IT Judgement

Delay in filing Appeal- ‘sufficient cause’ should be interpreted liberally by the Court

7 years ago

Delay in filing Appeal- ‘sufficient cause’ should be interpreted liberally by the Court In every case of delay there can…

IT Judgement

Rule 8D cannot be invoked and applied unless the Assessing Officer records his dissatisfaction regarding correctness of the claim made by the assessee in relation to expenditure incurred to earn exempt income

7 years ago

PRINCIPAL COMMISSIONER OF INCOME TAX vs. VEDANTA LIMITED HIGH COURT OF DELHI SANJIV KHANNA & ANUP JAIRAM BHAMBHANI, JJ. ITA…

IT Judgement

Education is a charitable activity but running of coaching classes is not.

7 years ago

Education is a charitable activity but running of coaching classes is not. It cannot be treated as a charitable institution…

IT Judgement

Rejection of refund without considering assessee|s reply and also without affording an opportunity of personal hearing was in violation of the principles of natural justice.

7 years ago

Rejection of refund without considering assessee|s reply and also without affording an opportunity of personal hearing was in violation of…

IT Judgement

Order directing special audit validated BY Delhi High Court as it has outlined salient aspects in accounts and returns of assessee

7 years ago

Order directing special audit validated BY Delhi High Court as it has outlined salient aspects in accounts and returns of…

IT Judgement

Interesting Judgement by Ahmedabad ITAT- Gift received by an individual from HUF isn’t exempt

7 years ago

Interesting Judgement by Ahmedabad ITAT- Gift received by an individual from HUF isn’t exempt [Gyanchand M. Bardia v. ITO [2018]…

PENNY STOCK JUDGEMENT IN THE FAVOUR OF ASSESSEE

IT Judgement

PENNY STOCK RECENT JUDGEMENT IN THE FAVOUR OF ASSESSEE.

7 years ago

Amar Nath Goenka and ors v. ACIT (ITA No. 5882/D/18) (ITAT, Delhi) (12/12/2018) – section 10(38) and section 68 –…

IT Judgement

Whether disallowance u/s 40(a)(ia) is permissible if there is a Short deduction of tax at source due to difference of opinion?

7 years ago

Whether disallowance u/s 40(a)(ia) is permissible if there is a Short deduction of tax at source due to difference of…

IT Judgement

Mumbai ITAT Landmark Judgemnt on CONVERSION OF COMPANY INTO LLP

7 years ago

Mumbai ITAT Landmark Judgemnt on CONVERSION OF COMPANY INTO LLP ACIT vs. Celerity Power LLP (ITAT Mumbai) …

IT Judgement

Validity of assessment u/s 153A without notice under section 143(2)

7 years ago

Validity of assessment u/s 153A without notice under section 143(2) Short notes: As per section 153A, simple notice has to…

IT Judgement

If Assessee cannot establish that projections are reliable estimate achievable with reasonable certainty then the DCF method is not workable: Bangalore ITAT

7 years ago

If Assessee cannot establish that projections are reliable estimate achievable with reasonable certainty then the DCF method is not workable:…

IT Judgement

ITAT remands convertible preference shares valuation for taxation u/s. 56(2)(viib) by determining ‘true’ nature of shares

7 years ago

ITAT remands convertible preference shares valuation for taxation u/s. 56(2)(viib) by determining ‘true’ nature of shares Bangalore ITAT restores matter…

IT Judgement

Method of valuation of stock consistently followed by assessee and accepted by AO in preceding years, cannot be changed by AO without any substantial reason: ITAT

7 years ago

Method of valuation of stock consistently followed by assessee and accepted by AO in preceding years, cannot be changed by…

IT Judgement

Whether the Supreme Court is vested with the power to direct the Parliament to amend a law or create some legal provision, to a specified effect?

7 years ago

Whether the Supreme Court is vested with the power to direct the Parliament to amend a law or create some…

IT Judgement

Landmark Judgement on online Tax Payment: No interest leviable if the account is debited on the last day but Challan shows the next date as date of payment

7 years ago

Landmark Judgement on online Tax Payment: No interest leviable if the account is debited on the last day but Challan…

