- 2019 (9) TMI 928
Appeals to High Court u/s 260A - Words "the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner" in Section 260A (2) (a) interpretation - whether mean only the 'jurisdictional' Principal or Chief Commissioner of Income-tax (CIT) or could it include any CIT including the CIT (Judicial)? - period of limitation - HELD THAT:- SLP dismissed on the ground of low tax effect. Rest of the matters - Delay condoned. Applications seeking exemption from filing certified copy of the impugned order are allowed.
- 2019 (9) TMI 927
Assessment u/s 153A - allegation of generation of unaccounted money and also transfer of such money in exchange of share capital - proving any accommodation entry - reliance on third party statement - CIT(A), ITAT and HC deleted the additions - HELD THAT:- Delay condoned. The special leave petitions are dismissed.
- 2019 (9) TMI 926
Depreciation on UPS @60% - MAT/115JB applicability On Insurance Companies - MAT computation on Solatium Fund - Commission for receipt of reinsurance - TDS on Survey Fees u/s 195 - fee has been paid for utilizing the expertise of the surveor and therefore, tax has to be deducted at source - HELD THAT:- Applications seeking exemption from filing certified copy of the impugned judgment are allowed. Leave granted. Hearing expedited.
- 2019 (9) TMI 925
Accrual of income - accounting treatment in respect of prepaid cards - Rendering of Services - Income recognition - Accounting standards - amount received on sale of prepaid cards to the extent of unutilized talk time - assessee was engaged in the business of providing basic telecom services in the State of Rajasthan and had both prepaid and postpaid subscribers - HELD THAT:- SLP dismissed.
- 2019 (9) TMI 924
Collection of tax at source (TCS) - Exemption under sub-section (1A) of Section 206C - Profits and gains from the business of trading in alcoholic liquor, forest produce, scrap, etc. - whether the members of the petitioner-association, who are the contractors of Tendu leaves (a forest produce), are entitled to claim exemption under sub-section (1A) of Section 206C from the collection of tax at source from them by the seller, namely, the Forest Department of the State of Maharashtra? - HELD THAT:- It is an integrated process of manufacture or producing bidi in this case, from the processed Tendu leaves, which qualifies for exemption. The placement of the word ‘processing’ in between ‘manufacturing’ and “or producing articles or things” under sub-section (1A) is also significantly indicate such intention ....... + More
- 2019 (9) TMI 923
Claim of refund of interest - excess interest collected u/s.220 along with statutory interest U/s.244A of the Income Tax Act, 1961 - further, seeking compensation for the inordinate delay in granting the refund. - HELD THAT:- The above claim made by the petitioner for refund of the sum is not disputed by the respondents and on the other hand, the respondents seek four weeks time to refund the same, this Writ Petition is disposed of, by recording the above stand taken by the respondents, also with further direction to the respondents to refund the said sum along with appropriate interest within a period of four weeks from the date of receipt of a copy of this order.
- 2019 (9) TMI 922
TP Adjustment - rate of interest on loans given to Associated Enterprises -Tribunal restricting the rate @ LIBOR + 2% instead of 17.22% proposed by the Transfer Pricing Officer - HELD THAT:- It is an agreed position between the parties that the issue raised herein stand concluded against the Revenue and in favour of the Respondent - Assessee. This by the decision of this Court in the case of the same Respondent viz. Principal Commissioner of Income Tax v/s. Manugraph [ 2018 (11) TMI 1693 - BOMBAY HIGH COURT] as following M/S. EVEREST KENTO CYLINDERS LTD. [2015 (5) TMI 395 - BOMBAY HIGH COURT] Nature of expenditure - expenses incurred for DRUPA Exhibition - Germany - revenue or capital expenditure - HELD THAT:- Apex Court in Taparia Tools vs. JCTI [2015 (3) TMI 853 - SUPREME COURT] has held that there is no concept of deferred expenditure ....... + More
- 2019 (9) TMI 921
TP Adjustment - adjustment in respect of the international transaction only and not on the entire sales - Whether the assessee had failed to prove that the margin of profit of the AE transaction is the same as the margin of profit of the non-AE transaction? - HELD THAT:- Transfer Pricing adjustment has to be done only in respect of related party transactions and not on all transactions. See SANDVIK ASIA PVT. LTD., [2018 (5) TMI 262 - BOMBAY HIGH COURT] Exclude Genesys International Corporation Ltd. And Cosmic Global Ltd. from the set of comparables - HELD THAT:- Functionally M/s. Genesys And Cosmic Global Ltd. was different from the Respondent. Therefore, would not be an appropriate comparable. Risk adjustment - HELD THAT:- Tribunal allows the Respondent’s appeal by way of remand to the Assessing Officer to examine the issue of risk....... + More
- 2019 (9) TMI 920
