Thursday, January 8, 2015



The Indian Hume Pipe Co Ltd vs. ACIT (Supreme Court)

S. 147: Verdict of Bombay High Court in The Indian Hume Pipe Co Ltd vs. ACIT 348 ITR 439 that “full & true disclosure of material facts” means “specific” disclosure of “each” fact nullified
The assessee entered into an agreement in July 2001 for sale of development rights for Rs.39 crore. The transfer was in December 2003. The assessee computed LTCG of Rs. 23.19 crore. The assessee invested in eligible bonds between Feb & June 2002 (after the agreement to sell but before the transfer) and claimed exemption u/s 54EC. During the assessment proceedings, the AO asked for a copy of the agreements with the purchaser and other details which the assessee furnished. A copy each of the s. 54EC bonds (which gave the dates of investments) was also furnished. The AO allowed the deduction as claimed. After the expiry of 4 years from the end of the assessment year, the AO issued a notice u/s 148 claiming that as the investments were made prior to the date of transfer (Dec 2003), s. 54EC deduction was not admissible. The assessee filed a Writ Petition to challenge the reopening on the ground that there was no failure on its part to make a full and true disclosure of material facts. The High Court (348 ITR 439) dismissed the Writ on the ground that (i) “Full and true disclosure of material facts” means that the disclosure should not be garbled or hidden in the crevices of the documentary material which has been filed by the assessee with the AO. The assessee must act with candor. A full disclosure is a disclosure of all material facts which does not contain any hidden material or suppression of fact. It must be truthful in all respects and (ii) On facts, though the AO enquired into the matter and the assessee furnished a copy of the s. 54EC bonds (from which the dates of allotment/ investment were evident), there was no (specific) reference by the assessee to the dates on which the amounts were invested in the s. 54EC bonds. It was also held that it was evident that the AO had not applied his mind to the issue of s. 54EC exemption and that the AO was justified in reopening the assessment. On a SLP filed by the assessee to the Supreme Court HELD by the Supreme Court:

Note: The ground that s. 54EC exemption is allowable even to investments made pre-transfer as per Circular No. 359 dated 10.5.1983 and so there can be no “reason to believe” was not argued. Contrast with Kelvinator 256 ITR 1 (Del)(FB) (affirmed in 320 ITR 561 (SC)) where it was held that a s. 143(3) assessment meant that the AO was “deemed to have applied his mind to all aspects” and that a reopening based on “reappraisal of existing material” was not permissible.

Posted: 24 Jan 2015 07:22 PM PST

Jan 18



Govt gags IT on info sharing with media

<> The rationale behind the reported move /decision of the government, if were to be viewed in the larger public /societal interests, cannot be impeached of faulted by any logic. Similar proactive move, long pending but requiring to be looked into and tackled likewise,  concerns areas such as ‘Defence’, ‘Space’, so on; involving  highly  valuable info. and requiring to be kept secret/ in any case not to be made public  prematurely or in intricate details, having regard to mainly its potential /vulnerability to be misused /adversely exploited  by unscrupulous anti-national characters at large.
With the same breath, one is provoked to add that, taking a citizen centric approach, the largely prevailing requirements, and coercively insisted upon , in the guise of proof of personal identity, of address, so on, production of primarily ‘personal’/  ‘private and confidential’  documents  such as  tax PAN, property purchase docts., etc., ought to be put an end to once for all. One has in mind known instances in which even Passport office requires and insists upon, simply for the heck of it, in addition to Aadhar being a sufficient proof, a whole set of other docts.

A Quixot


Department of Justice announces new gag-order deal with ...


How honest are the people of Dubai?


Jan 15

The NDA government has been as ham-handed as the UPA which thrust a messy Companies Act on us

·  ·  ITAT Online
Chief Justice Kapadia: Inspiring Story Of Journey From Clerk To Chief Justice · Transfers ... The Entire Law On Taxation Of Purchases From Suspicious Dealers ...

·  Lawyers Indulge In “Happiness Billing” -


Who will be India's next Central Chief Information Commissioner under RTI?
After nearly six months of keeping the post of Central CIC's post vacant, the screening committee is finally meeting on 16th January to decide a name
refer comment

Online Frauds? Get fast justice from the Cyber Crime Court
ref. comment



Prasad Sangameshwaran 
Marketers began New Year with ASCI rapping them on the knuckles. It could be a worthy resolution for them to stop making misleading ads. »


Social media impact
“There is a thin line between harmless untruths and harmful untruths,” says Madhukar Sabnavis, Vice-Chairman and Country Head, Discovery and Planning, Ogilvy & Mather India. “Consumers are discerning enough to make the difference between hyperbole and tangible benefits. However, if a brand makes a tall claim and is not able to deliver that to consumers in a tangible form, then the brand can get hurt as consumers feel cheated,”
“......However, all this could change with the increasing influence of social media. “This may change in the future because of social media activism by consumers. Misleading ads provide fodder to social media users to blog and tweet,”

