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 →

Smt Gurpreet Kaur Versus Income Tax Officer

Applicability of CBDT Instruction F.No.225/26/2006-ITA-II(Pt.) dated 08.09.2010 on A0 - ex-parte order - AO while computing capital gain and denying benefit of section 54 to the assessee, has contravened the said instructions, thereby rendering the assessment order invalid? - Held that:- The proper course for the AO before making the additional enquiries would have been to take approval from the administrative Commissioner to widen the scrutiny. This, however, was not done and therefore, the act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

le of her residential house. However, as noted, in a case like the present one, where it has been picked up for scrutiny on the basis of the AIR information, the CBDT Instruction has to be strictly abided by. Herein, since the AIR information was only with regard to cash deposits of ₹ 25 lakhs and the assessee had duly and adequately explained the source thereof, the AO, it cannot be gainsaid, transgressed his competency in issuing the further query and in asking the assessee to produce Sm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that since the assessment order, passed ex-parte by the AO, was in violation of specific CBDT Instruction, the same is not legally sustainable. - Decided in favour of assessee - ITA No. 87(Asr)/2016 - Dated:- 24-3-2016 - A. D. Jain, JM For the Appellant : J. S. Bhasin, Adv For the Respondent : Shri Tarsem Lal, DR ORDER This is the assessee's appeal for the assessment year 2011-12, against the order, dated 12.01.2016, passed by the ld. CIT(A), Jalandhar. The assessee has raised the following .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of natural justice and that were the objections taken by assessee just to divert the attention of the AO to come to a logical conclusion. 3. That without prejudice to above legal grounds, the ld. CIT(A) further erred in sustaining the addition of ₹ 3,00,000/-, as made by the ITO by treating the 'biana' received against first sale deal of property, to have been forfeited. 4. That while confirming the above addition of ₹ 3 lacs, the ld. CIT(A) was not justified in disbelieving .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee having been put to undue harassment of the authorities below, by taking arbitrary stands contrary to binding CBDT instructions and also the judicial precedents, she seeks to be allowed appropriate cost in the matter." 2. The facts are that the AO issued a notice (APB-8) dated 21.09.2012 to the assessee, seeking information in connection with the return of income submitted by the assessee on 17.10.2011, for the year under consideration. The assessee was asked to produce documents, 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

information, details and evidence in support to your claim: 1. Nature of business. 2. Statement of liabilities and assets as on 01.04.2010 to 31.03.2011. 3. History of the family with complete details of month wise withdrawal for household expenses in your name and in the name of your wife/Husband and family members. 4. Details of education expenses of your children. 5. Electricity meter no. alongwith details of expenses on electricity. 6. Details of telephones installed at your residence as wel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erties sold /purchased (including agreements if any made but not matured) during the year under consideration. Submit the copy of agreement/registered deeds. 11. As per information available in this office you have made cash deposits of ₹ 50,00,000/- in your saving bank account. Please furnish the source of cash deposit along with evidence." 4. Vide reply (APB 11-12) dated 21.08.2013, the assessee stated that the questionnaire dated 15.07.2013 was seeking information with evidence on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cash deposit of ₹ 25 lakhs in the assessee's savings bank account with O.B.C, the assessee stated that she had sold her residential house for ₹ 32.25 lakhs on 15.05.2010 and the proceeds thereof, i.e., ₹ 7 lakhs received by cheque and ₹ 25.25 lakhs by cash were deposited in her savings bank account with O.B.C. In support, she filed a copy of the sale deed (APB 13-14) and a copy of her saving bank account with OBC [APB 17 (back) to 18]. 6. In the assessment order, 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

(House No. 13 /2 situated in area o, Green Mode! Town) to Smt. Balbir Kaur W/o Sh. Balwinder Singh R/o 11 .No. 359- 13, St. No.13 , Jaswant Nagar, Jalandhar and Smt. Kamaljit Kaur W/ o Sh. Lakhwinder Singh R/ o 11. No. 76 Golden Avenue, Jalandhar. The assessee also received ₹ 3,00,000 /- at the 1 lime of agreement and ₹ 9,00 ,000/- had to be received by 15. 07. 2009, as advance. The balance amount had to be received at the lime of registration deed and the date fixed for registratio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

imited to extent of AIR information. 3.2. Keeping in view the above reply of the assessee, it is clear that the assessee is not ready to furnish the requisite information. Thus it is evident that the plot purchased in the earlier year does not have not any relation with the residential house sold during the Financial Year 2010-11, and the exemption claimed u/s 54 of the Income Tax Act, 1961, amounting to ₹ 11,92,500 has wrongly been claimed, as exemption is only allowable for purchasing or .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r Singh R/o H. No. 359-B, St. No.13, Jaswant Nagar, Jalandhar and Smt. Kamaljit Kaur W/o Sh. Lakhwinder Singh R/o H. No. 76 Golden Avenue, Jalandhar on 15.03.209. The copy of agreement is placed on record. As per this agreement the assessee had received initial amount of ₹ 3 lacs on 15.03.2009. The assessee was called upon to produce the vendees-of the said agreement for their examination in order to ascertain whether the agreement was finalized or cancelled, since the assessee has failed .....

