1.
Tarun Goyal Vs. ACITTarun Goyal Vs. ACIT, Central Circle-4, I.T.A. Nos.
4636 & 4637/Del/2012, Date of Order : 18.10.2013, ITAT-Delhi.
Modus operandi for quantification of income in case of admitted accommodation entry provider:
That when
the finding is that the assessee has indulged in circular and multiple
transactions, by layering, what can be taxed is the peak credit and that
too at the first point is acceptable and should be the manner of
determining the correct income. If each of the layer is brought out tax,
then it would be case of levy of income tax, multiple no. of times, on
the same amount. Such levy of double or multiple taxes is against law
and it would not be the right method of arriving at the correct amount
of income.
The AO shall after examining the evidence submitted by the assessee, consider all the cases together and;
a) Restrict the addition u/s 68 to only the peak unexplained credit in each case after elimination circular transaction.
b) To
eliminate taxation of the same amount multiple times, due to the chain
transactions which resulted due to layering indulged by the assessee.
c)
Considere the material on record and the precedence available on the
issue and determine the percentage of commission, which the assessees
would have earned and bring the same to tax.
2.
Motorola Solutions India (P.) Ltd. v. Commissioner of Income -tax,
Faridabad, CWP No. 7652 OF 2013, Date of Order : 11.10.2013, High Court
of Punjab & Haryana
No coercive recovery of stayed tax demands on grounds of expired bank guarantee when bank guarantee has "auto-renewal clause"
When
Mutual Agreement Procedure (MAP) proceedings under DTAA are pending and
bank guarantee furnished as required by terms of stay on demand has
auto-renewal clause (i.e. automatic renewal unless Bank intimates
Revenue 60 days prior to date of expiry of BG of non-renewal) and
validity of Bank Guarantee in its records confirmed by issuing bank,
Forcible appropriation of disputed tax amounts from assessee's bank
account not justified on the grounds that Bank Guarantee has expired and
has neither been renewed nor fresh Bank Guarantee issued
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