Daily Archives: October 20, 2015

Non disclosure of cost formula used for inventory valuation is violation of AS-2

By | October 20, 2015

A leading construction company has disclosed its accounting policy regarding valuation of inventory as raw materials, work-in-progress and store & spares are valued at cost or net realisable value, whichever is lower. It has not disclosed cost formula used for valuation. Whether, the disclosure of accounting policy regarding valuation of inventory made by the company… Read More »

Reasons recorded to be supplied for income which escaped assessment

By | October 20, 2015

Whether it is absolutely necessary that reasons recorded for formation of belief that income of assessee has escaped assessment, are supplied to assessee so that he may be in position to question legality of re-assessment proceedings initiated on all available grounds ? Held, yes  Whether where Assessing Officer issued reassessment notice to assessee but reasons… Read More »

In case of fraud also recovery can not be made beyond 5 years of relevant date under section 11A

By | October 20, 2015

Period April, 2002 to January, 2003 Facts of the Case :- On ground of fraudulent procurement of inputs under bond without payment of duty claiming an Exemption Notification, Department issued notice dated 27-11-2009 . Issue :- Assessee argued that notice was time-barred, being beyond 5 years from relevant date  Tribunal held that department came to… Read More »

Assessee not deemed owner of Properties Clubbed under section 64(1A) which has been purchased from Independent Sources

By | October 20, 2015

  Facts of the Case ;- Assessee sold capital assets and invested a part of it in a new residential house and claimed exemption under section 54F . Issue : Commissioner disallowed same by holding that assessee owned more than one residential houses on date of transfer of original asset . Held Even if, incomes… Read More »

Payment to retiring partner above his capital is depreciable as goodwill

By | October 20, 2015

Facts of the  Case :- Assessee firm made payments to retiring partners over and above their capital in firm for acquiring commercial rights and disclosed as goodwill . Issue : Assessee claimed depreciation on said goodwill  Assessing Officer was of view that assessee was not eligible to claim depreciation of goodwill and accordingly disallowed claim… Read More »