Question before the Mumbai Bench of ITAT was- Whether if rent is due for receipt only after fulfillment of certain conditions precedent, which are not yet fulfilled then no addition for Income from house property should be made? Facts of the case The assessee company, engaged in the business of real estate construction and letting of commercial premises, had filed return of income for relevant AY. During the relevant year, the assessee did not carried out any business activity. The case was selected for scrutiny assessment u/s 143(3). In the assessment so framed u/s 143(3), AO made addition under the head 'income from house property' amounting to Rs.11.76 Crores. On appeal, CIT(A) deleted the same after observing that the assessee had received only advance from the tenant, Junobo Hotels Pvt. Ltd. and had not received any rent from them as they had not occupied the premises for want of Coastal Regional Zone certificate and Occupancy certification from Municipal Corporation of Greater Mumbai. Since conditions precedent had not met with consequently no compensation/rent accrued/became due, to the assessee, therefore, the addition made of Rs. 11,68,50,670/- at accrual basis by assessing the amount as House Property income was not found to be in order and therefore, it was decided to direct the AO to delete the addition. Aggrieved Revenue filed appeal before the Tribunal. Tribunal held that, ++ the assessee had entered into a lease agreement dated 18.02.2011, which was subsequently amended vide supplementary agreement dated 16.01.2012 by which the company had given on lease its property i.e land along with building structure thereon at Juhu, Mumbai to M/s Junobo Hotels Pvt Ltd. However, no rental income has been offered in the Profit and Loss Account. As per the terms of the contract, rent is receivable on Rent commencement date which is in turn contingent upon the fulfillment of certain conditions precedent. Until such completion of conditions precedent, money received will be treated as an advance. Since during the year under consideration, conditions precedent had not been fulfilled i.e. Ministry of Environment and Forest (MOEF) approval and Occupancy Certificate (OC) from Municipal Corporation of Greater Mumbai (MCGM) has not been received, the rent received was treated as an advance and accordingly not offered for tax in the return of income, ++ it is also relevant to mention here that proposed lessee had treated the amount of Rs 2.10 crores given to the proposed lessor during the impugned period as "advance" and that AO during last year in scrutiny assessment accepted the claim of the assessee that the amount received was only an "advance" and did not form taxable income. The AO also did not consider the fact that only advance of Rs 2.10 crores has been received during the impugned period and no further advance was received after 30.06.2012. The AO did not take into consideration the confirmation given by the proposed lessee that amount given pending compliance of conditions precedent (obtaining of approval from MOEF and later OC from MCGM) has been treated in its (lessee) books of accounts as "advance"; ++ as conditions precedent have not been complied with, so nothing has become due to the proposed lessor. Finding of the AO that amount of compensation / advance/ revised advance was due to the lessor at the rate of Rs. 4.20 crores per quarter is not tenable. The addition made by AO on selective reading of the proposed lease agreement was not justified. The detailed finding recorded by CIT(A) are as per material on record which do not require any interference . Furthermore the finding so recorded are supported by observation, which has not been controverted by bringing any positive material on record. In the result, appeal of the Revenue is dismissed

IT Judgement

If rent is due for receipt only after fulfillment of certain conditions precedent, which are not yet fulfilled, then no addition for Income from house property is to be made : Mumbai ITAT

7 years ago

If rent is due for receipt only after fulfillment of certain conditions precedent, which are not yet fulfilled, then no…

IT Judgement

Inter-Corporate Deposits (ICDs) are different from loans or advances and would not come under purview of ‘deemed dividend’ within meaning of section 2(22): Mumbai ITAT

7 years ago

Inter-Corporate Deposits (ICDs) are different from loans or advances and would not come under purview of ‘deemed dividend’ within meaning…

IT Judgement

Business disallowance u/s 43B forEmployer/employees| contribution towards PF. G. fund and superannual fund in case of Deposit after prescribed date

7 years ago

Business disallowance u/s 43B for Employer/employees| contribution towards PF. G. fund and superannual fund in case of Deposit after prescribed…

IT Judgement

Delay in filing Appeal- ‘sufficient cause’ should be interpreted liberally by the Court

Rule 8D cannot be invoked and applied unless the Assessing Officer records his dissatisfaction regarding correctness of the claim made by the assessee in relation to expenditure incurred to earn exempt income

Education is a charitable activity but running of coaching classes is not.

Rejection of refund without considering assessee|s reply and also without affording an opportunity of personal hearing was in violation of the principles of natural justice.

Order directing special audit validated BY Delhi High Court as it has outlined salient aspects in accounts and returns of assessee

Interesting Judgement by Ahmedabad ITAT- Gift received by an individual from HUF isn’t exempt

PENNY STOCK RECENT JUDGEMENT IN THE FAVOUR OF ASSESSEE.

Whether disallowance u/s 40(a)(ia) is permissible if there is a Short deduction of tax at source due to difference of opinion?

Mumbai ITAT Landmark Judgemnt on CONVERSION OF COMPANY INTO LLP

Validity of assessment u/s 153A without notice under section 143(2)

If Assessee cannot establish that projections are reliable estimate achievable with reasonable certainty then the DCF method is not workable: Bangalore ITAT

ITAT remands convertible preference shares valuation for taxation u/s. 56(2)(viib) by determining ‘true’ nature of shares

Method of valuation of stock consistently followed by assessee and accepted by AO in preceding years, cannot be changed by AO without any substantial reason: ITAT

Whether the Supreme Court is vested with the power to direct the Parliament to amend a law or create some legal provision, to a specified effect?

Landmark Judgement on online Tax Payment: No interest leviable if the account is debited on the last day but Challan shows the next date as date of payment

If rent is due for receipt only after fulfillment of certain conditions precedent, which are not yet fulfilled, then no addition for Income from house property is to be made : Mumbai ITAT

Inter-Corporate Deposits (ICDs) are different from loans or advances and would not come under purview of ‘deemed dividend’ within meaning of section 2(22): Mumbai ITAT

Business disallowance u/s 43B forEmployer/employees| contribution towards PF. G. fund and superannual fund in case of Deposit after prescribed date

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