Weekly DT Digest

HC: Grants Sec 80HHC deduction on 'interest income' having ‘direct nexus’ with business 

HC holds 'interest income' arising from surplus funds assessable as ‘business income’, and not as ‘income from other sources’ (‘IFOS’),

Oct 10,2014

ITAT: Making suo-moto enquiries and calling for ‘new’ records impermissible u/s 263 

ITAT holds CIT’s invocation of Sec 263 as unjustified as CIT made suo moto enquiries and called for new records,

Oct 10,2014

HC: Despite TDS mismatch/non-deposit, deductee allowed TDS credit based on Form 16A 

HC quashes demand notice u/s 221(1), grants TDS credit to assessee-deductee based on production of Form 16A, inspite of TDS

Oct 10,2014

ITAT: Plant not 'set-up' until trial runs successful, holds operational expenses as capital 

ITAT disallows expenditure on salary, wages, power charges, professional fees etc. incurred prior set-up of new plant and machinery; As

Oct 10,2014

ITAT: Despite Sec 11 exemption denial advance cannot be taxed as "income" absent accrual 

Advance received by assessee to telecast and broadcast programme not income absent accrual; Advance amount cannot be construed as “income”

Oct 01,2014

HC: Allows product development expense in telecom sector as revenue deduction, follows Empire Jute 

HC holds expenditure incurred for upgrading existing product in the telecommunication industry as revenue and not capital expenditure; States product

Oct 01,2014

HC: Upholds Sec 80P(2)(a)(ii) deduction to co-operative scoiety being recognized 'cottage industry' 

HC holds assessees’ (engaged in production of textile goods and registered under Industrial Co-operative Societies Act) as eligible for Sec

Oct 01,2014

ITAT: Frowns on DIT(E) for not following jurisdictional HC judgment, awards Rs.2000 cost 

ITAT lambasts DIT(E) for refusing Sec 12A registration to assessee (an Agricultural Market Committee) based on “extraneous” considerations; States that

Sep 26,2014

ITAT: Revenue not prejudiced absent "real income" accrual before BOT project completion 

ITAT sets aside CIT’s Sec 263 order, holds no “real income” accrued to assessee (who had undertaken construction of a

Sep 26,2014

ITAT: Holds assessee liable to Sec 195 TDS on NR seller’s proportionate sale consideration 

ITAT holds assessee in default for non-deduction of tax u/s 195, states assessee ought to have deducted tax while making

Sep 26,2014

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