This document summarizes a tax appeal case in India. It discusses:
- An assessment order by an Assessing Officer (AO) for tax year 2007-08 setting income at Rs. 74,75,000.
- The Commissioner initiated revision under section 263, setting aside the assessment on grounds it was erroneous and prejudicial to revenue interests.
- The taxpayer appealed, arguing the AO properly dealt with matters. The Commissioner responded supporting his findings.
- The tribunal analyzed the law on section 263 revisions. It found the AO adequately examined issues, applied mind, and reached a plausible conclusion within his powers. Thus, the assessment was not erroneous and the Commissioner improperly invoked revision powers.
If you face any problem about the research then you can communicate with me and I expect your comments
E-mail : advkarim1994@gmail.com
Phone : 01558964737
A presentation on the audit mandate of SAI of India as per various provisions contained in the Comptroller and Auditor General's (Duties, Power and Conditions of Service) Act, 1971 for the users.
The meeting reviewed the progress of investigations into the NSEL payment crisis. Key discussion points included:
- The legal challenges posed by recent court verdicts overturning earlier orders regarding NSEL status and asset attachments.
- Concerns that the entire MPID case may be jeopardized if the recent HC order stands, as it has implications for market integrity.
- Deciding that alienation of assets should be prevented and ED may file a counter affidavit in consultation with MoL, in response to a case filed by NSEL in SC for transfer of attached assets.
- Request by ED for details of the SC case from the Competent Authority, as they are yet to receive notice.
This document summarizes a court case involving an IPS officer, P.C. Wadhwa, seeking two increments in pay for improving his qualifications while in service. The State of Haryana had issued instructions granting increments to state employees who improved qualifications, but denied it to Wadhwa claiming he was governed by central rules. The court ruled that in the absence of regulations by the central government, IPS officers serving in a state are governed by that state's rules per the All India Services rules. Prior Supreme Court precedent also supported Wadhwa's claim. The court directed Haryana to grant Wadhwa the two increments as per the state's instructions.
Describes the legal environment of the Comptroller & Auditor General of India in the light of attacks upon him by senior Indian politicians and concludes that the CAG of India merits greater powers.
Section 482 of the CrPC grants High Courts inherent powers to secure the ends of justice or prevent abuse of legal process. [1] It allows High Courts to quash criminal proceedings that amount to harassment or where there is no prima facie offense. [2] The powers are wide but must be used cautiously and not to interfere with legitimate prosecution. [3] High Courts can exercise these powers at any stage of proceedings under Section 482 to prevent injustice.
Pre institution mediation and settlement - Section 12A of the Commercial Cour...Legal
This document summarizes Section 12A of the Commercial Courts Act regarding pre-institution mediation and settlement. Key points include:
- A commercial suit that does not seek urgent interim relief must first exhaust the remedy of pre-institution mediation.
- The Central Government authorizes authorities under the Legal Services Authorities Act to handle pre-institution mediation. Mediation must be completed within 3 months but can be extended by 2 months if parties consent.
- If parties settle in mediation, the settlement is reduced to writing and has the same effect as an arbitral award on agreed terms.
- Only if a suit seeks urgent interim relief can the plaintiff avoid pre-institution mediation. The phrase
Section 482 of the CrPC gives High Courts broad inherent powers over criminal justice administration. It allows High Courts to pass orders to secure the ends of justice, even where no specific provision exists under the CrPC. These powers include quashing FIRs, investigations, or criminal proceedings. The powers aim to prevent abuse of court processes and ensure justice. Case law has established contexts where these powers can be exercised, such as when proceedings amount to harassment or there is a legal bar. However, High Courts cannot interfere at interlocutory stages normally or when other remedies exist. The section balances administrative powers with securing justice.
If you face any problem about the research then you can communicate with me and I expect your comments
E-mail : advkarim1994@gmail.com
Phone : 01558964737
A presentation on the audit mandate of SAI of India as per various provisions contained in the Comptroller and Auditor General's (Duties, Power and Conditions of Service) Act, 1971 for the users.
The meeting reviewed the progress of investigations into the NSEL payment crisis. Key discussion points included:
- The legal challenges posed by recent court verdicts overturning earlier orders regarding NSEL status and asset attachments.
- Concerns that the entire MPID case may be jeopardized if the recent HC order stands, as it has implications for market integrity.
- Deciding that alienation of assets should be prevented and ED may file a counter affidavit in consultation with MoL, in response to a case filed by NSEL in SC for transfer of attached assets.
- Request by ED for details of the SC case from the Competent Authority, as they are yet to receive notice.
This document summarizes a court case involving an IPS officer, P.C. Wadhwa, seeking two increments in pay for improving his qualifications while in service. The State of Haryana had issued instructions granting increments to state employees who improved qualifications, but denied it to Wadhwa claiming he was governed by central rules. The court ruled that in the absence of regulations by the central government, IPS officers serving in a state are governed by that state's rules per the All India Services rules. Prior Supreme Court precedent also supported Wadhwa's claim. The court directed Haryana to grant Wadhwa the two increments as per the state's instructions.
Describes the legal environment of the Comptroller & Auditor General of India in the light of attacks upon him by senior Indian politicians and concludes that the CAG of India merits greater powers.
Section 482 of the CrPC grants High Courts inherent powers to secure the ends of justice or prevent abuse of legal process. [1] It allows High Courts to quash criminal proceedings that amount to harassment or where there is no prima facie offense. [2] The powers are wide but must be used cautiously and not to interfere with legitimate prosecution. [3] High Courts can exercise these powers at any stage of proceedings under Section 482 to prevent injustice.
Pre institution mediation and settlement - Section 12A of the Commercial Cour...Legal
This document summarizes Section 12A of the Commercial Courts Act regarding pre-institution mediation and settlement. Key points include:
- A commercial suit that does not seek urgent interim relief must first exhaust the remedy of pre-institution mediation.
- The Central Government authorizes authorities under the Legal Services Authorities Act to handle pre-institution mediation. Mediation must be completed within 3 months but can be extended by 2 months if parties consent.
- If parties settle in mediation, the settlement is reduced to writing and has the same effect as an arbitral award on agreed terms.
- Only if a suit seeks urgent interim relief can the plaintiff avoid pre-institution mediation. The phrase
Section 482 of the CrPC gives High Courts broad inherent powers over criminal justice administration. It allows High Courts to pass orders to secure the ends of justice, even where no specific provision exists under the CrPC. These powers include quashing FIRs, investigations, or criminal proceedings. The powers aim to prevent abuse of court processes and ensure justice. Case law has established contexts where these powers can be exercised, such as when proceedings amount to harassment or there is a legal bar. However, High Courts cannot interfere at interlocutory stages normally or when other remedies exist. The section balances administrative powers with securing justice.
Harbhajan singh v press council of indiaNayan Maggo
The Supreme Court summarized the key issue in interpreting Section 6(7) of the Press Council Act regarding the number of terms a member can be nominated. The Single Judge held the language was plain in allowing nomination for more than two terms, not just renomination for a second term. However, the Division Bench overruled this, finding legislative intent was to limit membership to two terms total. The Supreme Court restored the Single Judge's decision, finding no evidence to depart from the ordinary meaning of the words used in Section 6(7).
