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PCIT vs. Ami Industries (India) P Ltd (Bombay High Court)
S. 68 Bogus share capital: The identity of the investors were not in doubt. The assessee had furnished PAN, copies of the income tax returns of the investors as well as copy of the bank accounts in which the share application money was deposited in order to prove genuineness of the transactions. In so far credit worthiness of the creditors were concerned, the bank accounts of the investors showed that they had funds to make payments for share application money. The assessee was not required to prove source of the source. Nonetheless, the inquiries through the investigation wing of the department at Kolkata proved source of the source (PCIT vs. NRA Iron & Steel 412 ITR 161 (SC) distinguished) In NRA Iron & Steel (P) Ltd (supra), the Assessing Officer had made independent and detailed inquiry including survey of the investor companies. The field report revealed that the shareholders were either non-existent or lacked credit-worthiness. It is in these circumstances, Supreme Court held that the onus to establish identity of the investor companies was not discharged by the assessee. The aforesaid decision is, therefore, clearly distinguishable on facts of the present case
Bhavya Construction Co vs. ACIT (Bombay High Court)
S. 254(1): This manner of disposing appeals by the Tribunal is not expected of it and cannot stand to the scrutiny of law and justice. The Tribunal cannot refer to decisions on its own without giving the litigant an opportunity to distinguish it. This results in a breach of the principles of natural justice. It also cannot omit to deal with the decisions relied upon by the litigant. Not dealing with the cited decisions leads to the order being bad as an order without reasons The basic grievance of the Appellant is that the impugned order of the Tribunal has been passed in breach of principles of natural justice. This for two reasons, one the decisions relied upon by the Tribunal of its own (not cited at the bar) in the impugned order were not brought to the notice of the Appellant at any time, before the passing of the impugned order. This resulted in order adverse to the Appellant without the Appellant having an opportunity to address the Tribunal on the inapplicability of the decisions to the facts of this case. Thus, in effect an order without hearing
PCIT vs. ITAT (Bombay High Court)
S. 254(2): The limitation of six months for filing a rectification application was substituted by the Finance Act, 2016 w.e.f. 01.06.2016. Therefore, for assessment years prior thereto, the limitation period may be construed to be four years from the date of the order. Even otherwise, if the view is taken that the limitation period is six months, it is sufficient if the application is filed before that date. It is not necessary that the order has to be passed before that date. The assessee or AO can only bring the mistake to the notice of the Tribunal but have no control over the Tribunal. Neither party can be made to suffer for the inability of the Tribunal to pass an order within the limitation period (All judgements referred) The use of the expression "may" in the aforesaid provision is clearly indicative of the legislative intent that the limitation period of six months from the end of the month in which the order was passed is not to be construed in such a manner that there can not be any extension of time beyond the said period of six months. This is so because the assessee or the Assessing Officer can only bring the mistake to the notice of the Tribunal. The assessee or the Assessing Officer has no control over the Tribunal. For one reason or the other, the Tribunal may not be in a position to pass the order under Section 254(2). For the inability of the Tribunal to pass such an order within the period provided, neither the assessee nor the revenue should suffer. What therefore becomes relevant is that the assessee or the Assessing Officer should bring the mistake to the notice of the Tribunal within the limitation period
Gaurav Triyugi Singh vs. ITO (Bombay High Court)
S. 68 Cash Credits: The assessee is only required to explain the source of the credit. There is no requirement under the law to explain the source of the source. The fact that the source of the source is suspect and that the creditor had no regular source of income to justify the advancement of the credit to the assessee does not mean that an addition can be made in the hands of the assessee (Veedhata Tower 403 ITR 415 (Bom) followed) Section 68 of the Act has received considerable attention of the courts. It has been held that it is necessary for an assessee to prove prima facie the transaction which results in a cash credit in his books of account. Such proof would include proof of identity of the creditor, capacity of such creditor to advance the money and lastly, genuineness of the transaction. Thus, in order to establish receipt of credit in cash, as per requirement of section 68, the assessee has to explain or satisfy three conditions, namely : (i) identity of the creditor; (ii) genuineness of the transaction; and (iii) credit-worthiness of the creditor
33 ITAT Members To Go On Tour (Many Benches May Not Function)
According to an order dated 4th February 2020 issued by Justice P. P. Bhatt, the Hon'ble President of the ITAT, 33 Members are stated to be attending the National Seminar at the National Judicial Academy, Bhopal. The implied consequence of this is that several Benches of the ITAT may not function, or may function in multiple shifts, during the period that the Members are on tourDownload The Direct Tax Vivad se Vishwas Act, 2020
The Direct Tax Vivad se Vishwas Bill, 2020 is proposed to be introduced for dispute resolution related to direct taxes. The Bill is available for download See Also: Digest of case laws (updated regularly) containing latest judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
The Finance Bill 2020 was presented in Parliament on 1st February 2020. A copy of the same is available for download
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