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HC - Where an educational institution carries on the activity of education primarily for educating persons, the fact that it makes a surplus does not lead to the conclusion that it ceases to exist solely for educational purposes and becomes an institution for the purpose of making profit.
Commissioner of Income Tax, Alwar Versus Model Public School Society, Bhiwadi
(2017) TaxCorp(LJ) 11797 (HC-RAJASTHAN) · http://taxcorp.in/FileOpenDT.aspx?ID=68137&Category=Judgment&CategoryType=Zip
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HC - Merely because commission agent has not appeared, sales commission cannot be disallowed.
Harish Clays Versus ACIT, Circle, Jaipur & Anr.
(2017) TaxCorp(LJ) 11796 (HC-RAJASTHAN) · http://taxcorp.in/FileOpenDT.aspx?ID=68140&Category=Judgment&CategoryType=Zip
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ITAT - In cases where penalty proceedings have been initiated on a different footing and the CIT(A) reverses the same, there is change in opinion and basis for levy of penalty for concealment varies. There is no merit in levy of penalty under section 271(1)(c).
Shri Dilip D. Jain Versus ACIT, Central Circle-3, Nashik
(2017) TaxCorp(LJ) 11795 (ITAT-PUNE) · http://taxcorp.in/FileOpenDT.aspx?ID=53882&Category=ITAT&CategoryType=Zip
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ITAT - The wife of the assessee could have included the value of construction for mortgage purposes and this alone does not mean that construction was carried out by the wife of the assessee out of her own funds so as to deny the assessee the benefit of exemption u/s 54F.
Mahadev Balai Versus I.T.O., Ward 7 (2), Jaipur
(2017) TaxCorp(LJ) 11794 (ITAT-JAIPUR) · http://taxcorp.in/FileOpenDT.aspx?ID=53770&Category=ITAT&CategoryType=Zip
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HC - Since entire sum related to transfer of business rights was not covered by exclusionary proviso to Sec 28(va), Rs. 1 cr toward non-compete covenant, taxable u/s 28(va), out of total consideration of Rs. 6 cr. received a pharma co. upon entering into Brand Acquisition, Consultancy and Non-compete agreements.
CIT. Vs. Chemech Laboratories Ltd.
(2016) TaxCorp(LJ) 11793 (HC-MADRAS)
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HC - Though taxes paid/ loss return filed by deductee will absolve deductor from liability to deduct TDS, but it will not absolve him from ‘automatic’ interest liability u/s 201(1A) which should be calculated from the date on which tax should have been deducted to the date on which payee filed its return.
Punjab Infrastructure Dev. Board Vs. The Commissioner of Income Tax
(2016) TaxCorp(LJ) 11792 (HC-P&H) · Section. 201(1A)
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HC - Receipt of non-interest bearing refundable security deposit by assessee-club is capital in nature and not taxable.
Gulmohar Green Golf And Country Club Ltd. Vs. Principal Commissioner Of Income Tax2
(2016) TaxCorp(LJ) 11791 (HC-GUJARAT)
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ITAT - AO to give assessee an opportunity to explain while making ‘unexplained cash credit’ addition u/s 68.
Kalainagar TV P. Ltd. Vs. The DCIT
(2016) TaxCorp(LJ) 11790 (ITAT-CHENNAI)
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HC - Where AO of searched person had recorded that seized document was a copy of ledger of books of account of assessee-company evidencing certain payments, there was prima facie material to suggest that satisfaction under section 153C was recorded. Notice issued to assessee was valid.
Rajesh Sunderdas Vaswani v. Assistant Commissioner of Income-tax
(2016) TaxCorp(LJ) 11789 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=66533&Category=Judgment&CategoryType=Zip
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HC - Income was to be divided amongst individual beneficiaries and same was to be accumulated for a period of 19 years in their respective specific deferred family trust, therefore income did not accrue or arise to specific deferred family trusts of individual beneficiaries in relevant year.
Minor Baku Dineshbhai Amin Oral Spe. Def. Family Trust v. Commissioner of Income-tax
(2016) TaxCorp(LJ) 11788 (HC-GUJARAT) · http://taxcorp.in/FileOpenDT.aspx?ID=68110&Category=Judgment&CategoryType=Zip
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HC - Assessee was having large number of immovable properties and had capacity to pay interest by sale or realisation from property, attachment of portion of property could not be said to be genuine hardship. Three conditions requisite for waiver of interest u/s 220(2A) not fulfilled, interest not to be waived.