The High Court of Kerala issued an order regarding measures to be taken during the COVID-19 lockdown period. It extended all interim court orders that were due to expire during the lockdown by one month. It also extended anticipatory bail orders for one month. The court noted that the Government of Kerala had constituted a high powered committee as directed by the Supreme Court to determine prisoners that could be released on parole or bail to reduce overcrowding in prisons.
Sharing a Compilation of Case Laws on ‘Notice Under Section 148’ of Income Tax Act, 1961. The said document is available at http://expertspanel.in/?qa=blob&qa_blobid=10601143440222107929 as well as at http://lunawat.com/Uploaded_Files/Attachments/F_4740.pdf
This document summarizes the proceedings of an 11th review meeting on the implementation of recommendations regarding the National Spot Exchange Limited (NSEL) payment crisis. Key discussion points included:
1) The Government of Maharashtra is processing a proposal for additional manpower for the Economic Offences Wing but requires justification for additional posts.
2) Two full-time competent authorities need to be appointed to handle NSEL cases exclusively, as the current single authority lacks sufficient time.
3) An additional court may need to be designated as an MPID Court to address the backlog of NSEL cases.
4) Evaluators and auctioneers for NSEL attached properties will be finalized within a month, and
This document is a petition filed in the Supreme Court of India by Commodore Lokesh K. Batra against an order of the Delhi High Court dated 07.01.2016. The petition raises questions of law regarding the interpretation of provisions of the Right to Information Act and the scope of powers of the Central Information Commission. It argues that the High Court erred in its interpretation that denied information to the petitioner despite it being available with the respondent. It seeks to challenge the High Court order allowing the appeal of the Registrar, Supreme Court of India against a single judge order directing disclosure of certain information to the petitioner.
Prevention of Atrocities to Schedule Caste and Tribes Act. Questions and AnswersLegal
The document discusses various questions related to offences under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 (PoA SC/ST Act). It provides answers to questions on jurisdiction of courts for offences under the PoA SC/ST Act and Protection of Children from Sexual Offences Act, 2012, investigation of cases by officers of a certain rank, anticipatory bail provisions, remedies available to prosecution/complainants regarding bail, and rights of victims during bail and other proceedings. The document clarifies that changing one's religion does not affect one's status as a member of a Scheduled Caste or Scheduled Tribe.
SBI initiated proceedings against Veesons under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), demanding an outstanding amount of approximately INR 61 crores as Veesons did not pay its debts on time.
Arrow Corporate Advisors LLP & Sankalp Resolution Professionals LLP present to you “Sunrise by Sankalp” a newsletter to keep you updated on all the important, relevant IBC matters.
Our analysis (attached) shows that a recent judgement by the Supreme Court could pave way for admission of some of the pending applications filed at NCLT under section 7 of IBC, 2016 for resolution of corporate debtors presumably barred by limitation.
We hope you find this useful.
Do get in touch with us for more information.
S. 147 no change of opinion if ao does not specifically apply his mind usha...softdynamite
The document is a judgment from the High Court of Delhi regarding substantial questions of law referred to a Full Bench pertaining to the interpretation of Section 147 of the Income Tax Act, 1961 dealing with reopening of assessments. The 3 questions referred relate to the meaning of the term "change of opinion" and whether reassessment can be valid if there was full disclosure originally or if the Assessing Officer did not raise any queries on a particular issue. The Full Bench provides context on the term "opinion" and examines the conditions for reopening an assessment under Section 147. It also discusses conflicting views on whether only the assessment order can be referred to in determining change of opinion or other factors can also be considered.
This document discusses two bail applications that involve the same legal question regarding an accused's right to personal liberty under Article 21 if the prosecution fails to file a charge sheet within the statutory period under Section 167(2) of the CrPC. It summarizes the arguments from the applicants' counsel that their right to default bail arose when the limitation period expired but was denied due to the lockdown. It also summarizes the state's arguments and examines previous court precedents on when the right to default bail arises and can be extinguished. The judge reviews reports on the remand procedures followed during the lockdown period and observes that the accused's right to personal liberty was not properly dealt with per established law.
P Mohanraj vs MS Shah Brothers Ispat Pvt Ltd held that moratorium under Section 14 of IBC also includes criminal proceedings for cheque bounce cases under Section 138 of the Negotiable Instruments Act, thus parallel proceedings against a corporate debtor cannot be allowed.
The Supreme Court of India heard a writ petition challenging the Governor of Maharashtra's decision to invite the BJP to form a government in the state. The petitioners (Shiv Sena, NCP, INC) argued that the Governor's decision was unconstitutional and arbitrary. They requested an immediate floor test to prove the majority. The court noted the arguments from both sides. It observed that a floor test is necessary to prove majority support, but cannot dictate the date. It directed the video recording of floor test proceedings for transparency.
This document discusses a legal case in the Supreme Court of India regarding whether a 'protected tenant' under the Maharashtra Rent Control Act can be considered a lessee, and if the SARFAESI Act overrides the Rent Control Act. It provides background on the relevant laws - the Rent Control Act, which consolidated rent laws in Maharashtra; and the SARFAESI Act, which allows banks to recover possession of secured assets. It summarizes the facts of the case, where a bank sought possession of a property used as collateral for a loan, affecting the appellant tenant. The court must determine the interplay between the two laws and the rights of protected tenants.
Lawweb.in whether it is necessary to make enquiry us 202 of crpc in case of d...Law Web
Whether it is necessary to make enquiry U/S 202 of crpc in case of dishonour of cheque? http://www.lawweb.in/2016/04/whether-it-is-necessary-to-make-enquiry.html?
Section 34 of the Arbitrationand Conciliation Act. Scope of interference. Po...Legal
Scope of Interference under Section 34 of the Arbitration and Conciliation Act. Under which circumstances Court can interfere with an award passed by the arbitral tribunal.
A statement recorded u/s 133A of the I.T. Act, 1961 by an income-tax authorit...D Murali ☆
1) Statements made by assessees during the course of a survey by an income tax authority surrendering undisclosed income cannot be used against the assessee. Such statements have no evidentiary value.
2) The CBDT has issued instructions that income tax authorities should not attempt to obtain confessions of undisclosed income during surveys and searches, and any actions to do so will be viewed negatively.
3) A recent ITAT ruling supported the position that additions cannot be made solely based on statements given during a survey, as such statements have no legal evidentiary value.
Will GST apply in whole of India - September 2016Amitabh Khemka
Does the Parliament of India have powers to make law on GST for Union territories WITHOUT Legislature? Model GST Law also does not provide any clarity on applicability of GST in such Union territories.
The document discusses the executive powers of state governors in India as outlined in the constitution. It explains that governors are appointed by the president and have similar executive powers at the state level as the president does at the national level, such as appointing chief ministers and other officials. The document also analyzes several past court cases related to challenges of governors' exercise of their executive powers.
Gouri Shankar Singhal vs. ITO Ward-1 Sriganganagarsuresh ojha
1) The assessee filed a miscellaneous application arguing that the ITAT order contained a mistake by not following past history and applying a gross profit rate of 6.21% from the previous year.
2) The department argued that the application was attempting an impermissible review of the ITAT order under section 254(2).
