Direct tax Weekly Digest

Weekly Digest #8 20 Feb to 26 Feb 2016 4 Rulings

Income tax Appellate Tribunal ITAT:Recruitment charges payment to Lehman Brothers group, US not liable for Sec 195 TDS

Feb 26, 2016

In Favour of : Assessee
Citation Number : TS-96-ITAT-2016(Mum)

Income tax Appellate Tribunal ITAT:Directors' foreign travel expenses, not payment to 'specified persons'; Sec 40A(2) inapplicable

Feb 26, 2016

In Favour of : Assessee
Citation Number : TS-95-ITAT-2016(Ahd)

Income tax Appellate Tribunal ITAT:Rules on timelines /validity of AO's order giving effect to HC order

Feb 26, 2016

In Favour of : Assessee
Citation Number : TS-97-ITAT-2016(Bang)

High Court HC:Quashes Oracle's reassessment taxing royalty -income invoking 'force of attraction rule'; Follows coordinate-bench

Feb 26, 2016

In Favour of : Assessee
Citation Number : TS-98-HC-2016(DEL)

Weekly Digest #7 12 Feb to 19 Feb 2016 7 Rulings

High Court HC:Non-compete agreement, a subterfuge to reduce tax implication; Amount taxable as salary

Feb 12, 2016

In Favour of : Assessee
Citation Number : TS-69-HC-2016(BOM)

High Court HC:Search warrant in name of co-owner sufficient compliance, upholds search-seizure proceedings

Feb 18, 2016

In Favour of : Assessee
Citation Number : TS-39-HC-2015(ALL)

Income tax Appellate Tribunal ITAT:Liaison office of Japanese -company not fixed place PE ; Rejects core-business activity” plea

Feb 18, 2016

In Favour of : Both, Partially
Citation Number : TS-79-ITAT-2016(DEL)

Income tax Appellate Tribunal ITAT:Receipts from construction project taxable as business income, not FTS

Feb 18, 2016

In Favour of : Assessee
Citation Number : TS-78-ITAT-2016(DEL)

Income tax Appellate Tribunal ITAT:Deletes Sec 40(a)(i) disallowance, training payments to non-resident not liable to Sec 195 TDS

Feb 18, 2016

In Favour of : Assessee
Citation Number : TS-80-ITAT-2016(Mum)

Income tax Appellate Tribunal ITAT:Importing compliance requirement with 'post-facto' RBI procedure to deny Sec 10A exemption unwarranted”

Feb 19, 2016

In Favour of : Assessee
Citation Number : TS-42-ITAT-2015(HYD)

High Court HC: Deletes Sec 271(1)(c) penalty levy owing to issuance of improper notice

Feb 19, 2016

In Favour of : Assessee
Citation Number : TS-81-HC-2016(KAR)

Weekly Digest #6 06 Feb to 11 Feb 2016 4 Rulings

Income tax Appellate Tribunal ITAT:Substantial change in investment portfolio vindicates expenditure incurrence for earning exempt income

Feb 08, 2016

In Favour of : Revenue
Citation Number : TS-38-ITAT-2015(Bang)

Income tax Appellate Tribunal ITAT:Factory-land transfer pursuant to JDA taxable as capital gains, not business income

Feb 11, 2016

In Favour of : Assessee
Citation Number : TS-63-ITAT-2016(Kol)

High Court HC:Upholds expense disallowance based on uncontroverted” statements, rejects assessee's violation of natural-justice plea

Feb 11, 2016

In Favour of : Revenue
Citation Number : TS-65-HC-2016(DEL)

Income tax Appellate Tribunal ITAT:Quashes Revenue's pedantic approach, allows Sec 154 petition for correcting glaring error

Feb 11, 2016

In Favour of : Assessee
Citation Number : TS-67-ITAT-2016(Rjt)

Weekly Digest #5 30 Jan to 05 Feb 2016 4 Rulings

High Court HC:Pending suit for ascertaining assessee's liability no reason to disallow expense claim

Feb 05, 2016

In Favour of : Assessee
Citation Number : TS-40-HC-2016(DEL)

