Doshi Tank And Associates

CIT(Exemption) v. Baba Amarnath Educational Society -  [2019] 112 taxmann.com 221 (Punjab & Haryana) The assessee applied for registration under section 12AA. The CIT rejected the assessee’s application. Assessee challenged the rejection order before ITAT at Chandigarh. The ITAT directed the CIT to grant registration. In pursuance of the ITAT’s order registration was granted to the assessee. The revenue moved a miscellaneous application stating that the order passed by the Chandigarh ITAT was without jurisdiction as the case fell within the jurisdiction of Amritsar Bench. The revenue’s application was dismissed. On further appeal, the HC held that from the perusal of section 254(2), it was evident that there was an error apparent from record. The ITAT was empowered to amend the order passed under section 254. The undisputed fact that Chandigarh ITAT didn’t possess the jurisdiction to hear and decide the appeal is itself an error apparent from record. The same couldn’t ...

Ganpati Dealcom (P.) Ltd. v. Union of India -  [2019] 112 taxmann.com 367 (Calcutta) In 2011, appellant-writ petitioner purchased the property and sellers were diverse individuals. In 2017 after the Benami Transactions (Prohibition) Act, 1988 was amended by the Benami Transaction (Prohibition) Amendment Act, 2016 with effect from 25-10-2016, authority invoked section 24(1) and issued a notice to the appellant alleging that the said property was benami under section 2(8) of the said Act of 1988, as amended. It also alleged violation of section 2(9)(D) thereof and the consideration for this transaction was provided by "non-traceable fictitious/shell entities having no real business", rendering the transaction benami. The Calcutta High Court held that Benami Transactions (Prohibition) Amendment Act, 2016 was new legislation and in order to have retrospectivity, it should have been specifically provided therein that it was intended to cover contraventions at an earlier p...

In order to recover pending dues and reduce litigations, the Govt.of Gujarat has announced Vera Samadhan Yojana - 2019 dated 06th December, 2019. The Scheme has been revised to make it more inclusive and liberal. The salient features of the scheme are as under - 1.              Inclusion of Sales Tax Act, Value Added Tax Act, Central Sales Tax Act, Motor Spirit Taxation Act,                           Entry Tax Act and Sugarcane Purchase Tax Act. 2.              Coverage of all transactions prior to 30/06/2017 regarding recovery of dues and litigations(appeals). 3.              Total set off of the amount paid before announcement of the scheme. 4.              Total remission of interest and penalty on payment of tax. 5.              Up to 5...

www.taxmann.com Refund couldn't be withheld on ground that assessee declared income in prior AY and claimed loss in current AY Vodafone Idea Ltd. v. DCIT -  [2019] 111 taxmann.com 451 (Bombay) The assessee-Vodafone Idea Ltd. was engaged in the business of providing telecommunication services. It filed loss return and claimed refund of the entire amount deducted or collected at source. Assessing Officer (AO) withheld the refund determined under section 241A on the ground that the assessee had declared huge amount during AY 2016-17, whereas it had declared huge losses in the current Assessment Year. Thus, the issue of huge losses needed thorough investigation. On writ, the HC held that the auto-generated communication containing the note of withholding of refund in terms of section 241A didn’t satisfy any of legal tests, as the order was not passed by the AO who was competent to do so and secondly, it was not even an order. The communication didn’t contain any reasons recor...

Disposing of appeal by merely holding that AO's order was self-speaking which required no interference was unjustified Ajji Basha v. CIT -  [2019] 111 taxmann.com 348 (Madras) Assessee filed an appeal to CIT(Appeals) against order of scrutiny assessment done by Assessing Officer. CIT(Appeals) disposed of appeal holding that Assessing Officer's order was a self-speaking order and did not require interference. The Madras High court held that the CIT(Appeals) is a fact finding authority and, therefore, has to consider the order of assessment on the grounds raised in the appeal and thereafter, pass a speaking order on merits and in accordance with law by giving his own reasons and findings as to whether the order of assessment could be sustained or not. In other words, the order should explicitly exhibit application of mind to the facts and circumstances and the objections raised in the grounds of appeal, also by expressing the reasons and findings in support of the conclu...

  Development right can't be held as investment merely on the basis of accounting treatment given at time of purchase Prakash Gulabrai Chawla v. ACIT -  [2019] 111 taxmann.com 307 (Mumbai - Trib.) The assessee was engaged in undertaking contract work relating to development of real estate project. He purchased development rights of a project which were sold to a sub-contractor through a MOU. Receipts arising from sale of development rights were treated as business income and credited to the profit and loss (P&L) account. Expenses against such income were also debited to the P&L account. Assessing Officer (AO) observed that the purchase of development rights was shown as investment in the balance sheet. Said transaction was not routed through P&L account as stock-in-trade. Thus, he observed that said income was a capital receipt assessable under the head ‘capital gain’. The CIT(A) confirmed the additions made by the AO. On further appeal, the ITAT held that...

  Recording of satisfaction is mandatory before cancellation of trust's registration: HC St. Michaels Educational Association St. Michaels High School v. CIT  - [2019] 111 taxmann.com 242 (Patna) The assessee was an educational institution registered under section 12AA and was running a school. Ninety-five per cent of students admitted in school were non-Christians. After the lapse of more than 26 years, the commissioner (CIT) served a show cause notice on the assessee for cancelling its registration on the ground that the assessee was, in fact, espousing the cause of religion, in particular, i.e., Christians. It was not open for the benefit of the other communities. The CIT rejected the assessee’s registration. ITAT confirmed the order passed by the CIT. The Patna HC held that a plain reading of the impugned order confirmed that the Commissioner had got mixed up in between the stipulations warranting exercise under section 12AA(3) and section 13(1) (b) in so far as i...

CBDT notifies draft norms for calculating remuneration payable to eligible fund manager u/s 9A F No 142/15/2015-TPL, dated 05-12-2019 Section 9A of the Income-tax Act, 1961 provides that an offshore investment fund shall not be said to be resident in India or having a business connection in India merely because it carries out fund management activity through a fund manager located in India. This immunity is provided to an offshore fund if it meets certain conditions. One of conditions provides that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the arm’s length price of the said activity. However, the Finance (No. 2) Act, 2019 has amended such condition w.e.f. Assessment Year 2019-20, to provide that the Government shall provide a separate set of rules to determine the amount of remuneration for fund managers. Now, the Central Board of Direct Taxes (CBDT) has issued a draft ...