CIT v. Kelvinator of India Ltd.

Oriental Insurance Company

The appeal is allowed

…. Permitting reopening of assessment on a change of opinion as to the taxability of the income of the Assessee is, thus, outside the scope of Section 147 of the Act. The Supreme Court in the case of Commissioner of Income-Tax v. Kelvinator of India Ltd.: 320 ITR 561 (SC) had held as under:- “6. On going through the changes, quoted above, made to section 147 of the Act, we find that, prior to the Direct Tax Laws (Amendment) Act, 1987, reopening could be done under the above two conditions and fulfilment of the said conditions alone conferred jurisdiction on the Assessing Officer to make a back assessmen…

Pr. Commissioner of Income Tax-09 vs. Tupperware India Pvt. Ltd

…ee in the facts of the present case. In Orient Craft Ltd. this Court considered the decisions of the Supreme Court in CIT v. 2015:DHC:6392-DB ITA No. 415 of 2015 Page 6 of 11 Kelvinator India Ltd. (2010) 320 ITR 561 and Rajesh Jhaveri Stock Brokers P. Ltd. (supra). 14. The question examined by the Court in CIT v. Orient Craft Ltd. (supra) is identical to the one sought to be projected by the Revenue in this appeal viz., whether the Tribunal was right in law in holding that in the absence of any tangible material available with the AO to form the requ…

Tulip Engineering Pvt. Ltd vs. Income Tax Officer

Bench: Us & Challenges An Order Of The Income Tax Appellate Tribunal (Hereafter Referred To As “Itat”) Dated 30.06.2014 In Ita 410/Del/2013. 2. The Assessee Was Subjected To Re-Assessment Proceedings; The Initiation Of Which Has Been Challenged Under Section 147. The Second Ground Urged Is With Respect To The Absence Of Notice Under Section 143 (2) & The Third Is With Respect To The Merits Of Addition Of Rs.4,84,000/-. 3. Briefly, The Facts Are That For Ay 2008-09, The Assessee Had Reported An Income Of Rs.444/-. This Was Processed Under Section 143 (1). Upon An Enquiry & Investigation Report, The Ao Issued Notice Under Section 148, Doubting A Transaction Based Upon The Transfer Of Shares & Purchase By Two Subsequent Transferees I.E. Raghubir Singh & Simranjeet Kaur. 2015:Dhc:1289-Db

…p during the investigation carried out by the Directorate of Investigation, Jhandewalan. The entries relating to the transactions and the sums of money were also included in tabular statement as part of the note. CIT v. M/s Kelvinator of India Ltd, (2010) 320 ITR 561 (SC) states that the reassessment can be resorted to if there is “tangible material” justifying such move. The receipt of the investigation report in the opinion of the Court, undoubtedly constituted such tangible material outside the record, which were received by the AO after the assessment was processed under Section 143 (1). In the cir…

Donaldson India Filters Systems Pvt. Ltd vs. DCIT, Circle 10(1)

…e reason the case had been re-opened after expiry of four years prescribed in the proviso to Section 147 of the Income Tax Act. In reaching such conclusions, the first appellate authority, inter alia, referred to dictum in CIT v. Kelvinator India Limited 320 ITR 561 (SC). 5. The ITAT in the appeal by the Revenue, however, found that the first appellate authority had failed to give an opportunity to the AO for responding to the objections of the assessee in the first appeal and had also not given any specific finding after investigating the fact as to whether there had been failure on the part of the as…

CIT vs. Central Warehousing Corporation

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE R.K.GAUBA

…omission to disclose fully and truly material facts as essentially one of fact. This was affirmed by the Supreme Court in Honda Siel Power Product V. DCIT 340 ITR 64 (SC). The Supreme Court ruling in Commissioner of Income Tax vs. Kelvinator India Ltd. 320 ITR 561 (SC) is authority for the view that the “reason to believe” on which a reassessment can be validly ordered should necessarily be based on “tangible material” which an A.O. comes by after the assessment. Necessarily, such material is outside the record. Straying from this clear path would be sliding down the slippery slope into a quagmire of…

Commissioner of Income Tax-Xvi vs. Shri Atul Kumar Swami

Accordingly without merit and is dismissed

…ITA 112/2014 Page 1 of 4 $~42 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of decision: 18th March, 2014 + ITA 112/2014 COMMISSIONER OF INCOME TAX-XVI ..... Appellant Through Ms Suruchi Aggarwal, sr. standing counsel versus SHRI ATUL KUMAR SWAMI ..... Respondent Through Mr Salil Aggarwal, Adv. CORAM: HON’BLE MR. JUSTICE S. RAVINDRA BHAT HON’BLE MR. JUSTICE R.V.EASWAR S. RAVINDRA BHAT, J.: (OPEN COURT) The revenue is in appeal aggrieved by the order dated 20.9.2013 of the Income Tax Appellate Tribunal…

Central Warehousing Corporation

Appeals are partly allowed for statistical purposes

…been declared by this Court in CWC vs. ACIT, 239 ITR 460 (Del), the eligibility of corporations and companies and were housing activities to claim benefit of Section 10(29) was finally pronounced by the Supreme Court in CIT vs. Kelvinator, (2010) 320 ITR 561 (SC). The Supreme Court held that the question of exemption would arise and pertain to that part of income which is by letting out of godowns and warehouses for the purposes of Section 10(29) and the other income would not be eligible for . such benefits. The assessing officer issued notice under Section 147/ 148 claiming that he h…

Commissioner of Income-Tax-I

The appeal is dismissed

…cated to have escaped assessment in the reasons for invoking Section 147 of the said Act. The learned counsel placed reliance on the Supreme Court decision in the case of Commissioner of Income-tax v. Kelvinator of India ITA No.578/12 Page 12 of 22 Limited: 320 ITR 561 (SC) to submit that unless and until there was some tangible material available with the Assessing Officer to indicate that there was an escapement of income, assumption of jurisdiction under Section 147 was not permissible. He also referred to the decision of this court in the case of The Commissioner of Income-tax v. Orient Craft Limited [ITA N…

The Commissioner of Income Tax-V vs. Orient Craft Ltd

…atment to be given to the premium received on transfer of quotas, there was no escapement of income and thus the notice was without jurisdiction. Reference was made to the judgment of the Supreme Court in the case of CIT vs. Kelvinator of India Ltd.(2010) 320 ITR 561. Several other authorities were adverted to by the Tribunal and eventually it was observed as under:- “For the above discussion, we hold that since there was no tangible material available with the AO to form the requisite belief of escapement of income, the reopening of the completed assessment is unsustainable in the eye of law. The same…

The Commissioner of Income Tax -II vs. Maruti Suzuki India Ltd

…1991) 189 ITR 285 (SC) and followed in Saradbhai (supra) and other decisions cited by the assessee are of little assistance in the facts of the present case. 10. The Supreme Court in Commissioner of Income Tax, Delhi v. Kelvinator of India Limited [2010] 320 ITR 561 (SC) held that there should be “tangible material” to arrive at the conclusion that there is escapement of income from assessment. Arguably, it cannot be held that a judicial decision (in this case the Tribunal’s decision in 2012:DHC:6521-DB W.P.(C) 759/2013…