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 of the property in question as per the provisions of section 51 of the Income Tax Act, 1961." 7. The AO thus computed long term capital gain as follows: Sale consideration as per registered deed dated 07.05.2010. 32,25,000/- Add forfeited Biana as per Agreement dated 15.03.2009. 3,00,000/- Total sale consideration of the property to compute the capital gain. 35,25,000/- Less cost of acquisition of property. 5,24,508/- Less Indexed cost of improvement as 8,69,840/- Total cost of acquisiti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tion with the issue under reference. In my opinion, the AO has not violated the instructions issued by the CBDT governing AIR cases in any way as he has limited his enquiries to the source of cash deposits in the bank account of the assessee and further logical conclusion. I am also of the opinion that although the cash deposits in the bank account of the assessee were found to be explained with the help of sale proceeds of house property but the AO is also duty bound to see whether the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d not have any grudge as the AO framed the assessment as per provisions of law after allowing proper opportunity of being heard and restricting his enquiries to the issue under reference. I am also of the opinion that the judicial pronouncements relied upon by the assessee have altogether different facts from the facts of the case of the assessee and have no application in the case of the assessee. In the result, the grounds No. 1, 2 and 3 of appeal taken by the assessee are dismissed." 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

uctions dated 08.09.2010, nor of natural justice and that the objections taken by the assessee were just to divert the attention of the AO to come to a logical conclusion. 11. The ld. DR, on the other hand, strongly relied on the impugned order. 12. It has been contended that evidently, the AO has not violated the CBDT instructions governing AIR cases, since he has limited his enquiries to the source of cash deposits in the in the bank account of the assessee and it is further a logical conclusi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l conclusion. 13. The question is whether, firstly, the AO is bound by the CBDT Instruction F.No.225/26/2006-ITA-II(Pt.) dated 08.09.2010 and as to whether in the present case, while computing capital gain and denying benefit of section 54 to the assessee, the AO has contravened the said instructions, thereby rendering the assessment order invalid; and secondly, as to whether the ld. CIT(A) is correct in upholding the assessment order. 14. Section 119(1) of the Act reads as follows: "The Bo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d in letter and spirit by the AO. 14. In 'Amal Kumar Ghosh vs. Addl. CIT', 361 ITR 458 (Cal.), it has been held that when the department has set down a standard for itself, the department is bound by that standard and it cannot act with discrimination. 15. No decision contrary to the above decisions has been filed. 16. Thus, evidently, the Income Tax Authorities are bound to observe and follow the instructions of the Board. The operative word in section 119(1) is 'shall'. Judicia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Taxes, New Delhi, dated the 8th September, 2010 To All Chief Commissioners of Income Tax, All Directors General of Income Tax, Sir/Madam, Subject: Selection of cases for scrutiny on the basis of data in AIR returns and subsequent assessment proceedings-regarding. Reference is invited to Board's letter of even number dated 23 rd May, 2007 regarding scope of enquiry in the scrutiny cases selected only on the basis of information received through the AIR returns. 2. The above mentioned guideli .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

R information, the notice u/s 143(2) of Income Tax Act 1961 should clearly be stamped with "AIR Case". This should be immediately brought to the notice of all the officers working in your region. Yours faithfully, (Ajay Goyal) Director (ITA.II)" 19. As per the table at page-1 of the AO, the AIR information was regarding transaction of ₹ 25 lakhs dated 31.3.2011 (Entry No.2 in the table is, as stated, merely a repetition of Entry No.1). According to para-3 of the assessment 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

25 lakhs by the assessee in her savings bank account with OBC. Meaning thereby, that the assessee was required to explain the source of such cash deposits. The assessee explained the same as sale proceeds of her residential house amounting to ₹ 32.25 lakhs received from Smt. Naunihal Kaur, the purchaser. Her this assertion was duly supported by a copy of the concerned sale deed. 22. Now, as per the CBDT Instruction, nothing further was to be gone into by the AO, since the information rece .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d that this proceedings was limited to the extent of the AIR information. 23. Evidently, the matter of the other agreement to sell does not stand covered in the AIR information, which was regarding the cash deposits of ₹ 25 lakhs, which the assessee had adequately explained, as above. So, it was obviously not within the purview of the AO to ask the assessee to produce Smt. Balbir Kaur and Smt. Kamaljit Kaur, or to make addition of ₹ 3 lakhs, as was done. 24. The assessee, as per para .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the AIR information, which is, to reiterate, with regard to the cash deposits of ₹ 25 lakhs. 26. So, these latter enquiries by the AO are not aspects of the information received through AIR. The only aspect of such information was the source of the cash deposits, which stands adequately explained by the assessee, as above. 27. In fact, what the AO did was to widen the scrutiny. Now, para 2 of CBDT Instruction is specific when it states that where it is felt that apart from the AIR infor .....

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     ↓  

Forum: 3B mistake

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

Forum: Manpower Service provider

Article: 20 Things You must know about E Way Bills in GST Law

Article: ‘DUTY DRAWBACK’ CANNOT BE EQUATED WITH ‘REBATE OF DUTY’

Forum: GST on Notional rent

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

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.

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 $

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



|| 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