Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (5) TMI 1187 - ITAT BANGALORE

2016 (5) TMI 1187 - ITAT BANGALORE - TMI - Revision u/s 263 - amount received from the insurance company as well as the clients - Held that:- The crux of the issue is that the fact that there was no loss of revenue has to be conclusively demonstrated. In the present case, one cannot come to a conclusion that there was no loss of revenue without verification of the assessment records for the assessment years 2006-07, 2007-08 and 2008-09. The ld.CIT had only set aside the issue to the file of 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

was examined by the AO during the course of assessment proceedings. Hence, we are of the considered opinion that the order passed by the ld.CIT , in exercise of his power vested under the provisions of sec.263 of the Act, is proper and valid in law and the ld.CIT is justified in assuming jurisdiction u/s 263 of the Act. - Decided against assessee. - ITA No.748/Bang/2014 - Dated:- 22-4-2016 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER and SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER For The Appellant : Shri .....

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 one another. 1. On the facts and in the circumstances of the case, the impugned order passed by the learned Commissioner of Income-tax, Bangalore-III ['the CIT] under Section 263 of the Act is bad in law and void ab initio. The learned CIT erred in concluding that the order of the Asst. Commissioner of Incometax, Circle 12(1), Bangalore ('the ACIT') is erroneous and prejudicial to the interest of the revenue. The conditions precedent for assumption/exercise of jurisdiction under .....

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 setting aside the issue to the file of Assessing Officer, without appreciating the facts that details/documents were already filed with the CIT as well as before the learned assessing officer ill to audit objection note. 4. Without prejudice, the learned CIT erred in setting aside the issue back to the Assessing Officer, without appreciating the fact that the tax effect because of an order passed by the Assessing Officer is NIL since the sum of ₹ 853.859/-(net) was offered to tax is thr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aring of the appeal. 3. Briefly facts of the case are that the assessee is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of providing software development services, IT Consultancy and IT Enabled services. Return of income for assessment year 2008-09 was filed on 27/09/2008 declaring a total income of ₹ 5,24,75,777/-. Against the said return of income, assessment was completed u/s 143(3) r.w.s 144C(3) of the Act on a total income 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

e interest of revenue, as the amount of ₹ 76,50,877/- received from insurance company and ₹ 1,07,32,170/- received from clients i.e. Citibank, were not reflected in the financial statements of the assessee-company. The ld.CIT was of the opinion that the amount of ₹ 76,50,877/- received from the insurance companies was not offered to tax. In response to show cause notice, assessee-company had filed a detailed note vide its letters dated 26/2/2014 and 28/3/2014. The assessee-comp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ns, ld.CIT felt that since the issue was not verified by the AO during the course of assessment proceedings, he was of the opinion that nonverification of an issue renders the assessment order erroneous and prejudicial to the interest of the revenue. He also cited the decision of the Hon ble Apex Court in the case of Malabar Industrial Co. vs. CIT (243 ITR 833) in support of the proposition that an order passed without application of mind renders the assessment order erroneous. He, accordingly, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

assed the order u/s 263 dated 28/3/2014. 5. Being aggrieved, the assessee-company is in the present appeal before this Tribunal. The learned AR of the assessee submitted that the amount received from the insurance company as well as the clients were duly reflected in the books of account maintained by the assessee-company. The net effect of the transactions on account of this is reflected through P&L Account. Hence, there was no loss of revenue to the department. As a result, twin conditions .....

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 does not mean that the issue was not examined by the AO. Finally he submitted that the ratio laid down by the Hon ble Karnataka High Court in the case of Infosys Technologies Ltd. (supra) is not applicable as subsequently, the jurisdiction High Court in ITA No.68/2014 ld.CWT(A) 67/2014 dated 21/01/2016 in the case of CIT vs. M/s.Saravana Developers clearly laid down that jurisdiction u/s 263 can be assumed by the CIT in a case where there is a lack of enquiry. He also placed reliance on the de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o laid down by the Hon ble High Court in the case of Infosys Technologies Ltd. (supra) is squarely applicable. Therefore, he submitted that the order passed u/s 263 should be sustained in view of the decision of the jurisdictional High Court in the case of Infosys Technologies Ltd. (supra). 7. We heard the rival submissions and perused material on record. Short issue in the present appeal is whether the ld.CIT, in the facts and circumstances of the case, is justified to assume jurisdiction u/s 2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fraudulent activity and involvement of the employees of the assessee-company, parent company paid money to the Citibank a sum of ₹ 1,75,29,186/- on behalf of assesseecompany on 26/8/2005. Further the liquid assets and properties of the alleged offenders were frozen and legal actions were initiated against them. Under a separate deed of assignment, the Citibank assigned amount recoverable from the frozen assets of alleged offenders to the assessee-company. In the month of July 2007, assesse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rex Gain on ERF accrued in books and routed thru P/L account for revaluation of Forex denominated intercompany liability and Bank FDs in terms of Accounting Standard 11 as at each Balance Sheet date. Therefore, the contention of the assessee-company is that the net effect of the transaction is duly reflected in the books of account, profit or loss arising out of this transaction is shown in the P&L A/c. It may be further noted that in the notes to accounts forming part of the financial state .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| 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