HC: Sets-aside ITAT order dismissing rectification application in breach of Tribunal-Rules

Bombay HC allows assessee’s (club) writ for AY  2009-10, sets aside ITAT order dismissing assessee’s application for rectification of order passed u/s 254(1);  Notes that ITAT’s order which was subject to rectification (dated Feb. 3,2016)

Jan 19,2017

HC: Upholds deletion of unexplained income u/s 68 absent intensive investigation by AO

Delhi HC dismisses Revenue’s appeal for AY 2001-02, upholds deletion of sums brought to tax by the AO u/s 68; Notes that the assessee had furnished large amounts of materials

Jan 18,2017

HC: ‘Conclusive’ Settlement Commission order doesn't debar CIT's challenge, allows Revenue's writ petition

Kerala HC allows Revenue's writ petition, sets aside Settlement Commission’s final order passed u/s 245D, HC rejects assessee’s stand that CIT, being a mere adjudicating-authority under the Act, cannot challenge

Jan 18,2017

HC: Kerala HC upholds constitutional validity of Sec. 234E; Provision not onerous as Sec.200A intimation appealable

Kerala HC dismisses assessee-deductor’s writ challenging the constitutional validity of Sec. 234E [levying mandatory fee for delay in filing TDS returns]; Rejects assessee’s stand that  there is no element of 'quid pro quo' for

Jan 18,2017

HC: Allows investment allowance u/s32A on machinery leased despite no “actual-use” by assessee

Bombay HC dismisses Revenue’s appeal for AY 1986-87, holds that assessee (a financial institution engaged in leasing of machinery) was entitled to claim investment allowance u/s.32A on the value of

Jan 13,2017

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