Direct tax Weekly Digest

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)

Weekly Digest #33 11 Aug to 17 Aug 2024 5 Rulings

High Court HC: Objections to issuance of notice u/Sec.148 invalid in accordance with Sec.292BB

Aug 17, 2024

In Favour of : Revenue
Citation Number : TS-595-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: Expenditure in foreign currency for technical services outside India, not part of ‘export turnover’ u/Sec.10AA

Aug 17, 2024

In Favour of : Assessee
Citation Number : TS-592-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Professional fees paid by KPMG to independent consultant not FTS or business income sans PE

Aug 17, 2024

In Favour of : Assessee
Citation Number : TS-594-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Advertisement expenses claimed by Hospital violates Indian Medical Council Regulations, 2002

Aug 17, 2024

In Favour of : Revenue
Citation Number : TS-587-ITAT-2024(VIZ)

Income tax Appellate Tribunal ITAT: Interest income ‘attributable’ to carrying on ‘cottage business’, allowable as Sec.80P(2) deduction

Aug 17, 2024

In Favour of : Assessee
Citation Number : TS-591-ITAT-2024(CHNY)

Weekly Digest #32 04 Aug to 10 Aug 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Deletes penalty u/s 271(1)(c) as revised income accepted during assessment; Relies on Pushpendra Surana

Aug 10, 2024

In Favour of : Assessee
Citation Number : TS-573-ITAT-2024(JPR)

Income tax Appellate Tribunal ITAT: Refuses to condone 359 days delay, lacked sufficient cause, Assessee acted negligently

Aug 10, 2024

In Favour of : Revenue
Citation Number : TS-565-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Revenue not entitled to change share valuation method adopted by Assessee; Deletes addition u/s56(2)(viib)

Aug 10, 2024

In Favour of : Assessee
Citation Number : TS-570-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Disallowance u/Sec.14A cannot exceed exempt income, partly allows Assessee's appeal

Aug 10, 2024

In Favour of : Assessee
Citation Number : TS-579-ITAT-2024(Mum)

Weekly Digest #31 28 Jul to 03 Aug 2024 5 Rulings

High Court HC: Sets aside reassessment proceedings over disparity between Sec.148A(d) order & Sec.148A(b) notice; Expln 3 to Sec.147 inapplicable

Aug 03, 2024

In Favour of : Assessee
Citation Number : TS-560-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Reference to DVO for roving enquiries without rejecting Assessee’s books not valid; Deletes addition u/s.69

Aug 03, 2024

In Favour of : Assessee
Citation Number : TS-561-ITAT-2024(PUN)

Income tax Appellate Tribunal ITAT: Disallows bad debts provision as irrecoverable from overseas entity sans statutory approval from RBI

Aug 03, 2024

In Favour of : Revenue
Citation Number : TS-559-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: No prejudice to Revenue if audit report submitted on demand, grants exemption u/Sec.12A

Aug 03, 2024

In Favour of : Assessee
Citation Number : TS-526-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Reassessment notice time barred & below prescribed limit as introduced by Finance Act, 2021

Aug 03, 2024

In Favour of : Assessee
Citation Number : TS-542-ITAT-2024(CHNY)

Weekly Digest #30 21 Jul to 27 Jul 2024 5 Rulings

High Court HC: Denial of foreign tax credit to be reconsidered if computation & documents are accepted, remands matter

Jul 27, 2024

In Favour of : Assessee
Citation Number : TS-527-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: State Advocate welfare funds are exempt from application of Central Acts; Allows Sec.11 exemption

Jul 26, 2024

In Favour of : Assessee
Citation Number : TS-533-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Allows discount on ESOP to Axis Bank u/Sec.37(1); Follows Biocon ruling

Jul 27, 2024

In Favour of : Assessee
Citation Number : TS-535-ITAT-2024(Ahd)

High Court HC: Quashes reassessment proceedings for non-compliance with Sec.151A as invalid

Jul 27, 2024

In Favour of : Assessee
Citation Number : TS-530-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Services provided on year-to-year basis, no profit element, 'make available' not satisfied in US DTAA

Jul 27, 2024

In Favour of : Assessee
Citation Number : TS-538-ITAT-2024(DEL)

Weekly Digest #29 14 Jul to 20 Jul 2024 5 Rulings

Supreme Court SC: Affirms HC judgment granting refund of arrears of disability pension, with interest

Jul 15, 2024

In Favour of : Assessee
Citation Number : TS-501-SC-2024

High Court HC: Proceedings deemed complete if order communicated to Assessee; Quashes reassessment as time barred u/Sec.153(2)

Jul 20, 2024

In Favour of : Assessee
Citation Number : TS-520-HC-2024(MN)

