Direct tax Weekly Digest

Weekly Digest #23 16 Jun to 22 Jun 2018 8 Rulings

High Court HC:Directs passing speaking order disposing assessee's objections against re-opening following GKN Driveshafts case

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-322-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Holds website development expenditure as revenue in nature, rejects 'enduring benefit' plea

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-324-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:AO to examine assessee's warranty provision claim considering the industry perspective

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-310-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Revised return filed u/s 139(5) after issuance of scrutiny notice, valid

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-325-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Confirms Sec. 271D/E penalty on film distributor for accepting / repaying booking advance in cash

Jun 22, 2018

In Favour of : Revenue
Citation Number : TS-326-ITAT-2018(ASR)

Income tax Appellate Tribunal ITAT:Share-sale profits, capital gains, not business income for NRI regularly drawing salary

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-327-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Assessee's share premium not bogus merely because subscriber held accommodation entry provider

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-329-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Grants retrospective registration u/s 12A on revenue's failure to dispose within 6 months

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-328-ITAT-2018(Bang)

Weekly Digest #22 10 Jun to 15 Jun 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Apportionment of R&D, ESOP cost to exempt units unwarranted; Quashes Pharma Co's reassessment

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-308-ITAT-2018(HYD)

High Court HC: Upholds deletion of Sec. 271(1)(c) penalty on actor Trisha Krishnan, absent 'deliberate' concealment of income

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-309-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Deletes capital gains addition where taxpayer filed suit for cancellation of sale deed

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-311-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Profit from vessel-sale under tonnage-division, not IFOS; Deletes addition

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-312-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Subsidy for modernizing textile industry, capital in nature ; Directs exclusion from book-profits u/s. 115JB

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-313-ITAT-2018(Mum)

Weekly Digest #21 02 Jun to 09 Jun 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Allows long term capital loss claim, group company's share transfer, not sham

Jun 08, 2018

In Favour of : Assessee
Citation Number : TS-298-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Raises alarm over illegal coercive recoveries, directs CBDT to take necessary action

Jun 08, 2018

In Favour of : Assessee
Citation Number : TS-296-ITAT-2018(CHANDI)

High Court HC:Denies deduction u/s. 37 to lawyer for settlement expenses incurred as company's MD / personal guarantor

Jun 08, 2018

In Favour of : Revenue
Citation Number : TS-295-HC-2018(DEL)

Weekly Digest #20 27 May to 01 Jun 2018 5 Rulings

High Court HC: No TDS u/s 195 on foreign agency commission absent chargeability under the Income-tax Act

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-277-HC-2018(GUJ)

Income tax Appellate Tribunal ITAT:Software payments not royalty under India-UK DTAA, follows Infrasoft ruling

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-279-ITAT-2018(DEL)

Supreme Court SC: Stays operation of HC judgment upholding deemed dividend taxability on advances

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-280-SC-2018

Income tax Appellate Tribunal ITAT:Capital-gains under JDA assessable in year of passing 'vacant' possession to developer

Jun 01, 2018

In Favour of : Revenue
Citation Number : TS-281-ITAT-2018(HYD)

Supreme Court SC:Dismisses SLP; No penalty u/s 271C for TDS default on 'debatable' nature of payments

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-282-SC-2018

Weekly Digest #19 19 May to 26 May 2018 5 Rulings

Supreme Court SC:Dismisses SLP; No Sec. 194C TDS by Transporter on third-party payments to truck-owners

May 21, 2018

In Favour of : Assessee
Citation Number : TS-257-SC-2018

Income tax Appellate Tribunal ITAT: No denial of exemption u/s. 11 for Trust advancing loan in violation of sec.13(1)(d)

May 25, 2018

In Favour of : Assessee
Citation Number : TS-266-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT: Deletes Sec. 271(1)(c) penalty, assessee under 'bonafide' belief for not returning capital gains

May 25, 2018

In Favour of : Assessee
Citation Number : TS-267-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Deletes concealment penalty on SRK, Dubai villa income taxability not free from doubts

May 26, 2018

In Favour of : Assessee
Citation Number : TS-268-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Disallows excess depreciation claim than under Companies Act for MAT purposes

May 26, 2018

In Favour of : Assessee
Citation Number : TS-269-ITAT-2018(CHNY)

Weekly Digest #18 12 May to 18 May 2018 4 Rulings

High Court HC:Allows exemption u/s 10(10C) for VRS payment despite scheme not as per Rule 2BA

May 18, 2018

In Favour of : Assessee
Citation Number : TS-252-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Restricts disallowance u/s 14A to quantum of exempt income; Cites Article 265 of Constitution

