CIT v. Prakash Chand Lunia

SMT.RAMANI.RADHAKRISHNAN,ERNAKULAM vs. THE ACIT CENTRAL CIRCLE 2, ERNAKULAM

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Ramani Radhakrishnan. Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination…

SMT.RAMANI.RADHAKRISHNAN,ERNAKULAM vs. THE ACIT CENTRAL CIRCLE 2, ERNAKULAM

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Ramani Radhakrishnan. Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination…

SMT.RAMANI.RADHAKRISHNAN,ERNAKULAM vs. THE ACIT CENTRAL CIRCLE 2, ERNAKULAM

Bench: Shri Satbeer Singh Godara & Shri Amarjit Singh

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Ramani Radhakrishnan. Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination…

SANTHIMADAM AGROFARM TRUST,KOCHI vs. THE ACIT CENTRAL CIRCLE 2, KOCHI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Shri Soundararajan K.

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

SANTHIMADAM AGROFARM TRUST,KOCHI vs. THE ACIT CENTRAL CIRCLE 2, KOCHI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Shri Soundararajan K.

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

SANTHIMADAM AGROFARM TRUST,KOCHI vs. THE ACIT CENTRAL CIRCLE 2, KOCHI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Shri Soundararajan K.

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

SANTHIMADAM AGROFARM TRUST,KOCHI vs. THE ACIT CENTRAL CIRCLE 2, KOCHI

In the result, the appeals filed by the assessee are partly allowed for statistical purposes

Bench: Shri Chandra Poojari & Shri Soundararajan K.

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

GRASS ASSOCIATES PVT LTD,KOCHI vs. THE ITO,CORP.WARD-13), KOCHI

In the result, the appeal filed by the assessee is dismissed

Bench: Shri Sanjay Arora, Am & Ms. Kavitha Rajagopal, Jm

…s Ltd. v. Dy. CIT [2022] 442 ITR 1 (SC), 3 | P a g e Grass Associates Pvt. Ltd. v. ITO explaining the words ‘offence’ and ‘prohibited by law’ in the Explanation. Again, more recently, in the context of an illegal business, in CIT v. Prakash Chand Lunia [2023] 454 ITR 61 (SC), where the claim was of loss suffered on account of confiscation of silver by the Custom Authorities. It stands abundantly clarified that expenditure specified therein is not deductible under Explanation to s. 37(1). One could, invoking real income theory, argue of it being necessitated for business reasons. True, but, then, it is the real in…

M/S SANTHIMADOM AYURNIKETHAN HEALTH RESORT & RESEARCH INSTITUTE TRUST,KOCHI vs. ACIT CENTRAL CIRCLE -2, KOCHI

In the result, the assessee’s appeals are allowed for statistical purposes

Bench: Shri Sanjay Arora & Ms. Kavitha Rajagopal

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

M/S SANTHIMADOM AYURNIKETHAN HEALTH RESORT & RESEARCH INSTITUTE TRUST,KOCHI vs. ACIT CENTRAL CIRCLE 2, KOCHI

In the result, the assessee’s appeals are allowed for statistical purposes

Bench: Shri Sanjay Arora & Ms. Kavitha Rajagopal

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

M/S SANTHIMADOM AYURNIKETHAN HEALTH RESORT & RESEARCH INSTITUTE TRUST,KOCHI vs. ACIT CENTRAL CIRCLE -2, KOCHI

In the result, the assessee’s appeals are allowed for statistical purposes

Bench: Shri Sanjay Arora & Ms. Kavitha Rajagopal

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

M/S SANTHIMADOM AYURNIKETHAN HEALTH RESORT & RESEARCH INSTITUTE TRUST,ERNAKULAM vs. ACIT CENTRAL CIRCLE-2, KOCHI

In the result, the assessee’s appeals are allowed for statistical purposes

Bench: Shri Sanjay Arora & Ms. Kavitha Rajagopal

…eing no estopple against law. There is equally no finding in Mahesh Investments (supra), relied upon by the assessee, as indeed by the Revenue, whose reliance though, we agree with the assessee, is misplaced. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved (also see: Hussain Bhai & Ors. v. CIT [1966] 64 ITR 456 (Cal)). The decision in Modi Industries Ltd. (supra), however, settles the issue qua the ‘date of regular assessment’, clarifying it to be for the purpose of determination of interest payable to…

