Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: list of goods taxed at 4% :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: empanelment :: VAT RATES :: TDS :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: due date for vat payment :: articles on VAT and GST in India
News Headlines »
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol

Jaya gets a breather in two Income Tax cases
January, 30th 2008
Tamil Nadu former chief minister J Jayalalithaa has got a reprieve from the Income Tax Appellate Tribunal (ITAT) in at least two of the several tax cases against her. The reprieve is on the additional income tax levied on her agricultural income from the land at Poyyapakam village and the tax levied on the purchase of newsprint for Namadu MGR. The income tax department had claimed that the purchase was a fictitious one for the purpose of inflating expenses.

ITAT, the second appellate body on tax matters, has almost waived the tax on Rs 1.6 crore, the expense incurred for the purchase of newsprint. The assessing officer had decided that since this part of the purchase was not carried out through banks, 50% of this expenditure should be disallowed and taxed, but the commissioner (appeal), the first appellate body, had reduced it to 15%.

ITAT found merit in the assessees claim that purchase of the newsprint was genuine, but could not totally rule out the possibility of an inflated expenditure. Therefore, it decided that 5% of the expenses on newsprint could be held taxable. The assessment year in this case is 1994-95.
In the case of agricultural income, ITAT upheld the order of CIT (appeal), which allowed the exemption claimed for the agricultural income from leased and licensed land. The ITAT decision is fair and is in line with the order of the commissioner (appeal), G Narayana Swamy, senior partner, S Venkatram & Co, auditor for Jayalalithaa, said.

The decision by ITAT on the claim of agricultural income was in relation to 7.7 acre leased at Poyyapakam village and 6.9 acre procured on licence basis. To begin with, the assessing officer had disputed the genuineness of the land lease. The officer had argued that there was no entry for the sale of stamp paper utilised for the deal with the office of the Registrar of Stamp Duty. Besides, the lesser had given a statement before the assessing officer that he had not leased the land in question.

However, the lesser, TR Vasudevan, had later retracted the statement given before the deputy commissioner, income tax. In an affidavit, he claimed that the statement before the deputy commissioner was secured by the raiding income tax officials through coercion, including harassment of his wife.

He further said he had signed the statement around mid-night. ITAT observed that though the statement given before the income tax officials has evidentiary value, such statements should be viewed with great caution, especially when they are subsequently retracted. Therefore, ITAT has observed there is a great need to probe the reasons for retracting from the earlier statements and if possible, one should not rely on the earlier statements that are retracted later.

ITAT upheld the commissioners appeal decision to consider Rs 14 lakh as agricultural income and Rs 1.8 lakh as non-agricultural income. In the second case, the issue was bogus purchase of newsprint and inflating expenses. The newspaper in question is Namadu MGR. According to the assessing officer, newsprint purchase worth Rs 1.6 crore was fictitious. The assessee had furnished documentary evidence to support the stand that the newsprint had actually been purchased, and also details of suppliers.

When the suppliers of the newsprint visited the income tax inspector attached to the assessing officer, the officer was not available. He later concluded that the suppliers did not exist and thereafter, made the additional tax on charges of inflated expenses.

The assessing officer, however, decided to consider only those purchases transacted through banks and made an addition of 50% of the total cash transaction carried out by the assessee. The CIT appeal had reduced the addition to 15%. ITAT, after carefully examining the details of the cash transactions, concluded that the purchase of newsprint was genuine.

However, ITAT did not find merit in the assessing officers view that all the off bank newsprint purchases were bogus. But it found some merit in the CIT (A) decision to reduce the addition to 15% of the cash transaction. ITAT, then, directed the assessing officer to sustain a 5% addition of the cash purchases.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions