Weekly DT Digest

ITAT: Liaisioning charges paid to foreign company for project outside India not liable to TDS u/s 195

Mumbai ITAT deletes disallowance made by the AO u/s 40(a)(i) on liaisoning charges paid to Saudi Arabian company

Aug 31,2018

ITAT: Upholds presumptive taxation u/s. 44AD absent production of ‘books’; Applies ‘peak credit’ theory for unexplained deposits

Kolkata ITAT upholds AO’s action in invoking Sec. 44AD (which provides for taxation of eligible businesses on presumptive

Aug 30,2018

ITAT: Rejects assessee’s bonafide claim for non-deduction of tax on software license u/s 195

Bangalore ITAT rules that payment by assessee to US company during AY 2007-08 for purchase of license to

Aug 24,2018

ITAT: 'Land' valuation as stock-in-trade to be lower of market value or cost including development-charges

Chennai ITAT directs the AO to value the land held as closing stock by assessee (engaged in real

Aug 24,2018

HC: Share-sale income, not STCG; 80% shares held for less than 7-days

Bombay HC rules that income earned by individual-assessee during AY 2007-08 from share sale transactions is in the

Aug 24,2018

ITAT: Deletes LTCG addition on land transferred under development agreement sans project completion

Mumbai ITAT deletes long term capital gain (LTCG) addition on individual-assessee during AY 2014-15, rules that until the

Aug 24,2018

ITAT: Allows deduction u/s 36(1)(viia) on rural advances despite branches situated within 8Kms of town

Chandigarh ITAT allows deduction u/s 36(1)(viia) @ 10% to assessee-bank during AYs 1999-2000 and 2000-01 on rural advances

Aug 24,2018

HC: ‘Factual error’ pointed out by Audit party, not ‘tangible material; Quashes reassessment

Delhi HC quashes reassessment u/s 148 (beyond 4 years period) premised on ‘factual error’ pointed out by the

Aug 24,2018

ITAT: Holds property not transferred in year of entering into JDA absent handing-over of possession

Chennai ITAT holds that transfer of property by assessee under Joint Development Agreement (JDA) took place in subsequent

Aug 17,2018

HC: Upholds commission disallowance, ITAT’s finding not perverse merely because another finding / conclusion possible

Delhi HC upholds ITAT order disallowing expenditure of Rs.1 crore paid as commission by assessee-company (agent of Korean

Aug 17,2018