Direct tax Weekly Digest

Weekly Digest #35 20 Dec to 26 Dec 2014 4 Rulings

High Court HC:Castigates ITAT for dealing with SBI’s MA inappropriately, directs revival of appeal 

Dec 26, 2014

In Favour of : Assessee
Citation Number : TS-782-HC-2014(BOM)

High Court HC:Allows 'business loss' on transfer of subsidiary's shares applying commercial expediency principles 

Dec 26, 2014

In Favour of : Assessee
Citation Number : TS-781-HC-2014(BOM)

High Court HC:Condones appeal-delay on Revenue assurance that Departmental affairs improving, slaps Rs 25K cost 

Dec 26, 2014

In Favour of : None/NA
Citation Number : TS-780-HC-2014(BOM)

High Court HC:Directs ITAT to render “substantial justice” instead of wasting time on “technical grounds” 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-767-HC-2014(BOM)

Weekly Digest #34 13 Dec to 19 Dec 2014 5 Rulings

Income tax Appellate Tribunal ITAT:Exploration right granted by government constitutes “business commencement”, allows expense deduction 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-771-ITAT-2014(DEL)

Income tax Appellate Tribunal ITAT:Customs House Agent, mere intermediary, not liable to deduct tax on payments 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-770-ITAT-2014(Mum)

High Court HC:Upholds ITAT order deleting Sec 40A(3) addition; No requirement of single principal for agent 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-769-HC-2014(AP)

Income tax Appellate Tribunal ITAT:Deletes concealment penalty absent Sec 41(1) benefit on creditor's unilateral write-off 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-768-ITAT-2014(Ahd)

Income tax Appellate Tribunal ITAT:Allows expense deduction during business sale year absent recovery from purchaser 

Dec 19, 2014

In Favour of : Assessee
Citation Number : TS-766-ITAT-2014(DEL)

Weekly Digest #33 06 Dec to 12 Dec 2014 5 Rulings

Income tax Appellate Tribunal ITAT:Denies expenses deduction; Job-work income, a colourable device to show business continuity 

Dec 09, 2014

In Favour of : Revenue
Citation Number : TS-741-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Interest payment to nodal agency of Government not liable to TDS u/s 194A 

Dec 12, 2014

In Favour of : Assessee
Citation Number : TS-751-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT:Verbosity of object clause no reason to disentitle Sec 12AA registration 

Dec 12, 2014

In Favour of : Assessee
Citation Number : TS-749-ITAT-2014(CHNY)

High Court HC:Holds interest income 'attributable' to carrying on credit business, allows Sec 80P(2) deduction 

Dec 12, 2014

In Favour of : Assessee
Citation Number : TS-750-HC-2014(KAR)

High Court HC: Single transaction carried from settlement to settlement sufficient to constitute speculative business

Dec 12, 2014

In Favour of : Revenue
Citation Number : TS-748-HC-2014(GUJ)

Weekly Digest #32 29 Nov to 05 Dec 2014 4 Rulings

Income tax Appellate Tribunal ITAT:Possession date, not development deed execution date relevant for capital gains determination 

Dec 05, 2014

In Favour of : Assessee
Citation Number : TS-730-ITAT-2014(Mum)

High Court HC:Quashes reassessment initiation based merely on surmises that ‘provisions’ represented unascertained liability 

Dec 05, 2014

In Favour of : Assessee
Citation Number : TS-731-HC-2014(DEL)

Supreme Court SC:Dismisses Revenue's SLP, HC held pre-2002, non-compete fees, a non-taxable capital receipt 

Dec 05, 2014

In Favour of : Assessee
Citation Number : TS-732-SC-2014

High Court HC:No TDS on hire-charges for trucks used for own business, follows Poompuhar 

Dec 05, 2014

In Favour of : Assessee
Citation Number : TS-733-HC-2014(MAD)

Weekly Digest #31 22 Nov to 28 Nov 2014 5 Rulings

Income tax Appellate Tribunal ITAT:Allows Sec 80IB(10) benefit, Rejects Revenue's plea of assessee-developer merely undertaking 'works' contract 

Nov 28, 2014

In Favour of : Assessee
Citation Number : TS-718-ITAT-2014(COCH)

Income tax Appellate Tribunal ITAT:Deletes disallowance, holds Sec 40(a)(ia) amendment extending payment upto ROI due-date as ‘retrospective’ 

Nov 28, 2014

In Favour of : Assessee
Citation Number : TS-717-ITAT-2014(CHNY)

Income tax Appellate Tribunal ITAT:‘Sufficient capital’ presumption insufficient to hold own funds utilized for tax-free investments 