Income tax Appellate Tribunal ITAT:No TDS on payment towards security-surveillance services, deletes disallowance u/s 40(a)(ia)

Feb 05, 2016

In Favour of : Assessee
Citation Number : TS-42-ITAT-2016(Mum)

Income tax Appellate Tribunal ITAT:TDS u/s194A inapplicable on interest payment to University eligible for sec 10(23) exemption

Feb 05, 2016

In Favour of : Both, Partially
Citation Number : TS-37-ITAT-2015(PAN)

Income tax Appellate Tribunal ITAT:Allows 60 depreciation on 'Routers & Switches', being integral part of computers”

Feb 05, 2016

In Favour of : Assessee
Citation Number : TS-44-ITAT-2016(Mum)

Weekly Digest #4 26 Jan to 29 Jan 2016 6 Rulings

Income tax Appellate Tribunal ITAT:Data processing - an IT enabled service; Quaifies for Sec.10A exemption

Jan 29, 2016

In Favour of : Assessee
Citation Number : TS-27-ITAT-2016(CHNY)

Income tax Appellate Tribunal ITAT: Land -sale after conversion from agricultural to non-agricultural not 'adventure', accepts LTCG claim

Jan 29, 2016

In Favour of : Assessee
Citation Number : TS-31-ITAT-2015(Bang)

Income tax Appellate Tribunal ITAT:No Sec 194C TDS on supply of equipment, rejects Revenue's composite contract plea

Jan 29, 2016

In Favour of : Assessee
Citation Number : TS-30-ITAT-2015(NAG)

Income tax Appellate Tribunal ITAT:Substantive and not procedural” compliance relevant, allows R&D expense deduction u/s 35(2AB)

Jan 18, 2016

In Favour of : Both, Partially
Citation Number : TS-11-ITAT-2016-(Mum)

Supreme Court SC:SC directs HC to admit Revenue's appeal as appeal on identical issue admitted earlier

Jan 29, 2016

In Favour of : Assessee
Citation Number : TS-26-SC-2016

Income tax Appellate Tribunal ITAT:Quashes reassessment u/s147/148 absent tangible material, relies on Orient Craft (Delhi HC ruling)

Jan 29, 2016

In Favour of : Assessee
Citation Number : TS-25-ITAT-2016(DEL)

Weekly Digest #3 16 Jan to 25 Jan 2016 6 Rulings

High Court HC:Upholds ITAT order dismissing Revenue's application for recall after 4 years prescribed period u/s 254(2)

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-21-HC-2016(BOM)

Supreme Court SC:Upholds HC order, no penalty u/s 271C absent contumacious” conduct on assessee's part

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-20-SC-2016

Supreme Court SC:Reverses HC order, mere loss return cannot absolve penalty u/s 271(1)(c)

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-22-SC-2015

Income tax Appellate Tribunal ITAT:Quashes reassessment u/s147 as reasons provided to assessee at variance with re-assessment-order

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-24-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Extends Sec 10A benefit to income additions relating to export business

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-774-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes Sec 271(1)(c) penalty, as show-cause notice failed to specify default committed by assessee

Jan 25, 2016

In Favour of : Assessee
Citation Number : TS-25-ITAT-2015(Mum)

Weekly Digest #2 09 Jan to 15 Jan 2016 4 Rulings

High Court HC:Remits matter to examine inclusion of foreign-exchange expenditure in total turnover u/s 10A 

Jan 14, 2016

In Favour of : Revenue
Citation Number : TS-6-HC-2016(KAR)

Income tax Appellate Tribunal ITAT:Pre-commencement interest income on bank deposit assessable as IFOS, absent direct nexus with business 

Jan 15, 2016

In Favour of : Both, Partially
Citation Number : TS-771-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Third Member deletes 40(A)(3) disallowance, cash purchases from individual agriculturist below prescribed-limit

Jan 15, 2016

In Favour of : Assessee
Citation Number : TS-772-ITAT-2015(COCH)

Income tax Appellate Tribunal ITAT:Sec 80(IA)(10) not triggered on the basis of mere presumption absent “arrangement” 

