Meaning of Works Contract
As per Section 2(119) of CGST Act “works contract” means a contract for
Where Whole amount of sale consideration was taxed by the Assessing Officer as capital gains without giving assessee any benefit with regard to cost of acquisition or cost of construction because the assesse could not prove the expenditure.
Held by ITAT that It can be nobody’s case that the assessee had acquired the property without paying any cost. Some value for cost of acquisition has to be given to the assessee. Even in cases of properties acquired through gifts, etc. the cost of acquisition as incurred by the previous owner is given to the assessee.
Nand lal Popli [2016] 71 taxmann.com 246 (Chandigarh – Trib.)]
Keeping or preparing a cash flow statement cannot be considered as keeping the books of account.[Para 15 of Judgement in case of Nand lal Popli [2016] 71 taxmann.com 246 (Chandigarh – Trib.)]
Under Section 44AD, 8% of Income is presumed to be Income of the assesse. Hence automatically 92% shall be presumed to be expenditure of the assesse.[ITAT Chandigarh in Nand lal Popli]
Under Section 44AD, 8% of Income is presumed to be Income of the assesse. Hence automatically 92% shall be presumed to be expenditure of the assesse. Now, if assesse through his cash flow is not able to prove expenditure of 92%, but is able to substantiate much lesser expenditure, whether AO can invoke section 69C saying that source of balance expenditure [92%- Actual Expenditure] is not satisfactorily explained especially when section 44AD does not over ride section 69C. Continue reading “Under Section 44AD, 8% of Income is presumed to be Income of the assesse. Hence automatically 92% shall be presumed to be expenditure of the assesse.[ITAT Chandigarh in Nand lal Popli]”
CBDT clarifies the issue whether a person born on 1st April can be said to have completed 60/80 years of age on 31st March and there fore whether such person is entitled to higher exemption limit of Rs. 3,00,000/5,00,000 respectively.
CBDT considered Supreme Court Judgment in Prabhu Dayal Sesma on general rules to be followed for calculating age of a person. As per Court for a person born on certain day , day shall start from 12’O clock midnight and there fore the person attains specified age on his anniversary at 12’O clock of preceeding day.
Assessee who was reflecting income under head Income from House property and therefore could not claim maintenance charges of Rs. 3.20 crore allowed to change the head of Income by filing revised computation of Income before AO by ITAT Mumbai in Peepul Tree Properties (P.) Ltd. [2016] 71 taxmann.com 332 (Mumbai – Trib.) MAY 20, 2016
ITAT in para 5.4 of the Judgement said that:
“……..there is no dispute on the proposition that tax liability of assessee has to be determined strictly in accordance with law. But a claim can be allowed to assessee which is valid as per law and made by the assessee in accordance with law and in a complete and rightful manner. In case the assessee wants its income to be assessed under different head as per the provisions of law, then, the minimum duty expected from the assessee is to at least file a revised computation sheet of income offering the income in proper heads and making appropriate claims against each and every head separately. This exercise is not expected to be done by the AO on behalf of the assessee. But nonetheless, with a view to meet the ends of justice and in view of these peculiar facts and circumstances of the case, we find it appropriate to give an opportunity to the assessee to file revise computation sheet of income before the AO making out its claim in an appropriate and complete manner………..”
Prepayment charges and processing fee are allowable under section 24(b) as Interest from Income under head “Income from House property”[Peepul Tree Properties Mum Trib]
Definition of Interest u/s 2(28A) includes any service fee or other charge in respect of moneys borrowed or debt incurred or in respect of any credit facility which has not been utilized.
Hence both the prepayment charges and processing fee are allowable under section 24(b) as Interest from Income under head “Income from House property”
ITAT Mumbai followed :
- Pentagram Properties Pvt. Ltd. DCIT (ITA No.3713/M/2010) dated 12th August 2011
- Windermere Properties (P) Ltd. DCIT (34 taxmann.com)
- CIT Gujarat Guardian Ltd. (177 Taxman 434, Delhi)
Peepul Tree Properties (P.) Ltd. [2016] 71 taxmann.com 332 (Mumbai – Trib.) MAY 20, 2016
TDS Notice after expiry of limitation period extended subsequently
Period of Limitation u/s 201(3) for passing an order treating deductor as assesse in default and charging interest for delayed payment of TDS for Financial year 2007-08 was confined to 31-03-2011 and it was was later albeit increased to seven years from the end of financial year in which TDS was deposited w.e.f. 01-10-2014.
Delhi High Court in case of Oracle India P Ltd. Held that since notice for financial year 2007-08, after 31-03-2011 was time barred even if later on law increased the period of limitation.
ITAT Amritsar in Karanvir Verma ITA 352/ASR/2014 pronounced on 18-05-2016, has held that issue of notice u/s 148 by the AO merely on the basis of the information from the Investigation Wing, and without independent application of mind by the AO to the material before him is not tenable in the eyes of law.
In this case, Investigation Wing had started inquiry against the assesse on the basis of unsigned photocopy of bayana.
Delhi High Court in SFIL Stock Broking Ltd 325 ITR 285 relied upon which promulgated that notice u/s 148 can not be issued on the basis of borrowed satisfaction .
Date of allotment of flat/property and not date of identification of flat or possession of flat or date of registration of flat is relevant to determine the period of 36 months for computation of long term capital gain
Madhu Kaul ITA 89/1999 dated 17-01-2014 (P&H)
Vinod Kumar Jain ITA 140/2000 dated 24-09-2010 (P&H)
Ved Parkash and sons (HUF), (1994) 207 ITR 148 (P&H)