HC: One-time trademark royalty deductible u/s 37, explains factors relevant for revenue v capital classification

Delhi HC holds one time royalty payment under Trade Mark License Agreement deductible as revenue expenditure, holds that  no enduring benefit conferred on assessee; AO noted that during the  tenure

Apr 27,2018

HC: Allowance to employees deputed abroad for meeting personal cost taxable as perquisite

Andhra Pradesh HC confirms ITAT order, holds that allowances paid to employees deputed to UK by assessee (software developer) is taxable as perquisite u/s 17 (2) subject to tax deduction

Apr 24,2018

HC: Liquidated damages for cancelling earlier agreement to sell immovable property deductible u/s 48(i)

Delhi HC reverses ITAT order to allow deduction of liquidated damages paid by the assessee for cancelling earlier agreement to sell immovable property, as expenditure incurred wholly and exclusively in

Apr 24,2018

HC: Rejects market value substitution as sales consideration for share-sale to related party

Delhi HC reverses ITAT order for AY 1999-2000, rejects substitution of market value as full value of consideration for sale of shares by assessee (an individual) to its related entity;

Apr 23,2018

HC: Demand on property purchaser towards defaulter seller's tax-dues, justified; Invalidates sales transaction

Rajasthan HC dismisses assessee’s writ against Tax Recovery Officer's (TRO) order raising demand against purchaser assessee, holds sale transaction executed in favour of the assessee by defaulter purchaser as void,

Apr 20,2018

HC: Bureaucracy or substantial tax effect inadequate causes to condone Revenue's 300+ days appeal-filing delay

Bombay HC refuses to condone Revenue’s 318 days delay in appeal filing which is not sufficiently explained , rejects Revenue’s submission that considering the inherent manner in which the State

Apr 18,2018

HC: Builder's income accrues on giving flat possession, not on allotment letter issue

Bombay HC upholds ITAT order for AY 2007-08, rules that income in respect of sale of flats by assessee, a builder and developer accrued when possession of flat was given and

Apr 18,2018

HC: Explanation to Sec 73 not applicable to derivative transactions; Allows loss set off

Madras HC upholds ITAT order, allows set-off of loss incurred by assessee-company (having main business of jewellery) from trading in derivative transactions through Multi Commodity Stock Exchange (‘MCX’), against other

Apr 18,2018

HC: Denies Sec. 80IA deduction to assessee 'maintaining' power plant owned by another entity

Madras HC dismisses assessee-company’s appeal for AY 2002-03, upholds denial of Sec. 80IA deduction (available to entities engaged in generation or generation and distribution of power) as assessee not owner

Apr 16,2018

HC: Books rejection u/s 145 does not automatically lead to penalty-proceedings, absent independent findings

Allahabad HC upholds ITAT order and deletes penalty u/s 271(1)(c) levied on assessee- company (engaged in business of electrical items) during AY 2009-10, rules that rejection of books of account

Apr 14,2018