SC: Permits deviation in stock valuation; considers "levy price" over cost/ market value 

If facts permit, closing stock can be valued at a price other than cost or market value, though this is the accepted practice; Regards to be given to character of

Sep 27,2012

SC: "Silly mistake" or "Human error" not justifiable grounds to levy penalty 

No penalty on erroneous tax claim by PwC due to "human error"; Even assessee of high expertise and reputation can make "silly mistake"; AO also overlooked the mistake during original

Sep 26,2012

SC: Rejects 'theoretical exercise' of recomputing amortised income 

Assessee offered to tax interest from debentures as difference between purchase price and redemption price; Income offered on proportionate basis over the life of debentures; HC order taxing income in

Sep 14,2012

SC: NRI donors must show financial capacity to "gift" to discharge Sec 68 onus 

NRI donors assessed to tax in Singapore must show adequate funds in bank accounts and financial capacity to make gifts; Burden on the assessee u/s 68 as recipient to show

Sep 14,2012

SC: Applies 'substance over form' test, holds contingent deposits as income 

'Contingent deposits' collected from customers to safeguard against disputed sales tax liability constituted 'income'; Deposits were not kept in a separate interest bearing bank account but formed part of business

Sep 12,2012

SC: Allows tax holiday based on unit-wise profitability despite absence of separate books 

Assessee not statutorily obliged to maintain separate accounts for claiming deduction u/s 80HH and 80I; But, to end ongoing litigation, directs AO to examine unit-wise profitability working prepared by the

Sep 12,2012

SC: Lumpsum know-how expense should be amortised, Deduction can't be claimed at once 

Lumpsum expenditure for acquisition of know-how cannot be allowed u/s 37(1); Sec 37(1) has no application once Sec 35AB for amortisation of such expenditure comes into play; Know-how must be

Sep 11,2012

SC: Follows 5-judge ruling, Interest on tax payment default mandatory but waiver permissible

Levy of interest u/s 234A and 234B for default in tax payments mandatory in nature; AO need not 'specifically recite' initiation of penalty proceedings in assessment order; 5-Judge ruling in

Sep 11,2012

SC: Closing stock not source of profits; Excise duty thereon not income 

Valuation of closing stock important for determining trading results; Trading account should reflect only actual profit / loss; Excise duty on unsold goods not to form part of value of

Sep 11,2012

SC: Immunity from penalty upon search available despite late payment of taxes 

Immunity from penalty on income unearthed during search available once concealment admitted u/s 132(4), despite assessee's failure to pay tax on or before due date of filing return; Immunity available

Sep 11,2012