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Mega Corporation Ltd. Versus Additional CIT, Range-6, New Delhi

Jurisdiction of the Additional CIT to frame the impugned order of assessment u/s 143(3) - as per assessee assessment framed by the Additional CIT Range-6, New Delhi is without jurisdiction as firstly, he was not an Assessing Officer under section 120(4)(b) of the Act and furthermore, there was no order under section 127(1) of the Act for transfer of jurisdiction from DCIT, Circle 6(1), New Delhi to Additional CIT, Range 6, New Delhi - Held that:- It is an undisputed position and not challenged b .....

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ion in as much as the Additional CIT did not have the requisite mandate power under the law to frame the impugned assessment under section 143(3) of the Act.

This order apparently is neither an order under section 120(4)(b) of the Act and nor it otherwise directs the Additional Commissioner to exercise or perform all or any of the powers and functions conferred on or assigned to an Assessing Officer under the Act. As regards the notification no. 267/2001 dated 17.9.2001 we notice that .....

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ion as specified therein and no more. In the instant case it is admitted position that none of the notifications as specified therein confer powers of an Assessing Officer to the Additional Commissioner of Income Tax, Range 6, New Delhi.

We thus find merit in the claim of the appellant that in absence of an order u/s 120(4)(b) of the Act the Addl. CIT Range-6, New Delhi lacks jurisdiction to exercise the functions of the AO and therefore consequently the order of assessment framed is .....

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essment proceedings without there being an order u/s 127(1). - Decided in favour of assessee. - ITA No. 102/Del/2014 - Dated:- 22-9-2015 - SHRI I.C. SUDHIR AND SHRI L. P. SAHU For The Appellant : S/Shri Salil Aggarwal & Salesh Gupta, Adv. For The Respondent : Shri P. Dam Kanunjna, Sr. DR ORDER PER I.C. SUDHIR: JUDICIAL MEMBER 1. This appeal preferred by the assessee is directed against the order of learned CIT(A)-IX, New Delhi dated 29.11.2013 and relates to assessment year 2006-07. 2. The a .....

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to exercise the powers or perform the functions of Assessing Officer and as such, the same was without jurisdiction, invalid and deserve to be quashed as such. 1.1 That the learned Commissioner of Income Tax (Appeals) having admitted that there is no order under section 120(4)(b) of the Act as required under section 2(7A) of the Act was wholly incorrect in law and on fact to uphold the assessment on the basis of an order under section 120(2) passed by the CIT-II, Delhi based on Notification No. .....

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of the Hon ble Tribunal in order dated 16.01.2013, which has acquired finality and has not been challenged by the revenue. 2 That the learned Commissioner of Income Tax (Appeals) has otherwise too failed to appreciate that the order of assessment was without jurisdiction in absence of an order transferring jurisdiction u/s 127 of the Act from the learned DCIT, Circle 6(1), New Delhi to learned Additional Commissioner of Income-tax, Range-6, New Delhi. 3 That the learned Commissioner of Income T .....

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on disinvestment of shares and as such, the finding that, such gain represents business income of the appellant company is misconceived, misplaced and, wholly untenable. 3.2 That the learned Commissioner of Income Tax (Appeals) has overlooked the fact that, once it is an undisputed and admitted fact that, shares sold by the appellant in the instant assessment year were held and, accepted as investments in the preceding assessment year, there remained no basis much less any valid basis to regard .....

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such since the gain had accrued to the assessee on transfer of long term capital asset , the same was not includible in the total income of the assessee and in any case the tax levied @ 30% instead of prescribed rate of tax @ 20% was beyond jurisdiction and, had erroneously been levied. 3.4 That the learned Commissioner of Income Tax (Appeals), has further failed to appreciate that such long term capital gain could not held to be business income on the mere assumption that the shares were not h .....

