Direct tax Weekly Digest

Weekly Digest #22 30 May to 05 Jun 2020 2 Rulings

Income tax Appellate Tribunal ITAT:Upholds Sec.14A disallowance on strategic investment made in Dabur; Cites SC Maxopp ruling

Jun 04, 2020

In Favour of : Revenue
Citation Number : TS-257-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Upholds interest levy on TCS-default though taxes paid by buyers; Cites specific levy u/s. 206C(7)

Jun 05, 2020

In Favour of : Both, Partially
Citation Number : TS-263-ITAT-2020(JPR)

Weekly Digest #21 23 May to 29 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Allows deduction of bank charges against interest income u/s. 57(1)

May 26, 2020

In Favour of : Assessee
Citation Number : TS-245-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Movie distributor's 'minimum guarantee royalty' payment not Royalty u/s. 9(1)(vi); No TDS liability thereon

May 29, 2020

In Favour of : Assessee
Citation Number : TS-250-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition u/s. 68 to extent of gross receipts from medical practice citing double addition

May 29, 2020

In Favour of : Both, Partially
Citation Number : TS-251-ITAT-2020(DEL)

Weekly Digest #20 16 May to 22 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Extends stay of demand citing HC-Directive owing to COVID-19 induced extraordinary circumstances”

May 22, 2020

In Favour of : Assessee
Citation Number : TS-241-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Assessment Order passed u/s.153A passed without valid approval, null and void

May 22, 2020

In Favour of : Assessee
Citation Number : TS-242-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Maintenance Income taxable as IFOS not House property income; Maintenance charges deductible

May 22, 2020

In Favour of : Assessee
Citation Number : TS-243-ITAT-2020(DEL)

Weekly Digest #19 09 May to 15 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Limitation period for Sec.263 starts from original assessment w.r.t matters not dealt in reassessment

May 15, 2020

In Favour of : Assessee
Citation Number : TS-232-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Investment in company with dissimilar object, a capital asset; Write-off thereof not business loss

May 15, 2020

In Favour of : Revenue
Citation Number : TS-233-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Company eligible for TDS-credit w.r.t commission received by director on its behalf

May 15, 2020

In Favour of : Assessee
Citation Number : TS-234-ITAT-2020(Mum)

Weekly Digest #18 25 Apr to 08 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Penalty levy u/s 271AAA after initiation of penalty u/s 271(1)(c), impermissible

May 08, 2020

In Favour of : Assessee
Citation Number : TS-224-ITAT-2020(VIZ)

Income tax Appellate Tribunal ITAT:CIT(E) to record reasons for accepting/rejecting request for condonation of delay in seeking Sec.12AA registration

May 08, 2020

In Favour of : Assessee
Citation Number : TS-226-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:No capital gains taxation for assessee on property sale by GPA-holder of transferred property

May 08, 2020

In Favour of : Assessee
Citation Number : TS-227-ITAT-2020(HYD)

Weekly Digest #17 18 Apr to 24 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Allows Sec.37 deduction on forex loss arising on recovery of loan from foreign subsidiary

Apr 24, 2020

In Favour of : Assessee
Citation Number : TS-208-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:'Ownership' of more than one residential house renders deduction u/s.54F ineligible; 'Possession' irrelevant

Apr 24, 2020

In Favour of : Revenue
Citation Number : TS-209-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:No deduction u/s.80-IB(10) to builder absent completion certificate from concerned authority

Apr 24, 2020

In Favour of : Revenue
Citation Number : TS-210-ITAT-2020(PUN)

Weekly Digest #16 10 Apr to 17 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Deletes disallowance u/s 36(1)(ii) for commission paid to shareholder-director as per terms of employment

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-203-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Vacant land purchased by separate deed, 'appurtenant' to residential building; Allows deduction u/s.54

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-204-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Finance Act 2016 amendment to Sec.50C, retrospective; 'Agreement to sell' date relevant for adopting guideline value

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-205-ITAT-2020(CHNY)

Weekly Digest #15 04 Apr to 09 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Saddles cost on assessee for failure to intimate change of address, rejects notice 'non-service' plea

Apr 09, 2020

In Favour of : Both, Partially
Citation Number : TS-198-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Payments to lorry/truck owners from market not subject to TDS u/s. 194C absent contract

Apr 09, 2020

In Favour of : Assessee
Citation Number : TS-200-ITAT-2020(Kol)

High Court HC:Income from Pharmacy incidental to dominant purpose of running hospital; Rejects invocation of Sec.11(4A)

Apr 09, 2020

In Favour of : Assessee
Citation Number : TS-201-HC-2020(BOM)

Weekly Digest #14 28 Mar to 03 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT: Partner's property lease to firm not 'transfer' u/s.45(3) absent recording as 'contribution' in firm's books

