Direct tax Weekly Digest

Weekly Digest #3 12 Jan to 18 Jan 2025 5 Rulings

High Court HC: Directs processing the condonation application for delayed ITRs pending over 5 years

Jan 18, 2025

In Favour of : Assessee
Citation Number : TS-33-HC-2025(RAJ)

Income tax Appellate Tribunal ITAT: Assessment without Sec.153D approval void; Sec.153D approval for “each assessment year” separately

Jan 18, 2025

In Favour of : Assessee
Citation Number : TS-32-ITAT-2025(RAI)

Income tax Appellate Tribunal ITAT: Reassessment basis DRI report alleging unaccounted foreign remittances valid; Affirms ‘reasons to believe’ on tangible material sufficient

Jan 18, 2025

In Favour of : Assessee
Citation Number : TS-977-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Deletes disallowance u/s 40(a)(ia) on account of reimbursement of expenses

Jan 18, 2025

In Favour of : Assessee
Citation Number : TS-14-ITAT-2025(Mum)

Income tax Appellate Tribunal ITAT: Revision order on issues not subject matter of appellate proceedings, is valid

Jan 18, 2025

In Favour of : Revenue
Citation Number : TS-24-ITAT-2025(RAI)

Weekly Digest #2 05 Jan to 11 Jan 2025 4 Rulings

Income tax Appellate Tribunal ITAT: Non-issuance of Sec.143(2) notice to amalgamated company ‘foundational infirmity’, fatal to assessment

Jan 11, 2025

In Favour of : Assessee
Citation Number : TS-12-ITAT-2025(DEL)

Income tax Appellate Tribunal ITAT: Following Galileo ruling, upholds 15% attribution of revenue to UK based co.'s PE in India

Jan 11, 2025

In Favour of : Assessee
Citation Number : TS-974-ITAT-2024(DEL)

High Court HC: Revenue authorities cannot withhold refunds due to ‘procedural hitch’; Unnecessary delay affects public-exchequer

Jan 11, 2025

In Favour of : Assessee
Citation Number : TS-973-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Quashes revisional-order citing improper service of SCN and violation of natural justice

Jan 11, 2025

In Favour of : Assessee
Citation Number : TS-07-ITAT-2025(Mum)

Weekly Digest #1 29 Dec to 04 Jan 2025 4 Rulings

Income tax Appellate Tribunal ITAT: Deletes penalty for delayed tax audit report submission; Accepts Assessee’s improper professional advice plea

Jan 04, 2025

In Favour of : Assessee
Citation Number : TS-963-ITAT-2024(COCH)

Income tax Appellate Tribunal ITAT: Sec. 271(1)(c) penalty leviable on failure to disclose capital gain income by non-resident; Remits matter

Jan 04, 2025

In Favour of : Revenue
Citation Number : TS-961-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Quashes Sec. 148 notice issued beyond 3 years over improper sanction; Follows Rajeev Bansal

Jan 04, 2025

In Favour of : Assessee
Citation Number : TS-960-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Invocation of Sec. 14A r.w.Rule 8D bad in law sans satisfaction recorded by AO

Jan 04, 2025

In Favour of : Assessee
Citation Number : TS-964-ITAT-2024(Mum)

Weekly Digest #50 22 Dec to 28 Dec 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Loss on forex loan repayment for business expansion allowable u/s 37(1); Rejects Sec. 43A plea

Dec 28, 2024

In Favour of : Assessee
Citation Number : TS-947-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Quashes reassessment, sans disposal of Assessee’s objection on reassessment; Violative of GKN Driveshaft judgment

Dec 28, 2024

In Favour of : Assessee
Citation Number : TS-945-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Allows Sec. 80P deduction on interest income of cooperative society; Distinguishes Totgars Judgments

Dec 28, 2024

In Favour of : Assessee
Citation Number : TS-944-ITAT-2024(COCH)

Income tax Appellate Tribunal ITAT: Quashes revision against Sec. 57 deduction; Expln 2 to Sec. 263 does not confer unchecked power for revision

Dec 28, 2024

In Favour of : Assessee
Citation Number : TS-948-ITAT-2024(JODH)

