grounds for appeal
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 March 2011
how to prepare grounds of appeal for a company?
24 March 2011
Example:- Grounds of appeal for Gross profit addition of Rs. 75,000/-
1. The learned ITO, erred in the ad hoc addition of gross profit of Rs.
75,000/-.
2. The learned ITO, failed to appreciate that, the appellant maintained stock
register and he / she has not found any discrepancies in the
books of account maintained by the appellant. Therefore just because gross profit is
comparatively less during the year, that cannot be the basis to make ad hoc
addition of Rs. 75,000/-.
1. The learned ITO, erred in the ad hoc addition of gross profit of Rs.
75,000/-.
2. The learned ITO, failed to appreciate that, the appellant maintained stock
register and he / she has not found any discrepancies in the
books of account maintained by the appellant. Therefore just because gross profit is
comparatively less during the year, that cannot be the basis to make ad hoc
addition of Rs. 75,000/-.
Message likes :
1 times
24 March 2011
GROUNDS OF APPEAL
On the facts and circumstances of the case the Learned Assessing Officer erred in law in as much as erroneously treating the inaccurate particulars of income by making the change of head under which it would be taxed without considering the petitioner’s contention that the profits arising out of share transaction should ought to have been treated as capital gains and not as business income, interalia, on the following:-
G R O U N D S
1. FOR THAT the Learned Assessing Officer disagreed with and/or negated the contentions and submissions of the petitioner that the share transactions were sporadic and not continuous to be considered and/or be treated as a business income thereby contradicting with the settled position of law as observed by the Hon’ble Apex Court, interalia, treating the profit from the transaction of shares as business income.
2. FOR THAT the Learned Assessing Officer erred in considering the two essential requirements for an activity to be considered as business income, interalia, that the transactions must be a continuous course of activity and that it must be carried on with a profit motive. The said principle has been specifically observed by the Hon’ble Apex Court in various judgments.
3. FOR THAT the Learned Assessing Officer erred in considering the fact that the profits and/or income arising out of share transactions ought to have been real, substantial, and systematic and/or in an organized course of activity on the part of the assessee with the aim of earning profits in order to be treated as a business income.
4. FOR THAT the petitioner states and submits that according to Income Tax Act, 1961, profit on sale of securities should be treated as Short Term Capital Gain only when delivery of securities is taken. In this case the petitioner had submitted and/or furnished details of the DMAT account statement evidencing delivery of securities in favour of the petitioner.
5. FOR THAT the petitioner states and submits the share transaction are not undertaken at regular intervals and accordingly the profits arising out of share transaction should ought to have been treated as capital gains and not as business income.
6. FOR THAT the Learned Assessing Officer acted erroneously in as much as treating the entire income of the petitioner to the tune of Rs.50,14,029/- as business income and accordingly issued a notice as per the provisions of Section 271B read with Section 44AB for failing to submit the Tax-Audit report thereby ignoring the fact that the total business income of the petitioner was only to the tune of Rs. 24,35,002/-.
7. FOR THAT the provisions of Sections 234A, 234B and 234C of the Income Tax Act, 1961 charging interest on outstanding tax can not and must not be applied in the case of the petitioner.
8. FOR THAT the penalty proceedings initiated under the provision of Section 271(1)(c) of the Income Tax Act, 1961 is not applicable in the case of your petitioner.
9. Your petitioner craves leave to amend, modify and/or alter grounds and/or to adduce and rely upon such further evidence and/or documents as may be required at anytime before and during the time of hearing.
10. Your petitioner craves leave to amend, modify and/or alter grounds and/or to adduse and
On the facts and circumstances of the case the Learned Assessing Officer erred in law in as much as erroneously treating the inaccurate particulars of income by making the change of head under which it would be taxed without considering the petitioner’s contention that the profits arising out of share transaction should ought to have been treated as capital gains and not as business income, interalia, on the following:-
G R O U N D S
1. FOR THAT the Learned Assessing Officer disagreed with and/or negated the contentions and submissions of the petitioner that the share transactions were sporadic and not continuous to be considered and/or be treated as a business income thereby contradicting with the settled position of law as observed by the Hon’ble Apex Court, interalia, treating the profit from the transaction of shares as business income.
2. FOR THAT the Learned Assessing Officer erred in considering the two essential requirements for an activity to be considered as business income, interalia, that the transactions must be a continuous course of activity and that it must be carried on with a profit motive. The said principle has been specifically observed by the Hon’ble Apex Court in various judgments.
3. FOR THAT the Learned Assessing Officer erred in considering the fact that the profits and/or income arising out of share transactions ought to have been real, substantial, and systematic and/or in an organized course of activity on the part of the assessee with the aim of earning profits in order to be treated as a business income.
4. FOR THAT the petitioner states and submits that according to Income Tax Act, 1961, profit on sale of securities should be treated as Short Term Capital Gain only when delivery of securities is taken. In this case the petitioner had submitted and/or furnished details of the DMAT account statement evidencing delivery of securities in favour of the petitioner.
5. FOR THAT the petitioner states and submits the share transaction are not undertaken at regular intervals and accordingly the profits arising out of share transaction should ought to have been treated as capital gains and not as business income.
6. FOR THAT the Learned Assessing Officer acted erroneously in as much as treating the entire income of the petitioner to the tune of Rs.50,14,029/- as business income and accordingly issued a notice as per the provisions of Section 271B read with Section 44AB for failing to submit the Tax-Audit report thereby ignoring the fact that the total business income of the petitioner was only to the tune of Rs. 24,35,002/-.
7. FOR THAT the provisions of Sections 234A, 234B and 234C of the Income Tax Act, 1961 charging interest on outstanding tax can not and must not be applied in the case of the petitioner.
8. FOR THAT the penalty proceedings initiated under the provision of Section 271(1)(c) of the Income Tax Act, 1961 is not applicable in the case of your petitioner.
9. Your petitioner craves leave to amend, modify and/or alter grounds and/or to adduce and rely upon such further evidence and/or documents as may be required at anytime before and during the time of hearing.
10. Your petitioner craves leave to amend, modify and/or alter grounds and/or to adduse and
Message likes :
3 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Traces Portal
- U/s.234E late fee- balated filing the TDS returns
- Capital Gain Incidents
- Form 121 of income tax
- Unable to login
- Applicability of corporate governance provisions as per the SEBI LODR
- Cheque bounce intimation letter
- Minor - PPF Rules Doubt
- ESI Applicablility As per new wage code
- Closing sole proprietorship CA firm
- Minor Aadhar card cancelled
- Query regarding applicability of UDIN on MCA forms signed using DSC by a Chartered Accountant
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