Mar 31, 2020

In Favour of : Assessee
Citation Number : TS-190-ITAT-2020(ASR)

Income tax Appellate Tribunal ITAT:Wealth Tax provision not required to be added back for book profit computation u/s.115JB

Apr 03, 2020

In Favour of : Assessee
Citation Number : TS-193-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Deletes penalty levy on Deloitte sans specific charge mention in notice u/s.274 r.w.s. 271(1)(c)

Apr 03, 2020

In Favour of : Assessee
Citation Number : TS-195-ITAT-2020(DEL)

Weekly Digest #13 22 Mar to 27 Mar 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Imposes cost on assessee for availing appellate remedy and revision u/s. 264 simultaneously

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-185-ITAT-2020(Rjt)

Income tax Appellate Tribunal ITAT:Allows deduction u/s 57(iii) w.r.t interest expenditure incurred 'for the purpose' of earning income

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-186-ITAT-2020(DEL)

High Court HC:Quashes prosecution proceedings u/s.276D for non-production of cash book absent order for retention

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-188-HC-2020(P & H)

Income tax Appellate Tribunal ITAT:Disallows sole-proprietor's higher education expenses claim u/s. 37(1) incurred prior to business commencement

Mar 27, 2020

In Favour of : Revenue
Citation Number : TS-187-ITAT-2020(JPR)

High Court HC:Stay application rejected without application of mind, unsustainable; Directs AO to decide afresh on merits

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-189-HC-2020(BOM)

Weekly Digest #12 14 Mar to 21 Mar 2020 5 Rulings

High Court HC:Essar Shipping's loan waiver, not taxable u/s 28(iv);Cites Mahindra & Mahindra's SC decision

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-171-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Third Member - Deletes penalty u/s.271(1)(c) levied based on addition deleted by AO

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-173-ITAT-2020(ASR)

Income tax Appellate Tribunal ITAT: Allows appeal withdrawal to assessee availing benefit of 'Vivad se Vishwas' scheme

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-175-ITAT-2020(DEL)

High Court HC:Property sale proceeds taxable as 'business income' for assessee engaged in 'buying & selling properties'

Mar 20, 2020

In Favour of : Revenue
Citation Number : TS-176-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Perpetually leased property, covered u/s.55(2)(b); Entitled for 1981-FMV substitution

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-177-ITAT-2020(Mum)

Weekly Digest #11 01 Jan to 13 Mar 2020 9 Rulings

Income tax Appellate Tribunal ITAT:Provision for gratuity, an 'ascertained liability' for computing book profits u/s 115JB

Mar 11, 2020

In Favour of : Assessee
Citation Number : TS-146-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Scientifically computed warranty provision, not contingent liability; Allows deduction u/s 37 to Lenovo India

Mar 12, 2020

In Favour of : Assessee
Citation Number : TS-150-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Compensation received for not letting-out property for specified period, taxable as IFOS

Mar 12, 2020

In Favour of : Assessee
Citation Number : TS-151-ITAT-2020(Mum)

High Court HC:Interest paid by taxpayer for delay in allotment of shares, CAPEX not Revenue

Mar 12, 2020

In Favour of : Revenue
Citation Number : TS-153-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Education cess, not 'tax' for Sec.40(a)(ii) purposes; Deletes disallowance citing Chambal Fertilizers HC-ruling

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-154-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Allows deduction for loss suffered due to fraud and embezzlement by employee of assessee-bank

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-155-ITAT-2020(NAG)

Income tax Appellate Tribunal ITAT:Transfer of property through GPA by assessee in children's favour, not 'transfer' attracting capital gains

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-157-ITAT-2020(HYD)

Income tax Appellate Tribunal ITAT:Mere non-furnishing of TRC cannot deny treaty benefits; Cites Skaps Industries ruling

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-158-ITAT-2020(HYD)

Income tax Appellate Tribunal ITAT: "Internal decision” taken between related concerns, no ground for allowing advances write-off claim

Mar 13, 2020

In Favour of : Revenue
Citation Number : TS-160-ITAT-2020(Bang)

Weekly Digest #10 29 Feb to 07 Mar 2020 5 Rulings

Income tax Appellate Tribunal ITAT:RCB's contribution to cricket academy related to its business interest; Allows deduction u/s 37

Mar 05, 2020

In Favour of : Assessee
Citation Number : TS-128-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT: Allows insurance premium deduction for long term reward program” policy akin to keyman” policy terms/purpose

Mar 06, 2020

In Favour of : Assessee
Citation Number : TS-130-ITAT-2020(SUR)

Income tax Appellate Tribunal ITAT:Quashes final assessment order passed sans draft-order in remand proceedings; Follows precedents

Mar 06, 2020

In Favour of : Assessee
Citation Number : TS-132-ITAT-2020(PUN)

