Direct tax Weekly Digest

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: 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)

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: 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: 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: 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)