Direct tax Weekly Digest

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)

Weekly Digest #40 04 Oct to 09 Oct 2015 4 Rulings

Income tax Appellate Tribunal ITAT:Transfer through “family arrangement” valid, deletes capital gains addition

Oct 09, 2015

In Favour of : Assessee
Citation Number : TS-576-ITAT-2015(Kol)

Income tax Appellate Tribunal ITAT:Payment for customer support services subject to TDS u/s 194J, being FTS 

Oct 09, 2015

In Favour of : Revenue
Citation Number : TS-577-ITAT-2015(CHNY)

High Court HC:Regrouping of shares not permissible once audited accounts signed by Directors/Auditors

Oct 09, 2015

In Favour of : Assessee
Citation Number : TS-578-HC-2015(DEL)

High Court HC:Unexplained expenditure addition u/s 69C maintainable upon assessee’s failure to prove sundry creditors 

Oct 09, 2015

In Favour of : Assessee
Citation Number : TS-579-HC-2015(KAR)

Weekly Digest #39 26 Sep to 03 Oct 2015 2 Rulings

Income tax Appellate Tribunal ITAT: Upholds Sec.263-order; Failure to pass draft assessment order renders Sec.143(3) order erroneous

Oct 03, 2015

In Favour of : None/NA
Citation Number : TS-878-ITAT-2014(PAN)

Supreme Court SC: Directs reconsideration of CIT's promotion rejected based on un-communicated reports

Oct 03, 2015

In Favour of : None/NA
Citation Number : TS-564-SC-2015

Weekly Digest #38 19 Sep to 25 Sep 2015 6 Rulings

Income tax Appellate Tribunal ITAT:Deletes Sec 40(a)(ia) disallowance for depreciation, as asset-cost capitalized 

Sep 25, 2015

In Favour of : None/NA
Citation Number : TS-549-ITAT-2015(Bang)

Income tax Appellate Tribunal ITAT:Confirms levy of penalty u/s 271(1)(c); Ignorance no bliss in the eyes of law 

Sep 25, 2015

In Favour of : Revenue
Citation Number : TS-550-ITAT-2015(JPR)

Income tax Appellate Tribunal ITAT: Allows agricultural income exemption u/s 10(1) for production and sale of 'Seeds' 

Sep 25, 2015

In Favour of : None/NA
Citation Number : TS-547-ITAT-2015(HYD)

High Court HC:Annuls fresh reassessment initiated during pendency of earlier proceedings 

Sep 25, 2015

In Favour of : None/NA
Citation Number : TS-548-HC-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes suppressed sales addition merely based on surmises & conjectures 

Sep 25, 2015

In Favour of : Assessee
Citation Number : TS-546-ITAT-2015(DEL)

Supreme Court SC:Land under the mischief of Ceiling Act has “depressing effect” for wealth-tax purpose 

Sep 22, 2015

In Favour of : None/NA
Citation Number : TS-534-SC-2015

Weekly Digest #37 12 Sep to 18 Sep 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Grants Sec 12AA registration, execution of Formal Trust deed” not mandatory

Sep 18, 2015

In Favour of : Assessee
Citation Number : TS-528-ITAT-2015(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition based on “loose paper” as same not recovered from assessee’s possession 

Sep 18, 2015

In Favour of : Assessee
Citation Number : TS-529-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Requirement of pure life insurance policy alien to Sec10(10D), recalls earlier order

Sep 18, 2015

In Favour of : Assessee
Citation Number : TS-530-ITAT-2015(ASR)

Supreme Court SC:Dismisses SLP; Sec 271(1)(c) penalty quashed for wrong claim based on Professional advice 

Sep 18, 2015

In Favour of : None/NA
Citation Number : TS-531-SC-2015

Supreme Court SC:Dismisses SLP; HC had deleted Sec 43B disallowance on unpaid service tax 

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-514-SC-2015

Weekly Digest #36 05 Sep to 11 Sep 2015 5 Rulings

High Court HC: Upholds Sec 54F benefit despite non-deposit of amount in capital-gains account scheme 

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-876-HC-2014(KAR)

High Court HC: Grants 54EC-benefit for investing capital-gains in REC bonds though beyond stipulated timeline  

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-518-HC-2015(BOM)

Supreme Court SC:Dismisses Revenue SLP; HC allowed Sec 80IB(10) benefit to builders / developers 

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-515-SC-2015

Income tax Appellate Tribunal ITAT: ITAT:Allows deduction to Pharma co. for sponsoring doctors' foreign trips for AY 2008-09

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-517-ITAT-2015(Mum)

