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 →

Shri Anil Mahavir Gupta Versus The ACIT/DCIT, Cen. Cir. 45, Mumbai (Vice-Versa)

Assessment u/s 153A pursuant to search - abatement of pending assessments - Held that:- making of an addition in an assessment under section 153A of the Act, without the backing of incriminating material, is unsustainable even in a case where the original assessment on the date of search stood completed under section 143(1) of the Act, thereby resulting in non-abatement of such assessment in terms of the Second Proviso to section 153A(1) of the Act. - Trading addition - The addition to the 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

in the remand proceedings before the Assessing Officer, the said party admitted transactions with the assessee. - The addition made on similar basis in connection with transactions with M/s. Nisha Enterprises in the hands of the sister concern for assessment year 2006-07 has been deleted by the Tribunal. Considered in this light, in our view, so far as trading results for the instant assessment year are concerned, the same cannot be treated as unreliable on the basis of the verification exe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

evidence, apart from mere doubts, to treat the trading result as unreliable. Therefore, the addition sustained by the CIT(A) is unwarranted and is hereby directed to deleted. In the result, appeal of the assessee allowed. - ITA No.638/MUM/2011, ,664/MUM/2011, 9215/MUM/2010, 9216/MUM/2010, 9225/MUM/2010, 9226/MUM/2010, 9227/MUM/2010 - Dated:- 31-8-2016 - SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER. Assessee by : S/Shri Vijay Mehta & Govind Jhaveri Respondent by : 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

is director of a concern, viz. M/s. S.K.S.Ispat Ltd. Apart from deriving salary income from the said concern, assessee is carrying on proprietary business of trading in various steel products under the name and style of M/s. Gupta Steel Corporation. A search action under section 132(1) of the Income Tax Act, 1961 ( in short the Act ) was carried out by the Department in the premises of the aforesaid company and also at the residential premises of the directors, including the assessee on 10/11/2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

006-07, assessment has been completed under section 143(3) of the Act. In the assessments so finalized, the Assessing Officer made various additions which were carried in appeal before the CIT(A), who has allowed substantial relief. Against the reliefs allowed by the CIT(A), Revenue is in appeal for the captioned assessment years of 2002-03 to 2006-07. The assessee has filed Cross- Objections for assessment years 2002-03 to 2005-06, and cross-appeals for assessment year 2005-06 and 2006-07, wher .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, 1961 (in short the Act ) dated 18/12/2008. 4. In this appeal, the following two Grounds have been raised:- "1. On the facts and in the circumstances of the case} and In law} the CIT(A) was not Justified in deleting the addition made by the Assessing Officer by estimating the household expenses of the assessee at ₹ 4.48lakhs without appreciating that the assessee had not furnished details of his household expenses and contribution, if any, by other family members for scrutiny particu .....

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 CIT(A) erred in accepting the additional evidence in contravention of the rule 46A of I. T Rules, 1962. The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. The appellant craves leave to amend or alter any ground and/or add new grounds which may be necessary. 5. At the time of hearing, Ld. Representative for the assessee pointed out that the tax effect in the Grounds raised by the Revenue is below the limits prescri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

missed. 7. Now, we may take up the appeal of the Revenue pertaining to assessment year 2003-04 in ITA No.9216/Mum/2010 and cross objection of the assessee vide C.O.No.180/Mum/2012, 7.1 In this appeal, Revenue has raised the following Grounds of appeal:- "1. On the facts and in the circumstances of the case, and in law, the CIT (A) was not Justified in deleting the addition of ₹ 69,28,100/ - made under section 68 of the Act, as unexplained cash credit, claimed to be advances received 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

stified in deleting the addition made by 'the Assessing Officer by estimating the household expenses of the assessee at ₹ 6 lakhs without appreciating that the assessee had not furnished details of his household expenses and contribution, if any, by other family members for scrutiny particularly when the personal withdrawals shown by the assessee were very meager. 3. On the facts and in the circumstances of the case, and in law, the CIT(A) was not Justified in deleting the addition 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

Assessing Officer be restored. The appellant craves leave to amend or alter any ground and/ or add new grounds which may be necessary. 7.2 In the Memo of cross-objection, assessee has raised the following Ground:- 1. On the facts and circumstances of the case the Assessment Order passed under section 153A of the I.T. Act, 1961 is bad in law as the assessment was not pending at the time of search and there is no nexus between following additions made and any information & material found durin .....

