ITAT: Redemption of mutual fund units, taxable as ‘capital gains’ and not ‘business income’

Delhi ITAT dismisses revenue’s treatment of assessing profits arising from redemption of mutual funds as ‘business income’ instead of ‘capital gains’ for AY 2006-07, notes that the intention of assessee-firm

Oct 23,2018

ITAT: Compensation to subsidiaries towards reimbursement of loss on mortgaged shares, deductible expenditure

Mumbai ITAT allows deduction for compensation paid by assessee co. (loan defaulter) to reimburse loss incurred by subsidiary companies on enforcement of security by lender during AY 2002-03, rejects Revenue’s stand

Oct 22,2018

ITAT: Penalty for encroachment of mining area, compensatory in nature; Grants deduction u/s. 37

Hyderabad ITAT allows deduction u/s. 37(1) to assessee (a PSU engaged in mining) for penalty / compensation payment of Rs. 405 cr. towards encroachment of the mining area beyond the

Oct 22,2018

ITAT: Liquidation damages extraordinarily higher than settled price of goods; Holds transaction speculative

Ahmedabad ITAT disallows assessee-individual’s claim of liquidation damages for AY 2011-12, rejects assessee's stand that the damages were claimed for breach of forward contract entered in respect of sale of

Oct 20,2018

ITAT: Tata Sky's discount on sale of set-top boxes to distributors not commission u/s 194H

Mumbai ITAT holds Tata Sky Ltd (assessee, an Indian company) not liable to deduct TDS u/s. 194H on discounts given to distributors / dealers on sale of Set Top Boxes

Oct 19,2018

ITAT: Retrospective cancellation of certificate u/s 35(1)(ii) cannot disentitle assessee from claiming weighted deduction on donation

Kolkata ITAT allows weighted deduction of 175% claimed by assessee-company u/s 35 (1)(ii) during AY 2013-14 for the donation given to Herbicure Healthcare Bio-Herbal Research Foundation (HHBHRF), rejects AO's stand

Oct 19,2018

ITAT: Treats payments towards discharging mortgage created by previous owner, as cost of acquisition u/s 48

Jaipur ITAT allows deduction for amount paid by assessee for the purpose of clearing the mortgage as cost of acquisition u/s 48 where the property was mortgaged by the previous

Oct 19,2018

ITAT: Applying beneficial provisions of Act for one source & treaty for another permissible

While determining service PE threshold, Mumbai ITAT rejects AO’s aggregation of number of days of visit by employees of the assessee (a Singaporean co.) in India for two types of services viz. rendering of management support services and technical services to

Oct 19,2018

ITAT: Rejects capital-gains on land introduced upon firm's corporatisation and converted into stock-in-trade

Chennai ITAT deletes capital gains addition upon sale of portions of land (earlier converted from capital asset to stock in trade) during  AYs 2012-13, 2013-14 & 2014-15 by assessee company (incorporated in November, 2009 pursuant to

Oct 19,2018

ITAT: Sec. 194C TDS applicable on ‘advances’ made for carrying works, rejects ‘pass-through’ entity plea

Delhi ITAT holds assessee-society (formed for organizing South Asian Federation Winter Games, 2009) liable to deduct TDS u/s. 194C on amount tendered as ‘advance’ to various PSUs (Public Sector Undertakings)

Oct 17,2018