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 →

Kohinoor Hatcheries Pvt Ltd. Versus The Deputy Commissioner of Income Tax And Another

Reopening of assessment - Held that:- The respondents cannot shy away from the fact that there was a full and true disclosure of all material facts necessary for assessment. This case will not fall under the category of mere production of books of accounts and other records. This case very clearly falls under the category of true and full disclosure, upon which the first assessment order was passed on the opinion that the lands sold were agricultural lands. Therefore, to say after 4 years that 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

Income Tax Act, 1961, for reopening the assessment for the year 2008-2009. 2. Heard Sri Y. Ratnakar, learned counsel for the petitioner and Sri Narasimha Sarma, learned senior standing counsel for the respondents. 3. The petitioner/assessee filed a return of income for the Assessment Year 2008-09 on 30-09-2008, admitting (i) a loss of ₹ 1,98,26,817/- and (ii) a profit on sale of land to the tune of ₹ 14,35,77,640/-. The assessment was completed under Section 143 (3) of the Act on 31 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

any reasons for reopening of assessment, the petitioner made a request on 25-04-2014. In response, the Assessing Officer issued a reply dated 14-07-2014 indicating that the profit on sale of land amounting to ₹ 14,35,77,640/-, related to land sold to a Real Estate Company for the construction of a Special Economic Zone and that therefore, the sale was not exempt as agricultural land in view of the decision of the Supreme Court in Sarifabibi, Mohammed Ibrahim v. 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

r the notice dated 26-04-2014. This Court, while ordering notice before admission in the writ petition on 05.02.2015, permitted the Assessing Officer to complete the reassessment, but not to give effect to the same, until further orders of this Court. 8. But It appears that by the time this court passed the said order, the assessing officer had already completed the assessment on 31-01-2015. 9. Therefore, despite the interim order passed by this court, the Assessing officer communicated the asse .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ngineering Company Limited v. Commissioner of Income Tax 247 ITR 818 that the writ petition deserves to be dismissed on the ground of availability of alternative remedy. But we do not think that the said contention can be upheld in the case on hand. The law is well settled that the refusal to entertain writ petitions on the ground of availability of alternative remedies, is a self-imposed restriction. This self-imposed restriction, as pointed out even in Commissioner of Income Tax and others v. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ory authority acted in total violation of the principles of natural justice. 11. In the case on hand, the petitioner challenges the very initiation of proceedings for reopening of assessment, as being without jurisdiction and also in complete defiance of the statutory prescriptions. Therefore, this is not a case, which can be thrown out on the ground of availability of alternative remedy. 12. Coming to the merits of the case, the reopening of assessment had happened in this case, admittedly afte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

9; b) failure on the part of the assessee to make a return response to a notice under Section 142 (1) or under Section 148; and c) failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment. 13. It is neither the case of the Assessing Officer nor that of the learned senior Standing Counsel that the present case would fall under the first or the second contingency. The respondents attempt to bring the case of the writ petitioner, under the thir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gence, have been discovered by the Assessing Officer, will not necessarily amount to disclosure within the meaning of the proviso. 15. Therefore, the proviso as well as the Explanation 1 to Section 147 make it obligatory on the part of the assessee (1) to make a full disclosure; 2) to make a true disclosure and 3) to ensure that such true and full disclosure is of material facts necessary for the assessment. A clear signal is sent to the assessee by Explanation 1 that the mere production of book .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

x vs. Kelvinator India Ltd. 2010 320 ITR 561, that though the power to reopen assessment, after the Direct Tax Laws (Amendment) Act, 1987 was much wider, Section 147 cannot be taken to confer arbitrary powers to reopen assessment on the basis of mere change of opinion. 17. The question of change of opinion would arise only if there had been a formation of opinion in the first instance. It is not necessary that upon mere production of material evidence, a formation of opinion or the possibility 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

aterials necessary for assessment, the statute ensures two things viz., a) that an officer, who had once formed an opinion, does not seek to change it later; and b) that an officer, who, deliberately or by his negligence, omitted to form an opinion, despite being made aware of the material facts, do not take refuge latter under Section 147 to cover up his negligence. 19. A question may arise in the second category of cases as to whether the interests of the Revenue would not suffer in such cases .....

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 Bench of the Supreme Court in Calcutta Discount Co. Ltd., v. Income Tax Officer and another 41 ITR 191, the duty of the assessee stops with a true and full disclosure and does not extend to assisting the Assessing Officer with the inferences that could be drawn from out of what was disclosed. 22. Explanation 1, as pointed out by the Supreme Court in Commissioner of Income Tax, Calcutta v. Burlop Dealers Limited 41 ITR 191 (SC), does not impose an onerous obligation upon the assessee. It merel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

covering the sale of agricultural lands and its taxability. The reply submitted by the petitioner to these questions at Sl.Nos.4 and 5 of the letter dated 9.11.2010 were as follows: The details of total land holding of the company are enclosed. We have sold 28.13 acres of agricultural land during the financial year 2007-2008. Copies of the relevant sale deeds are enclosed along with working of computation of profit on sale of agricultural land. These lands sold are agricultural lands within 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

letter calling for information and produce books of accounts, bank statements, vouchers/bills etc. The AR of the assessee, Sri Syed Mansoor, CA, appeared from time to time and produced books of accounts with relevant vouchers/bills etc. and the information with regard to land details etc. After examining the books of accounts and other details at length, the case was discussed with the AR of the assessee. However, upon verification of the balance sheet, the assessee is claiming differed tax liab .....

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