Court : Chennai
Decided on : Sep-08-2006
Reported in : (2007)208CTR(Mad)330; 289ITR37(Mad)
..... to re-open the assessment.13. in the light of the discussion made above and in view of the supreme court rulings (supra) and also the relevant provisions of the income tax act already dealt with, i am of the considered view that the impugned order is liable to be set aside and accordingly, it is set aside and the writ petition is ..... and ors. (sc), observed as follows:we see no justifiable reason to interfere with the order under challenge. however, we clarify that when a notice under section 148 of the income tax act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. the assessing officer is ..... the expiry of one year from the end of the financial year in which the notice under section 148 was served.10. having dealt with the relevant provisions of the income tax act, let met now proceed to analyse the various case laws necessary for deciding this appeal and they are as under:i. in the judgment of the supreme court reported in ..... to be dismissed.9. before proceeding to consider whether the impugned order is sustainable or not, it would be proper for this court to refer to certain sections of the income tax act and they are as under:assessment - section 143(1)where a return has been made under section 139, or in response to a notice under sub-section (1) of section .....Tag this Judgment!
Court : Chennai
Decided on : Apr-21-2006
Reported in : (2006)205CTR(Mad)415; 285ITR36(Mad)
..... counsel for the petitioner, drew the attention of this court to the provisions contained in section 269(ss), 271(d) and 273(b) of the income tax act and submitted that the order of the first appellate authority is a non speaking order and drew the attention of this court to paragraph 6 of the ..... these aspects, but has simply rejected the petition and fixed an early date for hearing.7. ms.pushya seetharaman, learned senior standing counsel for the income tax department submits that the tribunal has fixed an early date for the hearing of the appeal, since the liability on the petitioner is huge. she submitted ..... in the submissions of the appellant. in the circumstances of the case, i do not find any infirmity in the action of the additional commissioner of income-tax who levied the penalty, as this case is a fit case for levy of penalty. the penalty of rs.11,65,240/- levied u/s ..... to the second respondent. the second respondent upheld the findings of the first respondent and dismissed the appeal. hence the petitioner preferred an appeal before the income tax appellate tribunal and the same is pending for disposal. the first respondent has been sending notices under section 226(3) to various banks where the ..... the prayer in the writ petition is for the issuance of a writ of certiorari to set aside the order dated 31.03.2006 passed by the income tax appellate tribunal, chennai - bench :a.3. the facts of the case are as follows:the petitioner company filed its returns for the assessment year .....Tag this Judgment!
Court : Chennai
Decided on : Mar-29-2006
Reported in : 291ITR178(Mad)
..... authorities were in the realm of imagination, surmises and conjectures.14. on the facts of this case, when the assessees have established all the requirements of section 68 of the income tax act as referred to above, rejection of those explanations is definitely due to arbitrary and unreasonable exercise of power. in : 159itr78(sc) referred to supra, the hon'ble supreme court ..... the case here. in referred to supra, the guwahati high court held that in order to establish the receipt of a cash credit as required under section 68 of the income tax act, 1961, the assessee must satisfy three conditions namely, (1) identity of the creditor (2) genuineness of the transaction and (3) credit worthiness of the creditor. once this is established, then ..... to analyse the merits and demerits of these batch of cases, let us apply our mind to section 68 of the income tax act and the decided case laws on that section. under section 68 of the income tax act, hereinafter referred to as 'the act', 'when any sum is found credited in the books of account of an assessee and the assessee offers no explanation about ..... tribunal is legally justified in concluding that the burden of proof cast on the appellant under section 68 of the income tax act, 1961, has not been discharged and the ingredients for invoking section 68 of the income tax act are present?(c) whether in the facts and circumstances of the case, the conclusion of the tribunal that the claim of gift is not genuine is .....Tag this Judgment!
