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Taxability of software license fees as royalty: Non-consideration of the verdict of the Tribunal in Solid Works Corporation (51 SOT 34) and misreading of the Delhi High Court's verdict in Ericsson AB constitutes a mistake apparent from the record u/s 254(2) and the orders have to be recalled
Reliance Communications Ltd vs. DDIT
(2016) TaxCorp(LJ) 11541 (ITAT-MUMBAI) · Section 254(2)
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S. 50C: If the difference between the sale consideration of the property shown by the assessee and the FMV determined by the DVO u/s 50C(2) is less than 10%, the AO is not justified in substituting the value determined by the DVO for the sale consideration disclosed by the assessee. Unregistered sale agreements prior to 01.10.2009 are not subject to s. 50C as per CBDT Circular No.5/10 dated 03.06.2010
Krishna Enterprises vs. ACIT
(2016) TaxCorp(LJ) 11540 (ITAT-MUMBAI) · Section 50C
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ITAT - Corpus donations received by the assessee-trust cannot be brought to tax despite the fact that the assessee-trust was not registered under section 12A/12AA.
Chandraprabhu Jain Swetamber Mandir Versus Assistant Commissioner of Income-Tax
(2016) TaxCorp(LJ) 11536 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=50899&Category=ITAT&CategoryType=Zip
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ITAT - Interest income and profit on sale of Mutual Funds would not form part of the computation of ‘book profits’ u/s 115JB.
M/s. Vadinar Power Company Ltd. Versus Additional CIT-5 (3), Mumbai
(2016) TaxCorp(LJ) 11535 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52210&Category=ITAT&CategoryType=Zip
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ITAT - Assessee resorted to create agreement for self-serving and the assessee arrange itself affairs to not to bring the reimbursements to tax. Levy of penalty confirmed u/s 271(1)(c).
Heera Panna CHS Ltd Versus Income Tax Officer– 16 (2) (1), Mumbai
(2016) TaxCorp(LJ) 11534 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52213&Category=ITAT&CategoryType=Zip
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ITAT - When the retiring partner agreed constructed area from the stock in trade of the firm, it did not relinquishing its interest in the immovable property, therefore in the absence of transfer, there is no capital gain.
Keshav and Company Versus ITO –Ward-22 (1) (4), Mumbai And Vice-Versa
(2016) TaxCorp(LJ) 11533 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52186&Category=ITAT&CategoryType=Zip
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ITAT - Income earned by the assessee-trust from providing right to use of a property owned by it cannot be construed to be an income from business activity. Exemption u/s 11 & 12 cannot be denied.
The Pathare Prabhu Charities Versus ITO (Exemptions) -11 (1), Mumbai
(2016) TaxCorp(LJ) 11522 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52206&Category=ITAT&CategoryType=Zip
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ITAT - Expenses incurred on up-gradation of software are revenue in nature.
Directi Internet Solutions Pvt. Ltd. Versus ACIT-5 (1), Mumbai and DCIT-5 (1), Mumbai
(2016) TaxCorp(LJ) 11521 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52207&Category=ITAT&CategoryType=Zip
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ITAT - Penalty u/s.271AAA not valid where cash amount surrendered during course of search for which due taxes were deposited with interest.
Shri Narpat Mehta Versus ACIT – CC-23, Mumbai
(2016) TaxCorp(LJ) 11515 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52156&Category=ITAT&CategoryType=Zip
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ITAT - Contribution made by a CA firm to the a branch of ICAI towards construction of administrative building is allowable u/s 37(1).
B. K. Khare And Company vs. ACIT
(2016) TaxCorp(LJ) 11507 (ITAT-MUMBAI) · Section. 37
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ITAT - No TDS u/s 195 in respect of Legal fees paid to non-resident Attorneys as the same does not constitute royalty as per India-UK DTAA nor FTS u/s. 9(1)((vi)/vii).
M/s. Kotak Mahindra Bank Limited Versus The Income Tax Officer (International Tax) TDS 3, Mumbai
(2016) TaxCorp(LJ) 11504 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52098&Category=ITAT&CategoryType=Zip
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ITAT - Penalty on income from bad debts recovered since the assessee has failed to do, in violation of the mandated provisions of law.
M/s. Forbes and Company Ltd. (formerly Forbes Gokak Ltd.) Versus DCIT, Circle 1 (1), Mumbai
(2016) TaxCorp(LJ) 11500 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52099&Category=ITAT&CategoryType=Zip
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ITAT - Even though assessee filed only a scanned copy of application in Form 35A, such defect is curable u/s 292B.
MSM Satellite (Singapore) Pte. Ltd. vs. JDIT (IT)
(2016) TaxCorp(LJ) 11499 (ITAT-MUMBAI)
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ITAT - Since no consideration accrues or is received by the assessee in case of demerger, no capital gains would arise in the hands of the assessee.
Aditya Birla Telecom Limited
(2016) TaxCorp(LJ) 11490 (ITAT-MUMBAI)
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ITAT - Mere finding of the purchase transactions as genuine would not take the same beyond the scope of Sec 40A(3) disallowance, but for the cases covered by Rule 6DD exceptions, Sec 40A(3) disallowance is mandatory in nature.
International Ships Stores Suppliers Vs. JCIT
(2016) TaxCorp(LJ) 11489 (ITAT-MUMBAI)
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ITAT - Assessee was prevented with reasonable cause in filing the returns and there is no deliberate attempt to file the returns belatedly. Thus, penalty levied u/s. 271F deleted.
M/s. Korpus Financial Services Pvt. Ltd. Versus The DCIT, C.C. -44, Mumbai
(2016) TaxCorp(LJ) 11485 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52069&Category=ITAT&CategoryType=Zip
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ITAT - The whole transaction for purchase and sale of land were accommodating in nature whereby interests of both the purchaser and seller in receiving or giving sale consideration through consideration amounts recorded in books of accounts were duly looked by the assessee wherein seller was accommodated with making of higher payments on record and buyers were accommodated to give lesser price on record for the same parcel of land. Sham and colorable devices and short term capital loss cannot be allowed
Ansh Merchandise Private Limited Versus DCIT – 5 (2), Mumbai, Addl. CIT – 5 (2), Mumbai
(2016) TaxCorp(LJ) 11482 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52057&Category=ITAT&CategoryType=Zip
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ITAT - Settlement of the disputes between the workers and their employers by the union leader. The amounts so received by the assessee cannot be treated as business or profession and should have been treated as exempt u/s 10(24).
M/s Mumbai Mazdoor Sabha Versus ACIT, Central-43, Mumbai and Vica-Versa
(2016) TaxCorp(LJ) 11481 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52048&Category=ITAT&CategoryType=Zip
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Bogus share capital: Interplay between s. 56(2)(viib) and s. 68 explained. Amendment to s. 68 casting onus on assessee and requiring it to explain source of source of share subscription is clarificatory and retrospective. Law in Lovely Exports 299 ITR 268, Sophia Finance 205 ITR 98 etc does not apply as they are prior to the Money Laundering Act 2002
Royal Rich Developers Pvt. Ltd. vs. DCIT
(2016) TaxCorp(LJ) 11473 (ITAT-MUMBAI) · Sections. 56(2)(viib), 68
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S. 41(1): Amounts shown as liabilities in the Balance Sheet cannot be deemed to be cases of "cessation of liability" only because the liabilities are outstanding for several years. The AO has to establish with evidence that there has been a cessation of liability with regard to the outstanding creditors
ITO. vs. Vikram A. Pradhan
(2016) TaxCorp(LJ) 11472 (ITAT-MUMBAI) · Section. 41(1)
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