Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 648 - ITAT PANAJI

2015 (6) TMI 648 - ITAT PANAJI - TMI - Addition u/s 43B - statutory liabilities which had not been paid by the Assessee before the due date - Applicability of Sec. 43B when the return is filed applying the provisions of Sec. 44AF - Held that:- The statutory liability in the present case has not been paid before the due date of filing the return. Further, the non-obstante clause in Sec. 43B has a far wider amplitude because it uses the words “notwithstanding anything contained in any other provis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

invoking the provisions of Sec. 43B of the Act in respect of the statutory liabilities are in order even though the Assessee's income has been offered and assessed under the provisions of Sec. 44AF of the Act. - Decided against assessee.

Addition representing the sundry creditors - Held that:- As admittedly the same cannot be made in the hands of the Assessee when applying the provisions of Sec. 44AF. This is because once the presumptive tax provision is applied, then, the books of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

RGE MATHAN : 1. This is an appeal filed by the Assessee against the order of CIT(A), Panaji in Appeal No. 202/MRG/08-09 dt. 30.3.2012 for the A.Y 2006-07. The appeal filed by the Assessee is delayed by 253 days. Originally, the Tribunal had dismissed the Assessee‟s appeal vide an order dt. 25.7.2013 on the ground that the delay in filing of the appeal was not condoned. The Assessee has challenged the said order before the Hon'ble Jurisdiction High Court of Bombay at Goa in ITA NO. 27 o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and subsequently the Assessee has closed his business. It was the submission that the turnover of the Assessee for the relevant assessment year was ₹ 18,07,249/- and the Assessee had filed its return of income under the presumptive tax provision of Sec. 44AF by applying rate of 5%. It was the submission that in the course of the assessment the AO made two additions. The first addition was by invoking the provisions of Sec. 43B in respect of the statutory liabilities which had not been pai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n account of the statutory liabilities could be made u/s 43B or any addition in respect of the sundry creditors as no books of accounts were liable to be looked into under the presumptive tax provision. It was submitted by the ld. AR that the provisions of Sec. 44AF opened with the words notwithstanding anything to the contrary contained in Sec. 28 to 43C . It was the submission that as the provisions of Sec. 28 to 43C were excluded when applying the presumptive tax provision of Sec. 44AF, no ad .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

were higher than the presumptive profits as per the said section and had consequently cancelled the penalty. It was the further submission that the true effect of the non-obstante clause in Sec. 44AF is that the provisions mentioned therein have full operation and the provisions embraced in the non-obstante clause do not become an impediment for the operation of that section. He also relied upon the decision of the coordinate Pune Bench of the Tribunal in the case of Sunil M. Kankariya, 298 ITR .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gains of the business of retail trade in any goods or merchandise and there was no requirement for the Assessee to maintain the books of accounts for such business and to get them audited if the deemed profit and gains are taken as taxable profit of such business. It was the submission that the Assessee having applied the provisions of Sec. 44AF and the AO having accepted the same, no further addition by applying provisions of Sec. 43B or in respect of sundry creditors was permissible. He also .....

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 case of Oil and Natural Gas Commission reported in 255 ITR 413 to support his argument in respect of the non-obstante clause. It was the submission that consequently the disallowance made by invoking the provisions of Sec. 43B and the addition representing sundry creditors were liable to be deleted. 3. It was an alternative submission that if the books of accounts of the Assessee were to be considered, then, the books of accounts in its entirety would have to be considered and the profit an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

survey conducted on the Assessee on 24.6.2005 that the statutory payments having not been paid have been noticed. It was the submission that the provisions of Sec. 43B did apply in the Assessee‟s case. 5. We have heard the rival submissions. The decisions relied upon by the Assessee are not applicable to the facts of the Assessee‟s case insofar as none of them have considered the applicability of Sec. 43B when the return is filed applying the provisions of Sec. 44AF. A perusal of Se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ds that call for interpretation. When the presumptive tax rate is applied u/s 44AF, the said sum equaling 5% of the total turnover is deemed to be the profit and gains of such business chargeable to tax under the head Profits and gains of business or profession‟. It only means that the deduction allowable u/s 28 to 43C is deemed to have been already granted to the Assessee. This is because the said provisions u/s 28 to 43C are provisions relating to the computation of business income of 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

 

 

 

 

 



|| 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