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 →

Asstt. Commissioner of Income Tax, Circle, Panipat Versus Shri Anil Dutt, Shri Sunil Dutt C/o. M/s. Vogue Fabrics

Loss claimed as business loss - whether the provisions of section 94(7) are applicable in respect of loss claimed by the assessee? - CIT(A) allowed the claim - Held that:- In the instant case, the assessee has purchased units of SBI Mutual Fund on 27.12.2004 and the same were sold on 29.03.2005. The record date of dividend in the case of SBI Mutual fund for the relevant year was 28.03.2005. Based on these dates, the ld. AR submitted a chart of calculation of no. of days of purchase of securities .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Act, all the three conditions have to be fulfilled simultaneously. As all the three conditions of section 94(7) are not fulfilled, we hold that loss of sale of securities to the extent of dividend income cannot be disallowed or ignored invoking provisions of section 94(7) of the Act in the case of the assessee. Same view has also been upheld in the case of CIT Vs. Alka Bhosle [2010 (6) TMI 16 - BOMBAY HIGH COURT]. There is no error in the findings of the CIT(A) on this issue. - Decided ag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

S certificate - Held that:- As it is a matter of verification of the TDS certificate and if TDS has been deducted in excess by a particular deductor and the same has been deposited in the Government Account, the assessee cannot be faulted for that. In view of the above, we remit this matter back to the file of ld.AO and direct him to verify the facts of tax deducted and interest recorded in the TDS certificate. The ld. AO may also verify the TDS and corresponding interest income from the records .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, first appeal is of the Revenue, which is directed against order dated 04.11.2008 of the learned Commissioner of Income-tax (Appeals), Karnal. Second and third appeals are cross appeals of the Revenue and the assessee, which are directed against another order dated 04.11.2008 of the learned Commissioner of Income-tax (Appeals), Karnal. Both impugned orders dated 04.11.2008 are in respect of Assessment Year 2005-06. Facts and circumstances of both the cases in appeal are similar. The grounds rai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e circumstances of the case, the Commissioner of Income tax (Appeals) has erred in law in reducing the disallowance of expenses from Rs.l,33,682/- to ₹ 25,000/- in view of the provisions of section 14A the Income tax Act, 1961. 3. The Revenue in ITA No. 197/Del/2009 has raised following grounds: 1. On the facts and in the circumstances of the case, the Commissioner of Income tax (Appeals) has erred in law in allowing loss claimed as business loss on the sale of securities to the extent 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

ng it with Tax free interest income of the assessee and the Ld C.I.T (Appeals) has un-judiciously confirmed the same to the extent of ₹ 50,000/-. 2. That the Assessing officer has arbitrarily & without any basis disallowed interest expenses of ₹ 4,02,772/- and the Ld C.I.T (Appeals) has failed to properly consider and adjudicate the same. 3. That the Assessing officer without properly appreciating the factual position has arbitrarily increased the interest income of the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted income of ₹ 31,30,110/- from the dividend and ₹ 38,38,304/- from interest on tax free bonds. The case of the assessee was selected for scrutiny. In the course of the scrutiny proceedings, the learned Assessing Officer noticed that the assessee had sold units of SBI Mutual Fund for ₹ 79,10,623/- on 29.03.2005, which were purchased for ₹ 1,10,00,000/- on 27.12.2004 , resulting into a loss of ₹ 30,89,377/-. The assessee also earned a dividend income of ₹ 31,1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

O also made disallowance of ₹ 1,33,682/- in terms of section 14A of the Act for expenditure incurred towards earning tax-free income. 7. Aggrieved, the assessee filed an appeal before the learned Commissioner of Income-tax (Appeals) [in short CIT(A)‟], who allowed the loss of ₹ 31,10,110/- and reduced the disallowance u/s 14A of the Act from ₹ 1,33,682/- to ₹ 25,000/-. Aggrieved, with the above findings of the ld.CIT(A), the Revenue has preferred this appeal before .....

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 there was no dispute as regards to activity of purchase and sale of securities carried out by the assessee held as trading activity, but he contended that loss has been disallowed invoking section 94(7) of the Act by the ld. AO, which is not applicable in the case of the assessee, being purchase of mutual funds under reference beyond three months from the record date of dividend, and therefore the ld.CIT(A) has rightly allowed the loss as per finding given at page 6 of his order . The ld.AR .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed as under:- Where- (a) any person buys or acquires any securities or unit within a period of three months prior to the record date; (b) such person sells or transfers- (i) such securities within a period of three months after such date; or (ii) such unit within a period of nine months after such date; (c) the dividend or income on such securities or unit received or receivable by such person is exempt, then, the loss, if any, arising to him on account of such purchase and sale of securities or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hit by the section. 11. Now, let us examine whether the assessee falls in net of all the three conditions of the section 94(7) of the Act. In the instant case, the assessee has purchased units of SBI Mutual Fund on 27.12.2004 and the same were sold on 29.03.2005. The record date of dividend in the case of SBI Mutual fund for the relevant year was 28.03.2005. Based on these dates, the ld. AR submitted a chart of calculation of no. of days of purchase of securities from the record date of dividend .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ons have to be fulfilled simultaneously. As all the three conditions of section 94(7) are not fulfilled, we hold that loss of sale of securities to the extent of dividend income of ₹ 31,10,110/- cannot be disallowed or ignored invoking provisions of section 94(7) of the Act in the case of the assessee. Same view has also been upheld in the case of CIT Vs. Alka Bhosle by the Hon‟ble Bombay High Court, reported in 325 ITR 550. In other two cases relied upon by the ld.AR also similar vi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ax free bond, which was claimed as exempted. The assessee also claimed total expenditure of ₹ 3,62,134/- in profit and loss account. The ld.AO disallowed expenditure of ₹ 1,33,682/- in terms of section 14A of the Act, out of the total expenses of ₹ 3,62,134/- claimed by the assessee in profit and loss account, in proportion of interest income from tax free bond to the total income. Before the CIT(A) the assessee submitted that no expenses were incurred in respect of earning tax .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e ld.AO, whereas, the ld. AR placed his reliance on the order of the ld. CIT(A) and submitted that the assessment year being prior to AY 2008-09, the Rule 8D of the Income-tax Rules was not applicable in the case of the assessee. He further submitted that the learned CIT(A) has already confirmed a reasonable amount of expenses. 14. After considering the rival submissions, we are of the opinion that the disallowance upheld by the ld. CIT(A) is justified in view of the nominal expenses incurred by .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e facts of the case in hand are also similar to the case in ITA No.196/Del/2003 Therefore, following the findings given in appeal in ITA No.196/Del/2003, both the grounds of the Revenue are dismissed. 18. Now, we take up the appeal of the assessee in ITA No.216/Del/2003. 19. Ground No.1 of the appeal of the assessee is covered by findings given in ground No.2 of the Revenue‟s appeal in ITA No.197/Del/2003. Since ground No. 2 of the Revenue‟s appeal has already been dismissed, therefo .....

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     ↓  

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

Forum: GSTR 3B Rectification

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

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

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

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

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