Direct tax Weekly Digest

Weekly Digest #13 30 Mar to 05 Apr 2019 3 Rulings

Income tax Appellate Tribunal ITAT:Sets-aside AO's order rejecting FMV, directs AO for DVO report

Apr 03, 2019

In Favour of : Assessee
Citation Number : TS-169-ITAT-2019(CHANDI)

High Court HC:Grants Sec. 80IA(4) benefit to sub-contractor for development/maintenance of railway siding

Apr 05, 2019

In Favour of : Assessee
Citation Number : TS-175-HC-2019(MAD)

High Court HC:Grants charitable exemption; Golf club's activities not in the nature of business

Apr 05, 2019

In Favour of : Assessee
Citation Number : TS-176-HC-2019(BOM)

Weekly Digest #12 23 Mar to 29 Mar 2019 5 Rulings

High Court HC:Dismisses Revenue's appeal on grounds urged for first time before Court

Mar 29, 2019

In Favour of : Assessee
Citation Number : TS-159-HC-2019(UTT)

Income tax Appellate Tribunal ITAT:Upholds Sec.263-order; Cites AO's non-examination of sale consideration through Sec. 50C lens

Mar 25, 2019

In Favour of : Both, Partially
Citation Number : TS-144-ITAT-2019(Ahd)

High Court HC:Allows deduction u/s 42 to Oil Exploration Company for expenditure on surrender of contract

Mar 29, 2019

In Favour of : Assessee
Citation Number : TS-162-HC-2019(BOM)

Income tax Appellate Tribunal ITAT:Rules TDS deduction liability ceases on receipt of PAN u/s.194C(6), sec.194C(7) compliance irrelevant

Mar 26, 2019

In Favour of : Assessee
Citation Number : TS-146-ITAT-2019(JPR)

Supreme Court SC:Dismisses SLP against HC's denial of 'retrospective' registration grant u/s. 12A to Kerala Cricket Association

Mar 29, 2019

In Favour of : Revenue
Citation Number : TS-163-SC-2019

Weekly Digest #11 16 Mar to 22 Mar 2019 5 Rulings

Income tax Appellate Tribunal ITAT:Magician-assessee's trick fails; Denies Sec. 80-RR deduction on 'gross foreign receipts'

Mar 20, 2019

In Favour of : Revenue
Citation Number : TS-132-ITAT-2019(COCH)

High Court HC:JDA transfer triggers when approvals received, not when license granted to developer

Mar 22, 2019

In Favour of : Assessee
Citation Number : TS-139-HC-2019(MAD)

Income tax Appellate Tribunal ITAT:Allows future development expenses in respect of completed projects to real estate developer

Mar 22, 2019

In Favour of : Assessee
Citation Number : TS-137-ITAT-2019(Kol)

High Court HC:Allows interest recognition under hire-purchase on EMI basis

Mar 22, 2019

In Favour of : Assessee
Citation Number : TS-138-HC-2019(MAD)

Income tax Appellate Tribunal ITAT:Providing concessional housing to economically weaker sections qualifies as 'relief of poor'; Allows exemption u/s. 11

Mar 22, 2019

In Favour of : Assessee
Citation Number : TS-140-ITAT-2019(Bang)

Weekly Digest #10 09 Mar to 15 Mar 2019 3 Rulings

Income tax Appellate Tribunal ITAT:Rules each new film not akin to splitting/reconstruction of existing business u/s 80IA(2)

Mar 15, 2019

In Favour of : Assessee
Citation Number : TS-124-ITAT-2019(CHNY)

Income tax Appellate Tribunal ITAT:Allows Sec.10AA deduction on FD Interest placed as margin money

Mar 15, 2019

In Favour of : Assessee
Citation Number : TS-123-ITAT-2019(Ahd)

High Court HC:Quashes re-opening on Cyprus-entity initiated based on subsequent year assessment

Mar 15, 2019

In Favour of : Assessee
Citation Number : TS-126-HC-2019(BOM)

Weekly Digest #9 02 Mar to 08 Mar 2019 3 Rulings

Income tax Appellate Tribunal ITAT:Subsidy for reimbursement of interest to catalyse textile industry - capital receipt

Feb 25, 2019

In Favour of : Assessee
Citation Number : TS-83-ITAT-2019(Ahd)