3) The ITAT dismissed the application, finding no mistake in its previous order. It held that applying the 7.19% rate from an earlier year was a reasonable decision that appropriately considered past history.
Bongiwe Patience Msomi is a singer and entertainer from Durban, South Africa who has won numerous awards for her work in genres including jazz, classical, gospel, and maskandi music. She performs regularly in the Durban area and has toured South Africa and Europe, working on her debut album featuring Afro-jazz sounds. Msomi holds a Bachelor of Education degree from UNISA and continues to teach and perform.
Harbhajan singh v press council of indiaNayan Maggo
The Supreme Court summarized the key issue in interpreting Section 6(7) of the Press Council Act regarding the number of terms a member can be nominated. The Single Judge held the language was plain in allowing nomination for more than two terms, not just renomination for a second term. However, the Division Bench overruled this, finding legislative intent was to limit membership to two terms total. The Supreme Court restored the Single Judge's decision, finding no evidence to depart from the ordinary meaning of the words used in Section 6(7).
The High Court of Kerala issued an order regarding measures to be taken during the COVID-19 lockdown period. It extended all interim court orders that were due to expire during the lockdown by one month. It also extended anticipatory bail orders for one month. The court noted that the Government of Kerala had constituted a high powered committee as directed by the Supreme Court to determine prisoners that could be released on parole or bail to reduce overcrowding in prisons.
Sharing a Compilation of Case Laws on ‘Notice Under Section 148’ of Income Tax Act, 1961. The said document is available at http://expertspanel.in/?qa=blob&qa_blobid=10601143440222107929 as well as at http://lunawat.com/Uploaded_Files/Attachments/F_4740.pdf
This document summarizes the proceedings of an 11th review meeting on the implementation of recommendations regarding the National Spot Exchange Limited (NSEL) payment crisis. Key discussion points included:
1) The Government of Maharashtra is processing a proposal for additional manpower for the Economic Offences Wing but requires justification for additional posts.
2) Two full-time competent authorities need to be appointed to handle NSEL cases exclusively, as the current single authority lacks sufficient time.
3) An additional court may need to be designated as an MPID Court to address the backlog of NSEL cases.
4) Evaluators and auctioneers for NSEL attached properties will be finalized within a month, and
This document is a petition filed in the Supreme Court of India by Commodore Lokesh K. Batra against an order of the Delhi High Court dated 07.01.2016. The petition raises questions of law regarding the interpretation of provisions of the Right to Information Act and the scope of powers of the Central Information Commission. It argues that the High Court erred in its interpretation that denied information to the petitioner despite it being available with the respondent. It seeks to challenge the High Court order allowing the appeal of the Registrar, Supreme Court of India against a single judge order directing disclosure of certain information to the petitioner.
Prevention of Atrocities to Schedule Caste and Tribes Act. Questions and AnswersLegal
The document discusses various questions related to offences under the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 (PoA SC/ST Act). It provides answers to questions on jurisdiction of courts for offences under the PoA SC/ST Act and Protection of Children from Sexual Offences Act, 2012, investigation of cases by officers of a certain rank, anticipatory bail provisions, remedies available to prosecution/complainants regarding bail, and rights of victims during bail and other proceedings. The document clarifies that changing one's religion does not affect one's status as a member of a Scheduled Caste or Scheduled Tribe.
SBI initiated proceedings against Veesons under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), demanding an outstanding amount of approximately INR 61 crores as Veesons did not pay its debts on time.
Arrow Corporate Advisors LLP & Sankalp Resolution Professionals LLP present to you “Sunrise by Sankalp” a newsletter to keep you updated on all the important, relevant IBC matters.
Our analysis (attached) shows that a recent judgement by the Supreme Court could pave way for admission of some of the pending applications filed at NCLT under section 7 of IBC, 2016 for resolution of corporate debtors presumably barred by limitation.
We hope you find this useful.
Do get in touch with us for more information.
S. 147 no change of opinion if ao does not specifically apply his mind usha...softdynamite
The document is a judgment from the High Court of Delhi regarding substantial questions of law referred to a Full Bench pertaining to the interpretation of Section 147 of the Income Tax Act, 1961 dealing with reopening of assessments. The 3 questions referred relate to the meaning of the term "change of opinion" and whether reassessment can be valid if there was full disclosure originally or if the Assessing Officer did not raise any queries on a particular issue. The Full Bench provides context on the term "opinion" and examines the conditions for reopening an assessment under Section 147. It also discusses conflicting views on whether only the assessment order can be referred to in determining change of opinion or other factors can also be considered.
This document discusses two bail applications that involve the same legal question regarding an accused's right to personal liberty under Article 21 if the prosecution fails to file a charge sheet within the statutory period under Section 167(2) of the CrPC. It summarizes the arguments from the applicants' counsel that their right to default bail arose when the limitation period expired but was denied due to the lockdown. It also summarizes the state's arguments and examines previous court precedents on when the right to default bail arises and can be extinguished. The judge reviews reports on the remand procedures followed during the lockdown period and observes that the accused's right to personal liberty was not properly dealt with per established law.
P Mohanraj vs MS Shah Brothers Ispat Pvt Ltd held that moratorium under Section 14 of IBC also includes criminal proceedings for cheque bounce cases under Section 138 of the Negotiable Instruments Act, thus parallel proceedings against a corporate debtor cannot be allowed.
The Supreme Court of India heard a writ petition challenging the Governor of Maharashtra's decision to invite the BJP to form a government in the state. The petitioners (Shiv Sena, NCP, INC) argued that the Governor's decision was unconstitutional and arbitrary. They requested an immediate floor test to prove the majority. The court noted the arguments from both sides. It observed that a floor test is necessary to prove majority support, but cannot dictate the date. It directed the video recording of floor test proceedings for transparency.
This document discusses a legal case in the Supreme Court of India regarding whether a 'protected tenant' under the Maharashtra Rent Control Act can be considered a lessee, and if the SARFAESI Act overrides the Rent Control Act. It provides background on the relevant laws - the Rent Control Act, which consolidated rent laws in Maharashtra; and the SARFAESI Act, which allows banks to recover possession of secured assets. It summarizes the facts of the case, where a bank sought possession of a property used as collateral for a loan, affecting the appellant tenant. The court must determine the interplay between the two laws and the rights of protected tenants.
Lawweb.in whether it is necessary to make enquiry us 202 of crpc in case of d...Law Web
Whether it is necessary to make enquiry U/S 202 of crpc in case of dishonour of cheque? http://www.lawweb.in/2016/04/whether-it-is-necessary-to-make-enquiry.html?
Section 34 of the Arbitrationand Conciliation Act. Scope of interference. Po...Legal
Scope of Interference under Section 34 of the Arbitration and Conciliation Act. Under which circumstances Court can interfere with an award passed by the arbitral tribunal.
A statement recorded u/s 133A of the I.T. Act, 1961 by an income-tax authorit...D Murali ☆
1) Statements made by assessees during the course of a survey by an income tax authority surrendering undisclosed income cannot be used against the assessee. Such statements have no evidentiary value.
2) The CBDT has issued instructions that income tax authorities should not attempt to obtain confessions of undisclosed income during surveys and searches, and any actions to do so will be viewed negatively.