Income tax Appellate Tribunal ITAT:Rejects Sec. 37(1) Explanation invocation regarding assessee-seller's payments for failure to meet contractual obligations

Mar 06, 2020

In Favour of : Assessee
Citation Number : TS-844-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:Abnormal increase in cost, no ground for treating revenue expenditure as capital; Allows Sec.37 deduction

Mar 07, 2020

In Favour of : Assessee
Citation Number : TS-135-ITAT-2020(Mum)

Weekly Digest #9 22 Feb to 28 Feb 2020 5 Rulings

Income tax Appellate Tribunal ITAT: Assessment on non-existing amalgamated entity void-ab-initio & unsustainable; Follows Maruti Suzuki SC-ruling

Feb 28, 2020

In Favour of : Assessee
Citation Number : TS-110-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT: Accepts assessee's 'Vivad se Vishwas scheme' availment plea; Dismisses appeal

Feb 28, 2020

In Favour of : Assessee
Citation Number : TS-111-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT: Confirms addition of unexplained cash credits; Jewellery sale, an afterthought and sham

Feb 28, 2020

In Favour of : Revenue
Citation Number : TS-112-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Allows deduction for service tax on accrual basis despite non-payment

Feb 28, 2020

In Favour of : Assessee
Citation Number : TS-114-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Quashes AO's Sec. 201-order as time barred; Cites pre-2014 amendment

Feb 28, 2020

In Favour of : Assessee
Citation Number : TS-113-ITAT-2020(CHNY)

Weekly Digest #8 15 Feb to 21 Feb 2020 8 Rulings

Income tax Appellate Tribunal ITAT: Sets aside CIT(A) order dismissing assessee's manually filed appeal, directs adjudication on merits

Feb 18, 2020

In Favour of : Assessee
Citation Number : TS-87-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Sec.142A amendment vide Finance Act 2014, not retrospective; Quashes DVO reference without rejection of books

Feb 21, 2020

In Favour of : Assessee
Citation Number : TS-92-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Condones over 3yrs delay in appeal filing before CIT(A), absent order u/s.264 despite time-limit expiry

Feb 21, 2020

In Favour of : Assessee
Citation Number : TS-93-ITAT-2020(PUN)

Income tax Appellate Tribunal ITAT:Gold originally belonging to deceased-father subsequently introduced into assessee's business, not taxable u/s. 41

Feb 21, 2020

In Favour of : Assessee
Citation Number : TS-96-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Assessee's failure to intimate adjustment of seized cash entitles Revenue to levy interest

Feb 21, 2020

In Favour of : Revenue
Citation Number : TS-97-ITAT-2020(ASR)

High Court HC:Upholds ITAT-order; Allows deduction for legal expenses incurred w.r.t sale of 'capital' assets

Feb 21, 2020

In Favour of : Assessee
Citation Number : TS-98-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Deletes interest levy u/s. 201(1A); 'Online' TDS payment date, not actual credit on 'OLTAS', relevant

Feb 21, 2020

In Favour of : Assessee
Citation Number : TS-99-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Possession of qualified degree” not mandatory for applying Sec.44AA provisions; Confirms Sec.271A penalty

Feb 21, 2020

In Favour of : Revenue
Citation Number : TS-100-ITAT-2020(CTK)

Weekly Digest #7 08 Feb to 14 Feb 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Testing fees paid to Netherland Co. not FTS, absent 'make available'; TDS u/s 195 inapplicable

Feb 14, 2020

In Favour of : Assessee
Citation Number : TS-79-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Widening of scope of limited scrutiny without PCIT's prior approval, invalid; Deletes addition u/s 43CA

Feb 14, 2020

In Favour of : Assessee
Citation Number : TS-80-ITAT-2020(DEL)

High Court HC:Compensation under Land Acquisition Act not taxable; Refers to Circular 36/2016, Sec.194LA

Feb 14, 2020

In Favour of : Assessee
Citation Number : TS-842-HC-2019(KER)

Income tax Appellate Tribunal ITAT:Third Member - Grants registration u/s. 12AA; Registration with Registrar of Society not a precondition

Feb 13, 2020

In Favour of : Assessee
Citation Number : TS-78-ITAT-2020(ASR)

High Court HC:Restores MMRDA's registration u/s.12AA absent finding on non-genuine activities; Rejects invocation of Sec.2(15) proviso

Feb 14, 2020

In Favour of : Assessee
Citation Number : TS-82-HC-2020(BOM)

Weekly Digest #6 01 Feb to 07 Feb 2020 6 Rulings

High Court HC: Dismisses Revenue's appeal against deletion of penalty on Rajinikanth citing low tax effect

