- 2022 (1) TMI 900 - BOMBAY HIGH COURT
Reopening of assessment u/s 147 - Reopening on the basis of the audit objections - HELD THAT:- Reopening is made on the basis of the objections received from the revenue audit cell, usually referred as audit objections. Identical objection, as raised in the reasons for reopening, was raised and communicated to Petitioner on 14.03.2019. Petitioner, in response to the audit queries, had provided clarifications to the Assessing Officer. It is a well laid down principle that the re-assessment proceedings initiated merely on the basis of the audit objections are illegal and not valid in law and as such re-assessment proceedings have been repeatedly again quashed and set aside by the Courts. See INDIAN AND EASTERN NEWSPAPER SOCIETY [1979 (8) TMI 1 - SUPREME COURT], JAGAT JAYANTILAL PARIKH [2013 (5) TMI 330 - GUJARAT HIGH COURT] and ICICI HOME F....... + More
- 2022 (1) TMI 899 - MADRAS HIGH COURT
Undisclosed income of the assessee for the purpose of Chapter XIV B of the Income Tax Act - search as well as survey and initiation of the proceedings under section 158BC read with section 158BD - assessment proceedings by determining the total and undisclosed income of the assessee - assessee is aggrieved by the addition made towards certain outstanding credits over a period of time payable to the dealers which amounts were treated as income under Section 41(1) - HELD THAT:- Admittedly, the assessee filed their return only after the conduct of search. Based on the same, the assessing officer computed the total and undisclosed income and made additions for the block period. In such circumstances, the assessee ought to have rebutted the same by giving cogent and reliable evidence, whereas they failed to do so. Therefore, they cannot be per....... + More
- 2022 (1) TMI 898 - CALCUTTA HIGH COURT
Exemption u/s 11 - cancellation of registration u/s 12AA(3) - CIT(E) concluded that that the activities of the trust are not genuine and they are not being carried out in accordance with the declared objects as contained in the deed of trust - ITAT set aside order for cancellation of registration holding that the assessee trust was not engaged any money laundering activity - HELD THAT:- We find that the entire issue involved in this appeal is factual. As rightly pointed out by the Tribunal the CIT(E) has not brought on record any statement made by the said Mr. Lahiri which is adverse to the interest of the assessee trust. That apart, there was no document or material available with the CIT(E) to hold that the assessee had given donation to the Batanagar Education and Research Trust during the relevant year in question, namely, assessment ....... + More
- 2022 (1) TMI 897 - BOMBAY HIGH COURT
Validity of order passed under Section 143(3) read with Section 144-B - denial of natural justice - principal ground of challenge as raised to the assessment order is based on the breach and non-compliance of the principles of natural justice inasmuch as there was no proper and sufficient opportunity granted to the petitioner to respond to the show cause notice issued in that regard by the respondent no.1 -.HELD THAT:- Despite the petitioner responding to the show cause notice much prior to issuance of the assessment order, there is no consideration of the reply given by the petitioner to the show cause notice. A mere statement now in the affidavit in reply that the petitioner’s response to the show cause notice did not contain any new or material fact cannot be accepted as such reason/consideration is not found in the impugned asse....... + More
- 2022 (1) TMI 896 - BOMBAY HIGH COURT
Validity of Reopening of assessment u/s 147 - notice beyond the period of four years from the end of the relevant assessment year - reliance on audit observation sheet - set-off of business loss and unabsorbed depreciation pertaining to Times Now business, which was demerged from Times Global Broadcasting Company Limited - HELD THAT:- This Court in Ananta Landmark (P) Limited Vs. Deputy Commissioner of Income-tax [2021 (10) TMI 71 - BOMBAY HIGH COURT] has relied upon Indian and Eastern Newspaper Society Vs. Commissioner of Income Tax [1979 (8) TMI 1 - SUPREME COURT] where the Court held that in every case, the Income Tax Officer must determine for himself what is the effect and consequence of the law mentioned in the audit note and whether in consequence of the law which has come to his notice he can reasonably believe that income had esc....... + More
