1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

No pardon for professionally run company

ByCA Gopal Nathani

Sep 30, 2020

In D & H Secheron Electrodes (P) Ltd. (281ITR421) the assessee company is found to have suppressed profits by:

Debiting personal insurance premium of directors;
Inflating packing expenses in the books of account; &
Omitting to disclose the value of stocks at a particular location.

The assessing officer levied a penalty for non-disclosure of true income which action was confirmed by the ITAT. The Madhya Pradesh High Court too held that it is not a case of technical breach or what one may call a venial breach on the part of the assessee in not disclosing his true income. The High Court in a daunting way observed that this fact of suppression was very much within the knowledge of the assessee especially when it is a professionally led company being managed by Chartered Accountants.