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 →

DPR Charitable Trust Versus CIT-II, Jabalpur

Revision u/s 263 - AO has not examined the genuineness of the trust and application of fund for charitable purposes - reference to DVO - Held that:- We find that there is no whisper in the notice issued by the Commissioner of Income Tax under sec. 263 of the Act for the same. No material has been brought before us to show that the assessee was allowed any opportunity of hearing in respect of the above issue before passing the impugned order. The Commissioner of Income Tax has nowhere recorded 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

TMI 4 - HIGH COURT DELHI ], where it was held that the issue which did not form part of the show-cause notice and the assessee was not confronted with it, the same cannot form basis for revision of assessment order under sec. 263 of the Act. The order under sec. 263 cannot travel beyond the show-cause notice.

Coming to the issue of investment in construction, we find that the construction was not completed during the year under consideration. The construction was continued in the nex .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inspected the property after 31/03/2010 and the expenditure was incurred by the assessee in the construction in Financial Year 2009-10 also. Therefore, it was not possible on the part of the DVO to quantify the exact expenditure which was incurred in the Financial Year 2008-09. Moreover, we find that no defect in the books of account maintained by the assessee for the year under consideration could be pointed out either by the Assessing Officer or by the Commissioner of Income Tax.

I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt made in the construction qualifies as exemption under sec. 11 of the Act being utilized for charitable purposes. The Departmental Representative could not controvert the above contention of the assessee and could not show how the issue under appeal resulted in any prejudice to the interest of the Revenue. - Decided in favour of assessee - ITA No. 86/JAB/2014 - Dated:- 7-4-2016 - Shri N. S. Saini, Hon ble Accountant Member And Shri N. K. Choudhry, Hon ble Judicial Member For the Petitioner : S .....

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. The order passed under sec. 263 is without jurisdiction should be annulled. 2. That the order under sec. 263 is bad in law as the CIT is not permitted to substitute his opinion in preference to judicial discretion of the Assessing Officer. The order under sec. 263 should be quashed. 3. That there is no error in the assessment as no discrepancy was found either by the Assessing Officer or even by CIT in spite of survey under sec. 133A, no rejection of accounts thus the reference under sec. 142 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ound or grounds at the time of hearing of this appeal. 3. In all the grounds of appeal, the assessee has challenged the jurisdiction of the Commissioner of Income Tax in passing the order under sec. 263 of the Act. 4. Authorized Representative of the assessee submitted that the Commissioner of Income Tax issued notice under sec. 263 of the Act on the ground that as per the valuation of building done by the DVO, the investment made by the assessee in Financial Year 2008-09 is shown at ₹ 3,5 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he genuineness of the trust and application of funds for charitable purpose before completing the assessment. The Assessing Officer should have made enquiry about the justification of investment made by the assessee for the construction of building and referred the matter to the DVO after verifying the books of accounts in accordance with law. Therefore, in exercise of his powers under sec. 263 of the Act, he set aside the order for the Assessment Year 2009-10 and directing the Assessing Officer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

IT (2010) 328 ITR 513 (SC), the Assessing Officer could not refer the matter to the DVO in a case where there was a categorical finding recorded by the Tribunal that the books of accounts were never rejected. He submitted that in the case of the assessee also books of accounts, maintained by the assessee, were not rejected by the Assessing Officer and therefore, he could not have referred the matter for valuation of the cost of construction of the building to the DVO under sec. 142A of 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

the assessee trust was specifically required to explain the difference in cost of construction as shown and that determined by the DVO. It was explained that the cost of construction as shown by the assessee trust is duly supported with regular books of accounts and that all the expenses are supported with bills for construction materials and vouchers for labour etc. It was pointed out that the deductions given in the estimate for work not done and the plinth area, rates adopted are on the highe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

source of investment has also been explained. Having regard to the facts, no adverse inference is drawn in this regard. Thus he submitted that the Assessing Officer after considering the DVO s report accepted the cost of construction shown by the assessee in its books of accounts. This assessment order dated 14/03/2013 was available with the Commissioner of Income Tax, when he issued notice under sec. 263 of the Act on 13/01/2014. Therefore, Commissioner of Income Tax was not justified in holdin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ken by the Assessing Officer resulted in loss of Revenue which is prejudicial to the interest of the revenue. In absence of any such finding, the appellate Tribunal was right in setting aside the order of the Commissioner of Income Tax. He submitted that in the case of the assessee also there is no finding to the effect that the order of the Assessing Officer was erroneous and prejudicial to the interest of the Revenue. Therefore, the order passed under sec. 263 by the Commissioner of Income Tax .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cording to which the investment in construction made by the assessee during the year under review was ₹ 3,53,79,748/-, whereas as per the return of the assessee, the investment was ₹ 1,69,16,213/-. However, while passing the order under sec. 263 on 10/02/2014, the Commissioner of Income Tax has also set aside the order of the Assessing Officer inter alia on the grounds that the Assessing Officer has not examined the genuineness of the trust and application of fund for charitable purp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he assessee, if any, in respect of the said issue. In the above circumstances, we find force in the contention of the assessee that the order of the Commissioner of Income Tax in respect of the above issue is bad in law. Our view finds support from the decision of the Hon'ble Delhi High Court in the case of CIT Vs. Contimeters Electricals P. Ltd. [(2009) 317 ITR 249 (Del.)], where it was held that the issue which did not form part of the show-cause notice and the assessee was not confronted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion was not completed during the year under consideration. The construction was continued in the next Financial Year relevant to the Assessment Year 2010-11 also. The Assessing Officer in the assessment made for the Assessment Year 2010-11 under sec. 143(3) on 14/03/2013, discussed his finding in respect of DVO s report as under:- During the course of assessment proceedings, the assessee trust was specifically required to explain the difference in cost of construction as shown and that determine .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lege. The assessee trust furnished a valuation report as per which the cost of construction of the building is only ₹ 2,18,93,375/-. It was further submitted that the addition in fixed assets is application of funds for charitable purposes exempt under sec. 11. The cost of construction as shown by the assessee is supported with regular books of accounts maintained. The source of investment has also been explained. Having regard to the facts, no adverse inference is drawn in this regard. 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

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

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

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

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

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

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.



|| 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