- 2021 (3) TMI 239 - DELHI HIGH COURT
Addition u/s 56(2)(vii)(b) - projection/estimated figures as presented in the valuation report - Assessee has received share premium from various subscribers/equity partners - Determination of fair market values as per prescribed methodology - Cash Flow projections taken into account in the Discounted Cash Flow Method by the assessee are nothing but paper plans that have no relation with the reality - AO analysed the business profitability of the Respondent-Assessee only to the extent that such profitability was not commensurate with the actual financials provided by the Respondent-Assessee during the course of assessment proceedings - whether the AO after invoking the deeming provision under Section 56(2)(viib), could have determined the FMV of the premium on the shares issued at nil after rejecting the valuation report given by the Char....... + More
- 2021 (3) TMI 193 - MADRAS HIGH COURT
Reopening of assessment u/s 147 - TDS u/s 195 - payments made to non-residents under the voyage agreements - Non deduction of TDS - reopening after four years - Addition u/s 40(a)(i) - petitioner had made payments to the owners of the ship/liners under the Bare Boat Charter Cum Demise (BBCD), Voyage Charter and Time Charter to M/s.Dolphin Maritime Inc., Cyprus and to few others under Voyage Charter - HELD THAT:- In this case, at the time of assessment, for the Assessment Year 2004-05 the details were called for from the petitioner vide notice dated 17.8.2006 issued u/s 143 (2)/142 (1) of the Income Tax Act, 1961. In its reply dated 30.8.2006, the petitioner declared that it had paid a total sum as freight. During assessment, only a sum of ₹ 6,08,98,646/-from the aforesaid amount was disallowed under Section 40(a)(1) of the Income Ta....... + More
- 2021 (3) TMI 191 - MADRAS HIGH COURT
Depreciation on the windmills - as per revenue wind mills had not generated any electricity during the previous year and thus there was no user of the asset for the purpose of the business of generation of power - ITAT allowed the claim - HELD THAT:- Issue involved in the present appeal is covered by the decisions of M/s. Tenzing Match Works, Sivakasi [2019 (7) TMI 1047 - MADRAS HIGH COURT] stating even trial production machineries kept ready for use etc., were considered to be used for the purpose of business to qualify for depreciation and further held that it would amount to passive use and would qualify for depreciation.- Decided in favour of assessee.
- 2021 (3) TMI 188 - BOMBAY HIGH COURT
Reopening of assessment u/s 147 - reasons to believe - HELD THAT:- As the Tribunal has rightly noted, the jurisdiction for the Assessing Officer to resort to Section 147 of the Income Tax Act is crystallized in the Reasons supplied. The Tribunal has rightly, observed that the Reasons only referred to a need to verify the documents and there is no link between the statement that there is a reason to believe that income as escaped assessment with the rest of the Reasons supplied. It is not permissible, as rightly noted by the Tribunal, to add to the Reasons. The contention that there was an information received was not included in the Reasons. The Tribunal has followed the decision of the Jurisdictional High Court in the case of Nivi Trading Limited [2015 (4) TMI 411 - BOMBAY HIGH COURT]. If the Tribunal in these facts and circumstances has....... + More
- 2021 (3) TMI 183 - MADRAS HIGH COURT
Deduction u/s 10B - assessee had utilised the export profits in U.S.A. for the purpose of carrying on export activities and AO held that the said amount had not been received in convertible foreign exchange in India within the prescribed time under section 10B(3) and the said amount could not be treated as part of export turnover for the purpose of computation of deduction under section 10B - AO held that the RBI's Guideline for remittance under the FEMA was not applicable in interpreting the term "export turnover" as defined in section 10B - HELD THAT:- The issue involved in the present appeals had already been decided by this Court in Commissioner of Income Tax-I,Chennai v. M/s.Tata Consultancy Services Ltd., Chennai] [2021 (2) TMI 988 - MADRAS HIGH COURT] wherein this Bench, following the Judgment M/S MPHASIS LTD. (FORMER....... + More
- 2021 (3) TMI 181 - MADRAS HIGH COURT
