- 2019 (9) TMI 210
Low tax effect - Monetary limit - HELD THAT:- Tax effect involves in the appeal of the Revenue is below ₹ 50 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of ₹ 50 lakhs. The issue of applicability of the above circular to pending appeals has been decided by the coordinate bench in Dinesh Madhavlal Patel [2019 (8) TMI 752 - ITAT AHMEDABAD] Circular No. 17/2019 dated 08/08/2019 will apply to all pending appeals. Therefore the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than ₹ 50 lakhs. Accordingly, it is held that appeal filed by the revenue is not maintainable.
- 2019 (9) TMI 209
Low tax effect - Monetary limit - HELD THAT:- Tax effect involves in the appeal of the Revenue is below ₹ 50 lakhs. There is no dispute that the Board’s instructions or directions issued to the Income-tax authorities are binding on those authorities, therefore, the Department should have withdrawn/not pressed the present appeal in view of the aforesaid instruction since the tax effect in the instant appeal is less than the amount of ₹ 50 lakhs. The issue of applicability of the above circular to pending appeals has been decided by the coordinate bench in Dinesh Madhavlal Patel [2019 (8) TMI 752 - ITAT AHMEDABAD] Circular No. 17/2019 dated 08/08/2019 will apply to all pending appeals. Therefore the precedent, it is held that the appeal is not maintainable in the instant case as the tax effect is less than ₹ 50 lakhs....... + More
- 2019 (9) TMI 208
Monetary limit - low tax effect - HELD THAT:- No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit specified Circular No. 17/2019 shall also apply retrospectively to pending appeals. In that view of the matter, the appeals filed by the Revenue stand dismissed.
- 2019 (8) TMI 811
Disallowance u/s 14A r.w.r 8D - AO has not recorded his satisfaction regarding the correctness of the self disallowance made by the assessee - HELD THAT:- Since the tax effect involved in the matter is less than ₹ 2 crores, going by the latest circular issued by the CBDT, we see no reason to interfere in this matter. The special leave petition is dismissed, leaving all the questions of law open.
- 2019 (8) TMI 752
Maintainability of appeal - low tax effect - concession extended by the CBDT applicability - HELD THAT:- Relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8th August 2019 (supra) shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. DR then submits liberty may kindly be given to point out, upon necessary further verifications, and to seek recall the dismissal of appeals and restoration of the appeals in the cases (i) in which it can be demonstrated that the appeals are covered by the exceptions, and (ii) which are inadvertently included in this bunch of appeals, wherein the tax effect, in terms of the CBDT circular (supra), exceeds ₹ 50,00,000. None opposes this prayer; we accept the same. We make it clear that the appellants shall be at liberty to point out the ....... + More
- 2019 (8) TMI 740
Bogus LTCG - bogus accommodation entries - HELD THAT:- Assessee has filed voluminous evidence in support of acquisition/sale of the shares in issue. The mere effect that assessee’s lives at far away destination is no ground to dispute the same in view of the above overwhelming details. The assessee’s brokers found also appeared before the Assessing Officer to support his case in response to section 133(6) notices. Coming to demat issue (supra), the assessee’s paper book pages 15 to 16 contains the relevant contract notes regarding the scrip’s market value statement particulars as well as purchase and sales details. We find that the Revenue has not placed on record any cogent evidence regarding the accommodation entry nexus between assessee, his brokerage firm and the two other firms such namely M/s. Sikaria Shares ....... + More
- 2019 (8) TMI 409
Reopening of assessment u/s 147 - based on Revenue audit objection - CIT(A) quashed reassessment, can revenue will be permitted to argue on merit without challenging reassessment? - HELD THAT:- ITAT has in the impugned order noted that for AY 2004-2005 there was no material in possession of the AO other than the observation of the Revenue audit to proceed against the Assessee u/s 147 - CIT (A) noted that the case fell squarely within the realm of ‘change of opinion’ which was impermissible as a basis for re-opening of assessments after a lapse of four years. The CIT (A) expressly annulled the re-assessment proceedings ITAT noted that this was not challenged by the Revenue. It only challenged the deletion of the addition on merits. In the absence of any challenge to the quashing of the re-assessment proceedings by the Revenue, ....... + More
- 2019 (7) TMI 1449
Assessment against amalgamating company - amalgamating company having ceased to exist - Principle of consistency - HELD THAT:- the notice under Section 143(2) under which jurisdiction was assumed by the assessing officer was issued to a non-existent company. The assessment order was issued against the amalgamating company. This is a substantive illegality and not a procedural violation of the nature adverted to in Section 292B. In the present case, despite the fact that the assessing officer was informed of the amalgamating company having ceased to exist as a result of the approved scheme of amalgamation, the jurisdictional notice was issued only in its name. The basis on which jurisdiction was invoked was fundamentally at odds with the legal principle that the amalgamating entity ceases to exist upon the approved scheme of amalgamation. ....... + More
- 2019 (7) TMI 949
