Direct tax Weekly Digest

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)

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)