Weekly DT Digest

HC: Cautions ITAT on rectifying CIT’s administrative non-appealable order u/s. 119 

HC holds ITAT order rectifying CIT’s administrative order u/s. 119(2)(b) a ‘serious legal error’; CIT u/s. 119(2)(b) had dismissed assessee’s

May 02,2014

HC: Expresses shock on ITAT proceeding with appeal despite assessee’s death, cautions Registry 

Bombay HC cautions Registry to make sure that assessee was alive before proceeding with appeals; States it is Revenue’s/Dept’s responsibility

May 02,2014

HC: Specialized SIM-card supply without supplying material, not ‘work’ even pre-2009 Sec 194C amendment 

HC rules that payments made by Spice Telecom (assessee) during AY 03-04 to AY 05-06 for supply of SIM /

May 02,2014

ITAT: Upholds ULIP-based Keyman insurance policy premium disallowance; Pure life plan must 

ITAT upholds disallowance of premium paid on account of ‘Keyman Insurance Policies’ by assessee-company; Insurance policies indeed were Unit Linked

May 02,2014

ITAT: Medical reimbursement not fringe benefit u/s 115WB, Circular 8/2005 contradicts legislative intent 

ITAT holds reimbursement of medical expenditure to extent of Rs. 15,000 per employee (which is tax-exempt u/s 17(v) for employee)

Apr 25,2014

ITAT: Rejects unsubstantiated pre set-up business loss; Reiterates non-allowability of pre set-up expenditure 

ITAT rejects assessee’s deduction claim of business loss and depreciation, assessee was still in a “setting up stage” and business

Apr 25,2014

ITAT: Incidental observation on income taxability year not 'finding'/ 'direction' enabling reassessment 

ITAT quashes reassessment proceedings absent any ‘finding’ or ‘direction’ given by Tribunal enabling AO to seek recourse to Sec 150

Apr 25,2014

HC: No Sec 263 jurisdiction on NTPC's bonafide revenue estimate pending CERC regulation revision 

HC sets aside CIT’s erroneous exercise of revision powers u/s 263 in NTPC’s case; Pursuant to appropriate enquiry, AO affirmed

Apr 25,2014