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Income Tax (Appeals) has failed to appreciate that, mere alleged violation of the provisions of SEBI could not be sufficient to disentitle the assessee, in treating the asset held as equity shares as long term capital asset, particularly when transactions of identical nature were accepted in the immediately preceding assessment year and as such, finding recorded are based on subjective, whimsical and, arbitrary considerations and, therefore not sustainable. 3.7 That the finding of the learned C .....

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ned Commissioner of Income Tax (Appeals) has further erred in recording contradictory and vague findings in order dated 6.12.2010. The findings recorded in the impugned order are totally contrary to the material placed on record and is nothing but is based on figment of an imagination including the finding that no STT was paid on such transactions and is not established from the contract notes issued by the broker, particularly when there is no material on dispute the genuineness of the contract .....

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uch less a valid basis to allege and, hold that, short-term capital gain arising on purchase and, sale of shares was not taxable @ 10% u/s 111A of the Act but @30% as business income of the appellant company. 4.2 That the learned Commissioner of Income Tax (Appeals) has failed to appreciate that the finding of the learned AO that, the assessee has failed to produce evidence that these belong to transactions of shares held by it was based on misconceived facts and factually incorrect, legally mis .....

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be assessed at an income of ₹ 9,10,63,184/- in an order dated 29.12.2008 under section 143(3) of the Act. The appeal filed by appellant-assessee was dismissed vide order dated 6.12.2010 by learned CIT(A). On further appeal before Tribunal, the assessee raised following additional grounds of Appeal: 1. That order of assessment u/s. 143(3) of the Act 29.12.2008 is without jurisdiction since the learned Additional Commissioner of Income-tax, who framed the impugned assessment was not empowere .....

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essment is without jurisdiction in absence of an order transferring jurisdiction u/s. 127 of the Act from the learned DCIT, Circle 6(1), New Delhi to learned Additional Commissioner of Income-tax, Range-6, New Delhi . 3.1 The ITAT in an order dated 16.1.2013 admitted the additional grounds and thereafter, set aside two issues raised in the additional ground to the file of learned CIT(A) for adjudication on merits. It was held as under: 7. We have duly considered the rival contentions and gone th .....

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issue which effects the taxability of the assessee then even at belated stage the assessee can be permitted to raise legal issue. Therefore, we admit the additional grounds of appeal raised by the assessee. As far as the merits of the grounds are concerned, admittedly first notice under sec. 143(2) was issued by the DCIT, Circle-6, New Delhi. Learned Additional Commissioner took charge of the assessment proceedings from 25.8.2008. The material placed on record in the shape of correspondence by .....

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arned First Appellate Authority on this issue who will be looked into relevant record available with the department. Both the representatives had expressed no objection over the suggestion. Considering all these aspects, we deem it appropriate to set aside these two issues to the file of the Learned CIT(Appeals) for adjudicating them on merit. Learned CIT(Appeals) shall pass a speaking order referring to all relevant material. 8. In case, the grounds are accepted and assessment order is quashed .....

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arned CIT(Appeals) need not to comment on any other issue. It is needless to say that the observations made by us will not impair or injure the case of the Assessing Officer and will not cause any prejudice to the defence/explanation of the assessee. Learned First Appellate Authority shall adjudicate the alleged grounds of appeal. 3.2 The learned CIT(A) thereafter, called for the comments from the Assessing Officer and dismissed the appeal of the assessee and as such, this appeal has been prefer .....

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6, New Delhi for framing assessment under section 143(3) of the Act. Thereafter, on 25.8.2008, notice was issued by Additional CIT, Range 6, New Delhi under section 142(1) of the Act and pursuant thereto, assessment has been framed under section 143(3) of the Act on 29.12.2008 by the Additional CIT, Range 6, New Delhi. The contention of the assessee is that the aforesaid assessment framed by the Additional CIT Range-6, New Delhi is without jurisdiction as firstly, he was not an Assessing Office .....