Jan 15, 2016

In Favour of : None/NA
Citation Number : TS-9-ITAT-2016(CHANDI)

Weekly Digest #1 01 Jan to 08 Jan 2016 4 Rulings

Income tax Appellate Tribunal ITAT:ITAT quashes revision order u/s 263 absent independent inquiry by CIT 

Jan 08, 2016

In Favour of : Assessee
Citation Number : TS-759-ITAT-2015(PUN)

Income tax Appellate Tribunal ITAT:Allows capital gains exemption benefit u/s 54 despite construction of house completed beyond 3 years 

Jan 08, 2016

In Favour of : Assessee
Citation Number : TS-761-ITAT-2015(Ahd)

High Court HC:Demand stay petition rejection without adverting to assessee’s financial difficulty plea 'unsustainable'

Jan 08, 2016

In Favour of : Assessee
Citation Number : TS-760-HC-2015(BOM)

High Court HC: Vague explanations cannot offset book-entries, upholds 40A(3) disallowance

Jan 08, 2016

In Favour of : Assessee
Citation Number : TS-762-HC-2015(MAD)

Weekly Digest #52 25 Dec to 31 Dec 2015 3 Rulings

High Court HC:Deletes penalty, accepts contention that gift’s confirmation not accessible owing to ‘sour-relations’ 

Dec 31, 2015

In Favour of : None/NA
Citation Number : TS-746-HC-2015(P & H)

High Court HC:Karnataka HC gives effect to CBDT Circular specifying monetary limit for Departmental appeals 

Dec 31, 2015

In Favour of : None/NA
Citation Number : TS-747-HC-2015(KAR)

High Court HC:Modifies single bench order; Rejects taxpayer's indirect attack on assessment citing Sec 127 

Dec 31, 2015

In Favour of : None/NA
Citation Number : TS-749-HC-2015(KAR)

Weekly Digest #51 19 Dec to 24 Dec 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Interim arbitration award not taxable in the year of receipt 

Dec 25, 2015

In Favour of : Assessee
Citation Number : TS-735-ITAT-2015(VIZ)

High Court HC:Sign-off compensation to journalist, non-taxable capital receipt, Follows Khanna and Annadhanam (Delhi HC)

Dec 24, 2015

In Favour of : Assessee
Citation Number : TS-734-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Quashes Sec 263 order, debenture funded share-investment at lower price, not prejudicial to Revenue

Dec 24, 2015

In Favour of : Assessee
Citation Number : TS-728-ITAT-2015(Mum)

Supreme Court SC:Penalty proceedings based on set-aside assessment order unsustainable, deletes penalty levied u/s271E 

Dec 25, 2015

In Favour of : Assessee
Citation Number : TS-736-SC-2015

High Court HC:Stays demand till disposal of appeal by CIT(A), rejects Revenue’s ‘no financial-hardship’ plea

Dec 24, 2015

In Favour of : Assessee
Citation Number : TS-733-HC-2015(BOM)

Weekly Digest #50 12 Dec to 18 Dec 2015 5 Rulings

High Court HC:Rule 6DD illustrative and not exhaustive, deletes disallowance u/s 40A(3) 

Dec 18, 2015

In Favour of : Assessee
Citation Number : TS-719-HC-2015(P & H)

Income tax Appellate Tribunal ITAT:Chandigarh ITAT gives effect to CBDT Circular specifying monetary-limit for Departmental appeals 

Dec 18, 2015

In Favour of : Assessee
Citation Number : TS-716-ITAT-2015(CHANDI)

Income tax Appellate Tribunal ITAT:Subsequent pronouncement no valid basis to reopen assessment, quashes proceedings u/s 147 

Dec 18, 2015

In Favour of : Assessee
Citation Number : TS-718-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Non-prosecution turns assessee’s appeal defective, follows Coordinate bench ruling

Dec 18, 2015

In Favour of : Revenue
Citation Number : TS-715-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Dismisses Revenue’s appeal in ‘limine’ under CBDT’s recent Circular, specifying tax-effect