Disallowance u/s.14A - HELD THAT:- As already analyzed that the assessee was having sufficient own funds and therefore, whatever investment was made, the legal presumption is they were from the said own funds of the assessee. Therefore, no disallowance u/s.14A is called for. With regard to the disallowance on administrative expenses, considering the entirety of facts and circumstances in the case of the assessee, we direct the AO to sustain ½ % of the disallowance on administrative expenses attributable to exempt income. In view of our above findings on this issue, we set aside the order of the CIT(Appeals) and partly allow this ground. Hence, ground No.1 raised in appeal by the assessee is partly allowed. Disallowance of warranty provision by the assessee in its books of account - HELD THAT:- In case, it is a case of reversal of s....... + More
- 2019 (7) TMI 882
Disallowance of proportionate premium in respect of leasehold land amortized - HELD THAT:- Similar issue has been decided against the assessee by the Tribunal in the past years and in this context referred to the recent order of the Tribunal dated 03.09.2014 [2014 (9) TMI 1006 - ITAT PUNE] pertaining to assessment year 1997- 98. It was also an accepted position that the issue regarding assessee’s claim for deduction of proportionate premium of leasehold land amortized and charged to the Profit & Loss Account for the year under consideration is liable to be decided in terms of the judgement of the Hon’ble Supreme Court in the case of Govind Sugar Mills Ltd. vs. CIT, [1997 (7) TMI 16 - SC ORDER] against the assessee. Income recognition from contract activity - method of accounting - recognition income on reimbursement - HELD....... + More
- 2019 (7) TMI 389
Deduction u/s 80P (2) (a) (i) - reopening of assessment u/s 147 - Tribunal held that the assessee is to be treated as primary agricultural society and is carrying on the business of banking or providing credit facilities to its members and is entitled for deduction with respect to the interest received from Class B members who were involved in non-agricultural activity - HELD THAT:- As decided in K. 343, ONDIPUDUR PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD., K. 2065 KALIKKANAICKENPALAYAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD., K. 1788 NARASEEPURAM PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD., K. 758, IKKARAI BOLUVAMPATTI PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD. AND K. 1006 SINGANALLUR PRIMARY AGRICULTURAL COOPERATIVE CREDIT SOCIETY LTD. VERSUS THE INCOME TAX OFFICER, COIMBATORE [2019 (6) TMI 1098....... + More
- 2019 (7) TMI 179
Bogus capital gain - Claim for exemption u/s 10(38) in respect of sale of shares denied - HELD THAT:- The appellant had furnished the copies of contract notes, Demat statement, Bank Statement, broker’s ledger. The transactions in listed shares took place through a registered share broker, namely M/s. Sosha Credit Pvt. Ltd. The purchase of shares was acquired through public offer by way of direct subscription in Initial Public offering. The sale of shares took place on screen based trading platform of Bombay Stock Exchange. The transaction was settled by making / receiving payment by account payee cheques through proper banking channel. The assessee had paid securities transaction tax (STT) on sale of shares. The transaction took place at the price prevailing on stock exchange on respective transaction dates and there is no adverse f....... + More
- 2019 (6) TMI 1098
Entitlement to the benefit of Section 80P - reopening of assessment u/s 147 - HELD THAT:- Benefit of Section 80P to Cooperative Societies is being carried further to Hon'ble Supreme Court by way of Special Leave Petitions. It is the specific case and stated position of the learned Revenue counsel that the IT department, has not given legal quietus to the order, but is agitating the matter further by filing Special Leave Petitions in Hon'ble Supreme Court. There is no disputation that the aforesaid order of Hon'ble Division Bench [2016 (8) TMI 560 - MADRAS HIGH COURT] has neither been stayed nor reversed. Therefore, it holds the field. Though this could be the end of the matter and this Court would have been inclined to set aside the impugned notices, this Court takes a slightly different view owing to the second submission mad....... + More
- 2019 (6) TMI 746
Assessment u/s 153C - maintainability of petition - whether proceedings initiated by issuance of notice u/s 153C are wholly without jurisdiction? - effective and efficacious appeal remedy - HELD THAT:- This case clearly falls within the exceptions carved out in the case of Whirlpool Corporation v. Registrar of Trade Marks, Mumbai [1998 (10) TMI 510 - SUPREME COURT] and hence, the contention that these petitions under article 226 of the Constitution of India are not maintainable, cannot be accepted. Moreover, as noticed earlier, there are a few petitions in which the assessment orders have already been passed. In those cases also, the petitioners have challenged the notices u/s 153C on the ground of lack of jurisdiction. While against the assessment order, there is a remedy of statutory appeal under the provisions of the Income Tax Act, ho....... + More
- 2019 (6) TMI 721
Penalty u/s 271(1)(c) - non specifying which of the two contraventions, the assessee is guilty of - HELD THAT:- The notice issued u/s 271(1)(c) without specifying which of the two contraventions, the assessee is guilty of was defective and the penalty imposed in pursuance of such defective notice was not sustainable. See Amrit Foods vs Commissioner of Central Excise UP [2005 (10) TMI 96 - SUPREME COURT as well as DR. MURARI MOHAN KOLEY [2018 (9) TMI 1 - CALCUTTA HIGH COURT] and M/S. SRMB SRIJAN LTD [2019 (4) TMI 1502 - CALCUTTA HIGH COURT] - Decided in favour of assessee.
