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 →

I.T.O Ward 3 (4) , Kolkata Versus M/s. Bisco Metal & Power Pvt. Ltd.

Undisclosed expenditure incurred for earning commission - Held that:- All the expenditure were claimed under different heads for earning different incomes for manufacturing dealing and commission, along with salary and other expenses were debited to the profit & loss account. There was nothing brought on record by the AO to establish that any expenditure was separately incurred by the assessee in relation to commission income. In order to attract provision U/Sec 69C of the Act, the onus is on 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

vidence in support of the expenses claimed. The CIT-A found that all the details were available before the AO and incurred such amount of ₹ 32300/- constituted fees towards the renewal of mining license, consent fees to WBPCB, sampling and analysis charges paid to WBPCB Fees paid to West Bengal Directorate Employees Associations & fees paid for liasoning. In view of the same, We agree with the finding of CIT-A that all the payments were incurred for fees & subscription made to the Governme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-A opined that the contention of the assessee was correct and question of deducting TDS does not arise - Decided in favour of assessee - Addition u/s 41 (1) - Held that:- The trading liability was not ceased and payments were made thereafter as the CIT-A examined the liability was recorded in books of accounts for capital goods and it was not written off in the books of account and confirmations of the said creditors filed and subsequently the entire amount was paid. In view of the same 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

Pvt. Ltd. vs Collector of C. Excise, Kanpur [1998 (3) TMI 298 - CEGAT, NEW DELHI] where it held that the production can not be estimated on the basis of consumption of electricity. We find no justification in the order of AO in making addition on the basis of electric consumption in calculating the production on such estimation.- Decided in favour of assessee - Disallowance of excess depreciation - Held that:- AO acknowledged the details of addition of fixed assets were before him and asked .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al Member For the Appellant : Shri A.K.Pande, JCIT, Ld.Sr.DR For the Respondent : Shri M.Satnaliwala, B.com, LLB,FCA, Ld.AR ORDER Shri S. S. Viswanethra Ravi, JM This appeal of the revenue arises out of the order of the CIT(A)-I, Kolkata in Appeal No. 511/CIT(A)-I/Wd-3(4)/09-10 dated 02-06-2010 against the order of assessment framed by the AO u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ). 2. The appellant Revenue has raised the following grounds:- (i) Ld. CIT(A) h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ase in deleting the addition of ₹ 46,15,761/- which was made by the Assessing officer U/s 40(a)(ia) for failure to deduct TDS as per section 194C of the IT Act against carriage inward / transport charges. (iv) That Ld CIT(A) has erred by accepting the assessee's contention that assessee had not claimed any transportation charges since goods were purchased on F.O.R basis hence the assessee was not liable for deduction of TDS as per section 194C . (v) Ld. CIT(A) has erred on the facts &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

s & circumstances of the case in deleting the addition of Rs. ₹ 56,78,595/- on account of undisclosed production without properly appreciating the fact that the AO has brought adequate evidence on record to prove that assessee had undisclosed production. (viii) On the facts & circumstances of the case the order of Ld CIT (A) is perverse, hence same may be set aside and order of AO be restored. (ix) The appellant craves leave to amend, modify and alter any grounds of appeal during 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

7; 6,68,741/- . The A.O was of view that the assessee earned commission and for not furnishing any details regarding such commission and the AO treated 10% of such commission income as expenses for earning such commission and added back as unexplained expenditure. The CIT(A) observed that if any expenditure incurred for earning the commission income and if any expenditure was not claimed, the same can not be added to the income as it is allowable as revenue expenditure. The Ld.DR contends that 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

ll the expenditure were claimed under different heads for earning different incomes for manufacturing dealing and commission, along with salary and other expenses were debited to the profit & loss account. There was nothing brought on record by the AO to establish that any expenditure was separately incurred by the assessee in relation to commission income. In order to attract provision U/Sec 69C of the Act, the onus is on the AO to show that the assessee has actually incurred expenditure an .....

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 profit and loss account. The assessee submitted details of such expenses to an extent of ₹ 34,024/- only, but could not produce any details regarding the amount to an extent of ₹ 32,300/- and for such failure, the AO added the same to the income of assessee. Before the CIT-A, the assessee contended that all details of entire expenditures were furnished at the assessment proceedings and sum constituted thereon was incurred towards payment of fees to renewal of mining license, conse .....

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 were incurred towards payments to Government of West Bengal by way of challans. We find that the A.O added an amount of ₹ 32,300/- as the assessee failed to furnish evidence in support of the expenses claimed. The CIT-A found that all the details were available before the AO and incurred such amount of ₹ 32300/- constituted fees towards the renewal of mining license, consent fees to WBPCB, sampling and analysis charges paid to WBPCB Fees paid to West Bengal Directorate Employees As .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

not show transportation charges or carriage inward separately in the accounts and the AO calculated average percentage of carriage inward with respect of purchase and concluded that the minimum expenditure for carriage inward borne by the assessee company was @ 17.57% of purchase i.e ₹ 46,15,761/-. The assessee submitted before the CIT-A that the assessee had not claimed any transportation charges as the goods were purchased on FOR basis. The CIT -A accepted assessee's contention and f .....

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 order to avoid the liability of deduction of TDS. The Ld.AR submits that the assessee submitted all the details before the AO and AO could not appreciate it proper manner and all those details are filed in the paper book. We find that the goods were purchased on F.O.R. basis are evident from the purchase bills of raw materials placed in the paper book and copies of bills which were produced before the A.O and CIT-A having examined such copies of bills showing the value of goods and relying 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

s of involving capital goods are old and for non production of bill no s with amount, date of credit and status as on that date, the AO made the addition on account of cessation of liability. Before the CIT-A, assessee submitted that the liability was recorded in books of accounts for capital goods and it was not written off in the books of account. Confirmations of the said creditors filed and subsequently the entire amount was paid. All the details of payments and confirmation for the parties .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

duced herein: As per section 41(l) where an allowance or deduction has been made in the assessment in respect of loss, expenditure or trading liability incurred by the assessee and subsequently during the previous year the assessee obtained, whether in cash or in any manner whatsoever any amount of such loss or expenditure or some benefit in respect of such trading liability by way of remission or cessation, that amount can be added u/s 41 (1) of I.T. Act. In the instant case, however no trading .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

were made thereafter as the CIT-A examined the liability was recorded in books of accounts for capital goods and it was not written off in the books of account and confirmations of the said creditors filed and subsequently the entire amount was paid. In view of the same the application of section 41 (1) of the Act was not justified. Therefore, ground no-4 is stands dismissed. 9. 5th ground as raised regarding addition on account of undisclosed purchase of raw material and undisclosed production .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

satisfactory explanation of such variation and the AO concluded that assessee had undisclosed production as well as unaccounted purchase. The AO made addition under the head unaccounted purchase ₹ 15,83,278/- and undisclosed production of ₹ 56,78,595/- totaling to ₹ 72,61 ,873/- . 10. Before the CIT-A, the assessee contended that all the details of consumption of raw material, production of Goods, consumption of electricity month wise were furnished. The assessee submitted tha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as under: I have considered the order of the A.O. and the arguments of the A/R. The A.O. has not pointed out any defects in the books or accounts. The addition was purely on estimate and based on presumption. In view of this facts us stated above, the addition of ₹ 72,61,873/- stands deleted. 12. The Ld. DR points out that CIT -A did not consider that G.P rate shown by the assessee was very low compared to other years and it was due to undisclosed purchase and production as found by the 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

 

 

 

 

 

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