TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 318
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....) of Explanation thereto. 2. That the Commissioner of Income-tax (A) erred on facts and in law in confirming the action of the assessing officer in treating interest earned on FDRs placed with banks as margin money for obtaining bank guarantee / opening of letter of credits as "income from other sources". 2.1 That the Commissioner of Income-tax (A) erred on facts and in law in confirming the action of the assessing officer in denying deduction under section 80HHC of the Act with reference to the aforesaid interest income. 3. That the Commissioner of Income-tax (A) erred in not following his own orders given in the case of the assessee for the assessment year 2000-01, 2001-02 & 2003- 04 on the same facts and circumstances." Additional Ground (A.Y 2002-03) "That on the facts and circumstances of the case, the Assessing Officer erred in making addition to the returned income with respect to issues, which had attained finality prior to search conducted under section 132 and were unconnected with any material/documents found during the course of search, which were not sustainable in assessment completed u/s 153A of the Act." ITA No. 3642/Del/2008 (Revenue's appeal) A.Y. 2003....
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....High Court in the case of Consolidated Photo & Finvest Ltd. Vs ACIT (281 ITR 394) which is squarely applicable to the facts of the case. 8. The order of the CIT(A) is erroneous and not tenable in law and on facts. 9. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." C.O No. 230/Del/2009 A.Y. 2003-04 "1. That on thefacts andcircumstances of the case, the CIT(Appeals) erred on facts and in law in not holding that profit arising on cancellation of forward foreign exchange contracts was not liable to be reduced from 'profit of business', while computing deduction under section 80HHC of the Income-tax Act, 1961 ('the Act'). 2. That on the facts and circumstances of the case, the IT(Appeals) erred on facts and in law in not reversing the action of the assessing officer in treating interest income earned on Fixed Deposits placed with banks as margin money for obtaining bank guarantee/opening letter of credits as income from other sources- as opposed to 'business income'. 2.1. That on the facts and circumstances of the case, the CIT(Appeals) erred on facts and in ....
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....as conducted upon the Assessee on 17th January, 2006. Pursuant to the search, assessment under Section 153A of the Act was completed by the assessing officer vide order dated 20.12.2007. In the said Assessment Order, the Assessing Officer reduced the amount of deduction claimed u/s 80HHC of the Act. 5. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 6. The Ld. AR submitted that in respect of completed assessments, the Assessing Officer cannot revise an opinion in a reassessment u/s 153A on a pure question of law without any reference to any fresh material/ or any incriminating document or statement found/seized during the search on 17.01.2006. The Ld. AR further submitted that this question arises in A.Y. 2002-03 and 2003-04. In A.Y. 2002-03 the assessment was made u/s 143(1) on 26.02.2003, whereas for A.Y. 2003-04 admittedly assessment was made u/s 143(3) on 27.09.2005. The Ld. AR submitted that the Assessing Officer has taken altogether different view from the earlier Assessment Years in the present contested Assessment years. The Ld. AR submitted that before the Assessing Officer, the a....
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....(Delhi). 8. The Ld. AR submitted that the assessee's revised return of income was specifically dealing with the export turnover and not that of import turnover. The Ld. AR submitted that all the evidences in respect of Ground No. 2 and 2.1 were produced before the Assessing Officer. All contracts were for exports which are revealed from the documents. The Ld. AR submitted that the claim of allowance u/s 80HHC of the Act involving, inter alia, the treatment to be accorded under Explanation (baa) of 80HHC(3) relating to firstly, interest earned on fixed deposits made for securing bank guarantee for obtaining release of consignment of rice from the Food Corporation of India of the same amount for export against confirmed purchase order. The Ld. AR submitted that the same cannot be netted against the interest paid to bank on overdrafts/LC negotiations etc. Secondly, the Ld. AR submitted that gain from cancellation of Forex Forward Contracts made against existing order of export sales is "independent income" or it is inextricably linked that it is integral part of export business and earned in the normal course of carrying on export business was not answered by the Revenue authorities....
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.... case as the material found during the search was very much disclosed in the original assessment by the assessee before the Assessing Officer. This aspect, at any point of time, was never doubted while passing the assessment order. In a case, where the assessment is completed, which at no point of time was disputed by the Revenue and if there is no material found which appears to be incriminating Section 153A proceedings will not be sustainable. Section 153A case comes in the picture when the initial assessments proceedings are pending on the date of initiation of search or some incriminating material was found during the course of search. Though the terminology used is incriminating material by the Revenue regarding the documents found during the search from the records of the original assessment u/s 143(1), it appears that all these materials were present during the original assessment proceedings for which entries are available in books of accounts. The decision of the Hon'ble Delhi High Court in case of CIT vs. Kabul Chawla 380 ITR 573 which lays down the entire law with regard to Section 153A has given certain conditions while proceedings with Section 153A proceedings and when....