- 2022 (1) TMI 895 - RAJASTHAN HIGH COURT
Extension of time limit for filing returns and furnishing tax audit reports - PIL filed by the Tax Bar Association of Jodhpur pointing out various difficulties faced by the assessee on account of the official portal of the income tax department having various glitches - prayer made was to issue direction to the CBDT to extend such time limit up to 15.02.2022 in exercise of the power under Section 119 - HELD THAT:- Presumably, these extensions are granted because the Government of India had realized that on account of technical difficulties, several assesses may not have been in a position to make the compliances. There is nothing for us to presume that the administration is not cognizable of such defects and that proper steps for removing of such defects would be taken so that the extension of last date for compliances does not remain ill....... + More
- 2022 (1) TMI 894 - ITAT CHENNAI
Reopening of assessment u/s 147 - expenses claimed on account of repair to kitchen equipments as capital in nature instead of revenue as claimed by the assessee - Notice beyond period of four years - HELD THAT:- As gone through the reasons recorded and noted that the AO has taken the reasons mainly from the audited accounts and the claim made by the assessee of expenses from the computation of income. As gone through the reasons and noted that there is no charge levied by the AO that there is any failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the relevant assessment year 2009-10. Rather, recording of reason clearly states that the assessee has disclosed this fact in the return of income and computation of income as well as during the course of original assessment proceed....... + More
- 2022 (1) TMI 893 - ITAT MUMBAI
Revision u/s 263 by CIT - reopening of assessment u/s 147 on Short assessment of Short Term Capital Gain - AO accepted the assessee's computation without invoking the provision of section 50C - first objection of the assessee that notice u/s. 263 is beyond time - HELD THAT:- Objection of the assessee that notice u/s. 263 is beyond time is not sustainable in view of the fact that due to COVID, pandemic time barring dates were extended. This has been duly dealt with by the Ld.CIT in his order. Ld. Counsel of the assessee could not cogently rebut that time barring dates stood extended in view of the pandemic as observed by Ld.CIT. Hence, this objection by the assessee stands dismissed. Merits of the case AO accepted the assessee's computation without invoking the provision of section 50C - assessees has submitted that issue of 50C wa....... + More
- 2022 (1) TMI 892 - ITAT PUNE
Revision u/s 263 by CIT - Unexplained cash deposits - as per CIT addition in the assessment order was charged to tax at normal rate which actually as unexplained cash deposit, which was required to be taxed u/s 69 as unexplained investment in view of the insertion of section 115BBE(1) by the Finance Act, 2012 w.e.f. 01.04.2013, any income referred to in section 68, 69, 69A, 69B, 69C & 69D was required to be taxed at the rate of 30% (flat rate) and no other deduction is allowed to the assessee against such income - HELD THAT:- both assessee and her husband are super senior citizens belonging to respectable social and economical background. It has been narrated specifically that because of old age, health ailments they have liquid funds/cash at their disposal to meet any urgent medical contingencies. That even the assessee’s husba....... + More
- 2022 (1) TMI 891 - ITAT DELHI
Correct head of income - assessment of interest income as income from other sources or business income claimed by the assessee - HELD THAT:- The decision to invest the idle fund lying with the assessee in fixed deposit has to be accepted as a decision taken by a prudent businessman keeping in view the commercial expediency. It is not disputed that the assessee has temporarily parked its business fund in short term deposits varying between 3-9 months. When the need arises, assessee encashes the fixed deposits and utilises the funds for its business purpose. In the aforesaid scenario. it can not be said that the interest income is not inextricably linked with the business of the assessee. Therefore, in our view, the interest income earned on fixed deposits has to be treated as business income of the assessee. That being the case, it has to ....... + More
