Direct tax Weekly Digest

Weekly Digest #42 03 Nov to 06 Nov 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Mere investments in 'penny stocks' cannot result in LTCG exemption denial

Nov 06, 2018

In Favour of : Assessee
Citation Number : TS-647-ITAT-2018(CHNY)

High Court HC:Single solitary sale transaction sans dominant intention of profit, not 'adventure in nature of trade'

Nov 06, 2018

In Favour of : Assessee
Citation Number : TS-652-HC-2018(KER)

Income tax Appellate Tribunal ITAT:Denies deduction u/s 54 on advance given for flat, absent building plan approval

Nov 06, 2018

In Favour of : Revenue
Citation Number : TS-649-ITAT-2018(JPR)

Income tax Appellate Tribunal ITAT: Reckons ESOP holding period from grant date where shares bought back without exercise

Nov 06, 2018

In Favour of : Assessee
Citation Number : TS-650-ITAT-2018(Bang)

Weekly Digest #41 27 Oct to 02 Nov 2018 3 Rulings

Income tax Appellate Tribunal ITAT:No concealment penalty regarding capital gains on switch from one MF to another

Nov 02, 2018

In Favour of : Assessee
Citation Number : TS-637-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Allows deduction for municipal taxes pertaining to years when assessee was not owner

Nov 02, 2018

In Favour of : Assessee
Citation Number : TS-639-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Holds receipts/awards by cricketer as exempt under CBDT Circular; Follows precedents

Nov 02, 2018

In Favour of : Assessee
Citation Number : TS-641-ITAT-2018(PUN)

Weekly Digest #40 21 Oct to 26 Oct 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Redemption of mutual fund units, taxable as 'capital gains' and not 'business income'

Oct 22, 2018

In Favour of : Assessee
Citation Number : TS-612-ITAT-2018(DEL)

High Court HC:Lays down principles on interest allowability u/s. 36(1)(iii), AO wrongly interpreted S.A Builders case (SC)

Oct 25, 2018

In Favour of : Assessee
Citation Number : TS-619-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Payment to Swedish co. for software up-gradation not FTS/royalty

Oct 25, 2018

In Favour of : Assessee
Citation Number : TS-618-ITAT-2018(PUN)

High Court HC:Directs ITAT to dispose MAs in the order in which they are instituted/filed

Oct 25, 2018

In Favour of : Assessee
Citation Number : TS-620-HC-2018(BOM)

High Court HC:TDS u/s 195 inapplicable on commission to non-resident agents despite some sale happened in India

Oct 26, 2018

In Favour of : Assessee
Citation Number : TS-622-HC-2018(GUJ)

Income tax Appellate Tribunal ITAT:Allows assessee's exemption u/s 54F on capital gains arising from sale of depreciable asset

Oct 26, 2018

In Favour of : Assessee
Citation Number : TS-624-ITAT-2018(Ahd)

Weekly Digest #39 13 Oct to 20 Oct 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Treats payments towards discharging mortgage created by previous owner, as cost of acquisition u/s 48

Oct 19, 2018

In Favour of : Assessee
Citation Number : TS-608-ITAT-2018(JPR)

Income tax Appellate Tribunal ITAT:Retrospective cancellation of certificate u/s 35(1)(ii) cannot disentitle assessee from claiming weighted deduction on donation

Oct 19, 2018

In Favour of : Assessee
Citation Number : TS-605-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Liquidation damages extraordinarily higher than settled price of goods; Holds transaction speculative

Oct 19, 2018

In Favour of : Revenue
Citation Number : TS-606-ITAT-2018(Ahd)

Weekly Digest #38 06 Oct to 12 Oct 2018 3 Rulings

High Court HC:Dismisses Revenue's appeal; No interest disallowance u/s. 36(1)(iii) for non-interest-bearing advances to third-parties

Oct 12, 2018

In Favour of : Revenue
Citation Number : TS-588-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Incentive received under Marketing Agreement for passing on to sub-distributors not distributors income

Oct 12, 2018

In Favour of : Assessee
Citation Number : TS-589-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:'Cost of construction', not SRO-value, relevant while computing LTCG on land-transfer under JDA

Oct 12, 2018

In Favour of : Both, Partially
Citation Number : TS-592-ITAT-2018(HYD)

Weekly Digest #37 30 Sep to 05 Oct 2018 4 Rulings

High Court HC:CBDT instruction doesn't oust AO's discretion in stay matters; Allows taxpayer's writ

