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ITAT - The extra-ordinary circumstance forming primary reason of cash payment is that there were some DRT proceedings wherein the assessee was in urgent need of money. No addition u/s 68.
The ITO, Ward-4, Navsari Versus Thakorbhai Chhotubhai Patel
(2016) TaxCorp(LJ) 11144 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=51403&Category=ITAT&CategoryType=Zip
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HC - While granting registration u/s 12AA, it would be open to the Registering Authority to grant the same by imposing any condition, which would bind the Company to indulge in only charitable activities.
Commissioner of Income Tax, Faridabad Versus IILM Foundation Academy, Gurgaon
(2016) TaxCorp(LJ) 11143 (HC-P&H) · http://taxcorp.in/FileOpenDT.aspx?ID=66334&Category=Judgment&CategoryType=Zip
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HC - Revenue cannot reject the revised method of accounting except in cases covered by proviso to Sec.145(1) or Sec. 145(2). change in the method of ascertaining cost for the purpose of stock valuation from “lowest price during the year” to “weighted average cost” justified.
Bajaj Auto Ltd. vs. CIT
(2016) TaxCorp(LJ) 11142 (HC-BOMBAY)
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HC - AO's reasons establish 'prima facie' case for initiating re-assessment for alleged profits diversion using tax-haven.
Sun Pharmaceutical Industries Ltd. vs. ACIT
(2016) TaxCorp(LJ) 11141 (HC-GUJARAT)
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ITAT - Vacancy allowance u/s 23(1)(c) is available only when property actually is let out. Notion of ‘intent to let out’ or ‘proposed to be let’, etc., cannot be imported into the provision, which seeks to tax a notional sum
Sharan Hospitality Private Limited vs. DCIT
(2016) TaxCorp(LJ) 11140 (ITAT-MUMBAI) · Section. 23(1)(c)
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ITAT - Once the commission is accepted to have been paid, there is no logic in disallowing such expenditure on the ground of being excessive. It is for the assessee to determine the way in which it has to carry on its business.
Anand Enterprises Versus Jt. CIT 18 (2), Mumbai
(2016) TaxCorp(LJ) 11139 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=51387&Category=ITAT&CategoryType=Zip
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ITAT - Where addition was made on cessation of liability (Amount of advance received for sale of property), the amount of advance received will have to be be reduced from the cost of acquisition of asset while computing capital gains.
ITO, 3 (1) (4), Mumbai Versus M/s Fiesta Properties Pvt Ltd
(2016) TaxCorp(LJ) 11138 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=51250&Category=ITAT&CategoryType=Zip
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ITAT - The assessee would be hit by Explanation 1(B) to S. 271(1)(c) and would be still liable to pay penalty. One’s own mistake or delay can’t be used to advance one’s cause. In law, nobody can claim the benefit of delays or mistakes on his own part; though it may advance the cause of the other side.
Nicotra India Pvt. Ltd. Versus ACIT Circle 13 (1), New Delhi.
(2016) TaxCorp(LJ) 11137 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51388&Category=ITAT&CategoryType=Zip
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ITAT - Whereas the expenditure of a capital nature incurred on the renovation etc. of a building, which is not owned by the assessee but in respect of which the assessee holds mere occupancy rights, cannot be allowed deduction as a revenue expense, but such expenditure of a capital nature is liable to be considered as a building owned by the assessee for the purposes of section 32 and hence depreciation is allowable pro tanto.
Cornell Overseas Pvt. Ltd. Versus DCIT, Circle-3 (1), New Delhi.
(2016) TaxCorp(LJ) 11136 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=51254&Category=ITAT&CategoryType=Zip
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ITAT - Providing medical, maternity, nursery, fertility and vaccination facilities to bovine milch animals belonging to milk producers in lieu of collecting cess @ 12 paisa per liter of the milk produced cannot be called a trade, commerce or business. Exemption claim was wrongly denied by invoking section 2(15) proviso.
Amul Research and Development Association, C/o Amul Dairy Premises Versus The ITO, Ward-3, Income Tax Office, Anand
(2016) TaxCorp(LJ) 11135 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=51392&Category=ITAT&CategoryType=Zip
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ITAT - Expenses cannot be considered to be incurred wholly and exclusive for the purpose of the business as the same were incurred to create good relations with the doctors in lieu of expected favours from doctors for recommending to patients the pharmaceutical products.
The Assistant Commissioner of Income Tax, Circle 6 (3), Mumbai Versus Liva Healthcare Limited And Vice-Versa
(2016) TaxCorp(LJ) 11134 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=51251&Category=ITAT&CategoryType=Zip
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Transfer Pricing: The assessee is obliged to carry out a bench-marking exercise with independent comparables and prove that its transactions with AEs are at arms length. Mere fact that the transaction is approved by the RBI and Govt is not sufficient
Sara Lee TTK Ltd vs. DCIT
(2016) TaxCorp(LJ) 11133 (ITAT-MUMBAI)
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Entire law on whether consideration for alienation of rights under a "Call Option agreement" for shares is taxable as "capital gains" or as "income from other sources" in the context of the India-Singapore DTAA explained
Praful Chandaria vs. ADIT
(2016) TaxCorp(LJ) 11132 (ITAT-MUMBAI)
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S. 234E: Prior to the amendment to s. 200A w.e.f. 01.06.2015, the fee for default in filing TDS statements cannot be recovered from the assessee-deductor
Little Servants of Divine Providence Providence Charitable Trust vs. ITO
(2016) TaxCorp(LJ) 11131 (ITAT-COCHIN) · Section 234E
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S. 271B: Penalty for delay in furnishing tax audit report should not be imposed if there is no mala fide reason for the delay. Dispute with auditor is a reasonable cause u/s 273B for the delay in furnishing the tax audit report
Gemorium vs. ITO
(2016) TaxCorp(LJ) 11130 (ITAT-JAIPUR) · Section 271B
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Refundable deposits received by a housing company for allotment of flats and future maintenance is business income. However, share capital received for allotment of flats is a capital receipt and not income. The principles of mutuality does not apply to such transactions
G. S. Homes & Hotels P. Ltd vs. CIT
(2016) TaxCorp(LJ) 11129 (SC)
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S. 153A: Even in a case where only a s. 143(1) assessment is made, additions cannot be made without the backing of incriminating material if the s. 143(1) assessment has not abated
Anil Mahavir Gupta vs. ACIT
(2016) TaxCorp(LJ) 11128 (ITAT-MUMBAI) · Section 153A
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HC - Share issue expenses at the instance of Government-directive is not revenue in nature. not allowable u/s 37(1).
Hindustan Lever Ltd. vs. CIT
(2016) TaxCorp(LJ) 11127 (HC-BOMBAY) · Section. 37(1)
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HC - Writ Allowed - CCIT’s order rejecting compounding application for offence committed by the assessee u/s 276B (i.e. TDS default) u/s 279(2) set aside.
V. A. Haseeb and Co. vs. CCIT
(2016) TaxCorp(LJ) 11126 (HC-MADRAS)
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HC - Intimation raising demand prior to 1.6.2015 u/s 200A levying Sec 234E late fees is not valid.
Fathehraj Singhvi vs. UOI
(2016) TaxCorp(LJ) 11125 (HC-KARNATAKA) · Sections. 200A, 234E
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