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Allahabad High Court has said that notice under Section 263 was prepared and uploaded on 28-03-2022 and the same was received on the fixed date and the impugned order dated 31-03-2022 has been passed in gross violation of the principles of natural justice.
“For a service to be categorized as a technical service, it has to be concerned with applied science, i.e., using scientific knowledge for practical applications, or industrial science concerning, relating to, or derived from industry.”
Supreme Court reiterated that to examine whether a particular transaction is sale of capital assets or business expense, multiple factors like frequency of trade and volume of trade, nature of transaction over the years etc., are required to be examined.
In terms of Section 2(22)(e) of the Act, treating the loans and advances received by concerns, in which shareholders of the company giving loans and advances had substantial interest, qualified as “deemed dividend”
After examining the expenses payable and the detailed order of the CIT,the ITAT held that the CIT has correctly examined the invoices, period and purpose for the expenses which have not been paid for the last six years
It is a well-accepted principal of tax jurisprudence that the Assessing Officer cannot sit on the armchair of a businessman assessee to replace his business strategy by his own whims and fancies
ITAT said that the entire addition has been made by the AO as well as CIT based on guess work and estimation based on some alleged information received from Sales Tax Department of Maharashtra and from DGIT that “the assessee has taken bogus purchase bills without having taken any delivery of the goods”, without applying their mind.
ITAT held that the second proviso to Clause (i) of Section 40(a) just like second proviso to clause (ia) of Section 40(a) was inserted to remove an anomaly and were therefore curative and declaratory in nature. Hence, it had to be given retrospective effect.
ITAT noted that an identical issue was subject matter of consideration of the Tribunal in assessee’s own case, hence following the precedent, the Tribunal directed that the payment received in this case cannot be treated as FTS under Article 12 (5) of India Netherlands DTAA.
ITAT upheld the order of the CIT and said that the assessee had only provided treatment to a few patients at concessional rates, which was less than 1% of the revenue of the assessee. Thus, the activities of the assessee cannot be said to be charitable activities and it is not entitled for registration or approval under section 10(23C) or 12A of the Income Tax Act.
by Tarun Jain†
Cite as: 2022 SCC OnLine Blog Exp 79
“…the statutory regime requiring that a thing be done in a certain manner, also implies (even in the absence of any express terms), that the other forms of doing it are impermissible.”
“What is non-existent in the eye of the law cannot be revived retrospectively.”
Supreme Court: In a case where the assessment order for actor Amitabh Bachchan’s income in the year 2001-2002 was in question, the