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act that there is no order u/s 120(4)(b). But there is an order u/s 120(2) passed by the CIT-II, Delhi, as pointed out by the Ld. AR of assessee, the issue remains whether order u/s 120(2) can fulfill the requirement of order u/s 120(4)(b). On the basis of principle laid down in the decision of City Garden Vs. ITO (Supra) that such decision has to keep in mind that defect of procedure should not invalidate the end action and allocation of functions is matter of procedure and not substance, the a .....

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on, the issue of Section 124(2) & (3) is not applicable. However, in view of the decision of the Hon ble High Courts in CIT Vs. British India Corporation Ltd. (Supra) and Mukti Properties (P) Ltd. Vs. CIT (supra), which are directly on the issue of jurisdiction raised by the appellant at a later stage and not at the stage of assessment, the admission of such grounds of appeal by the Hon ble ITAT may be re-examined. In view of this, the contention of the appellant that the impugned order pass .....

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if concurrent jurisdiction is given to the Addl. CIT, an order u/s 127 of the Act is required to be passed to give Addl. CIT the power to complete a particular assessment as it is done in the cases of transfer of cases to another AO after issue of notice u/s 143(2) of the Act by another AO. On this account, the issue raised is whether after notice u/s 143(2) is issued by the DCIT, Circle-6(1), assessment order can be passed by the Addl. CIT of Range-6 having concurrent jurisdiction. This issue .....

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ersely affected by the order. 4.2 Apart from the above, another additional basis adopted by the learned CIT(A) to reject the claim of the appellant is that the assessee has not challenged the jurisdiction or authority of the Assessing Officer to make the assessment itself at the stage of assessment and once the assessee had subscribed to the jurisdiction and participated in the assessment proceedings, the said contention is not tenable. He has held in this regard as under: 14. In my considered o .....

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he assessee goes against raising any contention at later stage. After silently participating in the proceedings before the AO, the appellant has accepted the jurisdiction of the AO. Had the appellant raised the issue at the level of AO, the AO could have written to the Higher Authorities for defining the jurisdiction. By not doing so the appellant surrendered the right to object the jurisdiction of the AO which cannot be revived at the later stage just to prolong the issue for adjudication. Simi .....

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sment. It was submitted that in absence of such an order under section 120(4)(b) read with section 2(7A) of the Act so as to vest the Additional CIT the power to exercise and perform the functions of the Assessing Officer, the assessment framed is legally unsustainable. He referred to the provisions contained in sections 120, 121 and also section 124 along with 2(7A) of the Act to support his contention. It was contended that order dated 1.8.2007 in an order u/s 120(2) and not u/s 120(4)(b) of t .....

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er under section 127 of the Act for transfer of jurisdiction from DCIT to Additional CIT. It has been contended that when a power is conferred upon two authorities concurrently one of them can exercise that power and once a decision is taken to exercise the power either by the two authorities, that exercise must be terminated by the either authority. In support of above, the learned counsel also relied upon the following decisions: a) M/s. Prachi Leathers Pvt. Ltd. vs. Additional CIT in 744 /Luc .....

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(Del), Swaran Yash vs. CIT 138 ITR 734 (Del) and Investors Industrial Corporation Ltd. s. CIT 194 ITR 548 (Bom). 4.5 The learned DR relied on the findings of the learned CIT(A) and contended that the contention raised by the assessee are not maintainable more particularly when the issue of jurisdiction was never raised during the assessment proceedings and therefore, order of assessment was within the jurisdiction framed by the Additional CIT, Range 6, New Delhi. 5. We have considered the argum .....

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er under the Act. 5.1 To examine the above contention, we consider it appropriate to firstly extract section 2(7A) of the Act which reads as under: 2(7A) Assessing Officers (7A) Assessing Officer means the Assistant Commissioner or 2 Deputy Commissioner 3 or Assistant Director 4 or Deputy Director or the Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under sub-section (1)or sub-section (2) of Section 120 or any other provision of this Act .....