3) A recent ITAT ruling supported the position that additions cannot be made solely based on statements given during a survey, as such statements have no legal evidentiary value.
Will GST apply in whole of India - September 2016Amitabh Khemka
Does the Parliament of India have powers to make law on GST for Union territories WITHOUT Legislature? Model GST Law also does not provide any clarity on applicability of GST in such Union territories.
The document discusses the executive powers of state governors in India as outlined in the constitution. It explains that governors are appointed by the president and have similar executive powers at the state level as the president does at the national level, such as appointing chief ministers and other officials. The document also analyzes several past court cases related to challenges of governors' exercise of their executive powers.
Gouri Shankar Singhal vs. ITO Ward-1 Sriganganagarsuresh ojha
1) The assessee filed a miscellaneous application arguing that the ITAT order contained a mistake by not following past history and applying a gross profit rate of 6.21% from the previous year.
2) The department argued that the application was attempting an impermissible review of the ITAT order under section 254(2).
3) The ITAT dismissed the application, finding no mistake in its previous order. It held that applying the 7.19% rate from an earlier year was a reasonable decision that appropriately considered past history.
Bongiwe Patience Msomi is a singer and entertainer from Durban, South Africa who has won numerous awards for her work in genres including jazz, classical, gospel, and maskandi music. She performs regularly in the Durban area and has toured South Africa and Europe, working on her debut album featuring Afro-jazz sounds. Msomi holds a Bachelor of Education degree from UNISA and continues to teach and perform.
Kamal Kishore Jhanwar, Classic Marbles, Makrana vs ITO Ward-1, Makranasuresh ojha
1. The assessee appealed tax assessments for 2006-07 and 2007-08 regarding additions made related to unexplained bank deposits treated as unreported sales.
2. The tax authorities did not confront evidence from the Commercial Tax Officer to the assessee during the initial assessment.
3. The tribunal set aside the appellate findings and remanded the case back to the assessing officer to remake the assessments after providing opportunity for the assessee to respond to the evidence regarding the source of the deposits.
This document contains the order from the Income Tax Appellate Tribunal (ITAT) in Jaipur regarding three appeals filed by the revenue. In the order, the ITAT dismissed the appeals, finding that it had already considered the Supreme Court decision cited by the revenue (Liberty India) in its prior order for the assessee. The ITAT noted that the revenue's application under section 254(2) of the Income Tax Act was not a proper application for rectification. It imposed costs on the Assessing Officer for not drafting the application correctly.
The document describes Abhay Banthia's CSR project presentation for Support Foundation. Support Foundation is a non-profit organization founded by Mrs Shanu Srivastava to support those with disabilities and from low-income backgrounds. It runs several programs including Disha Centre, Aao Baat Kare counseling sessions, and Aarogya free medical care. Abhay contributed by teaching activities like numbers, yoga, and drama, and made posters to promote the Foundation. Their presentation discusses the challenges of working with children, lessons learned about patience and happiness, and the overall valuable experience gained.
This document contains the order from the Income Tax Appellate Tribunal (ITAT) in Jaipur regarding three appeals filed by the revenue. In the order, the ITAT dismissed the appeals, finding that it had already considered the Supreme Court decision cited by the revenue (Liberty India) in its previous order regarding duty drawback income and Section 80IB deductions. The ITAT imposed costs on the Assessing Officer, as the applications for rectification did not properly frame the issues and instead asserted the tribunal's previous order was "patently wrong."
Anoopgarh K.V.Sah Samiti vs. ACIT, Sriganganagarsuresh ojha
The document is a court order from the Income Tax Appellate Tribunal regarding an application for rectification of a previous order.
The key details are:
- The assessee (applicant) sought rectification of a previous Tribunal order regarding income tax assessment for the year 1995-96.
- Specifically, the assessee argued that the previous order did not address an additional legal ground raised regarding excessive penalties levied.
- The Tribunal partially allowed the application, recalling the previous order only to address the unadjudicated legal ground on penalties. It rejected attempts to re-write other aspects of the order.
In summary, the Tribunal granted a partial rectification to address a specific legal issue
- The document summarizes tax appeals by Ganesh Builders for assessment years 2007-08 and 2008-09 regarding the disallowance of interest expenses and classification of income.
- The Commissioner initiated revision proceedings under section 263 of the Income Tax Act, arguing that the assessing officer erroneously allowed a deduction for interest paid to third parties and treated interest income as business income.
- Ganesh Builders responded by arguing that the jurisprudence allows for the deduction of interest expenses and classification of interest income as made by the assessing officer. They provided examples of previous cases supporting their claims.
Kanoi Charitable Trust vs. CIT-II, Jodhpursuresh ojha
The Income Tax Appellate Tribunal was hearing two appeals filed by Kanoi Charitable Trust against orders of the Commissioner of Income Tax (CIT) denying the Trust's application for registration under section 12A and approval under section 80G of the Income Tax Act. The Tribunal found that the CIT incorrectly refused registration solely because the Trust's object included "commercial education", without substantiating that its activities were non-charitable. Since the Trust's main object was undisputedly advancement of education, a charitable purpose, the Tribunal directed the CIT to grant it registration under section 12A. It also remanded the section 80G approval issue back to the CIT to decide afresh.
Amarchand Borad vs. ITO, Ward-1, Sriganganagarsuresh ojha
1. The assessee appealed an income tax assessment order for tax year 2001-02 in which additions of Rs. 13 lakhs, Rs. 1.5 lakhs, and Rs. 60,000 were made.
2. On appeal, the tribunal restored the case to the assessing officer and additions of Rs. 13 lakhs and Rs. 1 lakh were again made.
3. The tribunal found that the assessee was only lending his name to an agreement and was not actually involved in any land sales. Statements from involved parties supported this. The tribunal therefore deleted the additions and allowed the assessee's appeal.
The document is an order from the Income Tax Appellate Tribunal addressing an application seeking rectification of alleged mistakes in a previous Tribunal order. It summarizes the mistakes pointed out by the assessee and agrees that several of them appear to be mistakes apparent from the record, including typographical errors and omissions. The Tribunal rectifies these mistakes by replacing or adding certain words and paragraphs in its previous order.
We provide wide range of Customized gifts for corporates and individual purpose. Like gift mugs, t-shirts, sipper bottle, tea-coaster, mouse pads and many more.
Yao Foli Afenyo Bankas is a Ghanaian national with over 10 years of experience in leadership, customer service, and marketing in the petroleum industry in Ghana. He currently works as the Sales and Marketing Manager for Glee Oil Limited in Accra, where he is responsible for planning marketing strategies and overseeing sales teams. Prior to this role, he held several other positions in sales, marketing, and operations for various petroleum companies in Ghana. He has an MBA in Marketing and a BSc in Planning. His hobbies include watching football and listening to the radio.
Smt. Shalu Sachdeva vs. The ACIT Circle, Sriganganagar 471-2014suresh ojha
1. The assessee appealed an order from the CIT(A) that upheld tax assessments made under reassessment by the Assessing Officer.
2. The reassessment was initiated based on an audit objection regarding a gift of Rs. 6,00,000 that was reported in the original assessment but not added to income.