High Court HC:Classifies Bank as 'industrial undertaking'; Allows amortization of share-issue expenses u/s. 35D

Mar 08, 2019

In Favour of : Assessee
Citation Number : TS-777-HC-2018(KER)

Income tax Appellate Tribunal ITAT:High premium charged by assessee no ground for making addition u/s 68

Mar 08, 2019

In Favour of : Assessee
Citation Number : TS-111-ITAT-2019(Mum)

Weekly Digest #8 23 Sep to 01 Mar 2019 6 Rulings

Supreme Court SC:Dismisses SLP against HC quashing re-assessment based on 'Factual error' pointed out by Audit party

Feb 27, 2019

In Favour of : Assessee
Citation Number : TS-89-SC-2019

Income tax Appellate Tribunal ITAT:Disallows co-op. society's contribution to education fund under Karnataka Co-operative Societies Act

Feb 27, 2019

In Favour of : Revenue
Citation Number : TS-91-ITAT-2019(Bang)

High Court HC:Mere 'individual' asset-valuation cannot reject 'Slump-sale' basis for sale of CRM division

Mar 01, 2019

In Favour of : Assessee
Citation Number : TS-97-HC-2019(BOM)

Income tax Appellate Tribunal ITAT:Allows Revenue's MA; Recalls earlier order granting Sec. 80-IB benefit despite belated return filing

Mar 01, 2019

In Favour of : Assessee
Citation Number : TS-98-ITAT-2019(PUN)

High Court HC:Upholds ITAT; Non-compete fees paid to employees is revenue expense

Mar 01, 2019

In Favour of : Assessee
Citation Number : TS-776-HC-2018(P & H)

High Court HC:Assessment notices not duly served where postal endorsements read as not known” & abolished”

Feb 27, 2019

In Favour of : Assessee
Citation Number : TS-90-HC-2019(KER)

Weekly Digest #7 16 Feb to 22 Feb 2019 5 Rulings

Income tax Appellate Tribunal ITAT:Dismisses Revenue's Miscellaneous Application (MA) in Google Ireland's case

Feb 22, 2019

In Favour of : Assessee
Citation Number : TS-79-ITAT-2019(Bang)

Income tax Appellate Tribunal ITAT:Allows 10AA deduction on interest on FDRs kept as margin money

Feb 20, 2019

In Favour of : Assessee
Citation Number : TS-72-ITAT-2019(Ahd)

Income tax Appellate Tribunal ITAT:No further profit attribution to Indian agency PE where commission on arm's length

Feb 20, 2019

In Favour of : Assessee
Citation Number : TS-74-ITAT-2019(Mum)

Income tax Appellate Tribunal ITAT:CIT(A) obliged to dispose case on merits u/s 250(6), despite non-prosecution by assessee

Feb 22, 2019

In Favour of : Assessee
Citation Number : TS-77-ITAT-2019(Mum)

Supreme Court SC:Condones Revenue's delay of 290 days caused due to non-communication by Standing Counsel

Feb 22, 2019

In Favour of : Assessee
Citation Number : TS-81-SC-2019

Weekly Digest #6 09 Feb to 15 Feb 2019 6 Rulings

High Court HC:Quashes ITAT's reliance on Court judgment holding 'no substantial question of law arises'

Feb 13, 2019

In Favour of : Assessee
Citation Number : TS-58-HC-2019(KAR)

High Court HC:Upholds reopening beyond 4 years; Additional material indicates lack of true disclosure

Feb 15, 2019

In Favour of : Revenue
Citation Number : TS-65-HC-2019(BOM)

High Court HC:Quashes assessment u/s 153C absent proper satisfaction note by AO of searched-person

Feb 14, 2019

In Favour of : Assessee
Citation Number : TS-61-HC-2019(KAR)

Income tax Appellate Tribunal ITAT:Fresh evidence after passing ITAT order not ground to entertain miscellaneous petition

Feb 14, 2019

In Favour of : Assessee
Citation Number : TS-63-ITAT-2019(Mum)

Income tax Appellate Tribunal ITAT:'Bonafide belief' valid reason for TDS non-deduction on salary; Rejects Revenue's Ely Lilly reliance

Feb 15, 2019

In Favour of : Assessee
Citation Number : TS-67-ITAT-2019(Bang)