May 18, 2018

In Favour of : Both, Partially
Citation Number : TS-253-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:AO can assess income lower than returned income despite resulting in refund

May 18, 2018

In Favour of : Assessee
Citation Number : TS-254-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Deletes concealment penalty despite assessee's stand in reassessment contradictory to SC ruling

May 18, 2018

In Favour of : Assessee
Citation Number : TS-255-ITAT-2018(DEL)

Weekly Digest #17 06 May to 11 May 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Micro-finance to poor at higher interest, not 'relief of poor'; Denies exemption u/s. 11

May 11, 2018

In Favour of : Revenue
Citation Number : TS-237-ITAT-2018(COCH)

Income tax Appellate Tribunal ITAT:Encashment of bank guarantee for non-fulfilment of contract work, a business expenditure

May 12, 2018

In Favour of : Assessee
Citation Number : TS-238-ITAT-2018(DEL)

High Court HC:Upholds reassessment, notes live-link between investigation wing data and income escapement

May 12, 2018

In Favour of : Revenue
Citation Number : TS-239-HC-2018(P & H)

Weekly Digest #16 28 Apr to 05 May 2018 4 Rulings

Supreme Court SC:Dismisses SLP; HC-appeal limitation period begins even if non-jurisdictional 'commissioner' receives ITAT order

May 04, 2018

In Favour of : Assessee
Citation Number : TS-225-SC-2018

Income tax Appellate Tribunal ITAT:Allows Sec. 80P deduction on co-operative society's interest income from investments with co-operative bank

May 04, 2018

In Favour of : Assessee
Citation Number : TS-227-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Denies deduction u/s. 57 for PMS, professional charges and salaries against dividend / interest income

May 04, 2018

In Favour of : Revenue
Citation Number : TS-226-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Tax deduction u/s. 194C no reason to treat genuine developer as contractor; Allows Sec. 80IA benefit

May 04, 2018

In Favour of : Assessee
Citation Number : TS-228-ITAT-2018(Mum)

Weekly Digest #15 21 Apr to 27 Apr 2018 3 Rulings

Income tax Appellate Tribunal ITAT: Payment for services involving evaluation of LNG vaporizers not FIS under India-US DTAA

Apr 27, 2018

In Favour of : Assessee
Citation Number : TS-212-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Activities for promoting Lord Krishna consciousness facilitate trust's objectives, grants Sec u/s 11 exemption

Apr 27, 2018

In Favour of : Assessee
Citation Number : TS-213-ITAT-2018(Mum)

Supreme Court SC:Dismisses assessee's SLP; 'Change of opinion' concept inapplicable when return accepted u/s 143(1)

Apr 27, 2018

In Favour of : Revenue
Citation Number : TS-214-SC-2018

Weekly Digest #14 14 Apr to 20 Apr 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Payments to US- entity for providing support services from outside India, not taxable

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-190-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Deletes unaccounted cash sale receipts addition on a mining company

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-191-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Lease rental not capital expenditure despite lease period exceeding 12 years, allows deduction

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-192-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Sets aside re-opening u/s. 148 for assessing rental income in Trust's hands

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-193-ITAT-2018(COCH)

High Court HC:Demand on property purchaser towards defaulter seller's tax-dues, justified; Invalidates sales transaction

Apr 20, 2018

In Favour of : Revenue
Citation Number : TS-194-HC-2018(RAJ)

Income tax Appellate Tribunal ITAT:Export commission to non-resident agents not taxable even post Circular 7/2009

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-195-ITAT-2018(AGR)

Weekly Digest #13 30 Mar to 13 Apr 2018 5 Rulings

Income tax Appellate Tribunal ITAT: Confirms share premium addition u/s. 68 for routing accommodation entries through shell companies

Apr 13, 2018

In Favour of : Revenue
Citation Number : TS-175-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows capital gain exemption u/s 54, mere availing of housing loan not a disqualification

Apr 13, 2018

In Favour of : Assessee
Citation Number : TS-176-ITAT-2018(Kol)

High Court HC:No re-opening u/s. 147/148 to re-consider Sec. 80-IC deduction claim subjected to 'regular assessment' enquiry

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-178-HC-2018(BOM)

High Court HC:Deemed dividend u/s 2(22)(e) not attracted in absence of 'actual' payment

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-179-HC-2018(ALL)

High Court HC:Books rejection u/s 145 does not automatically lead to penalty-proceedings, absent independent findings

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-642-HC-2017(ALL)