Court : Chennai
Decided on : Jun-08-2006
Reported in : (2006)206CTR(Mad)426; 287ITR25(Mad); (2006)3MLJ1106
..... company, m/s. deccan hospital corporation limited under a scheme of amalgamation. the assessee has claimed that set off of loss as per the provisions of section 72a of the income tax act, vide form no. 3cd. this section prescribes where there has been an amalgamation of a company owning an industrial undertaking or a ship with another company, then alone the accumulated ..... of certiorari to call for the records on the files of the respondent herein in pan ax 1/015/2000-01 dated 30.03.2005 under section 148 of the income tax act 1961 and quash the proceedings of the respondent in ax1/015/2000-01 dated 30.03.2005 as illegal and without jurisdiction.3. the short facts that are necessary for ..... pradesh high court and this court.(ii) in respect of the assessment year 2000-01 the petitioner submitted returns and claimed the benefit of section 72a of the income tax act (hereinafter referred to as 'the act') to have the unabsorbed depreciation of dhcl as the depreciation of the petitioner. the respondent examined the details of the case and in his letter in g ..... : 203itr456(sc) , their lordships have held while interpreting section 147 as it stood in the assessment year 1963-64:an income-tax officer acquires jurisdiction to reopen an assessment under section 147(a) read with section 148 of the income-tax act, 1961, only if on the basis of specific reliable and relevant information coming to his possession subsequently, he has reasons, which he .....Tag this Judgment!
Court : Chennai
Decided on : Nov-08-2006
Reported in : (2007)207CTR(Mad)497
..... the assessment and held as follows:we see no justifiable reason to interfere with the order under challenge. however, we clarify that when a notice under section 148 of the income-tax act is issued, the proper course of action for the noticee is to file a return and if he so desires, to seek reasons for issuing notices. the assessing officer is ..... appellate tribunal was right in law in treating the letter dated 20.12.2004 by the assessing officer is equivalent to a notice prescribed under section 143(2) of the income tax act, 1961 when the letter is nothing but furnishing the reasons for reopening the assessment?2. if the answer to the above question is in affirmative then on the facts and ..... for the assessee relied on this court judgment reported in : 281itr444(mad) in the case of commissioner of income-tax v. m. chellappan. this tax case (a) was filed by the revenue under section 260a of the income-tax act against the order of the income-tax appellate tribunal raising the following substantial question of law:whether on the facts and in the circumstances of the case ..... circumstances of the case the appellate tribunal was right in law in remanding the assessment relating to the assessment year 1999-2000 to the assessing officer to tax depreciable assets under section 50 of the income tax act?7. whether on the facts and circumstances of the case the appellate tribunal was right in law in ignoring that the consideration received by the assessee .....Tag this Judgment!
Court : Chennai
Decided on : Dec-02-2006
Reported in : 288ITR225(Mad)
..... was submitted that, therefore, there was no merit in the challenge to the constitutionality of the impugned provision. 34. the relevant provisions of the income tax act, 1961 are extracted hereunder:section 139 of the income tax act reads thus :return of income. 139.(1) every person, - (a) being a company or a firm; or(b) being a person other than a company or a firm, if ..... abuse of process of law, it is for the legislature to amend, modify or repeal it, if deemed necessary. the words 'in due time' occurring in section 276cc of the income tax act were interpreted in this decision and it was held that even if a return is filed in terms of sub-section (4) of section 139, that will not dilute the ..... while conceding that there was a shift with regard to the burden of proof, it should be seen that the offences under the income tax act are quite different from the offences under the penal code or like legislations. the income tax act imposes on the petitioners a mandatory obligation to discharge certain duties or to respond to notices etc., and failure to comply with these ..... furnished under section 139.(2) the assessing officer shall, before issuing any notice under this section, record his reasons for doing so. section 276cc of the income tax act reads thus :failure to furnish returns of income. 276cc. if a person wilfully fails to furnish in due time the return of fringe benefits which he is required to furnish under sub-section (1) of .....Tag this Judgment!
Court : Chennai
Decided on : Jan-20-2006
Reported in : (2006)202CTR(Mad)243; 282ITR3(Mad)
..... in the assessee's business would not amount to a contract for carrying out any work as contemplated in section 194c. the term ' hire' is not defined in the income tax act. so, we have to take the normal meaning of the word 'hire'. normal hire is a contract by which one gives to another temporary possession and use of the ..... present case. he further submitted that section 194c was amended with effect from 01.07.1995 incorporating the explanation. this explanation clarifies the existing provisions of section 194c of the income tax act, and therefore it would be applicable retrospectively. further it is also submitted that the carriage of goods and passengers was included within the expression 'work'. therefore, the carriage of ..... tax under section 201(1) of the income tax act and also levied interest under section 201(1a) of the income tax act. aggrieved by the said order, the assessee filed an appeal to the c.i.t. (appeals) and submitted that the agreement ..... hired ships pertaining to other shipping companies. the assessee had paid hire charges to the other shipping companies for using their ships. the assessee, however, did not deduct tax under section 194c of the income tax act before making payment of hire charges to the shipping companies. therefore, the assessing officer treated the assessee in default and directed the assessee to pay the .....Tag this Judgment!