Dec 18, 2015

In Favour of : Assessee
Citation Number : TS-717-ITAT-2015(Kol)

Weekly Digest #49 05 Dec to 11 Dec 2015 3 Rulings

Income tax Appellate Tribunal ITAT:Condones over 2000 days appeal-filing delay in view of subsequent favourable Court ruling 

Dec 11, 2015

In Favour of : None/NA
Citation Number : TS-701-ITAT-2015(Kol)

High Court HC:Upholds ITAT order, directs AO to consider assessee’s belated revised return claim 

Dec 11, 2015

In Favour of : None/NA
Citation Number : TS-700-HC-2015(KER)

Income tax Appellate Tribunal ITAT:ITAT upholds reassessment initiation in second round upon issuance of valid notice u/s 148 

Dec 11, 2015

In Favour of : None/NA
Citation Number : TS-699-ITAT-2015(Mum)

Weekly Digest #48 28 Nov to 04 Dec 2015 3 Rulings

Income tax Appellate Tribunal ITAT: Grants immunity from concealment penalty levy for income offered post search 

Dec 02, 2015

In Favour of : Assessee
Citation Number : TS-681-ITAT-2015(Kol)

Income tax Appellate Tribunal ITAT: Sec 195 TDS inapplicable to ‘bio-analytical’ services payment absent “make available” condition satisfaction 

Dec 03, 2015

In Favour of : Assessee
Citation Number : TS-683-ITAT-2015(Ahd)

Supreme Court SC:Dismisses SLP, HC upheld undisclosed income addition based on assessee’s sworn admission 

Dec 04, 2015

In Favour of : Revenue
Citation Number : TS-688-SC-2015

Weekly Digest #47 21 Nov to 27 Nov 2015 4 Rulings

Income tax Appellate Tribunal ITAT:Land-sale owing to booming market not ‘adventure’, intention at inception crucial 

Nov 27, 2015

In Favour of : Assessee
Citation Number : TS-672-ITAT-2015(CHNY)

Income tax Appellate Tribunal ITAT:Sec 194H TDS inapplicable on guarantee commission fees paid to bank 

Nov 27, 2015

In Favour of : Assessee
Citation Number : TS-675-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Sec 10AA doesn’t postulate physical existence in SEZ, grants benefit to STP unit 

Nov 27, 2015

In Favour of : Assessee
Citation Number : TS-676-ITAT-2015(Kol)

Income tax Appellate Tribunal ITAT:Director’s appeal against CIT(A) order confirming penalty on company not-maintainable

Nov 27, 2015

In Favour of : Assessee
Citation Number : TS-677-ITAT-2015(HYD)

Weekly Digest #46 14 Nov to 20 Nov 2015 7 Rulings

High Court HC: Quashes reassessment absent Sec 143(2) notice issued prior to finalisation of reassessment order

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-659-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Treats share sale income as capital gains; Rejects Revenue’s trading motive plea 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-660-ITAT-2015(Mum)

High Court HC:Sets-aside ITAT Third member order; Block assessment u/s 158BD absent satisfaction note invalid 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-661-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes additions based on mere reflection in Form–26AS; Verification of beneficiary relevant 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-657-ITAT-2015(JAB)

Income tax Appellate Tribunal ITAT:Deletes Sec 14A disallowance absent exempt income; Follows Cheminvest Ltd.(Delhi HC) 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-662-ITAT-2015(DEL)

High Court HC:Quashes assessment u/s 144 being made otherwise than on material gathered by AO 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-663-HC-2015(CAL)

Income tax Appellate Tribunal ITAT: Allows expenditure u/s 37(1), recruitment of employees indicative of commencement of business 

Nov 20, 2015

In Favour of : Assessee
Citation Number : TS-658-ITAT-2015(Mum)

Weekly Digest #45 07 Nov to 13 Nov 2015 3 Rulings

High Court HC:Sets-aside property attachment by TRO, Official Liquidator to take property possession upon liquidation 

Nov 13, 2015

In Favour of : None/NA
Citation Number : TS-641-HC-2015(KAR)