Nov 28, 2014

In Favour of : None/NA
Citation Number : TS-715-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Dismisses Revenue's appeal; 2014-Instruction raising appeal-filing monetary limit applicable to pending cases 

Nov 28, 2014

In Favour of : Assessee
Citation Number : TS-714-ITAT-2014(DEL)

Income tax Appellate Tribunal ITAT:Holds un-cultivable land as 'non-agricultural', liable to capital gains tax on sale 

Nov 28, 2014

In Favour of : None/NA
Citation Number : TS-716-ITAT-2014(PAN)

Weekly Digest #30 14 Nov to 21 Nov 2014 5 Rulings

Income tax Appellate Tribunal ITAT:Approves assessee’s adoption of AS-7, though not notified u/s 145 

Nov 21, 2014

In Favour of : Assessee
Citation Number : TS-699-ITAT-2014(Mum)

High Court HC:Deletes concealment penalty absent intentional suppression of income by assessee 

Nov 21, 2014

In Favour of : Assessee
Citation Number : TS-700-HC-2014(TEL&AP)

High Court HC:Assessee’s retracted statement not evidence, no basis for order u/s 158BC 

Nov 21, 2014

In Favour of : Assessee
Citation Number : TS-701-HC-2014(AP)

High Court HC:No scope for Sec 11(5) violation when CBDT order u/s 11(1)(c) specifically grants exemption 

Nov 21, 2014

In Favour of : Assessee
Citation Number : TS-703-HC-2014(DEL)

High Court HC:Loan waiver can't be 'business income' u/s 28(iv) when interest previously taxed as IOS 

Nov 21, 2014

In Favour of : Assessee
Citation Number : TS-704-HC-2014(BOM)

Weekly Digest #29 08 Nov to 13 Nov 2014 5 Rulings

High Court HC:Intimation u/s 143(1) an order for Sec 264 purposes, can be subject to revisional jurisdiction 

Nov 13, 2014

In Favour of : Assessee
Citation Number : TS-688-HC-2014(BOM)

Income tax Appellate Tribunal ITAT:Denies Sec 10B deduction to manufacturer cum exporter on exports made through third-party 

Nov 13, 2014

In Favour of : Revenue
Citation Number : TS-687-ITAT-2014(Bang)

High Court HC:AO can’t process return u/s 143(1)(a) and disallow claim, obligated to issue notice u/s 143(2) 

Nov 14, 2014

In Favour of : Assessee
Citation Number : TS-690-HC-2014(AP)

Income tax Appellate Tribunal ITAT:Holds consideration for plant know-how in connection with plant erection, not 'royalty' 

Nov 13, 2014

In Favour of : Both, Partially
Citation Number : TS-686-ITAT-2014(PUN)

Income tax Appellate Tribunal ITAT:Allows capital expenditure deduction on scientific research; Admonishes AO for casual approach 

Nov 14, 2014

In Favour of : Assessee
Citation Number : TS-691-ITAT-2014(HYD)

Weekly Digest #28 01 Nov to 07 Nov 2014 7 Rulings

Income tax Appellate Tribunal ITAT:No Sec 194H TDS for sub-broker payments absent service-contract for marketing / clerical work 

Nov 05, 2014

In Favour of : Assessee
Citation Number : TS-669-ITAT-2014(Mum)

High Court HC: Upholds ITAT order, pre-2014 amendment to Sec 54EC, exemption upto Rs 1 crore available 

Nov 07, 2014

In Favour of : Assessee
Citation Number : TS-675-HC-2014(MAD)

Income tax Appellate Tribunal ITAT:Courses conducted independently, apart from approved/affiliated courses, not “Education” u/s.2(15) 

Nov 07, 2014

In Favour of : None/NA
Citation Number : TS-674-ITAT-2014(COCH)

Income tax Appellate Tribunal ITAT: No Sec 195 TDS on 'reimbursement' to NR associates providing administrative / management support 

Nov 07, 2014

In Favour of : Assessee
Citation Number : TS-676-ITAT-2014(Kol)

High Court HC: 12 month holding-period exception for LTCA applies equally to unlisted pvt co shares

Nov 07, 2014

In Favour of : Assessee
Citation Number : TS-672-HC-2014(KAR)

Income tax Appellate Tribunal ITAT:Restrictive covenant in consultants' contract doesn't establish employer-employee relationship, Sec 192 TDS inapplicable 

Nov 07, 2014

In Favour of : None/NA
Citation Number : TS-673-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Quashes re-assessment on Danish assessee based on surmises & presumptions 

