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 →

Illakshi Synthetics Pvt. Ltd Versus The Dy. CIT Circle-1 Surat

Penalty u/s.271(1)(c) - addition on account of low G.P. - Held that:- So far as sustenance of penalty on addition on account of estimation of GP is concerned, in quantum, addition has been sustained upto the stage of this Tribunal wherein the Tribunal has estimated the profit @ 9% as adopted by the AO of 11%. Hence, the entire addition is purely made on the basis of estimation. The contention is that book of accounts could not be produced because of the destruction in flood. It is settled princi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it had purchased computer on which depreciation was claimed. In view of the judgement of Hon’ble Supreme Court rendered in the case of CIT vs. Reliance Petroproducts Pvt.Ltd. [2010 (3) TMI 80 - SUPREME COURT] wherein held a mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee, we hereby direct the AO to delete the penalty. - Decided in favour of assessee. - I.T.A. No.2050/Ahd/2011 - Dated:- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aw on the subject, the learned Commissioner of Income-tax (Appeals) has erred in partly confirming the action of assessing officer in imposing penalty u/s.271(1)(c) of the Act by sustaining the penalty on the addition of ₹ 1,93,813/- on account of low G.P. and ₹ 19,800/- on disallowance of depreciation on computer. 2. It is therefore prayed that penalty imposed by Assessing Officer and confirmed by Commissioner of Income-tax (Appeals) may please be deleted. 3. Appellant craves leave .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction 68 of the Act, GP estimation of ₹ 2,32,586/-, TUF depreciation of ₹ 11,07,580/- and disallowance of depreciation on computer of ₹ 19,800/-. The AO also initiated penalty proceedings u/s.271(1)(c) of the Act. The matter travelled upto the stage of Tribunal (ITAT A Bench Ahmedabad) and the Tribunal in ITA No.3208/Ahd/2008 for AY 2004-05, order dated 16/12/2010, was pleased to set aside the issue of addition on account of unsecured loans of ₹ 67,45,000/- and in respect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty on addition made on account unsecured loans of ₹ 67,45,000/- and sustained the penalty on GP addition and disallowance of depreciation on computer. 3. On the date of hearing, no one appeared on behalf of assessee, however a letter dated 29/07/2015 has been filed to decide the appeal on the basis of written submissions. Therefore, the Tribunal decided to proceed in the matter in the absence of assessee. 4. The ld.counsel for the assessee.Sr.DR supported the orders of the authorities belo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

depreciation on computer. The assessee has filed written submissions on both the issues which are reproduced hereunder:- Sub: Written Submission for A.Y. 2004-05 Ref: Appeal preferred against order u/s. 271(1)(c) dated 18.03.2010 May It Please To Your Honour 1. The appeal is directed against the order of the CIT(A) confirming the penalty on addition of ₹ 1,93,813/- on account of low gross profit and disallowance of ₹ 19,800/- of depreciation on computer. The facts leading to the levy .....

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 I. T. Act ₹ 67,45,000/- ii. Addition on account of fall in G.P. ₹ 2,32,586/- iii. Disallowance of depreciation claimed on Computer ₹ 19,800/- 3. The addition of ₹ 67,45,000/- was set aside by Honourable Tribunal to the file of assessing officer. The assessing officer again made addition which was deleted by Id. CIT(A). The Id. CIT(A) therefore deleted the penalty on this addition. Out of the addition of ₹ 2,32,586/- on account of gross profit, the Honourable Tri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

9 lacs, as against gross profit of the preceding assessment year at 10.55% on turnover of ₹ 25.38 lacs. Assessing Officer requested assessee to furnish the reasons for decline in Gross Profit Ratio. In response to the same assessee furnished a comparative chart showing the G.P. ratio of current year as well as preceding year. However, Assessing Officer rejected the explanation of the assessee and made the addition of ₹ 2,32,586/- to the total income of assessee. The assessee filed 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

