Direct tax Weekly Digest

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)

Weekly Digest #24 09 Jun to 15 Jun 2024 5 Rulings

High Court HC: Dismisses writ qua challenge to assumption of jurisdiction to reassess, endorses statutory appellate remedy

Jun 15, 2024

In Favour of : Revenue
Citation Number : TS-409-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Sec.40(a)(i) disallowance on payment without TDS unsustainable, sans TDS provision at time of payment

Jun 15, 2024

In Favour of : Assessee
Citation Number : TS-413-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Discretion to choose share valuation methodology rests with Assessee, AO interfere if report fundamentally erroneous

Jun 15, 2024

In Favour of : Assessee
Citation Number : TS-420-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Deletes Sec.43B addition for unpaid TCS not routed through P&L Account & neither claimed as deduction

Jun 15, 2024

In Favour of : Assessee
Citation Number : TS-408-ITAT-2024(ASR)

Income tax Appellate Tribunal ITAT: Date of possession of property to be considered as purchase date for Sec.54 deduction

Jun 15, 2024

In Favour of : Assessee
Citation Number : TS-407-ITAT-2024(Mum)

Weekly Digest #23 02 Jun to 08 Jun 2024 4 Rulings

High Court HC: Reassessment beyond four years sans 'fresh tangible material' invalid; Distinguishes SC’s PVS beedis ruling

Jun 08, 2024

In Favour of : Assessee
Citation Number : TS-388-HC-2024(DEL)

High Court HC: Sec.263 revision order on capital gain exemption justified due to lack of inquiry by AO.

Jun 08, 2024

In Favour of : Revenue
Citation Number : TS-383-HC-2024(CAL)

Income tax Appellate Tribunal ITAT: Sec.40(a)(ia) disallowance unwarranted on depreciation claim on capitalized software cost; Follows Tally Solutions

Jun 08, 2024

In Favour of : Assessee
Citation Number : TS-392-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Sans revenue's application of mind, reassessment proceedings based on Investigation Wing report invalid

Jun 08, 2024

In Favour of : Assessee
Citation Number : TS-400-ITAT-2024(DEL)

Weekly Digest #22 26 May to 01 Jun 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Suo-moto offered salary cost of seconded employees to tax, penalty unsustainable; Relies on Abbey Business

Jun 01, 2024

In Favour of : Assessee
Citation Number : TS-375-ITAT-2024(Bang)

Income tax Appellate Tribunal ITAT: Quashes Sec.148 notice in absence of proper service to Assessee’s E-mail within limitation

Jun 01, 2024

In Favour of : Assessee
Citation Number : TS-372-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Condones delay of 2500 days due to availment of alternative remedy; Delay beyond Assesee's control 'Sufficient cause'

Jun 01, 2024

In Favour of : Assessee
Citation Number : TS-363-ITAT-2024(Bang)

High Court HC: Voluntary disclosure of concealment will not absolve Assessee from penalty proceedings

Jun 01, 2024

In Favour of : Revenue
Citation Number : TS-376-HC-2024(CAL)

Weekly Digest #21 19 May to 25 May 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Restriction of Sec.80G(4) not applicable to Sec.80G(2)(a)(iiif) donation; 80GGA deduction clubbed with Sec80G in ITR allowable

May 25, 2024

In Favour of : Assessee
Citation Number : TS-359-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: CRM Services neither FTS nor royalty

May 25, 2024

In Favour of : Assessee
Citation Number : TS-351-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Exparte order under Sec.250 set aside basis adjournment application overlooked

May 25, 2024

In Favour of : Assessee
Citation Number : TS-347-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Ad hoc disallowance of expenses without documentary evidence to be based on scientific & rational method

May 25, 2024

In Favour of : Assessee
Citation Number : TS-358-ITAT-2024(Bang)

Weekly Digest #20 12 May to 18 May 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Indication of disallowance in tax audit sine qua non to invoke Sec.143(1)(a)(iv)

May 18, 2024

In Favour of : Assessee
Citation Number : TS-322-ITAT-2024(PUN)

