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01.09.2014 - Voice of CA presents - Updates
Monday, September 1, 2014


I. Today's Headlines:    

  1. MCA Cir. No. 35: Clarification Accounting Standards (AS) 10 – Capitalization of Cost  (Click for detail)
  2. I-T dept's anti-evasion drive: Notices going to 22 lakh non-filers  (Click for detail)
  3. IFRS - compliant accounting standards by December  (Click for detail)
  4. ICAI: Empanelment of Members to act as Observers at the Examination Centres for CA Examinations November/December 2014  (Click for detail)
  5. Household financial savings rate inch up to 7.2% of GDP  (Click for detail)
  II. Direct Tax Case Laws:

1.  DCIT Vs. Crew Bos Products Pvt. Ltd., I.T.A. No. 1948/DEL/2013, Date of Order: 08/08/2014, ITAT - Delhi

Penalty cannot be levied U/s 271(1)(c) merely because an amount is not allowed or taxed as income.

Held Yes

Assessee claimed deduction U/s 80HHC of IT Act, 1961. During the reassessment proceeding AO disallowed a part of claim made by assessee u/s 80HHC and held that assessee furnished inaccurate particulars of its income by way of claiming excess deduction. AO initiated penalty proceeding U/s 271(1)(c) of the Act.

Hon’ble ITAT held that merely because the assessee’s claim was not accepted or was not acceptable to the revenue, that by itself would not attract penalty u/s 271(1)(c) of the Act.

In the result, the appeal of the revenue is dismissed.

(Please click here for judgment)

2.  CIT Vs. Shri Samraj Krishan Chaudhary, I.T.A. No. 127 of 2014, Date of Order: 04/08/2014, High Court of Allahabad

Validity of the reopening of assessment has to be determined on the basis of reasons disclosed by the AO.

Held_ Yes

The notice of reopening of assessment is issued upon assessee on the ground that assessee sold some property for a consideration which is less than stamp duty value. ITAT finds that, when assessee computing the capital gains, took high value i.e. stamp duty value so AO has no reason to believe that there is in an escapement of income from assessment.

Later on revenue contended that assessee has reduced capital gain by increasing the cost of acquisition and improvement. ITAT not appreciated submission made by revenue since this was not the basis on which assessment was reopened U/s 148.The validity of the reopening of the assessment has to be determined on the basis of the reason which was disclosed by AO. Hon’ble High Court held that the the Tribunal was justified in assessing the correctness of the notice for reopening the assessment U/s 148 on the basis of reason which were disclosed by AO.
Hence appeal of revenue is dismissed.

(Please click here for judgment)

 Golden Rules:

  "Reflection Cannot Be Seen In Boiling Water.
The Same Way, Truth Cannot Be Seen In A State Of Anger
So 'Analyze' Before 'Finalize’"


  Thanks & Regards


Voice of CA 

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