HC: Quashes reassessment order disallowing support charges paid to AE

Reassessment for AY 2004-05, disallowing support charges paid to AE in entirety, not justified; Assessment was reopened based on finding during AY 2007-08, that no substantial services were rendered by

Jul 18,2012

HC: Last previous owner’s acquisition date relevant for indexation of inherited property 

Capital gains on transfer of inherited property to be worked out after including period of holding by previous owners; Assessee acquired property under a will from her parents, who had

Jul 17,2012

HC: Cancels Voda Essar's reassessment of telecom license fee deduction 

Reassessment notice seeking to disallow deduction for telecom license fees payable pursuant to New Telecom Policy 1999 invalid; Vodafone Essar Gujarat disclosed claim for full deduction of telecom license fees

Jul 17,2012

HC: Overrules ITAT SB on extending stay; 365 days period Sacrosanct

Tribunal not entitled to extend period of stay of demand beyond 365 days, even if the delay is not caused by assessee; Insertion of third proviso to Sec 254(2A) by

Jul 17,2012

HC: Mere agreement to lease aircraft without possession not entitled to tax exemption 

Aircrafts lease rental paid by GoAir and Kingfisher not entitled to tax exemption u/s 10(15A); Mere entering into lease agreement before sun-set date of March 2007 without actual delivery of

Jul 13,2012

HC: Affirms ITAT, no capital gains tax relief on share sale during IPO

Sale of shares by Promoter during IPO, based on provisional approval from recognized Stock Exchanges but before listing, not entitled to lower capital gains tax rate; Ownership of shares transferred

Jul 11,2012

HC: Payment for right to purchase raw material a revenue expense 

Lease rentals attributable to modernization of machinery and acquiring right to purchase raw material allowable as revenue expenditure; Lease rentals attributable to elimination of competition from lessor is capital expenditure

Jul 10,2012

HC: Mere claim of debatable issue not sufficient to quash penalty 

Mere contention that question / issue was debatable and plausible views exist, not sufficient to quash penalty; Mens rea relevant in the criminal proceedings but not for the purpose of

Jul 09,2012

HC: Guj HC strikes down 80HHC retro amendment on DEPB, Carries implications for Sec 9

Insertion of 3rd and 4th provisos to Sec 80HHC(3) with retrospective application in respect of DEPB / DFRC profits, violative of Article 14; If taxing statute declared invalid for technical

Jul 05,2012

HC: Kerala HC follows Calcutta HC; Strikes down leave encashment disallowance u/s 43B

Leave encashment liability not a statutory liability; Sec 43B(f) disallowance on leave encashment unconstitutional, following Calcutta HC decision in Exide Industries Ltd; Revenue not having challenged correctness of Calcutta HC

Jul 04,2012