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

HC: Questions ITAT's 'mechanical adherence' to Galileo ruling on 15% profit attribution

Delhi HC allows Revenue’s appeal challenging ITAT order attributing 15% of assessee’s (USA based limited partnership concern, engaged in online airline booking services) income to India relying on co-ordinate bench ruling

Dec 28,2016

HC: Denies foreign tax credit u/s 91, but allows expense-deduction; Distinguishes reliance on Wipro ruling

Bombay HC upholds foreign tax credit denial u/s 91 to Reliance Infrastructure Ltd. (‘assessee’) with respect to taxes paid in Saudi Arabia during AY 1983-84, however, allows expense-deduction for foreign

Dec 23,2016

HC: Rejects ITAT’s literal interpretation to section 153C 2015-amendment; Upholds block assessment

Delhi HC reverses ITAT’s order, upholds block assessment proceedings u/s 153C against assessee for AYs 2005-06 to 2010-11; Pursuant to search operation u/s 132 in the business premises of two

Dec 23,2016

HC: Exclusive reliance on UK revenue information insufficient to reopen a decade old assessment

Delhi HC dismisses Revenue’s appeal for AY 1982-83, quashes reassessment proceedings initiated u/s 147/148 for taxing amount of interest earned on bank accounts in UK and loan advanced out of undisclosed

Dec 22,2016

HC: Dismisses writ against reassessment notice to scrutinize CCPS-premium taxability

Madras HC dismisses writ filed by assessee (a Private Ltd. Company) for AY 2009-10, upholds reassessment proceedings initiated u/s 147/148 for taxing excess share premium on issuance of compulsory convertible

Dec 21,2016