Weekly Digest #12 25 Mar to 29 Mar 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Receipt from relative of deceased exempt u/s 56(2)(v)(d) once conditions of Indian Succession Act satisfied

Mar 29, 2018

In Favour of : Assessee
Citation Number : TS-146-ITAT-2018(PUN)

High Court HC:Condones delay for making belated TDS refund claim for bonafide reason

Mar 29, 2018

In Favour of : Assessee
Citation Number : TS-147-HC-2018(GUJ)

High Court HC: Deemed dividend u/s 2(22)(e) not exempt u/s 10(34) absent payment of additional tax

Mar 29, 2018

In Favour of : Revenue
Citation Number : TS-148-HC-2018(KER)

Income tax Appellate Tribunal ITAT: Testing charges not FTS under India-Netherlands DTAA sans knowledge made available

Mar 29, 2018

In Favour of : Assessee
Citation Number : TS-149-ITAT-2018(CHNY)

Supreme Court SC:Dismisses SLP; AO cannot 're-assess' claim pending before appellate forum

Mar 29, 2018

In Favour of : Assessee
Citation Number : TS-144-SC-2018

Weekly Digest #11 18 Mar to 24 Mar 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Non-filing of AOP's PAN /I-T return not basis for assessing income in member's hands

Mar 23, 2018

In Favour of : Assessee
Citation Number : TS-134-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Confirms Sec. 69 addition, credit-worthiness of parties not proved; Cites information from US Authorities

Mar 23, 2018

In Favour of : Assessee
Citation Number : TS-135-ITAT-2018(Mum)

High Court HC:Denies exemption u/s 11 absent separate books of accounts for incidental business

Mar 23, 2018

In Favour of : Revenue
Citation Number : TS-136-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Payment for acquiring management rights of drillship, a capital expenditure eligible for depreciation

Mar 23, 2018

In Favour of : Assessee
Citation Number : TS-132-ITAT-2018(DEL)

Weekly Digest #10 10 Sep to 17 Mar 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Grants conditional stay to Thomson Reuters observing 'prima facie' case in favour

Mar 17, 2018

In Favour of : Assessee
Citation Number : TS-121-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Partnership firm having corporate entities as partners, a consortium eligible for deduction u/s 80IA(4)

Mar 16, 2018

In Favour of : Assessee
Citation Number : TS-118-ITAT-2018(PUN)

Income tax Appellate Tribunal ITAT: Sec. 143(2) notice by non-jurisdictional AO, invalid despite issued within statutory period

Mar 16, 2018

In Favour of : Assessee
Citation Number : TS-120-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Penalty for regularizing construction within byelaws of Slum Rehabilitation Authority allowable u/s 37(1)

Mar 16, 2018

In Favour of : Assessee
Citation Number : TS-119-ITAT-2018(Mum)

Weekly Digest #9 02 Mar to 09 Mar 2018 5 Rulings

Income tax Appellate Tribunal ITAT: Capital Gain taxable in year of entering development agreement; Cites Finance Act 2017 amendment

Mar 08, 2018

In Favour of : Revenue
Citation Number : TS-104-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Reopening invalid sans independent application of mind by Addl. CIT while according sanction

Mar 09, 2018

In Favour of : Assessee
Citation Number : TS-106-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Fees paid for business- development services to subsidiary not FTS under India-Singapore DTAA

Mar 09, 2018

In Favour of : Assessee
Citation Number : TS-107-ITAT-2018(Mum)

High Court HC:Penalty imposed u/s 158BFA(2), 'discretionary' and not 'mandatory' in nature

Mar 09, 2018

In Favour of : Assessee
Citation Number : TS-640-HC-2017(AP)

Income tax Appellate Tribunal ITAT:Considers registration date for determining holding period, absent possession transfer on agreement date

Mar 09, 2018

In Favour of : Revenue
Citation Number : TS-109-ITAT-2018(Bang)

Weekly Digest #8 24 Aug to 01 Mar 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Restores Sec. 12A registration; Mere failure to intimate amended objects, a mere irregularity

Mar 02, 2018

In Favour of : Assessee
Citation Number : TS-92-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Income accrued earlier not taxable in year of receipt on assessee becoming resident

Mar 02, 2018

In Favour of : Assessee
Citation Number : TS-93-ITAT-2018(CHNY)

Income tax Appellate Tribunal ITAT:Remands matter to AO for identifying real beneficiaries of accommodation entries

Mar 02, 2018

In Favour of : Assessee
Citation Number : TS-94-ITAT-2018(DEL)

High Court HC:Upholds 'transfer' in the year of execution of development agreement, and not POA

