1. COMMISSIONER OF INCOME TAX Vs. SAMTEL COLOR LIMITED, ITA NO. 660/2008, DATE OF DECISION: JANUARY 17, 2011 DELHI HIGH COURT
Facts of the Case
During
the assessment proceedings, the Assessing Officer observed that the
assessee had taken deposits from public, which was to the tune of
Rs.261.41 lakhs. According to the Assessing Officer, however,
credit-worthiness in respect of 18 depositors could not be established
by the Assessee and, therefore, deposits given by those 18 depositors,
which were to the tune of Rs.18.00 lakhs, were added in the income of
the assessee under Section 68 of the Income Tax Act.
Judgment
It
is stated at the cost of repetition that assessee is a public limited
company and the deposits were invited by public notice and not
privately. It is also important to note that total deposits in this
year, which was received, were to the tune of Rs.2.61 crores and the
Assessing Officer has raised dispute only qua 18 persons and whose
total deposits are Rs.18.00 lakhs. By giving the information, which was
available with the assessee in the form received in the aforesaid
application form filled by the depositors, we are of the view that
assessee had, in the aforesaid circumstances, discharged the initial
onus.
Insofar
as addition of Rs.5.20 lakhs sustained by the ITAT is concerned, the
only reason given is that in respect of these persons no confirmation
letters could be filed. In view of the reasons given above, in a case
where public company receives the deposit through public notice and not
privately and various depositors make the deposits, it is possible that
at relevant time, the assessing company is not in a position to take
the confirmation from each and every depositor. The deposits of those
eight persons are nominal in nature when compared to the total deposits
received by the assessee. Moreover, the information given in the
application forms submitted by these depositors would have served the
purpose and it cannot be said that the assessee did not discharge the
onus. Thus, on the facts of this case, we are of the opinion that even
in respect of these eight depositors, the assessee had discharged the
onus. The order of CIT(Appeals) in deleting the entire amount was
perfectly justified and could not have been interfered with by the ITAT
qua those eight depositors.
(Please click here for judgment)
2. COMMISSIONER
OF INCOME TAX, Vs. ORIENT CERAMICS & INDS. LTD., INCOME TAX APPEAL
NO. 65 AND 66 OF 2011, DATE OF ORDER : 20.01.2011, HIGH COURT OF DELHI
It
is held that mere book entries are not decisive of any income. The
question is whether a receipt of money is taxable or not, whether
certain deductions from that receipt are permissible in law or not, the
question has to be decided according to the principles of law and not
in accordance with the book entries for the accounting practice since
the accounting practice cannot override the provisions of the Act.
(Please click here for judgment)
3. CENTRAL WAREHOUSING CORPORATION Vs. ASSTT. COMMISSIONER OF INCOME TAX, INCOME TAX APPEAL NO. 464, 465 AND 473 OF 2010, DATE OF ORDER : 14.01.2011, HIGH COURT OF DELHI
The
crux of the matter is the entire income of the Corporation cannot be
exempted as income derived from the letting out of godowns only
qualifies for exemption U/s 10 (29) OF THE INCOME TAX ACT, 1961. On the basis of the decision of the Hon‟ble
Supreme Court in the case of Orissa State Warehousing Corporation,
income in the nature of interest on fixed deposits, agency commission,
misc. receipts and other income which have been derived outside the
activities of warehousing should be subjected to tax.
(Please click here for judgment)
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