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03-06-2010 - Recent Updates as on 03.06.2010
Thursday, June 3, 2010

1. DCIT vs Khandubhai V. Desai- Guj. HC : Search Assessment : Important Principles:

Held  "The Tribunal also observed that the said Shri Madhavjibhai Patel had  stated that Rs.92 Lacs had been paid in cash to the assessees only  because he might have thought of getting benefit of deduction  from the income. After this entire discussion, the Tribunal came  to the conclusion that evidences are not enough to prove that  Rs.92 Lacs had been paid in cash to the individual assessees for the land.  Even after considering Paper No.19 of B-5, the Tribunal factually  arrived at the conclusion that no statutory presumption can be drawn against the assessees in respect of the said paper and that on the basis of the said paper, it cannot be proved that the assessees had received Rs.92 Lacs individually or jointly. The Tribunal has,therefore, given clear-cut finding that these evidence cannot be taken as unbiased evidence to use against the assessees, more so when the assessees were not given any opportunity to cross-examine the said Shri Madhavjibhai Patel....The Tribunal after referring to the provisions contained in Section 158-BB (1) which defines undisclosed income, came to the conclusion that the materials collected from Shri Madhavjibhai Patel could not be used as evidence in assessees' case as out of the 17 assessees, many persons having taxable income have been filing their returns of income and they have shown their investment in Dhaval Co-operative Housing Society Limited in their balance-sheets and hence, it cannot be said that transactions representing wholly or partly any income or property which has not  been or would not have been disclosed for the purpose of Income Tax Act. Based on these facts and submissions, the Tribunal arrived  at the conclusion that the contribution to the Society for the Flats had  been recorded in the balance-sheets of the assessees filed before the department and hence, the acquisition of Flats as well as capital gains should be considered in the regular assessment."

(Click here for judgment)

   

2. Delhi Bench of ITAT in ITO vs M/s Le Mans Overseas Pvt. Ltd.:

Held applying SC Lovely exports: once the identity of the share holders was established and it stands established that the shareholders have invested money in the purchase of shares, hence onus on the part of the assessee company is discharged..

(Click here for judgment)

  

  

What's New 

a.  Amendments in TDS Rules notified  (Click for detail)

b.  Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) (Amendment) Regulations, 2010  (Click for detail)

c.  Finmin scraps UTN, announces new method for tax refunds  (Click for detail)

d.  Duty on STPP imports from China proposed  (Click for detail)

e.  Second hand machinery purchased for use as spare parts for existing old machineries has to be considered as an allowable expenditure on revenue side  (Click for detail)

f.   761-page Income Tax order tries to pin Vodafone  (Click for detail)

g.  Once estimation of income is made, further disallowances under section 40(a)(ia) are unwarranted  (Click for detail)

   

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

  

"Wise men talk because they have something to say; fools, because they have to say something" 

  

Thanks for your valuable time 

"Voice of CA" 

   

CA. Sanjay Kumar Agarwal, Founder - Voice of CA
Member  Central Council - ICAI
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
Mob:9540022533, mukbansal80@gmail.com 

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