Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TDS :: empanelment :: due date for vat payment :: ACCOUNTING STANDARDS :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: articles on VAT and GST in India :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company
« From the Courts »
 Ultratech Cement Ltd vs. ACIT (Bombay High Court)
 Vikram Singh vs. UOI (Delhi High Court)
  CIT vs. Annamalaiar Mills (Supreme Court)
 CIT vs. Equinox Solution Pvt. Ltd (Supreme Court)
 Centaur Helicopter Services P. Ltd. Vs. Commissioner Of Income Tax
 Ashok Chawla Vs. Commissioner Of Income Tax
  CIT vs. Annamalaiar Mills (Supreme Court)
 Kalyani Barter (P) Ltd vs. ITO (ITAT Kolkata)
  Rajendra Goud Chepur vs. ITO (AP & T High Court)
  CIT vs. Annamalaiar Mills (Supreme Court)

On tax refund, ITAT order to Nirma Chemicals upheld
March, 23rd 2011

Over an issue of tax refund, a division bench of the Gujarat high court has rejected the income tax departments appeal against Nirma Chemicals Works Limited (NCWL).

The department challenged the order of Income Tax Appellate Tribunal (ITAT) before a bench comprising Justices Akil Kureshi and Sonia Gokani. The ITAT had held that NCWL was entitled to get the refund.

Nirma Chemicals Works Limited had filed returns of income on 20.11.2000 for assessment year 2000-2001. During the year under consideration, it had purchased 54,368 special premium notes (SPNs) of Nirma Ltd at the rate of Rs. 355 per note having face value of Rs. 200.

Such SPNs were redeemed during the same year at the rate of Rs. 361. NCWL thus earned net income of Rs.268908 and offered it as its business income.

Since Nirma Ltd had deducted tax at source on entire difference between face value of Rs.200 and redemption price of Rs. 361 and thus collected Rs.1925715, NCWL claimed refund of such TDS.

However, the Assessing Officer declined the claim. This issue was raised before the CIT (Appeals) who also declined the claim. However, the ITAT in appeal accepted the case of the company.

Referring to Section 199 of the Income Tax Act and putting stress on words for the assessment year for which such income is assessable, the tribunal had found that there was no dispute that NCWL was owner of the security which after purchase from market was redeemed.

It observed that the tax was deducted from amount payable to the NCWL and it alone was entitled to claim credit for such security. The Tribunal opined that in transaction for earning this income NCWL had already offered such income to tax and income corresponding to the tax deducted at source was not included as income of the NCWL.

The division bench noted in an order made available today, When M/s. Nirma ltd had deducted tax at source on such transaction and when it was found that such tax was in excess of tax liability of the assessee, tribunal in our opinion rightly directed the Assessing Officer to refund the same.

Senior counsel Manish Bhatt along with Mauna Bhatt appeared for the income tax department.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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