SRI SRAVAN KUMAR NEELA,NALGONDA vs. ACIT CENTRAL CIRCLE 1, KOZHIKODE

In the result, the instant appeals by the assesses are dismissed

Bench: Shri Sanjay Arora & Shri Manomohan Dasuma Maheshwara Rao Chinni Asst. Cit, Central Circle -1, Hno. 7-298, 7 Ward Aayakar Bhavan (North Block) Gandhi Bomma Centre Vs. Kozhikode 673001 Dachepalle, Guntur 522414 [Pan:Arjpc0342D] (Appellant) (Respondent)

…xplained, are not attracted qua income brought to tax under the deeming provisions, viz. ss. 69 thro’ 69C, which accordingly is not liable to be classified under those heads of income. More recently, the Apex Court in Prakash Chand Lunia (Decd.) v. CIT [2023] 454 ITR 61 (SC), repelled the assessee’s – a dealer in silver, claim of loss on account of confiscation by the Customs Deptt. apprehending it as of smuggled nature. While the Tribunal disallowed the assessee’s claim against income deemed as so u/s. 69A, the Hon’ble High Court, relying on CIT v. Piara Singh [1980] 124 ITR 40 (SC), held that loss on account of…

SRI UMA MAHESHWARA RAO CHINNI,GUNTUR vs. ASST COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE-1, KOZHIKODE

In the result, the instant appeals by the assesses are dismissed

Bench: Shri Sanjay Arora & Shri Manomohan Dasuma Maheshwara Rao Chinni Asst. Cit, Central Circle -1, Hno. 7-298, 7 Ward Aayakar Bhavan (North Block) Gandhi Bomma Centre Vs. Kozhikode 673001 Dachepalle, Guntur 522414 [Pan:Arjpc0342D] (Appellant) (Respondent)

…xplained, are not attracted qua income brought to tax under the deeming provisions, viz. ss. 69 thro’ 69C, which accordingly is not liable to be classified under those heads of income. More recently, the Apex Court in Prakash Chand Lunia (Decd.) v. CIT [2023] 454 ITR 61 (SC), repelled the assessee’s – a dealer in silver, claim of loss on account of confiscation by the Customs Deptt. apprehending it as of smuggled nature. While the Tribunal disallowed the assessee’s claim against income deemed as so u/s. 69A, the Hon’ble High Court, relying on CIT v. Piara Singh [1980] 124 ITR 40 (SC), held that loss on account of…

M/S.KARANNUR SERVICE CO-OP BANK LTD,KOZHIKKODE vs. THE ITO, WD-1(2), KOZHIKKODE

In the result, the appeals by the assessee are allowed

Bench: Shri Sanjay Arora & Shri Manomohan Das

…n as observed by the Tribunal in Santimadom Herbal City Trust v. Asst. CIT (in ITA Nos. 920, 921/Coch/2022, dated 14/11/2023), one violation of law cannot be a justification for violating another law. The Apex Court in CIT v. Prakash Chand Lunia v. CIT [2023] 454 ITR 61 (SC) again clarified, with reference to it’s earlier decisions, this aspect in the context of deductibility of expenditure of an illegal business (also refer Apex Laboratories (P.) Ltd. v. Dy. CIT [2022] 442 ITR 1 (SC)). We are, with respect, therefore not in agreement with the Tribunal in The Citizen CSL (supra) to the extent it states that viola…