Weekly Digest #49 15 Dec to 21 Dec 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Allows Sec. 80IA deduction on ‘market value’ of rail system development; Follows Jindal Steel & Power

Dec 21, 2024

In Favour of : Assessee
Citation Number : TS-932-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Deletes addition on capital advance refund; Assessee discharged primary onus, despite disparity in receiver & payer

Dec 21, 2024

In Favour of : Assessee
Citation Number : TS-930-ITAT-2024(Ahd)

Income tax Appellate Tribunal ITAT: Dismisses Revenue’s appeal having low tax effect, in view of CBDT’s revised monitory limit of Rs. 60 Lacs

Dec 21, 2024

In Favour of : Assessee
Citation Number : TS-915-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Denies Sec. 11 exemption, delay in filing return u/s 139(4) deadline; Remits back for denovo adjudication

Dec 21, 2024

In Favour of : Revenue
Citation Number : TS-931-ITAT-2024(DEL)

Weekly Digest #48 08 Dec to 14 Dec 2024 5 Rulings

Income tax Appellate Tribunal ITAT: No TDS liability u/s 193/194A on acquisition of 'right to receive' sans borrower-lender relationship

Dec 14, 2024

In Favour of : Assessee
Citation Number : TS-892-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Deletes penalty for delayed tax audit report submission, Assessee unaware about tax audit due date

Dec 14, 2024

In Favour of : Assessee
Citation Number : TS-891-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Allows deduction u/s 80P on dividend received from investment in co-operative bank; Follows Mavilayi Service

Dec 14, 2024

In Favour of : Assessee
Citation Number : TS-912-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Grants Sec. 80IA(4) benefit to sub-contractor for civil construction project, financial & entrepreneurial risks borne by Developer

Dec 14, 2024

In Favour of : Assessee
Citation Number : TS-893-ITAT-2024(HYD)

Income tax Appellate Tribunal ITAT: No addition can be made for issues not forming part of reasons recorded for reassessment; Relies on Jet Airways

Dec 14, 2024

In Favour of : Assessee
Citation Number : TS-905-ITAT-2024(Mum)

Weekly Digest #47 24 Nov to 30 Nov 2024 5 Rulings

High Court HC: Broken period interest allowable as deduction, if securities held as stock-in-trade sans Revenue loss

Nov 30, 2024

In Favour of : Assessee
Citation Number : TS-868-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: No TDS on payments to State Government; Disallowance u/s 40(a)(ia) unwarranted

Nov 30, 2024

In Favour of : Both, Partially
Citation Number : TS-872-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Quashes Sec. 153C assessment, ‘satisfaction note’ devoid of cogent incriminating material & independent investigation

Nov 30, 2024

In Favour of : Assessee
Citation Number : TS-875-ITAT-2024(DEL)

High Court HC: Upholds quashing of reassessment proceedings initiated based on Revenue’s change of opinion

Nov 30, 2024

In Favour of : Assessee
Citation Number : TS-869-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: Quashes Sec.153C assessment sans incriminating material & independent corroboration with alleged undisclosed cash receipts

Nov 29, 2024

In Favour of : Assessee
Citation Number : TS-870-ITAT-2024(Ind)

Weekly Digest #46 17 Nov to 23 Nov 2024 4 Rulings

High Court HC: Quashes reassessment, investor not in sham transaction, no intelligible nexus between reasons & belief

Nov 23, 2024

In Favour of : Assessee
Citation Number : TS-859-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: Arbitration award for breach of contractual obligation, business income; Not taxable sans PE

Nov 23, 2024

In Favour of : Assessee
Citation Number : TS-857-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: No make available clause satisfied under Article 12(4), India-US DTAA on sale of copyrighted article

Nov 23, 2024

In Favour of : Assessee
Citation Number : TS-851-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Denial of FTC unsustainable, procedural compliance stands satisfied by submission of Form 67

Nov 23, 2024

In Favour of : Assessee
Citation Number : TS-860-ITAT-2024(Kol)

Weekly Digest #45 10 Nov to 16 Nov 2024 4 Rulings

High Court HC: TDS default penalty time barred; Limitation reckonable from reference date, not SCN

Nov 16, 2024

In Favour of : Assessee
Citation Number : TS-842-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Stamp duty value on sale agreement date relevant, agreement & registration date differs; Deletes Sec.43CA addition

Nov 16, 2024

In Favour of : Assessee
Citation Number : TS-841-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Reassessment u/s 148 sans proper reasons, invalid; Independent investigation of unsecured loans by AO mandatory.

