact, the CIT(A) has noted the said decision in paragraph 6(3) of the order but still confirmed....... + More
2018 (10) TMI 1117
Penalty levied u/s 271AAA - basic requirement of the section 271AAA is not fulfilled i.e. the assessee failed to elaborate the manner in which the undisclosed income was derived - diversified views - Held that - It is the settled position of law that when two views are possible on an issue the view which is favourable to the assessee has to be accepted in view of the decision of Hon ble Supreme Court in the case of Vegetable Products Ltd. 1973 (1....... + More
2018 (10) TMI 1116
Transfer pricing - proper allocation of expenses - proof of expenses incurred leasing business with AE - Adjustment made in the transaction of purchase of home base segment - The TPO formed a belief that homebase segment was artificially showing higher operating margin of 49%, while the domestic operation was showing loss of 24.13% - Held that - When the accounts are regularly maintained in the course of business, duly audited under the provision....... + More
2018 (10) TMI 1115
Disallowance u/s 35D - deduction on account of preliminary expenses - Held that - The income from freight having been received by the assessee-company from its operation for the first time in the financial year 1995-96, the business had commenced in that year and the assessee was entitled for deduction on account of preliminary expenses to the extent of 1/10th in each of the ten successive years. It is, however, observed that the similar claim ma....... + More
2018 (10) TMI 1114
Scrutiny assessment - Non issuing notice u/s. 143(2) upon the assessee company - validity of assessment u/s 144 - ITO s jurisdiction to assess the corporate entity like the assessee company - transfer of the jurisdiction as contemplated u/s. 127 of the Act to ITO, Wd-6(1), Kolkata - Held that - No notice u/s. 143(2) was issued by ITO, Wd-6(1), Kolkata before completing the assessment. We note that ITO, Wd-34(2), Kolkata did not enjoy the jurisdic....... + More
2018 (10) TMI 1113
Disallowance u/s 14A - no expenditure incurred towards exempted income - Held that - It is settled law that the dissatisfaction as to the claim of the assessee of the amount incurred towards exempted income or no expenditure incurred towards exempted income, is prerequisite for invoking provisions of section 14A(2) read with rule 8D of the Rules. We find that the Ld. CIT(A) in para 4.3.1 of the impugned order has recorded that AO has not given th....... + More
2018 (10) TMI 1112
Transfer pricing - determination of ALP - comparable selection - selection of MAM - application of CUP method as against TNMM - R&D activities and and providing related engineering and technical support and services - determining the arm s length price ( ALP ) of the Appellant s international transactions pertaining to payment of management cost contributions (after allowing network administration costs) to its Associated Enterprise (AE) - TP doc....... + More
2018 (10) TMI 1111
Addition on account of interest earned in surplus funds parked with banks - treating it as income from other sources OR to be treated as capital receipt and reduced from the cost of per-operative expenses accordingly - Held that - Since the assessee in instant case is not free to use the funds for any purpose except TCB project and since there is no allegation that any part of fund has been used for any other purposes and since no addition was ma....... + More
2018 (10) TMI 1110
Profit earned on sale of agricultural land - Taxing the gain arising on transfer of agricultural land as claimed as exempt - lower authorities for treating profit on sale of plot of land as business income - Held that - From the record we found that six plots of agriculture land was bought by the assessee with eight other persons. These plots of land were held for lease by owner and thereafter sold and profit accruing there on was claimed as exem....... + More
2018 (10) TMI 1109
Deduction u/s 10AA - whether or not trading activity as carried out by the assessee during impugned AY would constitute service in terms of Section 10AA so as to enable him to claim deduction under the said Section? - Held that - In M/S GITANJALI EXPORTS CORPORATION LIMITED VERSUS ADCIT-5 (1) , MUMBAI AND VICE-VERSA 2013 (5) TMI 922 - ITAT MUMBAI Tribunal has taken a consistent view that keeping in view the over-riding effect of the provisions of....... + More
2018 (10) TMI 1108
Disallowance of the depreciation on data acquisition and incidental services, general and administration expenses and head office expenses - DRP declined to interfere with the action of the AO on the ground that similar disallowance was made by the AO in respect of AY 2007-08, 2008-09 and 2-009-10 and was upheld by the learned DRP and, therefore, rule of consistency demands that the said view - Held that - In assessee s own case for the AYs 2009-....... + More
2018 (10) TMI 1107
Business expenditure and claim of depreciation - disallowance on the ground that assessee has not carried out business activities. - CIT(A) also rejected the assessee s alternate claim that the expenses were allowable U/s 57(iii) - Assessee submitted that the Ld. CIT(A) had decided the identical issues regarding allowability of business expenses and regarding allowability of depreciation in favour of the assessee for Assessment Year 2013-14; whic....... + More
2018 (10) TMI 1106
Disallowing bank guarantee expenses u/s 37(1) - CIT-A treating the same as capital in nature - Held that - We note that the authorities below erred in not allowing the deduction of the commission expenses either as revenue or in the form of depreciation. The expenditure is treated as capital in nature if there arises some fixed assets out of such expenditure but it is not so in the case before us. - Once, the assessee has incurred any expense in ....... + More
2018 (10) TMI 1105
Deduction u/s 10B - Treating the interest income from GEB as Business Income OR Income from other sources - Held that - Refering to the case of CIT AND DCIT, BANGALORE VERSUS M/S MOTOROLA INDIA ELECTRONICS PVT LTD 2014 (1) TMI 1235 - KARNATAKA HIGH COURT the provisions of section 10B(4) of the Act mandates to claim the deduction for the profit of the business of the undertaking registered as 100% EOU. Therefore, the profit earned in the form of i....... + More
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