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Govt orders mandatory declaration of stock position of wheatCPI gets Rs 11 Cr tax notice for using old PAN numberGST - Penalty demand of Rs.3731 crores - A person who would fall within the purview of sub-section (1-A) of s.122 should necessarily be a taxable person who retains the benefits of transactions: HCGovt issues advisory against calls impersonating DoTFATP hand-wrings over slow regulation of crypto by member-countriesGST - Threatening and pressurising petitioner who is merely an employee - Highly unconscionable and disproportionate on the part of the officer: HCECI's C-Vigil app a big hit with votersGST - Same relief was claimed in earlier petition which was withdrawn unconditionally - Fresh petition seeking same relief is barred by the estoppel principle: HCIncome tax hands over Rs 1700 Cr tax demand to Congress PartyGST - Neither SCN nor the order spell out the reasons for retrospective cancellation of registration, hence cannot be sustained: HCStage-2 of Vikram-1 orbital rocket successfully test-firedGST - Non-application of mind - If reply was unsatisfactory, details could have been sought - Record does not reflect that such exercise was done - Matter remitted: HCHouthis claim UK has not capability to intercept their hypersonic missilesGST - Merely because a taxpayer has not filed returns for some period does not mean that registration is required to be cancelled with retrospective date also covering the period when returns were filed and taxpayer was compliant: HCIsraeli forces kill 200 Palestinians at Gaza medical complex & arrest over 1000GST - Petitioner's reply, although terse, is not taken into account while passing assessment orders - Petitioner put on terms, another opportunity provided: HCUnveil One Nation; One Debt Code; One Compliance Rule for Centre & StatesChina moves WTO against US tax subsidies for EVs & renewable energyMore on non-doms - The UK Spring Budget 2024 (See TII Edit)Training Program for Cambodian civil servants commences at MussoorieCBIC revises tariff value of edible oils, gold & silverCBIC directs all Customs offices to remain open on Saturday & SundayI-T- Once the citizen deposits the tax upon coming to know of his liability, it cannot be said that he has deliberately or willfully evaded the depositing of tax and interest in terms of Section 234A can be waived: HCHouthis attack continues in Red Sea; US military shoots down 4 dronesCus - No Cess is payable when Basic Customs Duty is found to be Nil: CESTAT
Untitled Document

TODAY'S CASE (DIRECT TAX)

Taxindiaonline.com



July 31, 2020

++ Additions framed on account of bogus purchases merit being restricted in quantum where the corresponding sales and stock position are not disputed: HC

++ LRs of deceased assessee are not statutorily obliged to inform the Revenue about the assessee's demise - proceedings initiated against deceased assessee are void: HC

++ Power of revision cannot be exercised in respect of an issue which is carefully examined by the AO & is pending consideration before the CIT(A): ITAT

++ Deduction claimed u/s 35(1)(ii) cannot be disallowed where the registration of the donor-company subsequently gets cancelled: ITAT

July 30, 2020

++ AO can estimate profits by invoking provisions of Section 40A(2), if there is no doubt about expenses incurred by assessee: ITAT

++ Additions cannot be framed in respect of any amount of purchases which have been held to be genuine & in respect of which no adverse is drawn: ITAT

++ Provisions of Section 2(22)(e) pertaining to deemed dividend, cannot be applied based on assumptions, presumptions or suspicions: ITAT

July 29, 2020

++ Provisions of Section 194C for TDS deduction apply onto any contractor who engages sub-contractors for performance of whole or part of task undertaken by contractor: SC

++ Case warrants re-consideration on remand to avoid double taxation, where assessee claims that recipient of payment made by assessee discharged the requisite TDS liability: ITAT

++ It is the assessee's prerogative to judge the expediency of any expenses incurred in course of business - any expenses incurred solely for business purposes are allowed u/s 37(1): ITAT

++ An employer is not statutorily obliged to submit evidence showing that its employees have actually utilized the amount paid towards Leave Travel Concession: ITAT

++ No penalty is imposable where any incriminating material suggesting any undisclosed income of the assessee is not found during Search operations: ITAT

July 28, 2020

++ Income generated by an SEZ developer, from letting out of premises and developed space along with other amenities, is taxable as Profits & Gains of business: HC

