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ITAT - Making false claim made towards interest deduction while computing income from house property is not a fit case for levy of 300% penalty, but to levy minimum penalty i.e. 100% u/s 271(1)(c).
Shri Sujata Hemlal Bakhre Versus ITO WD 8 (3) (1), Mumbai
(2017) TaxCorp(LJ) 12095 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54428&Category=ITAT&CategoryType=Zip
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HC - When executives are employed and the infrastructure is ready to commence business, it can be said that the business has been set up.
The Commissioner of Income Tax-3, Mumbai Versus M/s. Axis Pvt. Equity Ltd.
(2017) TaxCorp(LJ) 12093 (HC-BOMBAY) · http://taxcorp.in/FileOpenDT.aspx?ID=68391&Category=Judgment&CategoryType=Zip
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Transfer Pricing - Meaning of “Associated Enterprises”: The fact that an enterprise can “influence prices and other conditions relating to sale” does not make it an “associated enterprise” of the assessee if it does not participate in the (a) capital, (b) management, or (c) control of the assessee and thus does not fulfil the basic rule u/s 92A(1). S. 92A(2)(i) has to be read with s. 92(A)(1). Even if the conditions of s. 92A(2)(i) are fulfilled, these enterprise cannot be treated as ‘associated enterprise’ if the requirements of s. 92A(1) are not fulfilled
Orchid Pharma Limited vs. DCIT
(2017) TaxCorp(LJ) 12090 (ITAT-CHENNAI) · Section 92A(1)
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S. 68: Even if the premium at which the shares are issued defies commercial prudence, the receipt cannot be assessed as "unexplained credit" if the identity of the payer, genuineness of the transaction and capacity of the subscriber are not disputed. Interest earned on short-term fixed deposits is assessable as "profits and gains of business" and not as "income from other sources"
CIT vs. Green Infra Limited
(2017) TaxCorp(LJ) 12089 (HC-BOMBAY) · Section 68
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S. 69C Bogus Purchases: Purchases cannot be treated as bogus merely on the basis of the statements and affidavits filed by the alleged vendors before the sales-tax department. The said statements cannot be relied upon without cross-examination of the parties. The fact that the parties did not respond to the s. 133(6) notices is not relevant if the assessee filed copies of purchase invoices, extracts of stock ledger showing entry/exit of materials, copies of bank statements to evidence that payments for these purchases were made through normal banking channels, etc to establish genuineness of the aforesaid purchases
ACIT vs. Mahesh K. Shah
(2017) TaxCorp(LJ) 12088 (ITAT-MUMBAI) · Section 69C
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Bogus purchases: A statement by the alleged vendor that the transactions with the assessee are only accommodation entries and that there are no sales or purchases cannot be relied upon by the AO unless the assessee is given the opportunity to cross-examine the vendor
CIT vs. Ashish International
(2017) TaxCorp(LJ) 12087 (HC-BOMBAY)
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S. 271(1)(c): Failure by the AO to specify in the s. 274 notice whether the penalty is being initiated for 'furnishing of inaccurate particulars of income' or for 'concealment of income' is fatal. It reflects non-application of mind and renders the levy of penalty invalid (Manjunatha Cotton 359 ITR 565 (Kar) followed)
CIT vs. Samson Perinchery
(2017) TaxCorp(LJ) 12079 (HC-BOMBAY) · Section 271(1)(c)
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S. 28/29: There is a distiction between "setting up of business" and "commencement of business". All expenditure after "setting up" is deductible business expenditure even if the business has not commenced. A business is "set up" when steps are taken to recruit employees and take premises etc
CIT vs. Axis Pvt. Equity Ltd
(2017) TaxCorp(LJ) 12078 (HC-BOMBAY) · Sections 28, 29
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S. 234C: Though levy of interest for deferment of advance-tax is mandatory and cause & justification for the deferment are irrelevant, the same is not leviable if the income was not predictable and the assessee could not have anticipated its receipt e.g. the receipt of a gift
Kumari Kumar Advani vs. ACIT
(2017) TaxCorp(LJ) 12077 (ITAT-MUMBAI) · Section 234C
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ITAT - Assessee had incurred expenditure of repair and renovations only to preserve and maintain the existing asset and that the expenditure was not of a nature which brought into being a new asset or created a new advantage of an enduring nature. The expenditure is revenue in nature.