- 2022 (1) TMI 890 - ITAT MUMBAI
Exemption u/s. 11 denied - violation of provisions of section 36A(3) of the Bombay Public Trust Act, 1950 - activities are illegal and non-genuine and/or not in accordance with the objects - AO treated the assessee trust as an Association of person denying exemption u/s 11 of the Act and thereafter applying provisions of Section 145 (3) and rejected the books of account - admission of additional evidences by the LD CIT (A) - HELD THAT:- In the remand report, objecting to the admission of the additional evidence merely stated that the assessee was given an opportunity from January 2015 to substantiate claims but assessee did not submit the same till the conclusion of reassessment proceedings in the month of March. We find that the show cause notice was issued to the assessee only on 13.03.2015, which was replied by the assessee on 23.03.20....... + More
- 2022 (1) TMI 889 - ITAT MUMBAI
Penalty u/s. 271(1)(c) - Non mentioning of specific charge - Bogus purchases - HELD THAT:- We find that in this case the penalty notice does not identify the charge against the assessee as to whether the notice is meant for the charge against the assessee of furnishing inaccurate particulars of income or concealment of income warranting levy of penalty u/s. 271(1)(c) of the I.T.Act. . As relying on Mohammed Farhan A. Shaikh [2021 (3) TMI 608 - BOMBAY HIGH COURT] we find that the notice in this also is an omnibus show-cause notice as it does not strike off/delete the inappropriate/irrelevant/not applicable portion. Such a generic notice betrays a nonapplication of mind. Hence, the penalty levied pursuant to such a notice is not legally sustainable in law. Hence following the aforesaid precedent from the Full Bench of the Hon'ble Jurisd....... + More
- 2022 (1) TMI 888 - ITAT MUMBAI
Deduction u/s 80P - main provision contained in section 80P(1) and (2) specifically excludes only co-operative banks, which are co-operative societies who must possess a license from the RBI to do banking business - HELD THAT:- We find that it is nobody’s case that the assessee society has received interest from a co-operative bank, which is having the license from RBI. In this view of the matter, the issue is squarely covered in favor of the assessee by the aforesaid decision of Hon’ble Supreme Court in THE MAVILAYI SERVICE COOPERATIVE BANK LTD. & ORS. VERSUS COMMISSIONER OF INCOME TAX, CALICUT & ANR. [2021 (1) TMI 488 - SUPREME COURT] - Decided against revenue.
- 2022 (1) TMI 887 - ITAT PUNE
Penalty u/s. 271FA - Maintainability of assessee appeal against penalty levy before the Tribunal - assessee did not file the Statement of Financial Transactions (SFT) u/s. 285BA in respect of the "Specified Transactions" - HELD THAT:- Section 253 of the Act contains a list of the orders appealable before the Tribunal. Sub-section (1) provides for the filing of appeals by the assessee against the orders passed under the specified sections; and sub-section (2) contains a list of the orders appealable by the Revenue. Section 253(1) does not contain an order passed u/s. 271FA. This very issue came up for consideration before the Hon'ble Rajasthan High Court in Sub-Registrar, Suratgarh, District Sri Ganganagar [2013 (2) TMI 911 - RAJASTHAN HIGH COURT] as approved the view taken by the Tribunal in dismissing the appeal against the....... + More
- 2022 (1) TMI 886 - ITAT DELHI
Validity of Assessment u/s 144C - directions of the DRP ignored - AO has repeated the draft assessment order verbatim - HELD THAT:- In the present case, final order of assessment does not incorporate the directions of the DRP and is verbatim repetition of the draft order of assessment. We are of the view that final order of assessment, in conformity with the directions of the DRP, has to be passed within one month from the end of the month in which the directions are issued by the DRP. Since the impugned order is not in conformity with the provisions of section 144C of the Act, the same is to be held as bad in law. We quash the impugned order of assessment. Since the impugned order of assessment is quashed on the ground that the same is not in conformity with the provisions of section 144C of the Act, we are of the view that the other issues raised by the assessee in its grounds of appeal do not require any consideration.
