Direct tax Weekly Digest

Weekly Digest #21 23 May to 29 May 2015 3 Rulings

High Court HC:Dismisses Revenue’s appeal as appeals filed with “underlined/marked” certified copies 

May 29, 2015

In Favour of : Assessee
Citation Number : TS-301-HC-2015(AP)

Income tax Appellate Tribunal ITAT:Holds assessee’s counsel guilty of  professional-misconduct for baseless delinquent acts, imposes cost 

May 29, 2015

In Favour of : Revenue
Citation Number : TS-302-ITAT-2015(JPR)

Income tax Appellate Tribunal ITAT:Advises CCITs to engage experienced, well-trained DRs; Recommends 15 days courtroom observation 

May 28, 2015

In Favour of : Assessee
Citation Number : TS-297-ITAT-2015(Mum)

Weekly Digest #20 16 May to 22 May 2015 5 Rulings

High Court HC:Film production co., an industrial undertaking, eligible for Sec 80J deduction 

May 15, 2015

In Favour of : Assessee
Citation Number : TS-272-HC-2015(BOM)

High Court HC:Income from building, though jointly developed, assessable as property income u/s 22 

May 15, 2015

In Favour of : Assessee
Citation Number : TS-276-HC-2015(CAL)

High Court HC:Toy-exporter qualifies of Sec 80HHC deduction on income from labelling “MRF” on toys 

May 15, 2015

In Favour of : Revenue
Citation Number : TS-273-HC-2015(MAD)

Income tax Appellate Tribunal ITAT:Treats three EOUs ‘separate’; Rejects Revenue’s ‘no separate books of account’ plea 

May 22, 2015

In Favour of : None/NA
Citation Number : TS-290-ITAT-2015(DEL)

High Court HC:Compensation bonds againt debt from foreign Govt for services - a revenue receipt 

May 22, 2015

In Favour of : None/NA
Citation Number : TS-291-HC-2015(DEL)

Weekly Digest #19 09 May to 15 May 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Quashes orders u/s 263, vehicle test laboratory and consultancy activities held “charitable”

May 15, 2015

In Favour of : Assessee
Citation Number : TS-274-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes penalty u/s 271(1)(c), assessee’s reversal of overstated depreciation proves bonafide 

May 15, 2015

In Favour of : Assessee
Citation Number : TS-271-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition, no income arises until stock-in-trade of land sold 

May 15, 2015

In Favour of : Assessee
Citation Number : TS-865-ITAT-2014(Bang)

High Court HC:Accumulation claim u/s 11(2) allowed, notwithstanding non-furnishing of proposed expenditure details 

May 15, 2015

In Favour of : Assessee
Citation Number : TS-275-HC-2015(KAR)

High Court HC:Non-mentioning 'block period' doesn't invalidate Sec 158BC notice; Cites Hotel Blue Moon (SC) 

May 15, 2015

In Favour of : Revenue
Citation Number : TS-864-HC-2014(KAR)

Weekly Digest #17 18 Apr to 24 Apr 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Dismisses rectification application as partner attempting to re-agitate concluded firm’s assessment 

Apr 24, 2015

In Favour of : Revenue
Citation Number : TS-217-ITAT-2015(HYD)

High Court HC: Procurement of technical know-how, revenue expense, allowable u/s 37; Sec.35AB not applicable

Apr 24, 2015

In Favour of : Assessee
Citation Number : TS-218-HC-2015(KAR)

High Court HC: Interest conversion into loan not ‘actual payment’; Sec.43B disallowance attracted

Apr 24, 2015

In Favour of : Revenue
Citation Number : TS-219-HC-2015

High Court HC:AO's General observations cannot form basis for disallowance u/s 14A

Apr 24, 2015

In Favour of : Assessee
Citation Number : TS-220-HC-2015(P & H)

High Court HC: Industrial undertaking obtained on hire doesn't debar Sec 80I tax-holiday, Revision order quashed

Apr 24, 2015

In Favour of : Assessee
Citation Number : TS-221-HC-2015(BOM)

Weekly Digest #16 11 Apr to 17 Apr 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Letting income not 'business', chides CIT(A)'s 'adventurism' of ignoring binding judicial precedent 

Apr 17, 2015

In Favour of : Assessee
Citation Number : TS-198-ITAT-2015(DEL)

High Court HC:Sets-aside ITAT’s order recalling earlier order in guise of rectification under wealth-tax 

