2018 (5) TMI 1271
Addition u/s 69 - unexplained investment in the property - difference in purchase consideration as per the banakhat and the final Conveyance Deed found during the course of search - Held that - Only component principally missing was the furniture and fixtures which the owners were themselves allowed to sale which fetched a sum of ₹ 90 lakhs. There still remained a shortfall of ₹ 2.20 crores which had to be explained by the assessee. H....... + More
2018 (5) TMI 1270
Capital gain computation - ITAT not accepting cost of acquisition as on 01.04.1981 of the land sold - in the present case as per the certificate of the Mamlatdar (S), Diu & Dadaranagar Haveli submitted by the assessee herself in the assessment proceedings showing the Fair Market Value at ₹ 50/per sq. mtrs.- Held that - AO has without any other reference, compared the sale instance of another village and arrived at the valuation of ͅ....... + More
2018 (5) TMI 1269
Allowability to exemption u/s. 11 & 12 - rent paid by the assessee to the trustees or to the HUF where the karta was the trustee of the respondent-trust - as per AO payment of such rent would fall foul of section 13(1)(c) income of the trust not qualify for exemption - Held that - A total amount of valuation of land and building came to ₹ 25.66 crores. It was pointed out that the current fair market value of the property would come to &....... + More
2018 (5) TMI 1268
Tax liability arising due to MAT provisions - Levy of interest u/s 234B and 234C, while computing the MAT under the deeming provisions of Section 115J - Held that - The Hon ble Supreme Court, in the case of Rolta India Ltd., (2011 (1) TMI 5 - SUPREME COURT OF INDIA) considered the correctness of an order passed by the Karnakata High Court in the case of Kwality Biscuits (supra) and took into consideration various decisions of the other High Court....... + More
2018 (5) TMI 1267
Recovery of dues - Justification issuing notice u/s 226(3) - Held that - The appeal time for preferring an appeal against the order passed by the CIT (A) dated 15.03.2018 expires only on 18.05.2018, if in the meantime, the demand is enforced and the tax is recovered then the very purpose of filing an appeal will be negated and such an appeal is liable to become infractuous. Therefore, the Authority has to necessarily wait till the the expiry of a....... + More
2018 (5) TMI 1266
Validity of reference made by AO to the TPO of the petitioner s specified domestic transactions - safe harbour rule application - Held that - In the present case, admittedly, after the petitioner exercised option for application of safe harbour rules in accordance with the provisions of rule 10THC the Assessing Officer passed no order under subrule( 4) of rule 10THD declaring that the exercising of option was invalid. In terms of subrule( 7) and ....... + More
2018 (5) TMI 1265
Reopening of assessment - Jurisdiction of the Assessing Officer at Mumbai to initiate proceedings under Sections 147 and 148 - Held that - Plea of assessee that jurisdiction of the Assessing Officer at Mumbai was that as he has not filed returns and was not assessed at Mumbai, the Assessing Officer concerned at Mumbai had no jurisdiction is wholly without any merit. The jurisdiction of an Assessing Officer does not depend upon the fact whether a ....... + More
2018 (5) TMI 1264
Revision u/s 263 - not giving the assessee proper and sufficient opportunity of being heard - denial of natural justice - Held that - The assessing officer has not given adequate opportunity to the assessee and has passed an order u/s 144 without adequate enquiry. The directions given by the CIT in the Sec 263 order have not been followed by the AO. The Ld. CIT(A) has passed an ex parte order and has not dealt with the issue on merit. - We set as....... + More
2018 (5) TMI 1263
Income from franchise fee and consultancy services - Nature of Royalty - whether taxable @ 10% as per India-USA Double Taxation Avoidance Agreement (DTAA) - P.E. in India - physical control on the business of franchise and sub-franchise - taxability as royalty income or income u/s 44DA - Held that - the Jubilant or sub-franchise are not storing any goods on behalf of assessee. From the sub-franchise, the assessee is entitled only royalty and stor....... + More
2018 (5) TMI 1262
Penalty u/s 271(1)(c) - whether the notice issued by the Assessing Officer dated 26/12/2011 is valid or not? - non striking irrelevant portion of notice - Held that - The assessing officer did not strike off the irrelevant column in the notice and made known the assessee whether the penalty was initiated for the concealment of income or for furnishing the inaccurate particulars. In the assessment order also the AO simply recorded that the penalty....... + More
2018 (5) TMI 1261
