1. CIT Vs. M/s Vikas Chemicals, I.T.A No. 11/2002, Date of Order: 07/08/2014, Delhi High Court
Whether fine paid under Customs Act, 1962 is an allowable expenditure under Income Tax Act, 1961?
Held Yes
Assessee
a partnership firm is engaged in manufacturing of organic chemical paid
fine of Rs. 45,00,000/- under Customs Act, 1962 as directed by Supreme
Court. He claimed same amount as an expenditure U/s 37 of IT Act.
Revenue contained that the fine paid by assessee was in nature of
penalty and same is deemed not to be incurred for purpose of business.
Hon`ble
High Court held that fine paid was not in nature of penalty. The
assessee was not to be blamed and has not indulged in any offence or
incurred any expenditure for the purpose, which is prohibited by law.
The assessee had to pay redemption fine in order to save and protect
themselves and in terms of the order passed by the Supreme Court. Hence
appeal is allow in favor of assessee.
(Please click here for judgment)
2. M/s SMAA Trade Invest P. Ltd. Vs. The Commissioner of Income Tax, I.T.A. No. 7531/Mum/2012, Date of Order: 30/07/2014, ITAT - Mum
Whether
assessee can maintain two separate portfolios, one relating to
investment in shares and another relating to business of dealing in
shares.
That It
was open to the assessee to maintain two separate portfolios, one
relating to investment in shares and another relating to business of
dealing in shares. CIT v/s Gopal Purohit [2011] 336 ITR 287 (Bom),
followed. There should be uniformity in treatment given to transactions
in shares and the rule of consistency should be followed when facts and
circumstances for different years are identical. And therefore following
CIT v/s Gopal Purohit AO is directed to accept the claim of the
assessee for Short Term Capital Gain on sale of shares.
Whether
penalty u/s 271(1)(c) could be imposed with reference to addition that
would have been made while making assessment under normal procedure.
Where an assessment was made on income computed u/s115JB and tax had
been paid on income so computed ?
As
pointed by the ld. Counsel for the assessee from the relevant assessment
order passed by the AO, even after making the corresponding addition in
respect of which the impugned penalty is imposed, the total income of
the assessee as computed as per the normal provisions of the Act was
less than the book profit computed u/s 115JB and the assessee thus was
finally assessed for the year under consideration on the basis of book
profit as per the section 115JB of the Act. In the case of CIT vs. Nalwa
Sons Investment Ltd. [2010] 194 Taxman 387, Hon’ble Delhi High Court
had held that when assessment was made on income computed u/s115JB and
tax had been paid on income so computed, penalty u/s 271(1)(c) would not
be imposed with reference to addition that would have been made while
making assessment under normal procedure.
(Please click here for judgment)
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