Income tax Appellate Tribunal ITAT:Quashes reassessment; Information from Mauritian Authority insufficient to prove unaccounted money allegation

Feb 14, 2019

In Favour of : Assessee
Citation Number : TS-62-ITAT-2019(CHANDI)

Weekly Digest #5 27 Jan to 08 Feb 2019 7 Rulings

Supreme Court SC:Mandates assessee to comply with 'PAN-Aadhaar linking' requirement for return filing

Feb 07, 2019

In Favour of : Assessee
Citation Number : TS-45-SC-2019

High Court HC:Quashes re-assessment notice; No 'live-link' between investigation wing data and income escapement

Feb 07, 2019

In Favour of : Assessee
Citation Number : TS-46-HC-2019(BOM)

Income tax Appellate Tribunal ITAT:Sec.43B not applicable to contribution to Environment Relief Fund since assessee-insurer acted as collecting agent

Feb 08, 2019

In Favour of : Assessee
Citation Number : TS-49-ITAT-2019(PUN)

Income tax Appellate Tribunal ITAT:Allows Sec.54 exemption for amount invested towards construction before sale of house-property

Feb 08, 2019

In Favour of : Assessee
Citation Number : TS-50-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:CIT(A) cannot enhance income on 'new source' not considered in assessment proceedings

Feb 08, 2019

In Favour of : Assessee
Citation Number : TS-52-ITAT-2019(DEL)

High Court HC:Quashes reassessment notice u/s 147 issued on last day of time-limit expiry

Feb 08, 2019

In Favour of : Assessee
Citation Number : TS-51-HC-2019(BOM)

High Court HC:AO to apply his discretion for deciding stay application and water-down pre-deposit condition

Feb 08, 2019

In Favour of : Assessee
Citation Number : TS-48-HC-2019(DEL)

Weekly Digest #4 19 Jan to 26 Jan 2019 3 Rulings

Income tax Appellate Tribunal ITAT:Carrying 'awareness' program for eradication of HIV AIDS, a charitable activity u/s. 2(15)

Jan 25, 2019

In Favour of : Assessee
Citation Number : TS-31-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition of unexplained silver utensils belonging to married-lady, holds within permissible limits

Jan 25, 2019

In Favour of : Assessee
Citation Number : TS-773-ITAT-2018(Ind)

High Court HC:Expresses doubt on ITAT invoking TP-mechanism absent AO's directions while deciding Sec 36(1)(iii)-interest allowability

Jan 26, 2019

In Favour of : Assessee
Citation Number : TS-35-HC-2019(BOM)

Weekly Digest #3 12 Jan to 18 Jan 2019 8 Rulings

Income tax Appellate Tribunal ITAT:Taxability u/s 44BB only if hire-vessels fitted with equipments for use in prospecting mineral-oils

Jan 18, 2019

In Favour of : Revenue
Citation Number : TS-16-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition towards difference in income as per books & Form-26AS, absent receipt

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-14-ITAT-2019(Ahd)

Income tax Appellate Tribunal ITAT:No TDS on cost-to-cost reimbursement to overseas affiliates; Deletes disallowance u/s 40(a)(i)

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-17-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:Quashes Sec.263-order; Rejects plea of AO's deaf ear towards commission for bogus capital-gains

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-20-ITAT-2019(DEL)

High Court HC:Upholds penalty u/s 271(1)(c) despite concealed income fully disclosed and accepted in assessment

Jan 18, 2019

In Favour of : Revenue
Citation Number : TS-18-HC-2019(BOM)

Supreme Court SC:Dismisses SLP; HC held grant-in-aid to Govt. company, a capital receipt

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-22-SC-2019

Income tax Appellate Tribunal ITAT:Payment for obtaining geophysical and geological data not FTS/royalty under India-USA DTAA

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-19-ITAT-2019(DEL)

Income tax Appellate Tribunal ITAT:Quashes AO's rejection of books ; Acknowledges livestock business dealings with un-organized sector

Jan 18, 2019

In Favour of : Assessee
Citation Number : TS-15-ITAT-2019(DEL)

Weekly Digest #2 05 Jan to 11 Jan 2019 4 Rulings

High Court HC:Upholds re-assessment initiation, Cites legitimate nexus between Investigation Wing report and Income Escapement

Jan 11, 2019

In Favour of : Revenue
Citation Number : TS-768-HC-2018(BOM)