Revision u/s 263 - immovable property were not verified and that there were huge unsecured loans, were not properly enquired by the Assessing Officer - HELD THAT:- Tribunal observed that complete details were filed in the form of confirmation letters before the Assessing Office and he has examined and investigated the same in its correct perspective. The Tribunal found no error in the assessment order and also found that the CIT lacks jurisdiction to revise the assessment order in question. Ultimately, the Tribunal set aside the order passed by the CIT un/s 263 and restored the order passed by the Assessing Officer. On a perusal of the order passed by the Tribunal, it is clear that the Tribunal has categorically held that the order passed by CIT is based on no reason and he has simply given an abrupt finding that the assessment order is e....... + More
- 2021 (3) TMI 177 - MADRAS HIGH COURT
Exemption u/s 10(21) - said provision mandates exemption only to the association and not to the institutions - assessee pointed out that they are notified as engaged in scientific research within the meaning of Section 35(1)(ii) of the Act and they have been claiming exemption under Section 10(21) ever since its inception from 1987 and the claim has been accepted by the Department consistently - Tribunal allowed exemption - HELD THAT:- Tribunal rightly took note of the objectives of the assessee and their activities, which have been carried out ever since their inception in the year 1987. They are engaged in the research work in agricultural related activities and it is recognized as a leading nationally acclaimed society engaged in the field of research in Bio- Technology and Toxicology and they undertake various aspects including resear....... + More
- 2021 (3) TMI 176 - MADRAS HIGH COURT
Disallowance u/s 14A r.w.r. 8D - ITAT deleted the addition made holding that disallowances made u/s 14A cannot exceed the exempt income - whether ITAT is right in not appreciating the CBDT Circular No. 5/2014 wherein it's clarified that, disallowance u/s 14A r.w.r 8D has to be made even if the tax payer in a particular year not earned any exempt income? - HELD THAT:- Substantial questions of law raised by the Revenue in these appeals have been decided against the Revenue in M/s.Tidel Park Limited.[2020 (7) TMI 339 - MADRAS HIGH COURT] AO must, in the first instance, determine whether the claim of the assessee in that regard is correct and the determination must be made having regard to the accounts of the assessee. The satisfaction of the AO must be arrived at on an objective basis. It is only when the AO is not satisfied with the cla....... + More
- 2021 (3) TMI 172 - MADRAS HIGH COURT
Penalty u/s 271 FA - failure to file annual information report under subsection 285 BA of the Income Tax Act, 1961 - petitioners have challenged the impugned order before passing the impugned order, mandatory notice contemplated under section 285 BA (5) was not issued to them and that the penalty was imposed by the respondents directly by passing the mandatory requirement of the aforesaid provision - HELD THAT:- A show cause notice dated 8.9.2010 which in turn states that earlier another notice dated 30.3.2010 was issued to the petitioners and since the petitioners failed to furnish annual information report in time, the show cause notice was being issued to the petitioners to show cause as to why penalty under section 271 FA of the Income Tax Act, 1961 should not be imposed on the petitioners. Copy of notices dated 30.3.2010 have not bee....... + More
- 2021 (3) TMI 127 - KERALA HIGH COURT
Waiver of Interest - Whether an Assessee defaulter of payment of demand raised as per the assessment order can claim waiver u/s 220(2A) - Assessment u/s 153A / 153C - HELD THAT:- Section 234A to C deals with charging of interest for default of furnishing return of income, payment of advance tax and interest on the deferment of the advance tax. The aforementioned proceedings have not been disputed by the petitioner except the modification in the appeal, preferred, against the assessment order. The demand of interest raised by the revenue was in accordance with the statutory provisions of the Act, which the petitioner failed to countenance with any direct and cogent evidence, except bald and vague plea of hardships.From the cumulative reading of the contents of the applications it is revealed that the applications were filed at the drop of ....... + More
- 2021 (3) TMI 90 - KERALA HIGH COURT
