Income Tax Judgements

As per sec 92 (1) in international transaction not only the item of income but expenses and interest are also covered

CS Bijoy 29 February 2012 at 13:13

Ground nos.1 and 2 deal with the deletion of addition of ‘.49,99,680 on account of adjustment made to arm’s length price (ALP) in respect of international transaction with Associated Enterprise (AEs). Briefly stated the facts of these grounds are tha

Posted in Income Tax | 1768 Views

In case of share application money received the relation and the source of the money of applicant need to be disclose

Ayush 27 February 2012 at 14:29

Brief facts of the issue are that while during the scrutiny assessment, the Assessing Officer observed that out of Rs.40,68,500/- received by the assessee towards share capital account, an amount of Rs.39,00,000/- relating to the share application mo

Posted in Income Tax | 2520 Views

In assessment under sec 143(3) opportunity to the assessee to prove that it had fulfilled the condition of 3rd provision of sec 80HHC(3) is o be given

CS Bijoy 27 February 2012 at 12:07

Briefly stated facts of the case are that the assessee firm is engaged in the business of export. The scrutiny assessments u/s 143(3) were completed for the assessment years 2002-03 and 2003-04 on 31.1.2005 and 14.9.2005 determining the total income

Posted in Income Tax | 3487 Views

As per sec 254(2) if period of limitation is given for rectification of the order than application for rectification is to be accepted made within the period

CS Bijoy 27 February 2012 at 12:07

Firstly it is noticed that this ground arises very much from the order passed by the learned CIT(A). Secondly a letter dated 08.11.2007 addressed to the Registry, I.T.A.T, by Shri Pankaj Kumar, ACIT, Circle 1(1), Mumbai is there on record containing

Posted in Income Tax | 1443 Views

In order to take benefit of sec 68 of receive of amount from relative exempt under sec 56(1) the definition of relative should be fulfilled

CS Bijoy 25 February 2012 at 16:04

The short issue in the present appeal by the assessee is with reference to addition of Rs.9,45,000/-, a gift received from the sister of the assessee brought to tax under section 68 of the Income Tax Act. The Assessing Officer was of the view that th

Posted in Income Tax | 1741 Views

As per sec 251 of the Act CIT has no power to set aside any matter to the file of AO for fresh verification without considering additional evidence

CS Bijoy 25 February 2012 at 16:03

In the facts and in the circumstance of the case, the Ld.CIT(APPEAL) erred in bifurcating the interest free advance of Rs. 2.43 crores granted to M/s. Tarajyot Polymers Pvt. Ltd. partly as business advance for the part of the year and partly as non-b

Posted in Income Tax | 2280 Views

If difference in the sale and purchase is properly explained than AO cannot make any addition by their own

Ayush 24 February 2012 at 12:36

The assessee is engaged in the business of trading in chemicals. The sales shown in the Profit & Loss Accounts were Rs. 3,15,85,478/- and against that purchases were shown as Rs. ,93,31,117/- on which gross profit of Rs. 7.95% was declared. The asse

Posted in Income Tax | 1390 Views

As per sec 28(2) bad debt written off as irrecoverable is allowed but in case of Bank deduction is allowed only to the extent exceeds the credit balance

Ayush 24 February 2012 at 12:36

The appeal by the Revenue was filed on 17.12.2008 and the appeal by the assessee was filed on 27.11.2008. The assessee is a public sector undertaking and, therefore, as per the decision of Hon'ble Supreme Court in the case of ONGC Vs CCE [1995] Suppl

Posted in Income Tax | 4854 Views

Disallowance made by the AO under sec 40(a)(ia) on the fees paid to professional service

Ayush 24 February 2012 at 12:36

These rather elaborate grounds of appeal attempt to highlight the factual matrix in which the assessee’s grievance is set out and the arguments in support of the assessee’s grievance. However, short grievance of the assessee, as is clearly discernibl

Posted in Income Tax | 2737 Views

Penalty under sec 271 cannot be imposed if payment of tax with interest made within the time limit of notice of demand under sec 156 before the penalty proceeding concluded

Ayush 24 February 2012 at 12:36

We find that under the scheme of Section 271 AAA, there is a complete paradigm shift so far as penalty in respect of unaccounted income unearthed as a result of search operation carried out on or after 1st June 2007 is concerned. Unlike in the case o

Posted in Income Tax | 3956 Views