AI Drafter 
TaxTMI 
TaxTMI 
2018 (6) TMI 216
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....5-2012. Consequently, the pending proceedings got abated under second proviso to Section 153A of the Act. AO issued notices U/s. 153A and completed the assessment proceedings vide order dt. 27-03- 2015 after making necessary enquiries and disallowing an amount U/s. 14A r.w. Rule 8D. 3. Ld. CIT, Tirupati on examination of record was of the view that the order of AO was erroneous on the following issues: a) As seen from the Schedule Q, Notes to accounts, which contains the details of related party disclosures, assessee received Hire charges amounting to Rs. 26.68 lakhs, whereas in the P&L a/c, the income admitted towards 'Hire charges is of Rs. 21.37 lakhs only. Hence, there is short admission of Rs. 5.31 lakhs; b) As seen from the schedules to form 3CD that the assessee has remitted employee share of PF of Rs. 5,39,149/- beyond the stipulated dates for its payments. Hence, the same attracts disallowance u/s. 43B of the Act; c) As seen from the details of rent Annexure Q to form 3CD report, the amount of tax deducted on rent is shown as Nil. However, as seen from the P&L account that the assessee claimed expenditure towards rent of Rs. 18,71,796/-. It is....
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....ng revisionary jurisdiction a notice u/s 263 was issued to assessee on the above issues. 4. Assessee in reply has given detailed explanation which was extracted in para 4 of the order of CIT, which is as under: (a) Short admission of Rs. 5.31 lakhs with regard to Hire Charges Hire charges received as shown in Profit and Loss account for the year ended 31.03.2012 is exclusive of taxes, whereas, Hire charges shown with regard to related party transaction in the notes to accounts is inclusive of taxes. The difference is only due to taxes amount. Further to that, we are regularly maintaining our books of accounts based on Generally Accepted Accounting Principles in India (Indian GAAP) and accordingly we have passed the journal entry in our books of accounts for hire charges as follows:- Party Account (Receivable) Dr. Rs. 26.68Iakhs To Hire Charges received A/c Cr.Rs.21.38 lakhs To Service Tax Payable Account A/c Cr. Rs. 2.20 lakhs To VAT payable Cr. Rs. 3.10 lakhs (Being Vehicle Hire Charges receivable accounted) Further, we have paid all the collected VAT and service tax and herewith enclose copy of paid challan and VA....
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....ital gain on sales of Shares of Rs. 3,99,00,000/- We have shown income from capital gain in the memo of total income for the sales of immovable property. Profit on sale of shares has been duly accounted in our books of accounts and shown under the head of Other Income in Profit and Loss Account. However the Capital loss from the sale of shares has not been claimed in the income tax return. We hereby again enclose the copy of memo of total income along with calculation of capital gains/loss for capital asset for your kind perusal (Annex-V) Therefore, we have computed Capital Gain and shown in the memo of total income and return of income. (e) (i) Excess Depreciation claimed for Vehicles run on hire of Rs. 5,17,244/- We were having 22 trucks and these vehicles were running on hire and income from these vehicles has been accounted and shown as Hire Charges received in the Profit and Loss Account. Therefore, we have been claiming depreciation @ 30% for hire vehicles consistently from year to year and claimed depreciation @ 30% during the assessment year also as per Income Tax Act, 1961 and there is no excess claim of depreciation of Rs. 5,17....
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....letter from the loan creditors along with Income Tax Return filed Copy for the assessment year 2012-13 of loan creditors for the loan received during the previous year for your kind perusal. (Annex-VIII) (g) Share application money pending for allotment of Rs. 75,29,73,245/- We have received share application money of Rs. 75,29,73,245/- from M/s. SNJ Distillers Private Limited (PAN AALCS9312F) during the financial year. During the course of assessment proceedings, we have submitted full details with regard to the share application money and the reasons for delay in allotment of shares vide our letter dated 05.03.2015. We hereby again enclose the copy of the same for your ready reference (Annex-IX) The shares has been allotted u/s 81(1) of Companies Act, 1956 to the existing shareholder after calling for a meeting and passing necessary resolutions. Thereafter, all the documents related to allotment of shares has also been filed with the Ministry of Corporate Affairs and compiled as per the provisions of Companies Act, 1956. The approval of allotment has also granted by the MCA and copies are enclosed for your ready reference (Annex-X) The Ministry of Co....
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.... U/s. 153A, consequent to the search and seizure proceedings. It cannot be stated that AO has not enquired on the issues. 7. Coming to the merits of the directions of CIT, it was submitted that assessee has given detailed explanation on each of the issues and instead of dropping the proceedings, Ld.CIT set aside the assessment for examination of the issues which does not require any fresh examination. He relied on the following case law: i. Virbhadra Singh (HUF) Vs. Pr.CIT (Himachal Pradesh) [400 ITR 530]; ii. M/s. Agasthiya Granie P. Ltd., Vs. ACIT (Madras), dated: 16/04/2018; iii. CIT Vs. Kabul Chawla (Delhi) [300 ITR 573]; iv. Spectra Shares & Scrips Pvt. Ltd., Vs. CIT (Andhra Pradesh) [354 ITR 035]; v. CIT Vs. Anil Kumar Sharma (Delhi) [335 ITR 083]; vi. CIT Vs. Sakthi Charities (Madras) [244 ITR 226]; vii. CIT Vs. Greenworld Corporation (Supreme Court) [314 ITR 081]; viii. Mehta Parikh & Co., Vs. CIT (Supreme Court) [30 ITR 181]; 8. Ld. CIT DR, however, relied on the orders of Ld.CIT. 9. We have considered the rival contentions and perused the documents placed on record. We are surprised to note t....