ITAT: Sec 12A amendment allowing charitable registration roll-back 'curative'; Allows retrospective exemption

Amritsar ITAT grants exemption u/s 11 to assessee-trust (running schools) for AYs 2006-07 to 2012-13 despite Sec 12A registration granted subsequently only w.e.f. February 25th 2013 , holds first proviso to

Dec 15,2016

ITAT: Sets-aside Sec.14A disallowance absent AO's examination of assessee's "no expenses" claim

Mumbai ITAT sets aside Sec 14A disallowance for AY 2010-11 made without considering and addressing assessee's claim that no expenditure was incurred to earn exempt income as all investments were routed

Dec 09,2016

ITAT: Interprets Sec.42(2)(b) on oil-exploration income; DRP-route inapplicable absent income-variation, tax-rate change irrelevant

Chennai ITAT allows assessee’s (US Company engaged in exploration/ processing of oil and natural gas) appeal for AY 2010-11, holds that consideration received on transfer of participation rights/interests in oil banks and overriding royalty

Dec 01,2016

ITAT: Grants Sec. 10A deduction on profits post-disallowance although recent Circular's scope restricted

Hyderabad ITAT dismisses Revenue’s appeal, grants deduction u/s 10A to assessee (engaged in software development) in respect of amounts relating to disallowance u/s 40(a)(ia) for AY 2007-08; Revenue denied deduction

Nov 29,2016

ITAT: Interest-free security-deposit from sister-concern on let-out property relevant for income determination

Bangalore ITAT upholds Revenue’s determination of annual value (‘ALV’) of property let out by assessee to its sister concern, by adopting ‘notional interest’ on security deposit received by assessee; During

Nov 29,2016

ITAT: Meagre credit-balance doesn’t amount to loans & advances for attracting Sec. 2(22)(e)

Delhi ITAT allows assessee’s appeal AY 2006-07, deletes addition made u/s 2(22)(e)  towards deemed dividend;  Observes that for the applicability of Sec. 2(22)(e), apart from other conditions, the amount received by the shareholder

Nov 25,2016

ITAT: Payments to relatives for improving property-title deductible; ‘Social circumstances’ outweigh ‘mechanical approach’

Ahmedabad ITAT upholds assessee’s (HUF) claim, sums paid to brothers for getting the premises vacated allowable as cost of improvement for the purpose of computing long term capital gains (‘LTCG’) on sale of house

Nov 23,2016

ITAT: Rejects asset acquisition from affiliates at higher values; Upholds depreciation disallowance invoking Sec 43

Bangalore ITAT upholds depreciation disallowance on intangible asset  i.e. ‘distribution network’ and other assets acquired by Sanyo BPL Pvt. Ltd. (assessee, a JV co.) invoking Explanation 3 to Sec 43(1),

Nov 22,2016

ITAT: CA firm donation to ICAI buildings satisfies 'commercial expediency' test; Allows Sec. 37 deduction

Mumbai ITAT allows business expenditure deduction u/s 37(1) for contribution made by assessee (a CA firm) to the Pune branch of Institute of Chartered Accountants of India ('ICAI') towards construction

Nov 21,2016

ITAT: ‘Unpaid service tax’ though not routed through P&L a/c triggers Sec 43B disallowance

Ahmedabad ITAT upholds Sec 43B disallowance on unpaid service tax for AY 2006-07 in case of an Electricity transmission company (‘assessee’); Rejects  assessee’s stand that since service tax payable was

Nov 21,2016