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 →

Menlo Worldwide Forwarding India Pvt. Ltd. Versus DCIT, Circle-6 (1) , New Delhi and Vica-versa

Penalty u/s 271(1)(c) - Held that:- CIT (A) while confirming the penalty imposed by the Assessing Officer, has over looked the facts that the assessee has filed revised return when the assessee company itself came to the knowledge that there was an error in its return for A.Y 2003-04. The fact that company has at no stage hidden or intentionally acted which shows that they have deliberately filed the inaccurate, inadequate returns u/s 271(1)(c). If there is any inaccurate particulars of income f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is act shows that it is not intentional furnishing of inaccurate particulars of income on behalf of the assessee. The case laws placed before us are also in support of the assessee’s case. - Decided in favour of assessee - I.T.A .No.-1755/DEL/2012, I.T.A .No.-3052/DEL/2011 - Dated:- 16-2-2016 - SHRI J. S. REDDY, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER For The Appellant : Sh. S.K. Aggarwal, CA. Ms. Meha Chauhan, CA For The Respondent : Sh. Amrit Lal, SR. DR ORDER PER SUCHITRA K .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(1)(c) of the I.T Act, on account of addition of ₹ 17,42,063/- made by disallowing expenses incurred by reimbursement of communication fees paid to the directors of the assessee company. 3. Ld. CIT(A) ignored the finding recorded by the Assessing Officer and the fact that assessee furnished inaccurate particulars of its income by claiming non-allowable expenses on account of reimbursement of communication fees. 3. The grounds of appeal for assessee are as under: - (ITA NO. 1755/Del/2012) 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

A) and the Hon ble Income Tax Appellate Tribunal ( ITAT ). The same has been done ignoring the fact that the appellant has made a full and true disclosure of all facts in respect of the claims made in the return of income. Accordingly, there was neither any concealment of income no furnishing of any inaccurate particulars of income. 3. That, on the facts and circumstances of the case and in law, the order passed by Ld. CIT (A) confirming the penalty ignoring the fact that the appellant has made .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

her there was failure on the part of the appellant to offer any explanation or that the explanations offered were false or that the explanations given by the appellant were not bonafide, when admittedly full and true disclosure was made in the return of income and during the assessment proceedings by the appellant. 5. That, on the facts and circumstances of the case and in law, the order passed by Ld. CIT (A) confirming the penalty on the ground that the disallowances/additions made by A.O in 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

996. During A.Y 2003-04, the appellant company was engaged in the business of freight forwarders providing services of freight handling, transportation to the exporters and importers etc. It entered into numerous transactions with its overseas group companies in the course of providing freight forwarding services to its customers for export as well as import of cargo on reciprocal basis. 5. The assessee company discontinued the business with effect from 1 April 2006 pursuant to global takeover 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

to the filing of above return of income for A.Y 2003-04 in the course of audit of books of accounts and financial statements for F.Y 2003-04 relevant to A.Y 2004-05 the auditors found that the revenue in respect of transactions with overseas group companies in the last quarter of F. Y 2002-03 relevant to A. Y 2003-04 was overstated by net amount of ₹ 137, 73,479/-. Accordingly in the books of accounts for A.Y 2004-05, the error was rectified by reducing the revenue in Profit and Loss accou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

disposed off the appeal vides his order dated 21st August 2007, partly allowing the appeal. The Hon ble ITAT disposed off the assessee s and departments appeal by combined order dated 13th October 2010. The appeal against the order of Hon ble ITAT was not preferred due to discontinuance of business and as all the employees of the assessee had left. 9. The A.O passed an order u/s 271(1)(c) of the Act dated 30th March 2009 levying a penalty aggregation to ₹ 58,53,210/- alleging furnishing 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

ategorically stated that in quantum appeal, the ITAT deleted the said disallowance as not being the payment for royalty or fees for technical services & CIT(A) held that as disallowance has been deleted by the ITAT, there is no escapement of income and, therefore, no penalty should be levied and therefore, we hold that the revenue s appeal does not sustain as the quantum appeal on this issue has been decided against the revenue and penalty will not stand for. 11. The AR submitted that the as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

or himself has admitted that there was an error and no authority whatsoever has stated that the revised return were false. Therefore, there was a full disclosure on part of the assessee. The assessee relied on the judgment of Sherwani Hospitalities Ltd VS. CIT 2013-35 Taxman.com 271 Delhi High Court wherein in Para 19 &20 it is held that it is not uncommon and unusual for the assessee to bonafidely claim a particular expenditure as revenue deduction and expense but not succeed. Every additio .....

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 under law should not lead to penalization when the assessee had furnished full details in the return itself in the claim is debatable, reasonably plausible or may will have been accepted. The assessee also relied upon the CIT Vs. Reliance Petro Product Pvt. Ltd. 2010 322 ITR 158 Hon'ble Supreme Court. The assessee also relied upon the Hon ble Madras High Court decision in the case of CIT Vs. N. Nagraj Ball wherein the Hon ble Karnataka High Court again reiterated the similar position. 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

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

News: Notification Issued For GST Actionable Claim On Branded Food Products

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

Forum: Duty Drawback- Urgent

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

Forum: GST Invoice

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.

News: GST implementation smoother than expected: Jaitley

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

Forum: 3B mistake

Forum: Input tax credit

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

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| 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