Income tax Appellate Tribunal ITAT: Adjudicate on merits against Assessee undergoing liquidation, IBC supersedes Income Tax Act

Jul 20, 2024

In Favour of : Assessee
Citation Number : TS-519-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Appeal order without addressing on merits contrary to Sec.250(6), CIT(A) bound to pass speaking order

Jul 20, 2024

In Favour of : Assessee
Citation Number : TS-510-ITAT-2024(Ahd)

Income tax Appellate Tribunal ITAT: Microfinancing with exorbitant interest rate & profit intent, not charitable activity; Rejects Sec.11 exemption

Jul 20, 2024

In Favour of : Revenue
Citation Number : TS-509-ITAT-2024(CHNY)

Weekly Digest #28 07 Jul to 13 Jul 2024 4 Rulings

Supreme Court SC: Holds software development expenditure for abandoned project as revenue in nature; Dismisses Revenue's SLP

Jul 13, 2024

In Favour of : Assessee
Citation Number : TS-488-SC-2024

Income tax Appellate Tribunal ITAT: Payment towards illegal mining violation of law, penal in nature & not ‘expenditure’ u/Sec.37(1)

Jul 13, 2024

In Favour of : Revenue
Citation Number : TS-497-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Condones 1999days delay on representative's negligence sans Assessee’s knowledge, beyond Assessee’s control 'sufficient cause’

Jul 13, 2024

In Favour of : Assessee
Citation Number : TS-489-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Sec.11 exemption cannot be denied, if registration u/Sec.12AA obtained during pendency of rectification

Jul 13, 2024

In Favour of : Assessee
Citation Number : TS-493-ITAT-2024(DEL)

Weekly Digest #27 30 Jun to 06 Jul 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Fees to German Independent consultant not FTS or business income sans PE; Deletes Sec.40(a)(i) disallowance

Jul 06, 2024

In Favour of : Assessee
Citation Number : TS-479-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Supply of design & engineering services inextricably linked to offshore plant & equipment sale, not FTS

Jul 06, 2024

In Favour of : Assessee
Citation Number : TS-475-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Cancellation of trust registration sans specific violation referred in Explanation of Sec.12AB(4), invalid

Jul 06, 2024

In Favour of : Assessee
Citation Number : TS-458-ITAT-2024(HYD)

Income tax Appellate Tribunal ITAT: Deletes penalty as AO failed to record satisfaction that income surrendered falls within definition of Sec.271AA

Jul 06, 2024

In Favour of : Assessee
Citation Number : TS-480-ITAT-2024(CHANDI)

Weekly Digest #26 23 Jun to 29 Jun 2024 5 Rulings

High Court HC: Sets aside Sec.119(2)(b) order rejecting belated filing of Form10ID; Directs CBDT to provide relevant reports to Assessee

Jun 29, 2024

In Favour of : Assessee
Citation Number : TS-449-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Retrospective provision under Act cannot be presumed to be retrospective, if it alters law as it earlier stood; Deletes 14A disallowance

Jun 29, 2024

In Favour of : Assessee
Citation Number : TS-443-ITAT-2024(Mum)

High Court HC: Reassessment basis audit objections tantamounts to ‘change of opinion’, not permissible; Quashes reassessment proceedings

Jun 29, 2024

In Favour of : Assessee
Citation Number : TS-451-HC-2024(HP)

Income tax Appellate Tribunal ITAT: Sec.153 proceedings reckoned from receipt of seized material & not search date; ‘Inconclusive satisfaction’ vitiates Sec.153C

Jun 29, 2024

In Favour of : Assessee
Citation Number : TS-457-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Excess amount paid over the net asset value is considered as 'Goodwill'; Follows SIMS Securities

Jun 29, 2024

In Favour of : Assessee
Citation Number : TS-459-ITAT-2024(Bang)

Weekly Digest #25 16 Jun to 22 Jun 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Deletes Sec.40A(3) disallowance for cash paid to agents verifiable under Rule 6DD(1).

Jun 22, 2024

In Favour of : Assessee
Citation Number : TS-438-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Quashes reassessment sans foundation material leading to ‘reason to believe’ & information obtained subsequent to reassessment notice

Jun 22, 2024

In Favour of : Assessee
Citation Number : TS-431-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Corpus specific voluntary contribution, ‘capital receipt’, non-taxable regardless of Sec.11 eligibility

Jun 22, 2024

In Favour of : Assessee
Citation Number : TS-439-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Interest income earned from investment with co-operative bank, not eligible for deduction u/s80P(2)(d); Follows Totgars

Jun 22, 2024

In Favour of : Both, Partially
Citation Number : TS-366-ITAT-2024(Bang)