Re-opening of Assessment – Sections 147/148 Legal Foundation of Provisions The fundamental legal and common-sense principle which help understanding and appreciating the requirements of valid actions and procedures for re-opening the assessments is, that in general, the law disfavours the unsettling of settled and concluded status/...  |
| Intricacies of making addition on account of low GP 1. Power of the Assessing Officer to estimate profitsComparison of gross and net margin shown by an assessee is a normal exercise during the course of assessment proceedings. While lower gross profit shown by the Assessee as compared to the preceding years is a red flag for investigation, mere...  |
| Rejection of books of Accounts – Section 145(3) – Issues & Case Laws Section 145 of the Income Tax Act 1961, lays down that income chargeable under the head "Profit and gains of business or profession" or "Income from other sources" shall, subject to the accounting standards notified by the Central Government in the Official Gazette, be computed in accordance with...  |
| Issues pertaining to Minimum Alternate Tax (MAT) – Section 115JB Section 115JB was inserted by the Finance Act, 2000, w.e.f. 01/04/2001. It had replaced Section 1 15JA, which was inserted by the Finance Act, 1996 w.e.f. 01/04/1997. Section 115JA was replacement of earlier Section 115J, which was inserted by the Finance Act, 1987 w.e.f. 01/04/1988. The objective...  |
| Section 80P Deduction – Co-operative Societies – Analysis & Case Laws A perusal of various provisions of Section 80P indicates that the provisions are meant for deductions in respect of income of the co-operative societies. It is noted that various words /terms used in the section have not been defined in the Act except the definitions of co-operative society,...  |
| Deduction Under Section 80IA/80IB – Case Laws – Assessment The phrase Derived from has been a very contentious issue while applying the provisions of Sections 80IA and 80IB of the Act and other similar provisions contain same phrase. The issue revolves around the contention whether deduction is applicable for all receipts/income of the assessee or is it...  |
| Unexplained cash credits – Section 68 – Case Laws – Assessment Section 68 of the I T Act is one of the most powerful yet debated provision of the I T Act. This provision has given plethora of judgments, sometimes conflicting, both in favour of Revenue and the assessee. In light of those judgements an attempt is made to analyse Section 68 with the following sub...  |
| If effective management of company situated in Netherlands it can claim benefit under India – Netherlands treaty From the material documents allowed to be produced, the assessee could satisfy the Commissioner (Appeals) that the place of effective management of its enterprises was situated at Netherlands and thus, the requirement of condition in Article 8A of DTA agreement was met with. The Tribunal has...  |
| ITAT Bar Association, Ahmedabad decides to Boycott Bench consisting of member Shri A. K. Garodia A meeting of the managing committee of ITAT Bar Association, Ahmedabad was held on 19th April, 2013 and the following resolution was passed unanimously: RESOLVED THAT considering the conduct of Shri A. K. Garodia, the Accountant Member of ITAT Bench at Ahmedabad, it was found that on account of his...  |
| Reopening solely on basis of objection of audit party without application of mind by AO is not valid As is more than apparent, assessment was completed on scrutiny. In post assessment period, audit party raised the objection and Assessing Officer had strongly objected to such objections by communicating internally as mentioned hereinabove. In such background, reasons for reopening if are noted,...  |