Income tax Appellate Tribunal ITAT: Rules on applicability of Sec.194LBC on 'Excess Interest Spread' paid by securitisation trust

May 18, 2024

In Favour of : Assessee
Citation Number : TS-331-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Rectification order passed on non-existent entity despite knowledge of merger, non-est

May 18, 2024

In Favour of : Assessee
Citation Number : TS-325-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Upholds partial rejection of books due to closing stock discrepancies and findings on varied gross profit margins

May 18, 2024

In Favour of : Revenue
Citation Number : TS-337-ITAT-2024(DEL)

Weekly Digest #19 05 May to 11 May 2024 4 Rulings

Income tax Appellate Tribunal ITAT: Deletes 271(1)(c) penalty sans specific charge; Rejects assessment finality plea

May 11, 2024

In Favour of : Assessee
Citation Number : TS-314-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Deletes Sec.68 addition as unjustified basis director's statement retracted subsequently

May 11, 2024

In Favour of : Assessee
Citation Number : TS-306-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Holds loss on forward contracts & forward premium account non-speculative

May 11, 2024

In Favour of : Assessee
Citation Number : TS-318-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Banks trading in securities a business activity; Rejects mere classification as investments for disallowance

May 11, 2024

In Favour of : Assessee
Citation Number : TS-321-ITAT-2024(Ahd)

Weekly Digest #18 28 Apr to 04 May 2024 4 Rulings

High Court HC: Reassessment disallowing provision for prior period interest unjustified sans 'fresh tangible material'

May 04, 2024

In Favour of : Assessee
Citation Number : TS-290-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Sec. 244A interest on increased refund eligible from start of AY

May 04, 2024

In Favour of : Assessee
Citation Number : TS-288-ITAT-2024(Kol)

High Court HC: No time-limit prescribed for filing compounding application

May 04, 2024

In Favour of : Assessee
Citation Number : TS-300-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Sec.68 addition unjustified basis lender's source accepted by AO

May 04, 2024

In Favour of : Assessee
Citation Number : TS-299-ITAT-2024(DEL)

Weekly Digest #17 21 Apr to 27 Apr 2024 5 Rulings

High Court HC: Absence of Sec. 9(1)(vii) conditions, routine business expenditure reimbursement not FTS

Apr 27, 2024

In Favour of : Assessee
Citation Number : TS-271-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Unrecorded asset prerequisite for Sec. 69 trigger; Sec. 69B addition unjustified sans expenditure proof

Apr 27, 2024

In Favour of : Assessee
Citation Number : TS-272-ITAT-2024(Mum)

High Court HC: Condones 1257 days delay in Form 10B filing due to professional’s oversight & inadvertent error

Apr 27, 2024

In Favour of : Assessee
Citation Number : TS-278-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Higher depreciation allowable on leasing machinery since accepted as mode of business

Apr 27, 2024

In Favour of : Assessee
Citation Number : TS-281-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: Land acquisition compensation under State Acts taxable; Rejects ‘Sec.96 RFCTLARR Act’ exemption plea

Apr 27, 2024

In Favour of : Assessee
Citation Number : TS-282-ITAT-2024(CHNY)

Weekly Digest #16 14 Apr to 20 Apr 2024 5 Rulings

High Court HC: Curtains are down for claims pertaining to pre-resolution plan approval period, once approved

Apr 20, 2024

In Favour of : Assessee
Citation Number : TS-268-HC-2024(DEL)

High Court HC: Purchases’ disallowance unjustified sans proof of bogus purchases & rejection of sales

Apr 20, 2024

In Favour of : Assessee
Citation Number : TS-269-HC-2024(BOM)

High Court HC: ITSC’s jurisdiction ousted sans fulfilment of full and true disclosure test

Apr 20, 2024

In Favour of : Revenue
Citation Number : TS-255-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Section 80G renewal application filed by existing trust within Sept 30, 2023 is within time

Apr 20, 2024

In Favour of : Assessee
Citation Number : TS-267-ITAT-2024(CHNY)

