Court : Income Tax Appellate Tribunal ITAT Chennai
Reported in : (2005)96TTJ(Chennai)637
..... the cit(a) in his order stated that finance act, 2001, levied tax at the rate prescribed in section 113 as well as surcharge for the asst. yr ..... he further noted that finance act, 2001, applied to income that had arisen during the previous year ending march, 2001. ..... because the investment in the property was treated as unexplained investment during the block period, the assessee claimed the loss to be set off against the income on the reasoning that even money paid by the assessee has been lost. ..... chapter xiv-b talks of undisclosed income. ..... the assessee submitted that because the income is being considered for the block period, the loss should be allowed which the cit(a) treated as capitalised loss ..... on that basis the loss suffered by the assessee consequent to the fraud played on the assessee is outside the ambit of chapter xiv-b of the act. ..... is an appeal of the assessee that is moved with reference to assessment that was framed under the provisions of chapter xiv-b of the it act.2. ..... , the ao treated it as an investment out of undisclosed income and for the asst. yr. ..... issue is with regard to addition on account of undisclosed income including such unexplained investment that are deemed as income of the assessee. ..... it were a situation where the unexplained investment is found to have been made from out of some other undisclosed income, perhaps, the assessee could have sought for telescoping of the unexplained investment as arising out of addition made on account of undisclosed income. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chandigarh
Reported in : (2007)104ITD408(Chd.)
..... it is also pertinent to mention that section 14a has been incorporated in the income-tax act, 1961 by the finance act, 2001 with retrospective effect from 1.4.72. ..... total income is defined under section 2(45) of the income-tax act as under: (45) "total income" means the total amount of income referred to in section 5, computed in the manner laid down in this act; in order to consider what is the total income of the assessee, effect has got to be given to all the provisions of the act including the deductions permissible under chapter via. ..... light of sections 66 and 110 was first to calculate the total income and the income tax thereon and secondly to ascertain the net profits in respect of activities on which income tax was not payable by setting off against the gross profits the proportionate amount of expenditure and then to determine the profits and gains from the taxable activities and thereafter from the income tax on the total income grant a rebate at the average rate of income tax on the amount on which no tax was payable. ..... on appeal to the supreme court, the hon'ble supreme court held as under: (i) affirming the decision of the high court, that since section 66 required the computation of the total income by including all income on which no income-tax was payable under chapter vii, the income on which no income-tax was payable by a co-operative society under section 81(i)(d) falling in chapter vii had to be necessarily included in its total income. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2006)5SOT1(Mum.)
..... the undisclosed income falling in this domain will suffer tax at normal rates as prescribed in the yearly finance act and also suffer interest and penalty as provided under sections 234a, 234b, 234c, 271(1)(c), 271b ..... (a) the assessment made under this chapter shall be in addition to the regular assessment in respect of each previous year included in the block period; (b) the total undisclosed income relating to the block period shall not include the income assessed in any regular assessment as income of such block period; (c) the income assessed in this chapter shall not be included in the regular assessment of any previous year included in the block period ..... respect of claim of allowance expenses or claim of exemption found false or incorrect as a result of search, it has been held in cit v.shamlal balram gurbani (2001) 249 itr 501 (bom) that such claims cannot be taxed under chapter xiv-b. ..... ravi kant jain (2001) 250 itr 141 (del), the hon'ble delhi high court, where after the, search operation, the assessing officer referred the seized material /regular books of account to special audit and such special auditor expressed his opinion about certain items of income, it was held that such income cannot fall under chapter xiv-b. in ..... danchand ghodawat (2001) 247 itr 448 (bom), hon'ble bombay high court held that unaccounted investment in any part of gold or silver articles and jewellery found during the course of search were disclosed in wt return, would not fall under chapter xiv-b. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Reported in : (2008)114TTJ(Ahd.)145
..... by the finance act, 2001 and finance act, 2002, tax exemption of certain bodies set up through an act of parliament was withdrawn. ..... it might be true that the policy of accounting the interest income was reviewed because nddb was made subject to tax under the provisions of it act and that the resolutions were passed subsequent to passing of finance act, 2002 but that by itself cannot be a ground for applying the provisions of section 145(3) r/w section 145(1) of the act to bring to tax, interest income pertaining to the period prior to financial year 2002-03 but actually received during the year. ..... learned counsel for the revenue, on the other hand, submitted that it does not say anything about the accrual of interest and, therefore, the interest accrued to the assessee by deposit of this money was its income and was rightly assessed by the revenue authority.clause 4 of the aforesaid letter which has been relied upon by the learned counsel only states that the funds released will not be treated as loan/grant ..... therefore, the assessees as well as the ao are expected to adopt correct rate of depreciation and correct wdv permitted under the provisions, which are based on the normal accepted norms of wear and tear of such assets. ..... , economic development of rural masses and improving their quality of life through co-operatives efforts as detailed in chapter iv of the nddb act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Madras
Reported in : (2007)105ITD623(Chennai)
..... 1st april, 1962 by the finance act, 2001 for the purposes of computing the total income under chapter iv and no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to such exempted income. ..... 23rd july, 2001 which reads as under: restriction on reopening of completed assessments on account of provisions of section 14aclarification regardingthe finance act, 2001, has inserted section 14a in the it act, 1961, wherein it was specifically provided that no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of total income under the act. ..... 11th may, 2001 and the relevant circular reads as under: 23, amendment of section 14a23.1 through the finance act, 2001, a new section namely 14a was inserted in the it act retrospectively w.e.f. ..... 23.2 through the finance act, 2002, a proviso to section 14a has been inserted so as to clarify that the ao shall not reassess the cases under section 147 or pass an order enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee under section 154, for any assessment year beginning on or before the 1st day of april, 2001. ..... for example, under section 10(33) of the act, dividend income was totally exempt from tax for the asst, yr. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (2004)83TTJ(Delhi)860
..... a new chapter xii-b containing section 115j has been inserted by the finance act, 1987 which levies minimum tax on book profits of certain companies ..... object and purpose of introducing the concept of mat (minimum alternate tax) is manifestly clear from the aforesaid circular as well as the speech of the finance minister which shows that the it authorities were unable to bring certain companies within the net of income-tax because these companies were adjusting their accounts in such a manner as to attract no tax or very little tax. ..... applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of april, 2001 shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this explanation; or" 9. ..... , as a result of various tax concessions and incentives certain companies making huge profits and also declaring substantial dividends, have been managing their affairs in such a way as to avoid payment of income-tax." 12. ..... is not the case of a company which has earned substantial profits whereas while making the assessment, assessed income has been brought down substantially on the basis of claiming exemptions and incentives. ..... 2001, declaring nil income. ..... 2001-02 assessee filed return of income on 16th oct .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Mumbai
Reported in : (2007)108ITD457(Mum.)