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 the Assessment Order passed under section 153A of the I.T. Act, 1961 is bad in law as the assessment was not pending at the time of search and there is no nexus between following additions made 2.The cross-objector carves leave to add to, amend, alter or delete all or any of the foregoing grounds of cross-objection. S. No. Particulars Amount (Rs.) 1. Addition on account of advance from customers 69,28,100 2. Ad-hoc addition of Household Expenses 6,00,000 3. Addition on account of Deemed Divid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ght to be made out by the assessee is that the additions in question are not based on any incriminating material found in the course of the search; and, since the original assessment for the year under consideration does not abate in terms of the Second Proviso to section 153A(1) of the Act, therefore, following the judgment of the Hon'ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation (NHAVA SHEVA) Ltd, 374 ITR 645 (Bom), such additions are beyond the scope and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

153A of the Act was issued to the assessee on 5/10/2007 calling for a return of income for assessment year 2003-04, in response to which, assessee filed a return of income declaring an income of ₹ 30,48,790/-, which was the same as the income originally declared in the return of income filed under section 139(1) of the Act on 2/12/2003 for assessment year 2003-04. The return of income so filed by the assessee has been subject to scrutiny assessment under section. 143(3) r.w.s. 153(A) dated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tions so made by the Assessing Officer, which is being challenged in appeal by the Revenue as per above stated Grounds of appeal. Be that as it may, plea raised by the assessee in the cross-objection is to the effect that such additions are not based on any material found and seized during the course of search at the premises of the assessee and considering that the original assessment does not abate in terms of the Second Proviso to section 153A(1) of the Act, the said additions are beyond juri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

roceedings itself. It is also pointed out that in the context of the original return of income filed under section 139(1) of the Act on 02/12/2003, no notice under section 143(2) of the Act was issued within the prescribed period and, therefore, such assessment proceedings stood complete and that in any case on the date of search i.e. on 10/11/2006, the assessment for the impugned assessment year of 2003-04 was not pending. The said factual matrix has been canvassed by the assessee to say that 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

y the assessee would not apply in a situation where an original assessment has not been finalized under section 143(3) of the Act, and in the present case original assessment has been made under section 143(1) of the Act. As per the Ld. Departmental Representative the provisions of section 153A empower the Assessing Officer to assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which a search was conducted and, 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

nent to observe that Section 153A of the Act postulates the assessment in cases of search or requisition under section 132 or under section 132A of the Act respectively. The said section envisages that the Assessing Officer shall assess or reassess the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted. The second proviso to section 153A(1) of the Act also prescribes that assessment or re-assessment, if .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uch assessment years based on the findings of the search as well as any other material existing or brought on record by the Assessing Officer. Notably, there would assessments in the period of the six assessment years identified in section 153A(1) of the Act, which would have become final( i.e. which are not pending on the date of search); such assessments do not abate in the terms of the second proviso to sec. 153A(1) of the Act. The controversy before us is with respect to the scope and ambit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ch of the Tribunal in the case of All Cargo Global Logistics Ltd. & Ors. Vs. DCIT,137 ITD 287(Mum) has been upheld. A pertinent point addressed by the Hon ble High Court was as to whether the scope of assessment under section 153A of the Act envisages additions, which are otherwise not based on any incriminating material found during the course of search. As per Hon ble High Court, no addition could be made in respect of the assessment that had become final in the event no incriminating mate .....

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 search, because in such a case, the original assessment had become final. 7.10 In this context, it is also notable that the Hon ble Delhi High Court in the case of CIT vs. Kabul Chawla in ITA 707/2014 dated 28/08/2015 has also considered a similar dispute and has summarized the entire legal position as follows:- Summary of the legal position 37. On a conspectus of Section 153A(1) of the Act, read with the provisos thereto, and in the light of the law explained in the aforementioned decisions, .....

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 AO will exercise normal assessment powers in respect of the six years previous to the relevant AY in which the search takes place. The AO has the power to assess and reassess the 'total income' of the aforementioned six years in separate assessment orders for each of the six years. In other words there will be only one assessment order in respect of each of the six AYs "in which both the disclosed and the undisclosed income would be brought to tax". iv. Although Section 15 .....

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 completed assessment can be reiterated and the abated assessment or reassessment can be made. The word 'assess' in Section 153 A is relatable to abated proceedings (i.e. those pending on the date of search) and the word 'reassess' to completed assessment proceedings. vi. Insofar as pending assessments are concerned, the jurisdiction to make the original assessment and the assessment under Section 153A merges into one. Only one assessment shall be made separately for each AY 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

. 7.11 In the above background, now we may examine the manner in which the impugned additions have been made by the Assessing Officer. The first addition is on account of ₹ 69,28,100/- representing advances received from customers, which have been held by the Assessing Officer to be unexplained credits within the meaning of section 68 of the Act. The relevant discussion in the assessment order reveals that there was a failure on the part of the assessee to produce the parties and, therefor .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n is on account of low household withdrawals and such addition is based on the perception of the Assessing Officer that the declared withdrawals for household expenses are low and ought to have been higher. Be that as it may, there is no discussion in the assessment order, which would suggest that any incriminating material was found in the course of search relatable to such additions. Therefore, factually speaking, we do not find that the additions in question are based on any incriminating mat .....