3. The assessee argued the reassessment was invalid as the gift was disclosed and considered in the original assessment, so it constituted a change of opinion rather than escaped income. Jurisprudence supports the view that reassessment cannot be based on a change of opinion.
The Income Tax Appellate Tribunal delivered a judgment on an appeal by the tax authorities (Revenue) and a cross-appeal by the taxpayer (assessee) regarding the taxpayer's assessment for the 2006-07 tax year. In a detailed order, the Tribunal upheld the Commissioner of Income Tax's deletion of several additions made by the Assessing Officer to the taxpayer's income. Specifically, the Tribunal found no evidence to support additions for alleged undisclosed income, notional interest income, or unexplained bank deposits. The Tribunal also denied exemption claimed by the tax authorities for long-term capital gains reinvested by the taxpayer in a residential property. As a result, the Tribunal dismissed the Revenue's appeal and the assessee's cross
Gagandeep Kathuria vs. ITO Ward-1, Sriganganagarsuresh ojha
The Income Tax Appellate Tribunal dismissed the department's appeal against the order of the Commissioner of Income Tax (Appeals). The Tribunal upheld the CIT(A)'s order deleting additions made by the Assessing Officer pursuant to an order passed by the Commissioner of Income Tax under section 263 of the Income Tax Act. This was because the section 263 order itself had been set aside by the Income Tax Appellate Tribunal in an earlier appeal. As the section 263 order was not valid, the subsequent assessment order based on its directions was also not maintainable.
- The document summarizes two cross appeals related to the taxpayer Shri Virendra Singh Shekawat for tax years 2008-09 and 2009-10.
- In the first appeal, the revenue appeals various deletions made by the CIT(A) including estimated additions to professional and consultancy income, unexplained deposits and investments, unexplained cash credits, and more.
- In the second appeal, the taxpayer appeals the partial sustaining of additions for professional income and household expenses.
- The tribunal analyzed each issue and confirmed the CIT(A)'s deletions of the revenue's estimated and unsupported additions. It also deleted the remaining additions for professional income and expenses upheld by the C
The assessee filed a miscellaneous application seeking rectification of alleged mistakes in the Tribunal Order regarding additions made by the Income Tax Officer. [The Tribunal found mistakes in the earlier order and rectified them. Several additions made by the ITO were deleted as they were based on a loose paper deemed a "dumb and deaf document". Additions of investments and closing stock were removed. Only an addition related to telephone expenses was upheld. The application was allowed with several additions being removed.]
The document discusses several miscellaneous applications filed by the assessee (Nosegay Kinder Garden and Nosegay Public School) regarding rectification of mistakes in the Tribunal's appellate order. The assessee argued that the Tribunal failed to dispose of grounds taken in the memo and consider arguments and judgments referred to. The Tribunal agreed that mistakes were apparent from the record, as it had not adjudicated on the assessee's status or considered a Supreme Court judgment. It recalled its order to rectify these mistakes and properly address the assessee's grounds regarding its status and the applicability of case law.
Is the mention in assessment order a condition to stop initiation of reassess...D Murali ☆
(i) The document discusses the scope for reopening an income tax assessment under section 147 when an assessment has already been completed under section 143(3).
(ii) It summarizes a Delhi High Court ruling that established conditions for validly initiating reassessment proceedings, including that the assessing officer must form a prima facie opinion of under-assessment based on records.
(iii) It analyzes situations where reassessment would amount to a change of opinion versus situations where new information emerges, and notes a dissenting opinion that held reassessment should not be allowed if full particulars were originally provided.
This document summarizes an order from the Income Tax Appellate Tribunal regarding an appeal by the revenue against an order by the Commissioner of Income Tax (CIT) related to the assessment year 2014-15 for Mr. Suresh Prasad. The revenue appealed on grounds including that the CIT order was erroneous in allowing exemption of capital gains from compensation received for compulsory acquisition of agricultural land. The Tribunal notes submissions from the Department Representative and the assessee's advocate and examines relevant circulars on taxability of compensation received for land acquisition.
The Commissioner exercised their authority under Section 263 of the Income Tax Act to revise an assessment order from the Assessing Officer regarding an individual taxpayer. The Assessing Officer had accepted the taxpayer's return without properly applying the law around Section 14A regarding the disallowance of expenses related to exempt income.
The Commissioner found the Assessing Officer's order to be erroneous and prejudicial to revenue interests as they failed to disallow expenses related to the taxpayer's exempt mutual fund income as required by Section 14A. The taxpayer argued the order was correctly made, but the Commissioner determined the Assessing Officer did not properly apply their mind to Section 14A during the assessment. Therefore, the Commissioner was justified in revising the order under Section
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
The document summarizes provisions related to revision of orders by the Commissioner of Income Tax under sections 263 and 264 of the Income Tax Act. Section 263 allows revision of orders prejudicial to revenue, while section 264 allows revision in favor of the assessee. Key details include the types of orders that can be revised, time limits, procedures to be followed, and scope of the Commissioner's powers under each section.
Gauti Shankar vs. ITO, Ward-1, Sriganganagarsuresh ojha
1) The assessee filed a miscellaneous application arguing that the ITAT order contained a mistake by not following past history and applying a gross profit rate of 6.21% from the previous year.
2) The department argued that the application was attempting an impermissible review of the ITAT order under section 254(2).
3) The ITAT dismissed the application, finding no mistake in its previous order. It held that applying the 7.19% rate from an earlier year was reasonable given similarities to the current case facts and consistent with considering past history.
The ITO Ward, Bikaner vs. Shree Bhagwan Sutharsuresh ojha
(1) The revenue has appealed an order from the CIT(A) that provided partial relief to the assessee, Shri Shree Bhagwan Suthar.
(2) The CIT(A) deleted additions made under section 68 of Rs. 8,16,584, under expenses of Rs. 1,73,463, and for household expenses of Rs. 34,500.
(3) The ITAT upholds the CIT(A)'s order, finding the assessee provided adequate evidence to establish credits and expenses, and the AO made additions without evidence.
The Delhi High Court Full Bench decision addressed whether the reopening of a scrutiny assessment can be challenged as a "change of opinion" if the subject matter of the notice was not examined in the original assessment, even if the taxpayer made a full and true disclosure. The majority view was that reopening within four years is not barred by "change of opinion" in a "no opinion" case where the subject matter was not examined originally. One dissenting judge argued that reopening should not be allowed even within four years for "no opinion" cases unless failure to disclose was shown.
This document summarizes sections 263 and 264 of the Income Tax Act which deal with revision of orders by the Commissioner. Section 263 allows revision of orders prejudicial to revenue within 2 years, while section 264 allows revision in favor of the assessee within 1 year. The Commissioner can revise orders passed by assessing officers and other subordinate authorities if they are erroneous and prejudicial to revenue interests (section 263) or not prejudicial to the assessee (section 264). Reasonable opportunity of being heard must be provided in both cases.
SARRAF_EXPORT vs. ITO, Ward -2, Churu JODH-2012suresh ojha
The Income Tax Appellate Tribunal was hearing appeals from M/s. Sarraf Export for assessment years 2005-06 and 2006-07 regarding the disallowance of a deduction claimed under Section 80IB of the Income Tax Act for an amount credited as Duty Entitlement Pass Book. The Tribunal found that the Assessing Officer's withdrawal of the deduction, which was initially allowed, under Section 154 was not valid as the issue was debatable given an amendment to Section 28 and relevant case law. Therefore, the Tribunal allowed the appeals and reversed the orders of the Commissioner of Income Tax (Appeals).