++ Assessment order passed without examination of returns filed by assessee, is unsustainable: ITAT

++ AO is obliged to conduct independent enquiry before framing additions on account of unexplained cash credit: ITAT

++ Tribunal cannot straightaway allow an assessee's claim of having incurred loss due to non-recovery of advances - case remanded for examination of additional evidence submitted in support of claims: ITAT

July 27, 2020

++ Penalty notice is invalidated if it omits to specify exact charge against assessee between concealment of income or furnishing inaccurate particulars of income: ITAT

++ Re-opening of assessment - recording reasons to believe are insufficient to resort to such proceedings where assessee's failure to make full & true disclosure of material facts is not stated: ITAT

++ Assessment order passed in the name of a company which merged with another entity, is not sustainable, more so where Revenue was aware of such proceedings: ITAT Assessment order passed in the name of a company which merged with another entity, is not sustainable, more so where Revenue was aware of such proceedings: ITAT

++ 331-day delay in filing appeal merits being condoned where such delay is caused due to lapses on part of the assessee's accountant: ITAT

July 25, 2020

++ Additions framed for unexplained cash credits are upheld, where no explanation is provided for demonetised currency deposited in assessee's bank account - attachment of bank account is also upheld, where assessee does not reply to SCNs issued to it: HC

++ Assessee cannot be held to be in default for short-deduction of TDS on rent paid, where assessee deducted, collected & paid tax on share of rent paid to each co-owner of property: ITAT

++ Re-opening of assessment is unsustainable if based solely on information received from Inv Wing & where AO does not conduct independent enquiry into the matter: ITAT

++ Penalty order passed u/s 271(1)(c) is inavalidated if it omits to mention specific charge against assessee between concealment of particulars of income or furnishing inaccurate particulars thereof: ITAT

July 24, 2020

++ It is fit case for remand where Tribunal follows own findings recorded in assessee's own case for past AY, but omits to record independent reasons for doing so: HC

++ Penalty is leviable u/s 271(1)(c), where it is found to not be leviable u/s 271AAA - assessee cannot seek to evade penalty proceedings, where order imposing penalty has attained finality: HC

++ Disallowance u/s 40A(3) r/w Rule 60DD(j) need not be made, where no deduction is claimed by or allowed to the assessee in respect of purchases: HC

++ Remission of liability u/s 28(iv) is not taxable since the receipts therefrom were in form of cash: ITAT

++ Where providing hostel facility to students is covered under ambit of Section 2(15), then generation of any surplus therefrom is not taxable & will not lead to denial of exemption: ITAT

++ Additions framed on account of unexplained cash credits are upheld where assessee fails to provide satisfactory explanation for the same: ITAT

July 23, 2020

++ Stay petition merits being allowed without insisting on pre-deposit of duty, where such unconditional stay was allowed in earlier AYs as well: ITAT

++ Penalty notice is unsustainable if it omits to specify exact charges levelled against assessee, between concealment of income & furnishing inaccurate particulars of income: ITAT

July 22, 2020

++ Deduction is allowed in respect of interest paid on funds borrowed for purpose of purchasing property: ITAT

++ Addition in respect of unaccounted purchase merits being restricted to profit element embedded in such purchases: ITAT

++ Additions framed on account of unexplained cash credits are sustainable where assessee fails to provide complete details regarding source of such income: ITAT

July 21, 2020

++ Deduction u/s 10B cannot be allowed where assessee has no income left after setting off unabsorbed depreciation, carried forward from earlier AYs: HC

++ Re-assessment cannot be challenged on grounds that Revenue failed to obtain necessary details, whilst the assessee concomitantly attempts to scuttle & obstruct attempts to obtain correct & complete information: ITAT

++ Deduction u/s 80IC is allowed where assessee undertakes substantial expansion after claiming deduction - year of completing expansion would be treated as its initial AY: ITAT

July 20, 2020

++ AO directed to dispose off application for stay on recovery of demand, where applicant's financial position is not sound enough so as to be able to pre-deposit part of the duty demanded: HC

++ Re-opening of assessment is unsustainable where based on the same set of facts which were available during original assessment, thus amounting to change of opinion: HC

++ Since imposition of late fee u/s 234E is mandatory in nature, presence of a reasonable cause is of no aid to the assessee: ITAT

