Just a moment...

βœ•
Top
Help
πŸš€ New: Section-Wise Filter βœ•

1. Search Case laws by Section / Act / Rule β€” now available beyond Income Tax. GST and Other Laws Available

2. New: β€œIn Favour Of” filter added in Case Laws.

Try both these filters in Case Laws β†’

×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedbackβœ•

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search βœ•
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
β•³
Add to...
You have not created any category. Kindly create one to bookmark this item!
βœ•
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close βœ•
🔎 Case Laws - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
  • Title Only
  • Head Notes
  • Citation
Party Name: ?
Party name / Appeal No.
Law:
---- All Laws----
  • ---- All Laws----
  • GST
  • Income Tax
  • Benami Property
  • Customs
  • Corporate Laws
  • Securities / SEBI
  • Insolvency & Bankruptcy
  • FEMA
  • Law of Competition
  • PMLA
  • Service Tax
  • Central Excise
  • CST, VAT & Sales Tax
  • Wealth tax
  • Indian Laws
Courts: ?
Select Court or Tribunal
---- All Courts ----
  • ---- All Courts ----
  • Supreme Court - All
  • Supreme Court
  • SC Orders / Highlights
  • High Court
  • Appellate Tribunal
  • Tribunal
  • Appellate authority for Advance Ruling
  • Advance Ruling Authority
  • National Financial Reporting Authority
  • Competition Commission of India
  • ANTI-PROFITEERING AUTHORITY
  • Commission
  • Central Government
  • Board
  • DISTRICT/ SESSIONS Court
  • Commissioner / Appellate Authority
  • Other
In Favour Of: New
---- In Favour Of ----
  • ---- In Favour Of ----
  • Assessee
  • In favour of Assessee
  • Partly in favour of Assessee
  • Revenue
  • In favour of Revenue
  • Partly in favour of Revenue
  • Appellant / Petitioner
  • In favour of Appellant
  • In favour of Petitioner
  • In favour of Respondent
  • Partly in favour of Appellant
  • Partly in favour of Petitioner
  • Others
  • Neutral (alternate remedy)
  • Neutral (Others)
Landmark: ?
Where case is referred in other cases
---- All Cases ----
  • ---- All Cases ----
  • Referred in >= 3 Cases
  • Referred in >= 4 Cases
  • Referred in >= 5 Cases
  • Referred in >= 10 Cases
  • Referred in >= 15 Cases
  • Referred in >= 25 Cases
  • Referred in >= 50 Cases
  • Referred in >= 100 Cases
Situ: ?
State Name or City name of the Court
Include Word: ?
Searches for this word in Main (Whole) Text
Exclude Word: ?
This word will not be present in Main (Whole) Text
From Date: ?
Date of order
To Date:

---------------- For section wise search only -----------------


Statute Type: ?
This filter alone wont work. 1st select a statute > section from below filter
New
---- All Statutes----
  • ---- All Statutes ----
Sections: ?
Select a statute to see the list of sections here
New
---- All Sections ----
  • ---- All Sections ----

Accuracy Level ~ 90%



TMI Citation:
Year
  • Year
  • 2026
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
  • 2001
  • 2000
  • 1999
  • 1998
  • 1997
  • 1996
  • 1995
  • 1994
  • 1993
  • 1992
  • 1991
  • 1990
  • 1989
  • 1988
  • 1987
  • 1986
  • 1985
  • 1984
  • 1983
  • 1982
  • 1981
  • 1980
  • 1979
  • 1978
  • 1977
  • 1976
  • 1975
  • 1974
  • 1973
  • 1972
  • 1971
  • 1970
  • 1969
  • 1968
  • 1967
  • 1966
  • 1965
  • 1964
  • 1963
  • 1962
  • 1961
  • 1960
  • 1959
  • 1958
  • 1957
  • 1956
  • 1955
  • 1954
  • 1953
  • 1952
  • 1951
  • 1950
  • 1949
  • 1948
  • 1947
  • 1946
  • 1945
  • 1944
  • 1943
  • 1942
  • 1941
  • 1940
  • 1939
  • 1938
  • 1937
  • 1936
  • 1935
  • 1934
  • 1933
  • 1932
  • 1931
  • 1930
Volume
  • Volume
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
TMI
Example : 2024 (6) TMI 204
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
TMI Citation
    No Records Found
    ❯❯
    MaximizeMaximizeMaximize
    0 / 200
    Expand Note
    Add to Folder