The Adjudicating Officer investigated Manoj Shah for allegedly engaging in fraudulent trades that created artificial volume and manipulated the price of Adani Exports Ltd stock between 2004 and 2005. After considering evidence of synchronized trades where beneficial ownership did not change, the Officer determined Shah violated securities market regulations. While the gains and losses could not be quantified, the Officer imposed a penalty of 200,000 rupees given the default committed.
The Adjudicating Officer investigated Manoj Shah for allegedly engaging in fraudulent trades that created artificial volume and manipulated the price of Adani Exports Ltd stock between 2004 and 2005. After considering evidence of synchronized trades without beneficial ownership changes, the Officer determined Shah violated securities market regulations. Shah was fined 200,000 rupees for his role in the fraudulent trading scheme.
Adjudication order against Shri Manoj T. Shah in the matter of Adani Exports ...Hindenburg Research
The Adjudicating Officer investigated Manoj Shah for allegedly engaging in fraudulent trades that created artificial volume and manipulated the price of Adani Exports Ltd stock between 2004 and 2005. Shah denied the allegations but records showed his trades were reversal trades within seconds of each other without real ownership changes. The Officer determined Shah violated market manipulation regulations and imposed a penalty of 200,000 rupees to be paid within 45 days.
The Supreme Court of India heard an appeal regarding a sanction granted for the prosecution of Ashok Kumar Aggarwal by the Central Bureau of Investigation (CBI). The CBI had investigated Aggarwal for disproportionate assets and sought sanction from the Ministry of Finance to prosecute. Aggarwal challenged the validity of the sanction. The High Court set aside the order rejecting Aggarwal's challenge and remanded the case. The Supreme Court assessed whether the sanctioning authority properly applied its mind based on the evidence presented. The Court outlined the legal principles for a valid sanction, including that the prosecution must present all relevant evidence and the authority must independently review and consider it. The Court determined the validity of the sanction could only be fully examined
Similar to Gagan Deep Kathuria vs. ACIT, Sriganganagar (20)
The document discusses the recording of statements by Income Tax authorities in India. It outlines that the Income Tax Officer and those of higher rank are authorized to administer oaths and record statements. Inspectors are not authorized to record statements alone. Statements must be recorded in a language the deponent understands and should be read back and confirmed. Uncoerced statements recorded under oath, especially those under section 132(4), can be used as evidence against the deponent. However, statements taken without proper procedure or under threat may have no evidentiary value.
The ACIT, Sriganganagar vs. Ganesh Builders, Sriganganagarsuresh ojha
This document summarizes a tax appeal case between the ACIT and M/s Ganesh Builders for the 2004-05 assessment year. The Tribunal upheld rejecting the firm's books under section 145(3) and applying a net profit rate. However, it also allowed interest paid to third parties in estimating profits. It modified its earlier order regarding this issue based on another consistent ruling. As a result, the department's appeal was partly allowed and interest paid to third parties was deemed allowable after invoking section 145(3).
The ACIT, Circle-2, Bikaner vs. Gopal Ram Pema Ramsuresh ojha
This document summarizes a tax appeal case in India. [1] The appeal was filed by the assessee (taxpayer) against an order from the Commissioner of Income Tax Appeals regarding the application of a net profit rate to the assessee's accounts. [2] The Tribunal modified its prior order in a similar case to allow the deduction of interest paid to third parties when applying the net profit rate to the assessee's accounts under section 145(3) of the Income Tax Act. [3] As a result, the Tribunal partly allowed the assessee's appeal by allowing the deduction of interest paid to third parties.
1. The revenue filed a miscellaneous application seeking review of the tribunal's order from 2007 regarding tax assessments for the years 1998-1999 and 1999-2000 for a cooperative society.
2. The revenue argued that the cooperative society had misrepresented facts before the tribunal regarding its membership. However, the tribunal found that the revenue's application did not point to any specific errors in the 2007 order and merely cited observations from a different case.
3. As the application did not fall under the provisions allowing rectification of obvious mistakes, the tribunal dismissed the revenue's miscellaneous application.
This document summarizes a tax appeal case between Radhey Shyam Chugh and the Income Tax Officer. During a survey of the assessee's business, certain documents and records were seized. The ITO made various additions to the assessee's income based on discrepancies found in these records. The CIT(A) partially reduced some additions. In this appeal, the Tribunal allowed some of the assessee's grounds by accepting explanations for differences in interest charged and cash balances. However, it partially upheld one addition related to undisclosed income and ruled that additional income of 83,816 rupees should be added to the assessee's declared income. The assessee's appeal was therefore partly allowed.
Pushpa Devi Singla vs. The JCIT Range, Sriganganagarsuresh ojha
- The assessee, Smt. Pushpa Devi Singla, proprietor of a cotton ginning factory, declared total income of Rs. 2,57,890 for AY 2009-10 which was processed under section 143(1).
- During scrutiny, the AO found purchases of cotton amounting to Rs. 1,18,26,270 that were not supported by any vouchers and many were in cash. The assessee claimed these were direct purchases from farmers but could not produce the farmers.
- After several hearings and opportunities, the assessee failed to provide documents for the purchases. The AO conducted independent inquiries and analyses and concluded the purchases were accommodating entries to cover up unaccount
Patel Educationa & Social Welfare Trust vs. ITO Suratgarhsuresh ojha
1. The assessee-trust, Patel Education and Social Welfare Trust, filed an appeal against the orders of the CIT(A) and A.O denying exemption on its total income of Rs. 13,24,000 under sections 11 and 10(23C) of the Income Tax Act for AY 2008-09.
2. While the objects of the trust were charitable in nature and it ran a B.Ed college, it was not registered under section 12AA in the relevant year. However, the ITAT found the assessee was eligible for exemption under section 10(23C) based on the charitable nature of its activities.
3. The ITAT allowed the appeal and
The document summarizes a court case regarding an appeal by a school management committee against an order by the Commissioner of Income Tax related to registration under section 12A of the Income Tax Act. Key points:
- The committee had applied for registration in 2006 but the Commissioner only registered them starting in 2005, not from the original 1985 date as requested.
- The committee appealed arguing the Commissioner's order was invalid as it was passed more than 6 months after their application, and they should be registered from 1985.
- There was significant delay in the committee filing their appeal to the tribunal. They argued this was due to ignorance of the law and wrong advice.
- The tribunal considered precedents supporting con
The document summarizes an income tax appeal tribunal case between an income tax officer and Nosegay Kinder Garden for tax years 2003-04 to 2006-07 and 2008-09. The tribunal had previously ordered that Nosegay Public School be granted tax registration retroactively to 1985. Both parties now agreed that this new evidence impacted the assessments. The tribunal thus restored all the tax appeals back to the assessing officer's file with directions to reconsider the assessments in light of the granted registration. The tribunal allowed both the revenue's appeals and the assessee's cross-objections for statistical purposes only.
