Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Deputy Commissioner of Income Tax And Others Versus Creative Processing Ltd. And Others

Addition of closing work in progress - CIT(A) deleted the addition - Held that:- Similar issue arose in Assessment Years 2004-05, wherein the CIT(A) has granted the relief to the assessee on similar issue by deleting the addition for closing work-inprogress amounting to ₹ 8,37,568/-. Facts being similar, so following the same reasoning as mentioned in the case of Bajaj Fashions Pvt Ltd ( 2009 (7) TMI 1214 - ITAT AHMEDABAD), this issue in the appeal for Assessment Year 2004-05 is also decid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d not have been allowed. It is open to the Tribunal to come to a conclusion either that the alleged payment is not real or that it is not incurred by the assessee in the character of a trader or that it is not laid out wholly and exclusively for the purpose of the business of the assessee and to disallow it. But it is not the function of the Tribunal to determine the remuneration which in their view should be paid to an employee of the assessee , we are not inclined to interfere with the finding .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the Revenue and Crossobjections by the assessee have been filed against the separate orders of learned CIT(A)-II, Ahmedabad for Assessment Years 2003-04, 2004-05, 2006-07, 2007-08 and 2008-09. 2. Before us, at the outset, the ld. Authorized Representative submitted that the facts and circumstances in all the appeals are identical except the assessment years and amount involved; therefore, the submissions made by him in case of one assessment year will also be applicable to others, and therefore, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

addition of closing work in progress of ₹ 7,62,728/- even though the Assessing Officer has categorically analyzed in the assessment order that there ought to be some stock as work in progress at the end of the year. 2. The Ld.ClT(A) has erred in law and on facts in deleting the addition of closing work in progress of ₹ 7,62,728/- even though the Assessing Officer is not bound by the method followed in the earlier years by the assessee in view of the case of CIT vs. British Paints Lt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the issue has not been decided by the Hon'ble High Court in the case of the assessee itself. 5. On the facts and In the circumstances of the case and in law, the CIT(A) ought to have upheld the order of the A.O. 6. It is, therefore, prayed that the order of the CIT (A) be set aside and that of the A.O. be restored to the above extent. 4. The first issue is with regard to addition of closing workin-progress of ₹ 7,62,728/-. The Assessing Officer observed that the assessee has not shown .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

serving that the assessee is engaged in the business of dyeing and printing of cloth on job work basis for which fabric is supplied by parties and the assessee has been following consistent method of valuation of closing stock wherein it does not value chemicals consumed in respect of fabrics lying on machines at year end whereas Assessing Officer estimated value of such chemicals and colour and made addition on the ground that by not showing closing work-inprogress of such items, the assessee h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r belongs to other parties and chemicals and colours which are used in respect of such fabrics lying on machine at year-end did not have separate market value or cannot be sold separately; hence it was impossible to make valuation of such stock. The CIT(A) agreed with the stand of the assessee that till the completion of the job, no right to receive any amount of job charges accrues to assessee and in case the assessee does not further process fabric in subsequent year, it will not receive even .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vour of the assessee, after considering the decision in the case of CIT vs. EMA Inida Ltd, (2008) 296 ITR 510 (All), by observing as under:- "11. In view of the above decision, in our considered opinion on the facts and circumstances mentioned above, we do not find any error in the consistently followed system of valuation of stock by the assessee. As the said system was accepted by the Department also in past in the case of the assessee, we do not find any good reason for departure from th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

wledge on behalf of the Revenue. Facts being similar, following the same reasoning as mentioned in the case of Bajaj Fashions Pvt Ltd (supra), we are not inclined to interfere with the findings of the CIT(A) who has rightly deleted the addition of closing work-inprogress of ₹ 7,62,728/-; accordingly, the same is upheld. 4.3. Similar issue arose in Assessment Years 2004-05, wherein the CIT(A) has granted the relief to the assessee on similar issue by deleting the addition for closing work-i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2)(b) of the Act. The Assessing Officer observed that the assessee had taken unsecured loan of ₹ 1,90,00,000/- from Varelli Fabrics Pvt Ltd, on which interest @ 18% amounting to ₹ 36,41,487/- has been paid as against prevailing market rate of 11.25%. Having considered the submission in this regard, the Assessing Officer observed that the rate of interest paid at 18% was in excess of market rate, therefore he disallowed interest expenditure to the extent of 6.75% after considering mar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

further confirmed by learned Commissioner of Income Tax (Appeals) vide order dated 16th October, 2006. However, Hon'ble ITAT vide its order dated 28th February, 2007 referred supra has deleted addition made by Assessing Officer. No new facts or incriminating documents in respect of this addition was found during the course of search at the business premises of Appellant. Therefore, in my considered view the Assessing Officer was not justified in making same addition of ₹ 13,65,558/- w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lia stating that CIT(A) erred in deleting the addition of excess payment of interest to sister concern of ₹ 13,65,558/- even though the Assessing Officer has justified in the assessment order that parties are inter related and that loan could have been obtained at the prevailing market rate and accordingly, the order of CIT(A) be set aside and that of Assessing Officer be restored. On the other hand, ld Authorized Representative for the assessee supported the order of the CIT(A) in this re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a), relied on by the learned advocate for the respondent-assessee, wherein it is held that if the Tribunal was satisfied that the expenditure was laid out or expended wholly and exclusively for the purpose of the business of the assessee there was no reason why the full amount expended should not have been allowed. It is open to the Tribunal to come to a conclusion either that the alleged payment is not real or that it is not incurred by the assessee in the character of a trader or that it is no .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ete agreement with the view taken by the Tribunal. 12. Considering the facts of the case and also considering the principle laid down in the case of Walchand and Co. Private Ltd. (supra), we are of the considered opinion that the present appeals deserve to be dismissed and the same are accordingly dismissed. Therefore, we hold that the Tribunal was right in deleting disallowance out of interest expenditure paid to M/s Vareli Fabrics Private Limited." 5.3 Nothing contrary was brought to our .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: National Advisory Committee on Accounting Standards - Tenure of the NACAS extended from one year to two years

Notification: National Advisory Committee on Accounting Standards

Forum: Duty Drawback- Urgent

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force - "subsidiary company" or "subsidiary"

Highlight: Restriction on number of layers for certain classes of holding companies - More than two layers of subsidiaries not allowed subject to certain exceptions.

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version