Direct Tax landmark rulings

1. HP High Court · 04 Apr 2016
   HC - Compensation received by assessee- company on termination of Share Purchase agreement was a ‘revenue’ receipt.

   Avantor Performance Materials India Limited vs. CIT

   (2016) TaxCorp(LJ) 10070 (HC-HP)

2. Supreme Court · 31 Mar 2016
   S. 9(1)(vii)/ 40(a)(ia)/ 194J: “Technical services” & “Managerial and Consultancy service” denotes services that cater to special & exclusive needs of the consumer/user. A "facility", even if termed as a service, which is available to all users, does not come within the ambit of “technical services” in Explanation 2 of s. 9(1)(vii)

   CIT vs. Kotak Securities Ltd

   (2016) TaxCorp(LJ) 10069 (SC) · Sections 9(1)(vii), 40(a)(ia), 194J

3. Calcutta High Court · 30 Mar 2016
   S. 37(1): Distinction between "application software" and "system software" explained. Expenditure on "application software" is revenue as it allows efficient carrying on of business and requires to be constantly updated due to rapid advancements in technology and increasing complexity of the features

   Indian Aluminum Company vs. CIT

   (2016) TaxCorp(LJ) 10068 (HC-CALCUTTA) · Section 37(1)

4. ITAT Mumbai · 01 Apr 2016
   S. 263 revision cannot be initiated to conduct roving inquiries whether share application money share premium constitute undisclosed income

   Rachana Finance & Investments Pvt Ltd vs. CIT

   (2016) TaxCorp(LJ) 10067 (ITAT-MUMBAI) · Section 263

5. ITAT Mumbai · 31 Mar 2016
   AO framed the assessment in a hypothetical way putting the assessee to enormous harassment and inconvenience . Similarly, the CIT(A) confirmed the addition without looking into the merits and facts of the cases which are very clear and apparent from the records produced.

   Mintu Sayermal Jain vs. ITO

   (2016) TaxCorp(LJ) 10066 (ITAT-MUMBAI)

6. ITAT Lucknow · 30 Mar 2016
   S. 115JA/115JB: Capital receipts (such as subsidy & carbon credits), which have no income element, have to be excluded from book profits even if credited to the P&L A/c

   ACIT vs. L. H. Sugar Factory Ltd

   (2016) TaxCorp(LJ) 10065 (ITAT-LUCKNOW) · Sections 115JA/115JB

7. ITAT Delhi · 30 Mar 2016
   Section 68- Cash Credit

   Hitender Pal Singh vs. ITO

   (2016) TaxCorp(LJ) 10064 (ITAT-DELHI) · Section 68

8. ITAT Delhi · 01 Apr 2016
   Whether subsequent decision of High Court reversing the view of the ITAT constitute mistake apparent from record

   Green Meadows Pvt Ltd vs. ITO

   (2016) TaxCorp(LJ) 10063 (ITAT-DELHI)

9. ITAT Delhi · 31 Mar 2016
   S. 271(1)(c): No penalty leviable on bonafide human error committed while filing return of income

   B. L. International vs. ACIT

   (2016) TaxCorp(LJ) 10062 (ITAT-DELHI) · Section 271(1)(c)

10. Kerala High Court · 01 Apr 2016
    HC - Revenue’s appeal dismissed in view of CBDT circular no. 21/2015 (Department's appeal before High Courts shall not be filed in cases where tax effect does not exceed monetary limit of Rs. 20 lakhs).

    CIT. vs. Lakshmikutty Narayanan

    (2016) TaxCorp(LJ) 10061 (HC-KERALA)

11. Karnataka High Court · 01 Apr 2016
    HC - Simply because the AOP couldn’t be taxed is not a valid ground to tax assessee- member in respect of distribution of AOP’s properties on its dissolution.

    Pr. CIT. vs. IND Sing Developers P. Ltd.

    (2016) TaxCorp(LJ) 10060 (HC-KARNATAKA)

12. Calcutta High Court · 01 Apr 2016
    HC - Settlement Commission has no powers u/s 154 for levying Sec 234B interest.

    Poddar Industrial Corporation vs. Income Tax Settlement Commission

    (2016) TaxCorp(LJ) 10059 (HC-CALCUTTA) · Sections. 154, 234B

13. ITAT Mumbai · 29 Mar 2016
    Mutuality - TDR Premium

    Hatkesh Co-op. Hsg. Society Ltd vs. ACIT

    (2016) TaxCorp(LJ) 10058 (ITAT-MUMBAI)

14. ITAT Mumbai · 30 Mar 2016
    Bogus Purchases: Theory that transaction "defies human probabilities" cannot be applied to purchases in isolation but has to be applied to the entire transaction in the light of documentary evidence produced by the assessee

    M/s. Maruti Impex vs. JCIT

    (2016) TaxCorp(LJ) 10057 (ITAT-MUMBAI)

15. ITAT Delhi · 31 Mar 2016
    ITAT - CUP is preferred over entity-TNMM for royalty benchmarking.

    JCB India Ltd. Vs. DCIT

    (2016) TaxCorp(LJ) 10056 (ITAT-DELHI) · Section. 37

16. Supreme Court · 31 Mar 2016
    SC - 3.5% of FOB value received as service charge from export houses is available for sec. 80HHC deduction for AY 1994-95.

    Southern Sea Foods vs. JCIT

    (2016) TaxCorp(LJ) 10055 (SC) · Section. 80HHC

17. Delhi High Court · 31 Mar 2016
    HC - CIT u/s 264 has revisionary powers to give relief to the assessee in a case where the assessee detracts mistakes because of which he was over-assessed.

    Vijay Gupta vs. CIT

    (2016) TaxCorp(LJ) 10054 (HC-DELHI) · Section. 264

18. Supreme Court · 30 Mar 2016
    SC - No TDS u/s 194J on transaction charges paid by stock exchange members to BSE as it does not qualify as 'fees for technical services'.

    Kotak Securities Ltd. vs. CIT

    (2016) TaxCorp(LJ) 10053 (SC)

19. ITAT Amritsar · 30 Mar 2016
    ITAT - Assessment order passed in violation of CBDT instruction dated September 8, 2010 is not valid.

    Gurpreet Kaur vs. ITO

    (2016) TaxCorp(LJ) 10052 (ITAT-AMRITSAR)

20. Delhi High Court · 30 Mar 2016
    HC - Even if no direction was issued by the DRP under Section 144C (5) of the Act, the fact that the DRP held that both the Petitioners were not ‘eligible Assessees’ could not have been ignored by the AO.

    ESPN Star Sports Mauritius S.N.C. ET Compagnie Vs The Union of India & ANR (now known as ESS Advertising (Mauritius) S.N.C et Co.

    (2016) TaxCorp(LJ) 10051 (HC-DELHI)

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