Mar 02, 2018

In Favour of : Assessee
Citation Number : TS-95-HC-2018(BOM)

High Court HC:Quashes re-assessment; AO cannot re-visit claim allowed by appellate authority

Mar 02, 2018

In Favour of : Assessee
Citation Number : TS-96-HC-2018(GUJ)

Weekly Digest #6 10 Feb to 16 Feb 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Accepts Rent Capitalisation Method for determining FMV of tenanted properties

Feb 16, 2018

In Favour of : Assessee
Citation Number : TS-638-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Allows LTCG claim, holds 'agreement to sell', not agreement execution, relevant

Feb 16, 2018

In Favour of : Assessee
Citation Number : TS-59-ITAT-2018(JPR)

Income tax Appellate Tribunal ITAT:Confirms addition for notional interest on security deposit received to circumvent real rent

Feb 16, 2018

In Favour of : Revenue
Citation Number : TS-60-ITAT-2018(Mum)

High Court HC:Depreciation allowed under State enactment not to be reduced while determining WDV u/s. 43(6) pre-2010

Feb 16, 2018

In Favour of : Assessee
Citation Number : TS-61-HC-2018(KER)

Income tax Appellate Tribunal ITAT:'Referral-fee' paid by Indian-Branch of Credit Suisse to Dubai-Branch for referring clients not FTS

Feb 16, 2018

In Favour of : Assessee
Citation Number : TS-62-ITAT-2018(Mum)

Weekly Digest #5 26 Jan to 09 Feb 2018 6 Rulings

Supreme Court SC:Dismisses Revenue's SLP against Delhi HC allowing credit of advance - tax paid under IDS -2016

Feb 09, 2018

In Favour of : Assessee
Citation Number : TS-46-SC-2018

Income tax Appellate Tribunal ITAT:Denies exemption u/s 54F due to absence of certainty of honour of sale agreement

Feb 09, 2018

In Favour of : Revenue
Citation Number : TS-47-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Deletes addition u/s 115JB towards subsidized cost debited in accounts as per Companies Act

Feb 09, 2018

In Favour of : Assessee
Citation Number : TS-48-ITAT-2018(Mum)

High Court HC:Quashes reassessment; Reopening reasons, a verbatim repetition of audit objections

Feb 09, 2018

In Favour of : Assessee
Citation Number : TS-633-HC-2017(MAD)

Authority for Advance Rulings AAR:Allows 10 concessional LTCG tax rate to non-resident, follows Delhi HC ruling in Cairn UK

Feb 09, 2018

In Favour of : Assessee
Citation Number : TS-50-AAR-2018

Income tax Appellate Tribunal ITAT:Installation and commissioning fees of machinery installed outside India not FTS, Sec.195 inapplicable

Feb 09, 2018

In Favour of : Assessee
Citation Number : TS-49-ITAT-2018(CHNY)

Weekly Digest #4 20 Jan to 25 Jan 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Formal trust deed not prerequisite for registration u/s 12AA/12A

Jan 24, 2018

In Favour of : Assessee
Citation Number : TS-630-ITAT-2017(Bang)

High Court HC:Grants benefit of presumption u/s. 132(4A), allows expense deduction to extent of seized documents

Jan 25, 2018

In Favour of : Assessee
Citation Number : TS-631-HC-2017(KER)

Income tax Appellate Tribunal ITAT:Denies depreciation on non-compete fees being ineligible intangible asset; Follows jurisdictional HC

Jan 25, 2018

In Favour of : Revenue
Citation Number : TS-31-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Quashes reassessment; Approval wrong authority equivalent to 'no approval'

Jan 25, 2018

In Favour of : Assessee
Citation Number : TS-632-ITAT-2017(Mum)

Weekly Digest #3 13 Jan to 19 Jan 2018 4 Rulings

Income tax Appellate Tribunal ITAT:No Sec. 271D penalty for accepting cash loan from sister-in-law and nephew

Jan 19, 2018

In Favour of : Assessee
Citation Number : TS-22-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Upholds CIT(A)'s order; Deletes book-profit addition towards diminution in current investment value

Jan 19, 2018

In Favour of : Assessee
Citation Number : TS-23-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Supply of software not 'Royalty' under India-Ireland DTAA; Follows co-ordinate-bench

Jan 19, 2018

In Favour of : Assessee
Citation Number : TS-24-ITAT-2018(Mum)

High Court HC:Upholds penalty levy in absence of 'bonafide' explanation substantiating source of unexplained income

Jan 19, 2018

In Favour of : Revenue
Citation Number : TS-25-HC-2018(KER)