TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 857
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....een disposed of by us and remaining four by this order, raised identical issues, it passed a Common Order. 4 They contained identical grounds. The lead case was taken as Income Tax Appeal No. 1492/MUM/2009 which pertains to Assessment Year 2000-2001. 5 The brief facts were that original assessment under Section 143(3) was completed on 30th November 2002. The Assessing Officer proceeding on a report known as Volcker Committee Report (for short 'the report') and issued a notice under Section 148 of the Income Tax Act, 1961 on 20th March 2007. It was served on the assessee on the same day. On 18th April 2007, the assessee filed a letter, requesting to treat the original return as return in response to the notice under Section 148 and....
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....cines in North Iraq, raged in war. 7 With the view to pursue its business in Iraq, the assessee sought help of a Jordan based company M/s. Galala and Company and appointed it as its agent, who would look after their interest in Iraq. The assessee would pay commission on agreed basis. Pertinently, the appointment of agent and payment of commission was as per UN sanctioned percentage of 10% of trade amount/invoice price. 8 Thereafter, the Assessing Officer found from the findings and conclusions in a report styled as ' Volcker Committee Report' that Iraq devised a mechanism, which were actually kickbacks demanded by Iraq Government and under this method certain levies were imposed. These levies were imposed and demanded by Iraq Gove....
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....or the payment of commission, no other expense or costs were to be borne by the assessee for obtaining and executing the contract and orders. This aspect and manner of payment made by the assessee to Galala was examined by the AO in detail in the regular assessment, framed under section 143(3), dated 31.11.2002. 2. In this backdrop and on the basis of the report of Volcker Committee, the department proceeded to initiate reassessment proceedings and issued notice under section 148, wherein, the AO informed the assessee, that, " May be, because at the time of original assessment, the report of Volcker Committee was not available with the AO". The AO further held, "It is by now settled law that a mistake of not only on facts but also under l....
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....he removal of doubts, it is hereby declared that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure.] 13 A perusal of this explanation would denote that any expenditure incurred by an assessee for any purpose which is an offence or which is prohibited by law shall not be deemed to have been incurred for the purpose of business or profession and no deduction or allowance shall be made in respect of such expenditure. 14 The sum and substance of the lengthy discussion in the Tribunal's order is that even if what is alleged by ....
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....judicial power under the Income Tax Act, 1961, to the following pertinent observations of the Hon'ble Supreme Court in the case of Krishena Kumar & Ors. V/s. Union of India & Ors., AIR 1990 SC 1782. "29. The argument of Mr. Shanti Bhushan is that the State's obligation towards pension retirees is the same as that towards P.F. retirees. That may be morally so. But that was not the ratio decidendi of Nakara. Legislation has not said so. To say so legally would amount to legislation by enlarging the circumference of the obligation and converting a moral obligation into a legal obligation. It reminds us of the distinction between law and morality and limits which separate morals from legislation. Bentham in his Theory of Legislation, C....