Income tax Appellate Tribunal ITAT: Condones 300 days appeal filing delay owing to company's demerger, cites no wilful delay

Jan 11, 2019

In Favour of : Assessee
Citation Number : TS-7-ITAT-2019(Bang)

Income tax Appellate Tribunal ITAT:Imports 'make available' clause into India-France DTAA; Advisory services payments, not FTS

Jan 11, 2019

In Favour of : Assessee
Citation Number : TS-767-ITAT-2018(Mum)

High Court HC:Explanation 5A to Sec. 271(1)(c) not applicable to 'other than searched person'

Jan 11, 2019

In Favour of : Assessee
Citation Number : TS-6-HC-2019(BOM)

Weekly Digest #1 29 Dec to 04 Jan 2019 3 Rulings

Income tax Appellate Tribunal ITAT:Lease premium to MMRDA for acquisition of lease-hold rights in land, not liable for TDS u/s 194-I

Jan 04, 2019

In Favour of : Assessee
Citation Number : TS-758-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:'Time writing charges' paid to sister-concern not FTS ; TDS u/s 195 inapplicable

Jan 04, 2019

In Favour of : Assessee
Citation Number : TS-760-ITAT-2018(DEL)

Supreme Court SC:Dismisses Revenue's SLP against Delhi HC allowing sec.80-IB(10) deduction to assessee

Jan 04, 2019

In Favour of : Assessee
Citation Number : TS-2-SC-2019

Weekly Digest #49 22 Dec to 28 Dec 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Deletes Sec.40(a)(ia) disallowance on commission to retailers/dealers by distributors on behalf of Idea-Cellular

Dec 28, 2018

In Favour of : Assessee
Citation Number : TS-746-ITAT-2018(JPR)

Income tax Appellate Tribunal ITAT:No TDS u/s 194-I on demurrage charges paid to foreign company

Dec 28, 2018

In Favour of : Assessee
Citation Number : TS-751-ITAT-2018(Rjt)

Income tax Appellate Tribunal ITAT:Deletes fees levied u/s 234E for period prior to June 1, 2015

Dec 28, 2018

In Favour of : Assessee
Citation Number : TS-749-ITAT-2018(Ind)

Income tax Appellate Tribunal ITAT: Allows exemption u/s 54F for jointly held property

Dec 28, 2018

In Favour of : Assessee
Citation Number : TS-748-ITAT-2018(CHNY)

Income tax Appellate Tribunal ITAT:Rejects taxpayer's plea of funding 'cash deposits' from old savings, upholds addition

Dec 28, 2018

In Favour of : Revenue
Citation Number : TS-747-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Disallows Sec.37(1) deduction to director for advertisement expenses for exhibiting film

Dec 28, 2018

In Favour of : Both, Partially
Citation Number : TS-745-ITAT-2018(CHNY)

Weekly Digest #48 15 Dec to 21 Dec 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Quashes reassessment post SC-order holding reassessment notice alleging PE as unsustainable

Dec 21, 2018

In Favour of : Assessee
Citation Number : TS-732-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:ROC fees for increase in authorized share capital, not deductible u/s 35D being 'capital ' in nature

Dec 21, 2018

In Favour of : Revenue
Citation Number : TS-734-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Taxpayer entitled for MAT credit including surcharge & cess

Dec 21, 2018

In Favour of : Assessee
Citation Number : TS-712-ITAT-2016(PUN)

High Court HC:Dismisses Revenue appeal; Retention of partial VAT on behalf of Government, not 'real' income

Dec 21, 2018

In Favour of : Assessee
Citation Number : TS-733-HC-2018(HP)

Income tax Appellate Tribunal ITAT:UK company's telecom services to VSNL, not royalty; LO in India, not PE

Dec 21, 2018

In Favour of : Assessee
Citation Number : TS-736-ITAT-2018(Mum)

Weekly Digest #47 09 Dec to 14 Dec 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Upholds 'Licence to collect Toll' as intangible asset; Allows depreciation benefit

Dec 14, 2018

In Favour of : Assessee
Citation Number : TS-715-ITAT-2018(PUN)

Income tax Appellate Tribunal ITAT: Flat booking-date, not agreement-date, relevant for computing holding period for capital gains

