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 →

Sri Chaitanya Rice Mill, Chelluru Versus DCIT, Circle-1, Kakinada

Revision u/s 263 - Addition invoking the provisions of section 40(a)(ia) - Held that:- Since the assessee did not furnish any details with regard to interest paid to the creditors, the Assessing Officer was directed to obtain the details and to examine “afresh” at the time of giving effect to this order and “disallow proportionate interest which is attributable to the acquisition of capital assets”. As rightly pointed out by the assessee wherever the Revisional Authority thought fit to set aside .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a revenue expenditure. - While giving effect to the order, the Assessing Officer however, did not consider the issue as to whether it was capital or revenue expenditure. Since the specific direction of the ld. Commissioner was not followed by the Assessing Officer, the order of the ld. CIT(A) as well as Assessing Officer deserves to be set aside on this limited issue with a direction to the Assessing Officer to examine the nature of the expenditure and to disallow proportionate capital expe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sing Officer by invoking the provisions of section 40(a)(ia) of the Act is the subject matter of dispute before the Tribunal. 3. The assessee-firm is engaged in the business of conversion of paddy into rice and sale of rice and its by-products. For the year under consideration, it declared a loss of ₹ 16,16,002/- and assessment was originally completed under section 143(3) on the total loss of ₹8,22,020/-. Thereafter, Revisional Authority set aside the assessment under section 263 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

essee. 4. I am concerned herein with the claim of deduction of ₹ 52,28,927/- referable to interest paid to loan creditors; according to the assessee firm, the loans were taken for running of the business and capitalised the interest paid to the creditors before commencement of the business 5. On perusal of the profit & loss account, ld. Commissioner called upon the assessee to furnish the details in this regard. Since no such details were furnished, the matter was set aside with a dire .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

taht loans were taken for the running of the business, and capitalised the interest paid to the creditors before the commencement of the business. The assessee did not furnish any details in this regard. The Assessing Officer is directed to obtain the details and the same needs to be examined afresh at the time of giving effect to this order and disallow proportionate interest which is attributable to the acquisition of capital assets. 6. While giving effect to the order of the ld. Commissioner .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

om interest was paid without deducting tax at source which works out to ₹28,20,717/- and disallowed the same under section 40(a)(ia) of the Act. 7. Aggrieved, assessee contended before the ld. CIT(A) that the Assessing Officer erred in invoking the provisions of section 40(a)(ia) of the Act during the set aside proceedings since the direction of the ld.Commissioner was merely to consider as to whether the expenditure is revenue in nature and thus, the Assessing Officer could not travel bey .....

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 includes applicability of TDS provisions and disallowance of section 40(a)(ia) of the Act. 9. Further aggrieved, assessee is in appeal before the Tribunal. 10. Learned counsel adverted my attention to the order of the Revisional Authority and in particular referred to para 14.1 to submit that wherever the Assessing Officer was to invoke the provisions of section 194A read with section 40(a)(ia) a specific direction was given by the ld. Commissioner which is conspicuously absent with regard 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

thority:- a) DCIT Vs. Prescon Builders (P) Ltd. [171 TTJ 788 (Mumbai)] b) Cawnpore Chemical Works Pvt. Ltd. Vs. CIT [197 ITR 296 (All.)] 11. On the other hand, Learned Departmental Representative strongly relied upon the orders of the tax authorities. 12. I have carefully considered rival submissions and perused the record. 13. Ground Nos. 1 to 5 are general in nature and therefore, need not require independent consideration. 14. Ground No.4 is with regard to Form No. 15G from the creditors. 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

 

 

 

 

 

  ↓     Latest Happening     ↓  

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

Forum: transfer of shares

Forum: Input tax credit

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Forum: Input credit of gst paid on urd

Forum: 3B mistake

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

Forum: GST return filing software online | Easy GST compliance management

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

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

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?



|| 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