..... 25.2 through finance act, 2001, a new section 14a has been inserted so as to clarify the intention of the legislature since the inception of the income tax act, 1961, that no deduction shall be made in respect of any expenditure incurred by the assessee in relation to income which does not form part of the total income under the income tax act. ..... the scope and effect of the insertion of section 14a, with retrospective effect from 1-4-1962, in the income tax act by the finance act, 2001 have been explained in para 25 of circular no. ..... (*inserted as section 14a (without numbering) in the income tax act by the finance act, 2001 with retrospective effect from 1-4-1962. ..... section 14a has been inserted in the income tax act, section 11 of the finance act, 2001, with retrospective effect from 1-4-1962, i.e. ..... we are concerned with sub-section (1) (as originally inserted (without numbering of the sub-section) by the finance act, 2001 with retrospective effect from 1-4-1962) and sub-section (2)/(3) (inserted by the finance act, 2006 with consequential numbering of the clauses of section 14a) of section 14a. ..... -(i) for the purposes of computing the total income under this chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this act. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Lucknow
Reported in : (2005)92ITD22Luck
..... the appeal was preferred before the hon'ble mp high court, inter alia, on the following questions of law: "whether the income tax appellate tribunal was justified in holding that as there was no specific order for charging interest under section 234b of the act, the charging of interest under section 234b in the demand notice was illegal even though in the computation sheet (itns 150) which formed part of the assessment order, interest amounting ..... subject to the other provisions of this section, where, in any financial year, an assesses who is liable to pay advance tax under section 208 has failed to pay such tax or, where the advance tax paid by such assessee under the provisions of section 210 is less than ninety percent of the assessed tax, the assessee shall he liable to pay simple interest at the rate of two percent for every month or part of a month comprised in the period from the first ..... the hon'ble patna high court in the cases of uday mistanna bhandar and complex and smt tej kumari and others had held that no interest under this chapter could be levied unless there was specific direction to charge interest under a particular section in the assessment order itself. ..... . due to divergent views on this issue, the amendments were brought to section 234b of the act by finance act, 1995 with retrospective effect from 1.4.89 ..... . 2001 with retrospective effect from 1.4.89 .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Cochin
Reported in : (2007)292ITR31(Coch.)
..... that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the finance act, 2000 (10 of 2000) as amended by the taxation laws (amendment) act, 2001 (4 of 2001) and the assessee has paid the amount of shortfall on or before the 15th day of march, 2001 in respect of the installment of advance tax due on the 15th day of june, 2000, the 15th day of september, ..... . - in this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 or on regular assessment as reduced by the amount of tax deducted or collected at source in accordance with the provisions of chapter xvii on any income which is subject to such deduction or collection and which is taken into account in computing such total income ..... . - in this section, "tax due on the returned income" means the tax chargeable on the total income declared in the return of income furnished by the assessee for the assessment year commencing on the 1st day of april immediately following the financial year in which the advance tax is paid or payable, as reduced by the amount of tax deductible or collectible at source in accordance with the provisions of chapter xvii on any income which is subject to such deduction or collection] and which is taken into account in computing such total income .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Chennai
Reported in : (2007)288ITR150(Chennai)
..... discussion, we find that the parliament in exercise of the power conferred upon it under article 271 of the constitution of india has enacted finance act, 2001 prescribing levy of surcharge at 17% over and above the rate of income tax levied under section 113 of income tax act in respect of the undisclosed income.therefore, in our view, the assessing authority has rightly levied the surcharge. ..... when a central act was enacted providing the rate of income tax, the same shall be charged for that year in accordance with the provisions of the central act.section 113 provides for levy of tax at the rate of 60% in respect of undisclosed income determined under section 158bc for the block period.the first objection of the assessee is that since there was no reference about the central enactment in section 113, as referred in section 4(1), the rate of tax prescribed under finance act, 2001 for levy of ..... , since the parliament in their wisdom enacted finance act, 2001 prescribing surcharge at the rate of 17% over and above the rate of income tax computed under section 113, it cannot be said that there cannot be any levy of surcharge in respect of the ..... act provides rate of tax at 60% in respect of the undisclosed income determined under chapter ..... act and submitted that the rate of tax prescribed under the central act would be applicable in respect of the assessment made raider regular courser.in respect of the undisclosed income, the legislature prescribed a separate procedure under chapter .....
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