The AO disallowed expenses u/s 43B of the Act.for the assessment year 2006-2007 as they were duly mentioned in the Audit Report that Service Tax and other Taxes were not paid till the finalization of the Audit Report and also not paid till the filing of the return of income.
My queries are-
1) Can the AO levy penalty u/s 271(1(c)as we have a plea that there was no concealment of income or any fact and we had duly mentioned about the facts in our audit report. We have a case law too regarding this issue which is as follows-

It was Held, that as material facts necessary for disallowance were duly disclosed in audit report filed with Return of Income,the assessee’s contention was being genuine, bonafide and innocent mistake was accepted, and that penalty cannot be imposed, as there was no malafide intentions on the part of assessee in the case of-

Akshay Enterprises (P) Ltd. vs. ACIT – (2007) 161 Taxman 168 (Amritsar).

I will like to ask here that will this plea work or not for us and are there any other rulings regarding this issue.

2)How will we be able to claim the expenses in assessment year 2007-2008 if we had paid the expenses in the assessment year 2007-2008. The Dis allowance was for the assessment year 2006-2007 and we have received the assessment order only now and its too late for us to revise our return for the assessment year 2007-2008 now that is in the year when we had made the payment for taxes.Is there any method of rectification of mistake u/s 154 regarding this after we receive the assessment order u/s 143(1) for assessment year 2007-2008 or some other way out.

3)If we dont go for appeal against the order for the assessment year 2006-2007 now and accept the dis allowance made by the AO as it is, will we be able to appeal against the penalty u/s 271(1)(c)later if levied by the AO or we will we lose the strength in our case by not appealing against the assessment order passed by the AO.

4) Will this addition be termed as dis allowance or not as it was not a dis allowance perse but the expense or payment was deferred to next year.

Thanks.

Hi.

1. Am looking for statutory requirements to run a private ltd co. 80% of shares are held by a foreign national and 20% by an india.
2. These shares are in the name of this lady and she needs to transfer into her company. is there any RBI/ROC regulations etc.,

Hello
i have just cleader my CPT(14th Dec) with 121 marks.
What is the next step that i should take.which is the best place for PCC coaching,Articleship & ITT?i stay in chandigarh.Is there any good firm to join for articleship?
If not Chandigarh then which is the next best alternative for articleship?

as i have applied for account technician certificate on online mode but i fail to receive it plz tell me what should i do or if i have to submitted by post if yes on which address

Hai i have qualified my first group of Ca Final in first attempt but i m failed in seconfd group thrice wt strategy i should adopt to get good marks i m studying vinod gupta for Dt , Ajay Jain for IDT , Dinesh madan for MICs, Study for Csoting my marks are not gud how can i improve i got up to 194 bt reducing after that where the trouble is can any one help me

Hi,

We started our Manpower recruitment business in the month of October 2008. Due to ignorance and mistakes of our accounts executive ,we started raising invoices using unregistered service tax number.(infact our executive used some PAN No.with ST001) and told us that he will get it registered soon. so we started collecting service tax. We collected total service tax around 56000 from oct to december 2008. Now our customer called us a day back and asked for the service tax papers which we dont have. now we have applied for a new service tax number and requesting our client to either use our new service tax number or get all his service tax refunded from us. We are very disturbed and confused as we dont know how to handle this crisis. client is calling us and thretening continuously for heavy penalty and interests on our income too.

Kindly help
Raj

Hi, i have cleared the ca final examinations held in november 2008, in the first attempt, can u kindly reply me about the procedures to be complied with for the CISA course to be done and what are the requirements to be fulfilled.

As per Income Tax Act there is no time limit for issue of notice to other person under section 153C.Assessing officer has issued notice to file I Tax Returns for A.Y.98-99 to 2003-04.Notice has been issued on 31-10-2008.Is the notice valid asking to file I Tax Return beyond period of six years?

if taxable output services are provided in india but collected outside india whether service tax will be levied? whether it will be the same if the case is reversed i.e collection in india but services are provided outside india.
what is service tax as a reverse charge basis?

The vat paid on purchases of fixed assets during the pre-operation period can be claimed as refund(since there is no sale during the preoperation period).

Can this refund be adjusted for the payment of sales tax after the operation starts or one has to specifically apply for refund(by submitting the required application Form)

Please reply... It's urgent.