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ITAT - Since creditor companies are legal entities and are already assessed to income tax and assessee also explained the source of the creditors, no additions u/s 68.
M/s. Jaico Textiles Pvt. Ltd. Versus Income Tax Officer 9 (2) (1), Mumbai
(2016) TaxCorp(LJ) 11449 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=51931&Category=ITAT&CategoryType=Zip
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ITAT - Call option fee paid by a company providing investment advisory for the purpose of earning origination fee is allowable expenditure.
DCIT. vs. Beekman Helix India Consulting India (P) Ltd.
(2016) TaxCorp(LJ) 11448 (ITAT-DELHI)
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ITAT - Assessee's activities are in the nature of data processing, customization of data, acting as the back office of the parent company and acting as support center to the parent company. Exemption u/s 10A allowed.
DCIT, Circle-6 (1), New Delhi Versus M/s. McKinsey Knowledge Centre India Pvt. Ltd.,
(2016) TaxCorp(LJ) 11447 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51922&Category=ITAT&CategoryType=Zip
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ITAT - Mere payment of commission through account payee cheque after deduction of TDS does not absolve the assessee from discharging its burden with regard to proving business purpose of the payments.
M/s. Sun Infraa Versus The Addl. Commissioner of Income Tax
(2016) TaxCorp(LJ) 11446 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=51923&Category=ITAT&CategoryType=Zip
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ITAT - The bonds have been raised for restructuring or rehabilitation of the sick mills through voluntarily retirement scheme of employees etc., the advantage is definitely of enduring nature to the assessee.. Allowability of bond issue expenses - The expenses are having definite role in reorganizing the company and thus played a role in enhancing the value of the company. Not allowable u/s 37(1)as revenue expenditure. Deduction u/s 35D(1)(ii) to be examined by the AO.
M/s. National Textile Corporation Ltd., Versus. ITO, Ward-13 (3), New Delhi
(2016) TaxCorp(LJ) 11445 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51924&Category=ITAT&CategoryType=Zip
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ITAT - Interest expenditure incurred on loans used for acquiring current assets, which includes closing stock, is allowable u/s 36(1)(iii).
Meerut Development Authority Versus Addl. CIT, Range-1, Meerut
(2016) TaxCorp(LJ) 11444 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51598&Category=ITAT&CategoryType=Zip
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ITAT - Call centre is transmitting customized electronic data outside India electronically by using Internet lines for telephone calls to its international customer rather than traditional telephone lines. Entitled to exemption u/s 10A.
Income Tax Officer, Ward-11 (2) , New Delhi Versus M/s. FIS Global Recovery Services India Pvt. Ltd.
(2016) TaxCorp(LJ) 11443 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51926&Category=ITAT&CategoryType=Zip
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S. 279(2) Compounding of offenses: The fact that the assessee has been convicted of an offense does not mean that the application for compounding of the offense is not maintainable. Under the guidelines, the competent authority has to examine the merits of the case and decide whether there is a case for compounding. There are no fetters on the powers of the competent authority under the guidelines. An appeal filed against a conviction is a "proceeding" for s. 279(2).
V. A. Haseeb and Co. (Firm) vs. CCIT
(2016) TaxCorp(LJ) 11442 (HC-MADRAS) · Section 279(2)
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Department's recalcitrance to release the assessee's seized jewellery, even though it is so small as to constitute "stridhan" and even though no addition was sustained in the assessee's hands, is not "mere inaction" but is one of "deliberate harassment"
Sushila Devi vs. CIT
(2016) TaxCorp(LJ) 11441 (HC-DELHI)
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S. 153C: An order u/s 153C passed without obtaining the approval of the JCIT u/s 153D is without jurisdiction and void in view of Calcutta Knitwears 362 ITR 673 (SC) and CBDT Circular No. 24/15 dated 31.12.2015
HiKlass Moving Picture Pvt. Ltd vs. ACIT
(2016) TaxCorp(LJ) 11440 (ITAT-MUMBAI) · Sections 153C, 153D
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Article 5 DTAA: Law explained as to when a "power of attorney" holder of a non-resident can constitute a "dependent agent", "fixed place of business" and a "permanent establishment" under Article 5 of the DTAA. The fact that the physical presence of the non-resident in India is nominal is irrelevant
Carpi Tech SA vs. ADIT
(2016) TaxCorp(LJ) 11439 (ITAT-CHENNAI)
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HC - Reassessment u/s 147 invalid as no notice u/s 143(2) was issued to assessee company and sec. 292BB inapplicable.