TP Adjustment - average rate of interest of 11.30% during the year - series of debentures issued in different years was a separate international transaction and each transaction was required to be benchmarked separately - HELD THAT:- Tribunal in the impugned judgment has made certain observations suggesting that the identification of the “tested party” is imperative while applying other methods from comparison for transfer pricing and not while applying CUP method. Our non-consideration of the revenue’s Appeal in the present case, should not be seen as putting our seal on such observations of the tribunal. We keep such question open to be examined in an appropriate case. In the present case, independent of such observations of the tribunal, we find that the conclusions arrive at, are based on evidence on record which con....... + More
- 2019 (9) TMI 919
Rectification of mistake u/s 254 - ALP adjustment on “interest on receivables” - HELD THAT:- Tribunal has considered and held that it is an international transaction which needs TP adjustment. Thereafter, the Tribunal has set aside the issue to the file of the TPO to calculate the average collection period of the industry and also to charge interest only on the period beyond the industrial average. We find that the assessee had raised additional grounds of appeal vide letter dated 6.9.2018 and is part of the record in which the assessee is raising a ground that it is a debt free company and that no borrowed funds were utilized to pass on the facility to its AE. Tribunal, inadvertently missed to consider and decide on the admissibility of the additional grounds and if they were to be admitted, to consider the merits of the addi....... + More
- 2019 (9) TMI 918
Deduction as loss on Chit - Whether the Chit discount is capital in nature OR revenue expenditure? - Whether disallowance of Chit loss is sustained, then the income from Chit dividend be also reduced from the income? - Chit income be reduced from the income - net amount v/s gross amount - HELD THAT:- In CIT Vs. Kottayam Cooperative Bank Ltd. [1974 (4) TMI 2 - KERALA HIGH COURT] and also CIT Vs. Merchant Navy Club [1971 (9) TMI 59 - ANDHRA PRADESH HIGH COURT] and ITO Vs. Singh Radio Co. (India) (P.) Ltd. [1991 (7) TMI 144 - ITAT DELHI-D] it was held that the loss incurred in subscribing to chit fund is allowable if funds raised from such chit is utilized for the purpose of business. On this aspect, there is no finding of authorities below. Before us, the assessee has brought certain additional evidences on record in the form of ledger acco....... + More
- 2019 (9) TMI 917
Condonation of delay for filing Rectification u/s 254 - HELD THAT:- We find that u/s 254(2) of the Act, the M.A has to be filed within six months from the end of the month in which the Tribunal has passed the order. The Revenue has filed this M.A almost after 12 months from the date of passing of the order. This Tribunal, in the case of ACIT vs. Gayathri Infra Ventures Ltd [2018 (7) TMI 1917 - ITAT HYDERABAD] has held that the Tribunal does not have the power to condone the delay in filing of the M.A and that the M.A filed beyond the period of six months cannot be entertained The Hon'ble Karnataka High Court in the case of Shri Muni Naga Reddy Vs. ACIT [2018 (8) TMI 1261 - KARNATAKA HIGH COURT] also has held that the Tribunal cannot condone the delay in filing of the Miscellaneous Application u/s 254(2) of the Act. Respectfully following the same, the Miscellaneous Application filed by the Revenue is dismissed.
- 2019 (9) TMI 916
Bogus purchase of timber - As argued that the sellers did not issue any sale bill - HELD THAT:- In our opinion, it is the duty of the assessee to produce all the bills and vouchers in support of purchase entries found in the books of account. In the absence of the details, the Assessing Officer considered it as bogus purchase. Even before us, the assessee was not able to lead any evidence regarding the genuineness of the purchasers, though the burden is on the assessee to prove the genuineness of the transactions. In view of these, we are inclined to confirm the addition made towards bogus purchases. Accordingly, this ground raised by the assessee is dismissed. Addition u/s 40A(3) - cash purchase in excess of ₹ 20,000/- - HELD THAT:- Before us, the assessee filed receipts from parties confirming the receipt of cash payments and also....... + More
- 2019 (9) TMI 915
Benefits of exemption u/s 11 - excessive payment to Doctors by way of salary and professional fees - assessee is a charitable trust registered since 21.11.1977 and is running medical institution (hospital) and also in the imparting of education - assesses trust besides have registered u/s 12AA was also approved u/s 10(23C)(via) is running the hospital in the name of BIMR Hospital and BIMR Heart Centre - HELD THAT:- In the present case, the AO has brought on record the comparable instances of the Gajraja Chikitsa Mahavidhyalay and Chirayu Medical College on record but failed to bring on record expertise , qualification any other factors like seniority competence ,experience, qualification etc. AO has further failed to bring on record the revenue collected by these hospital or a period of three years and what was a salary paid to these doct....... + More
- 2019 (9) TMI 914