Income tax Appellate Tribunal ITAT: Penalty order for ‘misreporting’ of income unjustified when notice is for ‘under-reporting’

Apr 20, 2024

In Favour of : Assessee
Citation Number : TS-260-ITAT-2024(HYD)

Weekly Digest #15 07 Apr to 13 Apr 2024 7 Rulings

High Court HC: Quashes reassessment proceedings initiated basis ‘set aside revisionary order’ of subsequent AY

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-239-HC-2024(BOM)

High Court HC: Valuation cannot be rejected basis inconsistency between projected & actual figures

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-247-HC-2024(DEL)

High Court HC: Upholds NASSCOM’s exemption based on principle of mutuality

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-248-HC-2024(DEL)

High Court HC: Full & true disclosure test met; Judicial review of ITSC order impermissible

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-249-HC-2024(DEL)

High Court HC: Failure to request for personal hearing through prescribed mode not fatal

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-251-HC-2024(MAD)

High Court HC: Final order passed under Faceless Assessment sans issuance of draft order, unsustainable

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-250-HC-2024(MAD)

Income tax Appellate Tribunal ITAT: Investment company’s share value dependent upon underlying operating company’s value; NAV method appropriate

Apr 13, 2024

In Favour of : Assessee
Citation Number : TS-242-ITAT-2024(Mum)

Weekly Digest #14 31 Mar to 06 Apr 2024 5 Rulings

High Court HC: Reassessment in wife's name invalid where alleged investment made by husband

Apr 06, 2024

In Favour of : Assessee
Citation Number : TS-227-HC-2024(BOM)

High Court HC: Events occurring after balance sheet date relevant to ascertain accrual in current year

Apr 06, 2024

In Favour of : Assessee
Citation Number : TS-236-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Pre-demonetisation sales cannot be deemed inflated sans discrepancy in records

Apr 06, 2024

In Favour of : Assessee
Citation Number : TS-150-ITAT-2024(DEL)

Income tax Appellate Tribunal ITAT: No income accrual in India from offshore property transfer; Follows Ishikawajma Harima judgment

Apr 06, 2024

In Favour of : Assessee
Citation Number : TS-238-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Income from running marriage halls incidental to main object, Sec.11 exemption allowable

Apr 06, 2024

In Favour of : Assessee
Citation Number : TS-233-ITAT-2024(CHNY)

Weekly Digest #13 24 Mar to 30 Mar 2024 5 Rulings

High Court HC: 'Change of opinion' inbuilt check against reassessment; Live link between material & belief sine qua non

Mar 30, 2024

In Favour of : Assessee
Citation Number : TS-221-HC-2024(BOM)

High Court HC: Rejects reassessment as investor not involved in sham transaction alleged against JM Financial

Mar 30, 2024

In Favour of : Assessee
Citation Number : TS-225-HC-2024(BOM)

High Court HC: Automatic release of seized asset not mandatory on expiry of 120 days

Mar 30, 2024

In Favour of : Revenue
Citation Number : TS-214-HC-2024(ALL)

Income tax Appellate Tribunal ITAT: Services by partner's relative not doubted; Salary allowable as neither excessive nor unreasonable

Mar 30, 2024

In Favour of : Assessee
Citation Number : TS-224-ITAT-2024(Ahd)

Income tax Appellate Tribunal ITAT: Disallowance of Chapter VI-A deductions in ITR-processing effective from 2021, not retrospective

Mar 30, 2024

In Favour of : Assessee
Citation Number : TS-222-ITAT-2024(NAG)

Weekly Digest #12 17 Mar to 23 Mar 2024 5 Rulings

High Court HC: Ex gratia bonus in excess of ‘statutory bonus’ allowable as business expenditure

Mar 23, 2024

In Favour of : Assessee
Citation Number : TS-192-HC-2024(BOM)

High Court HC: Quashes assessment order passed on non-existing company; Follows Maruti over Mahagun judgment

Mar 23, 2024

In Favour of : Assessee
Citation Number : TS-200-HC-2024(MAD)