Apr 17, 2015

In Favour of : Assessee
Citation Number : TS-199-HC-2015(MAD)

High Court HC:“Chit-dividend” not interest, no Sec 194A TDS liability; Follows Sahib Chits (Delhi HC) 

Apr 17, 2015

In Favour of : Assessee
Citation Number : TS-201-HC-2015(KAR)

Income tax Appellate Tribunal ITAT:Rejects recall of ex-parte order, absent reason; Raps CA for non-diligent attitude 

Apr 17, 2015

In Favour of : Revenue
Citation Number : TS-202-ITAT-2015(Mum)

High Court HC:Denies Sec 80IA benefit on import license sale, absent nexus with assessee’s business 

Apr 17, 2015

In Favour of : Revenue
Citation Number : TS-203-HC-2015(TEL&AP)

Weekly Digest #15 04 Apr to 10 Apr 2015 7 Rulings

High Court HC:NMIMS’s management programme qualifies for Sec 11 exemption; Separate account books not required 

Apr 10, 2015

In Favour of : Assessee
Citation Number : TS-180-HC-2015(BOM)

Supreme Court SC:Dismisses SLP; HC allowed deduction to telecom company for product development expenses 

Apr 10, 2015

In Favour of : Revenue
Citation Number : TS-181-SC-2015

High Court HC: Construction of ‘prayer-hall’/encouraging meditation yoga not religious activity, Grants Sec 80G benefit

Apr 10, 2015

In Favour of : Revenue
Citation Number : TS-182-HC-2015(KAR)

High Court HC:‘Lease Equalization account’ not a reserve, Upholds deletion from ‘book profits’ 

Apr 10, 2015

In Favour of : Assessee
Citation Number : TS-183-HC-2015(KAR)

Income tax Appellate Tribunal ITAT: Entertains fresh plea where assessee inadvertently offered exempt income to tax 

Apr 10, 2015

In Favour of : Assessee
Citation Number : TS-184-ITAT-2015(Mum)

High Court HC:'Farsan' sale by trust not ancilliary to 'charitable activity', taxable as 'business' 

Apr 10, 2015

In Favour of : Revenue
Citation Number : TS-185-HC-2015(BOM)

Supreme Court SC:Dismisses SLP; HC held Kingfisher liable for TDS non-compliances 

Apr 10, 2015

In Favour of : Revenue
Citation Number : TS-186-SC-2015

Weekly Digest #14 28 Mar to 03 Apr 2015 5 Rulings

High Court HC:'Tenanted' building part of net-wealth, not 'own' business; Rejects 'commercial activity” plea 

Apr 02, 2015

In Favour of : Revenue
Citation Number : TS-166-HC-2015(MAD)

Income tax Appellate Tribunal ITAT:Deletes unexplained purchases addition merely based on inquiries by Sales–tax Dept 

Apr 02, 2015

In Favour of : Assessee
Citation Number : TS-168-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Deletes bogus purchases disallowance merely based on suppliers declared ‘Hawala’ 

Apr 02, 2015

In Favour of : Assessee
Citation Number : TS-858-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Capitalised Technical-Fee, depreciable basis actual payment; Provision reversal no reason for NIL ALP 

Apr 02, 2015

In Favour of : Assessee
Citation Number : TS-170-ITAT-2015(Ahd)

Income tax Appellate Tribunal ITAT:Deletes addition, as statements recorded at odd hours, Follows Kailashben (Gujarat HC) 

Apr 02, 2015

In Favour of : None/NA
Citation Number : TS-169-ITAT-2015(Ahd)

Weekly Digest #13 21 Mar to 27 Mar 2015 6 Rulings

Income tax Appellate Tribunal ITAT:Upholds Sec 271(1)(c) penalty levy; Rejects assessee’s mere ‘income recategorisation’ plea 

Mar 27, 2015

In Favour of : Assessee
Citation Number : TS-145-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:No Sec 40(a)(i) disallowance owing retro-amendment; Legal position prevailing at payment-date relevant 

Mar 27, 2015

In Favour of : Assessee
Citation Number : TS-147-ITAT-2015(PAN)

High Court HC:Higher threshold of proof required for S.271(1)(c) penalty, mere adverse findings insufficient 

Mar 27, 2015

In Favour of : Assessee
Citation Number : TS-148-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Afforestation charges in respect of mining assesses, a deductible revenue expenditure

Mar 27, 2015

In Favour of : Assessee
Citation Number : TS-854-ITAT-2014(PAN)