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nt Director or Deputy Director or Income Tax Officer who is vested with the relevant jurisdiction by virtue of directions or orders issued under section 120(1) or 120(2) or any other provision of this Act. The second part provides that Assessing Officer means the Additional Commissioner or Additional Director or Joint Commissioner or Joint Director who is directed under section 120(4)(b) of the Act to exercise or perform all or any of the powers and functions conferred on or assigned to an Asses .....

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r under the Act. This interpretation also derives strength from the provisions contained in section 120(4)(b) of the Act which reads as under: 120. Jurisdiction of income-tax authorities (4) Without prejudice to the provisions of sub-sections (1) and (2) , the Board may, by general or special order, and subject to such conditions, restrictions or limitations as may be specified therein,-...... (b) empower the Director General or Chief Commissioner or Commissioner to issue orders in writing that .....

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le made thereunder to the Assessing Officer shall be deemed to be references to such 2[Additional Commissioner or]2 3[Additional Director or]3 Joint Commissioner [[ or a Joint Director, ]] by whom the powers and functions are to be exercised or performed under such order, and any provision of this Act requiring approval or sanction of the Joint Commissioner shall not apply. 5.3 It will be seen that the said provision provides that Board may by general or special order and subject to such conditi .....

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ommissioner or a Joint Director and where any order is made under this clause, reference in any other provision of this Act or in any rule made thereunder to the Assessing Officer shall be deemed to be references to such Additional Commissioner or Additional Director or Joint Commissioner or a Joint Director by whom, the powers and functions are to be exercised or performed under such order and any provision of this Act requiring approval or sanction of the Joint Commissioner shall not apply. 5. .....

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2 of the decision as under: 16.2 From the contents of the aforesaid provisions, it is quite clear that so far as Addl. Commissioner is concerned, firstly he has been included in the definition of Assessing Officer given under section 2(7A) of the Act with effect from 1.6.1994 as a result of retrospective amendment made by the Finance ACt, 2007 but at the same time, it is also clear that the Addl. Commissioner will be Assessing Officer as envisaged in section 2(7A) so amended only if he is direct .....

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ovisions as discussed hereinbefore that the Additional CIT could act and exercise the powers of an AO only in consequence upon delegation of such authority by the Board, Chief Commissioner of Income-tax or Commissioner of Income-tax as envisaged in the provisions of section 120(4)(b) of the Act. However, the power given to the Chief Commissioner of Income-tax or Commissioner of Income-tax being in consequence upon the delegation of power duly authorized by the Legislature, the Chief Commissioner .....

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decision of the Hon ble Delhi High Court in the case of Dr. Nalini Mahajan vs. DIT, 257 ITR 123, wherein the Hon ble High Court, while discussing the powers of Additional Director Investigation, held as under: It is now well-settled that when a power is given to do a certain thing in a certain manner, the same must be done in that manner or not at all. A delegation of power is essentially a legislative function. Such a power of delegation must be provided by the statute. The director himself for .....

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thorization to issue warrant. Therefore, the Addl. Director (Investigation) cannot be said to have any power to issue any authorization or warrant to Joint Director. Consequently, notification dt. 6th Sep. 1989 is not valid in law to the said extent. 18.2 So far as the present case is concerned, though we are concerned with the powers of Additional CIT but the proposition of law laid down by the Hon ble High Court which was, though in relation to powers of Additional Director (Investigation), is .....

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d in the case of City Garden vs. ITO (supra) whereby it was held as under: The Revenue s which has also placed its written submissions on record, stand that the Jt. CIT, Sri Ganganagar, had jurisdiction to assess the assessee u/s 120 of the Act, thus, cannot be accepted i.e., in the absence of a specific order issued in pursuance to section 120(4)(b) specifically authorizing him to exercise the powers and perform the functions as conferred on or assigned to an AO by or under the Act, or a notifi .....