Dec 14, 2018

In Favour of : Assessee
Citation Number : TS-714-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Allows revenue deduction for BPO-training expenses though accounted as deferred revenue expenditure

Dec 14, 2018

In Favour of : Assessee
Citation Number : TS-712-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:MAT credit to be allowed against tax including surcharge & education cess

Dec 14, 2018

In Favour of : Assessee
Citation Number : TS-717-ITAT-2018(PUN)

Income tax Appellate Tribunal ITAT:Allows profit exclusion from MAT till AY in which sick company's net-worth becomes positive

Dec 14, 2018

In Favour of : Assessee
Citation Number : TS-716-ITAT-2018(Rjt)

Weekly Digest #46 01 Dec to 08 Dec 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Denies Sec.54 benefit as new property not purchased in assessee's own name

Dec 07, 2018

In Favour of : Revenue
Citation Number : TS-698-ITAT-2018(Mum)

High Court HC:Trust utilizing minuscule income for charitable purposes, irrelevant while renewing Sec. 80G recognition

Dec 07, 2018

In Favour of : Assessee
Citation Number : TS-697-HC-2018(KAR)

Supreme Court SC:Dismisses SLP against HC-order holding ITAT's setting aside of order u/s 263 'faulty'

Dec 07, 2018

In Favour of : Revenue
Citation Number : TS-700-SC-2018

Income tax Appellate Tribunal ITAT:Sec. 269SS inapplicable on loan transaction between husband and wife

Dec 08, 2018

In Favour of : Assessee
Citation Number : TS-701-ITAT-2018(DEL)

Weekly Digest #45 24 Nov to 30 Nov 2018 5 Rulings

High Court HC:After Madras & Karnataka High Courts, Bombay HC allows 50 additional depreciation in succeeding year

Nov 30, 2018

In Favour of : Assessee
Citation Number : TS-683-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Purchase of music rights - revenue expense absent recurring benefit in future

Nov 30, 2018

In Favour of : Assessee
Citation Number : TS-685-ITAT-2018(CHNY)

High Court HC:Upholds grossing-up for TDS purpose under India- UK DTAA

Nov 30, 2018

In Favour of : Revenue
Citation Number : TS-686-HC-2018(MAD)

High Court HC:Upholds ITAT, exemption u/s 10(23C)(iiiab) is qua society, not qua individual institution

Nov 30, 2018

In Favour of : Assessee
Citation Number : TS-682-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Allows Sun TV Network's bad-debts claim relating irrecoverable 'subscription-fees'

Nov 30, 2018

In Favour of : Assessee
Citation Number : TS-687-ITAT-2018(CHNY)

Weekly Digest #44 17 Nov to 23 Nov 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Transponder fee for program- transmission not 'royalty' ; Relies on G. E. Technology case (SC)

Nov 23, 2018

In Favour of : Assessee
Citation Number : TS-674-ITAT-2018(Mum)

Supreme Court SC:Dismisses assessee's SLP against re-assessment upheld despite improper service of notice

Nov 23, 2018

In Favour of : Revenue
Citation Number : TS-677-SC-2018

Income tax Appellate Tribunal ITAT:ONGC's 'membership-cum-license' fees payment not royalty under Indo-Canada DTAA

Nov 22, 2018

In Favour of : Assessee
Citation Number : TS-671-ITAT-2018(DEL)

Supreme Court SC:Dismisses SLP against HC holding recovery u/s 226(3) from assessee-debtor as arbitrary

Nov 23, 2018

In Favour of : Assessee
Citation Number : TS-675-SC-2018

Supreme Court SC:Dismisses Revenue's SLP against HC allowing sec.10B deduction despite processing iron-ore outside EOU

Nov 22, 2018

In Favour of : Assessee
Citation Number : TS-673-SC-2018

Weekly Digest #43 07 Nov to 16 Nov 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Deletes addition of notional interest under book profits, quashes order u/s 263

Nov 15, 2018

In Favour of : Assessee
Citation Number : TS-663-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Interest earned on FD's pledged for promoting business of group-companies, assessable as Business Income

Nov 16, 2018

In Favour of : Assessee
Citation Number : TS-664-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Rentals from Leasing of Warehouse constitutes House-property income

Nov 13, 2018

In Favour of : Revenue
Citation Number : TS-657-ITAT-2018(DEL)