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 Ld. Departmental Representative to the effect that the aforesaid proposition of law laid down by the Hon'ble Bombay High Court in the case of Continental Warehousing Corporation (NHAVA SHEVA) Ltd. (supra) is not applicable in the instant case, because, in this case, the original assessment was completed under section 143(1) of the Act itself and not as a scrutiny assessment under section 143(3) of the Act. In this context, Ld. Representative for the assessee had relied upon the decision 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

l issue relating to the sustainability or validity of the additions made in the assessments made u/s 153A read with section 143(3) of the Act in respect of completed assessments. 10.The stand of the Revenue is that the first proviso to section 153A empowers the AO to issue notice u/s 153A of the Act in respect of the 6 AYs prior to the assessment year in which the search took place. The relevance of the existence of incriminating material is not provided in the said provisions. As per the revenu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ompleted assessments, AO is empowered to made additions only based on the incriminating materials and not otherwise Jai Steel (India) Ltd (supra), LMJ International Ltd (supra), Gurinder Singh Bawa (supra) etc. For making the routine additions, which are normally done in the regular assessments, the completed assessment need not be disturbed by invoking the provisions of section 153A of the Act if not for reiterating the returned or assessed income as the case may be. Judgment in the case of Jai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

AY 2002-03 deals with the case of disturbing the completed assessment‟. Earlier the assessment was completed u/s 143(1) of the Act. Completeness of the summary assessment is considered and held in favour of the assessee vide many judgments cited above. In the assessment u/s 153A, the AO made (i) Addition u/s 68 on account of artificially inflated investment in house duly disclosed in the balance sheet of the assessee ₹ 31,33,070/-; and (ii) disallowance u/s 14A: ₹ 23,31,469/-. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

undisputedly, the impugned quantum additions are made merely based on the entries in the accounted books and certainly not based on either the unaccounted books of accounts of the assessee or books not produced to the AO earlier or the incriminating material gathered by the investigation wing of the revenue. Considering the legal propositions place before us by the assessee‟s counsel, we are of the opinion, such assessments or additions are unsustainable in law. 13.For the sake completenes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, which would require more reiteration and it is only in the context of the abated assessment under second proviso which is required to be assessed. ……From a plain reading of the provision along with the purpose and purport of the said provision, which is intricately linked with search and requisition under sections 132 and 132A, it is apparent that: (a) the assessments or reassessments, which stands abated in terms of second proviso to section 153A, the Assessing Officer acts unde .....

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 incriminating material, while making assessment under section 153A is also not borne out from the scheme of the said provision which as noticed above is essentially in context of search and/or requisition. Para 26 of the Judgment: The plea raised on behalf of the assessee that as the first proviso provides for assessment or reassessment of the total income in respect of each assessment year falling within the six assessment years, is merely reading the said provision in isolation and not 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

ich would also necessarily support the interpretation that for the completed assessments, the same can be tinkered only based on the incriminating material found during the course of search or requisition of documents. B. [2012] 28 Taxmann.com 328 (Mumbai -Trib.) in the case of Gurinder Singh Bava vs. DCIT …. Whether since assessment under section 153A was passed by Assessing Officer on basis of material available in return of income and there was no reference to any incriminating materia .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

notice to the person requiring him to furnish the return of income for six years immediately preceding the year of search. The Special Bench further held that in case assessment has abated, the AO retains the original jurisdiction as well as jurisdiction under section 153A for which assessment shall be made for each assessment year separately. Thus in case where assessment has abated the AO can make additions in the assessment, even if no incriminating material has been found. But in other case .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ction 143(2) had expired on the date of search. Therefore, there was no assessment pending in this case and in such a case there was no question of abatement. Therefore, addition could be made only on the basis of incriminating material found during search. B. All Cargo Global Logistics Ltd. v. Deputy Commissioner of Incometax, Central Circle-44 [2012] 23 taxmann.com 103 (Mum.) (SB) Para 58 of SB decisions: Thus, question No.1 before us is answered as under: (a) In assessments that are abated, 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

ment, and (ii) undisclosed income or property discovered in the course of search. 14.Thus, in case of the completed assessments either u/s 143(1) or 143(3), the above extracts are uniform in advocating against making additions in routine manner in the assessments made u/s 153A of the Act when there is no incriminating material gathered in the search action. Statutory notice u/s 153A of the Act can also be issued to reiterate the returned income or for making additions based on the incriminating .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

language, it does not dealt with the relevance or factum of incriminating material. Further, the judgment of Andhra Pradesh High Court in the case of Gopal Lal Bhadruka (supra) is not on the notices issued u/s 153A of the Act and the same is pronounced in the context of the notice u/s 153C of the Act. Further, also, the Coordinate Bench decision in the case of Scope (P) Ltd (supra) has granted relief to the assessee though the notice issued u/s 153A of the Act was upheld. However, this order ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

asis of incriminating material such as books of accounts, other documents found in the search but not produced in the course of original assessment and undisclosed income or property discovered in the course of the search. 15.We also find that the CIT(A) made a reference to the incriminating material, which yielded disclosure of some undisclosed income. But, on perusal of the documents, we find that the CIT(A) entered into an error zone and the disclosure is only ₹ 5 crores in this case 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

r without the strength of the incriminating materials. Similar view was taken up by the ITAT, Delhi H‟ Bench, in the case of V.K. Fiscal Services P Ltd vs. DCIT vide ITA Nos.5460 to 5465/Del/2012 (www.itatonline.org). In this regard, para 13 from the said order of the ITAT Delhi Bench (supra) is relevant and the same reads as under: 13. Applying the above case laws to the facts of the case, we have to necessarily quash the assessment proceedings for AY 2004-2005, 2005-06, 2007-08, 2008-09 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

