FROM MY ARCHIVES- USEFUL ITAT , KOLKATA DECISIONS

1. FROM MY ARCHIVES- USEFUL ITAT , KOLKATA DECISIONS ( 2016 : Part 1)

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1.       ITO vs. M/s. Raj Kumar Suresh Kumar Jaiswal  [I.T.A Nos. 128 to 133/kol/2013]

           ITO vs. M/s. Raj Kumar Jaiswal  [I.T.A Nos. 134 to 139/kol/2013]

           ITAT, “C” Bench, Kolkata; Order Dated : 09.11.2016

Section 206C :

Held :

(i)                  Where scrap purchased by the assessee is segregated and some useful separate products are obtained and when such separate  products are sold – No obligation for collecting TCS.

(ii)                Proviso to S. 206C(6) – It is pari materia to second proviso to S. 40a(ia) – the ratio laid down by DHC in Ansal Landmark Township (about retrospectivity) will apply.

2.     Shri Mukul Dutta vs. ITO

         [I.T.A No. 486/Kol/2015]

        ITAT, “D” Bench, Kolkata; Order Dated : 16.11.2016

Held :

Contractual receipts not disclosed in the books cannot be taxed fully – only net profit percent can be added back. Department has to prove that expenses relating to such income has been debited in the books.

3.      Shri Suraj Sonar vs. ACIT  [IT (SS) A. No. 132/Kol/2014]

         Smt. Mina Sonar vs. ACIT  [IT (SS) A.No.133/Kol/2014]

         Shri Bharat Sonar, HUF vs. ACIT  [IT (SS) A. No. 134/Kol/2014]

         Shri Bharat Sonar vs. ACIT  [IT (SS) A. No. 135/Kol/2014]

         ITAT, “C” Bench, Kolkata; Order Dated : 09.11.2016

Held :

(i)                  Once substantive  assessment is confirmed, protective  addition  cannot be sustained.

(ii)                Assessed income can go below the returned income depending upon facts and circumstances.

4.           DCIT Vs. VEDA COMMERCIAL PVT. LTD. & VICE VERSA

               I.T.A. No. 1064/Kol/2010; C.O. No. 153/Kol/2010 & I.T.A No. 1064/Kol/2010

              ITAT, “A” Bench, Kolkata; Order Dated : 16.11.2016

Capital Gains vs. Stock-in-Trade

Held :

Assessee dealt in 185 companies’ shares but assessee held the shares as investment, received decent dividend, Board Resolution was passed, no borrowed funds were taken and revenue accepted holdings as investment in earlier years u/s. 143(1) – Surplus to be treated as Capital Gains.

5.           ACIT vs. M/s. Winro Commercial (India) Ltd.  [ITA No. 1468/Kol/2012]

              DCIT vs. M/s. Winro Commercial (India) Ltd.  [ITA No. 804/Kol/2013]

              M/s. Winro Commercial (India) Ltd. vs. CIT-1  [ITA No. 1590/Kol/2013]

               ITAT, “B” Bench, Kolkata; Order Dated :21.07.2016

S. 14A R.W Rule 8D :

Held :

Where the CIT(A) gave relief on the ground that borrowed funds were utilized for giving loans and not for acquiring shares and the capital of the appellant including share capital and reserves and surplus exceeded the amount of investment in shares & units and CIT(A) held that the case of Dhanuka & sons 339 ITR 319(Cal) is distinguishable on these facts and he finally deleted additions made u/s. 14A r.w. Rule 8D, there is no mistake in the order of CIT(A) and the same cannot be interfered with.