Income tax Appellate Tribunal ITAT:Rules cause of delay, not length, relevant for condoning delay; Cites Nand Kishore (SC) 

Mar 27, 2015

In Favour of : None/NA
Citation Number : TS-149-ITAT-2015(CHNY)

Income tax Appellate Tribunal ITAT:Payment for utilization of credit-card facilities, not commission; Sec 194H inapplicable 

Mar 27, 2015

In Favour of : Assessee
Citation Number : TS-150-ITAT-2015(Bang)

Weekly Digest #12 14 Mar to 20 Mar 2015 5 Rulings

Income tax Appellate Tribunal ITAT: For interest calculation u/s 201(1A) ‘month’= 30 days and not British calendar month 

Mar 20, 2015

In Favour of : Assessee
Citation Number : TS-124-ITAT-2015(HYD)

High Court HC: Assessee's failure in substantiating claim, don't result in automatic levy of penalty

Mar 20, 2015

In Favour of : Assessee
Citation Number : TS-125-HC-2015(BOM)

Income tax Appellate Tribunal ITAT: Deletes addition; Sec 40A(3) inapplicable on cash purchase of scrap from Railways 

Mar 20, 2015

In Favour of : Assessee
Citation Number : TS-126-ITAT-2015(Bang)

High Court HC:Declines release of seized stolen cash for penalty recovery as ownership-proof pending 

Mar 20, 2015

In Favour of : Assessee
Citation Number : TS-127-HC-2015(DEL)

High Court HC:Directs ITAT to admit appeal; Holds Rs.500, valid court-fees against penalty order 

Mar 20, 2015

In Favour of : Assessee
Citation Number : TS-128-HC-2015(KER)

Weekly Digest #11 07 Mar to 13 Mar 2015 3 Rulings

High Court HC:Higher education of MD’s daughter, allowable; Expense had direct nexus with business 

Mar 13, 2015

In Favour of : Assessee
Citation Number : TS-111-HC-2015(KAR)

Income tax Appellate Tribunal ITAT:Subsequent Panchnama concluding earlier Search, 'empty formality”;  does not extend limitation u/s.158BE

Mar 13, 2015

In Favour of : Assessee
Citation Number : TS-847-ITAT-2014(DEL)

Income tax Appellate Tribunal ITAT:Oral gift (Hiba) valid, Mohammedan law accepted u/s.129 TOPA, S.54F benefit allowed

Mar 13, 2015

In Favour of : Assessee
Citation Number : TS-112-ITAT-2015(Bang)

Weekly Digest #10 28 Feb to 06 Mar 2015 4 Rulings

High Court HC: Jewellery received as gift on marriage, sufficient explanation; Sec.69 unwarranted

Mar 06, 2015

In Favour of : Assessee
Citation Number : TS-95-HC-2015(BOM)

High Court HC:Discount paid by chit-fund co. to subscribers not interest, no TDS u/s 194A

Mar 06, 2015

In Favour of : Assessee
Citation Number : TS-730-HC-2013(TEL&AP)

Income tax Appellate Tribunal ITAT:Quantum-appeal before HC indicative of “legal” issue; Declines Nayan-Builders (HC); Remands Penalty 

Mar 06, 2015

In Favour of : Assessee
Citation Number : TS-97-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:“Brand-owner' not party to Royalty Agreement; S.115A conditions not met, tax-rate NA 

Mar 06, 2015

In Favour of : Revenue
Citation Number : TS-98-ITAT-2015(Mum)

Weekly Digest #9 21 Feb to 27 Feb 2015 3 Rulings

Income tax Appellate Tribunal ITAT:'Axiomatic delay defeats equity”; Questions Professional Competence & Work Ethics 

Feb 27, 2015

In Favour of : Revenue
Citation Number : TS-83-ITAT-2015(JPR)

Income tax Appellate Tribunal ITAT:No Sec 40(a)(ia) disallowance for short tax deduction, Follows Kolkata ITAT in S.K.Tekriwala

Feb 27, 2015

In Favour of : Assessee
Citation Number : TS-85-ITAT-2015(HYD)

High Court HC:Allows Sec54F benefit for investment made in wife’s name, Follows Ravinder Kumar Arora 

Feb 27, 2015

In Favour of : Assessee
Citation Number : TS-724-HC-2013(DEL)

Weekly Digest #8 14 Feb to 20 Feb 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Rebutting ‘representative’ status for reassessment not justified, once accepted for ROI filing 

