Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News What's New Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Anurag Radhesham Attal Versus Income Tax Officer, Ward 2 (1) , Aurangabad and Vica-Versa

Disallowance of deduction u/s. 80IB(11A) - Non-consideration of the Audit Report filed at the time of assessment proceedings - Held that:- . Non-filing of Audit report inadvertently before the Commissioner of Income Tax (Appeals) cannot be considered as sufficient cause when the Assessing Officer has specifically taken a ground to disallow deduction to the assessee for non-filing of Audit report before him. The assessee has been negligent and callous in pursuing his cause before the authorities .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ri Siddheshwar Kondiba Sontakke. The Assessing Officer has categorically stated that the payments are made by the assessee to the farmers through them. The Assessing Officer has not stated anywhere in the report that the assessee has purchased agricultural produce from these persons. The Assessing Officer has further stated that the assessee has paid commission to the above mentioned four persons. The Commissioner of Income Tax (Appeals) after considering the observations of the Assessing Office .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. ORDER PER VIKAS AWASTHY, JM : These cross appeals have been filed by the assessee and the Revenue impugning the order passed by the Commissioner of Income Tax (Appeals), Aurangabad dated 14-02-2012 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) for the assessment year 2008-09. 2. The brief facts of the case as emanating from records are: The assessee is an individual, engaged in the business of ginning and pressing of cotton and warehousing. The assessee filed it .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ess of handling, storage and transportation of food grains. The assessee is neither having labourers on its payroll nor the assessee is having own fleet of vehicles for transportation. Therefore, the assessee does not fulfill the requisite conditions for claiming deduction u/s. 80IB(11A) of the Act. The Assessing Officer disallowed the deduction of ₹ 12,03,353/-. Apart from the above, the Assessing Officer made certain other disallowances / additions in the income returned by 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

eal before the Tribunal. 3. The assessee has assailed the findings of Commissioner of Income Tax (Appeals) on two counts: i. Confirming the disallowance of deduction u/s. 80IB(11A) amounting to ₹ 12,03,353/-, and ii. Non-consideration of the Audit Report filed at the time of assessment proceedings. 4. Smt. Deepa Khare appearing on behalf of the assessee submitted that the assessee had made claim of deduction u/s.80IB(11A) for the first time in assessment year 2004-05. It is only in the ass .....

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 norms prescribed by the NABARD. In support of her submissions, the ld. Counsel placed on record a copy of the report by Joint Monitoring Committee dated 20-05-2005 under Rural Godown Scheme. One of the committee members is official of NABARD. The object of the committee is to examine the conditions of warehousing facilities. The ld. Counsel submitted that the Assessing Officer has disallowed the claim of deduction u/s. 80IB(11A) on three counts, viz : i. There are no labourers on payroll of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ctivities should be carried out by the assessee by employing labours on its payroll or owning warehouse or having own fleet of vehicles for transportation. The assessee is engaged in the integrated activity by engaging the labourers through outsource agencies and hiring of vehicles from various operators. The requirements of labourer keep on changing throughout the year. More labourers are required immediately after the harvesting season. Accordingly, the requirement of transport vehicles goes u .....

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 the paper book. The ld. Counsel submitted that the assessee had submitted the list of vehicles along with the name of owners, details of transportation expenses and completion certificate of warehousing building. The ld. Counsel further submitted that as regards labour charges, the same are collected by the agency directly from the respective parties, although, the labour arrangements for loading and unloading at the warehouse is made by the assessee. To substantiate the payment of transport .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s is not necessary to claim deduction u/s. 80IB(11A). 5. In respect of second issue raised in the appeal regarding filing of Audit report for claiming deduction, the ld. Counsel submitted that the Audit report in the prescribed form was obtained from the Chartered Accountant on 20-08-2008. However, the same could not be filed along with the return of income. The assessee thereafter offered to file Audit Report before the authorities below but the request of assessee was not considered. The ld. C .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed business of handling, storage and transportation of food grains. Further, the assessee had not filed Audit report in the prescribed form which is necessary for claiming deduction u/s. 80IB(11A) of the Act. No sufficient reason has been given for not placing the Audit report either during assessment proceedings or during the first appellate proceedings. In the absence of Audit report the claim of the assessee cannot be accepted. The ld. DR prayed for dismissing the appeal of the assessee. 7. W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

its or vegetables or meat and meat products or poultry or marine or dairy products or from the integrated business of handling, storage and transportation of foodgrains, shall be hundred per cent of the profits and gains derived from such undertaking for five assessment years beginning with the initial assessment year and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and gains derived from the operation of such business in a manner that 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

the provisions of section show that deduction u/s. 80IB(11A) is available in the case of an undertaking deriving profit from the integrated business of handling, storage and transportation of food grains. The vital word used in the section is integrated . The term integrated has not been defined in the Act nor it is defined under the General Clauses Act, 1897. Thus, to understand the meaning of word integrated in common parlance, we referred to Oxford English Dictionary, which explains the word .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ure facilities or should have manpower on its rolls for carrying out such business activities. If the undertaking is carrying out these integrated activities by employing hired labourers or by taking warehousing facilities on rent and hiring transportation facilities, in our considered opinion the undertaking is eligible to claim deduction u/s. 80IB(11A). 9. The Hyderabad Bench of the Tribunal in the case of A.P. State Warehousing Corporation Vs. Deputy Commissioner of Income Tax (supra) also su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

vehicles for the transportation. However, the assessee is having warehousing facilities of its own. The assessee in support of his contention has placed on record vouchers for loading, unloading and transportation to substantiate that it is engaged in integrated business. Some of these vouchers are placed on record by the assessee at pages 1 to 16 of the paper book. The First Appellate Authority rejected the claim of the assessee by observing as under: 8.2 …………&hellip .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oss account. As regards transportation facility, the appellant has claimed that it has hired vehicles for transportation of food grains whenever required by the farmers and has debited the said expenses in the books of accounts. The A.O. has claimed that the appellant has not earned any transportation receipt from farmers and has not credited the same in the profit & loss account. In this regard, it has been noticed that the appellant has claimed the expenditure of transportation at ₹ .....