M/s. Global Reality Ventures P. Ltd. On the date of recording of satisfaction, first notice u/s 153(c) was issued. There is no indication whatsoever, that the assessment proceedings in the case of Global Reality Ventures P. Ltd were in progress or not, at the point of time and that the AO during the course of that proceedings recorded this satisfaction. The procedure contemplated under the Act was not followed. (c) The satisfaction is recorded on 23 rd July, 2010. The relevant AY would be 2011-1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

te of search, the date of search which in the case on hand would be 25.3.2010, by virtue of First Proviso to section 153‟C‟, i.e., the date of passing an order u/s 127 transferring the cases of the assessee to the present Assessing Officer no assessment or reassessment was pending. When no assessment has abated, the question of making any addition or making disallowance which are not based on only material found during the search is bad in law. 16. In these circumstances, we have no .....

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 for making additions and such additions, if any, cannot be sustained legally. As such, we find that the AO has not used the said report of the DVO also for making additions of ₹ 31,33,007/-, the difference between accounted amount of ₹ 46,13,007/-, claimed as the amount spent on construction of house and acquisition of land as on 31.3.2002 minus Rs. ₹ 14.8 lakhs, the investment made on the land plots. AO made addition for assessee‟s failure to provide evidences / bills .....

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 requirement of assessment or reassessment under the said section (153A) has to be read in the context of sections 132 or 132A of the Act, inasmuch as, in case nothing incriminating is found on account of search or requisition, then the question of reassessment of the concluded 15 assessments does not arise, which would more reiteration…………. . Thus, the judgment of Hon‟ble High court in the case of Jai Steel Ltd, supra and above decisions of the Tribunal are .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

herefore, considering the Rajasthan High Court‟s judgment in the case of Jai Steels Ltd, supra, we have no difficulty in (i) upholding the issue of notice u/s 153A of the Act and (2) in disapproving the making of the impugned additions u/s 68 and 14A of the Act, which are not backed by the incriminating materials. In the absence of incriminating material, the role of the AO is only to reiterate the returned income filed in response to the notice u/s 153A of the Act. Accordingly, in substan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ment of such assessment in terms of the Second Proviso to section 153A(1) of the Act. Notably, the Tribunal has referred to various decisions, including the judgment of the Hon ble Rajasthan High Court in the case of Jai Steel (India) (supra). Therefore, the plea of the Ld. Departmental Representative is rejected in view of the aforesaid precedent. 7.14 In conclusion, by following the ratio of the judgment of the Hon ble Bombay High Court in the case of Continental Warehousing Corporation (Nhava .....

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 in its cross- objection is allowed. 7.15 Resultantly, the ultimate decision of the CIT(A) in deleting the additions made by the Assessing Officer on account of (i) Advances received from customers considered unexplained under section 68 of the Act - ₹ 69,28,100/-; (ii) Amount received from M/s. S.K.S. Ispat Pvt. Ltd., considered as deemed dividend under section 2(22)(e) of the Act - ₹ 14,26,974/-; and, (iii) estimated addition on low household withdrawals - ₹ 6.00 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act ) dated 18/12/2008. 9.In this appeal, Revenue has raised following Grounds of appeal:- 1. On the facts and in the circumstances of the case, and in law, the CIT(A) was not justified in deleting the addition of ₹ 3,07,63,572/- by disallowing 25% of the entire. expenses of the proprietary business without appreciating that the assessee neither produced the parties to whom freight expenses were paid nor filed the details of such expenses for verification and more particularly when the co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

confirmations from the parties were not filed by the assessee and thus genuineness of the expenditure claimed as business expenditure was not proved. "3. On the facts and in the circumstances of the case, and in law, the CIT(A) was not justified in deleting the addition made by the Assessing Officer by estimating the household expenses of the assessee at ₹ 6lakhs without appreciating that the assessee had not furnished details of his household expenses and contribution, if any, by oth .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Officer in this regard and hence, the CIT(A) erred in accepting the additional evidence in contravention of the rule 46A of I T Rules, 1962" 5. On the facts and in the circumstances of the case, and in law, the CIT (A) was not justified in deleting the addition of ₹ 35,44,18,832/ - made u/s 68 of the Act by holding that that the addition made on a/c of the progressive peak balance relating to unexplained sundry creditors was not sustainable ignoring his own conclusion that the 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

nd particularly when the alleged creditors had in their original statement recorded u/s. 131 had denied the transaction of any sale of goods to the assessee and also some of them have declared commission income only on the amount of accommodation entries of purchase / sale". 9.1 The assessee has filed cross-objection raising a Ground, which is identical to that considered by us in the assessment year 2003-04 in the earlier paras. Since the issue raised in the cross-objection goes to root 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

termined the total income at ₹ 55,25,76,104/-, after making the following additions, (i) disallowance out of total expenses debited in the P&L Account on adhoc basis - ₹ 3,07,63,572/-; (ii) commission and brokerage on account of nonproduction of parties - ₹ 13,30,00,143/-; (iii) deemed dividend under section 2(22)(e) of the Act on account of receipt of money from M/s. SKS Ispat Ltd. of ₹ 2,50,89,124/-; (iv) low household withdrawals ₹ 6.00 lacs; and, (v) sundry .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

