CIT v. Orient Craft Ltd.

M/S. A.T. Kearney India Private Limited, Gurgaon vs. ITO, New Delhi

In the result the ground No

Bench: Smt Diva Singh & Shri Prashant Maharishiat Kearney India Private Ito, Limited, Ward-1(1), Vs. 6Th Floor, Tower-D, Global New Delhi Business Park, Gurgaon Pan:Aadca1436G (Appellant) (Respondent) At Kearney India Private Ito, Limited, Ward-1(1), Vs. 6Th Floor, Tower-D, Global New Delhi Business Park, Gurgaon Pan:Aadca1436G (Appellant) (Respondent)

…he assessment. Hon'ble Delhi High Court in the above case has also considered the decision of the Hon'ble Supreme Court in case of CIT Vs. Kelvinator India Ltd. 320 ITR 561 (SC) and decision of the Hon'ble Delhi High Court in case of CIT Vs. Orient Craft Ltd. 354 ITR 546 (Del). In view of this we uphold the reopening of the assessment in the case of the assessee u/s 147 of the Act. In the result, Ground No. 1 of the appeal of the assessee is dismissed. 12. Ground No. 2 of the appeal of the assessee is against the reduction in deduction available u/s 10A of the Act of Rs. 11374842/- as against Rs. 39280361/- claim…

ACIT, New Delhi vs. M/S. Barista Coffee Company Ltd., New Delhi

In the result cross objection filed by the assessee is allowed

Bench: Smt Suchitra Kamble & Shri Prashant Maharishiacit, Barista Coffee Company Ltd, Circle-2(1), Room No. 398D, Shop No. 55, Community Centre, Vs. Cr Building, New Delhi Basant Lok Market, Vasant Vihar, New Delhi Pan:Aabcb798A (Appellant) (Respondent)

…of the relevant assessment year, without any fresh information coming on records post completion of earlier regular assessment u/s 143(3) of the Act, required to be annulled being contrary to law, as espoused in latest Delhi High court in case of Orient Craft 354 ITR 536.” 6. Before us the ld AR of the appellant submitted that the ground raised by the assessee is purely legal ground which can be raised and considered at any time and no fresh facts are required to be adduced and hence, he pressed for admission of the same. 7. The ld DR against this submitted that this ground cannot be admitted now as it was not ra…

Pr. Commissioner of Income Tax-Delhi-Xxi vs. Subhash Sharma

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE NAJMI WAZIRI

…x, Delhi v. Kelvinator of India Ltd. [2010] 187 taxman 312 (SC). Reliance was also placed on the decisions of this Court in Mohan Gupta (HUF) v. Commissioner of Income Tax [2014] 366 ITR 115 (Del) and Commissioner of Income tax v. Orient Craft Ltd. [2013] 354 ITR 536 (Del) which was affirmed by the Supreme Court by the dismissal of the Special Leave Petition filed by the Revenue on 20th January, 2014. 16. In reply, Mr. Ashok Manchanda, learned counsel for the Revenue, submitted that although the Petitioner may have disclosed the BTA and the fact of claiming depreciation by allocating the professional…

Agya Ram vs. Commissioner of Income Tax

The appeals are allowed but in the circumstances with no order as to

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE NAJMI WAZIRI

…e had camouflaged „rental income‟ as „business income‟. Reliance was also placed on the decisions in Commissioner of Income Tax v. Orient Craft Limited ITA Nos. 290/2004, 291/2004, 292/2004 & 293/2004 Page 10 of 16 (2013) 354 ITR 536 (Del), Swati Saurin Shah v. Income-tax Officer [2016] 70 taxmann.com 72 (Guj) and Priya Desh Gupta v. Commissioner of Income Tax (2016) 385 ITR 452 (Del). He also relied on the Commentary on the Transfer of Property Act, 1882 by Nandi, 3rd Edition, 2010 to draw a distinction between a 'licence' and a 'lease'. 15. Countering the above subm…

Agya Ram vs. Commmissioner of Income Tax

The appeals are allowed but in the circumstances with no order as to

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE NAJMI WAZIRI

…e had camouflaged „rental income‟ as „business income‟. Reliance was also placed on the decisions in Commissioner of Income Tax v. Orient Craft Limited ITA Nos. 290/2004, 291/2004, 292/2004 & 293/2004 Page 10 of 16 (2013) 354 ITR 536 (Del), Swati Saurin Shah v. Income-tax Officer [2016] 70 taxmann.com 72 (Guj) and Priya Desh Gupta v. Commissioner of Income Tax (2016) 385 ITR 452 (Del). He also relied on the Commentary on the Transfer of Property Act, 1882 by Nandi, 3rd Edition, 2010 to draw a distinction between a 'licence' and a 'lease'. 15. Countering the above subm…

