Search Results For: Assessment


QUERY: An assessee makes a claim for deduction through a letter during the course of assessment proceedings. The claim is not allowed in assessment and also in appeals. The AO levied penalty under section 271(1)(c) of the Act. Whether penalty is leviable when claim has been specifically made during the course of assessment proceedings even if claim was not allowed at any stage?
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The Orissa High Court in Orissa Rural Housing Development Corporation Ltd. v. ACIT [343 ITR 316] has held

“Law is well settled that when the statute requires a certain thing to be done in a certain way, the thing must be done in that way or not at all. Other methods or modes of performance are impliedly and necessarily forbidden.

QUERY: Whether penalty under section 271(1)(c) of the Act can be levied in a case where tax has been paid by the assessee under section 115JB of the Act and amount of tax payable as book profit is the same even as per order of assessment, with reference to variation in the amount of loss or income determined as per normal provisions of the Income-tax Act?
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In CIT v. Nalwa Sons Investments Ltd., [327 ITR 543 (Del.)] the facts were the assessee filed return declaring loss of Rs. 43.47 crores. Thereafter, the revised return exhibiting the income at Rs. 3.87 crores were filed under provisions of section 115JB

QUERY: An Assessee, inadvertently due to mistake of Law, made a wrong Choice of option in computing the Long Term Capital Gains on Sale of Ancestorial House Property by deducting from the Sale Price, the value of the House Property as on 1-4-1981 as per the Valuation Report and paid Tax @10%.

The Learned Assessing Officer completed the Assessment under Section 143(1) of the Income-tax Act, 1961, and made demand for interest under Section 234B and Section 234C of the Income-tax Act, 1961.

Then, it was discovered that, had the Assessee deducted the indexed value of the House Property from the Sale Proceeds and paid Tax @ 20%. There would have been substantial Refunds.

The Assessee made an Application under Section 154 of the Income-tax Act, 1961, for rectification of the mistake of law committed by the Assessee in making wrong choice because of ignorance, which was rejected by the Learned Assessing Officer.

The Learned Commissioner of Income Tax (Appeals) also rejected the Assessee’s Appeal on the grounds that, that mistake would have been rectified by submitting a Revised Return. Since the time for filing of Revised Return of Income has expired, the Assessee has no remedy.

May we request you to suggest the Remedy in this particular situation, as per the Spirits and Legislations and Departmental Circular No. 14(XL 35) of 1955 dated 1-4-1955, which both the Assessing Officer as well as the Learned Commissioner of Income Tax (Appeals) rejected on the grounds that, the Circular being issued prior to 1961, is obsolete under what provisions of law CBDT may be approached for granting the relief.

I shall appreciate your considered response, at an early date.
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From the facts it is not clear for which assessment year the intimation was issued under section 143(1) of the Act and whether assessment under section 143(3) is pending or not? Further date of intimation is also not mentioned.

QUERY: Nowadays, no action is taken on intimation for partition u/s. 171(1)? Can the assessee presume that his application has been accepted or would be make any difference?
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S. 171(3) of the Act mandates that on a claim being put forward under this section, the Assessing Officer shall hold an enquiry. Such enquiry shall be made as part of assessment proceedings. On completion of the enquiry

QUERY: Can the A.O. issue demand notice for the penalty levied by J.C., though the order was passed by Jt. CIT/Dy. CIT.
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Yes, there is no restriction. S. 156 of the Act, clearly provides that when any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, Assessing Officer shall serve upon the assessee

QUERY: AB & Co., is a partnership firm having two partners A & B. In April, 2011 search u/s. 132 was conducted on both A & B partners, while survey u/s. 133 was conducted on AB & Co. Some unaccounted sale bills of AB & Co. relating to financial year 2010-11 were found at residence of A. Notice u/s. 153C dated October, 2013 was served on AB & Co. for previous six years. AO has added total of all sale bills found at residence of A in the total income of AB & Co., in financial year 2010-11.

a) Whether notice u/s. 153C issued to AB & Co., in October, 2013 is valid or time barred?

b) Whether total sale bills (and not G.P.) added is proper?
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Section 153B provides time limit for completion of assessment under section 153A. Time limit for completion of assessment for all seven years i.e. preceding six years and the year of search, is two years from the end of the financial year in which last of the authorisation for search under section 132

QUERY: Mr. “A’ a practising Advocate received a notice under section 143(2) of the Act, for the assessment year 2007-08 , after the expiry of twelve months from the end of the month in which return was furnished. The Assessing Officer passed the assessment order under section 143(3) of the Act, on the basis of second proviso to section 143(2) r.w.s. 292BB on the ground that these are procedural provisions, hence, they have retrospective effect.
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Similar question arose before the Special Bench in Kuber Tobacco Products Pvt. Ltd. vs. DCIT, [28 SOT 292 (Del.) (SB)], wherein the Hon’ble Tribunal held that section 292BB is substantial provision. Initiation of assessment proceeding require issuance of under section 143(2) which is a right vested in the assessee and the said right has been taken away by the provision of section

QUERY: Can an assessment be made subject to receipt of the report of the DVO? If Yes, whether recourse has to be taken of section 154 or 148 or section 263?
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The Calcutta High Court in Saharanpur Light Railway Co. Ltd. vs. CIT [208 ITR 882] has observed that the Assessing Officer loses his power in the matter of valuation only when the Valuation Officer makes a report, the power of valuation has to revert to the Assessing Officer, unless the Valuation Officer sends his report, there is no bar on the Assessing Officer’s