HC: Upholds ITAT; Rule 8D(2)(ii) inapplicable, entire interest related to earning of taxable income

Bombay HC upholds ITAT order, quashes CIT's revision u/s 263 enhancing Sec 14A disallowance by invoking Rule 8D(2)(ii) for AY 2008-09; Upholds ITAT order that no interest expenditure was available

Aug 04,2017

HC: Quashes Sec. 153A assessment absent notice u/s 143(2)

Allahabad HC upholds ITAT order quashing Sec. 153A assessment on assessee for AY 2006-07 absent notice u/s 143(2); Observes that Revenue invoked Sec 153A without serving notice u/s 143(2) which

Aug 04,2017

HC: Forex gain on royalty/interest income 'exempt' under Malaysian DTAA, taxable

Bombay HC upholds ITAT order, forex gain arising to assessee (Indian company) on ‘exempt’ royalty/interest income from Malaysian JV company during AY 1991-92, taxable; During relevant AY, assessee received royalty

Aug 04,2017

HC: Case transfer u/s 127 cannot be retrospective; Quashes block-assessment absent jurisdictional AO's notice

Bombay HC upholds ITAT order, quashes block assessment for the block period 1989-90 to 1999-2000, accepts assessee’s stand that issuance of Sec. 158BC notice by AO, Nagpur was without jurisdiction;

Aug 03,2017

HC: Launching prosecution after 3 years lapse for delay in TDS deposit, mere harassment

Patna HC quashes prosecution proceedings u/s. 276B launched against assessee-company for committing TDS default, grants immunity u/s. 278AA for AY 2010-11; During relevant AY, assessee deducted TDS u/s. 194A/194H for

Aug 03,2017

HC: Liaison office, not PE absent Revenue demonstrating business activity carried through LO

Delhi HC confirms ITAT’s order for AYs 1994-95 and 1995-96, holds that assessee’s (a Japanese company) liaison office (‘LO’) in India, doesn’t constitutes its PE and accordingly assessee’s  income from business

Aug 02,2017

HC: Upholds taxpayer's treatment of interest income in Sec 80HHC deduction; Differs from Delhi HC

Allahabad HC rules on the treatment of interest income (on FD receipts pledged with the bank for availing export credit facility) in computing deduction u/s 80HHC for AY 1998-99; HC holds that "the interest

Aug 01,2017

HC: Jardines not "fly by night" operator, allows Mauritius DTAA benefit; 'Azadi' holds

Bombay HC dismisses Revenue’s writ, confirms AAR ruling that capital gains arising to JSH (Mauritius) Ltd., (‘assessee’, part of Jardines group) in respect of transfer of shares of Tata Industries Limited (‘TIL’)

Aug 01,2017

HC: Multiple establishments in same complex, not prerequisite for 'commercial complex'; Grants wealth-tax exemption

Delhi HC upholds ITAT’s order that the two properties held by assessee-company (one in Connaught Circus and other in Connaught Lane of Delhi) were in the nature of ‘Commercial Establishments

Jul 28,2017

HC: Upholds deduction u/s. 37 for legal expenses incurred to defend taxpayer’s mining lease

Karnataka HC upholds ITAT order for AYs 2008-09 and 2009-10, allows deduction u/s. 37 for legal expenditure incurred to protect the lease granted to assessee by Government, rejects  Revenue’s capital

Jul 28,2017