Income tax Appellate Tribunal ITAT:Allows keyman insurance premium deduction u/s 37, follows co-ordinate bench 

Nov 06, 2015

In Favour of : Revenue
Citation Number : TS-635-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Confirms addition under block assessment based on sale agreement seized during search 

Nov 13, 2015

In Favour of : None/NA
Citation Number : TS-642-ITAT-2015(PUN)

Weekly Digest #44 31 Oct to 06 Nov 2015 5 Rulings

High Court HC:Allows tax deferment on advances received by law firm following cash system 

Nov 06, 2015

In Favour of : Assessee
Citation Number : TS-633-HC-2015(DEL)

High Court HC:Warns Revenue against filing of frivolous appeal on reassessment issue 

Nov 06, 2015

In Favour of : Assessee
Citation Number : TS-634-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Excludes service tax from gross receipts for presumptive income taxation u/s 44BB 

Nov 06, 2015

In Favour of : Assessee
Citation Number : TS-636-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT: Allows Sec 80 IA benefit to Government contractor for claim made in Sec 153A return

Nov 06, 2015

In Favour of : Assessee
Citation Number : TS-638-ITAT-2015(LKW)

Income tax Appellate Tribunal ITAT:Allows accumulation claim u/s 11(2), Form 10 filed at fag-end of assessment enough compliance 

Nov 06, 2015

In Favour of : Assessee
Citation Number : TS-637-ITAT-2015(DEL)

Weekly Digest #43 24 Oct to 30 Oct 2015 5 Rulings

High Court HC:Quashes reassessment u/s 147 absent reasons for revisiting concluded assessments 

Oct 30, 2015

In Favour of : Assessee
Citation Number : TS-620-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Unacceptable bonafide claim doesn’t amount to furnishing inaccurate income particulars, deletes penalty u/s 271(1)(c)

Oct 30, 2015

In Favour of : None/NA
Citation Number : TS-617-ITAT-2015(Ind)

Income tax Appellate Tribunal ITAT:Dismisses Idea Cellular’s MA relating TDS issue on discount to pre-paid distributors 

Oct 30, 2015

In Favour of : None/NA
Citation Number : TS-621-ITAT-2015(Ind)

High Court HC:Quashes Sec 271E penalty levy for loan repayment in cash, follows Worldwide Township (Del HC) 

Oct 19, 2015

In Favour of : Assessee
Citation Number : TS-597-HC-2015(DEL)

Income tax Appellate Tribunal ITAT: Land-sale to trustee below market price doesn’t disentitle trust’s Sec 11 exemption 

Oct 30, 2015

In Favour of : Assessee
Citation Number : TS-619-ITAT-2015(CHNY)

Weekly Digest #42 16 Oct to 23 Oct 2015 2 Rulings

Income tax Appellate Tribunal ITAT:Holds income from letting-out of Commercial space taxable as business income

Oct 15, 2015

In Favour of : Assessee
Citation Number : TS-594-ITAT-2015(Bang)

High Court HC:Upholds ITAT order, allows Sec 10B deduction on FDR Interest 

Oct 23, 2015

In Favour of : Assessee
Citation Number : TS-602-HC-2015(DEL)

Weekly Digest #41 10 Oct to 15 Oct 2015 4 Rulings

High Court HC:Allows deduction u/s 36(1)(xi) for Computer replacement expenditure, follows Asian Paints(Bom HC) ruling 

Oct 15, 2015

In Favour of : Assessee
Citation Number : TS-591-HC-2015(CAL)

Supreme Court SC:Sets-aside HC order, warns Writ Courts against adjudication of 'stale claims' 

Oct 12, 2015

In Favour of : None/NA
Citation Number : TS-583-SC-2015

High Court HC:Reopening solely based on earlier SC ruling, change of opinion; Quashes reassessment 

Oct 15, 2015

In Favour of : Assessee
Citation Number : TS-592-HC-2015(DEL)

High Court HC:Upholds reassessment owing to assessee’s non-disclosure of material facts 

Oct 15, 2015

In Favour of : Revenue
Citation Number : TS-593-HC-2015(MAD)