Court : Chennai
Decided on : Feb-07-2006
Reported in : (2006)202CTR(Mad)560; 284ITR93(Mad)
..... could have the case referred to a full bench of the tribunal consisting of three or more members for which there is provision in the income-tax act itself.9. in the light of the aforesaid decision of this court, it is clear that the tribunal completely erred in coming to the ..... also dealing with purchase and sale of government securities. the profit and loss on the sale of government securities had been assessed as business income/loss under the income tax act. the assessee bank has always been treating government securities as stock in trade. it is further brought to our notice that whenever there ..... value of the securities, at the end of each accounting year, the same had been claimed as deduction/offered as income of the relevant year, while computing income taxable under the income tax act. there is no change of method of accounting of the securities since the assessment year 1976-77. it is also ..... whereas for the same period of time the appellant had been valuing the very same investment 'at cost or market value whichever is lower' for income-tax purposes. that practice was accepted by the department and there was no justifiable reason for not accepting the same. from the form of the prescribed ..... light of the reality of the situation; (6) under section 145 of the act, in a case where accounts are correct and complete but the method employed is such that in the opinion of the income-tax officer, the income cannot be properly deduced there from, the computation shall be made in such .....Tag this Judgment!
Court : Chennai
Decided on : Feb-21-2006
Reported in : (2006)204CTR(Mad)72; 283ITR254(Mad)
..... particulars at that time, the mere fact that he subsequently rectified the omission by giving the full particulars would not avoid the applicability of section 28(1)(c) of the income-tax act, 1922. 6. this court also held that the provision for penalty would be attracted if there had been a deliberate concealment of particulars in any return, and when the original ..... could not adduce proof. 2.2. in the previous years relevant to the assessment years, the assessee filed revised returns before the issue of notice under section 148 of the income-tax act, 1961 which was accepted by the assessing officer, but the assessing officer levied penalty on the ground that the assessee filed revised returns only after the search that took place ..... acceptance of revised order itself cannot be a bar for initiating penalty proceedings under section 271(1)(c) of the act against the assessee for concealment of income. in the same judgment, this court, citing the judgment of this court in commissioner of income-tax v. c. ananthan chettiar : 273itr401(mad) , held that the when the assessee had offered no explanation except to ..... ; and (ii) whether the assessee has acted bona fide and honestly filed the revised returns with a view to purchase peace.5. it is relevant to mention that in similar circumstances, this court by judgment dated 1.2.2006 in t.c.no.112 of 2000, etc. batch (m. sajjanraj nahar v. the commissioner of income tax, coimbatore) has elaborately considered the above .....Tag this Judgment!
Court : Chennai
Decided on : Feb-01-2006
Reported in : (2006)204CTR(Mad)53; 283ITR230(Mad)
..... from liability to have any penalty inflicted upon him. that, it seems to me, is to put a premium on dishonesty and nowhere in the income-tax act do we find any provision which does anything of the kind. the contention that this was a discovery within the meaning of section 22(3) is ..... of penalty under section 271(1)(c) of the income tax act?6.1 in this regard, it is apt to refer section 271 of the income tax act, 1961 and the corresponding section of the income tax act, 1922, viz., section 28, which read as under:section: 271 of the income tax act, 1961section 271. failure to furnish returns, comply with ..... circumstances of the case the tribunal was correct in law in sustaining the levy of penalty under section 271(1)(c) of the income tax act?(ii) whether on the facts and in the circumstances of the case, the tribunal has any material to hold that the assessee in filing the ..... notices, concealment of income, etc.-(1) if the assessing officer or the commissioner (appeals ..... dated 9.3.1990, the assessing officer initiated penalty proceedings under sections 271(1)(c) and 273(2)(a) of the income tax act, as proposed and called for explanation from the assessee.2.6. even after the receipt of the notice issued under section 271(1)(c) of the .....Tag this Judgment!