HC: Reverses ITAT; Concealment penalty unsustainable on DRE-deduction claim despite earlier year disallowance

Bombay HC reverses ITAT order, rejects imposition of penalty u/s 271(1)(c) with respect to ‘bonafide’ claim of deferred revenue expenditure (‘DRE’) made by assessee during AY 1989-90, but disallowed by

Dec 09,2016

HC: Subsequent positive net-worth triggers capital-gains tax liability for a 'sick' company

Delhi HC upholds assessee’s liability to pay capital gains tax  despite being subjected to the revival scheme sanctioned by the Board for Industrial and Financial Reconstruction (‘BIFR’) directing granting of

Dec 09,2016

HC: Quashes reassessment hit by limitation; Sec. 153 applicable absent finding/direction in ITAT’s order

Bombay HC allows assessee’s (a partnership firm) writ challenging reassessment proceedings initiated u/s 147/148, being barred by limitation period u/s 153 for AY 1990-91; Ruling in assessee’s favour for AY

Dec 09,2016

HC: Directs refund processing pending scrutiny notice; Taxpayer drops constitutional challenge to Sec 143(1D)

Bombay HC directs expeditious processing of assessee’s Rs 19 crores refund application for AY 2014-15 in accordance with law, despite Sec 143(2) notice issued; Revenue had argued that refund cannot

Dec 09,2016

HC: No capital gains upon firm's Chapter-IX conversion into company despite premature share-transfer

Bombay High Court dismisses Revenue's writ against AAR ruling involving a Luxembourg based non-resident applicant on the issue of capital gains;   HC approves AAR's finding that "In  part  IX  of 

Dec 08,2016

HC: Revenue not debarred from making Sec.14A disallowance absent express recording of dissatisfaction

Delhi HC dismisses asseessee’s (an NBFC) appeal for AY 2009-10, upholds Sec 14A disallowance as computed by AO; During relevant AY, assessee had suo-motu offered Rs. 25 lakhs as expenses

Dec 07,2016

HC: Draws credence from buyer's ruling; Accepts seller's Sec 50B ‘slump-sale’ genuineness

Delhi HC sets-aside ITAT order,  grants slump-sale benefit u/s 50B for AY 2007-08 to seller citing similar treatment in the hands of the acquirer, treats capital gains as long term; Rejects Revenue’s

Dec 07,2016

HC: Reverses AAR, Formula One Championship circuit constitutes fixed-place PE

Delhi HC reverses AAR order in the case of Formula One World Championship Ltd. (‘FOWC’ / ‘assessee’, a UK tax resident Company), holds that assessee constituted a fixed place PE

Dec 02,2016

HC: Quashes reassessment proceedings u/s 147/148; Relies on Kelvinator India (SC)

Delhi HC dismisses Revenue’s appeal,  quashes reassessment proceedings initiated u/s 147/148; Notes that assessee’s claim for provision of bad and doubtful debts was considered by the AO in original assessment completed u/s

Dec 02,2016

HC: Lack of “precise” reasons in notice issued u/s 127 doesn’t constitute fatal infirmity

Delhi HC dismisses assessee’s writ challenging transfer/ centralisation of cases u/s 127 pursuant to search proceedings carried out u/s 132; Notes that the very first sentence in the notice specifically alluded

Nov 25,2016