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 →

DCIT, Central Circle-18, New Delhi Versus Brentwoods International Ltd, (formerly known as Orphic Resort Ltd)

MAT computation - Addition on account of provisions for gratuity and provisions of leave encashment made u/s 115JB to the book profit - Held that:- CIT(A) has deleted the above addition because of the reason that the provision of leave encashment as well as the provision of the gratuity are meant on the actuarial valuation as per the accounting standard 15 of Ministry of Corporate Affairs and both the liabilities are ascertained liability and therefore they cannot be stated to be an understated .....

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 has become sick industrial company under subsection (1) of section 17 of the sick industrial companies (special provisions) act, 1985 and ending with the assessment year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses was required to be reduced from the profit under section hundred and 115JB of the Act. Therefore, apparently, if the assessee’s net worth has become positive during the year then assessee is eligible for the deduction of the pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with a direction to verify the computation of net worth. - ITA No. 5854/Del/2015 - Dated:- 5-9-2017 - Shri H. S. Sidhu, Judicial Member And Shri Prashant Maharishi, Accountant Member Revenue by : Shri Shravan Gotru, Sr. DR Assessee by : Shri Rakesh Kumar, CA ORDER Per Prashant Maharishi, A. M. 1. This is an appeal filed This appeal is preferred by revenue against the order of the Ld. CIT(A)-27, New Delhi dated 31/08/2015 wherein adjustment made by the Ld. assessing officer to the book profit 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

3/- on account of provisions of leave encashment made u/s 115JB of the Act to the book profit, as they were in the nature of unascertained liabilities. 2. That the Commissioner of Income Tax (Appeals) has erred in law and facts of the case in deleting the addition of ₹ 95827635/- on account of accumulated losses on account of profit of sick industrial company to the book profit u/s 115JB of the Act. 3. The assessee is a limited company who filed its return of income showing Nil income 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

) read with Section 263 of the Act on 06/02/2015 wherein he has made an addition to the book profit of the assessee of provision for gratuity and leave encashment. A further addition of ₹ 95827635/- was also made on account of profit of sick industrial company because of the fact that the said company has positive net worth and its paid-up capital and free reserve are at ₹ 16.30 crores. Since the accumulated losses according to the Ld. Assessing Officer are much less than the paid-up .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

encashment paid under section 115 JB of the Income Tax Act to the book profit by the Ld. Assessing Officer deleted by the Ld. CIT(A). 5. The Ld. departmental representative relied upon the orders of the Ld. AO and Ld. authorised representative relied upon the order of the Ld. CIT(A). 6. We have carefully considered the rival contentions. The Ld. CIT(A) has deleted the above addition because of the reason that the provision of leave encashment as well as the provision of the gratuity are meant 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

t of the assessee of ₹ 95827635/-. The Ld. CIT(A) deleted the above addition. For the reason that as on 31/03/2009 the net worth of the company was ₹ 45545258/- and not ₹ 163089419/-. According to the Ld. CIT(A), the net worth of the company turned positive. During the year under consideration after it was already sick therefore it s profit of ₹ 95827635/- shall be reduced under clause (Vii) of the explanation to section hundred and 115JB of the act. 8. Ld. DR relied upon .....

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     ↓  

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

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

Forum: GST Invoice

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

Forum: 3B mistake

Forum: Input tax credit

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

Forum: Due date of Filing TRAN-1

Highlight: Diversion of income at source - Joint venture agreement - 97% of the receipt transfer to M/s TRG Industries (P) Ltd. - scope of the agreement - it is diversion by overriding title - not taxable in the hands of assessee - HC

Highlight: Expenditure on eligible projects or schemes u/s 35AC - After 01.04.2017 the legislature desired to withdraw such deduction. - The Union legislature was competent to introduce such amendment - HC

Highlight: Transfer of trading assets at cost price, the profit component also stood transferred to the outgoing Directors, which otherwise belonged to the Company - the fact that AO has made the addition in the hands of the Directors would not make any difference - additions confirmed - HC

Highlight: The interest u/s 234B of the Act cannot go beyond the stage of S.245D(I) before the Settlement Commission - HC

Highlight: Galvanized iron pipe is a different commercial commodity than a iron pipe, therefore the activity of galvanization in our considered opinion amounts to manufacture - Deduction u/s 80-IB allowed - HC

Highlight: Penalty u/s 271C - non deduction of TDS on interest paid to sister concerns in terms of Section 194A - Levy of penalty confirmed - HC

Highlight: Disallowance of interest - reference to section 179 - The legislature has also recognised, that the doctrine of lifting of veil in the matter of tax dues is to be applied to prevent fraud etc. and not where the company has suffered despite its normal bona fide function. - HC

News: RBI Reference Rate for US $

Notification: Amendment in Notification No. S.O. 3118(E), dated the 3rd October, 2016

Highlight: Discount on ESOP to be allowed as business expenditure u/s 37(1), during the years of vesting on the basis of percentage of vesting during such period, subject to upward or downward adjustment at the time of exercise of option.

Notification: Central Government appoints the 20th September, 2017 as the date on which proviso to clause (87) of section 2 of the Companies Act 2013, shall come into force

Notification: Companies (Restriction on number of layers) Rules, 2017

Highlight: Penalty u/s 271(1)(c) - additional income disclosure - surrender of income post survey u/s 133A - he disclosure made by the assessee is voluntary in nature, in the revised return - no penalty

Highlight: Reopening of assessment - notice u/s 148 issued on the directions of JCIT / CIT - a perusal of reasons for initiating reassessment proceedings clearly show that they are against the sprit of provisions u/s 147

Highlight: MAT - Adjustment to book profit - computation u/clause (f) of Explanation-1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A r.w.Rule 8D of I.T. Rules.

Highlight: Addition on account of alleged suppression of service value received - the addition made simply believing the Form 26AS will be an arbitrary exercise of power which cannot be sustained

Notification: Exempts intra state supply of heavy water and nuclear fuels from DAE to NPCIL

Notification: Seeks to amend notification No. 12/2017-UTT(R) to exempt right to admission to the events organised under FIFA U-17 World Cup 2017

Notification: Seeks to amend notification No. 11/2017- UTT(R) to reduce CGST rate on specified supplies of Works Contract Services

Highlight: Liability to pay duty on import of software - Though no authorization was given by the appellant to DHL, it is an undisputed position that the software has, in fact, been ordered by the appellant and have been delivered to them by DHL - the appellant is to be considered as the importer



|| 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