Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

SMT. ANITA KUMAR Versus INCOME-TAX OFFICER

Levying penalty under section 271(1)(c) - Assessing Officer held that the assessee had routed her undisclosed income in the garb of scrap sales and had also made incorrect claim of deduction in respect of the amount of alleged scrap sales - claim of the assessee for deduction under section 80-IC denied - Held that:- The assessee submitted supportive bills and vouchers to justify the receipt of amount from sale of scrap before the Commissioner of Income-tax (Appeals) although the claim of the ass .....

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 assessee submitted details of ledger account, bills and vouchers during quantum appellate proceedings which cannot be ignored. Therefore, conclusion of the Assessing Officer that the assessee routed her own money earned from undisclosed sources in the garb of sale of scrap for levy of penalty under section 271(1)(c) is not sustainable. Finally, we hold that the penalty was imposed on the assessee without any justified reason and the same is not sustainable in view of our foregoing discussion .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncome-tax (Appeals)-XXVI, New Delhi dated December 17, 2012 pertaining to the assessment year 2008-09 by which penalty order dated December 20, 2010 passed under section 271(1)(c) of the Income-tax Act, 1961 has been upheld and penalty has been confirmed. 2. The sole ground raised by the assessee in this appeal reads as under : "1. That the hon'ble Commissioner of Income-tax (Appeals) has erred on facts and in law in confirming the order of the Assessing Officer of levying penalty 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

rofit. During the course of assessment proceedings, the Assessing Officer found that in the miscellaneous income, the assessee had shown a sum of ₹ 16,28,174 on account of sale of scrap and a sum of ₹ 33,674 on account of interest. The Assessing Officer asked the assessee to produce the bills in respect of scrap sales but the assessee failed to produce the same to support his claim. Therefore, the Assessing Officer held that the assessee had routed her undisclosed income in the garb .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ficer initiated penalty proceedings and after affording due opportunity of hearing for the assessee, the Assessing Officer concluded that the explanation and citations relied on by the assessee are not acceptable and he is satisfied that the assessee has concealed true particulars of her income and has furnished inaccurate particulars of her income and, therefore, the assessee is liable to penalty under section 271(1)(c) of the Act read with Explanation 1 thereto. 5. Being aggrieved by the above .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rned counsel for the assessee submitted that as per the decision of the hon'ble High Court of Madras in the case of Fenner (India) Ltd. v. CIT (No. 2) [2000] 241 ITR 803 (Mad), the profit from sale of scrap is eligible for deduction under section 80HH of the Act, therefore, in the similar set of facts and circumstances of the present case, the amount earned from sale of scrap should have been allowed as deduction under section 80-IC of the Act which is similar to the provisions of section 80 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

claim of the assessee for deduction is disallowed, then also penalty is not leviable under section 271(1)(c) of the Act. Learned counsel further pointed out that in the preceding assessment year, i.e., assessment year 2007-08 in the assessment order under section 143(3) of the Act dated December 11, 2009, the Assessing Officer accepted and allowed the amount of sale of scrap which is incidental having direct nexus with the activities of the industrial undertaking. 7. Learned counsel has further .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essing Officer are factually incorrect as the assessee was not afforded due opportunity of hearing during the assessment proceedings and therefore during first appellate proceedings before the Commissioner of Income-tax (Appeals), the assessee submitted an application under rule 46A of the Income-tax Rules, 1962 with additional evidence wherein the assessee submitted written submissions along with ledger account of miscellaneous income and bills of scrap sale to M/s. Atul Casting Pvt. Ltd., Nala .....

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 and cogent reason and upheld by the Commissioner of Income-tax (Appeals) does not survive and therefore, the same may be directed to be deleted. 8. Replying to the above, the learned Departmental representative supported the orders of the authorities below and submitted that since despite sufficient opportunity, the assessee could not produce relevant bills and vouchers supporting the amount of sale of scrap, therefore, the Assessing Officer was justified in holding that the assessee has rout .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re, under Explanation 1 to section 271(1)(c) of the Act, the penalty was rightly imposed by the Assessing Officer and the Commissioner of Income-tax (Appeals) was quite justified in confirming the same. 9. On a careful consideration of the above submissions, at the very outset, we note that although the assessee could not produce bills and vouchers pertaining to the sale of scrap but the same details was submitted by the assessee before the Commissioner of Income-tax (Appeals) which was also con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

er in the order dated December 11, 2009 passed under section 143(3) of the Act, therefore, similar kind of claim which could not be supported by way of bills and vouchers during the subsequent year cannot be held as concealment of particulars of income or furnishing of inaccurate particulars of income of the assessee, especially when the required explanation/bills and vouchers were submitted subsequently before the Commissioner of Income-tax (Appeals) during the first appellate proceedings. 10. .....

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 profits from sale of scrap earned by the assessee during the year under consideration, therefore, this issue is academic to the present case. At the same time, from the assessment order for the assessment year 2007-08, we note that the Assessing Officer has not disputed the amount of ₹ 5 lakhs which was earned by the assessee from sale of scrap and although the Assessing Officer has denied deduction under section 80-IC of the Act to the assessee for this amount for the assessment year 20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

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)

Forum: Input tax credit

Forum: GST on Notional rent

Forum: GST ON SALES PROMOTION

Forum: 3B mistake

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

Forum: PROCEDURE FOR SHIFTED OF FINISHED GOODS FROM AP KARNATAKA TO UP

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

Forum: Input credit of gst paid on urd

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

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.

Highlight: Deduction u/s 10B - initial AY - Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’.



|| 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