Feb 06, 2020

In Favour of : Assessee
Citation Number : TS-62-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:Sec.54F exemption available against new property purchased in spouse's name

Feb 07, 2020

In Favour of : Assessee
Citation Number : TS-64-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Land purchased in director's name but recorded in company's financials, not 'deemed dividend'

Feb 07, 2020

In Favour of : Assessee
Citation Number : TS-65-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:Quashes reassessment absent 'reason to believe' based on fresh tangible material

Feb 07, 2020

In Favour of : Assessee
Citation Number : TS-66-ITAT-2020(Kol)

High Court HC: Deletes addition u/s. 68, cites assessee's discharge of onus of 3 essential ingredients; Distinguishes NRA SC-ruling

Feb 07, 2020

In Favour of : Assessee
Citation Number : TS-67-HC-2020(BOM)

Supreme Court SC:Dismisses NRA's review petition against earlier judgment confirming addition u/s. 68 towards share application money

Feb 07, 2020

In Favour of : Revenue
Citation Number : TS-68-SC-2020

Weekly Digest #5 25 Jan to 31 Jan 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Gives effect to Third Member order, allows admission of additional evidence

Jan 27, 2020

In Favour of : Assessee
Citation Number : TS-42-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Employer cant escape from both - FBT & TDS liabilities on free electricity supply to employees

Jan 28, 2020

In Favour of : Revenue
Citation Number : TS-47-ITAT-2020(JAB)

High Court HC:Karnataka HC agrees with Bombay HC, MAT inapplicable to banking companies

Jan 30, 2020

In Favour of : Assessee
Citation Number : TS-51-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Upholds assessee's status as Trust, not AOP; Accepts taxation of income in sole-beneficiary's hands

Jan 31, 2020

In Favour of : Assessee
Citation Number : TS-54-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Denies immunity from penalty levy despite no specific charge in penalty notice

Jan 31, 2020

In Favour of : Revenue
Citation Number : TS-55-ITAT-2020(Rjt)

Weekly Digest #4 18 Jan to 24 Jan 2020 5 Rulings

Income tax Appellate Tribunal ITAT: Allows set-off of expenditure/losses against 'deemed income' declared upon survey

Jan 21, 2020

In Favour of : Assessee
Citation Number : TS-30-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Allows set-off of spouse's full F&O 'loss' clubbed in assessee's hands u/s. 64

Jan 22, 2020

In Favour of : Assessee
Citation Number : TS-33-ITAT-2020(PUN)

Income tax Appellate Tribunal ITAT:Trust entitled to carry forward excess income application to later years u/s.11

Jan 24, 2020

In Favour of : Assessee
Citation Number : TS-37-ITAT-2020(DEL)

High Court HC: Upholds ITAT order holding income from operation of shopping mall as business income

Jan 24, 2020

In Favour of : Assessee
Citation Number : TS-39-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Sec.43A not applicable to forex utilisation for acquisition of assets in India

Jan 24, 2020

In Favour of : Assessee
Citation Number : TS-40-ITAT-2020(PUN)

Weekly Digest #3 11 Jan to 17 Jan 2020 10 Rulings

Supreme Court SC:Dismisses SLP against HC's allowance of forex loss on subsidiary-loan recovery

Jan 14, 2020

In Favour of : Assessee
Citation Number : TS-10-SC-2020

Income tax Appellate Tribunal ITAT:Treats non-compliance with 4 notices u/s. 142(1) as 'one default' u/s.271(1)(b) when same information sought

Jan 16, 2020

In Favour of : Both, Partially
Citation Number : TS-12-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:Discount earned on FCCB buyback, a non-taxable capital receipt; Rejects AO's trading receipt” plea

Jan 16, 2020

In Favour of : Assessee
Citation Number : TS-15-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Sec. 272B penalty linked to deductor, number of deductees irrelevant; Relies on jurisdictional HC-ruling

Jan 17, 2020

In Favour of : Both, Partially
Citation Number : TS-17-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Deletes Pepsico India's AMP-adjustment; HC appeal doesn't render earlier Tribunal-order invalid

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-18-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:TDS and corresponding income inextricably linked; TDS credit available in year of assessing income

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-19-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT: Share-application money until allotment is capital borrowed; Interest paid thereon allowable u/s 36(1)(iii)

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-22-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Considers final-order sans draft assessment-order as incurable defect for 'eligible assessee' u/s144C

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-23-ITAT-2020(COCH)

Income tax Appellate Tribunal ITAT: ITAT:Dismisses Revenue's-appeal against penalty deletion as infructuous considering penalty re-initiation post MAP-resolution

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-21-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Mitsui's offshore supplies income, non-taxable; Relies on LG Cable [Delhi HC]

Jan 17, 2020

In Favour of : Assessee
Citation Number : TS-24-ITAT-2020(DEL)