HC: Reverses ITAT; Rejects leasing between affiliates at lower rate, applies 'reasonable-rent' benchmark

Kerala HC sets aside ITAT order, holds ‘reasonable’ rent and not the lower actual rent received by assssee-individual, relevant for computing annual value of the property let out u/s 23(1)

Nov 21,2016

HC: Sec 234C interest mandatory though unanticipated income resulted in advance tax shortfall

Madras HC upholds levy of Sec 234C interest, does not accept taxpayer's argument that deferment in payment of advance tax was beyond the control of assessee; During relevant AY 2007-08,

Nov 18,2016

HC: Lack of detailed reasoning in transfer order doesn’t ensue “grave-prejudice” to assessee

Delhi HC dismisses assessee’s writ challenging transfer/centralisation of case u/s 127 for coordinated post search investigation and meaningful assessment, pursuant to proceedings u/s 133A; Rejects assessee’s plea that failure to

Nov 18,2016

HC: Settlement commission not entitled to 'review' own order, quashes order

Madras HC quashes order passed by the Income Tax Settlement Commission (‘ITSC’) rectifying / reviewing the order passed u/s 145D(4) for AYs 1988-89 to 1994-95 based on Revenue’s miscellaneous petition; Sec. 245F (conferring powers on

Nov 17,2016

HC: Software services by Indian-branch to foreign HO, an 'export'; Allows Sec 10A benefit

Delhi HC upholds ITAT order, allows Sec 10A relief to assessee-branch (a 100% SEZ unit engaged in software development) on profits arising on transfer of software to its foreign head

Nov 15,2016

HC: Non-reporting of income based on CA’s advice not 'specious'; Deletes 271(1)(c) penalty

Delhi HC dismisses Revenue’s appeal for AY 2008-09, deletes 271(1)(c) penalty for non-reporting of capital gains on account of bonafide belief that it was eligible for relief u/s 54G based on CA’s

Nov 15,2016

HC: Higher school fees doesn't establish profit motive, allows exemption u/s 11; Reverses ITAT-order

Gujarat HC reverses ITAT order, grants Sec 11 exemption to assessee (an educational trust running a school) for AY 2003-04; Rejects Revenue’s stand that assessee was charging higher fees as compared to other

Nov 14,2016

HC: Assessment of educational trust absent jurisdiction “void-ab-initio” and not a mere irregularity

Patna HC allows assessee’s (a non-profitable educational trust) writ; Quashes assessment order and demand notice passed by ITO (Exemptions), Muzaffarpur for AY 2013-14 absent jurisdiction and in violation of the

Nov 11,2016

HC: Revenue’s threat to initiate penalty/prosecution proceedings on return-filing failure unjustified

Madras HC allows assessee’s writ challenging notice issued  to furnish their return of  income immediately and threatening to initiate penalty and prosecution proceedings u/s 271F and 276cc;  HC observes that the

Nov 11,2016

HC: Disapproves CBDT's Sec 119(2) discretion; Condones return filing delay noting 'technical' snags

Madras HC division bench upholds Single Judge order, sets-aside CBDT order rejecting assessee's condonation application u/s 119 with regards to a day’s delay in filing return of income for AY

Nov 10,2016