003-04, in the present year too, we have perused the manner in which the additions have been made in the assessment order. Quite clearly, the entire discussion in the assessment order does not refer to any material found during the course of search, leave alone any incriminating material, in order to support the impugned additions. Therefore, it is quite clear that the additions are not based on any seized material found during the course of search at the premises of the assessee and, therefore, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

bjection of the assessee for assessment year 2003-04(supra) applies mutatis mutandis in this year too. As a consequence, we hereby affirm the ultimate conclusion of the CIT(A) in deleting the aforesaid five additions, albeit on a different ground. 9.4 As a consequence, whereas the cross objection of the assessee is allowed, the appeal of the Revenue is dismissed. 10. Now we may take up the assessment year 2005-06, wherein Revenue and assessee have filed cross-appeals, and assessee has also filed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ddition of ₹ 1,89,39,320/ - made on account of disallowance of commission by holding that the disallowance was based on insufficient grounds without appreciating that the assessee did not file the details of such commission, neither produced the parties nor furnished the confirmations from the parties for verification and thus genuineness of the expenditure claimed as business expenditure was not proved ." 2."On the facts and in the circumstances of the case, and in law, the CIT( .....

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 addition of ₹ 76,50,46,685/ - made u/s 68 of the Act by holding that that the addition made on a/c of the progressive peak balance relating to unexplained sundry creditors was not correct and convincing, ignoring his own conclusion that the assessee was not reporting true and correct state of affairs particularly when assessee had no delivery details, lorry receipts and the alleged creditors had admitted that the transaction were only on paper." 4. "On the facts and in the cir .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

purchase/sale ". 5. "On the facts and in the circumstances of the case, and in law, the CIT(A) was not justified in deleting the addition of ₹ 2,14,45,387/- made u/s 68 of the Act, as unexplained cash credit, claimed to be advance received from customers, by holding that the addition was uncalled for, without appreciating that assessee had neither furnished the confirmations with PAN details etc., nor produced the parties for verification to establish their identity and creditwo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is a director, by ignoring that the shares of SKS Ispat Ltd of face value of ₹ 10, which were shown as purchased at highly suppressed value of ₹ 2/ - per share by the assessee whereas in the year under consideration and also in subsequent year they were sold @ ₹ 100/ - per share to others." 7. "On the facts and in the circumstances of the case, and in law, the CIT (A) was not justified in deleting the addition made u/s 69B of the Act of amount of ₹ 5,05,39,000/- .....

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 ₹ 5,05,39,000/-, ignoring that the broker in the transaction of sale/purchase of the shares was not produced for verification I examination though was specifically asked by the A. 0. 9. "On the facts and in the circumstances of the case, and in law, the CIT (A) was not justified in deleting the addition made of ₹ 30,00,000/- as unaccounted receipts by holding that the amount does not represent receipt of the assessee ignoring that the addition was made on the basis of papers .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

infer that the notings in the seized paper pertained to the assessee. The appellant prays that the order of the CIT(A) on the above ground be set aside and that of the Assessing Officer be restored. 10.1 In its cross-appeal, assessee has raised the following two Grounds of appeal:- 1. That on the facts and in the circumstances of the appellant's case and in law learned CIT (Appeal) has erred in sustaining, in part, the addition made by the assessing officer on the basis of maximum credit st .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nces of the appellant's case and in law learned CIT (Appeal) has erred in not deciding the additional ground of appeal raised by the appellant. 4. That each of the grounds of appeal enumerated above is without prejudice to and independent of one another. 5. That the Appellant craves leave to reserve to himself the right to add, alter or amend any of the aforesaid grounds of appeal before or at the time of hearing and to produce such further evidence, documents and papers in support of its cl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n 30/1/2005. In the ensuing assessment finalized under section 143(3) r.w.s. 153A(1) of the Act, the Assessing Officer has determined the total income at ₹ 87,32,79,760/-, after making the following additions (i) Disallowance of Commissioner & Brokerage expenses -Rs.1,89,39,320/; (ii)Low household withdrawals - ₹ 6,00,000/- (iii) Addition under section 69B of the Act on account of unexplained investments in purchase of shares - ₹ 5,05,39,000/-; (iv) Addition on account of 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

addition in relation to item No. (vi) above, wherein it has been partly deleted and the addition has been scaled down to ₹ 11,76,00,000/-. 10.5 Before us, the Ld. Representative for the assessee has raised a preliminary objection based on the judgment of the Hon'ble Bombay High Court in the case of Continental Warehousing Corporation (NhavaSheva)(supra), which has already been examined by us in the earlier paras for assessment year 2003-04. In the light of our said discussion, in the p .....