    No Folders have been created

      +

      Are you sure you want to delete "My most important" ?

      NOTE:

      Case Laws
      Showing Results for :
      Reset Filters
      Results Found:
      AI TextQuick Glance by AIHeadnote
      Show All SummariesHide All Summaries
      No Records Found

      Case Laws

      Back

      All Case Laws

      Showing Results for :
      Reset Filters
      Showing
      Records
      ExpandCollapse
        No Records Found

        Case Laws

        Back

        All Case Laws

        Showing Results for : Reset Filters
        Case ID :

        📋
        Contents
        Note

        Note

        -

        Bookmark

        print

        Print

        Login to TaxTMI
        Verification Pending

        The Email Id has not been verified. Click on the link we have sent on

        Didn't receive the mail? Resend Mail

        Don't have an account? Register Here

        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

        Provisions expressly mentioned in the judgment/order text.

        <h1>ITAT sets aside additions under section 56(2)(ix) for advance forfeiture, remands matter for fresh consideration with connected appeals</h1> ITAT Chennai set aside CIT(A) orders regarding additions under section 56(2)(ix) for forfeiture of advance received during property transfer negotiations. ... Additions made u/s 56(2)(ix) - forfeiture of advance - Additions towards advance received by the appellants as forfeiture of advance in the course of negotiation for transfer of capital asset and same is forfeited for failed negotiation and thus, opined that advance received by the appellant is taxable u/s. 56(2)(ix) - HELD THAT:- If you go by the arguments of assessee, he claims that the negotiation was never failed and it is still alive and they are ready to transfer the properties in favour of the buyer. At the same time, from the arguments from both the parties, in light of statement recorded from Smt. V.K. Sasikala, we find that she has denied having entered into any kind of MoU and also payment of advance in cash. The facts are totally contradictory. We further came to know that the department has completed assessments of alleged buyer Smt. V.K. Sasikala and also made additions towards advance claimed to have paid by her as per MoU, for purchase of property as unexplained money. The Assessing Officer, has also made additions in the hands of the appellants towards additions as forfeiture of money. There is no concept of deemed forfeiture of advance as per sub clause (ix) of section 56(2) of the Act, because if you go by said provisions, it is very clear that sum can be assessed u/s. 56(2)(ix) of the Act, in a case where any sum of money received as advance or otherwise in the course of negotiation for transfer of a capital asset, if, (a) such sum of forfeited and (b) the negotiations do no result in transfer of said capital asset. If you go by the arguments of the Ld. Counsel for the assesse’s, two conditions prescribed u/s. 56(2)(ix) of the Act are not satisfied. Further, they claimed that even now they are ready to transfer of property in favour of the buyer. From the above, it is undoubtedly clear that these appeals needs to be decided along with other connected appeals pending in the case of Smt. V.K. Sasikala and her associates at the first appellate authority level itself. Therefore, we are of the considered view, that these appeals cannot be independently decided, because the issues involved in these appeals are inextricably linked to additions made by the department in the hands of the Smt. V.K. Sasikala, the alleged buyer of the property and their associates. Thus, we set aside the orders of the ld. CIT(A) in all these cases and restore the issues to the file of the first appellate authority and direct the first appellate authority to decide these appeals along with other connected appeals pending before the first appellate authority in the group cases of Smt. V.K. Sasikala and others and decide the issues afresh in accordance with law - These appeals are set aside for denovo consideration by the ld. CIT(A) in accordance with law. Issues Involved:1. Validity of additions made under Section 56(2)(ix) of the Income-tax Act, 1961.2. Alleged MoU