Mookambika Associates v. Assistant Commissioner of Income-tax, Central Circle 2 (1), Bengaluru
(2016) TaxCorp(LJ) 11787 (HC-KARNATAKA) · http://taxcorp.in/FileOpenDT.aspx?ID=68109&Category=Judgment&CategoryType=Zip
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HC - The assessee club had made investments in the mutual fund, it was not an investment with the member but with an outsider or a non-member, therefore, the principle of mutuality would not apply.
Commissioner of Income Tax, Ghaziabad Versus M/s Noida Golf Course Socieity
(2016) TaxCorp(LJ) 11786 (HC-ALLAHABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=68102&Category=Judgment&CategoryType=Zip
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ITAT - No additions towards VAT component of unaccounted sales as the net profit has been estimated on total turnover.
The ITO, Ward-1 (2), Visakhapatnam Versus S. Siva Rama Reddy and Vica-Versa
(2016) TaxCorp(LJ) 11785 (ITAT-VISAKHAPATNAM) · http://taxcorp.in/FileOpenDT.aspx?ID=53870&Category=ITAT&CategoryType=Zip
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ITAT - If the assessee disputes the value as per stamp valuation authority to be substituted in place of sales consideration for the purpose of calculation of capital gain , then the AO should refer the capital asset to valuation Officer to determine the full value of the consideration received or accruing as a result of transfer of capital asset u/s 50C(2) of the Act.
Dilip V Mohindra Versus Income Tax Officer 19 (1) (3), Mumbai
(2016) TaxCorp(LJ) 11784 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=53876&Category=ITAT&CategoryType=Zip
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S. 2(15)/11: Impact of the amendment to the definition of "charitable purpose" in s. 2(15) by insertion of a proviso by the Finance Act, 2008 and whether it supersedes the verdicts in Loka Shikshana Trust 101 ITR 234 (SC), Surat Art Silk Cloth Mfrs. Association 121 ITR 1 (SC) etc explained
The Tribune Trust vs. CIT
(2016) TaxCorp(LJ) 11783 (HC-P&H) · Section2(15), 11
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S. 14A/ Rule 8D disallowance applies also to dividends received from strategic investments in subsidiaries. S. 40A(2) disallowance is not applicable to co-operative societies. As per Circular No. 14 (XL-35) of 1955 dated 11.4.1955, the AO is obliged to assist the assessee and allow deduction even if not claimed
DCIT vs. The Saraswat Co-operative Bank Limited
(2016) TaxCorp(LJ) 11782 (ITAT-MUMBAI) · Section 14A
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S. 271(1)(c): The law in Dilip Shroff 291 ITR 519 (SC) & Kaushalya 216 ITR 660 (Bom) requires a show-cause notice u/s 274 to be issued after due application of mind. The non-specification in the notice as to whether penalty is proposed for concealment or for furnishing of inaccurate particulars reflects non-application of mind and renders it void. The fact that the assessee participated in the penalty proceedings does not save it u/s 292B/292BB
Dr. Sarita Milind Davare vs. ACIT
(2016) TaxCorp(LJ) 11781 (ITAT-MUMBAI) · Section 271(1)(c)
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S. 73 Explanation (speculation loss): If the assessee manages his transactions of sale and purchase of shares in cash segment and in future segment as a composite business, the transactions cannot be segregated to arrive at profit or loss in each segment separately. The provisions of the Income-tax Act cannot be interpreted to the disadvantage of the assessee and to segregate the transactions in cash and future segment which will be against the spirit of the taxation law
J. M. Financial Services Ltd vs. JCIT
(2016) TaxCorp(LJ) 11780 (ITAT-MUMBAI) · Section 73
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S. 69C Bogus Purchases: Though S. 133(6) notices were returned unserved and the assessee could not produce the alleged bogus hawala suppliers, the entire purchases cannot be added as undisclosed income. The addition has to be restricted by estimating Gross Profit ratio on the purchases from the alleged accommodation entry providers
Ashwin Purshotam Bajaj vs. ITO
(2016) TaxCorp(LJ) 11779 (ITAT-MUMBAI) · Section 69C
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ITAT - Under section 48, full consideration to determine capital gains does not refer to market value but only to consideration referred to in sale deed.
Assistant Commissioner of Income-tax, Circle-12, Ahmedabad v. Akash Association
(2017) TaxCorp(LJ) 11778 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=51523&Category=ITAT&CategoryType=Zip
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