HC: Investment in joint name with spouse eligible for full exemption u/s 54F

Exemption u/s 54F from capital gains not to be restricted to share in property purchased in joint name since assessee was real owner; Sec 54F does not specify purchase of

Nov 22,2011

HC: Delhi HC confirms Godrej & Boyce, upholds Sec 14A disallowance on interest expense

Rule 8D applicable prospectively; Delhi HC follows Bombay HC ruling in Godrej & Boyce; Interest paid on borrowings used for acquiring strategic investments subject to Sec 14A disallowance even if earning dividend income

Nov 18,2011

HC: Sec 80-IB deduction available even if contract workers hired

For availing deduction u/s 80IB(2)(iv), immaterial whether worker is employed directly or through agency; Mere payment of job work charges not to mean that manufacturing was carried out at job worker’s

Nov 18,2011

HC: Sec 10B deduction available for unexpired period post amendment

10 year tax holiday u/s 10B under 1999 amendment available to existing STP units for unexpired period;  Benefit cannot be denied even if original 5 years tax holiday period expired

Nov 17,2011

HC: 'Tangible Material' obtained during later year's assessment sufficient for Sec 147 re-opening  

Reopening of assessment u/s 147 valid despite lapse of 4 years time limit; Findings during subsequent year's assessment constituted sufficient ‘tangible material’ for reassessment

Nov 17,2011

HC: Export commission to non-resident agent not taxable

Commission paid to foreign parent company for export contracts and realisation of exports neither 'accrues or arises' nor 'deemed to accrue or arise' in India; TDS not applicable since commission

Nov 15,2011

HC: Constitutional validity of Rule 8D r.w.s 14A upheld; Rule 8D to be applied prospectively

Computation of disallowance of expenses incurred to earn exempt income, under Rule 8D r.w.s 14A not arbitrary; Rule to be applied prospectively w.e.f AY 2008-09

Nov 14,2011

HC: Income from growing hybrid seeds not agricultural income

Income from growing hybrid seeds on contract manufacturing basis taxable as ‘Business income’ and not exempt as ‘Agricultural Income’

Nov 10,2011

HC: Service of notice after prescribed time limit not binding on assessee

Service of notice after prescribed time limit not binding on assessee; Distinction between words 'issued' and 'served'

Nov 09,2011

HC: Partner's remuneration not deductible when partnership deed failed to provide manner of quantification

Mere specification of partner's remuneration upto limits provided under Income-tax Act not sufficient to claim deduction; Sec 40(b) disallowance is attracted in the absence of specific mention of ‘quantum of remuneration’

Nov 08,2011