Settlement of cases - Application of petitioner under Section 245C - grievance of petitioner against not granting interim stay while granting statutory right available to an assessee to move for settlement of cases under Chapter XIX-A - Order of Single Judge Bench - HELD THAT:- As rightly argued by Senior Advocate Aravind P Datar the consideration of stay vis-a- vis Exts.P1 and P2 by this Court would not also cause prejudice or hardship to the Department, in view of Section 153B explanation (i). At this junction Exts.P1 and P2 result in assessment orders, then the claim or right of petitioner is adversely affected. Department, as on date, has not challenged the order of learned Single Judge directing receipt of application of petitioner under Section 245C of the Act - objections raised by Advocate P.K.R. Menon appearing for the Department....... + More
- 2021 (3) TMI 87 - JHARKHAND HIGH COURT
Validity of seizure / requisition by income tax authority - assessment proceedings initiated by the jurisdictional Assessing Officer at Kolkata - HELD THAT:- Assessment proceedings have been opened before the jurisdictional Assessing Officer of the petitioner at Kolkata in respect of the seized money. The proceedings would lead to a conclusion as to whether petitioner or any other person is its rightful claimant. This Court in writ jurisdiction is not in a position to determine a question of fact as to whom does the money belong to lawfully. Respondent department has on instructions fairly stated that assessment proceedings would be concluded within a time-frame and if the assessment proceedings leads to a finding that the amount in question falls within the taxable income of a concerned person/assessee and the tax thereupon stands paid o....... + More
- 2021 (3) TMI 86 - JHARKHAND HIGH COURT
Revision u/s 264 in favor of assessee - Additions based on 26AS statement - undisclosed income - Assessee contended that additions made by the AO is not correct as he as not received the amount as alleged by the AO - Lack of proper inquiry by the Commissioner, IT in respect of the payments allegedly made by the three concerns, while rejecting the application - HELD THAT:- Petitioner has not made any complaint at any stage regarding any fictitious or wrong entries in the 26AS statement reflecting tax deduction at source against receipt of payments from these three concerns. It further appears that the assessing officer had undertaken inquiries from these three concerns who confirmed the payments made to the petitioner during the financial year 2010-11. Since the petitioner's books of account were not maintained or audited and the recei....... + More
- 2021 (3) TMI 83 - MADRAS HIGH COURT
Exemption u/s 11 - registration filed under Section 12 AA and approval under Section 80G(5) denied - as per CIT-A Trust is not genuine and they are not engaged in any charitable activities - Tribunal setting aside the order of the Commissioner of Income Tax and direct the Commissioner of Income Tax to grant registration under Section 12AA - HELD THAT:- It is not in dispute that the Trust was constituted on 09.02.2009 whereas they sought for registration and approval on 09.06.2009 under Section 12AA and 80G(5) of the Income Tax Act respectively. The CIT, while rejecting the registration and approval, found that it was too early to give a finding with regard to the genuineness of the objects of the Trust for the reason that the activities were not commenced on the date of application. When the genuineness of the objects of the Trust were no....... + More
- 2021 (3) TMI 80 - KARNATAKA HIGH COURT
Constitutional validity of Section 206AA - Requirement to furnish Permanent Account Number (PAN) - Applicability for the person having non-taxable income - Single Judge while dealing with a challenge to the constitutional validity of Section 206AA held that it is inapplicable to the persons whose income is less than taxable limit as per Finance Act, 1991 and the Banking and Financial Institutions shall not invariably insist upon Permanent Account Number (PAN) from small investors like respondent Nos.1 to 3 as well as from persons who intend to open an account in a Bank or Financial Institution HELD THAT:- Section 206AA of the Act is enacted as a measure to prevent the tax evasion. The Government of India is trying to eliminate circulation of unaccounted money and is intending to set up a database which contains and monitor all the transac....... + More
- 2021 (3) TMI 57 - MADHYA PRADESH HIGH COURT
