2020 (10) TMI 996

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.... respondent for proceedings in connection with re-assessment under the Income Tax Act, 1961 (in short 'Act') for Assessment Year 2012-13, and the second, the order of re-assessment dated 27.12.2019. 2. Proceedings for re-assessment have admittedly been initiated after a period of four years from the end of the relevant year and this is thus, a case, that attracts the proviso to Section 147 of the Act. The provision, to the extent to which it is relevant to this matter, is extracted below: 147. Income escaping assessment: If the Assessing Officer 3 has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or rea....

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.... by an assessee or on account of the failure of the assessee to have made a full and true disclosure of income at the original instance. 4. In the present case, the petitioner has filed a return of income in time and therefore, the first two conditions are not attracted. The only issue to be examined is whether the alleged escapement of income, if any, is attributable to failure on account of the assessee/petitioner to have made a full and true in disclosure of income in that regard. For this purpose, one would have to examine the reasons on the basis of which jurisdiction has been assumed, and test the same in the light of the enquiry conducted and the responses filed by the petitioner prior to the framing of the original scrutiny asses....

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....e 2 As per Col. 27(b)(i) of Form 3CD audit report, TDS was not made u/s 194J in respect of payment of Rs. 3,30,900 made towards fee for technical / professional services. However AO omitted to make disallowance of this sum u/s 40(a)(ia). The Excess deduction granted of Rs. 3,30,900/- has to be disallowed. 8. This issue relates to alleged non-deduction of tax at source under Section 194J in respect of remittances towards fee for technical/professional services. This information has been sought for under communication dated 23.07.2014, where a copy of the memo of computation of income and all annexures thereto, being the balance sheet, profit and loss account, notes of audits, returns, statutory reports in Forms 3CD and various ot....

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.... *Any sum paid to an employee as bonus or commission for services rendered, where such sum was otherwise payable to him as profits or dividend. (Section 36(1) (ii) NIL 2. *Any sum received from employees towards contributions to any provident fund or superannuation fund or any other fund mentioned in section 2(24) (x); and due date for payment and the actual date of payment to the concerned authorities under section 36(1) (va (As per Annexure) 11. Issue 4 is set below: Issue 4. As per the details of "Legal and Professional fees" incurred available on record, the following expenditure are not revenue in nature: Date Payment to Amount Particulars 20-05-11 HSB Partners 11,03,000 Towards ....

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....be disallowed 14. Bike event expenses were sought under cover of communication dated 26.12.2014 and supplied vide reply dated 06.01.2015 as follows: ... During the previous year, we amended the "object Clause" in the Memorandum of the Company to include "Bike Event". It is a CSR activity involving the conduct of an Annual Training Camp to provide skills aimed at training motored two wheeler rides on safe and skilled riding on road and respect for traffic rules. Additionally, the program helps identify talented youngsters who can potentially be trained for representation in the arena of Motor Sports. Amount spent on this event has been booked under "Bike Event Expenses". 15. Issue 6 and explanation thereto are extracted below:....

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....proceeds being amount held in escrow account. As per sec. 45(1), capital gain is taxable in the year in which transfer took place. Since there is no dispute that the transfer of kitchen appliances business took place in F.Y. 2011-12, the C.G. arising from such transaction is taxable in A.Y. 2012-13. In this case part of the consideration was kept in escrow account. This will not change the incidence of taxation u/s 45(1) of the Income tax Act. Long term Capital Gains escaped assessment is Rs. 27,77,75,000. 18. A query relating to long term capital gains on slump sale has been raised by the Assessing Officer under cover of Notice dated 23.07.2014, to which the petitioner had replied on 18.08.2014 supplying a copy of agreement dat....