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 →

V.S.P. Stores Private Limited Versus DCIT, circle-17 (1) , New Delhi

Disallowance of expenses - business expediency - Held that:- In the case of CIT versus Rajendra Prasad Moody (1978 (10) TMI 133 - SUPREME Court ), while deciding the issue for deduction for expenses under the head income from other sources, the Hon’ble court has held that what section 57(iii) requires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income and the section does not require that this purpose must be fulfilled in order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ordingly the findings of the Ld. Commissioner of Incometax( Appeals) on the issue in dispute are reversed.

Disallowance of depreciation - building was let out and the rental income from the same was claimed under the head income from house property - Held that:- As the building was let out and therefore the depreciation corresponding to that part cannot be allowed to the assessee. In subsection (2) of section 38 of the Act, it is clearly laid down that where any building is not exclus .....

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 provisions of section 38(2) of the Act. - ITA No. 4613/Del/2011 - Dated:- 30-3-2016 - Sh. H. S. Sidhu, Judicial Member And Sh. O. P. Kant, Accountant Member For the Appellant : Sh. BN Goswami, Advocate For the Respondent : Sh. Sarabjeet Singh, Senior DR ORDER Per O. P. Kant, A. M. This appeal of the assessee is directed against the order dated 5th August, 2011 of the Ld. Commissioner of Income-tax( Appeals)-XIX, New Delhi for assessment year 2008-09 raising following grounds of appeal: 1. 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

amed being bad in law and facts merits to be set aside. 2. The facts in brief are that the assessee filed return of income declaring income of ₹ 21,23,090/-on 29/09/2008. The income declared was comprised of rental income, interest income and excess provision written back . The case was taken up for scrutiny and notice under section 143(2) of the Income-tax Act, 1961 ( in short the Act ) was issued and served within the stipulated period. In the course of scrutiny proceedings, the Assessin .....

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 query of the Assessing Officer as to why the loss claimed under the head profit and gains of business may not be disallowed, the assessee submitted that the assessee company had been doing business and earned huge commission from the services provided to the foreign party in past years. The assessee company filed copies of the relevant assessment order when the receipt of the commission was taxed. However, the Assessing Officer did not accept the contention of the assessee and made disal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Appeal) directed the Assessing Officer to verify the record and allow the brought forward losses in accordance with the provisions of the Act. Aggrieved, the assessee is in appeal before the Tribunal. 3. In ground No. 1, the assessee has challenged both the disallowances i.e. the disallowance of expenditure of ₹ 12, 51, 610/-and disallowance of depreciation of ₹ 94,330/-. In ground No. 2 the assessee has challenged the disallowance of expenses of ₹ 12, 51, 610/-. 4. Before us, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssional services to foreign parties. The Ld. Authorised Representative, further submitted that in assessment year 2002-03, the assessment was completed under section 143 (3) of the Act i.e. the scrutiny assessment and all the expenses under the head profit and gains of business were duly allowed by the Assessing Officer. In subsequent assessment years i.e. 2012-13 and 2014-15 also such expenses have not been disallowed and therefore in view of the principle of consistency, also such expenses 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

on ble Supreme Court in the case of Commissioner of Income-tax versus Rajendra Prasad Moody reported in 115 ITR 519 (SC). On the other hand, the Ld. Senior Departmental Representative, relying on the order of the lower authorities submitted that no business or professional receipts were shown by the assessee during the year and as such no deduction for expenses towards business or profession was allowable to the assessee. 5. We have heard the rival submissions and perused the material on record. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ier and subsequent years and the claim of the assessee has even been allowed in the scrutiny assessment completed in assessment year 2002-03. Thus, we are of the considered opinion that the principle of consistency requires that the assessee should have been allowed the similar expenses claimed under the head profit and gains from business or profession in the year under consideration also. The jurisdictional High Court in the case of CIT versus Dalmia Promoters Developers Private Limited (supra .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ings, each assessment year being a unit by itself, yet in cases, where a fundamental aspect permeating through different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it may not be appropriate to allow that position to be changed in a subsequent year. Their Lordships extracted with approval the following passage from Hoystead vs. Commr. of Taxation (1926) AC 155 (PC) : "Parties are not perm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

." 8. The Court reiterated the following observation made by it in Parashuram Pottery Works Co. Ltd. vs. ITO. 1977 CTR (SC) 32 : (1977) 106 ITR 1 (SC) : "At the same time, we have to bear in mind that the policy of law is that there must be a point of finality in all legal proceedings, that stale issues should not be reactivated beyond a particular stage and that lapse of time must induce repose in and set at rest judicial and quasijudicial controversies as it must in other spheres 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

y well settled. For rejecting the view taken for the earlier assessment years, there must be a material change in the fact situation. There is no gainsaying that the previous view will have no application even in cases where the law itself has undergone a change but before an earlier view can be upset or digressed from, one of the two must be demonstrated namely a change in the fact situation or a material change in law whether enacted or declared by the Supreme Court. The CIT(A) and the Tribuna .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g that the view taken for the earlier assessment years continued to be applicable even for the year under consideration. 6. Further, from the details filed for the earlier and subsequent years, we find that the assessee was engaged in professional activity and maintained infrastructure in the form of office space and also incurred travelling expenses. It is quite possible that the assessee may not have been able to bring business or professional receipt during the year, however, he was required .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ires is that the expenditure must be laid out or expended wholly and exclusively for the purpose of making or earning income and the section does not require that this purpose must be fulfilled in order to qualify the expenditure for deduction and it does not say that the expenditure shall be deductible only if any income is made or earned. The same principle applies for allowability of deduction of expenditure under the head profit and gains of business. Thus in our considered view the expenses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

same was claimed under the head income from house property and thus necessary deduction has already been allowed under that head. Before the Assessing Officer, the assessee submitted that depreciation was claimed on the building which was for the personal use of the assessee, notwithstanding the fact that the substantial portion of the building was rented out and the standard deduction under section 24 was claimed and therefore the depreciation claimed in the circumstances merits to be suitably .....

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