THE KARANNUR SERVICE CO-OP BANK LTD ,KOZHIKKODE vs. THE ITO, WD-1(2),, KOZHIKKODE

In the result, the appeals by the assessee are allowed

Bench: Shri Sanjay Arora & Shri Manomohan Das

…n as observed by the Tribunal in Santimadom Herbal City Trust v. Asst. CIT (in ITA Nos. 920, 921/Coch/2022, dated 14/11/2023), one violation of law cannot be a justification for violating another law. The Apex Court in CIT v. Prakash Chand Lunia v. CIT [2023] 454 ITR 61 (SC) again clarified, with reference to it’s earlier decisions, this aspect in the context of deductibility of expenditure of an illegal business (also refer Apex Laboratories (P.) Ltd. v. Dy. CIT [2022] 442 ITR 1 (SC)). We are, with respect, therefore not in agreement with the Tribunal in The Citizen CSL (supra) to the extent it states that viola…

SRI HARIKUTTAN T,KAYAMKULAM vs. INCOME TAX OFFICER WARD 2, ALLEPPEY

In the result, the appeal filed by the assessee is partly allowed

Bench: Shri Sanjay Arora, Accountantmemberand Shri Manomohan Das, Judicialmember Harikuttan T. The Income Tax Officer (2) 1, Edayilaveetil Tharayil Aayakar Bhavan Njakkanal P.O., Pathiyoor Vs. Alappuzha Co0Llectorate Kayalmulam 690533 Alappuzha 688011 [Pan:Alrpt7536J] (Appellant) (Respondent) Appellant By: Shri M.S. Venkitachalam, Ca Respondent By: Smt. J.M. Jamuna Devi, Sr. D.R. Date Of Hearing:08.08.2023 Date Of Pronouncement:03.11.2023 O R D E R Per Sanjay Arora, Am This Is An Appeal By Assessee Challenging The Confirmation Of Penalty Levied Under Section 270A Of The Income Tax Act, 1961 (The Act) For Assessment Year (Ay) 2017-18 Vide Order Dated 17/02/2022, By The First Appellate Authority, Being The Commissioner Of Income Tax, Nfac [Cit(A)] Vide It’S Order Dated 06.07.2022. 2.1 The Brief Background Facts Of The Case Are That The Assessee, A Retired Defence Personnel, Is A Registered Money Lender Under The Kerala Money Lenders Act (Kml Act), Lending Money On Interest Against Mortgage Of Loan. For The Relevant Year He Returned, Besides Pension, Income From This Business At Rs.2,05,691. On Verification, It Was Found By The Assessing Officer (Ao) That The Assessee Was Maintaining Six Bank Accounts, I.E., Three Each With Two Banks, Being South Indian Bank (Sib) & State Bank Of India (Sbi). Transactions With The Former Were Undisclosed. The Reason Explained Was That The Gold Pawned By His Customers With Him For Availing Loan, Was In Turn Mortgaged With This Bank To Source Funds For Further Lending. These

…omas (in ITA 100/2016, dated 03/10/2017) having been stayed by the Hon'ble Apex Court (see office note to the assessment order). The matter is no longer res integra in view of the decision by the Hon'ble Apex Court in CIT vs. Prakash Chand Lunia (Decd.)[2023] 454 ITR 61 (SC). In the facts of that case, silver was confiscated from the assessee, a dealer in silver bullion, on a search by the Directorate of Revenue Intelligence (DRI) Wing of the Customs Department, which levied personal penalty on him. In the assessment proceedings under the Act, the silver seized was brought to tax u/s. 69A of the Act. The assessee…

NEW HIGHER SECONDARY SCHOOL,TRIVANDRUM vs. DCIT, TRIVANDRUM

In the result, the appeals by the assessee are dismissed

Bench: Shri Sanjay Arora & Shri Manomohan Das

…ional High Court has in ratio held that the power cannot be exercised even after 31.5.2015 where and to the extent it relates to a period prior to 01.6.2015, which, where so, would be accompanied by reason/s. As explained in CIT vs. Prakash Chand Lunia [2023] 454 ITR 61 (SC), for a precedent to be binding there has to be a conscious consideration of an issue involved. The scope of processing, a procedural matter, is unrelated to the period to which the charge, on the statute since 01/7/2012, relates. The machinery provisions, it is trite law, are to be read in a manner so as to make the charge effective. We may t…