Mata Padmawati Shyamdaya Charitable Trustsuresh ojha
The Income Tax Appellate Tribunal was hearing two appeals filed by Mata Padmawati Shyamdaya Charitable Trust against an order of the Commissioner of Income Tax rejecting the Trust's application for registration under section 12AA and approval under section 80G(5) of the Income Tax Act. The Tribunal found that the Trust was established for charitable purposes such as providing shelter and education to orphans. However, the Commissioner had rejected the applications based on a report stating the Trust had not yet carried out any charitable activities. The Tribunal determined the Commissioner's order was non-speaking and remitted the matter back to the Commissioner to pass a speaking order after hearing from the Trust.
This document summarizes a court case between M/s. Kangiri Contractor and the Income-tax Officer regarding the contractor's tax assessment for the 2007-08 year. The court ruled that the contractor's case falls under section 44AD of the tax code since its receipts were less than Rs. 40,00,000. Therefore, applying a net profit rate higher than 8.15% declared by the contractor was unjustified. The court ordered the tax officer to apply the 8.15% net profit rate declared by the contractor without any separate additions for work in progress.
ITO Ward-1, Churu vs. Gunjan Enterprisessuresh ojha
This document summarizes an order from the Income Tax Appellate Tribunal regarding an appeal by the tax department against an order of the Commissioner of Income Tax (Appeals). The tribunal upheld some additions made by the assessing officer in the taxpayer's (M/s. Gunjan Enterprises) income for assessment year 2008-09. Specifically, the tribunal upheld the addition of Rs. 65,21,044 for non-deduction of tax at source on commission payments as required by section 40(a)(ia) of the Income Tax Act, finding that the taxpayer was liable to deduct tax on the commission amounts paid. The tribunal also upheld restricting the disallowance of commission expenses to Rs. 1 lakh rather
1. The assessee firm appealed an income tax assessment order for the 2005-06 assessment year. The assessment order made various additions to the firm's income, including a protective addition of Rs. 11 lakh introduced as capital by a partner.
2. The tribunal found that the lower authorities erred in treating the capital introduced by the partner as a cash credit to the firm. The tribunal ordered the Rs. 11 lakh addition be deleted from the firm's hands.
3. The assessment order also increased the firm's gross profit rate from 8.02% to 9% without proper logic. The tribunal found this addition to be ad hoc and baseless. It ordered this addition be deleted as
DCIT, Central Circle, BikanerAnil Kumar Tantiasuresh ojha
Relying on previous court decisions, the Tribunal also held that the CBDT's instructions applied to pending cases as well, so the department was not justified in filing the appeals when the tax effect was below the Rs. 3,00,000 limit specified in the CBDT
1. 1
IN THE INCOME TAX APPELALTE TRIBUNAL: JODHPUR BENCH : JODHPUR
BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND
SHRI N.K. SAINI, ACCOUNTANT MEMBER.
ITA No. 06/Jodh/2012 (A. Y. 2007-08)
Shri Gagan Deep Kathuria Vs. ACIT
P/o M/s Shivam Property Dealer Sriganganagar
Khinchi Chowk
Sriganganagar
PAN No. : AMJPK 6483 G
(Appellant) (Respondent)
Assessee by : Shri Suresh Ojha
Department by : Shri Deepak Sehgal - DR
Date of hearing : 14/03/2013.
Date of pronouncement : 30/04/2013.
PER HARI OM MARATHA, J.M:-
This appeal of the assessee for A.Y. 2007-08 is directed against
the order of the ld. CIT, Bikaner dated 3.10.2011.
2. Briefly stated, the facts of the case are that assessment was
completed u/s 143(3) of the Income-tax Act, 1961 [hereinafter
referred to as 'the Act', for short] on 30.12.2009 at total income of Rs.
74,75,000/-. Survey proceedings u/s 133A of the Act had been
conducted at the business premises of the assessee on 8.12.2006.
2. 2
During survey proceedings, the assessee had made a surrender of Rs.
74 lakhs for A.Y. 2007-08. The assessee is pursuing the business of a
property dealer. The ld. CIT, after calling for records of this A.Y.,
found that it is not only erroneous but also prejudicial to the interest
of the Revenue. Accordingly, he has set aside the assessment order for
making it afresh. Now the assessee has filed this appeal by raising the
following grounds:
1. That the order passed u/s 263 of the Income-tax Act, 1961
by the ld. CIT is bad in law, illegal and against facts.
2. That the ld. CIT erred in passing the order u/s 263 of
the Act even when the matters were properly dealt by the
ACIT at the time of assessment proceedings.
3. That the ld. CIT erred in holding that the assessee has
made total investment of Rs. 132.03 lakhs in various
properties out of his undisclosed income and surrendered
Rs. 72 lakhs only and directing the A.O. to make addition
of Rs. 60.03 lakhs to the total income of the assessee.
4. That the ld. CIT erred in setting aside the case on issue of
verification of new cash creditors introduced during the
year amounting to Rs. 13,50,000/-.
3. 3
5. The ld. CIT erred in setting aside the case on account of
allowing telescopic by the A.O. of Rs. 2 lakhs surrendered
during the course of survey.”
3. We have heard the rival submissions and have carefully perused
the entire material on record. It was submitted by the ld. A.R. that
the A.O. has made all the necessary enquiries from the assessee and
has legally passed his order and there is no error in this order as has
been alleged by the ld. CIT. On the other hand, the ld. CIT, DR has
supported the finding of the ld. CIT and has reiterated all the reasons
taken by him to set aside the assessment order for redoing the same.
4. Assessment was completed in this case u/s 143(3) of the Act on
30.12.2009 at a total income of Rs. 74,75,000/- as we have mentioned
earlier. The A.O. has issued notice u/s 142(1) of the Act dated
16.12.2009, a copy of which is enclosed at pages 1 to 4 of the
assessee’s paper book. The assessee submitted its reply regarding Rs.
60,03,000/- and also in respect of other queries raised by the A.O. vide
letter dated 16.12.2009 which are enclosed at pages 6,7 and 9 of
assessee’s paper book. The ld. CIT issued show-cause notice, copy of
which is enclosed at pages 15 & 16 of assessee’s paper book. Relevant
portion of this show cause notice reads as under:
4. 4
“1. The A.O. has completed the assessment in a routine
manner without making proper enquiry and investigation
regarding the investment and its source amounting to Rs.
60,03,000/- made by the assessee in the various properties
during the year under consideration. The amount of surrender
of Rs. 72.00 lakhs were made during the course of survey on
account of advance paid for purchase of land situated at 4 ML,
Sriganganagar, which is different that the amount of Rs. 60.03
lakhs invested in other properties. According to the ld. CIT, the
A.O. should have made a separate addition of Rs. 60.03 lakhs.
2. The A.O. has not properly examined and verified the new
creditors/loan of Rs. 13,50,000/- introduced during the year.
3. Details regarding business receipts from property
brokerage of the assessee has not been verified by the A.O. and
the A.O. has not made any enquiry in respect of investment in
residential property situated at 154 G Block Sriganganagar.