Valuation proceedings u/s 142A - estimation of value of assets by Valuation Officer - period of limitationas contemplated in Section 142 A (6) of the Act of 1961 wherein six months period has been prescribed for Valuation Officer to submit valuation report to the Assessing Officer - HELD THAT:- Section 250(5) of the Act of 1961 enlarges the scope of hearing of appeal because Commissioner may allow the appellant to go into any ground of appeal not specified in the grounds of appeal, if Commissioner is satisfied that omission of that ground from the form of appeal was not willful or unreasonable. Some how similar spirit is echoed in Explanation of sub-section (2) of Section 251 of the Act of 1961, therefore, wide powers are available to the Commissioner (Appeals) as appellate authority. Exercising such power, Commissioner (Appeals) directed....... + More
- 2021 (3) TMI 56 - GUJARAT HIGH COURT
Reopening of assessment u/s 147 - disallowance u/s 14A - Reopening after four years - HELD THAT:- All the material facts relating to Section 14(A) of the Act were before the Assessing Officer during the course of the original assessment and now, he could not reopen the assessment after 4 years where there is no failure on the part of the assessee to disclose fully and truly all the facts necessary for assessment. It is settled by the Apex Court in the case of CIT Delhi Vs. Kelvinator of India Limited. [2010 (1) TMI 11 - SUPREME COURT] that the existence of tangible material is essential to safeguard against the arbitrarily exercised of power. Therefore, as discussed above, at the time of recording the reasons, there were no fresh materials on which the Assessing Officer could have formed a requisite belief with regard to the escapement of....... + More
- 2021 (3) TMI 55 - GUJARAT HIGH COURT
Reopening of assessment u/s 147 - material before the assessing Officer to reopen the assessment or not ? - borrowed satisfaction or independent application of mind by AO - HELD THAT:- AO has initiated the proceedings not only on the basis of the information received from the concerned Department, but based upon his independent satisfaction and other available materials to form a belief with regard to the escaped assessment of income. The reasons recorded further establish that, the prop. of R S enterprise is the husband of Smt. Harshaben Gosai having financial transactions with the R.S Enterprise and Marshal Enterprise and all these entities including JK enterprise and P M & Co. have no business activities and were managed to provide accommodation entries and routed the money through bank transactions showing the transactions as sale....... + More
- 2021 (3) TMI 8 - DELHI HIGH COURT
Assessment u/s 153A - Bogus LTCG - statement recorded in search action against a third person - whether a statement under Section 132(4) constitutes incriminating material for carrying out assessment under S. 153(A) ? - ITAT deleted the addition - HELD THAT:- A reading of the impugned order reveals that the statement of Mr. Jindal recorded under Section 132(4) forms the foundation of the assessment carried out under Section 153A of the Act. That statement alone cannot justify the additions made by the AO. Even if we accept the argument of the Revenue that the failure to cross-examine the witness did not prejudice the assessee, yet, we discern from the record that apart from the statement of Mr. Jindal, Revenue has failed to produce any corroborative material to justify the additions. On the contrary we also note that during the course of ....... + More
- 2021 (2) TMI 1162 - MADRAS HIGH COURT
Reopening of assessment u/s 147 - Disallowance of non - compete fees - Whether amount incurred towards a sum under two agreements to the two companies was towards non - compete fees for a short period and therefore were in the nature of a revenue expenditure? - HELD THAT:- As earlier a collaboration agreement dated 07.11.1977 was entered into between the petitioner and the Chicago Pneumatic Tool Company which had granted a license and know how to manufacture and sell the specified products which was being transferred permanently. Clause 2.4 which has been extracted above also seems to indicate that the license granted by the Chicago Pneumatic Tool Company to the petitioner was perpetual and that the petitioner was free to license the right to manufacture and sell the specified products and to disclose, impart and supply the know how recei....... + More