Travancore Diagnostics (P) Ltd. vs. ACIT
(2016) TaxCorp(LJ) 11438 (HC-KERALA) · Sections., 143(2), 292BB
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ITAT - Where complete details were available in the public domain, merely because the assessee by an error had not included the same in computation of income, it cannot be held that the assessee had furnished inaccurate particulars of income, making the assessee liable for levy of penalty under section 271(1)(c).
Dhananjay Rajaram Gupte vs. ITO
(2016) TaxCorp(LJ) 11437 (ITAT-PUNE)
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ITAT - 2nd/3rd grounds seeking restoration of AO's order cannot be treated as 'substantive' or independent grounds of appeal so as to give powers to the Tribunal to decide the matter on merits.
Shri Ajit Pulp & Paper Ltd. Vs. Dy. Commissioner of Income Tax
(2016) TaxCorp(LJ) 11436 (ITAT-AHMEDABAD)
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ITAT - Assessee needs to invest the sale proceeds and not the full value consideration u/s 50C in the new property for claiming Sec 54 exemption.
DCIT. vs. Dr. Chalasani Mallikarjuna Rao
(2016) TaxCorp(LJ) 11435 (ITAT-VISAKHAPATNAM) · Sections. 50C, 54
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ITAT - Gift of subsidiary company’s shares to key employee for his contribution in setting up a business unit under another subsidiary company is deductible u/s 37.
PTL Enterprises Ltd. vs. DCIT
(2016) TaxCorp(LJ) 11434 (ITAT-COCHIN) · Section. 37
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S. 147: Even if the claim for s. 80-IA deduction is contrary to Pandian Chemicals 262 ITR 278 (SC) and Liberty India 317 ITR 218 (SC), the assessment cannot be reopened (beyond 4 years) in the absence of tangible material. The reasons recorded for the reopening cannot be improved or supplemented later
Woodward Governor (India) Ltd vs. ACIT
(2016) TaxCorp(LJ) 11433 (HC-DELHI) · Section 147
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S. 10A/10B: After the change in scheme from “exemption” to “deduction” w.e.f. 01.04.2001, brought forward unabsorbed loss & depreciation of other 10B units and non-10B units are not liable for set off against the current year's profit of the 10B unit. The contrary law laid down in Himatasingike Seide 156 Taxman 151 (Kar), as approved by the Supreme Court, deals with the law pre 01.04.2001 when s. 10A/10B provided for an “exemption” and not a “deduction”
CIT vs. Techno Tarp and Polymers Pvt. Ltd
(2016) TaxCorp(LJ) 11432 (HC-BOMBAY) · Sections 10A, 10B
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S. 45/48: In valuing the shares of a privately held co, the “enterprise valuation” has to be taken by valuing even the assets held by subsidiaries of the Company. It is common for the sellers to charge a “controlling premium” for the sale of the shares. Such transfers to enable restructuring and re-aligning the shareholding pattern are genuine and bona fide. The alleged excess consideration for the sale of the shares cannot be treated as “unexplained income”
Amritlal T. Shah vs. ITO
(2016) TaxCorp(LJ) 11431 (ITAT-MUMBAI) · Sections 45, 48
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ITAT - The cost of inflation index should be made applied with reference to the year in which the capital asset was first acquired by the previous owner.
ITO Ward-23 (3) , Kolkata Versus Sudip Roy
(2016) TaxCorp(LJ) 11430 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenDT.aspx?ID=51872&Category=ITAT&CategoryType=Zip
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