Nov 16, 2024

In Favour of : Assessee
Citation Number : TS-844-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Allows Sec.80P deduction on interest income of cooperative society; Follows Mavilayi Service Co-op Bank ruling

Nov 16, 2024

In Favour of : Assessee
Citation Number : TS-843-ITAT-2024(PAN)

Weekly Digest #44 03 Nov to 09 Nov 2024 5 Rulings

Income tax Appellate Tribunal ITAT: Allows FTC to AZB on tax withheld in Japan & Nepal on professional legal fees; Follows Amarchand ruling

Nov 09, 2024

In Favour of : Assessee
Citation Number : TS-819-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Quashes penalty u/s270A sans categorical finding of ‘mis-reporting’ or under-reporting’ of income

Nov 09, 2024

In Favour of : Assessee
Citation Number : TS-812-ITAT-2024(Mum)

High Court HC: Assessee entitled to interest waiver determined in post-search assessment; Quashes Form3 under DTVSV

Nov 09, 2024

In Favour of : Assessee
Citation Number : TS-808-HC-2024(KAR)

Income tax Appellate Tribunal ITAT: Depreciation on goodwill allowable arising from approved amalgamation scheme; Follows Urmin Marketing

Nov 09, 2024

In Favour of : Assessee
Citation Number : TS-821-ITAT-2024(Ahd)

High Court HC: Sec.153C proceedings commences from date seized material are handed over to AO; Upholds assessment

Nov 09, 2024

In Favour of : Revenue
Citation Number : TS-816-HC-2024(TEL)

Weekly Digest #43 20 Oct to 26 Oct 2024 5 Rulings

High Court HC: Reprimands CIT(A) over non-adjudication of appeal pending for more than 8 years; Directs disposal within 3 months

Oct 26, 2024

In Favour of : Assessee
Citation Number : TS-793-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: DSIR certifies Sec.35(2AB) scientific expense, disallowance of deduction or further scrutiny not valid by AO

Oct 26, 2024

In Favour of : Assessee
Citation Number : TS-794-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Allows FTC to Amarchand Mangaldas on tax withheld in Japan on professional legal fees

Oct 26, 2024

In Favour of : Assessee
Citation Number : TS-790-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Sales, marketing services rendered abroad by NR-agent not FTS, not liable to TDS

Oct 26, 2024

In Favour of : Assessee
Citation Number : TS-787-ITAT-2024(CHNY)

High Court HC: Income correctly categorized as ‘income from business’, principle of consistency to be followed

Oct 26, 2024

In Favour of : Assessee
Citation Number : TS-781-HC-2024(BOM)

Weekly Digest #42 13 Oct to 19 Oct 2024 5 Rulings

Income tax Appellate Tribunal ITAT: Prize winning from unsold lottery tickets taxable as business income, not income from other sources

Oct 19, 2024

In Favour of : Assessee
Citation Number : TS-761-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Upholds Sec.153A assessment, Assessee’s failure to provide ‘no objection waiver form’ for verifying undisclosed bank account

Oct 19, 2024

In Favour of : Revenue
Citation Number : TS-656-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Revenue appeal 'infructuous' sans remedy against CIT(A) order, as 'Appeal Effect' order grants exemption u/s10(26AAB)

Oct 19, 2024

In Favour of : Assessee
Citation Number : TS-777-ITAT-2024(LKW)

Income tax Appellate Tribunal ITAT: Deletes Sec.40(a)(ia) disallowance on payment towards sales commission to US subsidiary; Rejects taxability as FTS

Oct 19, 2024

In Favour of : Assessee
Citation Number : TS-773-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Quashes reassessment sans Sec.143(2) notice issued prior to finalisation of reassessment order

Oct 19, 2024

In Favour of : Assessee
Citation Number : TS-771-ITAT-2024(SUR)

