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2016 (1) TMI 1505
Accrual of income - real income - Amalgamation reserve treated as income u/s. 28(iv) r.w.s. 2(24)(vd) - HELD THAT:- We find that this is a simple case of accounting reserve which is created in the books of the amalgamated company to give accounting effect to the amalgamation. According to us, this is nothing but an entry passed in the Balance Sheet with a sole object to balance the accounts which are maintained on double entry system of accounting. This view of ours is supported by the decision of Bharat Development P. Ltd. [ 1980 (8) TMI 18 -....... + More
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2016 (1) TMI 1504
Impleadment of subsequent purchaser as party to the proceeding - suit for bare injunction in respect of 4 items of the suit property - application filed under Order 9 Rule 9 CPC to set aside the ex-parte dismissal of the suit and to restore the same - HELD THAT:- One Parijathammal as plaintiff has filed the suit for permanent injunction in respect of 4 items of property against 3 defendants. Admittedly, the said Parijathammal died on 09.07.2006 and the suit was dismissed for default on 14.07.2006. Thereafter, the respondent herein who is none ....... + More
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2016 (1) TMI 1503
Seeking quashing of proceedings arising out of the FIR in question - dispute between the parties has been amicably resolved - offences under Sections 365,364A, 328,174A IPC are non-compoundable offences - HELD THAT:- It is a well settled law that where the High Court is convinced that the offences are entirely personal in nature and therefore do not affect public peace or tranquillity and where it feels that quashing of such proceedings on account of compromise would bring about peace and would secure ends of justice, it should not hesitate to....... + More
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2016 (1) TMI 1502
Legality of will - main contention of the applicants is that the Will dated 11.12.1996 is not genuine one and it has been forged by the petitioners 1 and 2, viz., the sons of the deceased testator - Time Limitation - HELD THAT:- It is quite apparent that all that is required in the eventuality of the Letters of Administration being applied for after a lapse of three years from the date of death of the deceased, is that there should be an explanation forthcoming for the delay in presentation of the application and not that it would be a bar to ....... + More
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2016 (1) TMI 1501
MAT computation u/s 115JB - disallowance of prior period items in the net profit of the company for the purpose of working out the book profit of the company u/s 115JB - whether Prior Period Expenses are to be adjusted to the net profit to arrive at the book profits? - HELD THAT:- As per Schedule VI, Part II and the prescribed Accounting Standards, net profit for the current year is to be arrived after adjusting prior period items. In the present case the undisputed fact is that the Net Profit shown in the profit loss account has been arrived ....... + More
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2016 (1) TMI 1500
Benami transactions - requisite legal cause of action of existence of HUF and its properties made out or not? - HELD THAT:- In a case such as the present, besides ipse dixit of the plaintiff being a partner, it is necessary in law as per Order VI Rule 4 of the Code of Civil Procedure, 1908 (CPC) to make specific reference to the partnership deed as per which plaintiff is a partner in M/s. Khurana Associates and M/s. Khurana Sales Corporation. This however has not been done and the plaint is conspicuously silent in this regard. It is also seen ....... + More
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2016 (1) TMI 1499
Deduction u/s. 80P(2)(d) - interest received from investment with non-cooperative institutions was not allowable as deduction - HELD THAT:- Similar issue had arisen in the appeal filed by the AO for the AY. 2009-10 [ 2015 (9) TMI 1751 - ITAT MUMBAI] , that the Tribunal had dismissed the appeal filed by the AO. He also relied upon the case of Jaoli Taluka Sahakari Patpedhi Maryadit [ 2015 (9) TMI 170 - ITAT MUMBAI] , Mehsana District Cooperative Bank Ltd. [ 2001 (8) TMI 15 - SUPREME COURT] . Decided in favour of assessee.
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2016 (1) TMI 1498
Violation of principles of Natural Justice (audi alterem partem) - opportunity to cross-examine not provided - entire order is founded on the statement made by one Buppa Biswas without the petitioner being afforded an opportunity to cross-examine Buppa Biswas - HELD THAT:- No real issue of breach of natural justice or jurisdictional error is urged. The petitioner says that the entire order is founded on the statement made by one Buppa Biswas without the petitioner being afforded an opportunity to cross-examine Buppa Biswas. Such allegation doe....... + More
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2016 (1) TMI 1497
Penalty proceedings u/s. 271D - violations of Section 269SS - cash loan received - HELD THAT:- It is our considered view that provisions of Section 269SS of the Act are strict provisions making taxpayer liable for penalty for taking loan or deposit of ₹ 20,000/- or more in cash . There are provisions u/s 273B of the Act when the reasonable cause is shown , then the penalty is not exigible. The provisions were enacted to check the menace of tax evasion so that the taxpayer is not allowed to give a false explanation for his un-accounted mo....... + More
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2016 (1) TMI 1496
Unexplained cash credit u/s 68 - inability of the creditors to explain the source of source - Assessee argued unsecured loans had been received by account payee cheques from identifiable parties who had duly confirmed in their statement that loans had been advanced to the appellant - HELD THAT:- It is well settled position of law and as stated above that appellant is not obliged to prove source of source of the credits. The burden of the assessee is to restrict himself to prove and explain the source of the credit; and once creditor has appear....... + More