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ith section 120(4)(b) of the Act. 5.7 In view of the above factual and judicial position, we are of the view that the order of assessment so framed is without jurisdiction in as much as the Additional CIT did not have the requisite mandate power under the law to frame the impugned assessment under section 143(3) of the Act. 6. The learned CIT(A) has however supported the validity of an order of assessment on the basis of an order dated 1.8.2007 under section 120(2) of the Act passed by the learn .....

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otification issued by the Central Board of Direct Taxes vide Notification No. 732(E) dated 31.07.2001 and Notification No. 267 of 2001 dated 17.09.2001 issued by Central Board of Direct Taxes, New Delhi having been so authorized, hereby direct that the Additional Joint Commissioner of Income-tax specified in column (3) of Schedule-1, hereto annexed, shall exercise the powers and perform the functions in respect of such cases or classes of cases specified in the corresponding entries in column (6 .....

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ered under the Companies Act, 1956 with the name beginning with the any of the expressions M dot, MA to MN alphabets. The perusal of the above order dated 1.8.2007 would show that it refers to notification No. 267/2001 dated 17.9.2001 which reads as under: Section 120 of the Income-tax Act, 1961 - Jurisdiction of Income-tax authorities Notification No. 267/2001 [F.No. 187/5/2001-ITAT-I] dated 17-9-2001 In exercise of the powers conferred by clause (b) of sub-section (4) of section 120 of the Inc .....

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ard of Direct Taxes notification number S.O. 732 (E) dated 31.07.2001, S.O. 880(E) dated 14.09.2001, S.O.881(E) dated 14.09.2001, S.O.882(E) dated 14.09.2001 and S.O.883(E) dated 14.09.2001 published in the Gazette of India, Part II, Section 3, sub-section (ii), Extraordinary. 6.2 Furthermore we notice the learned CIT(A) has also held that section 120(2) empowers the Board to direct any other Income Tax Authority to issue orders to exercise the powers of any other Income Tax Authority and order .....

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her words he has held that section 120(2) is a coterminous to section 120(4)(b) of the Act. 6.3 To appreciate the above, we seek to note the provisions contained in section 120(1) to 120(3) which reads as under: 120. (1) Income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or, as the case may be, assigned to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers .....

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other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it. (3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria, namely :- (a) territorial area; (b) persons or classes of persons; (c) incomes or classes of income; and .....

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all be confined and restricted to the powers and functions conferred or assigned by Board under the Act. Further section 120(2) enables the Board u/s 120(1) to even authorize an income tax authority to issue an order in writing for exercise of powers and function by subordinate income tax authorities. In other words, section 120(2) does not in any manner provide that CIT can authorize an Additional Commissioner of Income Tax to perform the functions and, exercise the powers of an Assessing Offic .....

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New Delhi is not an order u/s 120(4)(b) of the Act and is an order u/s 120(2) of the Act Moreover there are no direction in the said order so as to confer and assign the Additional Commissioner with the powers of an Assessing Officer and exercise the functions of an Assessing Officer. 7.1 On careful consideration we find merit in the said submission. This order apparently is neither an order under section 120(4)(b) of the Act and nor it otherwise directs the Additional Commissioner to exercise o .....

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on dated 14.9.2001 and 31.7.2001. It is thus apparent that the said notification is applicable in respect of Joint Commissioner authorized by Commissioner of Income Tax under notification as specified therein and no more. In the instant case it is admitted position that none of the notifications as specified therein confer powers of an Assessing Officer to the Additional Commissioner of Income Tax, Range 6, New Delhi. 7.2 We thus find merit in the claim of the appellant that in absence of an ord .....

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d its return of income for the assessment year 1974-75 which was processed by the Assessing Officer, namely, Income Tax Officer, Central Circle-I, Kanpur who completed the assessment under section 143(3)/144B of the Act on September 7, 1977 after making certain additions and disallowances to the returned income. On appeal assessee contended that the assessing authority had no jurisdiction to pass the assessment order in as much as the assessment file stood transferred from Income Tax Officer, Ce .....