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 para 10.3 above are concerned, it is quite clear the same are not based on only material seized during the course of search at the premises of the assessee; therefore, following the discussion in the earlier paras for assessment year 2003-04(supra), herein also we hold that such additions are beyond the scope and ambit contemplated under section 153A r.w.s. 143(3) of the Act, and our decision in the cross-objection of the assessee for assessment year 2003-04 applies mutatis mutandis in this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t made by the Assessing Officer is held to be untenable by us while adjudicating the issue raised in the crossobjection. 10.6 Thus, the appeal of the assessee in ITA No.638/Mum/2011 as well as C.O. No.182/Mum/2010 of the assessee are allowed. 11 Now the Grounds remaining in the appeal of the Revenue are Ground Nos. 9 & 10, which relate to an addition of ₹ 30,00,000/- made by the Assessing Officer as unaccounted receipts. 11.1 In this context, the brief facts are that the said addition .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ized material, which has been reproduced in para-13 of the assessment order, indicates that one Mr. Suresh Agarwal paid the assessee ₹ 30,00,000/- in March, 2006 in two instalments of ₹ 15,00,000/- each. It is further noticed by the Assessing Officer that though there was an account of Mr. Suresh Agarwal in the account books of asessee s proprietary concern, M/s. Gupta Steel Corporation, but the aforesaid amount was not accounted for. For the said reasons, the Assessing Officer treat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rinted the same. 11.3 The CIT(A) has considered the submissions put-forth by the assessee and found that there was no material brought on record to establish that the seized papers belonged to the assessee. The CIT(A) also found that the seized documents do not indicate who is the recipient of the amounts mentioned and in what connection the money was paid. According to the CIT(A), merely because there is an account appearing in the account books of the assessee in the name of Mr. Suresh Agarwal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se papers were found is a trusted employee of the assessee and the notings in the seized paper showed that it pertain to the assessee. It was, therefore, contended that the addition has been wrongly deleted by the CIT(A). 11.5 On the other hand, the Ld. Representative for the assessee pointed out that the CIT(A) was justified in deleting the addition as there was no material to link the said seized document with the transactions undertaken by the assessee with Mr. Suresh Agarwal, which were duly .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

regard to the material on record. Even otherwise, we do not find any infirmity in the conclusion of the CIT(A) that there is no material to connect the assessee with such loose papers. Therefore, under these circumstances, we find no reasons to interfere with the conclusion of the CIT(A) in deleting the impugned addition. The order of CIT(A) is hereby affirmed and accordingly Revenue fails on Grounds of appeal No.9 & 10 also. 11.7 Resultantly, appeal of the Revenue for assessment year 2005-0 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Grounds of appeal in ITA No.9227/Mum/2010(Revenue s appeal): "1. On the facts and in the circumstances of the case, and in law, the CIT(A) was not justified in deleting the addition made by the Assessing Officer by estimating the household expenses of the assessee at ₹ 6lakhs without appreciating that the assessee had not furnished details of his household expense and contribution, if any, by other family members for scrutiny particularly when the personal withdrawals shown by 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

receipts and the alleged creditors had admitted that the transaction were only on paper." 3. "On the facts and in the circumstances of the case, and in law, the CIT (A) was not justified in. deleting the addition of ₹ 24,03,56,882/-made u/s 68 of the Act without-appreciating that the assessee did not produce books of accounts, bills, vouchers before the A.O. for examination and particularly when the alleged creditors had in their original statement recorded u/s 131 had denied 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

gh the assessee had neither furnished confirmations with PAN details etc., nor produced the party for verification to establish their identity and creditworthiness and the genuineness of the transaction and thus the assessee had failed to discharge the onus cast upon him under the provisions of section 68 of the Act. 5. "On the facts and in the circumstances of the case, and in law, the CIT (A) was not justified in deleting the addition made of ₹ 30,00,000/ - as unaccounted receipts b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, without appreciating that the addition was made on the basis of papers seized during search from the assessee's trusted employee and there was sufficient material to infer that the notings in the seized paper pertains to the assessee. Grounds of appeal in ITA No.664/Mum/2011-(Assessee s appeal): 1. That on the facts and in the circumstances of the appellant's case and in law learned CIT (Appeal) has erred in sustaining, in part, the addition made by the assessing officer on the basis 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

unds of appeal enumerated above is without prejudice to and independent of one another. 4. That the Appellant craves leave to reserve to himself the right to add, alter or amend any of the aforesaid grounds of appeal before or at the time of hearing and to produce such further evidence, documents and papers in support of its claim as may be necessary. 12.1 The first Ground in the appeal of the Revenue is with respect to the decision of the CIT(A) in holding that there was no justification for 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