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2016 (1) TMI 1495
Bogus expenses - non-production of supporting evidence and necessary details in relation to various expenses - AO disallowed the expenses on estimate basis @ 30% of all the expenses - HELD THAT:- We find that the AO has disallowed the various expenses on adhoc basis on the ground of non-availability of the supporting documents. The expenses are in agreement with the earlier year expenses. No disallowance of such expenses has made in the earlier year assessment orders. AR has explained all the expenses and submitted the necessary supporting det....... + More
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2016 (1) TMI 1494
Depreciation u/s 32(1) - amounts of car loan advanced to employees for the purchase of vehicle under terms and conditions as laid down in Car Policy of the Assessee company - whether employee of the Assessee is to be considered as owner of the vehicle for the granting deprecation as per the provisions of the Act? - HELD THAT:- AO acknowledges that the asset is in fact in the name of the Assessee but that mere fact does not make the Assessee eligible for the claim of depreciation. In the considered view of the Court, this amounts to re-characte....... + More
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2016 (1) TMI 1493
TP Adjustment - comparable selection - exclusion of M/s. Cosmic Global Ltd. ( CGL ) as a comparable by the Assessee - HELD THAT:- A perusal of the impugned order of the ITAT reveals that the ITAT was conscious of this fact and proceeded to assess on merits whether the Assessee was justified in seeking the exclusion of CGL as a comparable. The ITAT has set out detailed reasons why the said plea of the Assessee was justified. Inter alia it was noticed that CGL s functional profile did not match that of the Assessee and a substantial portion of i....... + More
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2016 (1) TMI 1492
Revision u/s 263 by - exemption u/s 11 - grant 15% accumulation on the gross income - need to file Form 10 - whether 15% of the accumulation permitted u/s 11(1)(a) of the Act is to be calculated on the gross income or on the net income? - HELD THAT:- On a plain reading of section 11(1)(a) of the Act, it can be seen that 85% of the income of the trust to be applied for charitable/religious purposes and upto15% is permitted for accumulation in order to avail full exemption. There is no condition stated/s 11(1)(a) of the act to invest the 15% acc....... + More
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2016 (1) TMI 1491
Calculation of liability - Incremental liability for payment of pension under the Voluntary retirement scheme (VRS) created on an actuarial basis in computing the assessee s total income - HELD THAT:- Tribunal in assessee s own case for A.Y. 1994-95 [ 2013 (2) TMI 95 - ITAT MUMBAI] followed the findings given by the Tribunal in A.Y. 1993-94 [ 2012 (8) TMI 492 - ITAT, MUMBAI] and has restored this issue back to the file of AO to examine and verify the actuary valuation certificate and the agreement with the company and the employee and if he fi....... + More
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2016 (1) TMI 1490
Addition on account of commission payments debited to the profit and loss account - CIT-A deleted the addition - HELD THAT:- We find that the assessee has submitted detailed evidences like names of the agents, PAN numbers, describing services rendered by the Agents, confirming the transaction, details of the TDS made, Bank account details with returns of income of agents. However, the AO has failed to examine or crossexamine these evidences by calling the concerned Agents. We also note that the question framed by the AO to various Government A....... + More
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2016 (1) TMI 1489
Territorial Jurisdiction - Maintainability of suit - suit has been dismissed on the ground that this court does not have the territorial jurisdiction to entertain the same - infringement of trademark - HELD THAT:- The appellant / plaintiff has its principal office in Delhi (place A). Its subordinate office is at Deogarh, Jharkhand (place B) where it runs one of its hotels (Amrapali Clarks Inn), albeit in collaboration with Clarks Inn hotels. The alleged cause of action has accrued at Deogarh, Jharkhand (place B). Therefore, the appellant/plain....... + More
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2016 (1) TMI 1488
Disallowance of 50% of Misc. Expenses including poojan expenses - HELD THAT:- We find merit in the contentions of assessee, these expenditure being in the field of customary expenses, labour welfare having been allowed in past year should be allowed. Our view is fortified by Honble Delhi High Court and Madras High Court judgments in the cases of Mohan Meakin Ltd [ 2009 (10) TMI 894 - DELHI HIGH COURT] and Aruna Sugars [ 1977 (1) TMI 8 - MADRAS HIGH COURT] Disallowance of compensation paid to taparies for vacating the unauthorized construction ....... + More
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2016 (1) TMI 1487
Disallowance u/s 10B - receipts from international recruitment services - whether receipts were covered within the meaning of export of article or things or computer software and were not eligible for deduction under Section 10B of the Act? - HELD THAT:- Issue stands answered in the Assessee s own case in its favour by the decision of this Court in Commissioner of Income Tax-II v. M. L. Outsourcing Services (P) Ltd. [ 2014 (9) TMI 396 - DELHI HIGH COURT] for AY 2007-08. The ITAT has, in fact, followed the said decision while deciding the quest....... + More
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2016 (1) TMI 1486
Admission of additional evidence by CIT-A - CIT(A) refused to admit the additional evidence and rejected the same - HELD THAT:- As in Shahrukh Khan [ 2006 (7) TMI 532 - ITAT MUMBAI] under similar circumstances, the Tribunal found from the record that it was not discernible whether the ld. CIT(A) had granted permission to adduce additional evidence by recording reasons in writing under Rule 46A(2) of the I.T. Rules. However, the ld. CIT(A) had directly sent it to the AO under Rule 46A(3), for verification. The Tribunal held that it was implied ....... + More