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to deduce that the question of jurisdiction of the assessing authority cannot be disputed after the completion of the assessment proceedings. Alternatively, if such a question arises, the said question can be addressed by the Commissioner or the Board, as the case may be, in view of sub-section (4) of section 124 and this by necessary corollary excludes the jurisdiction of the first appellate authority or the court. 8.1 It is apparent that the said judgment has no application to the facts of the .....

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as under: 23. It has not come on record, not disclosed by the assessee at least, even before the first appellate authority in the additional memo of appeal as to when he got the knowledge of the transfer order dated July 1, 1977. The observation of the Tribunal that it is admitted that the order of transfer order is effective from July 1, 1977 is therefore, uncalled for. It has misdirected itself. The Tribunal has proceeded on a wrong footing that in the absence of date of communication of the o .....

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fact the Court finally concluded in the said judgment is as under: 27. The case on hand stands still on a weak footing inasmuch as the Income-tax Officer, CC-I had the jurisdiction when the assessment proceedings commenced and a draft assessment order was submitted to the Inspecting Assistant Commissioner. Subsequent change in the jurisdiction if any unless brought to the notice of the authority concerned, will not in any manner vitiate the assessment order in the absence of any objection with .....

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ent their Lordships have held once an issue has not been raised before the first Appellate Authority then the appellant is stopped from raising the said issue at the later stage. The said judgment is also not applicable as this issue from raised by the appellant before the Tribunal and the Tribunal had then directed the CIT(A) to adjudicate the said issue on merits. The said order of Tribunal has became final and therefore having regard to the above the said judgment does not support the case of .....

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does not have jurisdiction to exercise of power by a person who does not have jurisdiction to exercise that power, cannot work as an estoppels against him. 9. Another contention specifically raised is that there is no transfer order u/s 127 of the Act from transferring the case from the DCIT to the Addl. CIT, Range 6, New Delhi. The learned CIT(A) has held that in the cases of transfer of cases to another AO after issue of notice u/s 143(2) of the Act by another AO, the issue involves the interp .....

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rsely affected by the order. The Hon ble Delhi High Court in the above context in the case of Valvoline Cummins Ltd. (supra) has held as under: 28. On the issue of concurrent jurisdiction between the Additional Commissioner and the Deputy Commissioner, learned counsel for the assessee relied upon a decision of the Calcutta High Court in Berger Paints India Ltd. v. Asstt. CIT [2000] 246 ITR 1331. The Calcutta High Court had explained the meaning of the expression concurrent to mean two authoritie .....

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t with by one subordinate officer. . . . (p. 141) 29. It appears to us quite clearly that there is a distinction between concurrent exercise of power and joint exercise of power. When power has been conferred upon two authorities concurrently, either one of them can exercise that power and once a decision is taken to exercise the power by any one of those authorities, that exercise must be terminated by that authority only. It is not that one authority can start exercising a power and the other .....

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he balance power can be exercised by the Sessions Judge. If the High Court is seized of an application for anticipatory bail it must deal with it and similarly if the Sessions Judge is seized of an anticipatory bail, he must deal with it. There can be no joint exercise of power both by the High Court as well as by the Sessions Judge in respect of the same application for anticipatory bail. 30. In the facts of the present case, since the Additional Commissioner had exercised the power of an Asses .....

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decide the stay petition filed under section 220(6) of the Act. We are of the opinion that this was not permissible in law. 9.1 We therefore hold that applying the above judicial position that assessment has to be completed by the authority who has initiated the proceedings for making assessment and any other authority can take over the proceedings only after a proper order of transfer u/s 127(1) or 127(2) of the proceedings. The revenue has not brought any order for transfer of the proceedings .....

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News: RBI Reference Rate for US $

Forum: 3B mistake

Forum: Input credit of gst paid on urd

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.

Forum: transfer of shares

Forum: Input tax credit

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.

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

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

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: 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

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



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