- 2022 (1) TMI 885 - ITAT DELHI
Addition of deemed dividend u/s 2(22)(e) - proof of incriminating material found in the course of search - loan or advance received by the assessee from the partnership firm instead of closely held company - HELD THAT:- It is noted that in order to attract the fiction of section 2(22(e), it is essential that the elements of that section must be found applicable. Since section 2(22)(e) treats the loan or advance as dividend, hence it is essential to give a strict interpretation to such fiction.We have gone through section 2(22)(e) and the facts of the present case. There is no loan or advance received by the assessee from M/s Orient Crafts Ltd. It is seen that even as per the case of the A.O. made in the assessment order, the loan or advance has been received by the assessee from M/s SKA Enterprises which was a partnership firm. Therefore,....... + More
- 2022 (1) TMI 884 - ITAT PUNE
Penalty u/s. 271B - absence of auditing u/s. 44AB - assessee contended before the authorities below that it had maintained proper books of account as prescribed under the provisions of Maharashtra Cooperative Societies Act, 1960 which were duly audited as per the provisions of that Act - HELD THAT:- Section 271B requiring imposition of penalty for failure to get the accounts audited u/s. 44AB, is covered u/s. 273B, which, in turn, prescribes that no penalty shall be imposed if reasonable cause for the failure is established. We are confronted with a case of a Cooperative Society dealing with small farmers having turnover of less than ₹ 1.00 crore with the exclusion of the amount of grant-in-aid. The very fact that the assessee got its accounts audited under the Cooperative Societies Act prima facie shows that it entertained a bona f....... + More
- 2022 (1) TMI 883 - ITAT DELHI
Denial of registration u/s. 12AA(1)(b) r.w.s. 12A - main activities of the assessee includes "Providing valuers course" to create skilled registered valuers in the country - assessee has failed to respond to the requirements of the CIT(E) to enable him to appreciate the relevant facts for the purposes of registration - as submitted that the registration sought under section 12AA could not be denied to the assessee where on similar facts, various other organizations like ICAI registered valuers organization, Indian Institute of Insolvency Professionals of ICAI, ICSI Insolvency Professional agency, Practising Valuers Association of India carrying similar objects as that of assessee, have been duly granted registration - HELD THAT:- As simultaneously noticed that the assessee has filed certain replies IN DAK before the CIT(E). On a....... + More
- 2022 (1) TMI 882 - ITAT DELHI
Addition to the taxable income of the assessee trust - proof of investment under section 11(5) of accumulative profits under section 11(2) was not admitted as additional evidence under Rule 46A of the I.T. Rules 1962 - HELD THAT:- The dispute raised in the present appeal requires to be remitted back to the AO. The assessment in the instant case was made u/s. 144 of the Act. The assessee has failed to furnish the proof of evidence of amount accumulated under section 11(2) as per the objects prescribed u/s. 11(5) of the Act before the AO. The AO has, therefore, denied the benefit of accumulated available for exemption u/s. 11 of the Act. The CIT(A) has also refused to admit the additional evidence to demonstrate the compliance of section 11(5) for the purpose of availment of benefits under section 11(2) of the Act without properly weighing ....... + More
- 2022 (1) TMI 881 - ITAT HYDERABAD
Addition u/s 14A - Assessee's former substantive ground that it has not derived any exempt income in the impugned assessment year so as to set section 14A r.w. Rule 8D in motion - HELD THAT:- Case Law Cheminvest Ltd. [2015 (9) TMI 238 - DELHI HIGH COURT], CIT Vs. Corrtech Energy Pvt. Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] and CIT Vs. CIT Vs. Chettinad Logistics Pvt. Limited. [2017 (4) TMI 298 - MADRAS HIGH COURT] holds that the impugned disallowance is attracted only in case an assessee derives exempt income and not otherwise. We thus accept the assessee's instant former substantive grounds for this precise reason alone and make it clear that it shall be very much open for the Assessing Officer to examine the issue afresh in the year of the assessee's deriving actual exempt income in light of all the corresponding financ....... + More