Ann Kumar, New Delhi vs. DCIT, New Delhi

In the result, the appeal of the assessee is allowed

Bench: Sh. N. K. Saini

…Therefore, mere conclusion of the proceedings under section 143(1) ipso facto did not permit invocation of powers for reopening the assessment." 7. Identical issue has been decided by the Hon’ble Jurisdictional High Court in case of Madhukar Khosla vs. ACIT - 354 ITR 356 wherein the Hon’ble Jurisdictional High Court has also followed its own decision rendered in the case entitled CIT vs. Orient Craft Ltd., the operative part of the judgment (supra) is reproduced as under :- “The argument of the revenue that an intimation cannot be equated to an assessment, relying upon certain observations of the Supreme Court in…

Shri Santosh Jagati, Nainital vs. ITO, Nainital

The appeal is allowed

Bench: Shri I.C. Sudhir & Shri O.P. Kant Assessment Year: 2008-09 Santosh Jagati, Vs. Ito, Anupam Hotel, Nainital, Mallital, Nainital. (Pan: Aavpj4767C) (Appellant) (Respondent) Assessee By: Shri Kapil Goyal, Adv. Department By : Smt. Anima Barnwal, Dr Date Of Hearing : 21.03.2016 Date Of Pronouncement: 15 :06.2016 Order Per I.C. Sudhir:The Assessee Has Questioned First Appellate Order On The Following Grounds: 1. Because The Learned Cit(Appeals)-Ii, Dehradun, Was Not Justified In Confirming The Assessing Officers Action U/S. 148. He Failed To Appreciate The Fact That All Necessary Details Regarding Letting Out Of Property On Rent & Of The Property Sold-(Land With The Building Constructed Thereon) Were Already On Record While Processing The Return U/S. 143(1) Or Rectifying The Same U/S. 154. 2. Because The Learned Cit(Appeals)-Ii, Dehradun, Misunderstood The Whole Facts & Confused Himself Between The Property Inherited From An Ancestor Before 1.04.1981 & The Property Acquired By The Appellant Himself. He Failed To Appreciate The Fact

…t necessary that the assessee must file a writ petition and question the reassessment proceedings, held the Hon'ble High Court. Again, in the case of Tupperware India Pvt. Ltd. (supra), reference of 6 decision in the case of CIT vs. Orient Craft Ltd. (2013) – 354 ITR 536 (supra) has been given wherein Revenue had questioned the order of the ITAT as to whether the ITAT was right in law in holding that in absence of any tangible material available with the Assessing Officer to form the requisite belief regarding escapement of income, the reopening (under sec. 147/148) of the assessment made under sec. 143(1) was ba…

M.K. Cycle Industries Pvt. Ltd., New Delhi vs. ITO, New Delhi

Bench: Sh. I.C. Sudhir & Sh. O.P. Kantassessment Year: 2003-04 M/S. M.K. Cycle Industries Pvt. Ltd. Vs. Ito, Ward – 6(1), New Delhi G-76, Sant Nagar Extn., Tilak Nagar, New Delhi (Pan: Aaecs3075L) (Appellant) (Respondent)

…of the said information the Assessing Officer sought to reopen the assessment. The Hon’ble High Court in the case of Indo Arab Air Services (surpa), after considering the various decisions including the decision in the case of CIT Vs. Orient Craft Ltd. (2013) 354 ITR 536, held as under: “20. Keeping the above legal position in view when the cases on hand are examined, it is seen that as far as Indo Arab is concerned while the AO set out the information received from the ED, he failed to examine if that information provided the vital link to form the 'reason to believe' that income of the Assessee had escaped asse…

M/S. S G Estates Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is allowed

…r in 3 AY: 2007-08 original assessment proceedings under section 143(3) of the Act and in absence of fresh tangible material, the reassessment proceedings are without jurisdiction as held by the Hon’ble Delhi High Court in the case of Orient Craft Ltd. (2013) 354 ITR 536 (Del) and in the case of the Donaldson India Filters Systems Private Limited (2015) 54 taxmann.com 253 (Delhi). 3.2 On the other hand, learned Sr. Departmental Representative relying on the orders of the authorities below, submitted that no full and true disclosure of facts was made on the part of the assessee and it was a glaring mistake of the…

M/S Schneider Electric India P. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: Sh. I.C. Sudhir & Sh. O.P. Kant

…to following reasons: 1. There was no fresh material for reopening of the assessment, much less the tangible material. In support of the proposition, the ld AR relied on the judgement of the Hon’ble Delhi High Court in the case of Orient craft Ltd reported in 354 ITR 536 (Delhi), Madhukar Khosla reported in 367 ITR 165(Delhi), and Mohan Gupta HUF 365 ITR 115 (Delhi ) 2. The notice under section 148 of the Act was issued on 25/03/ 2009, which is beyond the four years from the end of the relevant assessment year and therefore according to the proviso to the section 147 of the Act , no reassessment could be made unl…

Schneider Electric India (P) Ltd., Gurgaon vs. DCIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: Sh. I.C. Sudhir & Sh. O.P. Kant