High Court HC:Directs ITAT to consider assessee's cross objections though not urged before CIT(A)

Sep 11, 2015

In Favour of : Assessee
Citation Number : TS-516-HC-2015(DEL)

Weekly Digest #35 29 Aug to 04 Sep 2015 3 Rulings

Income tax Appellate Tribunal ITAT: ITAT:Holds interest income of NBFC taxable as business income, not IFOS 

Sep 04, 2015

In Favour of : None/NA
Citation Number : TS-500-ITAT-2015(Mum)

High Court HC:Premium for share-buyback, revenue expenditure; Distinguishes brookebond India (SC) 

Sep 02, 2015

In Favour of : Assessee
Citation Number : TS-496-HC-2015(BOM)

Income tax Appellate Tribunal ITAT:No TDS on software reimbursements to foreign parent, follows GE Technology SC-ruling 

Sep 04, 2015

In Favour of : None/NA
Citation Number : TS-501-ITAT-2015(Mum)

Weekly Digest #34 22 Aug to 28 Aug 2015 5 Rulings

Income tax Appellate Tribunal ITAT:No Sec 194A TDS on interest payments by Co-op Banks pre-June, 2015 

Aug 25, 2015

In Favour of : Assessee
Citation Number : TS-478-ITAT-2015(PAN)

High Court HC:Attachment notice issued on ‘math’ reinstated; Writ dismissed for want of locus standi 

Aug 28, 2015

In Favour of : Assessee
Citation Number : TS-488-HC-2015(KAR)

Supreme Court SC:Dismisses SLP ; Quashes reassessment notice as satisfaction was recorded mechanically 

Aug 28, 2015

In Favour of : Assessee
Citation Number : TS-489-SC-2015

Income tax Appellate Tribunal ITAT: Annuls assessment as Sec 143(2) notice issued on last day of limitation period 

Aug 28, 2015

In Favour of : Assessee
Citation Number : TS-490-ITAT-2015(LKW)

Income tax Appellate Tribunal ITAT:Dismisses Revenue’s appeal, CBDT Instruction raising appeal-filing limit applicable to pending cases

Aug 28, 2015

In Favour of : None/NA
Citation Number : TS-491-ITAT-2015(DEL)

Weekly Digest #33 14 Aug to 15 Aug 2015 5 Rulings

High Court HC:Goodwill disbursement to retiring partner not ‘casual’ receipt, rejects ITAT’s conclusion as baseless 

Aug 15, 2015

In Favour of : Assessee
Citation Number : TS-460-HC-2015(BOM)

Supreme Court SC: Dismisses Revenue's appeal, upholds HC's review power

Aug 21, 2015

In Favour of : None/NA
Citation Number : TS-470-SC-2015

Income tax Appellate Tribunal ITAT:Deletes income addition based on Form 26AS, wherein deductor misquoted assessee’s PAN 

Aug 21, 2015

In Favour of : None/NA
Citation Number : TS-471-ITAT-2015(Mum)

High Court HC:Upholds Tribunal’s order; Rejects Misc. Application filed after substantial lapse of time 

Aug 21, 2015

In Favour of : Assessee
Citation Number : TS-473-HC-2015(TEL&AP)

Income tax Appellate Tribunal ITAT:Sec 148 notice in deceased's name ‘invalid’; Relies on Allahabad HC ruling in Suresh Chand 

Aug 21, 2015

In Favour of : Assessee
Citation Number : TS-472-ITAT-2015(DEL)

Weekly Digest #32 08 Aug to 14 Aug 2015 3 Rulings

Supreme Court SC:Dismisses CBDT’s SLP; HC allowed writ praying return filing due-date extension

Aug 14, 2015

In Favour of : None/NA
Citation Number : TS-457-SC-2015

High Court HC:Allows bad-debts claim, no deduction denial for ‘Principal’ amount not offered to tax

Aug 14, 2015

In Favour of : Assessee
Citation Number : TS-458-HC-2015(BOM)

High Court HC: Partners not expected to be aware of Firm’s assessment; Deletes interest u/s 215

Aug 14, 2015

In Favour of : Assessee
Citation Number : TS-459-HC-2015(P & H)

Weekly Digest #31 01 Aug to 07 Aug 2015 6 Rulings

Income tax Appellate Tribunal ITAT:CIT(A) cannot tax new income during appeal involving AO' order post-ITAT decision 

Aug 07, 2015

In Favour of : None/NA
Citation Number : TS-443-ITAT-2015(DEL)

High Court HC:Incorrect claim doesn’t equate to furnishing inaccurate particulars; Relies on Reliance Petroproducts 