Partners in trade


Supreme Court on Corporate Officers’ Criminal Liability 



Loan settlement? Here is what you need to be careful about

loans, borrower, loan settlement, loan repayment, ABN AMRO Bank, NOC, Dadar Police Station, Delhi Police Seven years after he settled a loan, a borrower is being subjected to numerous calls, notices and even arrest warrant. The only mistake, he committed was not to collect the NOC and account statement from the lender after his settlement

<> The reported episode makes for a shockingly disgusting reading. May be, borrower may be regarded to have been callous in failing to collect the NOC. But was it not the basic duty and responsibility of the lender bank to have promptly reached the NOC soon after the settlement of the dues. This is an unadulterated harassment of the customer, often come across repeatedly; the culprit bank should be made to cough up, through its nose, the maximum compensation for the misdemeanor, and its  idiotic persistence.

Alongside, it says, -  “Reforms & Governance under Modi.”  One only hopes that as expected, Modi / the RBI  takes a serious note, if not done, and cries a halt to recurrence of such anti-people instances any longer.

Govt amnesty for buildings without OC - The Times of India

Time has come for the minister (s) to be strongly reminded of, in unequivocal terms, and sufficiently impressed upon, the following discordant and unpalatable facts of life, simple posers:
1.     The mandates required compliance by whom; and who has failed to monitor and enforce compliance?
2.     Why was power or water connection given without a proper verification of the ground reality, such as ‘no OC’, even on day one or at least soon thereafter; not after years, nay decades?
3.     Is it not, if at all, an instance of flagrant contributory negligence of the gravest kind, the primary responsibility and answer-ability to which is traceable to the empowered authorities / “public servants”; and those were the ones who have miserably failed in discharge of duties expected of, by any yardstick ? Hence, those alone are to be penalized?

It is earnestly hoped - by the gullible commoners at large, directly impacted or likely to be, faced with such horrid situations of confrontation, - that the indicated and like facets are mindfully gone into and sincerely given due consideration, by the men in governance, sooner than later.  

   click here.


Gas agencies can’t force customers to link Aadhaar number: Minister


150 HRBR residents get eviction order from BDA

Aparajita Ray |

<>It is simply imagined that, none with a balanced mind, - having common sense , if not convoluted legal sense, to think plainly and seriously, regardless of whether directly impacted or aggrieved , or not, -can disagree but to only agree and fully endorse the Times View (see the inset) sanely advanced for the common good.

As a noted humanitarian par excellence used to lament with extreme  remorse,  our people are,  by and large, ‘low aroused’ , and choose to continue to be so, even in such matters  having far reaching  consequences requiring to be taken a conscious note of and act /pro-act,  in  a public (citizen )- centric  spirit.

Jan 12


Sec 54

 Deduction U/s. 80IB(10) cannot be denied for mere delay in issue of completion certificate by Municipality

<> The view taken, though not for the first time, is to the effect that the prescribed time limit of 2 / 3 years ‘FOR’  'purchase' / 'construction' of a new asset is not to be construed strictly or rigidly, or interpreted in a narrow sense. That is the right or better view should necessary regard be had to the setting /the whole context, with adequate emphasis / stress placed on the crucial word "FOR". Even if considered from a different angle, constructing and completing a new independent house, or purchasing a Flat/Apartment, within time as planned, is not left to the investor- taxpayer; but is subject to or circumscribed by several ifs and buts, mostly resting with the promoter/seller.

As per the scheme of the enactment itself, - in particular, in section 54 OR section 154 / 155 of IT Act, there is no provision hence by necessary implication not envisaged/intended to tax the amount of capital gains or to the extent it has been ‘utilised’ for the purchase or construction. A close reading and understanding of sub-section (2) rw the Proviso thereto lends support.

In the context, it needs a special mention that, the recent SC judgment in  Sanjeev  Lal v CIT is a case, it could be urged,  to support the identical  proposition that section 54 requires to be interpreted by adopting a common sense reasoning, founded on principles of natural justice and a liberal judicial approach.  This aspect has been briefly touched upon in the published article, -(2014) 226 Taxman 143- 150/151.



Towards faster, more inclusive growth

Balancing various concerns That's the key Ajay Bhaskar/


The World Bank president has high hopes of India — and some words of caution as well »


 Tricks Chennai home buyers must watch out for

  1. Chennai: First time homebuyers making most of slowdown
  2. Can’t afford in Velachery? Try Thoraipakkam
  3. Yearender: 2014 posed formidable challenges to Chennai realty
  4. In pics: Latest Chennai real estate trends
Jan 11


A bad settlement is always better than a good judgment that gives all the relief sought.

Conflict is inevitable, but combat is optional.
— Max Lucade


Rajan hails govt statement on functional freedom for banks

PSBs have to work out their own capital raising options

Dec 9

 General Anti Avoidance Rules (GAAR) Unveiled


Watch your vastu

When you cross the limits of freedom of speech

Beyond Gyan Sangam, banking revamp possible without big bang reforms

The science of day-dreaming, or how we forgot how to fly

Spiritual Articles - SpeakingTree <      

No comments:

Post a Comment