Disallowance of estimated expenditure - Held that - The revenue s case is not with regard to genuineness of expenditure. Business requirements and planning for future has to be decided by the assessee but not by the Department. It is the assessee who has to run the business. The revenue has not proved that the assessee has made any bogus claim or incurred personal expenditure in the guise of marketing, godown and plant and maintenance expenses. I....... + More
2018 (5) TMI 1260
Revision u/s 263 - non discussion on computation of dividend distribution tax by AO - Held that - The assessing officer has not discussed this issue of computation of dividend distribution tax in his assessment order. The assessee could not demonstrate that this was an issue enquired into by the AO. Hence there is no application of mind by the assessing officer on this issue during the course of assessment or in the assessment order. - Hence the ....... + More
2018 (5) TMI 1259
Assessment u/s 153A - Assessment barred by limitation - Held that - The search in this case was conducted on 05.01.2005 and as per the provisions of section 153B(b) of the Act , the order of assessment u/s. 153A should have been framed on or before 31.03.2007 whereas, as a matter of fact, the same was framed vide order dated 31.12.2007. - Assessment of the Assessing Officer is invalid and void ab-initio as the same was barred by limitation as pro....... + More
2018 (5) TMI 1258
Revision u/s 263 - reopening of assessment initiated - Commissioner wanted to revise the order passed by the A.O. u/s 143(3) r.w.s. 147 on the ground that there are certain omissions and commissions in the order passed u/s 143(3) - Held that - In this case, the A.O. has reopened the assessment for the escapement of income and the same is offered for taxation and assessment is completed. We find that the order passed by the A.O. u/s 143(3) r.w.s. ....... + More
2018 (5) TMI 1257
Calculation of capital gain - determination of value - SRO s value has to be adopted as per the registered sale agreement or finally sold the property as on 07/02/2008 -Held that - We find that there is no merit in the arguments advanced by the ld. counsel for the assessee for the reason that the date of registration is only valid for one month and the property was sold altogether to a new vendee i.e. M/s. Sri Ramdas Paper Boards (Pvt.) Ltd., nea....... + More
2018 (5) TMI 1256
Transfer pricing adjustment - ALP determination - corporate guarantee commission charged by the assessee company - Held that - The assessee s case the corporate guarantee commission charged by the assessee was 0.90% which is more than the corporate guarantee commission of 0.25% to 0.53% approved by various judicial forums. Therefore, respectfully following the view taken by the coordinate benches, we hold that the corporate guarantee commission c....... + More
2018 (5) TMI 1255
Unabsorbed depreciation of current year and earlier year as allowable against income under the Head Income from other sources being disclosed/assessed under section 68 - Held that - As per Section 72, carried forward of business loss is not to be allowed to be set-off against any other head of income other than income from business. Inter Head set-off of business loss is allowed under section 71 against all other income except income from salary........ + More
2018 (5) TMI 1254
Levy of penalty u/s 271(1)(c) - unexplained income on account of corpus fund - Held that - Return for the assessment year 2007-08 was filed on 31.10.2007 declaring loss of ₹ 5,31,945/-. Search was conducted on 23.7.2009 i.e. after the first day of June, 2007. The assessee accepted the unexplained income on account of corpus fund relating to its source. The alleged undisclosed income was not offered to tax in the regular return of income and....... + More
2018 (5) TMI 1253
Addition under the head income from other sources - transfer of immovable property without consideration - Held that - Provisions of section 56(2)(vii)(b) of the Act bring into the ambit of income from other sources, of an immovable property to the transferee, which is received without consideration. This was brought into statute book by Finance Act, 2010, w.e.f. 1st October 2009. The above said provisions of the Act are applicable to transaction....... + More
2018 (5) TMI 1252
Penalty u/s 271C - failure to collect TCS - reasonable cause - assessee in default in respect of sale only within the meaning of section 201(1) and has not treated the assessee as assessee in default for collection of TCS in respect of sale - Held that - The assessee has satisfied the Assessing Officer that tax have been paid by the deducted / assessee in respect of sale of ₹ 12,40,93,199. It is only in respect of balance amount of sale of ....... + More
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