Nov 05, 2014

In Favour of : Assessee
Citation Number : TS-667-ITAT-2014(Mum)

Weekly Digest #27 18 Oct to 31 Oct 2014 3 Rulings

Income tax Appellate Tribunal ITAT:Perquisite valuation norms for 'government employees' inapplicable to assessee, an autonomous body 

Oct 31, 2014

In Favour of : Revenue
Citation Number : TS-656-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT:AO to verify whether seconded employees’ services FTS; Rejects reliance on IDS Software 

Oct 31, 2014

In Favour of : None/NA
Citation Number : TS-657-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT: After Agra, Bangalore ITAT declares second proviso to Sec 40(a)(ia) retrospective; Deletes disallowance 

Oct 31, 2014

In Favour of : Assessee
Citation Number : TS-658-ITAT-2014(Bang)

Weekly Digest #26 11 Oct to 17 Oct 2014 3 Rulings

High Court HC:Sec 143(1) intimation not assessment completion, doesn't preclude taxpayer from filing revised return 

Oct 10, 2014

In Favour of : Assessee
Citation Number : TS-629-HC-2014(CAL)

Income tax Appellate Tribunal ITAT:Tribunal can’t ignore mistakes apparent from record, though parties don't present properly 

Oct 17, 2014

In Favour of : None/NA
Citation Number : TS-638-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Partners' remuneration disallowance not applicable in every best judgment assessment of firm 

Oct 17, 2014

In Favour of : Assessee
Citation Number : TS-639-ITAT-2014(Bang)

Weekly Digest #25 02 Oct to 10 Oct 2014 5 Rulings

Income tax Appellate Tribunal ITAT:Plant not 'set-up' until trial runs successful, holds operational expenses as capital 

Oct 10, 2014

In Favour of : Revenue
Citation Number : TS-628-ITAT-2014(Mum)

High Court HC: Despite TDS mismatch/non-deposit, deductee allowed TDS credit based on Form 16A

Oct 09, 2014

In Favour of : Assessee
Citation Number : TS-627-HC-2014(GUJ)

Income tax Appellate Tribunal ITAT: Making suo-moto enquiries and calling for ‘new’ records impermissible u/s 263 

Oct 09, 2014

In Favour of : Assessee
Citation Number : TS-626-ITAT-2014(Bang)

High Court HC:Grants Sec 80HHC deduction on 'interest income' having ‘direct nexus’ with business 

Oct 08, 2014

In Favour of : Assessee
Citation Number : TS-623-HC-2014(BOM)

Income tax Appellate Tribunal ITAT:Appeal non-disposal not attributable to assessee, stay beyond 365 days granted 

Oct 10, 2014

In Favour of : Assessee
Citation Number : TS-630-ITAT-2014(Mum)

Weekly Digest #24 27 Sep to 01 Oct 2014 3 Rulings

High Court HC:Upholds Sec 80P(2)(a)(ii) deduction to co-operative scoiety being recognized 'cottage industry' 

Oct 01, 2014

In Favour of : Assessee
Citation Number : TS-615-HC-2014(MAD)

High Court HC:Allows product development expense in telecom sector as revenue deduction, follows Empire Jute 

Oct 01, 2014

In Favour of : Assessee
Citation Number : TS-614-HC-2014(KAR)

Income tax Appellate Tribunal ITAT:Despite Sec 11 exemption denial advance cannot be taxed as 'income' absent accrual 

Sep 30, 2014

In Favour of : Assessee
Citation Number : TS-612-ITAT-2014(COCH)

Weekly Digest #23 20 Sep to 26 Sep 2014 6 Rulings

Income tax Appellate Tribunal ITAT:Disregards JV, holds JV expenses as ‘interest’ liable to Sec 194A TDS 

Sep 25, 2014

In Favour of : Both, Partially
Citation Number : TS-595-ITAT-2014(JPR)

High Court HC:Upholds Sec 80HHC deduction from “total income”, before unabsorbed losses and depreciation effected 

Sep 26, 2014

In Favour of : Assessee
Citation Number : TS-602-HC-2014(AP)

Income tax Appellate Tribunal ITAT:Allows Sec 80IB(10) deduction, despite not filing Form 10CCB alongwith ROI within due-date 

Sep 26, 2014

In Favour of : Assessee
Citation Number : TS-607-ITAT-2014(PUN)

Income tax Appellate Tribunal ITAT:Holds assessee liable to Sec 195 TDS on NR seller’s proportionate sale consideration 