5. We have heard both sides in detail. We have also perused
carefully the entire evidences available on record. It is trite that an order
can be revised only and only if twin conditions of ‘error in the order’ and
5. 5
‘prejudice caused to the Revenue’ co-exist. The subject of ‘revision under
section 263’ has been vastly examined and analyzed by various Courts
including that of Hon’ble Apex Court. The revisional power conferred on the
CIT vide section 263 is of vide amplitude. It enables the CIT to call for and
examine the records of any proceeding under the Act. It empowers the CIT
to make or cause to be made such an enquiry as he deems necessary in order
to find out if any order passed by Assessing Officer is erroneous in so far as it
is prejudicial to the interests of the Revenue. The only limitation on his
powers is that he must have some material(s) which would enable him to
form a prima facie opinion that the order passed by the Assessing Officer is
erroneous in so far as it is prejudicial to the interest of the Revenue. Once
he comes to the above conclusion on the basis of the ‘material’ that the
order of the Assessing Officer is erroneous and also prejudicial to the
interests of the Revenue, the CIT is empowered to pass an order as the
circumstances of the case may warrant. He may pass an order enhancing
the assessment or he may modify the assessment. He is also empowered to
cancel the assessment and direct to frame a fresh assessment. He is
empowered to take recourse to any of the three courses indicated in section
263. So, it is clear that the CIT does not have unfettered and unchequred
discretion to revise an order. The CIT is required to exercise revisional
power within the bounds of the law and has to satisfy the need of fairness in
administrative action and fair play with due respect to the principle of audi
alteram partem as envisaged in the Constitution of India as well as in
6. 6
section 263. An order can be treated as ‘erroneous’ if it was passed in utter
ignorance or in violation of any law; or passed without taking into
consideration all the relevant facts or by taking into consideration irrelevant
facts. The ‘prejudice’ that is contemplated under section 263 is the
prejudice to the Income Tax administration as a whole. The revision has to
be done for the purpose of setting right distortions and prejudices caused to
the Revenue in the above context. The fundamental principles which
emerge from the several cases regarding the powers of the CIT under section
263 may be summarized below:
(i) The CIT must record satisfaction that the order of the
Assessing Officer is erroneous and prejudicial to the interests
of the revenue. Both the conditions must be fulfilled.
(ii) Section 263 cannot be invoked to correct each and every type
of mistake or error committed by the Assessing Officer and it
is only when an order is erroneous, that the section will be
attracted.
(iii) An incorrect assumption of facts or an incorrect application
of law will suffice for the requirement or order being
erroneous.
(iv) If the order is passed without application of mind, such order
will fall under the category of erroneous order.
(v) Every loss of revenue cannot be treated as prejudicial to the
interest of the revenue and if the Assessing Officer has
7. 7
adopted one of the courses permissible under law or where
two views are possible and the Assessing Officer has taken
one view under with which the CIT does not agree, it cannot
be treated as an erroneous order, unless the view taken by
the Assessing Officer is unsustainable under the law.
(vi) If while making the assessment, the Assessing Officer examines
the accounts, makes enquiries, applies his mind to the facts
and circumstances of the case and determines the income,
the CIT, while exercising his power under section 263, is not
permitted to substitute his estimate of income in place of the
income estimated by the Assessing Officer.
(vii) The Assessing Officer exercise quasi-judicial power vested in
him and if he exercise such power in accordance with law and
arrives as a conclusion, such conclusion cannot be termed to
be erroneous simply because the CIT does not feel satisfied
with the conclusion.
(viii) The CIT, before exercising his jurisdiction under section 263,
must have material on record to arrive at a satisfaction.
(ix) If the Assessing Officer has made enquiries during the course
of assessment proceedings on the relevant issues and the
assessee has given detailed explanation be a letter in writing
and the Assessing Officer allowed the claim on being satisfied
with the explanation of the assessee, the decision of the
Assessing Officer cannot be held to be erroneous simply
because in his order he does not make an elaborate discussion
in that regard.
8. 8
6. Reverting to the facts of this case, we have found from the perusal of
the assessment order that the A.O. has examined in respect of the amount
of Rs. 60.03 lakhs and has specifically raised a query as to why this amount
should not be added in assessee’s income. After considering the assessee’s
reply and the affidavit and after applying his mind, the A.O. has reached to
the conclusion that in the totality of the facts and circumstances of the
case, I find the reply as plausible. He has stated that he applied his mind
and in his opinion there was no point in making this addition separately as it
stood covered in the surrendered income of Rs. 74 lakhs made by the
assessee at the time of survey. Thus, it cannot be said that the A.O. has not
applied his mind to this issue. In view of the legal position on this subject of
revision to be made u/s 263 of the Act as discussed above, the ld. CIT
cannot replace his opinion when the A.O. has taken one of the possible
views after applying his mind to a specific item of income. The assessee had
relied on various decisions in this regard which have also been considered by
the A.O. The Hon'ble Jurisdictional High Court has taken similar view that
when the A.O. takes a decision after going through the material available on
record and after considering the explanation of the assessee, it cannot be
said that he has not applied his mind. In this regard, the following
decisions of the Hon'ble Rajasthan High Court are relevant:
1. CIT Vs. Girdhari Lal 258 ITR 331 [Raj]
2. CIT Vs. Ganpat Ram Vishnoi 296 ITR 292 [Raj]
3. CIT Vs. Shiv Hari Madhusudan 233 ITR 649 [Raj]
9. 9
It is settled position of law that when the A.O. adopts one of the permissible
course of law, the ld. CIT does not agree with it, the order cannot be
treated as erroneous in so far as it is prejudicial to the interest of the
Revenue unless the view taken by the A.O. is unsustainable in law. It is well
settled proposition of law as laid down by the Hon'ble Punjab and Haryana
High Court in CIT Vs. Sohara Wollen Mills reported in 296 ITR 278 in which it
has been laid down that mere audit objection and because different view
could be taken are not enough to say that the order of the A.O. is erroneous
in so far as it is prejudicial to the interest of the Revenue. Thus we do not
find this ground to be erroneous as has been claimed by the ld. CIT.
7. Regarding cash creditors, again this matter was properly examined by
the A.O. The assessee filed its reply stating all facts in his letter dated
18.8.2011. The A.O. applied his mind and took a decision. The assessee
also filed affidavit, which was considered by the A.O. The contents of the
affidavit are deemed to be accepted in the absence of cross-examination. In
this regard, decision of this Bench in the case reported in 36 TW 1 is
relevant.
8. Regarding investment in house at 154 G-Block, Sriganganagar, the A.O.
made enquiries. The assessee surrendered Rs. 2 lakhs of brokerage receipt,
which is mentioned in first para at page 9 of the assessment order. Thus, in
view of the aforementioned legal position and the facts of this case, we are
10. 10
of the considered opinion that the assessment order is neither erroneous and
when the twin conditions do not co exist, the order cannot be revised.
Accordingly, we set aside the impugned order of the ld. CIT(A) and allow the
appeal of the assessee.
9. In the result, the appeal of the assessee is allowed
Order pronounced in the open court on 30th
April 2013.
Sd/- Sd/-
[N.K. Saini] [Hari Om Maratha]
Accountant Member Judicial Member
Dated : 30th
April, 2013.
VL
Copy to :
1. The Appellant
2. The Respondent
3. The CIT
4. The CIT(A)
5. The DR
ASSISTANT REGISTRAR