as there is no evidence regarding unaccounted household expenses found during the course of search. The CIT(A) further notes that the Assessing Officer has not considered the number of family members and the individual withdrawals made by them. None of the aforesaid findings of the CIT(A) have been negated by the Revenue before us and, therefore, we hereby uphold his decision of deleting the impugned addition. Thus, on this aspect Revenue fails. 13. In so far as, the Grounds No.2 to 4 in the 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

ment proceedings, the Assessing Officer considered the maximum credit balance standing in the names of the following eight creditors at ₹ 24,03,56,882/- as unexplained credits within the meaning of section 68 of the Act:- Name of the party Amount (Rs.) 1. Nisha Enterprises 21608878 2. Loha Ispat Ltd. 40280019 3. Bhagwati Steel Cast. Ltd. 14961115 4. Offshore Industrial Const.(P) Ltd. 29315674 5. Balaji Trading Co. 14984883 6. N. Mohanlal & Co. 52781812 7. Shivoham Steel Traders 5132947 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

taking into consideration the submissions put-forth by the assessee, the remand report of the Assessing Officer as well as the material on record noticed that out of the statement of seven parties referred by the Assessing Officer six parties retracted their statements by filing affidavits. The CIT(A) has also noted that during the remand proceedings called for by him, the Assessing Officer recorded fresh statements of six parties, where they admitted that their transactions with the assessee 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

n an addition of ₹ 10.96 crores with respect to the trading results of the assessee. The CIT(A) arrived at such an addition by considering that the gross profit normally earned is @ 6.5% and after taking into account the gross profit of 2.32% declared by the assessee, the differential of 4.18% was applied on the total turnover of ₹ 262 crores declared by the assessee and computed the addition of ₹ 10.96 crores to the trading results. In this background, the Revenue is in appeal .....

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 original statement of the creditors recorded by the Department, such creditors had initially denied supply of goods and, therefore, the Assessing Officer was justified in treating such creditors as unexplained. 13.4 On the other hand, Ld. Representative for the assessee pointed out that the CIT(A) made no mistake in setting-aside the action of the Assessing Officer because there was no material adverse with respect to the seven parties in question. In this context, the Ld. Representative for 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

eferred by Assessing Officer also related to the purchases effected by the sister concern M/s. S.K.S. Ispat & Power Ltd., and in that case vide ITA NO.9203/Mum/2010 dated 06/06/2014 for assessment year 2006-07, the addition has been deleted by the Tribunal. By referring to the copy of the order of the Tribunal dated 6/6/2014(supra), it is pointed out that in that case also additions with respect to the sundry creditors were made on similar circumstances and the same stood deleted. 13.5 We ha .....

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 09.06.2008 wherein he stated the transactions were mere paper transactions. However Shri Kamlesh Ajmera subsequently retracted his said statement vide affidavit dated 27.10.2008 and confirmed before the A.O. during remand proceedings on 23.02.2010 that the transactions were genuine. 2 Loha Ispat Ltd. 40,280,019 The addition was made without raising any specific query for this party. A.O. added the closing outstanding balance ignoring the business transactions during the year. No summons has b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and the same was forwarded to the A.O. The party appeared before A.O. in remand proceedings and confirmed the transaction. 4 Offshore Industrial Const. (P.)Ltd. 29,315,674 The addition was made without raising any specific query for this party. No summons has been issued by the A.O. The Assessee has paid the entire outstanding amount in subsequent year. The assessee has filed confirmation of party with PAN before the CIT(A) and the same was forwarded to the A.O. 5 Balaji Trading Co. 14,984,883 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

same was forwarded to the A.O. 6 N.Mohanlal & Co. 52,781,812 No summons has been issued by the A.O. The Assessee has paid the entire outstanding amount in subsequent year. The assessee has filed confirmation of party with PAN before the CIT(A) and the same was forwarded to the A.O. 7 Shivoham Steel Traders 51,329,471 No summons has been issued by the A.O. The Assessee has paid the entire outstanding amount in subsequent year. The assessee has filed confirmation of party with PAN before 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

ertinent to note that none of the above mentioned parties have denied making any sales to the appellant. The aforesaid parties had made purchases from some of the alleged parties who have stated that they had issued accommodation bills were in favour of the above parties and not the appellant. But of such accommodation bills, how much quantity or value of bills was part of the purchase of appellant has neither been enquired nor quantified. In none of the above cases, there are any instances of 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

eant that the entire addition has been based on the examination of only less than 5% of the parties who initially accepted the transaction, then denied the same and later again changed the stance by accepting it. The frequent change of stance by such parties is by itself (making their entire statements doubtful and not worth taking as evidence on record. 48. During the course of hearing, the appellant without prejudice to the submission already made submitted without admitting that assuming all .....

