2018 (5) TMI 1250
Waiver of principal amount of term loan - taxability as capital asset - addition invoking section 41 - Held that - Revenue has not placed any material suggesting that the loan was for the purpose of working capital, but on the contrary, CIT(A) has given a finding that the principal amount related to term loan. Under these facts, we do not see any reason to interfere with the finding of the decision arrived by the CIT(A) and the same is hereby aff....... + More
2018 (5) TMI 1240
Loss in connection with the hedging contract - business loss or speculative loss - Held that - Admittedly, the assessee is not a dealer in foreign exchange. For the purpose of hedging the loss due to fluctuation in foreign exchange while implementing the export contracts, the assessee had entered into forward contract with the banks. In some cases, the export could not be executed and the assessee had to pay certain charges to the Bank and thereb....... + More
2018 (5) TMI 1182
TDS u/s 195 - commission payment for the business activity accruing and airing in India - obligation on the part of the assessee to deduct tax at source in relation to the commission payment made to its foreign Commission Agent - Held that - Explanation inserted with retrospective effect provides that obligation to comply with subsection 1 of Section 195 would extend to any person resident or non-resident, whether or not non-resident person has a....... + More
2018 (5) TMI 1177
TDS liability u/s 192 - amount paid towards part payment of tuition fees of children of its employees made to Anandalaya Education Society, which imparts education - perquisite in the hands of the employees of the assessee, as per provision of Section 17 2 - Held that - Contributions to the Anandalaya Education Society is towards the deficit of the fees towards wards of the employees, and therefore, rule 3 e would not apply to the facts of this c....... + More
2018 (5) TMI 1176
Reopening of assessment - additional ground raised - validity of reasons recorded by the Assessing Officer - Held that - Information from the Value Added Tax Department of Mumbai was placed for his consideration. This information contained list of allegedly bogus purchases made by various beneficiaries from Hawala dealers. Assessee was one of them. As per this information, he had made purchases worth ₹ 3.21 crores (rounded off) from such Ha....... + More
2018 (5) TMI 1175
Valuation of goodwill - transfer of trademark and technical knowhow - whether goodwill would be reduced to nil - Department contended that the assessee had deliberately under-valued the goodwill since the gain arising out of transfer of such asset was exigible to capital gain tax as compared to trademark where no tax was leviable - Held that - The reflected sale consideration in an agreement between the transferor and transferee in such a situati....... + More
2018 (5) TMI 1174
Disallowance of deduction u/s 80IA (4) - assessee undertaken road development project, for which, it had entered into an agreement with Gujarat State Road Development Corporation which was incorporated by the Government for the special purpose - Tribunal deleting the disallowance of deduction made by the Assessing Officer - Held that - Condition( b) of subsection (4) of section 80IA requires the assessee to have entered into agreement with the Ce....... + More
2018 (5) TMI 1173
Deduction incurred as product development expenses - revenue deduction - whether it has enduring benefits to the assessee and hence was capital expenditure in nature? - Held that - Assessee who was engaged in manufacturing textile products, had expended the amount in question for product development undertaken by a sister concern of the assessee on its behalf. The research work did not involve development of a new product or even a new technique ....... + More
2018 (5) TMI 1172
Higher rate of depreciation on dumpers - @ 30% OR 15% - nature of business of the assessee as transporter - Tribunal confirming the findings of the CIT A that the assessee is entitled to higher rate of depreciation @ 30% - Held that - From the material available on record though the assessee essentially was awarded contract for providing specialized equipments and trained manpower for mining and transportation of excavated minerals on hire, the t....... + More
2018 (5) TMI 1171
Reopening of assessment - Whether no additions are made by the AO in the order of assessment, he cannot make additions on some other grounds which did not form part of the reasons recorded by him? - Reasons to believe - Held that - In the present case, the reason for reopening the assessment was described in the stock reported by the assessee in its books of account, as compared to the stock reported to the bank. Assessee s contention before the ....... + More
2018 (5) TMI 1170