Oct 05, 2018

In Favour of : Assessee
Citation Number : TS-576-HC-2018(MAD)

High Court HC:Taxpayer entitled to pursue revision u/s. 264 after getting appeal dismissed as withdrawn

Oct 05, 2018

In Favour of : Assessee
Citation Number : TS-574-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Finance Act 2016 amendment to Sec. 50C, retrospective ; Relies on Co-ordinate Bench

Oct 05, 2018

In Favour of : Assessee
Citation Number : TS-573-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT: Non-Construction of Residential House within 3 years of transfer cannot disentitle claim u/s 54F

Oct 05, 2018

In Favour of : Assessee
Citation Number : TS-575-ITAT-2018(Ahd)

Weekly Digest #36 23 Sep to 29 Sep 2018 4 Rulings

High Court HC:Upholds CIT's revision, disallows hawala purchases based on VAT Dept info

Sep 28, 2018

In Favour of : Revenue
Citation Number : TS-560-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Denies exemption u/s 54/54F on 'two' non-adjacent residential flats

Sep 28, 2018

In Favour of : Revenue
Citation Number : TS-564-ITAT-2018(DEL)

High Court HC: Deletes penalty levy on infrastructure co. claiming depreciation on highway project cost

Sep 28, 2018

In Favour of : Revenue
Citation Number : TS-562-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:No penalty on alleged 'kickbacks' under Volcker report; Highlights non-bindingness of UN resolution

Sep 28, 2018

In Favour of : Assessee
Citation Number : TS-563-ITAT-2018(PUN)

Weekly Digest #35 15 Sep to 22 Sep 2018 4 Rulings

High Court HC:Deletes deemed dividend addition; RBI's 'substantiality test' for money lending business irrelevant

Sep 21, 2018

In Favour of : Assessee
Citation Number : TS-547-HC-2018(DEL)

High Court HC:Upholds re-opening as Samsung failed to disclose FTS/royalty income; Tax deduction irrelevant

Sep 21, 2018

In Favour of : Revenue
Citation Number : TS-549-HC-2018(DEL)

High Court HC:Quashes ITSC order rejecting settlement application, as 'prima facie' findings based on surmise

Sep 21, 2018

In Favour of : Assessee
Citation Number : TS-551-HC-2018(DEL)

High Court HC:Settlement application allowed 'to be proceeded with' no bar from criminal proceedings initiation

Sep 21, 2018

In Favour of : Revenue
Citation Number : TS-548-HC-2018(DEL)

Weekly Digest #34 08 Sep to 14 Sep 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Arbitration settlement payment to partner on firm-dissolution, capital receipt ; Deletes capital-gains addition

Sep 14, 2018

In Favour of : Assessee
Citation Number : TS-534-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Deletes interest u/s 201(1A) pre-2012 as auditor's certificates of deductee having paid taxes obtained

Sep 14, 2018

In Favour of : Assessee
Citation Number : TS-533-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows depreciation on non-compete fees paid for acquiring partnership interest

Sep 14, 2018

In Favour of : Assessee
Citation Number : TS-532-ITAT-2018(Mum)

High Court HC:Upholds penalty; Rejects Finance co. 's inadvertent mistake plea in claiming land keep-up expenses

Sep 14, 2018

In Favour of : Revenue
Citation Number : TS-535-HC-2018(MAD)

Weekly Digest #33 01 Sep to 07 Sep 2018 4 Rulings

High Court HC:'True & full disclosure' - life-line of Settlement proceedings, rejects its deferral till finalisation

Sep 06, 2018

In Favour of : Revenue
Citation Number : TS-517-HC-2018(MAD)

Income tax Appellate Tribunal ITAT: Accepts STCG treatment relating shares declared as investments, cites CBDT circular 6/2016

Sep 07, 2018

In Favour of : Assessee
Citation Number : TS-519-ITAT-2018(PUN)

Income tax Appellate Tribunal ITAT:Quashes re-assessment, AO took possible view of taxing FD interest under 'business income'

Sep 07, 2018

In Favour of : Assessee
Citation Number : TS-520-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:AO can't overturn HC judgment merely because SLP is pending before SC

Sep 07, 2018

In Favour of : Assessee
Citation Number : TS-522-ITAT-2018(CHNY)