Sep 26, 2014

In Favour of : Both, Partially
Citation Number : TS-605-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT:Revenue not prejudiced absent 'real income' accrual before BOT project completion 

Sep 26, 2014

In Favour of : Assessee
Citation Number : TS-604-ITAT-2014(Ahd)

Income tax Appellate Tribunal ITAT:Frowns on DIT(E) for not following jurisdictional HC judgment, awards Rs.2000 cost 

Sep 26, 2014

In Favour of : Assessee
Citation Number : TS-603-ITAT-2014(HYD)

Weekly Digest #22 13 Sep to 19 Sep 2014 5 Rulings

High Court HC:TDS can’t be demanded from deductee for deductor’s failure to issue certificate 

Sep 15, 2014

In Favour of : Assessee
Citation Number : TS-571-HC-2014(MAD)

Income tax Appellate Tribunal ITAT:Deletes market survey fees disallowance u/s 40(a)(ia) absent FTS article under India-UAE DTAA 

Sep 19, 2014

In Favour of : Both, Partially
Citation Number : TS-719-ITAT-2013(Bang)

Income tax Appellate Tribunal ITAT: 12 months time limitation inapplicable to ESOPs, being a ‘right’ not ‘share’

Sep 19, 2014

In Favour of : Revenue
Citation Number : TS-585-ITAT-2014(DEL)

Income tax Appellate Tribunal ITAT:Investment in sister concern, not incidental to main object, taxable as IOS 

Sep 19, 2014

In Favour of : Revenue
Citation Number : TS-584-ITAT-2014(Mum)

High Court HC:Condemns Revenue’s attempt to unsettle settled matters, states this tendency should be curbed 

Sep 17, 2014

In Favour of : Assessee
Citation Number : TS-580-HC-2014(BOM)

Weekly Digest #21 06 Sep to 12 Sep 2014 4 Rulings

Income tax Appellate Tribunal ITAT:Retro-amendment can't impose TDS liability for past transaction, follows Kerala Vision 

Sep 12, 2014

In Favour of : Assessee
Citation Number : TS-566-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Upholds electricity / internet bill reliance to prove construction completion for Sec 54F exemption 

Sep 12, 2014

In Favour of : None/NA
Citation Number : TS-567-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT:AO's failure to charge/withdraw Sec 220/Sec 244 interests, not 'mistakes' to trigger Sec 154 

Sep 12, 2014

In Favour of : Assessee
Citation Number : TS-569-ITAT-2014(COCH)

Income tax Appellate Tribunal ITAT:No salary-TDS default on meal vouchers absent evidence of misuse, follows Cadila ruling 

Sep 12, 2014

In Favour of : Assessee
Citation Number : TS-716-ITAT-2013(Bang)

Weekly Digest #20 30 Aug to 05 Sep 2014 9 Rulings

High Court HC:Pursuing earlier appeals on same issue ‘sufficient cause’ for condoning appeal delay 

Sep 02, 2014

In Favour of : Assessee
Citation Number : TS-540-HC-2014(MAD)

Income tax Appellate Tribunal ITAT:Allows UAE resident to claim 1993 DTAA benefit without TRC, follows Meera Bhatia 

Sep 05, 2014

In Favour of : Assessee
Citation Number : TS-553-ITAT-2014(PUN)

High Court HC:Remands matter on Sec 194C applicability; Wage payments not contractual payments, absent evidence 

Sep 05, 2014

In Favour of : None/NA
Citation Number : TS-549-HC-2014(KAR)

High Court HC:Enhanced compensation on tenancy rights surrender taxable in receipt year; BC Srinivasa Setty inapplicable 

Sep 02, 2014

In Favour of : Revenue
Citation Number : TS-539-HC-2014(DEL)

High Court HC:Redemption fine paid to Customs Authorities allowable u/s 37 absent indulgence in offence 

Sep 05, 2014

In Favour of : Assessee
Citation Number : TS-551-HC-2014(DEL)

High Court HC:Allows Ajay Piramal Foundation to withdraw revised return following wrong legal advice, Goetze ruling inapplicable 

Aug 29, 2014

In Favour of : Assessee
Citation Number : TS-535-HC-2014(DEL)

Income tax Appellate Tribunal ITAT:Deletes disallowance u/s 40(a)(ia) on Royalty as payment made before retrospective amendment to Sec 9 

Sep 05, 2014

In Favour of : Assessee
Citation Number : TS-555-ITAT-2014(Bang)

Income tax Appellate Tribunal ITAT:Reprimands Revenue for filing ‘frivolous appeal’, awards token cost of Rs 1000 

