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2014 (6) TMI 1077
Validity of order passed u/s 144C (13) - gross violation of the principle of natural justice - As per assessee order of DRP as passed in the absence of non appreciation of arguments, evidence in support of assessee s claim as agitated before the Panel - HELD THAT:- According to us, the order of TPO may be upheld in case the arguments of AR before DRP are same as before the TPO. In case before us, the fact is otherwise as the assessee has raised further arguments, gave further evidence before the DRP. In such a situation, upholding the order of....... + More
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2014 (6) TMI 1076
TP Adjustment - comparable selection - Functional dissimilarity - HELD THAT:- Deselection of companies as functionally dissimilar with that of assessee as engaged in rendering market research and related Information Technology Enabled Services (ITES) for domestic and international clients. Assessee s Offshore Research Service Centre (ORSC) is registered with Software Technology Park of India and provides ITES to its group companies. Consideration of management fees disallowed in computation of operating margin - We are of the view that when th....... + More
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2014 (6) TMI 1073
Applicability of Section 28 (iv) - Assessee received payment by various cheques for assigning development rights, balance sum was not received in terms of the Memorandum of Understanding, but did not make any payment, it did not come forward to complete the transaction either - Assessee did not show this amount of as income - HELD THAT:- The circumstances in which the Memorandum of Understanding was executed, the sum received have been noted. The property in question was shown as reserved in the development plan by Kalyan Dombivali Municipal C....... + More
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2014 (6) TMI 1071
Set off of business loss earned from F O trading activity - Denial of benefit of loss or deduction merely on the ground that the assessee has not claimed the same in the return of income - HELD THAT:- As in an assessment, AO is to compute total income of the assessee as per the provisions of the Income Tax Act. If any loss actually suffered by the assessee or any deduction which is legally allowable to the assessee and in relation to which all the details are available before the AO at the time of the assessment, then such loss or deduction is....... + More
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2014 (6) TMI 1068
Exemption u/s 11 - whether interest free loan given to M/s. SPK MAC Charitable Trust is in violation of section 11(5) or 13(1)(d) or 13(1)(c) and held that there is no such violation and sustained the order of Commissioner of Income Tax (Appeals) in allowing the claim of the assessee u/s 11 ? - HELD THAT:- Perused orders of lower authorities and the decision of this Tribunal relied on and find that the issue in appeal has been decided in favour of the assessee in assessee s own case for the assessment year 2008-09 [ 2013 (8) TMI 1166 - ITAT CH....... + More
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2014 (6) TMI 1067
Disallowing the Interest paid to bank on notional basis being the amount Used by one of the partners - nexus between the withdrawals by Partner and usage of borrowed funds - AO noted that Partner had used borrowed funds for his personal use by withdrawing capital from firm s funds and interest on the said borrowed capital used for personal purpose by way of withdrawal by Shri Kanwal Khurana, partner was disallowed - case of the revenue was that the interest bearing funds were used by the assessee to advance interest free funds to one of the pa....... + More
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2014 (6) TMI 1063
Deduction u/s 43B - disallowance of prior period interest expenses as payable to public financial institutions/ Governmental bodies - HELD THAT:- We are not in agreement with the Commissioner of Income Tax (Appeals) as prior period interest was paid by the assessee to the Government of Tamil Nadu and Government of Tamil Nadu is not a public financial institution / governmental body which comes under the provisions of section 43B of the Act. The co-ordinate Bench of this Tribunal in the case of The Kallakurichi Co-op. Sugar Mills Ltd. (supra) o....... + More
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2014 (6) TMI 1062
Addition u/s 43B - interest payable, which was not paid during the year - interest payable to the Government of Tamilnadu and M/s Infrastructure Leasing and Financial Services - stand taken by the Revenue is that the interest to be paid by the assessee had not been crystallized in the year under consideration - HELD THAT:- We find that the issue involved in this appeal has already been considered by the Tribunal in assessee s own case for the assessment year 2008-09 [ 2012 (8) TMI 1202 - ITAT CHENNA ] admittedly, neither the Government of Tami....... + More
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2014 (6) TMI 1060
Deduction u/s. 80 IB(10) - approval of the local authority was obtained on 28.11.1992 i.e. much before 01.10.1998 - AO disallowed the deduction on the ground that the project was started by commencement certificated dated 28th November, 1992 issued to M/s. Gas Property Developers, therefore, the assessee does not fulfilled the conditions laid down in section 80IB(10) according to which for being eligible for deduction under section 80IB(10) the project must have to be started on or after 1st October, 1998 - HELD THAT:- Number of no objection c....... + More
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2014 (6) TMI 1057
Deduction u/s 80P(2)(a)(i) - Assessee is a Cooperative Society - HELD THAT:- It is not in dispute that the assessee-The Karnataka State Co-Operative Housing Federation Limited is a co-operative society registered under the Act. It is a federal society, the membership of which is open to a co-operative society registered under the Act and not to individuals. However, the proviso makes it clear that if an individual is to be admitted as a member of a Federal Society it could be done as a nominal member. The definition of a Member contained under....... + More
