Recent Updates as on 05.04.2011 

1.   COMMISSIONER OF INCOME TAX Vs. GOVIND NAGAR SUGAR LTD, ITA NO. 164/2008, DATE OF ORDER : 25.03.2011, DELHI HIGH COURT

(a)   Whether ITAT was correct in law in holding that for carried forward of unabsorbed depreciation, it was not necessary that the return should have been filed with in the time allowed under section 139(1) read with section 139(3) of the Income Tax Act?

(b)   Whether ITAT was correct in law in holding that the provisions of section 80 of the Income Tax Act do not apply to unabsorbed depreciation covered by section 32(2) of the Act?

Judgment

From the above, it comes out that the effect of Section 32(2) is that unabsorbed depreciation of a year becomes part of depreciation of subsequent year by legal fiction and when it becomes part of current year depreciation it is liable to be set off against any other income, irrespective of the fact that the earlier years return was filed in time or not.

(Please click here for judgment)

  

2.   THE COMMISSIONER OF INCOME TAX – VI Vs. THREE DEE EXIM PVT. LTD., I.T.A. NO.1604/2010, DATE OF DECISION: 25.03.2011, DELHI HIGH COURT

(a)    Whether ITAT was correct in law and on facts annulling the assessment framed by the AO under section 147/143(3) of the Act?

(b)    Whether ITAT was correct in law in holding that since notice u/s 148 had not been served upon the assessee and therefore, assessment framed by the AO was bad in law?

Judgment

That service of notice, a contemplated pre-condition before assessment would be a question of fact depending upon the facts and circumstances of each case. In the present case, not only that no objection was raised with regard to non-issue of notice dated 27.03.2006, the assessee vide its letter dated 11th December, 2006 adopted the return as originally filed as the return in response to the said notice under Section 148. It was only thereafter that the AO proceeded with the reassessment proceedings. During the assessment proceedings, certain queries were raised to which the assessee gave detailed response. Even during the reassessment proceedings no objection was raised of any kind with regard to defect or irregularity in the notice. In a given situation, as in the present case when the assessee appears before the Assessing Officer and is given copy thereof before assessment and also makes correspondence and participates in the assessment proceedings, notice issued at old address available on record may constitute service of notice. In such circumstances, the service of copy of notice also would be service of notice within the ambit of Section 148(1) of the Act.

(Please click here for judgment)

  

What's New

• Service Tax Instructions - Amendments in Point of Taxation Rules, 2011 and other related provisions  (Click for detail)

• Amendment in Form 13  (Click for detail)

• CO. LAW-Filing of Balance Sheet and Profit and Loss Account in extensible Business Reporting Language (XBRL) mode  (Click for detail)

• ESI - Reduction of Coverage Limit w.e.f. 01.04.2011  (Click for detail)

• DGFT Circular No. 27 – Conditions and modalities for registration of contracts of cotton yarn  (Click for detail)

• Notification No. 25 - Tariff Value for import of Brass Scrap is 4297 & for Poppy seeds 2688  (Click for detail)

• Service Tax Liability Too Fixed At Invoice Stage  (Click for detail)  

     

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Member  Central Council - ICAI
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