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 both purchases and sales parties have been admitted as genuine then it is not correct to doubt the progressive balance of the said party as bogus particularly when the sundry creditors have appeared before the AO during the remand proceedings and have admitted of having supplied the goods and also received the payment. The concept of peak or initial investment would apply in those cases, where the rotation of the funds is identified and there is some cash withdrawn at some stage. However, 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

ot taken into consideration the retracted affidavit made by the 6 parties out of 7 parties inspite of the fact that the same were given to the AO during the course of assessment proceedings. The AO during the course of remand proceedings Issued summons to all these 6 parties have admitted to have sold goods to the appellant and have received the payments by a/c payee cheques only. Inspite of the said statements the doubt still remains because one party Mrs. Mehrunisa Husseini director of M/s. Ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t has doubted the progressive peak balance payable to these creditors as doubtful and made additions which is not correct and convincing particularly considering the-facts of the case made therefore on a/ c of progressive peak balance is not sustainable. 13.6 The first point to be noticed is the finding of the CIT(A) that the aforesaid parties have not denied making of sales to the assessee, but the aforesaid parties had made purchases from certain other parties who stated that they had issued 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

e meaning of section 68 of the Act. The said approach of the Assessing Officer is itself suspect because what is expected to be assessed under section 68 of the Act are the particular credits which are found to be unexplained. 13.7 It is also emerging that the action of Assessing Officer is based on the verification carried out from seven parties involved in purchase transactions over various assessment years, and not in relation to the transactions carried out specifically in the instant assess .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dertaken accommodation transactions, 6 of them retracted their statements by filing affidavits and during the course of remand proceedings directed by the CIT(A), Assessing Officer summoned such 6 parties who admitted to have sold goods to the assessee. We find that after such retraction by the creditors and recording of their statement by the Assessing Officer, there is nothing brought on record by the Revenue to disprove that such retractions are untenable or bad in the eyes of law. In any cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terprises is concerned, the Assessing Officer made the addition on the basis of statements of Shri Kamlesh Ajmera dated 9/6/2008, wherein it was stated that the transactions were mere paper transaction. It is seen that subsequently, the said creditor retracted his statement and confirmed the same before the Assessing Officer in the remand proceedings by asserting that the transactions were genuine. We find that similar situation was before the Tribunal in the case of S.K.S Ispat & Power Ltd. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce in so far as they relate to setting-aside of the action of the Assessing Officer in treating the sundry creditors as unexplained. Therefore, on this aspect Revenue fails. 13.9 In so far as assessee s appeal is concerned, it is contended that the CIT(A) was not justified in making an addition of ₹ 10.96 crores to the trading results. It is seen that the CIT(A) opined that the trading results were not reliable for the reason that in the case of one of the parties i.e. Mrs Mehrunisa Hussei .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

by the assessee with the said concern during the year under consideration. Secondly, it is canvassed on an alternative basis that the adoption of gross profit @ 6.5% by the CIT(A) is unreasonable and in any case the CIT(A) has erred in applying the G.P at 6.5% on the entire sales of the assessee. 13.11 We have carefully considered the rival submissions. In our considered opinion, the addition to the trading results made by the CIT(A) is based on conjectures and surmises, in as much as, the 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

h the assessee. The addition made on similar basis in connection with transactions with M/s. Nisha Enterprises in the hands of the sister concern S.K.S Ispat & Power Ltd. (supra) for assessment year 2006-07 has been deleted by the Tribunal. Considered in this light, in our view, so far as trading results for the instant assessment year are concerned, the same cannot be treated as unreliable on the basis of the verification exercise of the creditors carried out by the Assessing Officer. Furth .....

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     ↓  

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)

Forum: Input tax credit

Forum: GST on Notional rent

Forum: GST ON SALES PROMOTION

Forum: 3B mistake

Forum: Excise duty credit on finished stock at additional place of business.

Forum: PROCEDURE FOR SHIFTED OF FINISHED GOODS FROM AP KARNATAKA TO UP

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

Forum: Input credit of gst paid on urd

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

News: Auction for Sale (Re-issue) of Government Stocks

Article: TDS APPLICABILITY ON GOVERNMENT CONTRACTS UNDER GST (Under Section 51 of the CGST Act, 2017)

News: Manmohan takes potshots at note ban, 'hasty' rollout of GST

News: GST on petrol, diesel requires wider discussion: Nitish

Article: WHEN CAN ONE TAKE ITC FOR RCM CASES?

Notification: TDS liability under Section 51 of CGST, 2017 come into force w.e.f. 18-9-2017 - Persons liable to deduct TDS from payment made or credited to the supplier of taxable goods or services specified

Notification: Central Goods and Services Tax (Seventh Amendment) Rules, 2017

Notification: Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017

Circular: Filing of Special Leave Petition against Orders of Hon'ble High Courts staying Collection of Tax under GST- reg.

Highlight: Exemption u/s 54F - LTCCG - once entire net consideration is invested, the absence of completion certificate cannot be a ground to deny the benefit of deduction.

Highlight: Deduction u/s 10B - initial AY - Mere authorization to enable the Assessee to import material or export produce in the earlier date would not ipso facto tantamount to commencement of substantial activity of ‘manufacture’/’production’.



|| 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