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 →

Commissioner of Income-Tax Versus SVE Engineers P. Ltd.

Allowance of payment made towards sub-contractors - genuity of expenditure - Held that:- In the instant case, the work said to have been executed by the sub-contractors is not found as unconcerned or unconnected to the work undertaken by the assessee and hence the claim of payment made for such work by the sub-contractors deserves to be accepted as a genuine expenditure incurred by the assessee. - All payments made through banking channel need not be treated as genuine automatically on their .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sub-contracting a part of his work. There is nothing to doubt, in such circumstances, regarding the genuineness of payments effected through banking channels in favour of the two sub-contracting agencies. - Decided in favour of assessee - Tax Case Appeal No. 350 of 2016 - Dated:- 7-9-2016 - Nooty Ramamohana Rao And Dr. P. Devadass, JJ. For the Appellant : J. Narayanasamy, Senior Standing Counsel For the Respondent : M. P. Senthilkumar JUDGMENT Nooty Ramamohana Rao, J. 1. This tax case appeal is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ayment made towards sub-contractors can be allowed as deduction, even though the assessee had not filed any supporting bills or any other evidence for the expenses debited in the assessee's books of account ?" 2. The assessee is engaged in manufacturing/trading of "material handling equipment" like belt conveyors, screw conveyors, elevators, pipe conveyors and other similar products. The assessee has claimed certain expenditure incurred by it by way of payments made to M/s. Er .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ent/adjustment entries which are normally resorted to for reporting less quantum of profit arising out of business/trading activity undertaken by the assessee. On the above basis, the Assessing Officer has disallowed the amount of little more than ₹ 2.38 crores. 3. The assessee preferred an appeal to the Commissioner of Income-tax (Appeals). During the course of consideration of the appeal, the assessee has presented certain additional evidence in support of his claim that there is nothing .....

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 material additionally produced by the assessee is acceptable as the assessee has produced the proprietaries of both the sub-contracting agencies namely M/s. Erections India and M/s. Tekno Conveyor for examination, who have confirmed that they have carried on sub-contract work for the assessee in the project entrusted by the principal to the assessee. In the face of such material and also in view of the fact that the tax deducted at source by the assessee while making payments to the sub-con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ution of the project, the two sub-contracting agencies have intimated, from time to time the running work progress details to the assessee which contained the details of quantity of structural steels of the executed work, for the verification and approval of the assessee. Any such arrangement pre-supposes the existence of a sub-contracting agency as otherwise there was no necessity for the so called sub-contractors to make available the data of the works executed by them, to the assessee. It is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

namely M/s. Vedanta have issued mechanical completion and commissioning completion certificate to the assessee in respect of Bauxite Grinding and Modification Conveyors Work, a part of the said work is what turned out to have been sub-contracted by the assessee. Some of the payments made by the assessee are found through the banking channels and hence the Tribunal accepted the same as payments made to a sub-contractor. 5. Sri J. Narayanasamy, learned senior standing counsel for the Revenue woul .....

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 as genuine payment, which is required to be established. Though we see considerable force behind the submission of Sri J. Narayanasamy, the payments made through banking channel are not a substitute method for establishing the genuineness of the payment so made, but, however, the same is a strong indicating circumstance of the existence of an obligation to make payment at the first instance. In the instant case, the obligation that arose on the part of the assessee to make such payment can .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng as the said running work details are not discredited as totally unconnected to the work which the assessee was required to execute towards its principal, the theory of sub-contracting that part of the work, set up by the assessee gains credibility. Though for all practical purposes and intent, it is safe to make payment through banking channel, for the sake of accounting convenience, but any such payment would pass muster as a genuine payment, if the obligation to make such payment springs ou .....

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: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Forum: 3B mistake

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

Forum: GST - TRAN1 - filed - Data uploaded with Remarks Processed with Error - Not coming in Electronic credit ledger - need suggession guidance

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Article: RCM Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

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

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: Due date of Filing TRAN-1



|| 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