Weekly DT Digest

HC: Adjusting 'share application money' against sales doesn't amount to cessation of liability

Allahabad HC holds that adjustment made by assessee-company during AY 2007-08 of liability towards 'share application money' received

Dec 15,2017

ITAT: Holds assessee as 'investor' in shares, rejects taxation of gains as 'business income'

Kolkata ITAT dismisses Revenue’s appeal, treats profits on sale of shares (3 scrips) which were sold in less

Dec 08,2017

ITAT: Deletes penalty u/s 271(1)(c) for failure to disclose part-payment on land deal

Amritsar ITAT deletes penalty u/s 271(1)(c) levied on assessee-individual (an uneducated villager) for AY 2009-10 on account of

Dec 08,2017

ITAT: Rejects revision of reassessment order on issue not raised in reopening reasons

Delhi ITAT quashes revision u/s 263, holds that PCIT cannot seek to revise order u/s 147 on an

Dec 08,2017

ITAT: Allows deduction of administrative/selling expenses; Refers ICAI guidance-note for real-estate projects

Delhi ITAT allows revenue deduction for administrative and selling expenses (including advertisement, business promotion expenses, brokerage and commission,

Dec 08,2017

ITAT: Interest earned on FDs, inextricably linked with the project, capital receipt, not IFOS

Mumbai ITAT holds that the interest earned by Kamat Hotels (‘assessee’) for AY 2008-09 by temporarily parking the

Dec 01,2017

HC: No addition u/s 68 in the first year of business; Distinguishes Kapur Brothers

Allahabad HC upholds ITAT order, deletes cash credit addition u/s. 68 in the hands of AOP-assessee in the

Dec 01,2017

ITAT: Holds ‘Tax’ effect for maintainability of appeal as exclusive of education cess

Mumbai ITAT dismisses Revenue’s appeal for AY 2012-13 on the ground that the present appeal is not maintainable

Dec 01,2017

HC: Allows additional depreciation u/s 32(1)(iia) on machinery used for production of ready mix concrete

Madras HC reverses ITAT order, allows additional depreciation u/s 32(1)(iia) on the machinery used for production of ready

Dec 01,2017

ITAT: Deletes disallowance u/s 40(a)(ia) for payment under cost sharing agreement; Upholds reimbursement plea

Mumbai ITAT deletes disallowance u/s. 40(a)(ia) for cross charges paid by assessee - company (engaged in the business

Dec 01,2017