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 →

M/s Prime Mercantile Pvt. Ltd. Versus Income Tax Officer, Ward-14 (4) , New Delhi

Levy of penalty under section 271(1)(c) - appellant tendered an explanation saying that the additions were as a result of bona fide mistaken occurred at the time of preparation of return of income - Held that:- We are of the considered opinion that the appellant had no intention of concealing the particular of the claim made, having regard to the fact that full disclosure was made of the items written off in the schedule XI financial statement, and the appellant on its own before the detection 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

Hence, the appeal filed by the assessee is allowed in full. - Decided in favour of assessee. - ITA No. 6115/Del/2013 - Dated:- 4-9-2015 - SHRI I.C. SUDHIR, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant by : Sh. Ajay Wadhwa, Adv. For The Respondent by : Sh. Vikram Sahay, Sr. DR ORDER PER INTURI RAMA RAO, A.M.: This appeal by the assessee is directed against the order of CIT(A), dated 03.09.2013 passed for the assessment year 2003-04. The appellant raised the follo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

0,18,799/- was credited as other income. Out of the said amount of ₹ 1,00,18,799/-, a sum of ₹ 83,24,819/- was not taxable, however, inadvertently deduction of entire amount was claimed. 3. That on facts and circumstances of the case and in law, the CIT(A) erred in not appreciating that assessee had carried forward losses and depreciation of more than 1,00,00,000/- and the business of manufacturing of cement had already been stopped, therefore, deduction mistakenly claimed was not to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

70,99,249/- after making additions on the following three items: i. Expenses not allowed as no business done : ₹ 5,53,714/- ii. Addition on account of cash credit u/s 68 : ₹ 1,47,30,00/- iii. Disallowed claim of the assessee u/s 43B : ₹ 1,00,18,799/- On appeal before the CIT(A), the CIT(A) allowed the grounds relating to addition on account of cash credit under Section 68 of the Act and the interest claimed under Section 43B of ₹ 83,24,819/-. The Revenue had preferred 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

erest payable to HFC in five years, which was written back in this year. However, in the earlier years, the admitted position is that the expenditure by way of interest was not claimed by the assessee in computing the income. In such a situation, the liabilities by way of interest did not constitute expenditure incurred in earlier years and, therefore, on writing back the amount in profit and loss account, they cannot be deemed to be the income of the assessee. Therefore, we do not find any erro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

atter has not been considered by the learned CIT(Appeals). Therefore, this matter is restored to the file of the AO with a view to decide the same de-novo after hearing the assessee and keeping the aforesaid decision of the Hon ble Suprme Court in mind. Thus, this ground is partly allowed, as discussed above. 2.1 Pursuant to the above order of the Tribunal, a consequential order dated 23rd December, 2010 was passed assessing taxable income at ₹ 40,44,430/-. While doing so, the Assessing Of .....

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 penalty proceedings were not initiated at the time of original assessment. He further submitted that it is a bona fide mistake committed at the time of preparation of return of income by inadvertence in the amount of ₹ 1,00,18,799/- which was adopted in place of 83,24,819/-, while working out the deduction under Section 43B of the Act. The explanation of the appellant was not accepted by the Assessing Officer and he proceeded to levy of penalty of ₹ 6,22,538/-, placing reliance 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

was further submitted that while claiming the deduction under Section 43B of the Act, the addition made earlier under the same section in respect of interest waived by Haryana Financial Corporation Bank. The sundry creditors for expenses of ₹ 16,93,980/- was inadvertently included and the sundry creditors written off were clearly disclosed in the financial statement prepared in the schedule XI of the balance-sheet and even in schedule XV of the balance sheet i.e. Notes to Account, a full d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ourt in the case of Price Water House Coopers (P.) Ltd. Vs. CIT [2012] 348 ITR 306 (SC) and also on the decision of coordinate bench of ITAT, Pune in the case of Amruta Organics Pvt. Ltd. Vs. DCIT, dt. 22nd March, 2013 and the Hon ble Andhra Pradesh High Court in the case of CIT Vs. Saniz Mirza, (2013) 259 CTR 386 (AP). 4. Learned Sr. DR placed reliance on the orders of the authorities below. 5. We heard the rival submission and perused the material on record. During the course of penalty procee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f in the schedule XI financial statement, and the appellant on its own before the detection of the same by the Assessing Officer had offered the same to tax. This goes to prove that mistake is bona fide and therefore no penalty can be levied under the provisions of Section 271(1)(c) of the Act. In this regard, we also place reliance on the decision of Hon ble Supreme Court in the case of Price Water House Coopers (P.) Ltd., 348 ITR 306. The relevant paragraph is reproduced below: 17. Having hear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the provision for payment was not allowable under Section 40A(7) of the Act indicates that the assessee made a computation error in its return of income. Apart from the fact that the assessee did not notice the error, it was not even noticed even by the Assessing Officer who framed the assessment order. In that sense, even the Assessing Officer seems to have made a mistake in overlooking the contents of the Tax Audit Report. 19. The contents of the Tax Audit Report suggest that there 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

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: RBI Reference Rate for US $

Forum: Duty Drawback & Input Credit - under GST

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.

Forum: Input tax credit

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.

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

Forum: Manpower Service provider

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.

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

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC



|| 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