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We are a firm of Financial Consultants in Delhi. Our firm uses the services of Chartered Accountants and MBAs to render services.

Welcome to Financial Consultant in Delhi

We are a firm of Financial Consultants in Delhi. Our firm uses the services of Chartered Accountants and MBAs to render services.

We are a Financial Consultant in Delhi. We render services in the area of Auditing, Taxation and Management Consultancy.

 

 

 

 

News and Events
28Dec

In Punjab Heritage & Tourism Promotion Board v. Income-tax Officer, Ward 4(3), Chandigarh, [2012] 25 taxmann.com 508 (Chd.), it has been held by Courts that there can be no condonation for delay on the part of assessee, if the delay is attributable to negligence and inaction on the part of Assessee.

28Dec

In Additional Commissioner of Income-tax v. Shreyas Gramin Bank [2012] 25 taxmann.com 282 (SC), it has been held by Courts that notice given under Section 154 is totally vague. The Assessing Officer has not even indicated as to on what basis he has allowed excess set-off. Notice under Section 154 of the Act, therefore, was not maintainable. The second notice under Section 148 of the Act was issued squarely on the basis of notice under Section 154 of the Act. In the circumstances, the High Court was right in setting aside both the notices. We, therefore, see no reason to interfere with the impugned order. Accordingly, the civil appeal filed by the Department is dismissed with no order as to costs.

28Dec

In Samtel India Ltd. v. Commissioner of Income-tax, Delhi, [2012] 25 taxmann.com 535 (SC), it has been held that In the instant case, it is the assessee who has moved its application for rectification under section 154. The application is not moved by the department. In the instant case, the Deputy Commissioner entertains the application of the assessee under section 154. He gives to the assessee the benefit of carry forward and set off of unabsorbed depreciation and brought forward losses of the earlier years while computing the gross total income. Section 154 finds place in Chapter XIV which deals with PROCEDURE FOR ASSESSMENT. Section 154 deals with rectification of mistake apparent from the record. If one examines the scheme of Chapter XIV, it becomes clear that the said Chapter not only deals with assessment and re-assessment, it also deals with re computation. The object of re-computation is to assess (quantify) the correct taxable income. Such re-computation of a correct taxable income is a matter of procedure. In order to arrive at a correct amount of taxable income, the Deputy Commissioner had to compute deduction under section 80HHC(3) which had to be deducted from the gross total income. In the instant case, assessee had made a claim for computation of deduction under section 80HHC(3). Consequently, the Deputy Commissioner had to give effect in toto the orders passed by the appellate authority for earlier years as the appellate authority had directed the department to give benefit to the assessee of carrying forward and setting off losses/unabsorbed depreciation in the computation of taxable income. In the assessment year in question, there was taxable income of Rs. 5,49,45,200 which after set off stood reduced to Rs. 3,62,01,940 (gross total income) before Chapter VI-A deduction. Therefore, Deputy Commissioner had to give the consequential adjustment while computing deduction under section 80HHC(3). Without such consequential adjustment, it was not possible to arrive at the correct taxable income. The said order did not contain two rectifications, as suggested by the assessee. If the argument of the assessee was to be accepted, it would result in escapement of income for the simple reason that while the taxable income on account of set off would stand reduced from Rs. 5,49,45,200 to Rs. 3,62,01,940 (gross total income), the Chapter VI-A deduction, according to the assessee, ought not to be restricted to Rs. 40,08,528/- as against Rs. 1,14,45,297 allowed in the original assessment order dated 29-1-1999. [Para 4] For the above reasons, the appeal of the assessee was to be dismissed.

28Dec

In Commissioner of Income-tax, Circle 1(1) v V.S. Dempo & Co. Ltd. [2012] 28 taxmann.com 235 (Bombay), it has been held that Assessing Officer cannot rectify order passed by appellate authorities

28Dec

In Shrikant Real Estates (P.) Ltd. v. Income-tax Officer-4(3)(4), Mumbai, [2012] 26 taxmann.com 265 (Mum.), The assessee has claimed short-term capital gains and has shown it in the revised e-return but the same figure did not appear under the item where the short-term capital gain is to be taxed at special rate under section 111A, Schedule CG - \'Capital gains under item No. 7.\' However, at the same time under Schedule SI- \'Income chargeable to income tax at special rates IB\', the assessee has shown short-term capital gains liable to be taxed at special rate of 10 per cent. Accordingly, reversing the finding of the Commissioner (Appeals), the Assessing Officer was directed to allow credit of the short-term capital gains subject to special rate of tax as per provisions of section 111A and rectify the intimation under section 143(1).

26Sep

We are a firm of Financial Consultants in Delhi. Our firm uses the services of Chartered Accountants and MBAs to render services.