Condonation of delay - delay of 1038 days in filing the appeal before the Tribunal - whether the assessee’s failure is sufficient cause for condoning the delay? - Whether 1038 days was excessive or inordinate? - HELD THAT:- When substantial justice and technical consideration are pitted against each other, the cause of substantial justice deserves to be preferred, for the other side cannot claim to have vested right for injustice being done because of non deliberate delay. No counter-affidavit was filed by the Revenue denying the submission made by the assessee. It is not the case of the Revenue that the appeal was not filed deliberately. Therefore, we have to prefer substantial justice rather than technicality in deciding the issue. As observed in MST. KATIJI AND OTHERS [1987 (2) TMI 61 - SUPREME COURT] if the application of the as....... + More
- 2019 (9) TMI 913
Revision u/s 263 - deposits made into the Bank account - HELD THAT:- Since the AO while framing the original assessment, had considered the entire material, was satisfied with the above factual aspect and thereafter, estimated the income of the assessee at 10% and made an addition of ₹ 9,50,000/-. AO had taken one possible view where two views are possible. When the PCIT does not agree, the assessment cannot be treated as erroneous in so far as it is prejudicial to the interests of the Revenue, since the view taken by the AO is not unsustainable in law. When an Assessing Officer adopts one of the courses permissible in law which results in loss of revenue or where two views are possible and the Assessing Officer has taken one view with which the PCIT/Commissioner does not agree, the assessment order cannot be treated as erroneous or....... + More
- 2019 (9) TMI 912
Computation of deduction u/s 10A - STP Unit and not a SEZ unit - AO has reduced the amount from the export turnover but it has not been reduced from the total turnover - HELD THAT:- As per the judgment of Hon'ble Karnataka High Court rendered in the case of CIT Vs. Tata Elxsi Ltd. [2011 (8) TMI 782 - KARNATAKA HIGH COURT] it was held that total turnover is sum total of export turnover and domestic turnover and if an amount is reduced from export turnover then the total turnover also goes down by the same amount automatically. Since the direction of CIT(A) on this issue is in line with this judgment of Hon'ble Karnataka High Court, we decline to interfere in the order of ld. CIT(A) on this issue. Accordingly ground nos. 5 and 6 of the revenue’s appeal are rejected. Eligible deduction computed u/s 10A - Whether Foreign Inward ....... + More
- 2019 (9) TMI 911
Levy of penalty u/s 271B - Books of accounts not audited - bonafide belief - addition the turnover of the assessee has increased the prescribed limit of ₹ 1.00 Crore applicable for the assessment year 2014-15 - HELD THAT:- Assessee was under the bonafide belief that the Books of accounts need not be audited and filed the Return of income. We find the explanations of the Ld.AR are realistic and duly supported with the financial statements which cannot be over looked. Further, the assessee is Regular in filing the Return of income and has been paying the taxes. The Reasonable cause explained by the assessee u/s 273B of the IT Act, that the assessee has maintained Books of accounts and based on Books of accounts, income and expenditure has been prepared and filed the return of income. In the Assessment proceedings, the AO found the cre....... + More
- 2019 (9) TMI 910
Disallowance u/s 14A r.w.r. 8D - HELD THAT:- Identical issue has been dealt with GUJARAT POWER CORPORAT ION LTD. AND (VICE-VERSA) [2019 (7) TMI 700 - ITAT AHMEDABAD] as relying on SHRENO LTD [2018 (12) TMI 1145 - GUJARAT HIGH COURT] hence the assessee is entitled to relief as claimed for which was rightly allowed by the CIT(A) by deleting the addition made by the Learned AO without any infirmity so as to warrant interference. The question is accordingly answered in the affirmative, i.e. in favour of the assessee and against the revenue. Disallowance applying provision of Section 115JB while completing disallowances under section 14A r.w.r. 8D - HELD THAT:- As decided in own case [2019 (7) TMI 700 - ITAT AHMEDABAD] we find from the issue citation that in the same set of facts the computation under clause (f) of explanation 1 to section 115....... + More
- 2019 (9) TMI 909
Exemption u/s 11 - charitable activity u/s 2(15) - providing healthcare facilities and imparting medical education and training - with a view to corporatize the hospital the management of the charitable activity was handed over to SCPL - HELD THAT:- CIT(A) has correctly held that the activity of the trust to carried on in accordance with its objects and in the best interest of charity, therefore, the exemption u/s. 11(1)(a) has rightly allowed by the CIT(A). Similarly, the CIT(A) has clearly held that the Sec. 13((1)(c)(ii) can apply only if any part of the charitable income of the trust has been used or applied for the benefits of the said persons during the previous year. But, since no portion of the income of the assessee has been applied for said person, therefore, the case of the assessee falls outside the scope of this section. The ....... + More