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 labours are paid for their services & the surplus being margin is credited net to the income of the assessee" is therefore not supported by any documentary evidence. Therefore, I am of the considered view that the appellant has failed to prove that he has carried out business activity of handling of food grains alongwith storage of food grains. Further, as regards providing business activity of transportation, it has been noticed that the appellant has claimed transportation expens .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

deduction u/s. 80IB(11A) can be claimed only if the assessee has been able to show that it is engaged in integrated activities of handling, transportation and storage of food grains. Owning of transportation facilities, warehousing facilities and manpower on payroll is not sinequa- non for claiming the deduction. What is essential is that all the three activities of handling, storage and transportation should be sewn together in a manner that they become a single structured process. In the prese .....

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 labourers, except for some self made vouchers, the sanctity of which is highly doubtful, there is no other document to support the claim of assessee. Similarly, in respect of transportation activity the contention of the assessee is that the assessee is using hired trucks. A perusal of records show, that the assessee has claimed ad hoc expenditure of ₹ 10,000/- per month for transportation that to on the basis of internal vouchers. The assessee has not placed on record any agreement/ a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ding warehousing facilities for storage of food grains. The assessee has not been able to show from the records that the activities of handling, storage and transportation of food grains allegedly carried out by the assessee are part of one composite activity and are integrated in any manner. The assessee has failed to substantiate handling and transportation component of integrated business. 12. In so far as the objection of the Revenue for non-filing of Audit report is concerned, we are 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

of the reasons for rejecting the claim of the assessee was non-filing of the Audit report. Now, before the Tribunal the assessee has filed an application for admission of additional evidence i.e. the Audit report. The assessee has placed on record Audit report in form 10CCB dated 20-08-2008 at pages 14 to 18 of the paper book. In the application for admission of additional evidence the reason for non-filing of Audit report before the Assessing Officer, as well as, Commissioner of Income Tax (Ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

b) of the Income Tax Rules, 1962. Additional evidence can be admitted if the assessee can show sufficient cause for not producing the same before the authorities below. In the said case the assessee could not file Audit report as the assessee had serious disputes with the Auditor whose services were ultimately terminated. 14. The Hon'ble Gujarat High Court in the case of Commissioner of Income Tax Vs. Xavier Kelavani Mandal (P) Ltd. reported as 41 taxmann.com 184 (Guj.) has held that the ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ground to disallow deduction to the assessee for non-filing of Audit report before him. The assessee has been negligent and callous in pursuing his cause before the authorities below. 15. Thus, in the facts of the case and documents on record, we are of the considered opinion that the assessee has failed to show that he is engaged in the integrated business of handling, storage and transportation of food grains and thus, the assessee is not eligible for claim deduction u/s. 80IB(11A) 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

iddheshwar Kondiba Sontakke as agents of the assessee through whom cash payments were made by the assessee. 18. The ld. DR submitted that the assessee has made payments to the commission agents/traders and not to the farmers. Thus, the cash payments made by the assessee would not fall within the exceptions provided under Rule 6DD (e) and (k) of the Income Tax Rules. 19. On the other hand the ld. Counsel for the assessee submitted that the person s name in the appeal filed by Department are not t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

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.

Forum: Cess paid instead of SGST

News: RBI Reference Rate for US $

Forum: 3B mistake

Forum: Input credit of gst paid on urd

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.

Forum: transfer of shares

Forum: Input tax credit

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

Forum: GST return filing software online | Easy GST compliance management

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

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 comments and suggestions-reg.

Highlight: Genuineness of labour wages expenses, embroidery charges, fabrication expenses etc. - getting work done through small workmen who do not have any permanent place of residence - disallowance of ad hoc expenditure deleted.

Highlight: Project import - Since the goods were never used for the purpose for which it was imported, the actual user condition has been violated - Redemption fine and penalty imposed.

Highlight: Penalty u/s 112 (a) - CHA - Lack of due diligence and failure to take more precautions can not, by itself, bring in penal consequences

Highlight: Import of services - GST - The fact that those services were received outside India will not change the fact that the services have been paid for by the beneficiary appellant, who is located in India. - Demand confirmed.

Notification: SEZ for IT/ITES at Madhurwada Village, Visakhapatnam District in the State of Andhra Pradesh - denotified.

Highlight: Merely because payment is received in Indian rupee, it cannot be said that payment against export has not been received in convertible foreign exchange.

Highlight: Merely vehicle numbers was not mentioned on the invoices cannot be the reason to deny Cenvat Credit

Highlight: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017 - Circular

Circular: Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 120A of the Central Goods and Service Tax Rules, 2017



|| 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