HC: Liaison office, not PE absent Revenue demonstrating business activity carried through LO

Delhi HC confirms ITAT’s order for AYs 1994-95 and 1995-96, holds that assessee’s (a Japanese company) liaison office (‘LO’) in India, doesn’t constitutes its PE and accordingly assessee’s  income from business

Aug 02,2017

HC: Upholds taxpayer's treatment of interest income in Sec 80HHC deduction; Differs from Delhi HC

Allahabad HC rules on the treatment of interest income (on FD receipts pledged with the bank for availing export credit facility) in computing deduction u/s 80HHC for AY 1998-99; HC holds that "the interest

Aug 01,2017

HC: Jardines not "fly by night" operator, allows Mauritius DTAA benefit; 'Azadi' holds

Bombay HC dismisses Revenue’s writ, confirms AAR ruling that capital gains arising to JSH (Mauritius) Ltd., (‘assessee’, part of Jardines group) in respect of transfer of shares of Tata Industries Limited (‘TIL’)

Aug 01,2017

HC: Multiple establishments in same complex, not prerequisite for 'commercial complex'; Grants wealth-tax exemption

Delhi HC upholds ITAT’s order that the two properties held by assessee-company (one in Connaught Circus and other in Connaught Lane of Delhi) were in the nature of ‘Commercial Establishments

Jul 28,2017

HC: Upholds deduction u/s. 37 for legal expenses incurred to defend taxpayer’s mining lease

Karnataka HC upholds ITAT order for AYs 2008-09 and 2009-10, allows deduction u/s. 37 for legal expenditure incurred to protect the lease granted to assessee by Government, rejects  Revenue’s capital

Jul 28,2017

HC: Wrong deduction claim cannot make earlier disclosure not ‘true’ to trigger re-assessment

Delhi HC quashes re-assessment for AY 2003-04 initiated beyond 4 years period on assessee (engaged in development and export of computer software and rendering ITES services), holds that the jurisdictional

Jul 28,2017

HC: Rejects Revenue's re-assessment of HCL’s export tax-holiday on profits of foreign branches

Delhi HC allows DSL Software Ltd.’s (assessee, an ITES company and presently amalgamated with its parent i.e. HCL Technologies Limited) writ petition for AY 2004-05 and quashes reassessment initiated beyond four years

Jul 28,2017

HC: Linking seized-document with taxpayer’s undisclosed income ‘must’ for invoking Sec. 292C presumption

Calcutta HC upholds ITAT order, deletes unexplained expenditure/purchase addition u/s. 69C, Revenue had made such additions merely based on presumption u/s. 292C  that, the document (which only contained some scribbled

Jul 28,2017

HC: Revenue must specify reason for penalty - concealment or inaccurate particulars; Deletes penalty

Andhra Pradesh and Telangana HC rules in favour of individual-assessee for AY 2010-11, upholds ITAT order deleting levy of penalty  u/s. 271(1)(c) as the show-cause notice did not specify as to whether it

Jul 25,2017

HC: 'Eligibility conditions’ u/s 80-IA applicable only to initial-AY, not entire tax-holiday period

Delhi HC upholds ITAT order allowing Sec. 80-IA benefit to assessee-company [which was initially a small scale industrial undertaking (‘SSI’), subsequently converted to medium scale undertaking] for AYs 2000-01 to 2002-03,

Jul 24,2017