Once Acquired Watch Dog may become Mandate for 5 years

(AUDITORS PROVISIONS AS PER COMPANIES ACT, 2013)

As we bit aware of the fact thatappointment of auditor shall be made by members at First AGM and as per the new regulations of the companies act every subsequent appointment shall be made at 6th AGM. Company shall intimate the auditor about appointment. After intimating, company shall obtain written consent and certificate (in accordance with the conditions prescribed in section 141) from auditor. Then, company is required to file a notice with the registrar about the appointment within 15 Days of the meeting.

Capital assets would retain their status quo even on conversion of agricultural land into non-agricultural

Merely because co-owners applied for conversion of agricultural land into non-agricultural land and land was sold within 2½ years, it could not be said that land was for business purpose because in case of investment also, same could equally happen

For purpose of computing capital gains, only allowable deduction is cost of property along with cost of improvement and transfer; no deduction is allowable for payment to any third parties

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[2013] 40 taxmann.com 98 (Ahmedabad - Trib.)

IN THE ITAT AHMEDABAD BENCH 'C'

Assistant Commissioner of Income-tax, Circle-3

v.

Mohanbhai N. Turakhiya*

Happy New Year to all

Where assessee made wrong claim for loss on sale of US-64 units, but disclosed same in return, there was no concealment of income

[2013] 40 taxmann. com 86 (Bombay)

HIGH COURT OF BOMBAY

Commissioner of Income-tax - 14, Mumbai

v.

Nalin P. Shah (HUF)*

Section 271(1)(c), read with section 10(33) of the Income-tax Act, 1961 - Penalty - For concealment of income [Disallowance of claim, effect of] - Assessment year 2004-05 - Assessee claimed loss on sale of US-64 units and filed a note of computation with return - Assessing Officer disallowed loss as income from sale of US-64 units is exempt under section 10(33), loss on same is not allowable - Assessing Officer also imposed penalty for concealment of income under section 271(1)(c) - Whether, where assessee made wrong claim for loss on sale of US-64 units, but disclosed same in return, there was no furnishing of inaccurate particulars or concealment of income and penalty was to be set aside - Held, yes [Para 6] [In favour of assessee]

HC allows deduction of sales tax liability on its conversion into a loan

Where sales tax liability was converted into a loan within relevant previous year, assessee was entitled to claim deduction for same

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[2013] 40 taxmann.com 111 (Delhi)

HIGH COURT OF DELHI

Commissioner of Income-tax

v.

Minda Wirelinks (P.) Ltd.*

Section 43B of the Income-tax Act, 1961 - Business disallowance - Certain deductions to be allowed only on actual payment [Sales tax] - Assessment year 2003-04 - Whether where sales tax liability was converted into a loan within relevant previous year, assessee was entitled to claim deduction for same - Held, yes [Para 1] [In favour of assessee]

Sec. 264 revision was not to be allowed automatically even if it was not decided by CIT within stipulated period

If a revision has not been decided by Commissioner with in stipulated period, it does not mean that revision stands allowed

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[2013] 40 taxmann.com 110 (Allahabad)

HIGH COURT OF ALLAHABAD

Uttam Modern Rice & Oil Mill

v.

Union of India*

Gorgeous Gift; Gift can't be treated as unexplained if assessee hasn't filed return which he isn't liable to file

Where assessee had submitted balance-sheet before Assessing Officer and in balance-sheet closing balance or cash in hand was disclosed and entries in balance-sheet had not been disputed by Assessing Officer, opening balance could not be regarded to be undisclosed income

Where assessee was filing his return regularly, non-filing of return for assessment year in question on ground that after allowing deduction under Act income remained below taxable limit could not be a good ground to hold income as undisclosed income for block period

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[2013] 40 taxmann.com 162 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

Commissioner of Income-tax

v.

V.P. Singh*

HC slams CIT(A) for seeking huge demand from assessee without hearing its request on merits

Where Commissioner (Appeals) did not deal with submission of assessee that on reconstruction, benefit arose on capital account, and directed assessee to deposit major part of demand, same could not be complied till application be heard on merits

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[2013] 40 taxmann.com 112 (Bombay)

HIGH COURT OF BOMBAY

Idea Cellular Ltd.

v.

Union of India*

HC upholds sec. 40A(3) disallowance on assessee's failure to prove that suppliers insisted on cash payments

Where assessee's claim that suppliers of goods invariably insisted on spot payment of cash to lorry drivers was not supported with any evidence, cash payments attracted provisions of section 40A(3)

[2013] 40 taxmann.com 107 (Andhra Pradesh)

HIGH COURT OF ANDHRA PRADESH

Commissioner of Income-tax

v.

Singamsetty Subba Rao*

Granting less than 24 hours to reply to show-cause notice is a flaw in decision making process; assessment quashed

Justice must not only be done but appear to be done. Allowing assesses less than 24 hours to respond to show cause notice calling upon assessee to show cause as to why claim for deduction under section 80-IA shouldn't be disallowed particularly when there is no fear of the assessment getting time barred in the near future is a flaw in the decision making process and therefore amenable to judicial review. In such circumstances, it is incumbent upon the notice issuing authority to grant reasonable opportunity to the petitioner to respond to the notice. Therefore, High Court will not refrain from quashing assessment and allowing assessee's writ petition merely because assessee has alternative remedy to appeal to CIT(Appeals)