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BHARGAV D. KARIA, NIRAL R. MEHTA
Kilburn Chemicals Limited – Appellant
Versus
Deputy Director Of Income Tax – Respondent
ORDER :
BHARGAV D. KARIA
1. Heard learned advocate Mr. Dhinal Shah for the petitioner and learned advocate Mr. Dev D. Patel for learned Senior Standing Counsel Mr. Varun Patel for the respondents.
2. Rule returnable forthwith. Learned advocate Mr. Patel waives service of notice of Rule for the respondents.
3. Having regard to the controversy in the narrow compass arising in this petition and with the consent of the respective learned advocates appearing for the parties, the matter is taken up for hearing.
4. The brief facts of the case are that the petitioner a public limited company registered under the provisions of the Companies Act filed return of income for the Assessment Year 2022-23 declaring total income of ‘Nil’. Subsequently, a revised return was filed on 31st December 2022.
4.1. It is the case of the petitioner that initially, the petitioner carried on business from Calcutta and subsequently, the petitioner was admitted under the Insolvency and Bankruptcy Resolution Plan under the provisions of Insolvency and Bankruptcy Code, 2016. Such plan was approved by the National Company Law Tribunal, Calcutta vide order dated 16th December 2021, by which the Meghmani Organics Limited w
Exceptional items from a resolution plan do not count as gross receipts under Section 44AB, thus invalidating the order declaring the return defective.
Excess provisions written back do not constitute 'gross receipts' under Section 44AB, thus not necessitating a Tax Audit Report.
Compliance with statutory requirements under Income Tax Act is essential even if a party claims misunderstanding; genuine hardship must be assessed to condone filing delays.
The absence of reasons in administrative orders violates natural justice, necessitating adherence to fair play and the exhaustion of alternate remedies before judicial intervention.
The main legal point established in the judgment is that remuneration received as a working partner from a partnership firm cannot be considered as gross receipts in profession under Section 44AB of ....
The denial of tax exemption based on non-filing of required reports can be a curable defect, emphasizing tax on income rather than on total receipts.
The imposition of penalty under Section 271B is unjustified if the assessee demonstrates a reasonable cause for non-compliance with audit requirements.
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