- 2019 (6) TMI 298
Bogus LTCG - addition u/s 68 - exemption u/s. 10(38) denied - penny stocks purchases - benami transactions - off market transaction for purchase of shares - HELD THAT:- The assessee has furnished all evidences in support of the claim of the assessee that it earned LTCG on transactions of his investment in shares. The purchase of shares had been accepted by the AO in the year of its acquisition and thereafter until the same were sold. The off market transaction for purchase of shares is not illegal as was held by the decision of Co-ordinate Bench of this Tribunal in the case of Dolarrai Hemani vs. ITO [2016 (12) TMI 1074 - ITAT KOLKATA] and BLB CABLES AND CONDUCTORS PVT. LTD. [2018 (8) TMI 525 - CALCUTTA HIGH COURT] The transactions were all through account payee cheques and reflected in the books of accounts. The purchase of shares and th....... + More
- 2019 (6) TMI 297
Bogus LTCG - Addition u/s. 69 - benami transactions - sale proceeds of equity shares - AO observed that assessee was not involved in activities of transactions in other shares and the assessee has not earned any LTCG from the sale of other shares - HELD THAT:- The assessee has purchased the shares from the off market and was in the physical form and later on it was dematerialised. The shares were credited into the assessee’s demat account on 20.06.2013. Later on the shares were listed in the BSE and the assessee had sold the shares through M/s. J.M. Financial Services, Mumbai. Copy of Contract Note of sale is placed and copy of demat statement is available from which statement we note that it reflects debit entry for the shares from the account. The sale considerations have happened through the banking channel (Vijaya Bank). AO has ....... + More
- 2019 (5) TMI 1376
Bogus Short term capital gain - penny stock - addition of Short term capital loss arising from sale of shares STT paid - claimed as set off against short term capital gain on in the matter of compensation received from govt. of Haryana against acquisition of land - genuineness of share transactions on both purchase and sale aspects - lack of cross examination - HELD THAT:- Assessee has filed all the requisite details on record in support of her share transactions. The Revenue’s case questions the genuineness of assessee’s details particularly in the light of search statement by Shri Anil Agarwal in the light of SEBI’s proceedings finalized on 2-4-2018 regarding M/s. First Financial Services Ltd. Rutron International Ltd (supra). Learned departmental representative fails to dispute that there is no direct evidence against....... + More
- 2019 (5) TMI 841
Bogus LTCG - sale of shares after payment of Security Transactions Tax (STT) - bogus unexplained cash credits u/s 68 - HELD THAT:- The fact remains that neither the department had supplied copy of alleged entry operator statement nor there is any material on record that they have named this taxpayer as the beneficiary of the impugned capital gains derived by rigging scrip’s share prices. Both the AO as well as CIT(A) are fair enough in observing that the said two persons have named the scrip rather than the assessee in their respective search statement. We therefore quote this tribunal’s decision in Prakash Chand Bhutoria vs. ITO [2018 (7) TMI 46 - ITAT KOLKATA] deleting identical addition for lack of any evidence against the concerned assessee. Bogus capital gains against the taxpayer based on circumstantial evidence. Hon'....... + More
- 2019 (4) TMI 1737
Bogus loss on sale of shares - loss in trading of shares - genuine share purchase transaction - commission @ 5% addition - HELD THAT:- As relying on ADITYA VIKRAM SUREKA HUF VERSUS ITO, WARD-34 (2) , KOLKATA [2019 (1) TMI 892 - ITAT KOLKATA] Revenue has failed to pin-point any specific evidence rebutting correctness of assessee’s voluminous details regarding the share transactions in issue. Mutatis mutandis to delete the impugned business loss(es) disallowance / addition as well as commission @ 5% (supra) in these facts and circumstances.