Direct tax Weekly Digest

Weekly Digest #27 04 Jul to 10 Jul 2015 3 Rulings

High Court HC: Denies adjusting demand against refund, when stay-order u/s 220 in force

Jul 10, 2015

In Favour of : Assessee
Citation Number : TS-385-HC-2015(BOM)

Income tax Appellate Tribunal ITAT:No TDS u/s 194H on discount to Sim-card distributors; Follows Bharti Airtel 

Jul 10, 2015

In Favour of : Assessee
Citation Number : TS-384-ITAT-2015(GAU)

High Court HC:Non-submission of reasons ‘sought only at later stage’ doesn’t make re-assessment ‘invalid’ 

Jul 10, 2015

In Favour of : Revenue
Citation Number : TS-382-HC-2015(KAR)

Weekly Digest #26 27 Jun to 03 Jul 2015 7 Rulings

Income tax Appellate Tribunal ITAT:Upholds reassessment as AO omitted considering correct depreciation claim 

Jul 03, 2015

In Favour of : Assessee
Citation Number : TS-366-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Compounding fees paid to Municipal Corporation triggers disallowance under expln to sec 37(1)

Jul 02, 2015

In Favour of : Both, Partially
Citation Number : TS-365-ITAT-2015(PUN)

Income tax Appellate Tribunal ITAT:Grants stay of over 27 crores demand to Vodafone for non - deduction of TDS u/s 194H 

Jul 03, 2015

In Favour of : None/NA
Citation Number : TS-368-ITAT-2015(PUN)

Income tax Appellate Tribunal ITAT:Having religious and charitable objects simultaneously no bar for Sec 12A registration 

Jul 03, 2015

In Favour of : None/NA
Citation Number : TS-871-ITAT-2014(HYD)

Income tax Appellate Tribunal ITAT:Investment in AOP excluded from the scope of Sec 14A disallowance 

Jul 03, 2015

In Favour of : None/NA
Citation Number : TS-367-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Demurrage payments to non-resident purchaser, not subject to TDS u/s195 

Jul 03, 2015

In Favour of : None/NA
Citation Number : TS-369-ITAT-2015(PAN)

Income tax Appellate Tribunal ITAT: ITAT: SCN u/s 251 mandatory when CIT(A) enhances income by changing income-heads

Jul 03, 2015

In Favour of : Assessee
Citation Number : TS-370-ITAT-2015(Bang)

Weekly Digest #25 20 Jun to 26 Jun 2015 4 Rulings

Income tax Appellate Tribunal ITAT: Interest payment for delayed TDS-deposit no solace; Upholds penalty levy u/s 271C 

Jun 26, 2015

In Favour of : Revenue
Citation Number : TS-350-ITAT-2015(COCH)

High Court HC: HC: Allows deduction to ONGC for royalty payments, Explanation to Sec.37 not triggered

Jun 26, 2015

In Favour of : Assessee
Citation Number : TS-351-HC-2015(UTT)

Income tax Appellate Tribunal ITAT:Deletes unexplained cash credits addition u/s 68 once source of ‘source of credit’ proved 

Jun 26, 2015

In Favour of : Assessee
Citation Number : TS-352-ITAT-2015(CHNY)

Income tax Appellate Tribunal ITAT: Allows assessee’s depreciation claim once asset ‘ready-to-use’, ‘inauguration-date’ irrelevant 

Jun 26, 2015

In Favour of : Assessee
Citation Number : TS-353-ITAT-2015(HYD)

Weekly Digest #24 13 Jun to 19 Jun 2015 5 Rulings

Income tax Appellate Tribunal ITAT: Allows Sec 11 exemption; Rejects Revenue’s plea of diagnostic service not medical relief 

Jun 19, 2015

In Favour of : Assessee
Citation Number : TS-337-ITAT-2015(CHNY)

Income tax Appellate Tribunal ITAT:Allows loss set-off for horse-breeding activity; Sec 74A not applicable 

Jun 19, 2015

In Favour of : Assessee
Citation Number : TS-339-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Apportions depreciation based on utilization of asset; Rejects allocation based on turnover 

Jun 19, 2015

In Favour of : Both, Partially
Citation Number : TS-340-ITAT-2015(PUN)

Income tax Appellate Tribunal ITAT: Denies immediate early-hearing prayer owing to 60 days moratorium for appeal disposal 

Jun 19, 2015

In Favour of : Revenue
Citation Number : TS-338-ITAT-2015(PAN)

Income tax Appellate Tribunal ITAT: Sec 54F claim on loan conversion into sale-consideration debatable, deletes concealment penalty

Jun 19, 2015

In Favour of : Assessee
Citation Number : TS-341-ITAT-2015(Mum)

Weekly Digest #23 06 Jun to 12 Jun 2015 4 Rulings

Income tax Appellate Tribunal ITAT: ITAT: Software payments by software 'trader', not royalty; Sec 195 TDS not applicable 

Jun 12, 2015

In Favour of : Assessee
Citation Number : TS-327-ITAT-2015(HYD)

High Court HC:Expunges “adversial” remarks on Civil judge; Superior courts “Loco-parentis” of subordinate court 

Jun 12, 2015

In Favour of : Assessee
Citation Number : TS-869-HC-2014(ALL)

Income tax Appellate Tribunal ITAT:Allows assessee’s rectification application based on subsequent SC ruling 

Jun 12, 2015

In Favour of : Assessee
Citation Number : TS-328-ITAT-2015(Ahd)

Income tax Appellate Tribunal ITAT:Pending civil-suit, denies cognizance to sale-deed for assessing capital gains 

Jun 12, 2015

In Favour of : Assessee
Citation Number : TS-329-ITAT-2015(PUN)

Weekly Digest #22 30 May to 05 Jun 2015 4 Rulings

High Court HC:Upholds ITAT’s order allowing deduction for Dry-docking expenses to ONGC 

Jun 05, 2015

In Favour of : Assessee
Citation Number : TS-312-HC-2015(UTT)

High Court HC:Upholds ITAT's order; Search/requisition mandatory for issuing Sec 158BC notice 

Jun 05, 2015

In Favour of : Assessee
Citation Number : TS-313-HC-2015(ALL)

Supreme Court SC:Sets-aside HC order quashing re-assessment; Relies on SC ruling in Rajesh Jhaveri 

Jun 05, 2015

In Favour of : Both, Partially
Citation Number : TS-314-SC-2015

High Court HC:Extends stay beyond 365 days under ‘writ’ jurisdiction following mandate laid by Maruti Suzuki 

Jun 05, 2015

In Favour of : Assessee
Citation Number : TS-315-HC-2015(DEL)

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)