Direct tax Weekly Digest

Weekly Digest #15 08 Apr to 15 Apr 2016 2 Rulings

Income tax Appellate Tribunal ITAT:Allows assessee-bank's 60 depreciation claim; ATM machines constitutes computers

Apr 15, 2016

In Favour of : Assessee
Citation Number : TS-205-ITAT-2016(Kol)

Income tax Appellate Tribunal ITAT:Confirmation of demand u/s201 not a sole criteria for levying penalty u/s271C

Apr 15, 2016

In Favour of : Assessee
Citation Number : TS-206-ITAT-2016(Mum)

Weekly Digest #14 02 Apr to 07 Apr 2016 3 Rulings

High Court HC:Allows 80P deduction to primary agricultural credit society” registered under state law

Apr 07, 2016

In Favour of : Assessee
Citation Number : TS-183-HC-2016(KER)

Income tax Appellate Tribunal ITAT:Unabsorbed depreciation not hit by Sec 79; Allows set-off post shareholding change

Apr 05, 2016

In Favour of : Assessee
Citation Number : TS-175-ITAT-2016(Bang)

High Court HC:Payment of damages for land-encroachment by assessee-lessee admissible u/s 37(1)

Apr 06, 2016

In Favour of : Assessee
Citation Number : TS-181-HC-2016(CAL)

Weekly Digest #13 26 Mar to 01 Apr 2016 4 Rulings

High Court HC:Dismisses Revenue's appeal applying CBDT-circular specifying tax-effect, directs expeditious identification of 'pending' non-prosecutable Departmental-appeals

Mar 29, 2016

In Favour of : Assessee
Citation Number : TS-161-HC-2016(KER)

High Court HC:Settlement Commission cannot invoke Sec 154 to reopen concluded proceedings for levying Sec 234B interest

Apr 01, 2016

In Favour of : Assessee
Citation Number : TS-169-HC-2016(CAL)

High Court HC:Inability to assess AOP no basis to tax assessee-member; Deletes capital-gains addition

Apr 01, 2016

In Favour of : Assessee
Citation Number : TS-170-HC-2016(KAR)

High Court HC:Directs expeditious identification of 'pending' non-prosecutable Departmental-appeals; Applies CBDT-circular specifying tax-effect

Apr 01, 2016

In Favour of : Assessee
Citation Number : TS-171-HC-2016(KER)

Weekly Digest #12 19 Mar to 25 Mar 2016 3 Rulings

Income tax Appellate Tribunal ITAT:Stays 100 demand as an interim measure; Directs outstanding-demand adjustment against refund /TDS

Mar 24, 2016

In Favour of : Assessee
Citation Number : TS-155-ITAT-2016(Mum)

Income tax Appellate Tribunal ITAT:No income accrual due to service-recipient's precarious financial condition; Deletes income addition

Mar 24, 2016

In Favour of : Assessee
Citation Number : TS-46-ITAT-2015(Mum)

Income tax Appellate Tribunal ITAT:Cessation not equivalent to retrenchment; Denies exemption u/s 10(10B)

Mar 24, 2016

In Favour of : Revenue
Citation Number : TS-156-ITAT-2016(JPR)

Weekly Digest #11 15 Mar to 18 Mar 2016 4 Rulings

Income tax Appellate Tribunal ITAT:Sale-deed execution date, not consideration-receipt date, relevant for making Sec 54EC capital-gains investment

Mar 18, 2016

In Favour of : Revenue
Citation Number : TS-136-ITAT-2016(Bang)

Supreme Court SC:Dismisses Shibu Soren's SLP, HC had struck down ITAT order quashing block assessment

Mar 18, 2016

In Favour of : Revenue
Citation Number : TS-138-SC-2016

Income tax Appellate Tribunal ITAT: Consideration of providing engineering/designing work, not FIS under India-US DTAA

Mar 18, 2016

In Favour of : Assessee
Citation Number : TS-139-ITAT-2016(Mum)

Income tax Appellate Tribunal ITAT:Discounting charges received from Indian AE, not assessable as 'interest'

Mar 18, 2016

In Favour of : Assessee
Citation Number : TS-137-ITAT-2016(DEL)

Weekly Digest #10 05 Mar to 14 Mar 2016 3 Rulings

Income tax Appellate Tribunal ITAT:Rejects developer's deduction claim u/s 80(IB)(10); Accords strict interpretation to the term one acre”

Mar 11, 2016

In Favour of : Revenue
Citation Number : TS-119-ITAT-2016(PUN)

Income tax Appellate Tribunal ITAT:Sale of machine alongwith operating-software, not royalty under Indo-Israel DTAA

Mar 11, 2016

In Favour of : Assessee
Citation Number : TS-122-ITAT-2016(Mum)

Supreme Court SC:SC modifies HC order with respect to de-novo adjudication on Sec 54F exemption claim

Mar 11, 2016

In Favour of : Assessee
Citation Number : TS-45-SC-2015

Weekly Digest #9 27 Feb to 04 Mar 2016 3 Rulings

Supreme Court SC:Excludes 'scrap-sale' from 'total-turnover' while computing Sec 80HHC deduction; Follows Punjab Stainless (SC)

Mar 04, 2016

In Favour of : Assessee
Citation Number : TS-109-SC-2016

Income tax Appellate Tribunal ITAT: ITAT:Deletes Sec 14A disallowance, accepts sufficient own funds” plea

Mar 04, 2016

In Favour of : Assessee
Citation Number : TS-108-ITAT-2016(CHNY)

Income tax Appellate Tribunal ITAT:Evaluating entitlement for refund u/s240, not mistake apparent from record; Quashes rectification u/s 154

Mar 04, 2016

In Favour of : Assessee
Citation Number : TS-44-ITAT-2015(Mum)

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