HC: Upholds Settlement Commission's order determining higher income; Payment to ‘mafia’ deductible u/s 37

Bombay HC dismisses Revenue’s writ challenging Settlement Commission order (‘ITSC’) u/s 245D(4), ITSC had allowed the Settlement application filed by the Lodha group (‘assessee’); Rejects Revenue’s stand that ITSC’s determination

Feb 20,2017

HC: Upholds ITAT; Investment trust not assessable as AOP; Sec 164(1) inapplicable

Karnataka HC upholds ITAT order quashing  AO's order holding assessee-trust [set up for investment in mezzanine instruments] as 'AOP' for AY 2008-09; Rejects Revenue’s stand that beneficiaries shares were not determinable,

Feb 17,2017

HC: Deletes Sec. 40(a)(ia) disallowance on interest paid to foreign supplier towards machinery imported

Delhi HC reverses ITAT order for AY1996-97, deletes disallowance made u/s 40(a)(i) towards non-deduction of TDS on interest paid by assessee (a domestic company) on machinery imported from supplier based in Canada,

Feb 17,2017

HC: Assessee’s ground for non-payment of advance-tax non-existent, confirms interest levied u/s 215

Bombay HC confirms interest levied u/s 215(1) towards short / non-payment of advance tax for AY 1976-77, rejects assessee’s plea that liability to pay advance tax did not arise on account of retrospective amendment to

Feb 17,2017

HC: Sans FIR registration, mere cash seizure not IPC offence; Allows PMGKY declaration

Punjab & Haryana HC holds petitioner (‘an individual’) entitled to avail remedy under Pradhan Mantri Garib Kalyan Yojna Deposit Scheme  (‘PMGKY Schme’) with respect to Rs. 30 lakhs cash seized

Feb 16,2017

HC: Invoking Rule 8D based on AO's reasonable presumption permissible, actual quantification not required

Punjab and Haryana HC upholds AO’s resort to Rule 8D for ascertaining Sec 14A disallowance for AY 2008-09, inference drawn by AO that assessee would have incurred certain administrative expenses

Feb 13,2017

HC: Bank holding shares as stock-in-trade not hit by Sec 14A disallowance

Punjab and Haryana HC rules that Sec 14A disallowance not applicable to an assessee-bank for AY 2008-09, holds that Sec. 14A applies only to shares held as ‘investments’ and not

Feb 13,2017

HC: Reverses ITAT; Discontinued unit's assets forming part of 'block' eligible for depreciation

Delhi HC allows Sony India’s appeal and reverses ITAT order for AY 2005-06, allows depreciation on assets forming part of ‘block of assets’ in  respect of  assessee’s unit which was

Feb 10,2017

HC: Sec 143(1) intimation, despite not order, subject to CIT's revision u/s 264 to consider taxpayer's claim

Kerala HC allows assessee’s (a charitable society) writ, directs CIT to consider assessee’s revision petition u/s 264 for AY 2013-14; Notes that assessee received intimation u/s 143(1) wherein certain deduction

Feb 10,2017

HC: Property transfer cannot be taxed by substituting 'fair value' over 'transaction price' u/s 48

Punjab & Haryana HC dismisses Revenue’s appeal, rules that the fair market value ('FMV’) of the property cannot be substituted for the full value of consideration u/s 48 for the

Feb 07,2017