ITAT: Upholds penalty u/s 271(1)(c) on salaried individual for concealing capital gains & director fees

Mumbai ITAT upholds concealment penalty u/s 271(1)(c) on assessee-individual ( a salaried employee) for not disclosing income on account of director's sitting fee (Rs. 4 lakh) and short term capital

Feb 28,2017

ITAT: Loan waiver credited to P&L as 'exceptional item' not 'book-profit' under MAT

Mumbai ITAT rules that loan waiver of Rs. 314 cr., being on capital account, be reduced while computing book profits for the purposes of MAT calculation u/s 115JB for AY

Feb 28,2017

ITAT: Repairs expenses on ‘leasehold premises’ not capital by-default, Sec 32 Explanation application not automatic

Delhi ITAT rules on deductibility of leasehold expenses in case of assessee (running resorts and restaurants) for AY 2008-09; During relevant AY, assessee incurred civil, interior works expenditure, electrical works

Feb 27,2017

ITAT: Third Member allows 'additional depreciation' on windmill; Sec 32(1)(iia) amendment of 2012 applicable retrospectively

Pune ITAT third member  rules that  process of generation of electricity through windmill amounts  to ‘manufacture or production of article or thing’ as contemplated u/s 32(1)(iia),   allows assessee’s ‘additional depreciation

Feb 24,2017

ITAT: Self-generated patent transfer triggers taxable capital gains; Rejects taxpayer's unascertainable cost plea

Mumbai ITAT rules that consideration received by assessee-company (engaged in research development, manufacturing, licensing of bio-pharmaceuticals products)  on assignment of indigenously developed patent of a medicine shall be taxable as ‘capital gains’ and

Feb 24,2017

ITAT: Investment vs. stock-in-trade distinction irrelevant for Sec 14A application; Disallows expenditure on strategic investments

Chennai ITAT upholds Sec 14A disallowance for AYs 2011-12 & 2012-13 in respect of strategic investments made by assessee-company in subsidiary / associate companies for business purposes;  ITAT clarifies that

Feb 24,2017

ITAT: Crossing revenue threshold u/s 2(15) cannot result in cancellation of trusts's Sec 12AA registration

Mumbai ITAT quashes DIT(Exemption) order u/s 12AA(3) cancelling registration granted to the assessee (a public charitable trust set up with the objects for promoting development of various arts) u/s 12A

Feb 23,2017

ITAT: Grants major relief; Loan securitization trust a 'valid' & 'revocable' trust, not AOP

Mumbai ITAT accords ‘valid’ trust status to assessee being a trust settled by IL&FS Trust Co. Ltd, rejects Revenue’s stand that it was not a genuine trust and should be

Feb 23,2017

ITAT: Special Bench resolves Sec 206AA vs treaty override controversy in favour of taxpayers

Special Bench (‘SB’) of ITAT rules in favour of taxpayers, holds Sec. 206AA (which provides for higher TDS rate of 20% absent PAN) cannot override beneficial DTAA rates; SB rules

Feb 21,2017

ITAT: Upholds profit-attribution on marketing activities of Indian-PE; ‘Force of attraction’ principle inapplicable

Delhi ITAT attributes 30% of profits to Indian branch (PE) of Singapore-based assessee (engaged in trading of medical equipment) in respect of direct sales in India by head office during

Feb 21,2017