Feb 20, 2015

In Favour of : Revenue
Citation Number : TS-64-ITAT-2015(DEL)

High Court HC:Upholds quashing reassessment; TPO confined to ALP determination, cannot declare transaction sham 

Feb 20, 2015

In Favour of : Assessee
Citation Number : TS-837-HC-2014(TEL&AP)

High Court HC: HC in Tata Elxsi good law till set aside; Upholds comparability precedents

Feb 20, 2015

In Favour of : Assessee
Citation Number : TS-838-HC-2014

High Court HC:'No explanation' irrelevant when “specific queries” show application-of-mind, Sec 263 order quashed 

Feb 20, 2015

In Favour of : Assessee
Citation Number : TS-66-HC-2015(BOM)

Supreme Court SC: Dismisses SLP, HC denied interfering with Settlement Commission's penalty calculation, absent "perversity”

Feb 20, 2015

In Favour of : Revenue
Citation Number : TS-67-SC-2015

Weekly Digest #7 07 Feb to 13 Feb 2015 5 Rulings

High Court HC:Directs Revenue to state deviation from settled position on Affidavit; Denies admissibility 

Feb 13, 2015

In Favour of : Assessee
Citation Number : TS-49-HC-2015(BOM)

High Court HC:Assessee entitled to Sec 80I benefit without reducing Sec 80HH deduction 

Feb 13, 2015

In Favour of : Assessee
Citation Number : TS-50-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:For S.54, investment in ‘a residential house’ suffices, need not be 'new' 

Feb 13, 2015

In Favour of : Assessee
Citation Number : TS-51-ITAT-2015(HYD)

High Court HC:Once e-filed within due date, furnishing manual ITR-V belatedly not 'delay' 

Feb 13, 2015

In Favour of : Assessee
Citation Number : TS-52-HC-2015(BOM)

Income tax Appellate Tribunal ITAT: Sec 10A - exemption provision, follows Yokogawa; Denies non-eligible unit loss set-off against 10A-income 

Feb 13, 2015

In Favour of : Both, Partially
Citation Number : TS-53-ITAT-2015(Bang)

Weekly Digest #6 31 Jan to 06 Feb 2015 4 Rulings

High Court HC:Quashes Sec 154 order in case of ambiguity; Bonus stripping u/s 94(8) not retrospective

Feb 06, 2015

In Favour of : Assessee
Citation Number : TS-38-HC-2015(MAD)

Income tax Appellate Tribunal ITAT:For S.54F benefit, not all Estates,'Residence'; Onus on assessee to prove 

Feb 06, 2015

In Favour of : Revenue
Citation Number : TS-37-ITAT-2015(Bang)

Income tax Appellate Tribunal ITAT:Notice u/s.143(2) issued beyond prescribed time, invalid only if challenged before AO 

Jan 30, 2015

In Favour of : Both, Partially
Citation Number : TS-24-ITAT-2015(HYD)

Supreme Court SC:Dismisses assessee’s SLP; HC upheld taxability under MAT provisions inspite Sec 80IB eligibility 

Feb 06, 2015

In Favour of : Revenue
Citation Number : TS-39-SC-2015

Weekly Digest #5 24 Jan to 30 Jan 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Statement given u/s 133A, not an oath; No Estoppel, can be retracted 

Jan 30, 2015

In Favour of : Assessee
Citation Number : TS-829-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Allows Sec 10A deduction; Holds Units II and III eligible as satisfy qualifying conditions 

Jan 28, 2015

In Favour of : Assessee
Citation Number : TS-21-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT: Purchase of technical drawings & design on principal-to-principal basis not Royalty; No TDS, no Sec 40(a)(ia) disallowance 

Jan 30, 2015

In Favour of : Assessee
Citation Number : TS-831-ITAT-2014(Ind)

Income tax Appellate Tribunal ITAT:Onus of proof on AO for additions based on AIR information, else not sustainable 

Jan 16, 2015

In Favour of : Both, Partially
Citation Number : TS-818-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Condones 2565 days delay for sick co under liquidation; D eletes 271(1)(c), order sparse 

Jan 30, 2015

In Favour of : Assessee
Citation Number : TS-26-ITAT-2015(DEL)

Weekly Digest #4 17 Jan to 23 Jan 2015 5 Rulings

High Court HC:Quashes reassessment being re-appreciation of record; Relies on Kelvinator 