Sep 05, 2014

In Favour of : Assessee
Citation Number : TS-552-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Grants Sec 12A registration to Kurni community society; Interprets ‘backward classes’ as singular 

Sep 05, 2014

In Favour of : Assessee
Citation Number : TS-550-ITAT-2014(HYD)

Weekly Digest #19 23 Aug to 29 Aug 2014 6 Rulings

High Court HC:Common management, accounts no bar for claiming Sec 10A benefit on unit expansion 

Aug 25, 2014

In Favour of : Assessee
Citation Number : TS-521-HC-2014(KAR)

High Court HC:Appreciates Revenue’s claim, but holds 6-year technology license fee as revenue expenditure

Aug 29, 2014

In Favour of : Assessee
Citation Number : TS-533-HC-2014(CAL)

High Court HC:Unabsorbed investment allowance to be set-off against business profits for Sec 80HHC computation 

Aug 29, 2014

In Favour of : Revenue
Citation Number : TS-534-HC-2014(BOM)

Income tax Appellate Tribunal ITAT:Allows Sec 37 deduction for amount mandatorily transferred to reserve on Government direction 

Aug 29, 2014

In Favour of : Assessee
Citation Number : TS-532-ITAT-2014(Ahd)

High Court HC:Brokerage for mobilizing public deposits, revenue expenditure, absent capital base increase 

Aug 29, 2014

In Favour of : Assessee
Citation Number : TS-531-HC-2014(KAR)

High Court HC:Refuses to restrict enquiry scope during reassessment proceedings, holds Sec 142(1) notice valid 

Aug 29, 2014

In Favour of : None/NA
Citation Number : TS-530-HC-2014(BOM)

Weekly Digest #18 15 Aug to 22 Aug 2014 4 Rulings

Supreme Court SC:Dismisses FIITJEE’s SLP; Relevant material existed to issue warrant u/s 132, observed HC 

Aug 22, 2014

In Favour of : Revenue
Citation Number : TS-516-SC-2014

High Court HC:Allows technical know-how payment by ‘existing’ company as revenue expense 

Aug 22, 2014

In Favour of : Assessee
Citation Number : TS-517-HC-2014(MAD)

High Court HC:Eligible profits u/s 80IA(5) be computed after set-off of notionally brought forward losses 

Aug 22, 2014

In Favour of : Revenue
Citation Number : TS-515-HC-2014(KAR)

Income tax Appellate Tribunal ITAT: AO’s non-application of mind warrants exercise of revisional jurisdiction u/s 263. 

Aug 22, 2014

In Favour of : Revenue
Citation Number : TS-514-ITAT-2014(Kol)

Weekly Digest #17 09 Aug to 14 Aug 2014 4 Rulings

Income tax Appellate Tribunal ITAT:Allows deduction; Export commission not subject to TDS under CBDT Circular 786/2000 

Aug 14, 2014

In Favour of : Assessee
Citation Number : TS-496-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:Confirms Sec 234D interest pre-2003 despite favourable Tribunal order 

Aug 14, 2014

In Favour of : Revenue
Citation Number : TS-497-ITAT-2014(Mum)

High Court HC:Grants interest u/s 214 on excess advance tax; Follows Modi Industries 

Aug 14, 2014

In Favour of : Assessee
Citation Number : TS-499-HC-2014(ALL)

Income tax Appellate Tribunal ITAT:Air-ticket discount to customers not 'commission' u/s 194H; Follows Qatar Airways ruling 

Aug 14, 2014

In Favour of : Assessee
Citation Number : TS-498-ITAT-2014(Mum)

Weekly Digest #16 02 Aug to 08 Aug 2014 4 Rulings

Income tax Appellate Tribunal ITAT:Deletes Sec 40(a)(i) disallowance; Translation fees not subject to TDS, not being FTS 

Aug 07, 2014

In Favour of : Assessee
Citation Number : TS-481-ITAT-2014(CHNY)

High Court HC:Upholds payment under consent decree as ‘business income’, not capital gains

Aug 07, 2014

In Favour of : Revenue
Citation Number : TS-480-HC-2014(BOM)

Income tax Appellate Tribunal ITAT:Foreign branch income taxable in India, follows Essar Oil on ‘maybe taxed’ interpretation 

Aug 07, 2014

In Favour of : Revenue
Citation Number : TS-479-ITAT-2014(Mum)

Income tax Appellate Tribunal ITAT:No FBT on bank's pension fund contribution absent earmarking to individual employees 

Aug 08, 2014

In Favour of : Assessee
Citation Number : TS-483-ITAT-2014(HYD)