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

The Commissioner of Income Tax-5 Versus M/s. Jet Airways (India) Ltd

Addition u/s 41 - cessation or remission of liability - Held that:- There are concurrent findings of fact that the lease for the air crafts has been extended for further period and liability of expenses at the time of redelivery of the aircrafts has not ceased. Thus, the same would have to be provided for, as it is likely to be incurred when the lease expires and said four air crafts are redelivered. Section 41(1) of the Act has application only when there is cessation and/or remission of liabil .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ome - Held that:- The Tribunal, on examination of the order of the CIT(Appeals) upheld the same as the amount of ₹ 68.50 lacs was erroneously shown as prior period income and had rectified the same subsequently. We find that both the CIT(Appeals) as well as the Tribunal have arrived at concurrent findings of fact. The Revenue has not been able to show that the same is in any way perverse and/or arbitrary.

Disallowance of business expenditure - Held that:- We find that the CIT(Ap .....

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, the Assessing Officer was not justified in not considering the claim only on the ground that the claim of ₹ 25.22 crores for expenditure was made only in the revised return of income. It is not disputed before us that the expenditure as claimed is eligible for deduction under Section 37(1) of the Act as it has been expended exclusively for the business of the Respondent-Assessee. - INCOME TAX APPEAL NO.2111 OF 2013 - Dated:- 11-1-2016 - M.S.SANKLECHA AND B.P.COLABAWALLA, JJ. For The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

unal is justified in deleting the addition made on account of prior period expenses at ₹ 1,48,73,553/-? 2) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made on account of leave encashment in computing the book profit u/s.115JB of the Act at ₹ 11,79,38,279/-? 3) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made by the Assessing Officer 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

umulated provision on account of redelivery of aircraft acquired on operating lease at ₹ 3,28,55,249/- 6) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition of 19,47,65,816/- made by the Assessing Officer on account of treating the provision for obsolescence of as contingent liability while computing profit u/s 115JB? 7) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in dele .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fixtures as capital expenditure by the Tribunal at ₹ 2,85,09,245/-? 10) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made on account of prior period expenses at ₹ 68,50,425/-? 11) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made on account of Directors personal expenses at ₹ 11,65,950/-? 12) Whether on the facts and in the circu .....

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 Tribunal is justified in deleting the addition made on account of aircraft taken on finance lease at ₹ 25,22,07,223? 15) Whether on the facts and in the circumstances of the case and in law the Tribunal is justified in deleting the addition made on account of sale and lease back of five aircrafts at ₹ 100,52,85,728/- u/s. 41(1) of the Act? 3 Regarding Question 1:- (a) According to the Respondent, it had disputes with the parties in respect of prior period expenses which were sett .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ering India Ltd v/s JCIT reported in (2006) 5 SOT 0616) and also by this Court in the case of Commissioner of Income Tax, Delhi v/s Nagri Mills Co. Ltd reported in 1958 (33) ITR page 681. The issue was therefore restored to the Assessing Officer for verification. (c) The grievance of the Revenue is that as no evidence was produced before the authorities, the prior period expenses should have been disallowed. (d) We find that the impugned order of the Tribunal has in fact restored the issue to th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

likely to be incurred on redelivery of the four air crafts taken on lease. During the relevant assessment year, the lease period in respect of the four aircrafts was to expire. However, the lease of the four air crafts was extended/renewed for a further period. As a result, the Respondent was not required to redeliver the four aircrafts to the lessor during the subject assessment year. On the basis of the above, the Assessing Officer invoked Section 41(1) of the Act and held that there was cessa .....

