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III. Useful Case Laws:
1. ACIT Vs. M/s A.R. Enterprises, Civil Appeal No. 3127 of 2006, Date of Judgment: 14-01-2013, Supreme Court of India
Issue:
Whether the
payment of Advance Tax for the relevant assessment year is tantamount to
disclosure of income for the purpose of application of Chapter XIVB of
the Act?
Held:
Payment of
Advance Tax reflects the intention of the assessee to disclose its
income, it could result in a situation where the mandatory obligation of
filing a return for disclosure of income under the provisions of the
Act, would not be necessary. It will be open to an assessee to contend
that payment of Advance Tax is tantamount to disclosure of income. Such a
proposition would be contrary to the very purpose of filing of return,
which ultimately leads to assessment of total income for the relevant
assessment year. Any anomaly in the return entails serious consequences,
which may not otherwise be attracted on estimation of income for the
purpose of payment of Advance Tax. It would thus, be difficult to accept
the plea that payment of Advance Tax is tantamount to the disclosure of
income or that it indicates the intention of the assessee to disclose
income.
(Please click here for judgment)
2. Headstrong Services India Pvt. Ltd., Vs. ACIT, I.T.A No. 5466/Del/11, Date of Order: 17-07-2012, ITAT- Delhi
Transfer Pricing Assessment without obtaining Assesses objections not valid
It is held
that it was incumbent on the AO to supply the information to the
assessee, obtain its objections, if any, and pass order after taking
into account the information and the objections of the assessee. This
has not been done in respect of 20 comparables. Therefore, the matter of
transfer pricing adjustment is restored to the file of the AO with a
direction to supply whatsoever information he wants to use against the
assessee to it, grant it reasonable opportunity of being heard and
decide the matter de-novo.
(Please click here for judgment)
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