HC: ‘Factual error’ pointed out by Audit party, not ‘tangible material; Quashes reassessment

Delhi HC quashes reassessment u/s 148 (beyond 4 years period) premised on ‘factual error’ pointed out by the Audit party for AY 2010-11; Upon examination of assessment records by Audit

Aug 24,2018

HC: Income-tax return can’t be relied to discharge allegation under corruption case

Madras HC dismisses Petitioner’s (a public servant) criminal revision petition under Prevention of Corruption Act, 1988, rejects reliance on income-tax returns / paid income-tax; The Petitioner/Accused was found in possession

Aug 23,2018

HC: Management fees, not FIS; Application of know-how requires hands-on advice from NR

Kerala HC reverses ITAT order, holds that payment made by assessee (an Indian co.) to a US co. for providing management, financial, legal, public relations, treasury and risk management service, not

Aug 22,2018

HC: Sec 194A inapplicable on interest for delayed plot allotment, follows HP HC over Madras HC

Calcutta HC upholds ITAT order deleting Sec. 40(a)(ia) disallowance, rules that payment of interest by assessee (a State owned housing development co.) for delayed delivery of plot during AY 2005-06,

Aug 21,2018

HC: Constructed house cost to include land cost for Sec 54 capital gain exemption

Madras HC allows assessee's (an individual) appeal for AY 2010-11, rules that capital gains exemption u/s 54 shall be allowable for investment made in cost of construction of residential house as

Aug 20,2018

HC: Sans 'role' in overseas share transfer, can't hold Indian co. 'agent'; Quashes proceedings

HC reverses single judge order, quashes show cause notice issued to Indian co. proposing to treat it as an 'agent', in respect of Rs. 429 cr capital gains tax of non-resident transferor; Shares of

Aug 18,2018

HC: Upholds commission disallowance, ITAT’s finding not perverse merely because another finding / conclusion possible

Delhi HC upholds ITAT order disallowing expenditure of Rs.1 crore paid as commission by assessee-company (agent of Korean based company) to its sub-agent during AY 2010-11, observes that ITAT's conclusions

Aug 17,2018

HC: Directs ITAT to examine whether Company incorporated under ROC Sikkim Act constitutes Indian co. u/s. 2(26)

Delhi HC directs ITAT to examine as to whether the assessee company (incorporated under Registration of Companies (Sikkim) Act, 1961) was an Indian company during AY 1987-88 to 1991-92 and

Aug 17,2018

HC: Clarifies wealth-tax liability on cash for proprietorships statutorily required to maintain books

Kerala HC upholds constitutional validity of Sec 2(ea)(vi) of Wealth Tax Act which defines the term 'assets' for the purpose of charge of wealth tax to include 'cash in hand'

Aug 16,2018

HC: Upholds denial of Sec.80-IB deduction absent Assessee’s control over outsourced manufacturing activity

Bombay HC upholds ITAT order and rules in favour of Revenue, denies Sec. 80-IB deduction to assessee-company outsourcing manufacturing activity to contract manufacturer; Observes that the assessee did not retain control over

Aug 16,2018