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 →

JM Sheth Versus Commissioner of Income-Tax, Madras

Tax Case No 7 of 1961 (Reference No 7 of 1961) - Dated:- 22-8-1963 - JAGADISAN J. JUDGMENT This is a reference under the Indian Income-tax Act The question referred is as follows : Whether the inference of the Tribunal that the Income-tax Officer had exercised his discretion lawfully in applying the proviso to section 23(4) to reject the assessee s renewal application u/s 26A is legal ? We heard the reference before and called for a further statement 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

htly in conformity with law in refusing registration to the assessee-firm The Income-tax Officer refused registration because the assessees were in default in complying with the terms of the notice u/s 22(4) calling for documents and account books relating to the assessee s business Taking the view that the assessees failed to comply with the statutory notice u/s 22(4), the Income-tax Officer passed a best judgment assessment permissible u/s 23(4) On this followed the order of the Income-tax Off .....

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 held that the estimated income of ₹ 1,50,000 made by the officer was not warranted He reduced the estimate to ₹ 75,000 He also directed registration of the firm On appeal by the department the Tribunal restored the order of the Income-tax Officer fully In other words, the Tribunal held that the officer s estimate of the income was correct and that his refusal to register was also proper The assessment of the income of the assessees as ₹ 1,50,000 by the 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

ding the order of the Income-tax Officer refusing registration Learned counsel for the department contends that it is not open to the assessees to submit at this stage before us that there has been no default on their part in complying with section 22(4) notice, as that question must be deemed to have been set at rest by the very act of the assessees in allowing the Tribunal s order regarding the quantum of assessment to stand The argument is that there cannot be two conflicting views .....

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 be precluded from considering the question whether there was in fact a default on the part of the assessees to attract the penalty of non-registration quite independent of the implications that may be attributed to the best judgment assessment The assessee has a right under the Act to claim the benefit of registration under certain conditions laid down by the Act If those conditions are present he would be entitled to registration That right should not be taken away merely because he suffers 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

ns reads : 23 (4) If any person fails to make the return required by any notice given under sub-section (2) of section 22 and has not made a return or a revised return under sub-section (3) of the same section or fails to comply with all the terms of a notice issued under sub-section (4) of the same section or, having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of this section, the Income-tax Officer shall make the assessment to the best .....

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 are visited with the penalty of a best judgment assessment But such a penalty only flows from the conduct of the assessee himself In the face of a contumacious default on the part of the assessee, the Income-tax Officer vested with the statutory duty of making assessment has no alternative but to proceed to determine the assessment in as good a manner as possible, indulging of course in some guess-work within the limits of honesty Refusal to register, however, does not appear to be an inevitab .....

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, there cannot be a better legislative pointer to indicate that the first is obligatory and the second is discretionary We have no doubt that the statute does not compel the officer to deprive the assessee of the benefit of registration under the last part of section 23(4) In other words, it would be wrong to assume that the defaults listed in section 23(4) of the Act would lead to a two-fold penal consequence : (1) a best judgment assessment, and (2) in the case of firms, refusal to register 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

fore, he should exercise it not arbitrarily or capriciously but in a manner consistent with judicial standards This, in our opinion, is the true scope of section 23(4) of the Act We cannot help observing that in the instant case neither the Income-tax Officer nor the Appellate Tribunal seem to have had a correct perspective of the question We shall now consider the question as to whether in fact the assessees were in default in the matter of compliance with the notice u/s 2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

equirement A rough day-book is one maintained in the regular course of business and the above-mentioned letter called upon the assessee to produce genuine books of account maintained in the regular course of business In our opinion the assessee failed to produce these books The Tribunal is in error in stating that the letter of the officer dated November 14, 1951, called upon the assessees to produce the rough day-books There was no such direction in that letter The learned counsel fo .....

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:p> It is true that there is a lot of discrepancy between the stock position as disclosed in the assessee s stock book and the sales accounts now produced by them It may be that even the assessee s explanation for the discrepancies pointed out was not quite convincing But the real question is whether it can be said that the assessee must have been maintaining another set of account books and that they committed default in not producing them in complying with the notice u/s 22(4) of the Ac .....

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     ↓  

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’.

Circular: Sub:- Procedure to be followed for Import under DEEC/EPCG Scheme- reg.



|| 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