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04.07.2012 - Voice of CA Presents - Updates
Wednesday, July 4, 2012

I.  Tender Info. :   

  • National Projects Construction Corporation Ltd.
    Preparation of Finance Manual
    Faridabad - Haryana
    (Click for detail)
  • Indian Institute of Technology
    Hiring Services of Chartered Accountants
    Jodhpur - Rajasthan
    (Click for detail)


II.  Today's News :   

  • Gujarat HC: Tax benefits cannot be withdrawn from a past date  (Click for detail)
  • No service tax on remittances to India by NRIs: PM to Chandy  (Click for detail)
  • ESIC, ICAI join hands for accounting basis reforms in ESIC  (Click for detail)
  • Chartered Accountants are capable of putting a stop to corruption and black money: Narendra Modi  (Click for detail)
  • IT: Transfer & Postings in the cadre of Asst.-Deputy Director of Income Tax  (Click for detail)


III.  Useful Case laws :

1.    M/s J.R. Solvent Industries (P) Ltd. Vs. CIT, ITR No. 105 of 1997, Date of Decision: 16/04/2012, High Court of Punjab & Haryana

“Whether the Tribunal was right in law in treating the purchases from non-existent firms as recorded in the books of account of the assessee as bogus without giving an explicit finding that the provisions of Section 145(2) of the Act were attracted in the case of the assessee, especially when complete quantitative details were available?”

Held that overwhelming evidence against the applicant-assessee would show that the whole purchases shown by the applicant-assessee from M/s Raj Kumar Raghbir Kumar were bogus. The Tribunal has rejected the copies of the sales tax bills purported to have been issued by the aforesaid firm because the bills did not inspire any evidence as the bills did not carry any sales tax/Central Sales Tax number nor the telephone number. The said firm was not found to be in existence when inquiry was made by the Assessing Officer in the year 1989 nor the address of the party was known to the postal authorities. The said firm was not an existing assessee and the applicant-assessee had failed to produce the said party as also their books of account. The inquiries made by the Assessing Officer from the transport authorities led to the finding that some of the truck numbers given by the applicant assessee were not truck at all but either scooters, motorcycle and mopeds and many other found to be non-existence because no such number had been allotted by the transport authorities. Dealing with the statement of the Cashier of the Union Bank of India, our attention was invited to the view of the Tribunal that the narration given at the back of Cheque No. 073353, dated 4.10.1986, was not acceptable. Moreover, it was never ever put before the lower authorities. In view of the above, we answer the question against the assessee and in favour of the revenue. The reference is disposed of accordingly.

(Please click here for judgment)


2.  Tata International Ltd. Vs. DCIT, ITA Nos. 3359 to 3361/Mum/2009, Date of Pronouncement: 29/06/2012, ITAT- Mumbai

Whether recorded reason for opening of assessment u/s 147 was supply after passing assessment order was valid?

It is settled proposition as laid down by the Hon’ble Supreme Court as well as Hon’ble High Court that the reasons as recorded by the Assessing Officer are required to be furnished to the assessee and the reasons recorded cannot be improved upon or amended by any correspondence, letters etc. It is an undisputed fact that the reasons actually recorded by the Assessing Officer were not furnished to the assessee till the assessment order despite repeated requests and demands and therefore, the gist of reasons as furnished vide letter dated 28th June 2007 cannot be treated as reasons actually recorded by the Assessing Officer as per section 148 (2) and as mandated by the Hon’ble Supreme Court in case of GKN Driveshafts (India) Ltd (supra). Thus, the Assessing Officer has failed to furnish the reasons recorded for reopening of the assessment within the reasonable time and rather prior to the completion of assessment, than the reassessment order passed without supply of reasons as recorded for reopening of the assessment, is invalid and cannot sustain. Accordingly, we set aside the reassessments for all 3 years under consideration being invalid.

(Please click here for judgment)


Key of Success :

"Two places are most valuable in this world…
Nicest place is to be in someone’s thoughts &
Safest place is to be in someone’s prayers


Thanks for your valuable time


"Voice of CA"  

CA. Sanjay 'Voice of CA' Agarwal
Mob: 9811080342,      
CA. Sidharth Jain, Co-Moderator  
CA. Mukesh K Bansal, Co-Moderator-FEMA 

CA. Avinash Gupta, Co-Moderator-International Taxation 


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