Weekly Digest #41 06 Oct to 12 Oct 2024 5 Rulings

Income tax Appellate Tribunal ITAT: Appeal dismissal over non-payment of tax despite non-applicability of Sec.249(4)(b) as per Form 35 invalid

Oct 12, 2024

In Favour of : Assessee
Citation Number : TS-753-ITAT-2024(Ahd)

Income tax Appellate Tribunal ITAT: Capital reserve created on amalgamation, capital in nature, not taxable as perquisite u/s 28(iv)

Oct 12, 2024

In Favour of : Assessee
Citation Number : TS-754-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Technical inspection services, scanning of offshore pipeline under sea, not FTS sans ‘Make available’ fulfillment

Oct 12, 2024

In Favour of : Assessee
Citation Number : TS-742-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Deletes unexplained share premium addition, Assessee established source of funds & genuineness of investment

Oct 12, 2024

In Favour of : Assessee
Citation Number : TS-738-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Non-initiation of Sec.270A, no ground to initiate revisionary proceedings

Oct 12, 2024

In Favour of : Assessee
Citation Number : TS-752-ITAT-2024(CHNY)

Weekly Digest #40 29 Sep to 05 Oct 2024 4 Rulings

High Court HC: Upholds Sec.80-IA deduction towards port development post agreement with State nodal agency

Oct 05, 2024

In Favour of : Assessee
Citation Number : TS-728-HC-2024(CAL)

Income tax Appellate Tribunal ITAT: Disallowance u/Sec.40A(3)/40(a)(ia) unwarranted, where profits estimated post rejection of books of accounts

Oct 05, 2024

In Favour of : Assessee
Citation Number : TS-732-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Quashes penalty as Revenue failed to point specific action u/Sec.270A(9) for imposition of penalty

Oct 05, 2024

In Favour of : Assessee
Citation Number : TS-726-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Block period for Sec.153C proceedings begins from receipt of seized material by AO; Quashes Sec.153 proceedings

Oct 05, 2024

In Favour of : Assessee
Citation Number : TS-731-ITAT-2024(CHNY)

Weekly Digest #39 22 Sep to 28 Sep 2024 4 Rulings

High Court HC: Amendment to Sec.14A prospective in nature, follows Era Infrastructure, reprimands ITAT

Sep 28, 2024

In Favour of : Assessee
Citation Number : TS-718-HC-2024(GAUH)

High Court HC: Reiterates legal position on 'substantial question of law', no dispute over genuineness of loss

Sep 28, 2024

In Favour of : Assessee
Citation Number : TS-713-HC-2024(KAR)

High Court HC: Approval u/s10(23C) cannot be denied sans specific findings on objects qua ‘educational activities’

Sep 28, 2024

In Favour of : Assessee
Citation Number : TS-708-HC-2024(CHAT)

Income tax Appellate Tribunal ITAT: Infrastructure devpt. co. ineligible for depreciation u/s32 on toll roads sans ‘ownership’; Follows North Karnataka

Sep 28, 2024

In Favour of : Revenue
Citation Number : TS-716-ITAT-2024(Mum)

Weekly Digest #38 15 Sep to 21 Sep 2024 4 Rulings

High Court HC: Bad debts deduction u/s36(1)(viia) allowable, adjusted in subsequent AY, Sec.36(1)(vii) & 36(1)(viia) distinct & independent

Sep 21, 2024

In Favour of : Assessee
Citation Number : TS-700-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Condones 746 days delay, mischaracterisation of expenditure, rectified post professional advice ‘sufficient cause’ to condone

Sep 21, 2024

In Favour of : Assessee
Citation Number : TS-698-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Affirms Sec.80IA deduction claimed by government contractor through revised return

Sep 21, 2024

In Favour of : Assessee
Citation Number : TS-687-ITAT-2024(LKW)

Income tax Appellate Tribunal ITAT: Non-adjudication of issues on merits falling foul of Section 250(6), CIT(A) to pass speaking order

Sep 21, 2024

In Favour of : Assessee
Citation Number : TS-694-ITAT-2024(Bang)

