1.   COMMISSIONER OF INCOME TAX  Vs.   ANSAL PROPERTIES & INDUSTRIES-Delhi High Court- On genuineness of Commission Expense: 

HELD : The Assessing Officer found that the assessee had claimed to have entered into an agreement with M/s. Aadharshila for purchase of 167 acres of land through Mr. Ved Chaudhary. He was paid commission of Rs.2.93 crores as property consultant. On making the enquiry from Mr. Ved Chaudhary, it turned out that he had withdrawn a sum of Rs.1.08 crores from his bank account and in his statement he admitted that he had issued bearer cheque worth Rs.55 to 60 lacs to one Mr. Pradeep Sethi. Mr. Pradeep Sethi was the Sales Executive of the assessee company and Mr. Saleem, was stated to be the Proprietor of M/s. Pioneer. In these circumstances, the Assessing Officer concluded that amount of Rs.60 lacs was received back by the assessee and added it as income of the assessee The Income Tax Appellate Tribunal (ITAT) has deleted this addition. While arriving at this conclusion the ITAT has observed that the department could not bring any material to show that amount of Rs.60 lacs purportedly Once the entire commission paid by the assessee to Mr. Ved Chaudhary had been taxed, it cannot be taxed again at the hands of the assessee on the mere suspicion that the aforesaid amount was received back. It is also important to note that Sh. Pradeep Sethi was not even examined by the Assessing Officer and there was no opportunity for the assessee to cross-examine Mr. Pradeep Sethi. No opportunity was given to the assessee even to cross-examine Mr. Ved Chaudhary.."

(Click here for judgment)

  

2.    New Skies Satellites NV vs. Asstt. Director of Income-tax International Taxation: Demand Stay:  

HELD: "This is an application for stay. Mr. M.S. Syali, learned senior counsel for the Appellant submits that there is a tax liability of Rs.1.0785 crores and the Appellant is ready to deposit the same. We find that apart from the above, the Respondent has also made demand of interest under Section 254D, 220(2) as well as Section 234D. Keeping in view the totality of circumstances, till the decision in this appeal, we stay the demand of interest subject to the deposit of Rs.1.35 crores within one week.."

(Click here for judgment)  

  

3.     CIT vs Samtel India Ltd. : Loss from forward exchange contract:  

Held : "We find from the order of the CIT(A) that the contentions of the assessee to the effect that the assessee had received foreign credit from respective suppliers namely usance credit is not disputed nor it is disputed that the forward exchange contract was entered into by the assessee with the sole purpose to hedge against enhancement of foreign currency liabilities due to fluctuation in the foreign currency rates. Thus, these foreign exchange contracts wherein losses are suffered due to cancellation thereof in view of the payments to be made to the foreign suppliers, for which usance credit was taken. This would clearly be in the Revenue field. The Tribunal has taken into consideration these aspects as is clear from the following discussion.."

(Click here for judgment)  

  

What's New 

a.  Excise dept’s new rider spawns steep fall in VAT refund applications (click here for read more)

b.  Export and Import of Currency; A.P. (DIR Series) Circular No. 30, A.P. (FL/RL Series) Circular No. 06, dated 1-2-2010  (click here for read more)

c.  A petition under Article 226 of Constitution would be maintainable for questioning reopening of an assessment where pre-conditions for exercise of power have not been fulfilled (click here for read more)

d.   Vanishing firms back on radar with Govt's new rules (click here for more)

(click here) for Team Voice of CA Chapters detail.

   

  

If you have any query please e-mail at voiceofca@gmail.com  

 

 

"A machine has value only as it produces more than it consumes - so we should check our value to the community"

 

Thanks for your valuable time

"Voice of CA"

CA. Sanjay Kumar Agarwal, Founder - Voice of CA

Member - Central Council ICAI (Elect) (Former Chairman - NIRC)

Mob : 9811080342, agarwal.s.ca@gmail.com

CA. Kapil Goel, Moderator-Direct Taxes, Mob:9910272806, cakapilgoel@gmail.com

CA. Sidharth Jain, Co-Moderator, sidhjasso@yahoo.com

CA. Mukesh K Bansal, Co-Moderator-FEMA, mkak@rediffmail.com