Fwd: TaxGuru : “If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable” p

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From: TaxGuru.in - Daily Tax and Corporate Law Update <info@taxguru.in>
Date: Sun, Aug 7, 2011 at 10:19 AM
Subject: TaxGuru : "If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable" plus 6 more
To: palashbiswaskl@gmail.com

TaxGuru : "If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable" plus 6 more

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• If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable
• Interest paid by the assessee, on account of an investment in its sister concern from borrowed funds for the acquisition of shares in a subsidiary company in order to have control over that company, is eligible for a deduction under s 36(1)(iii)
• Expenditure incurred on the total reconditioning and overhauling of the machinery, which had outlived its utility, by replacing many vital parts in order to make the same functional cannot be treated as current repairs
• When the assessee is already granted exemption u/s 10(23C)(vi), the fresh application of exemption cannot be rejected
• Opportunity of being heard is required to be given to the director of the private limited company before initiation of recovery proceedings pursuant to the issuance of a notice under s 179(1)
• When assessee fails to rebut the addition made by the AO in respect of undisclosed income found during the search and also chooses not to file appeal against the huge quantum addition, penalty is warranted in such circumstances
• Expenditure incurred in foreign exchange is to be reduced from the total turnover while computing the deduction under s 10A

If there is no failure to disclose fully and truly all material facts necessary for the purpose of the assessment, then the reopening of the assessment beyond four years from the end of the relevant assessment year is unsustainable Posted: 06 Aug 2011 03:41 AM PDT Nihilent Technologies Private Limited V. DCIT & Anr. (Mumbai HC) - A division bench of the Bombay high court has quashed the reopening of the income tax assessment of Nihilent Technologies Ltd after four years. The software company had shares... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Interest paid by the assessee, on account of an investment in its sister concern from borrowed funds for the acquisition of shares in a subsidiary company in order to have control over that company, is eligible for a deduction under s 36(1)(iii) Posted: 06 Aug 2011 03:36 AM PDT CIT v Phil Corporation Ltd. & Anr. (High Court of Bombay) - interest paid on borrowings utilized for the purchase of shares in order to retain managing agency by the assessee company was held allowable as business expenditure. We find that the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expenditure incurred on the total reconditioning and overhauling of the machinery, which had outlived its utility, by replacing many vital parts in order to make the same functional cannot be treated as current repairs Posted: 06 Aug 2011 03:23 AM PDT Bharat Gears Limited v CIT (Delhi HC) -Only the expenditure incurred on repairs is on account of current repairs for which deduction would be admissible under Section 37(1) of the Act, it is not capital expenditure but revenue expenditure incurred... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When the assessee is already granted exemption u/s 10(23C)(vi), the fresh application of exemption cannot be rejected Posted: 06 Aug 2011 03:10 AM PDT Palam Jain Educational & Welfare Society Vs DGIT (Delhi HC) When the assessee is already granted exemption u/s 10(23C)(vi), the fresh application of exemption cannot be rejected in view of third proviso to section 10(23C)(vi) as the exemption... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Opportunity of being heard is required to be given to the director of the private limited company before initiation of recovery proceedings pursuant to the issuance of a notice under s 179(1) Posted: 06 Aug 2011 03:01 AM PDT Sanjay Ghai v Dy. CIT (Delhi HC) - Impugned order dated 14th November, 2007 is set aside with a direction that the petitioner or his authorized representative will appear before the Deputy Commissioner of Income Tax, Circle 7(1), New Delhi on 29th... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When assessee fails to rebut the addition made by the AO in respect of undisclosed income found during the search and also chooses not to file appeal against the huge quantum addition, penalty is warranted in such circumstances Posted: 06 Aug 2011 02:58 AM PDT Earth Castle Vs Dy. Commissioner of Income tax (ITAT Mumbai) - Imposition of penalty under s 271(1)(c) is sustainable if the assessee is unable to substantiate an explanation in relation to the addition made by the AO in respect of the undisclosed... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expenditure incurred in foreign exchange is to be reduced from the total turnover while computing the deduction under s 10A Posted: 06 Aug 2011 02:34 AM PDT Navayuga Infotech Private Limited VS DCIT (ITAT Hyderabad) - Expenditure incurred on foreign travel, spent in foreign exchange, is to be reduced from the export turnover for the purpose of the computation of the deduction under s 10A. Interest on... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

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Palash Biswas
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