ITAT : Medical college collecting money for admission / employment assurance ineligible for charitable exemption 
Sree Anjaneya Medical Trust
August 20 2014
ITAT denies Sec 12AA registration to assessee trust (having object of establishing medical college); Assessee’s action of collecting money from prospective employees and students on assurance of...View more

ITAT : Rejects 14A disallowance on ‘presumption’; AO can't apply Rule 8D formula mechanically 
Iqbal M Chagala
August 20 2014
ITAT deletes Sec 14A disallowance, quashes AO’s Sec 14A application based on ‘presumption’ that administrative expenses like telephone / salary would have been incurred for earning e...View more

ITAT : Distinguishes Rule 8D(2)(i) from Rule 8D(2)(iii); Deletes Sec 14A disallowance against fund management fees 
Bellwether Microfinance Fund Pvt. Ltd
August 19 2014
ITAT deletes disallowance u/s 14A r.w. Rule 8D(2)(i) for fund management fees; Expenditure relating to investment not yielding exempt income cannot be disallowed under clause (i) to Rule 8D(2); Notes ...View more

SC : Confirms HC’s order holding assessee not-in-default for "debatable” expatriates’ salary 
NHK Japan Corp. M/S Eli Lilly & CO.(I)LD
August 19 2014
SC approves Delhi HC judgment, dismisses Revenue’s SLP; HC had held that assessee cannot be regarded as ‘assessee in default’ u/s 201 for non-deduction of tax at source on “deb...View more

HC : Depreciation not implicit under Rule 10; Actual allowance relevant for determining post-amalgamation WDV 
Rhone-Poulenc (India) Ltd.
August 19 2014
Indian company taking over assets of Indian branch of foreign company (in year 1975), entitled to depreciation on WDV determined under scheme of amalgamation (being cost less depreciation actually all...View more

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Madhya Pradesh HC also grants interim stay on Sec 234E recovery proceedings

August 18 2014
Madhya Pradesh HC issues notice to IT Dept. over assessee’s writ petition challenging validity of Sec 234E (which levies mandatory fee on TDS deductor for delay in submitting TDS returns); In ...View more

SC : Stays Karnataka HC order dismissing assessee’s writ against ‘reassessment initiation’

August 12 2014
SC stays operation and implementation of Karnataka HC ruling; Karnataka HC division bench dismissed assessee’s writ petition challenging reassessment notice and AO’s order rejecting assess...View more

SC stays adverse Madras HC ruling on re-assessment challenge vide 'writ' petition

August 11 2014
SC stays adverse Madras HC ruling on re-assessment challenge vide 'writ' petition: Sources ...View more

HC : Admits appeal on effective connection of Japanese assessee's FTS income to Indian PE

August 06 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in case of Nippon Kaiji Kyokoi (a Japanese entity engaged in providing inspection and certification services to marine industry); Uph...View more

HC: Admits Revenue’s appeal on validity of reassessment against Sec 143(1) assessment

August 05 2014
Bombay HC admits Revenue’s appeal against Mumbai ITAT ruling in H.V. Transmissions Ltd.’s case; ITAT had quashed reassessment against original summary assessment u/s 143(1), absent "tangib...View more

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HC : Following Gujarat HC, Karnataka HC holds Sec 40(a)(ia) amendment extending TDS time limit retrospective 
Santosh Kumar Shetty & Ors
July 31 2014
HC rules that Finance Act, 2010 amendment to Sec 40(a)(ia), which provides for deductibility of expenditure if TDS paid within return filing due date, is retrospective in nature; Amendment is curative...View more

ITAT : Can't hold entire slump sale as sham if valuation report defective 
Saipem Triune Engineering Pvt. Ltd.
July 30 2014
ITAT reverses CIT(A)’s order, holds slump sale agreement between parties having common promoter, for purchase of design engineering business by assessee, not ‘sham’; Even if slump sa...View more

New Form 3CD overhauls reporting of TDS compliances / defaults, increases disclosure requirements
July 29 2014
CBDT revises format of Tax Audit Report in Form 3CD with effect from July 25, 2014;  Revised format has amended existing / added new clauses to improve / increase disclosure requirement...View more

HC : Sec 244A interest taxable on ‘receipt’ basis notwithstanding pendency of appeals 
Venkatesh Dutt
July 28 2014
HC confirms income addition, holds interest received on tax refund u/s 244A taxable in year of receipt, notwithstanding pendency of appeal; Rejects assessee’s argument that interest income an un...View more

Kar HC disapproves ITAT SB ratio in Alcargo on re-assessment scope
July 26 2014
Kar HC rules re-assessment need not be confined to material seized during course of search, in relation to proceedings u/s 153A ; Once assessment is re-opened u/s 153A, it is "open at large"; Principl...View more

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CBDT orders transfer of 79 officers at Deputy & Assistant Commissioner level with immediate effect

August 19 2014
Click below to read and download CBDT Order. ...View more

CBDT announces transfer of 65 ACIT/JCITs with immediate effect

August 18 2014
CBDT announces transfers/ postings of 65 ACIT/ JCITs with immediate effect, majority transfers are from Delhi and Mumbai; Officers to be relieved by August 25, 2014 Click below to read and downl...View more

HC: Explains law on 'trade discount' treatment as 'commission' for Sec. 194H TDS

August 14 2014
HC rules that in case of trade discount extended by manufacturer or supplier to distributor, no commission contemplated & hence no TDS required u/s 194H; However, if the books of accounts reflect ...View more

Fin Min annual report reveals bleak litigation stats; PAN to be 'national identifier'

August 14 2014
Finance Ministry releases Annual Report for FY 2013-14; Over 21,000 appeals filed at ITAT, HC & SC till Dec. 2013, total cases pending at 69,000 as on Apr 1, 2013; Rs 90,000 crores of undisclosed ...View more

CBDT reconstitutes DRP at Mumbai & Pune

August 14 2014
CBDT reconstitutes Disputes Resolution Panel (DRP) at Mumbai (DRP - 1) and Pune ...View more

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CBDT announces transfer of 65 ACIT/JCITs with immediate effect
August 18 2014
CBDT announces transfers/ postings of 65 ACIT/ JCITs with immediate effect, majority transfers are from Delhi and Mumbai; Officers to be relieved by August 25, 2014 Click below to read and downl...View more

HC: Explains law on 'trade discount' treatment as 'commission' for Sec. 194H TDS
August 14 2014
HC rules that in case of trade discount extended by manufacturer or supplier to distributor, no commission contemplated & hence no TDS required u/s 194H; However, if the books of accounts reflect ...View more

SC order copy staying re-assessments pursuant to Madras HC judgment in Kalanithi Maran
August 13 2014
Apex Court stays re-assessments pursuant to Madras HC judgment in Kalanithi Maran & Ors, issues notice to Revenue returnable in 10 weeks : SC ...View more

SC : Dismisses assessee’s SLP; HC held habitual dealer's share trading as business 
Manoj Kumar Samdaria
August 18 2014
SC dismisses assessee’s SLP against Delhi HC decision; Delhi HC held share sale income as business income and not as short term capital gains; Inspite of assessee’s commercial activity not...View more

HC : Allows Sec 54 exemption though new property possession not received within 2 years 
Kuldeep Singh
August 18 2014
Ascribing wider meaning to ‘purchase’ u/s 54, HC holds that just entering into purchase agreement for new house and not getting possession of property would come under the ambit of ‘...View more