Interest levied u/s 201 1A - non deduction of tds on interest on Deep Discount Bonds to HDFC Bank - Held that - Following additional issues that the Tribunal may examine upon remand, which we propose to provide, are as under - - A Whether the HDFC Bank as a payee has deposited entire tax arising out of such payment in advance, and therefore, the ratio laid down in a decision of this Court in case Commissioner of Income-Tax v. Rishikesh Apartments....... + More
2018 (5) TMI 1169
Disallowance under section 40A(3) - AO s opinion that the assessee would have inflated the purchase expenditure by raising bogus claims - Bogus purchases - gp ratio determination - Held that - When the Assessing Officer had doubted the genuineness of the expenditure, he would require bringing to tax the profit element so avoided by the assessee. As noted, the Commissioner of Income Tax (Appeals) while limiting the additions, brought the assessee ....... + More
2018 (5) TMI 1168
Admit Tax Appeal for consideration of the following substantial question of law - A Whether the Appellate Tribunal was justified in allowing the claim of additional depreciation u/s.32(1)(iia) solely on the ground that allowance u/s.32 was to be provided as per Section 57( ii) and (iii) even though the assessee was not engaged in the manufacture or production of article or things after 30.09.2005, which is a condition precedent to allowance of ad....... + More
2018 (5) TMI 1167
Penalty u/s 271(1)(c) - non specification of charge - defective notice - Held that - It cannot be disputed and indeed it is not disputed that Annexure-E notice dated 19.12.2011 has been issued by the assessing officer alleging concealment of particulars of income or furnishing inaccurate particulars of income as ground for initiating proceedings for which purpose the appellant was called upon to appear and defend the proceedings under Section 271....... + More
2018 (5) TMI 1166
TDS u/s. 195 - payment of legal professional fees to non resident - non deduction of tds - Held that - Tribunal noted that the assessee had made payments to professional law firms by way of Consultancy Fees. Such firms did not have any fixed base available in India. The Tribunal, therefore, had recorded that under such circumstances, looking to the Double Taxation Avoidance Agreement between the two countries, the recipient of the fees had no tax....... + More
2018 (5) TMI 1165
Transfer Pricing Adjustment - interest on loan to Sun Pharma Global Inc (AE) at London Inter Bank Offer Rate (LIBOR) Plus 2% Rate which is almost equal to the Prime Landing Rate or American Bank lending rate - Held that - We notice that the amount involved is merely ₹ 40,000/-. Looking to the smallness of claim, the question is not considered. - Addition u/s 14A - Held that - CIT (A) gave partial relief but made disallowance under section 1....... + More
2018 (5) TMI 1164
Addition made in respect of investment in land - ITAT deleted the addition - Held that - Assessee had paid through cheques a total sum of ₹ 22,02,100/to one Sherin Co. Op. Hsg. Soc. Ltd. during the period between 28. 7. 2003 to 31. 1. 2005. CIT(Appeals) also noted that entire amount was repaid by Sherin Co. Op. Hsg. Soc. Ltd. in different cheques during the period between 2.6.2005 to 5.12.2005. The Revenue did not have any further material ....... + More
2018 (5) TMI 1163
Revision u/s 263 - capital gain - did assessee receive sale consideration of ₹ 4,43,52,100/- out of such sale? - Held that - In the sale deed, the assessee did pose as a seller and sale consideration stated to have been paid by the purchaser Gatil Properties Ltd was undoubtedly ₹ 4,43,52,100/-. However the entire amount was never received by the assessee. It was a confirming party- Melody Complex Pvt. Ltd which, under the agreement to....... + More
2018 (5) TMI 1162
Addition u/s 40A - excessive or unreasonable expenditure - Deduction from the income of payments of commission made to the Directors/Managing Director of the respondent assessee - Held that - Right of appeal is not automatic. Right of appeal is conferred by statute. When statute confers a limited right of appeal only in a case which involves substantial questions of law, it is not open for this Court to sit in appeal over the factual findings arr....... + More
2018 (5) TMI 1161
Penalty u/s 271(1)(c) - undisclosed bank accounts and sizeable cash deposits in such bank accounts - Held that - The assessee virtually admitted that cash deposits were undisclosed. The assessee only argued that not the entire tally of cash deposited in different accounts during the year but the peak credit thereof could be added under section 68 of the Act. The Assessing Officer accepted such a contention and added a sum of ₹ 19,55,500/to ....... + More
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