High Court HC: Taxing surrendered income sans incriminating material 'debatable', outside scope of Sec.154

Mar 23, 2024

In Favour of : Assessee
Citation Number : TS-204-HC-2024(GUJ)

High Court HC: Upholds revision over lack of inquiry on loan transactions despite DDIT (Inv.) report

Mar 23, 2024

In Favour of : Revenue
Citation Number : TS-209-HC-2024(DEL)

Income tax Appellate Tribunal ITAT: Sans accrual, rejects taxability of notional interest; Follows ‘real income’ theory

Mar 23, 2024

In Favour of : Assessee
Citation Number : TS-193-ITAT-2024(Mum)

Weekly Digest #11 10 Mar to 16 Mar 2024 5 Rulings

High Court HC: Quashes reassessment on non-existent firm, Revenue was informed of conversion to company

Mar 16, 2024

In Favour of : Assessee
Citation Number : TS-160-HC-2024(MAD)

High Court HC: Quashes reassessment notice issued basis accepted IDS declaration, finds change of opinion

Mar 16, 2024

In Favour of : Assessee
Citation Number : TS-188-HC-2024(BOM)

High Court HC: Confirms attachment of property for tax recovery; Explains third party's right

Mar 16, 2024

In Favour of : Revenue
Citation Number : TS-183-HC-2024(MAD)

High Court HC: Disallows refund adjustment sans Sec. 245 intimation and non-adjudication of stay application

Mar 16, 2024

In Favour of : Assessee
Citation Number : TS-172-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Beneficial owner of FCCD interest eligible for treaty benefit; Rejects 'back-to-back transactions' plea

Mar 16, 2024

In Favour of : Assessee
Citation Number : TS-157-ITAT-2024(CHNY)

Weekly Digest #10 03 Mar to 09 Mar 2024 6 Rulings

High Court HC: Income from leasing equipment for mineral oil exploration not royalty since covered by Sec.44BB

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-164-HC-2024(DEL)

High Court HC: Mere "Yes" by PCIT while granting approval for reassessment proceedings, insufficient

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-169-HC-2024(DEL)

High Court HC: Absent perversity, substantial question of law do not arise on ITAT's factual finding

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-170-HC-2024(MP)

Income tax Appellate Tribunal ITAT: US hotelier's Marketing Contribution & Reservation Fees, not royalty; Distinguishes Marriott ruling

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-162-ITAT-2024(Mum)

Income tax Appellate Tribunal ITAT: Absent cogent material, LTCG not bogus despite drastic spike in share price

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-829-ITAT-2023(DEL)

Income tax Appellate Tribunal ITAT: Allows Assessee to approach CBDT where ITR-5 mistakenly filed instead of ITR-7

Mar 09, 2024

In Favour of : Assessee
Citation Number : TS-155-ITAT-2024(Ahd)

Weekly Digest #9 25 Feb to 02 Mar 2024 5 Rulings

High Court HC: Revision invalid where issues enquired in assessment & no error/prejudice pointed by CIT

Mar 02, 2024

In Favour of : Assessee
Citation Number : TS-149-HC-2024(DEL)

High Court HC: Quashes Sec.148 notice issued beyond 3 years over improper sanction; Follows Siemens Financial

Mar 02, 2024

In Favour of : Assessee
Citation Number : TS-132-HC-2024(BOM)

High Court HC: Conducting agricultural operations no prerequisite to qualify for agricultural land exemption

Mar 02, 2024

In Favour of : Assessee
Citation Number : TS-131-HC-2024(BOM)

Income tax Appellate Tribunal ITAT: Rejects NAV method for valuing Optionally Convertible Preference Shares under Sec.56(2)(viib)

Feb 27, 2024

In Favour of : Assessee
Citation Number : TS-124-ITAT-2024(RAI)

Income tax Appellate Tribunal ITAT: Directs DRP to examine DAPE of US Co., not considered in prior years

Mar 02, 2024

In Favour of : Both, Partially
Citation Number : TS-148-ITAT-2024(DEL)