Weekly Digest #32 25 Aug to 31 Aug 2018 6 Rulings

Income tax Appellate Tribunal ITAT: Upholds presumptive taxation u/s. 44AD absent production of 'books'; Applies 'peak credit' theory for unexplained deposits

Aug 30, 2018

In Favour of : Revenue
Citation Number : TS-498-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Liaisioning charges paid to foreign company for project outside India not liable to TDS u/s 195

Aug 31, 2018

In Favour of : Assessee
Citation Number : TS-501-ITAT-2018(Mum)

Supreme Court SC:Dismisses Revenue's SLP against HC upholding Settlement Commission order granting immunity from penalties

Aug 31, 2018

In Favour of : Assessee
Citation Number : TS-502-SC-2018

High Court HC:Allows deduction of expenditure on abandoned project noting commonality in funds and control

Aug 31, 2018

In Favour of : Assessee
Citation Number : TS-506-HC-2018(MAD)

Income tax Appellate Tribunal ITAT: Condones 1005 days delay, erstwhile CA's wrong advice resulted in belated appeal filing

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-483-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Deletes addition u/s. 41(1) for deferred sales-tax liability relating to 'already transferred' undertaking

Aug 31, 2018

In Favour of : Assessee
Citation Number : TS-503-ITAT-2018(Mum)

Weekly Digest #31 18 Aug to 24 Aug 2018 6 Rulings

High Court HC:'Factual error' pointed out by Audit party, not 'tangible material; Quashes reassessment

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-485-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows deduction u/s 36(1)(viia) on rural advances despite branches situated within 8Kms of town

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-481-ITAT-2018(CHANDI)

Income tax Appellate Tribunal ITAT:Deletes LTCG addition on land transferred under development agreement sans project completion

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-487-ITAT-2018(Mum)

High Court HC:Share-sale income, not STCG; 80 shares held for less than 7-days

Aug 24, 2018

In Favour of : Revenue
Citation Number : TS-484-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:'Land' valuation as stock-in-trade to be lower of market value or cost including development-charges

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-482-ITAT-2018(CHNY)

Income tax Appellate Tribunal ITAT:Rejects assessee's bonafide claim for non-deduction of tax on software license u/s 195

Aug 24, 2018

In Favour of : Revenue
Citation Number : TS-486-ITAT-2018(Bang)

Weekly Digest #7 17 Feb to 23 Aug 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Restores Sec. 68 addition; Share applicant's meager income unable to justify creditworthiness

Feb 20, 2018

In Favour of : Revenue
Citation Number : TS-68-ITAT-2018(Mum)

Supreme Court SC:Reverses HC's quashing of Sec. 143(2) notice served beyond 12 months, considering peculiar circumstances

Feb 23, 2018

In Favour of : Revenue
Citation Number : TS-76-SC-2018

Income tax Appellate Tribunal ITAT:Deletes addition u/s 33AB despite delay in utilising NABARD deposits beyond stipulated date

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-77-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Interest on security deposit taxable in landlord's hand, despite benefit passed to tenant

Feb 23, 2018

In Favour of : Revenue
Citation Number : TS-78-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Allows deduction u/s. 37(1) for brand building expense; Follows Fine Jewellery (Mumbai ITAT)

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-79-ITAT-2018(CHNY)

High Court HC:Payment to National Stock Exchange for acquisition of membership, 'capital' in nature

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-80-HC-2018(DEL)

Weekly Digest #30 11 Aug to 17 Aug 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Deletes capital-gains adjustment u/s 115JB, accepts authenticity of accounts prepared under Companies Act

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-463-ITAT-2018(Mum)

High Court HC:Directs ITAT to examine whether Company incorporated under ROC Sikkim Act constitutes Indian co. u/s. 2(26)

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-464-HC-2018(DEL)

High Court HC:Upholds commission disallowance, ITAT's finding not perverse merely because another finding / conclusion possible

Aug 17, 2018

In Favour of : Revenue
Citation Number : TS-465-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Holds property not transferred in year of entering into JDA absent handing-over of possession

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-467-ITAT-2018(CHNY)

Weekly Digest #29 28 Jul to 10 Aug 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Allows interest deduction to builder for loan taken for acquiring development rights

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-444-ITAT-2018(Mum)

Supreme Court SC:Dismisses SLP against HC rejecting capital-gains taxability on asset revaluation by firm