M/s Sarang and Associates Versus Dy. Commissioner of Income Tax, Central Circle-36, Mumbai
(2017) TaxCorp(LJ) 12041 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54343&Category=ITAT&CategoryType=Zip
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ITAT - In case the nature of business, which indicates that it cannot be done solely by crossed cheque or bank draft and the payment is proven from bills and cash memos, exceptional circumstances could be inferred u/s.40A(3).
M/s Raj Wines, C/o P.N. Subramanian & Co. Versus ITO, Ward-4 (3), Thane
(2017) TaxCorp(LJ) 12040 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54346&Category=ITAT&CategoryType=Zip
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ITAT - To hold the transactions as mere accommodation entries and not real purchases is quite different from saying that the sources of expenditure for the purchases have not been explained in the context of Sec. 69C. No addition.
ITO, Ward-19 (2) (2), Mumbai Versus Shri Karsan Nandu and Vice-Versa
(2017) TaxCorp(LJ) 12039 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54337&Category=ITAT&CategoryType=Zip
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HC - Assessment u/s 144 without issuing notice was patently illegal.
M/s Wishwa Mittar Bajaj & Sons Versus Income Tax Officer -IV (4) Lucknow
(2017) TaxCorp(LJ) 12038 (HC-ALLAHABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=68360&Category=Judgment&CategoryType=Zip
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S. 68 Bogus capital gains: A transaction cannot be treated as fraudulent if the assessee has furnished documentary proof and proved the identity of the purchasers and no discrepancy is found. The AO has to exercise his powers u/s 131 & 133(6) to verify the genuineness of the claim and cannot proceed on surmises
Pr. CIT. vs. Jatin Investment Pvt. Ltd.
(2017) TaxCorp(LJ) 12037 (HC-DELHI) · Section. 68
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Permanent Establishment: Entire law explained on whether the deputation of personnel by a foreign company to assist the Indian subsidiaries in negotiations, marketing etc leads to a “fixed place PE” or a “Dependant Agent PE” under Article 5 of the DTAA and if so, the manner in which the profits of the foreign company are attributable to operations in India
GE Energy Parts Inc vs. ADIT
(2017) TaxCorp(LJ) 12036 (ITAT-DELHI)
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HC - Profits earned by international airlines from providing technical services to other airlines is not taxable in India under DTAA.
Lufthansa German Airlines Vs. Director Of Income Tax
(2017) TaxCorp(LJ) 12035 (HC-DELHI)
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ITAT - The mere fact that written submissions were filed by the assessee, it cannot be so construed that the right to be heard was given up. Ex-parte assessment u/s 147 without rejection of objections raised by the assessee not valid.
Bhupinder Singh Versus ITO, Ward-58 (2) (Old Ward-36 (1), New Delhi
(2017) TaxCorp(LJ) 12034 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=54328&Category=ITAT&CategoryType=Zip
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ITAT - AO levied the maximum penalty prescribed equal to 100% without recording any satisfaction u/s 221(1), CIT(A) was right in restricting penalty to 10% of the total tax payable.
DCIT-17 (2), Mumbai Versus Prashant R. Samdani and Vice-Versa
(2017) TaxCorp(LJ) 12033 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54329&Category=ITAT&CategoryType=Zip
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ITAT - Levy of penalty u/s 271(1)(c) on disallowance of expenses of foreign Travel and inter city travel not justified as revenue has not rejected the explanation and merely levied the penalty on the basis that the expenses are for non-business purposes.
Subhakam Stocks and Shares P. Ltd. Versus Income Tax Officer Ward 4 (2) (3), Mumbai
(2017) TaxCorp(LJ) 12032 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54331&Category=ITAT&CategoryType=Zip
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ITAT - Business loss cannot be treated at par with the expenses / allowances and such business loss can be set off against any type of income (u/s 69) as section 71 do not debar from setting off such losses.
ACIT Central Circle-13, Mumbai Versus M/s. Rahil Agencies
(2017) TaxCorp(LJ) 12031 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54333&Category=ITAT&CategoryType=Zip
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