Jan 23, 2015

In Favour of : Assessee
Citation Number : TS-14-HC-2015(DEL)

High Court HC:CIT u/s 264 duty bound to revise AO’s order in light of retro amendment 

Jan 23, 2015

In Favour of : Assessee
Citation Number : TS-826-HC-2014(BOM)

Income tax Appellate Tribunal ITAT:Can’t tax NOR assessee’s stock option proceeds not relatable to India 

Jan 23, 2015

In Favour of : Assessee
Citation Number : TS-15-ITAT-2015(HYD)

Income tax Appellate Tribunal ITAT:FTS by HO; No proof of LO /PE involvement; Expenses allowed 

Jan 23, 2015

In Favour of : Assessee
Citation Number : TS-827-ITAT-2014(DEL)

Income tax Appellate Tribunal ITAT:Grants Sec 12A registration; Enquiry at registration stage confined to trust’s objects 

Jan 23, 2015

In Favour of : Assessee
Citation Number : TS-17-ITAT-2015(DEL)

Weekly Digest #3 09 Jan to 16 Jan 2015 6 Rulings

High Court HC:Allows higher depreciation of 80 on power evacuation infrastructure, being integral to windmill 

Jan 16, 2015

In Favour of : Assessee
Citation Number : TS-819-HC-2014(P & H)

High Court HC:No business loss set-off against betting income taxable 40 under pre-2001 Sec 115BB 

Jan 16, 2015

In Favour of : Revenue
Citation Number : TS-821-HC-2014(MAD)

High Court HC:30 days expiry, not ROI filing-date, starting point for Sec 220(2) interest levy 

Jan 13, 2015

In Favour of : Assessee
Citation Number : TS-814-HC-2014(KAR)

Income tax Appellate Tribunal ITAT:Denies deduction to Co-op Bank's contribution to Education-Fund as 'appropriation from profit' 

Jan 13, 2015

In Favour of : Revenue
Citation Number : TS-813-ITAT-2014(HYD)

Income tax Appellate Tribunal ITAT:Circle-rate prevailing on transaction date relevant for Sec 50C , Follows Vishkhapatnam ITAT in Lahiri 

Jan 16, 2015

In Favour of : Both, Partially
Citation Number : TS-5-ITAT-2015(DEL)

High Court HC:Can’t deny benefit by invoking deleted Sec 10B(9); Explains reason for deletion 

Jan 16, 2015

In Favour of : Assessee
Citation Number : TS-820-HC-2014(KAR)

Weekly Digest #2 03 Jan to 08 Jan 2015 4 Rulings

High Court HC:Compensation upon termination of contract for specialized machinery, capital receipt, not taxable 

Jan 08, 2015

In Favour of : Assessee
Citation Number : TS-808-HC-2014(TEL&AP)

Income tax Appellate Tribunal ITAT:Services from specified persons’ u/s 13(3) at market value not prohibited; Grants Sec 11 / 12 benefits 

Jan 02, 2015

In Favour of : Assessee
Citation Number : TS-794-ITAT-2014(Bang)

High Court HC:Admonishes Revenue for non- communication of prosecution initiated against Jet Airways; Stays SCNs 

Jan 08, 2015

In Favour of : None/NA
Citation Number : TS-809-HC-2014(BOM)

Supreme Court SC:Dismisses SLP, HC held financial-institution's charge to take pre-eminence over Revenue's charge 

Jan 02, 2015

In Favour of : Assessee
Citation Number : TS-793-SC-2014

Weekly Digest #1 27 Dec to 02 Jan 2015 4 Rulings

Income tax Appellate Tribunal ITAT: Sec 14A inapplicable to insurance companies; Relies co-ordinate bench in assessee's own case 

Jan 02, 2015

In Favour of : Assessee
Citation Number : TS-796-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:No TDS on sitting fees paid to director pre-2012 Sec 194J(1)(ba) insertion 

Jan 02, 2015

In Favour of : Assessee
Citation Number : TS-795-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Power-generation akin to manufacturing; Allows additional-depreciation on windmill under pre-2012 amended Sec 32(1)(iia) 

Jan 02, 2015

In Favour of : Assessee
Citation Number : TS-797-ITAT-2014(CHNY)

Income tax Appellate Tribunal ITAT:Taxes FTS at 10 u/s 115A(BB) as against US-DTAA 15 rate applying Sec 90(2) 

Dec 30, 2014

In Favour of : Assessee
Citation Number : TS-788-ITAT-2014(DEL)