++ Where a trust is found to be engaged in activities of a charitable nature, expenses incurred by it in this regard cannot be disallowed: ITAT

July 18, 2020

++ Additions on account of undisclosed income were framed by lower authorities without recording findings in respect of cash withdrawn by assessee or usage of such cash - matter remanded for reconsideration: ITAT

++ The window for disallowance u/s 14A is only to the extent of that expenditure incurred by assessee in relation to tax exempt income: ITAT

++ Bonus paid to two director shareholders of company can be allowed if made as part of salary in terms of Board Resolution which is linked to services rendered by them: ITAT

July 17, 2020

++ It is trite law that doctrine of res judicata is inapplicable in income tax matters: ITAT

++ When there are no allegations of AO having contravened mandate of Sections 234E or 200A, adjustment made on account of late filing fee u/s 234E cannot be set aside: ITAT

++ Till date of conversion, Compulsory Convertible Debentures qualify as debt - interest paid on CCDs cannot be disallowed on grounds that they will later be converted to equity: ITAT

++ Issuing of notice in the name of the correct person is the foundational requirement for commencing assessment proceedings - notice issued in name of deceased person is invalid: ITAT

July 16, 2020

++ For granting deduction u/s 35(2AB), recognition granted to the facility concerned as well as expenses incurred on in-house R&D facilities must be examined: ITAT

++ Deduction on account of loss incurred due to fluctuation in forex rates can be allowed only upon ascertaining whether such loss is capital or revenue in nature: ITAT

July 15, 2020

++ Adopting rate of turnover @ 8% for best of judgment assessment, is without any basis, where insufficient grounds are furnished for rejecting books of accounts: HC

++ Exemption u/s 54F is allowed if new residential house is purchased within two years from date of transfer of original asset: ITAT

++ Cash transactions between family members during hour of need cannot be deemed to be loan or advance, even if such transaction is reflected as a loan for accounting purposes: ITAT

++ It is trite law that nomenclature in books of accounts cannot be used to determine the nature of any transaction: ITAT

++ In case of joint bank account holding, advances received by one holder cannot be interlinked with or reflected in the balance sheet of the other holder: ITAT

July 14, 2020

++ Additional amount paid in pursuance of application under Kar Vivad Samadhan Scheme, beyond 30-day limitation period, but within a reasonable period, is acceptable for allowing the application: HC

++ Penalty notice is invalid where it omits to specify exact charge against assessee between concealment of income & furnishing inaccurate particulars thereof: ITAT

++ Matter warrants remand where AO frames addition in respect of cash deposited in bank account, without examining source thereof: ITAT

++ Where cash credit found in assessee's books is established to have been invested by a particular person, then assessee-investee is not obligated to prove that such amount has been taxed in hands of the investor: ITAT

July 13, 2020

++ Fair Market Value of property was ascertained without allowing assessee to access DVO's report or without considering assessee's objections to such valuation - case remanded: ITAT

++ Matter warrants remand where additional evidence is presented for first time before CIT(A), with AO being unable to examine the same: ITAT

++ Estimation of income at exorbitant figures based solely on past history of assessee, is unsustainable: ITAT

July 11, 2020

++ Additions framed u/s 68 are unsustainable if the AO does not specify the nature of amounts received by assessee & without examining credits in books of accounts: ITAT

++ Additions framed on account of client code modification as alleged bogus contrived loss merits being sustained where assessee is unable to disprove the illicit nature of such transaction: ITAT

++ New Show Cause Notice cannot be issued where proceedings initiated through previous SCN are pending & have not yet been disposed off: ITAT

++ Deduction u/s 80IA cannot be denied on sole grounds that separate P&L a/c and balance sheet were not produced: ITAT

July 10, 2020

++ Insertion of some figures by the assessee, which are incoherent with some other figures in the I-T return, qualifies as a mistake apparent on record and such error warrants rectification: ITAT

++ Activity of developing minor ports in a State is in keeping with advancement of general public utility u/s 2(15) of the Act, and the trust Board engaged in such activity is entitled to exemption u/s 11: ITAT

++ Penalty order is unsustainable where it omits to specify exact charge against assessee between concealment of particulars of income & furnishing inaccurate particulars thereof: ITAT

