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Poona Electric Supply Co. Ltd vs Commissioner Of Income-Tax, Bombay on 19 April, 1965

7. Ground no.6 of the Revenue's appeal for A.Y. 06-07 is against deleting the addition of Rs.3,89,356/- made u/s. 40(ia) of the IT Act. The A.O. observed that the appellant had debited Rs.3,89,356/- as brokerage. Hence, it had shown liability in respect of TDS payable. As per A.O., the assessee was liable to deduct TDS u/s. 194H of the IT Act. The appellant had not furnished any proof of payment of TDS. Therefore, he disallowed Rs. 3,89,356/- u/s. 40(ia) of the IT Act. The ld. CIT(A) had allowed the appeal on the ground that when income of the assessee has been directed to compute @ 0.25% on total turnover of Rs. 1,08,76,86,861/-, which was worked out at Rs. 27,19,217/-. The ld. CIT(A) had allowed all the expenses claimed by the appellant by relying upon the decision in case of Bharat A Master vs. ITO in ITa No. 177/Ahd/2003 dated 29.02.2008 and Hon'ble Supreme Court decision in case of Poona Electric vs. CIT 57 ITR 521(SC). After considering the I T A No s . 2 52 5 , 25 26, 26 3 5 & 2 6 36 / Ah d /0 9 A. Y . 2 00 5- 06 & 0 6- 07 Page 12 orders of the A.O. and submission of the assessee, the ld. CIT(A) has directed to compute the income on the basis of 0.25% on total turnover and no benefit of any expenditure would be allowed. Thus, we also confirm the order of the CIT(A) on this issue. Accordingly, Revenue's appeal on this ground is dismissed.
Supreme Court of India Cites 13 - Cited by 253 - Full Document

Commissioner Of Income Tax, New Delhi vs Air France on 13 April, 2009

3. Now the assessee is before us. Ld. Counsel for the appellant contended that the reasons recorded by the A.O. for issuing bogus bills and getting commission on it. But, the A.O. had not made any addition on account of under the head 'Commission income" on which he had reopened the case u/s. 147. When there is no addition on the basis of reason to believe in assessment order by the A.O., then no addition under any other head, can be made by the A.O. He relied upon the decision of Hon'ble Gujarat High Court decision in case of CIT-II vs. Mohmed Juned Dadani in Tax Appeal No. 964 of 2011 TO Tax Appeal No. 967 of 2011, order dated 29.01.2013, wherein Hon'ble Gujarat High Court had considered the Bombay High Court decision in case of CIT v. Jet Airways (I) Limited (2011) 331 ITR 236, in which Hon'ble Bombay High Court held that the Assessing Officer does not assess the income which he had reasons to believe had escaped assessment and which forms the basis of a notice u/s. 148, it is not open to the Assessing I T A No s . 2 52 5 , 25 26, 26 3 5 & 2 6 36 / Ah d /0 9 A. Y . 2 00 5- 06 & 0 6- 07 Page 9 Officer to assess independently any other income which does not form the subject matter of the notice. Therefore, it was argued that the addition made on the basis of any other income which was not formed the subject matter of the notice is invalid. Thus, the order of the A.O. may be cancelled. At the outset, ld. CIT D.R. vehemently argued that reopening u/s. 147 is valid as no scrutiny assessment was made in this case. The notice was issued within four years from the end of the assessment year. The copy of reasons were supplied to the appellant. There was no objection filed by the appellant before the A.O. He made compliance of the notice issued by the A.O. regularly without objecting the reopening. He further relied upon the decision of Hon'ble Gujarat High Court in case of Gala Gymkhana (P.)
Delhi High Court Cites 19 - Cited by 97 - R Shakdher - Full Document
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