…to following reasons: 1. There was no fresh material for reopening of the assessment, much less the tangible material. In support of the proposition, the ld AR relied on the judgement of the Hon’ble Delhi High Court in the case of Orient craft Ltd reported in 354 ITR 536 (Delhi), Madhukar Khosla reported in 367 ITR 165(Delhi), and Mohan Gupta HUF 365 ITR 115 (Delhi ) 2. The notice under section 148 of the Act was issued on 25/03/ 2009, which is beyond the four years from the end of the relevant assessment year and therefore according to the proviso to the section 147 of the Act , no reassessment could be made unl…

M/S Jn Puri, Dehradun vs. ACIT, Dehradun

In the result, the appeal filed by the Assessee stand allowed

Bench: Shri H.S. Sidhu & Shri O.P. Kant

…filed by the assessee with the return of income. Therefore, the issuance of notice u/s. 148 of the I.T. Act is illegally bad in law and without jurisdiction, keeping in view of the Hon’ble Delhi High Court decision in the case of CIT vs. Orient Craft Ltd. 354 ITR 536 (Delhi) and CIT vs. Atul Kumar Swami 362 ITR 693 (Delhi). Ld. Counsel of the assessee requested that the assessment may be quashed by respectfully following the above precedents. A.Y. 2010-11 12. Ld. DR relied upon the orders of the authorities below and requested that the appeal of the Assessee may be dismissed. 13. We have heard both the par…

ACIT, Dehradun vs. Sh J.N. Puri, Dehradun

In the result, the appeal filed by the Assessee stand allowed

Bench: Shri H.S. Sidhu & Shri O.P. Kant

…filed by the assessee with the return of income. Therefore, the issuance of notice u/s. 148 of the I.T. Act is illegally bad in law and without jurisdiction, keeping in view of the Hon’ble Delhi High Court decision in the case of CIT vs. Orient Craft Ltd. 354 ITR 536 (Delhi) and CIT vs. Atul Kumar Swami 362 ITR 693 (Delhi). Ld. Counsel of the assessee requested that the assessment may be quashed by respectfully following the above precedents. A.Y. 2010-11 12. Ld. DR relied upon the orders of the authorities below and requested that the appeal of the Assessee may be dismissed. 13. We have heard both the par…

M/S R. Systems International Ltd., New Delhi vs. ITO, New Delhi

Bench: Shri G.D. Agrawal & Shri Kuldip Singh

…iry of four years, assumed jurisdiction to reopen the assessment under amended provisions contained u/s 115JB which is not permissible under law. Identical issue has been decided by the Hon’ble Jurisdictional High Court in case of Madhukar Khosla vs. ACIT - 354 ITR 356 wherein the Hon’ble Jurisdictional High Court has also followed its own decision rendered in the case titled as CIT vs. Orient Craft Ltd., the operative part of the judgment (supra) is reproduced as under :- “The argument of the revenue that an intimation cannot be equated to an assessment, relying upon certain observations of the Supreme Court…

Magppie Exports, New Delhi vs. DCIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: Sh. C.M. Garg & Sh. O.P. Kant

…. (c) that there was no new tangible material before the Assessing Officer for reopening of the assessment. In support of the proposition, the learned AR relied on the judgment of the Hon’ble Delhi High Court in the case of Orient Craft Ltd reported in (2013) 354 ITR 536; (d) that case cannot be reopened on the basis of a retrospective amendment in law. In support of the proposition, the learned AR relied on judgment of the Hon’ble Kerala High Court in the case of CIT Thiruvanathapuram vs. B Mohanachandranan Nair (2014) 45 taxmann.com 384 and judgment of the Hon’ble Gujarat High Court in the case of Sadbhav Engin…

Magppie Exports, New Delhi vs. DCIT, New Delhi

In the result, both the appeals of the assessee are allowed

Bench: Sh. C.M. Garg & Sh. O.P. Kant

…. (c) that there was no new tangible material before the Assessing Officer for reopening of the assessment. In support of the proposition, the learned AR relied on the judgment of the Hon’ble Delhi High Court in the case of Orient Craft Ltd reported in (2013) 354 ITR 536; (d) that case cannot be reopened on the basis of a retrospective amendment in law. In support of the proposition, the learned AR relied on judgment of the Hon’ble Kerala High Court in the case of CIT Thiruvanathapuram vs. B Mohanachandranan Nair (2014) 45 taxmann.com 384 and judgment of the Hon’ble Gujarat High Court in the case of Sadbhav Engin…

Ann Kumar, New Delhi vs. DCIT, New Delhi

Bench: Shri R.S. Syal & Shri Kuldip Singh

…refore, mere conclusion of the proceedings under section 143(1) ipso facto did not permit invocation of powers for reopening the assessment." 7. Identical issue has been decided by the Hon’ble Jurisdictional High Court in case of Madhukar Khosla vs. ACIT - 354 ITR 356 wherein the Hon’ble Jurisdictional High Court has also followed its own decision rendered in the case entitled CIT vs. Orient Craft Ltd., the operative part of the judgment (supra) is reproduced as under :- “The argument of the revenue that an intimation cannot be equated to an assessment, relying upon certain observations of the Supreme Court…