Weekly Digest #37 08 Sep to 14 Sep 2024 5 Rulings

Income tax Appellate Tribunal ITAT: Appeal filed by ex-director of struck-off company, not maintainable sans ‘locus standi’

Sep 14, 2024

In Favour of : Revenue
Citation Number : TS-682-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Non consideration of Jurisdictional Court ruling, 'mistake apparent from record'; Rectifiable u/s154

Sep 14, 2024

In Favour of : Revenue
Citation Number : TS-683-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: US Broadcasting company's TV Channel distribution revenue, not 'royalty', business income as per MAP

Sep 14, 2024

In Favour of : Assessee
Citation Number : TS-670-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Rules on issues of disallowance of provision of bad & doubtful debts, prepaid finance charges etc.

Sep 14, 2024

In Favour of : Both, Partially
Citation Number : TS-669-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Quashes revision on prior period depreciation due to re-classification of assets sans pecuniary loss to Revenue

Sep 14, 2024

In Favour of : Assessee
Citation Number : TS-681-ITAT-2024(Ahd)

Weekly Digest #36 01 Sep to 07 Sep 2024 5 Rulings

High Court HC: Transfer of jurisdiction valid as incriminating documents seized from different jurisdiction

Sep 07, 2024

In Favour of : Revenue
Citation Number : TS-650-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: Maintenance expenditure on residential property deductible u/s 57; Cites direct nexus with FDR interest

Sep 07, 2024

In Favour of : Assessee
Citation Number : TS-643-ITAT-2024(Ahd)

Income tax Appellate Tribunal ITAT: Penalty levied merely as Assessee's contention not acceptable by AO untenable

Sep 07, 2024

In Favour of : Assessee
Citation Number : TS-637-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Brokerage for recovery of outstanding investment deductible u/Sec.57; Proportionate disallowance impermissible

Sep 07, 2024

In Favour of : Assessee
Citation Number : TS-655-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Upholds revision on Sec.11 exemption over AO’s failure to inquire discrepancy outlined in Survey report

Sep 07, 2024

In Favour of : Revenue
Citation Number : TS-648-ITAT-2024(Ahd)

Weekly Digest #35 25 Aug to 31 Aug 2024 5 Rulings

Income tax Appellate Tribunal ITAT: Deemed dividend u/Sec.2(22)(e) not attracted in absence of 'actual' payment

Aug 31, 2024

In Favour of : Assessee
Citation Number : TS-633-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Bank’s income from securities held as stock-in-trade to be excluded for Sec.14A disallowances

Aug 31, 2024

In Favour of : Assessee
Citation Number : TS-629-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Upholds JN Tata endowment’s Sec.11 exemption on loan scholarship for overseas education

Aug 31, 2024

In Favour of : Assessee
Citation Number : TS-625-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Subsidy via VAT refund from Tamil Nadu Govt. towards Investment Promotion Subsidy ‘Capital receipt’.

Aug 31, 2024

In Favour of : Assessee
Citation Number : TS-622-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Pre-demonetisation cash sales cannot be deemed inflated sans rejection of books of accounts

Aug 31, 2024

In Favour of : Assessee
Citation Number : TS-630-ITAT-2024(DEL)

Weekly Digest #34 18 Aug to 24 Aug 2024 4 Rulings

High Court HC: Directors prosecution u/Sec.276B untenable for delayed payment of taxes sans notice u/Sec.2(35) treating as ‘principal officers’

Aug 24, 2024

In Favour of : Assessee
Citation Number : TS-612-HC-2024(BOM)

High Court HC: Group company not taxable under Sec.68, undisclosed income ‘taxed’ in hands of investor company

Aug 24, 2024

In Favour of : Assessee
Citation Number : TS-608-HC-2024(DEL)

High Court HC: Summoning order passed contrary to law, no prima facie reason for cognizance recorded by lower court

Aug 24, 2024

In Favour of : Assessee
Citation Number : TS-606-HC-2024(ALL)

High Court HC: Quashes reassessment proceedings being contrary to notified mandatory procedure u/s 151A; Follows Hexaware

Aug 24, 2024

In Favour of : Assessee
Citation Number : TS-600-HC-2024(BOM)