1.   COMMISSIONER OF INCOME-TAX, KANPUR V. SHRI RAJEEV SETH, KANPUR, INCOME TAX APPEAL NO. 150 OF 2001, DATE OF ORDER : 22.12.2010, HIGH COURT OF ALLAHABAD

 The delay in filing the partners return on the ground that there was delay in finalization of firm's account, was held sufficient for not imposing penalty u/s 271(1)(a) of I.T. Act. A Division Bench of Madhya Pradesh High Court has held that under Section 271 of the Income Tax Act, the authorities have discretion to impose or not impose penalty. If is it found that there is only a technical or venial breach of the law or that it would be unjust to impose penalty, the authorities may exercise their discretion in favor of the assessee by not imposing penalty. It is settled law that penalty is an additional tax and in a case where the only source of the partner is income from the firm and the firm has been imposed penalty for not filing the return in time under Section 271 (1) (a) of the Income Tax Act, 1961, then that will amount to imposing a penalty on the partners and the partners again cannot be penalized under Section 271 (1)(a) of the Act for not filing the return within reasonable time. 

(Please click here for judgment)  

  

2.   CIT VS. KRISHI UTPADAN MANDI SAMITI.DATE, INCOME TAX APPEAL NO. (58) OF 2010, DATE OF ORDER : 2.12.2010, HIGH COURT OF ALLAHABAD 

Under the Mandi Act, the Samitis collects mandi shulk as well as 'development cess'. They are required to send 50% of the mandi shulk and the entire development cess to the Board under sub sections (5) and (6) of section 19 of the Mandi Act. The only question is, whether the aforesaid amount is the money spent or not so as entitle the Samitis to claim allowance. Under the Mandi Act, the Board has overriding title. The amount sent to the Board is utilisation and application the money received by Samitis. They are entitled to claim exemption / allowances of the same. The amount sent by the Samitis to the Board under the Act (namely 50% of the Mandi Shulk as well as development cess) to the Board is utilization of the amount collected by the Samitees and it is proper application of the money; there is no illegality in the order of the Income Tax Appellate Tribunal and Commissioner (Appeals). 

(Please click here for judgment) 

   

What's New

• Circular No. 10/(RE-2010) 2009-14 - Provision of additional facility for filing Importer Exporter Code (IEC) applications “on-line”  (Click for detail)

• Circular No. 9/(RE-2010) 2009-14 - Conditions and modalities for registration of contracts of cotton with DGFT  (Click for detail)

• Notification No. 15(RE–2010)/2009-2014 - Corrigendum to Notification No . 14(RE-2010)/2009-14 dated 22.12.2010 regarding export of cotton yarn  (Click for detail)

• Notification No. 102/2010-Customs - Exchange Rate for imported goods is Rs 45.60 per US Dollar and Rs 60.65 per EURO-Exchange Rate for export goods is Rs 44.70 per US Dollar and Rs 59 per EURO  (Click for detail)

• Notification No. 103/2010-Customs - Tariff Value for import of Brass Scrap is 4320 and for poppy seeds 3445  (Click for detail)

• Notification No. 104/2010-Customs - Madurai Port notified for unloading of baggage & loading of baggage  (Click for detail)

• Instruction No. 73 - Creation of Single Window Mechanism for granting various statutory approvals under Environmental and Regulation  (Click for detail)

• SEBI : Master Circular on Administration of Stock Exchanges, Arbitration in recognised Stock Exchanges and Stock Exchanges/trading platform for Small & Medium Enterprises including guidelines for Market Makers  (Click for detail)

• SEBI : Master Circular for Stock Exchange - Cash Market  (Click for detail)

• Bank Account Numbers Sole Criteria for E-fund Transfers  (Click for detail)

• Govt Plans to Exempt Factoring Services from Stamp Duty, to Introduce Bill Soon  (Click for detail)

• Auditors Selection Process Irks ICAI  (Click for detail) 

      

    

"Health is the greatest gift, contentment the greatest wealth, faithfulness the best relationship"

    

Thanks for your valuable time 

"Voice of CA"

CA. Sanjay Kumar Agarwal, Founder - Voice of CA
Member  Central Council - ICAI
Former Chairman - NIRC
Mob : 9811080342, agarwal.s.ca@gmail.com  
    
   
CA. Sidharth Jain, Co-Moderator
sidhjasso@yahoo.com 
  
CA. Mukesh K Bansal, Co-Moderator-FEMA
Mob:9540022533, mukbansal80@gmail.com