Aug 07, 2015

In Favour of : Assessee
Citation Number : TS-444-HC-2015(BOM)

Supreme Court SC:Remits matter back to HC; Adjudication without framing question of law erroneous 

Aug 07, 2015

In Favour of : None/NA
Citation Number : TS-445-SC-2015

Supreme Court SC:Dismisses assessee’s SLP, Upholds penalty on concealment distinguishing Balbir Singh ruling 

Aug 07, 2015

In Favour of : Revenue
Citation Number : TS-446-SC-2015

High Court HC:Reassessment confined to items mentioned in notice, consideration of unrelated item impermissible 

Aug 07, 2015

In Favour of : Assessee
Citation Number : TS-442-HC-2015(ALL)

Income tax Appellate Tribunal ITAT:Deletes 40(a)(ia) disallowance in view of assessee’s compliance with Sec 194C(6) 

Jul 24, 2015

In Favour of : Assessee
Citation Number : TS-415-ITAT-2015(HYD)

Weekly Digest #30 25 Jul to 31 Jul 2015 4 Rulings

High Court HC:Right to receive income contingent upon expiry of defect-free period; Upholds non-accrual 

Jul 29, 2015

In Favour of : Assessee
Citation Number : TS-873-HC-2014(AP)

Income tax Appellate Tribunal ITAT:Allows Derivative loss set- off against export profits;Holds derivative loss as business loss 

Jul 31, 2015

In Favour of : Assessee
Citation Number : TS-426-ITAT-2015(CHNY)

Income tax Appellate Tribunal ITAT: Catalogue printing, not specialized activity, requiring ‘making available’ technology; Directs further examination 

Jul 29, 2015

In Favour of : Both, Partially
Citation Number : TS-424-ITAT-2015(Bang)

High Court HC:Allows assessee’s writ; Sets aside ITAT’s order for disregarding its earlier order 

Jul 31, 2015

In Favour of : Assessee
Citation Number : TS-427-HC-2015(BOM)

Weekly Digest #29 18 Jul to 24 Jul 2015 5 Rulings

Income tax Appellate Tribunal ITAT:Allows Sec 80-IB deduction on Goa VAT Incentive, follows Hyderabad ITAT in Coromandel 

Jul 24, 2015

In Favour of : Assessee
Citation Number : TS-416-ITAT-2015(PAN)

High Court HC:Rejects reassessment on “protective basis” when addition considered in first assessment round 

Jul 22, 2015

In Favour of : Assessee
Citation Number : TS-411-HC-2015(ALL)

High Court HC:Failure to record satisfaction renders block assessment void; Relies on Manish Maheshwari

Jul 24, 2015

In Favour of : Assessee
Citation Number : TS-417-HC-2015(MP)

Income tax Appellate Tribunal ITAT:Deletes Sec 271AAA penalty, rules a loose sheet cannot constitute books of accounts 

Jul 24, 2015

In Favour of : Assessee
Citation Number : TS-419-ITAT-2015(Kol)

Income tax Appellate Tribunal ITAT:Assessee's absence in proceedings not basis to dismiss appeal, Quashes CIT(A)'s order 

Jul 22, 2015

In Favour of : Assessee
Citation Number : TS-410-ITAT-2015(CHNY)

Weekly Digest #28 11 Jul to 17 Jul 2015 6 Rulings

Income tax Appellate Tribunal ITAT:Receipt of ‘on-money’ subject to tax in year of sale-deed execution 

Jul 17, 2015

In Favour of : Assessee
Citation Number : TS-398-ITAT-2015(Ahd)

Supreme Court SC:Dismisses SLP, HC disallowed salary arrears claim of assessee, under rehabilitation 

Jul 17, 2015

In Favour of : Revenue
Citation Number : TS-399-SC-2015

Income tax Appellate Tribunal ITAT:Mistake in interpreting a statutory provision, not a “mistake apparent on record 

Jul 17, 2015

In Favour of : None/NA
Citation Number : TS-401-ITAT-2015(HYD)

High Court HC:No TDS when payment held non-taxable in recipient’s hand by HC 

Jul 17, 2015

In Favour of : Assessee
Citation Number : TS-397-HC-2015(KAR)

High Court HC:“Reason”, not “conclusion”, imperative for rejecting assessee’s reassessment objections; Follows Woolcombers SC 

Jul 17, 2015

In Favour of : Assessee
Citation Number : TS-400-HC-2015(KAR)

Supreme Court SC: Dismisses SLP; HC applied exclusivity test while assessing 100% windmill depreciation claim

Jul 17, 2015

In Favour of : None/NA
Citation Number : TS-402-SC-2015