HC: Allows deduction of expenditure on abandoned project noting commonality in funds and control

Madras HC reverses ITAT’s order, allows deduction for expenses incurred by assessee on abandoned textile project during AY 2000-01, holds it to be revenue expense; The assessee is engaged in

Aug 31,2018

HC: Gratuity contribution for employees 'past services' under business take-over, deductible

Kerala HC reverses ITAT’s order, allows deduction u/s 36(1)(v) for LIC premium paid in order to indemnify the liability towards gratuity of employees taken over from another company pursuant to business

Aug 30,2018

HC: Upholds grossing-up for TDS purpose; DTAA provides tax rate not 'income computation mechanism'

Madras HC holds that assessee is required to gross-up the amount of fees for technical services (FTS) paid to UK based university, for the purpose of deducting TDS under India-UK

Aug 30,2018

HC: Disagrees with Cochin & Nagpur ITAT-ruling allowing Sec. 80P benefit on unexplained cash-credit additions

Kerala HC expresses disagreement with Cochin ITAT ruling in The Kadakkarappally Service Co-op Bank and Nagpur ITAT ruling in Buldana Urban Cooperative Credit Society Limited allowing Sec. 80P benefit on

Aug 29,2018

HC: Education Cess not 'tax'; Sec.40(a)(ii) disallowance not attracted

Rajasthan HC reverses ITAT’s order, holds that education cess cannot be disallowed under the provisions of Sec. 40(a)(ii); Relies on CBDT Circular No. F. NO. 91/58/66-ITJ(19) dated May 18th ,

Aug 27,2018

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 nature of business income and not short-term capital gain (STCG) as claimed

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 Audit party for AY 2010-11; Upon examination of assessment records by Audit

Aug 24,2018

HC: Income-tax return can’t be relied to discharge allegation under corruption case

Madras HC dismisses Petitioner’s (a public servant) criminal revision petition under Prevention of Corruption Act, 1988, rejects reliance on income-tax returns / paid income-tax; The Petitioner/Accused was found in possession

Aug 23,2018

HC: Management fees, not FIS; Application of know-how requires hands-on advice from NR

Kerala HC reverses ITAT order, holds that payment made by assessee (an Indian co.) to a US co. for providing management, financial, legal, public relations, treasury and risk management service, not

Aug 22,2018

HC: Sec 194A inapplicable on interest for delayed plot allotment, follows HP HC over Madras HC

Calcutta HC upholds ITAT order deleting Sec. 40(a)(ia) disallowance, rules that payment of interest by assessee (a State owned housing development co.) for delayed delivery of plot during AY 2005-06,

Aug 21,2018