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 →

M/s Karnavati Export Pvt. Ltd. Versus Income-tax Officer, Ward-4 (2) , Ahmedabad

Set off of business loss against interest income taxable under the head income from other sources - non existence of business activity - Held that:- As assessee has accepted that no business activity has been carried out during the year under appeal and the expenditure claimed in the profit and loss account was a write off of asset which was standing in the books of account. Such write off could have been allowed only if there had been a business activity running during the year. We, therefore, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Mr. Lala Philips, Sr.DR ORDER PER Manish Borad, Accountant Member. This is an appeal filed by the assessee against the order of CIT(A)-VIII, Ahmedabad, dated 27.7.2013, in appeal No.CIT(A)- VIII/ITO/Wd-4(2)/43/12-13 for Asst. Year 2008-09. Assessment was framed u/s 143(3) of the I.T. Act, 1961 (in short the Act) on 25/6/2010 by ITO Ward-4(2), Ahmedabad. 2. Following grounds have been raised in this appeal :- 1. That on the facts and in law or in the circumstances of the case, the ld. CIT has err .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cessation of the activity due to adverse conditions cannot be considered as cessation of the business. 4. That the ld. CIT wrongly presumed that these licenses have not been included as income in earlier years. 5. That the ld. CIT has not considered the evidences produced before him in regards of inclusion of these licenses in previous year income. 6. That on the facts and circumstances of the case, the ld. CIT erred in sustaining the same assessment as passed by the ld. AO. As such the assessme .....

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 issued on 25.8.2009 and duly served upon the assessee on 27.8.2009. During the course of assessment proceedings on verification of profit and loss account it was observed by the Assessing Officer that assessee has stopped its business activities of exporting dyes and chemicals during financial year 2006- 07 and no business activities were carried out during the year under appeal i.e. Asst. Year 2008-09 relevant to F.Y. 2007-08. However, the assessee has claimed custom duty expenses in relation .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

peal before CIT(A) who confirmed the addition made by Assessing Officer by observing as under :- 3.3 Decision I have carefully considered the facts of the case, the assessment order and the written submission of the appellant. The appellant had claimed deduction from income on account of utilized duty payment benefit which was received through advance license DEPB license and DFRC license. It was claimed by the appellant that since the business was closed it could not use the benefit and 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

siness has been closed and no income from the business from which these incentives were earned has been shown. The appellant has not demonstrated as to how these incentives which are now proposed to be written off, were included in the income of earlier years. Moreover the interest income has been taxed by the AO as income from other sources and there is no relation of the entitlement with the income from other sources, it cannot be said that this expenditure has been incurred for earning the in .....

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 lower authorities that it has stopped its business activities during Financial Year 2006-07 and the unutilized import license which has lapsed due to lapse of date of validity and the same has been written off in the profit and loss account and this write off of expenditure of ₹ 2,92,510/- has been claimed for set off against income from other sources and the lower authorities have rightly disallowed the claim of set off and, therefore, the appeal of assessee should be dismisse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

business during the year and incurs losses during the year from the business then as per provisions of section 71 of the Act such business loss can be set off against income from any other head except income from capital gains. From perusal of assessment order we find that assessee has submitted following before the assessing authority during the assessment proceedings :- From F.Y. 2006-07 assessee company stop its business activity of exporting dyes and chemicals due to ups and down in the mark .....

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