and advance payments in specified bank notes during demonetization.3. Contradictory statements regarding the MoU and advance payments.4. Protective additions made in the hands of companies.5. Unexplained money and other related additions.Issue-wise Detailed Analysis:1. Validity of Additions under Section 56(2)(ix):The core issue revolves around the additions made by the Assessing Officer (AO) under Section 56(2)(ix) of the Income-tax Act, 1961, treating the advance money received by M/s. Bonjour Bonheur Pvt Ltd and M/s. Senthil Paper and Boards Pvt Ltd as income from other sources due to forfeiture of advance money. The AO concluded that the negotiations for the sale of shares and assets did not result in a legal transfer, thus categorizing the advance as forfeited. However, the appellants contended that the negotiations were not failed and they were still willing to execute the sale deeds, arguing that the conditions under Section 56(2)(ix) were not satisfied.2. Alleged MoU and Advance Payments During Demonetization:During a search and seizure operation on 09.11.2017, incriminating documents, including MoUs and share certificates, were found. These documents suggested agreements for the sale of assets by M/s. Bonjour Bonheur Pvt Ltd and M/s. Senthil Paper and Boards Pvt Ltd, with significant advances paid in specified bank notes during the demonetization period. Statements from various parties, including Mr. S. Senthil, Advocate, confirmed these transactions. However, Smt. V.K. Sasikala, alleged to be the buyer, denied any such agreements or payments, leading to contradictory claims.3. Contradictory Statements Regarding the MoU and Advance Payments:The AO relied on statements from the appellants, their directors, and Mr. S. Senthil, Advocate, to conclude that Smt. V.K. Sasikala was the buyer. However, Smt. V.K. Sasikala denied any involvement in the MoUs or payments. This contradiction is crucial, as the appellants argued that negotiations were ongoing, and they were ready to transfer the properties if the documents were returned. The tribunal noted that these contradictory facts necessitated a thorough examination, suggesting that the appeals be heard together with related cases involving Smt. V.K. Sasikala.4. Protective Additions Made in the Hands of Companies:The AO made protective additions in the hands of M/s. Senthil Paper and Boards Pvt Ltd, treating the advance money as forfeited. However, the CIT(A) deleted these protective additions, reasoning that once substantive additions were made in the hands of the directors, protective additions in the company's hands were unnecessary. The tribunal supported this view, emphasizing the need to resolve the contradictions in statements before making any conclusive additions.5. Unexplained Money and Other Related Additions:The AO also made various other additions, including unexplained money under Section 69A of the Act, in the hands of the directors, linked to the transactions of advance received for the sale of assets. In the case of M/s. Pondicherry Sri Lakshmi Jewellery, the AO added Rs. 92.78 crores under Section 68, considering the deposit of Rs. 97.5 crores into the firm's bank account. The CIT(A) confirmed these additions, but the tribunal noted that these issues were interconnected with the main issue of advance payments and MoUs, necessitating a combined hearing.Conclusion:The tribunal set aside the orders of the CIT(A) and directed that the appeals be decided afresh, along with related appeals involving Smt. V.K. Sasikala and her associates. The tribunal emphasized the need for a comprehensive examination of the contradictory statements and facts, providing reasonable opportunities for hearing and cross-examination to ascertain the correct facts. All issues were kept open for fresh adjudication, ensuring a thorough and fair resolution in accordance with the law.Final Order:The appeals filed by the assessees and the revenue for the assessment years 2013-14 to 2018-19 were allowed for statistical purposes, and the cross objections filed by M/s. Senthil Papers & Boards Pvt Ltd for the assessment year 2017-18 were dismissed as infructuous. The order was pronounced on 28th February 2024 at Chennai.

        Topics

        ActsIncome Tax
        No Records Found