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 was no occasion to invoke Section 41(1) of the Act and the addition was deleted. (c) On further Appeal by the Revenue, the Tribunal upheld the findings of the CIT(Appeals). The Tribunal by the impugned order holds that as a matter of fact the period of lease has been extended in respect of the four air crafts, and therefore, the provisions made for redelivery expenses could not be said to have ceased for the purposes of invocation of Section 41(1) of the Act. (d) The learned counsel for the R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ere is cessation and/or remission of liability incurred (which has been duly paid and/or provided for) in the subsequent years, consequent of which some benefit in cash or in any other manner were obtained by the party whose liability has ceased. In this case, in fact, there is no cessation or remission of liability nor any benefit obtained by the Respondent-Assessee for the purposes of Section 41(1) of the Act to be invocable. (f) Accordingly, the question as framed does not give rise to any su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

riod income. The Assessing Officer did not accept the reduction of an amount of ₹ 68.50 lacs by rectification and held it to be a part of prior period income which he subjected to tax. (b) Being aggrieved, the Respondent preferred an Appeal to the CIT(Appeals). The CIT(Appeals) on examination of the facts noted that the Appellant had subsequently realized that the amounts which were written back on account of provision for inventory were excessive to the extent of ₹ 68.50 lacs and ac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

before the Tribunal did not controvert the findings of the fact arrived at by the CIT(Appeals). The Tribunal, on examination of the order of the CIT(Appeals) upheld the same as the amount of ₹ 68.50 lacs was erroneously shown as prior period income and had rectified the same subsequently. We find that both the CIT(Appeals) as well as the Tribunal have arrived at concurrent findings of fact. The Revenue has not been able to show that the same is in any way perverse and/or arbitrary. (d) Acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fuel for staff vehicle, hotel accommodation, parking charges, foreign travel, car hire charges, business promotion expenses, driver's expenses, telephone expenses, repair and maintenance expenses etc. On examination, the CIT(Appeals) found that they were allowable as business expenditure, and therefore, deleted the addition of ₹ 11.65 lakhs. (c) On further Appeal by the Revenue, the Tribunal upheld the findings of CIT(Appeals) and inter alia observed that from the assessment year 2003- .....

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 and pleads that the appeal be admitted. (e) We find that the CIT(Appeals) as well as the Tribunal have arrived at findings of fact that the expenses of ₹ 11,65,950/- were incurred for the purposes of Respondent's business. The concurrent finding of fact has not been shown to be in any way perverse and/or arbitrary to give rise to any substantial question of law. Accordingly, above question is not entertained. 7 Regarding Question No.14:- (a) The Respondent-Assessee had claimed addit .....

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 Act. The CIT(Appeals) further holds that the said expenditure has been allowed in the earlier years by the Assessing Officer i.e. for the Assessment year 2004-2005, and therefore, deleted the addition of ₹ 25.22,70,223/-. (c) On further Appeal by the Revenue, the Tribunal upheld the findings of the CIT (Appeals), as the only reason for not allowing these expenses on the part of the Assessing Officer was that it was claimed only in the revised return of income. It is not the case of the R .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 25.22 crores for expenditure was made only in the revised return of income. It is not disputed before us that the expenditure as claimed is eligible for deduction under Section 37(1) of the Act as it has been expended exclusively for the business of the Respondent-Assessee. (e) In the above view, the question as framed does not give rise to any substantial question of law. Accordingly, not entertained. 8 Regarding Question No.15:- (a) During the subject assessment year, the Respondent- 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

efit of ₹ 100.52 Crores a result of the difference between sale consideration received and installment payable which is now not payable. This benefit of ₹ 100.52 Crores being chargeable to tax under Section 41(1) of the Act. (b) Being aggrieved, the Respondent-Assessee preferred an Appeal to the CIT(Appeals). By an order dated 30th March, 2011, the CIT(Appeals) held that the Respondent-Assessee was the owner of the said aircrafts as held in the earlier assessment years and the claim .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

upheld the findings of the CIT(Appeals) holding that the Respondent-Assessee was the owner of these five air crafts and that depreciation has been allowed in the earlier years. The ownership of the Respondent-Assessee in respect of these aircrafts had been upheld up to the Tribunal in order passed in the earlier years. This was not the case of cessation of any liability. In the above view, the Tribunal upheld the order of the CIT(Appeals) and held that Section 41(1) of the Act would not apply. .....

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     ↓  

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.

Forum: Input tax credit

Forum: Cess paid instead of SGST

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

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

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.

Forum: GST rates on mobile recharge business

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

Forum: import purchase

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 $

Forum: 3B mistake

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.

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.



|| 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