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2014 (6) TMI 1056
Disallowance on account of extraction/rescreening charges - AO found that the explanation offered by the assessee in respect of substantially higher extraction/rescreening charges claimed during the year under consideration was not reliable - there was a substantial difference between the sales and purchases declared by the assessee for the year under consideration showing higher gross profit (GP) rate as compared to the GP rate declared by the assessee in the immediately preceding year - HELD THAT:- Extraction/rescreening charges were paid by....... + More
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2014 (6) TMI 1052
Disallowance of Provision for Bad Doubtful Debts claimed to the extent eligible u/s 36(1) (vii a) - HELD THAT:- As decided in assessee's own case [ 2015 (4) TMI 727 - ITAT BANGALORE] Assessee s method of computation of 10% of the Aggregate Average Advances made by its rural branches computed in the prescribed manner viz., as per Rule 6ABA of the IT Rules, 1962 had not been doubted by the AO and hence the additional grounds raised were held to be not admissible. Tribunal held Sec.36(1)(viia)(a) of the Act, clearly lays down that deduction o....... + More
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2014 (6) TMI 1050
Correct head of income - treatment of interest on FDR s during the construction period - capital receipt or income from other sources - HELD THAT:- We find that the facts of the present case are similar to the facts before the Hon 'ble Supreme Court in Tuticorin Alkali Chemicals Fertilizers Ltd. Vs. CIT[ 1997 (7) TMI 4 - SUPREME COURT ] and applying the ratio laid down by the Hon 'ble Apex Court we hold that the interest earned by the assessee by parking its funds in short term deposits with the bank is assessable as income from other ....... + More
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2014 (6) TMI 1049
Estimation of income - A.O. completed the assessment under section 144 - CIT-A estimated the income at 3% of the gross receipts as against 5% estimated by the A.O. - Revenue argued that CIT(A) gave relief without calling for any remand report from the AO - HELD THAT:- Since the assessee has not furnished any additional evidence, re-appraising the existing fact on the basis of the submissions does not require any remand report. Ld. CIT(A) based his judgment on the basis of available facts on record and also considering the difficulties expresse....... + More
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2014 (6) TMI 1048
Exemption u/s 11 - application of the Assessee for registration u/s 12AA - As per CIT-A as per the objectives stated in the amended constitution, the prime object of the Assessee is to preach and practice, teach and educate the tenets of Christianity in the district of Mayurbhanj, neighbouring districts and states. Therefore, the Trust is basically a religious trust created for the benefit of particular religious community or caste - HELD THAT:- From the Income and Expenditure account which was filed before us, we noted that the Assessee has i....... + More
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2014 (6) TMI 1045
Assessment passed on revised return - revised return was filed beyond time - As per order of assessment framed by the Assessing Authority on the basis of such invalid revised return is a nullity and the Tribunal also held that even if the order of assessment is held to be passed on the original return, it was barred by limitation as it is hit by Section 153 - HELD THAT:- Assessment order was passed not on the basis of the revised return but on the basis of the original return and therefore the amount claimed as exemption was also liable to be ....... + More
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2014 (6) TMI 1044
Exemption u/s 54EC - assessee has invested the sale consideration in REC bonds beyond the prescribed time limit of six months - assessee is 94 years old, a retired army officer AND chartered accountant appearing for the assessee, the assessee fell ill and could not attend the work of depositing the sale consideration in the bonds within the rigidity of the time frame - HELD THAT:- Assessee was prevented from investing his money within the period of six months because of his illness. The assessee was making efforts to locate a suitable house fo....... + More
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2014 (6) TMI 1043
Tax on capital gain - sale of a capital asset as held as a business asset and depreciation was claimed on it - charged at 20% OR at the normal tax rate - computation of capital gain u/s 50 r.w,s 50C - HELD THAT:- We are of the opinion that whenever depreciation is claimed on and assessed it has to be treated as STCG as per the provisions of the Act. But while calculating the tax liability of the assessee as per the provisions of section 112 of the Act the asset has to be taken as long term asset, if same is hold for more than three years by th....... + More
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2014 (6) TMI 1042
Seeking stay of recovery proceedings - garnishee proceedings initiated under s. 226(3) - recovery, which had been lying dormant from June, 2013 was revived just prior to the close of the financial year and recovery effected of the entire amounts demanded under the assessment order - intention of the 3rd respondent was to attach the amounts remaining in the account maintained by the petitioner with the additional 4th respondent-bank; without notice to the assessee - HELD THAT:- Act of withdrawal of the amount after having validly attached the a....... + More
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2014 (6) TMI 1041
Disallowance u/s 14A - as argued entire investment was made in the earlier years by erstwhile Gujarat Electricity Board (GEB) which got de-merged in the immediately preceding year. The assessee was one of the seven de-merged companies thereof - HELD THAT:- Respectfully following the precedent we restore this issue back to the file of the Assessing Officer for adjudication afresh with the same directions as given by the Tribunal in the Assessment Year 2006-07 [ 2013 (9) TMI 1071 - ITAT AHMEDABAD] as held that the investments were in the form of....... + More
