HC: Upholds Sec 271(1)(c) penalty deletion for wrong loss set-off claim based on CA opinion

Punjab and Haryana HC upholds ITAT order deleting penalty u/s 271(1)(c) for AY 2004-05; During relevant AY, assessee had incorrectly claimed set-off of its income based on a legal opinion

Jan 06,2017

HC: Existing shareholders not a mere section of ‘public’; Allows Sec.35D deduction on rights-issue

Kerala HC reverses ITAT order for AYs 1999-00 and 2003-04, allows assessee’s (a public limited company) claim of amortisation of expenditure incurred in connection with rights issue of shares u/s 35D(2)(c)(iv); HC notes that  assessee had offered

Jan 06,2017

HC: Brand promotion expenditure deductible despite parent company ownership, cites Trademark law provisions

Delhi HC upholds assessee's claim for deduction of advertisement and promotion expenses incurred towards enhancement of brands owned by its foreign parent-company as business expenditure; AO had disallowed part of the expenditure

Jan 05,2017

HC: Endorses "purpose test" to treat transport-subsidy as a capital receipt

Gauhati HC sets aside ITAT order for AY 2001-02, transport subsidy received by assessee (an industrial undertaking) under Government scheme to boost industrial growth in north-eastern region constitutes a non-taxable

Jan 04,2017

HC: Grants Sec.10B benefit despite assessee's Forex receipt not direct, but through sister-concern

Delhi HC dismisses Revenue’s appeal for AY 2008-09, grants deduction u/s 10B to assessee (EOU) on exports made through its sister concern; Rejects Revenue’s submissions that assessee wasn’t qualified to avail

Jan 04,2017

HC: Sets aside ITAT-order; Attributes part consideration to non-compete covenant taxable as business income

Madras HC sets-aside ITAT order, attributes Rs. 1 cr toward non-compete covenant, taxable u/s 28(va), out of total consideration of Rs. 6 cr. received by assessee (a pharma  co.) upon

Jan 03,2017

HC: Deductee-payee’s ‘loss’ return cannot absolve deductor from ‘automatic’ interest liability u/s 201(1A) for TDS-default

Punjab and Haryana HC reverses ITAT order, holds assessee-deductor (a State owned infrastructure development company) liable for interest u/s 201(1A) with respect to TDS default on contractor payments during AYs

Jan 03,2017

HC: Refundable security deposit upon members' admission not club's income absent absolute dominion

Gujarat HC dismisses Revenue’s appeal for AY 2008-09, receipt of non-interest bearing refundable security deposit by assessee-club constitutes a capital receipt  and thus not taxable; On noting that the security deposit recovered

Jan 02,2017

HC: Deletes Sec. 14A disallowance sans examination of assessee’s claim

Delhi HC upholds ITAT’s order for AY 2006-07, deletes Sec. 14A disallowance computed by the AO in case of assessee-company (manufacturing chemical products); Disallowance computed by the assessee u/s 14A

Dec 30,2016

HC: Respected newspaper Tribune advances general public utility but fails 10 "crucial words" test

Punjab & Haryana HC upholds denial of ‘charity’ exemption u/s 10(23C)(iv) to assessee-trust (engaged in printing and publishing of newspaper – ‘The Tribune’) for AY 2009-10; HC relies on Privy

Dec 30,2016