July 09, 2020

++ For valid transfer of assessment, detailed reasons must be discernible from notice issued u/s 127 - sufficiency of reasons recorded is not subject matter for judicial review: HC

++ Additions framed in respect of income from derivative transactions are not tenable where the NSE states that no income was derived by assessee from such transaction: ITAT

July 08, 2020

++ Assessee indulged in bogus transactions involving shares, despite knowing the illicit nature of such activities & also sought to legitimise illicit money under guise of exempt capital gains - additions framed on grounds of unexplained cash credit are sustained: ITAT

++ Where assessee's accounts have been audited & balance sheet stands certified, then genuineness of creditors cannot be doubted: ITAT

++ Income surrendered by assessee in course of Survey proceedings is taxable as income falling u/s 68 to 69D, if no explanation is given for such amount - higher tax rate u/s 115BBE is applicable: ITAT

July 07, 2020

++ Provisions of Section 269SS are inapplicable where both lender of cash and borrower are having agricultural income & neither of them has any taxable income as per I-T Act: ITAT

++ Loss from currency derivative transactions entered into by assessee will not be treated as speculative, where such transactions are conducted in recognized stock exchange & of which assessee is a member: ITAT

++ Penalty cannot be levied on assessee for suo motu revision of tax computation, before any finding is rendered by AO in this regard: ITAT

++ Where AO finds that certain land obtained by assessee qualifies as capital asset, the AO is required to refer the matter to DVO for ascertaining its Fair Market Value: ITAT

July 06, 2020

++ Receipt of cash gift through banking channels is per se insufficient to establish creditworthiness of donor or genuineness of such gift: HC

++ Provisions of Section 2(22)(e) cannot be invoked where assessee-company maintains running transactions with its subsidiary: ITAT

++ Expenses incurred on transactions conducted with sister unit, for purposes of business, merit being allowed: ITAT

++ Expenses incurred on repair & annual maintenance of computers are revenue expenses & are eligible for deduction: ITAT

July 04, 2020

++ One turnover figure cannot be taxed in the hands of two different assessees, one of whom is a partnership firm while the other is a proprietary concern of the former: ITAT

++ Assessee's claim of having suffered business losses cannot be rejected based on presumptions alone & without rebutting documentary evidence submitted by assessee: ITAT

++ Where the revision order itself has been quashed, then assessment order passed pursuant to revision order, has no legs to stand & becomes infructuous: ITAT

July 03, 2020

++ Relief for Vodafone - Bombay HC rules once assessment order u/s 143(1) has already attained finality resulting in refund, then same cannot be withheld by Revenue

++ Assessment order passed without proper consideration of factual matrix, merits being quashed: HC

++ Where amount of cash compensation & duty drawback is not yet sanctioned, such amounts are not taxable in such AY as they have not yet accrued to the assessee: HC

++ Attachment of assessee's bank accounts merits being lifted where 11% of the tax demand is already recovered through garnishee proceedings: HC

July 02, 2020

++ Appellate authority cannot sustain additions framed by AO, based on assumptions or presumptions & without considering evidence submitted by assessee: ITAT

++ Penalty notice is bad in law if it does not state exact charge against assessee, between concealment of particulars of income & furnishing inaccurate particulars thereof: ITAT

++ Assessment order passed ex parte merits being quashed if reasonable explanation is given for non-appearance on date of hearing: ITAT

++ Power of revision u/s 263 need not be exercised where AO conducts adequate enquiry into relevant issues & where assessment order is neither erroneous nor prejudicial to Revenue's interest: ITAT

July 01, 2020

++ If no incriminating material was found during course of search, then that amount of total income determined under earlier completed assessments is to be adopted in fresh assessments u/s 153A without making any further addition: ITAT

++ Re-assessment order merits being quashed where it is passed without due application of mind on part of AO: ITAT

++ Penalty notice issued u/s 274 is invalid if it does not specify exact charges against the assessee as to whether it is imposed for concealing particulars of income or for furnishing inaccurate particulars thereof: ITAT

++ A family settlement deed for partition of property by its owner, amongst the owner's children, cannot be treated as a colorable device, if no ulterior motive is made out behind such instrument: ITAT

 

 

AR not Afar by SK Rahman

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