Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 1317 - AT - Income TaxDeemed dividend u/s 2(22)(e) - advance towards supply of Material & Reimbursement of statutory due paid on behalf - HELD THAT:- Though the AO has mentioned that no submissions were filed by the assessee in response to various queries raised during the course of assessment proceedings, however, submissions dated 17/05/2016 and 24/08/2016 were in fact filed by the assessee before the AO on 20/05/2016 and 24/08/2016, respectively. Acknowledged copy of submissions form part of the paper book at page no.15–17 - we deem it appropriate to remand this issue to the file of AO for de novo adjudication after necessary examination/verification of details. We further direct the assessee to produce the bills, delivery challans, agreement etc. in respect of the material supplied by Sri Jaya Jewellery and M/s Alex Jewellery Private Limited to M/s Jaya Jewellery Private Ltd. against the advance given. Since this issue is remanded for adjudication afresh, the assessee shall be at liberty to adduce any other evidence to support its case. AO shall also have the liberty to call for or examine any other documents/detail as may be necessary for complete adjudication of this issue. As a result, grounds no. 1 – 3 raised in assessee’s appeal are allowed for statistical purpose. Income computed for the assessment years before the Income Tax Settlement Commission after taking into account the additional income offered by the assessee - Disallowance as cost of improvement of shop owned by the assessee - HELD THAT:- Since, it is not clear whether the property in Mayur Tower, Mumbai, which is referred in Income Tax Department’s report under section 245D(3) of the Act, is the same property, which is sold during the year under consideration, therefore, we deem it appropriate to remand this issue to the file of AO for de novo adjudication after necessary examination/verification of details. We further direct the assessee to furnish before the AO all the material/evidence in support of its aforesaid claim. The AO shall also have the liberty to call for or examine any other documents/detail as may be necessary for complete adjudication of this issue. Further, since, the claim of the assessee is based on the proceedings before the Income Tax Settlement Commission, the record pertaining to same are likely to be also available with the Income Tax Department, the AO may also make necessary endeavour to call for such records for verification of facts relevant for deciding this issue. As a result, grounds no. 4 raised in assessee’s appeal is allowed for statistical purpose. Disallowance u/s 14A - AO has mentioned the investment in shares on the basis of which disallowance under section 14A of the Act was computed in the case of the assessee - HELD THAT:- From perusal of the aforesaid balance sheet of the assessee we find that the investment in shares is only Rs. 5,66,752. Thus, from the above, it is evident that the AO has not correctly appreciated the facts of the case, while computing the disallowance under section 14A of the Act read with Rule 8D of the Rules. Therefore, we deem it appropriate to remand this issue to the file of AO for de novo adjudication as per law, after necessary verification of facts available on record. As a result, ground no. 5 raised in assessee’s appeal is allowed for statistical purpose. Levy of interest under section 234A - HELD THAT:- As we deem it appropriate to remand this aspect to the file of AO for de novo adjudication after necessary examination of the fact whether the return of income was filed by the assessee within the prescribed time under the Act. While, interest levied under section 234B and 234C of the Act are consequential in nature. Therefore, ground allowed for statistical purpose.
|