TaxTMI 
TaxTMI 
2022 (11) TMI 967
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.... Commissioner of Income Tax-16(1), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in deleting disallowance of Rs.12,00,000/- made on account of underwriting charges in the facts and circumstances of the instant case. 2.1. We have heard rival submissions and perused the materials available on record. We find that assessee is in the business of manufacturing of optical and lenses. During the year under consideration, the assessee has shown income from house property, loss from business and profession and income from other sources for which details and supporting evidences were filed during the course of assessment proceedings. During the course of ass....
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....able Assessee's brand name going high in hotel business as one more hotel chain would be added in its kitty and that too without making any hefty investment. Copy of business arrangement letter is enclosed herewith as Annexure P. This was a commercial call on the part of the Assessee. Unfortunately in spite of their efforts the venture did not succeed and hence Assessee was made liable to loss by way of underwriting charges which has been duly claimed by Assessee. This being business loss which may kindly be allowed) 2.2. The ld. AO however, did not agree to the aforesaid explanation of the assessee and concluded that underwriting commission incurred by the assessee is not related to the business of the assessee in its normal cours....
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....para 9 of the assessment order, the ld. AO had mentioned that assessee had credited an amount of Rs.1,67,10,442/- on account of gifts received from Shri Anil Hingorani. During the course of assessment proceedings, the assessee was asked to explain and furnish the occasion for which the gift was received creditworthiness of the donor, bank statement of the donor etc. In response to the query raised by the ld. AO, the assessee submitted that the gifts were received out of natural love and affection from his brother. It was explained that assessee had actually taken loans in earlier years from his brother which was converted as gift during the year under consideration. The ld. AO however, did not heed to the contentions of the assessee and pro....
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....2. After necessary verification, the ld. AO had admitted that assessee had established the identity and creditworthiness of the donor. The ld. AO acknowledged the fact that the amount of loan payable to Shri Anil Hingorani by Savy design, proprietorship concern of the assessee was converted into gift by crediting the amount to assessee‟s capital account. According to the ld. AO, this was a colourable devise used by the assessee to avoid payment of tax. The ld. CIT(A) however by appreciating the fact that the assessee had duly discharged its onus in terms of section 68 of the Act and that no monies were received by the assessee during the year, granted relief to the assessee by deleting addition made u/s.68 of the Act. Aggrieved, the R....
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....relied upon by the Revenue in the case of McDowell and company reported in 154 ITR 148 of the Hon‟ble Supreme Court is of no relevance to the facts of the case. When the provisions of Section 68 of the Act per se could not be made applicable, as no receipt of money was available during the year under consideration and in view of the fact that gift has been received only from assessee‟s own blood brother (which would be exempt from tax), the decision relied upon by the Revenue on the Hon‟ble Supreme Court in the case of CIT vs.Durga Prasad More reported in 82 ITR 540 and in the case of Sumati Dayal reported in 214 ITR 801 does not come to the rescue of the Revenue. The gift confirmation also says that the same is irrevocabl....
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.... provisions of the Act, the said receipt is taxable in the eyes of law. This was deleted by the ld. CIT(A). 4.2. We find that assessee was holding 50,500 shares of Rs.100/- each of Rs.50,50,000/- of FCPL. Vide an agreement, the assessee agreed to sell his entire shareholding in FCPL to M/s BJN Hotels Pvt. Ltd., for a consideration of Rs.68,00,000/-. The assessee received an advance of Rs.27,00,000/- towards sale of shares of FCPL from BJN during the year under consideration. However, certain disputes arose between parties and also because of death of Mr. P.B. Nichani, the key person of BJN, shares of FCPL could not be transferred to BJN. We find that the ld. CIT(A) had categorically held that shares held by the assessee in FCPL was continu....