ITAT: Right to receive consideration under land development agreement attracts capital gains

Development agreement giving right to receive a fixed share in the built-up area and putting the developer in possession of land constitutes ‘transfer’ u/s 2(47); Capital gains taxable in the

Apr 18,2012

ITAT: Follows Cal HC decision over ITAT SB ruling; Deletes Sec 40(a)(ia) disallowance 

Amendment to Sec 40(a)(ia) extending time limit for deposit of TDS, retrospective in nature; Pre 2010, Sec 40(a)(ia) disallowance not attracted if TDS paid before the due date of filling

Apr 17,2012

ITAT: Conducting distance education for University on fee sharing basis not a charitable activity 

Conducting distance education and online program of University on fee sharing basis not a ‘charitable purpose’ u/s 2(15) of the Act; Education activities not carried out as a charitable endeavor

Apr 17,2012

ITAT: Block assessment order u/s 153C without JCIT's approval invalid 

Block assessment orders passed u/s 153C without obtaining prior consent of JCIT u/s 153D null and void; Requirement of pre-approval not restricted only to block assessment of person searched but

Apr 16,2012

ITAT: Beneficial tax rate under DTAA vs Act applies separately to each royalty agreement 

Each royalty agreement, dated before and after June 2005, constitutes separate source of income; Tax rates prescribed u/s 115A, separately comparable with DTAA rate depending on agreement date; Beneficial provisions

Apr 16,2012

ITAT: Even single building qualifies as housing project, eligible for Sec 80IB benefit

Date of approval of building plan, and not date of approval of project, relevant for determining period of project completion u/s 80IB; Even single building satisfying conditions u/s 80IB qualifies

Apr 13,2012

ITAT: 'Usance Interest' paid for credit purchases made from non-residents, taxable u/s 9 

Interest paid for availing credit from non-resident suppliers falls within the definition of Interest u/s 2(28A); Non-resident taxable under Income-tax Act in respect of such usance interest; Reliance placed on

Apr 12,2012

ITAT: No Sec 40(a)(ia) disallowance on amounts ‘paid’ during year without TDS

Sec 40(a)(ia) disallowance not applicable to cases where relevant expenses are actually paid within the previous year, though without deducting tax at source; Disallowance applicable only to the amounts remaining

Apr 12,2012

ITAT: Loss claimed directly through revised return not allowed

Revised return reporting loss & carry forward of earlier year's loss not claimed in original return held invalid; To file revised return u/s 139(5), the omission or misstatement in original return must

Apr 11,2012

ITAT: Sec 14A disallowance attracted on net interest expense

Sec 14A disallowance on interest expense not attracted since interest income exceeded interest expense; Disallowance u/s 14A read with Rule 8D not to exceed actual expenditure incurred in relation to

Apr 11,2012