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-447-SC-2018

High Court HC:Treats payment for getting rid of encumbrances in property as part of 'acquisition cost'

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-446-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Allows deduction for 'freebies' to doctors, MCI regulations inapplicable to Pharma Co

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-445-ITAT-2018(Mum)

Weekly Digest #28 21 Jul to 27 Jul 2018 7 Rulings

Income tax Appellate Tribunal ITAT:Amount received under compromise agreement for surrendering rights in property - Capital Gains

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-410-ITAT-2018(PUN)

High Court HC:Directs AO to consider assessee's claim u/s 80HHC when SC had nullified retrospective amendment to 80HHC(3)

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-409-HC-2018(KER)

High Court HC:Interest on mobilization advance to contractors, a capital receipt; Dissents from co-ordinate bench

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-412-HC-2018(KER)

Income tax Appellate Tribunal ITAT:Disallows expenditure on free distribution of cigarettes to promote sale of IMFL & Beer

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-414-ITAT-2018(Mum)

High Court HC:ITAT's setting aside revisionary order u/s 263 'faulty', amounts to putting gloss over AO's glaring omissions

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-415-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Labour payments through maistries, not a contract, Sec. 194C inapplicable

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-416-ITAT-2018(VIZ)

High Court HC:Directs CBDT to allow filing of IT return without furnishing Aadhaar No.

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-417-HC-2018(DEL)

Weekly Digest #27 14 Jul to 20 Jul 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Rules on Indian co.'s FTC entitlement on taxes withheld by US subsidiary .

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-390-ITAT-2018(DEL)

High Court HC: Disallows director's son higher education expenditure, absent nexus with business.

Jul 20, 2018

In Favour of : Revenue
Citation Number : TS-391-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Excludes service tax collected from total receipts u/s 44B

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-392-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Australian company's ONGC contract, divisible; Rejects composite taxability plea

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-393-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:No notional value on unsold shops held as stock in trade

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-394-ITAT-2018(Mum)

Weekly Digest #26 07 Jul to 13 Jul 2018 6 Rulings

High Court HC:Denies deduction for acquiring film distribution rights absent revenue realization on exhibitions

Jul 06, 2018

In Favour of : Revenue
Citation Number : TS-362-HC-2018(KER)

High Court HC:AO can entertain claim of erroneous deduction without revised ROI, relies on NTPC

Jul 13, 2018

In Favour of : Revenue
Citation Number : TS-375-HC-2018(KER)

Supreme Court SC:Dismisses Revenue's SLP; No re-assessment merely based on 'Sauda-Chitthi' for land-sale

Jul 13, 2018

In Favour of : Assessee
Citation Number : TS-376-SC-2018

High Court HC:Quashes order of attachment passed in name of assessee's deceased son

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-357-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Affiliation fee payment to US-company, not royalty absent transfer of technology

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-359-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Sale of hardware alongwith embedded software, not royalty; Installation/ support services, not FTS

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-358-ITAT-2018(DEL)

Weekly Digest #25 30 Jun to 06 Jul 2018 4 Rulings

High Court HC:Follows 'real-income' theory for valuing Bank's closing stock of securities

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-355-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Revenue's non-filing counter-affidavit, 'sufficient cause' for condoning taxpayer's over 2000 days delay

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-361-ITAT-2018(COCH)

High Court HC:Quashes TP-reassessment notice citing failure to mention income escapement exceeds Rs.1 lakh

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-364-HC-2018(KAR)

Income tax Appellate Tribunal ITAT:Reverses CIT(A) order, confirms concealment penalty for mala fide agricultural income claim

Jul 06, 2018

In Favour of : Revenue
Citation Number : TS-356-ITAT-2018(DEL)

Weekly Digest #24 23 Jun to 29 Jun 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Upholds FTS taxability on NRI based on recitals of TDS certificates

Jun 29, 2018

In Favour of : Revenue
Citation Number : TS-338-ITAT-2018(DEL)

High Court HC: No penalty u/s 271(1)(c) for inadvertent mistake in calculation of income

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-341-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Deletes Sec. 40(a)(i) disallowance; Allows MFN clause benefit on FTS payments to Swedish co.

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-340-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Inspection & Testing services not taxable sans 'make available' under India-UK DTAA

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-342-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows assessee's full exemption claim u/s. 54, despite property jointly held by spouse and son

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-344-ITAT-2018(DEL)