2.2010 Honourable ITAT directed to estimate G.P. @ 9% as against estimation of G.P. @ 11% by Assessing Officer. It is relevant to mention here that assessee has already shown G.P. @ 8.27% & thus the addition on account of G.P. is sustained only at negligible rate of 0.73%. As addition is made purely on the basis of estimation & the same is partly sustained also on the basis of estimation, there is no justification in levying penalty on such estimated addition. There is no material on rec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nalal & Co. - 232 ITR 311 (MP) viii. CIT V. K. L. Mangal Sain - 107 ITR 598 (ALL) 4.3 The Id. CIT(A) has wrongly confirmed the penalty on the GP addition. The Honourable Tribunal has held that the application of same GP of last year could not be justified as turnover has increased 3 times. The Honourable Tribunal has estimated GP @ 9% considering the non production of books of accounts. The books could not be produced as they were destroyed in flood. Penalty on addition of ₹ 19,800/- b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he addition of ₹ 19,800/-, it is submitted that the addition has been made by way of disallowance of depreciation on computer on the ground that assessee could not produce any evidence in support of the purchase of computer. In this context, it is relevant to point out that assessee could not file said evidence due to reasons beyond its control, as its books of account & other records were destroyed in flood. Assessee also filed proof in support of its contention. However, it is releva .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is placed on the decision of Honourable Supreme Court in case of CIT v/s. Reliance Petroproducts Pvt. Ltd. - 322 ITR 158 (SC). 5. The assessee has wrongly sought the adjournment at the time of the hearing fixed on 23.02.2015 & 22.06.2015 on the ground that the quantum appeal in ITA No. 2539/A/2012 is pending. The quantum appeal filed by the department was pending in respect of addition of ₹ 67,45,000/- u/s. 68 deleted by CIT(A) which has no relevance to other two additions confirmed b .....

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     ↓  

Article: SERVICES UNDER REVERSE CHARGE UNDER GST REGIME

Forum: Duty Drawback & Input Credit - under GST

Forum: Excise duty credit on finished stock at additional place of business.

Forum: Credit on Repair of Company Car & Its Insurance

Highlight: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017 - Notification

Highlight: Companies (Acceptance of Deposits) Second Amendment Rules, 2017 - Notification

Highlight: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg. - Circular

Highlight: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 - Public Notice

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Circular: Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

Notification: Companies (Acceptance of Deposits) Second Amendment Rules, 2017

Notification: Rate of exchange of conversion of the foreign currency with effect from 22th September, 2017

Forum: Trans1 return

News: Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

Circular: Promote the officers of the Indian Revenue Service (Customs and Central Excise) to the grade of Principal commissioner of customs, GST & CX

Circular: Allocate the charges amongst the Members of the Central Board of Excise and Customs

Circular: Strategy for audits in 2017-18 consequent to GST - Audit by Central Excise and service Department to continue for the accounting year 2016-17 and for the past period

Circular: Appoint the IRS (C&CE) officers as Principal Commissioner (Revision Application) and ex-officio Additional Secretary

Circular: Time limit for filing intimation for composition levy under Rule 3(1) of the CGST Rules, 2017 extended to 16-8-2017

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017

Circular: C.B.E. & C. Advisory on Customs related matters on introduction of Goods and Services Tax regime

Circular: List of Reduced Tax Liabilities under GST regime in comparison to present combined Indirect Tax rates

Circular: Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

Circular: Clarification regarding applicability of section 16 of the IGST Act, 2017, relating to zero rated supply for the purpose of Compensation Cess on exports – Regarding.

Circular: Clarification on Inter-state movement of various modes of conveyance, carrying goods or passengers or for repairs and maintenance- regarding

News: RBI Reference Rate for US $

Highlight: Addition u/s 23(1)(a) - deemed rent - once the property is let out and at any point of time this remained vacant during the same cannot be brought to tax under the head House properties income.

News: Haryana constitutes screening committee on anti-profiteering

Highlight: Valuation of imported goods - it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

Highlight: Cenvat credit availed on Club Membership for the Director is not admissible as it cannot be said to be remotely connected with the activity of manufacture

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Jaitley asks biz not to wait till last day to file GST returns

Circular: Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28 th August, 2017. — reg.

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

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

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

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.



|| 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