Direct tax Weekly Digest

Weekly Digest #50 12 Dec to 18 Dec 2020 5 Rulings

Income tax Appellate Tribunal ITAT: Upholds turnover-based appropriation of partners' remuneration for computing profits deductible u/s 80-IB

Dec 18, 2020

In Favour of : Revenue
Citation Number : TS-664-ITAT-2020(CHNY)

High Court HC: Conversion of ROM to Iron Ore Concentrate constitutes 'manufacture', EOU eligible for deduction u/s 10B

Dec 17, 2020

In Favour of : Assessee
Citation Number : TS-658-HC-2020(BOM)

Supreme Court SC: Dismisses assessee's SLP challenging HC order restoring Sec.68 addition

Dec 18, 2020

In Favour of : Revenue
Citation Number : TS-661-SC-2020

High Court HC: Ten years of tax holiday u/s 10B begin from year of the first claim

Dec 15, 2020

In Favour of : Assessee
Citation Number : TS-652-HC-2020(KAR)

Income tax Appellate Tribunal ITAT: Restores appeal to CIT(A), jurisdictional challenges to be adjudicated before other grounds

Dec 18, 2020

In Favour of : Assessee
Citation Number : TS-665-ITAT-2020(Bang)

Weekly Digest #49 05 Dec to 11 Dec 2020 6 Rulings

Income tax Appellate Tribunal ITAT:Advances adjusted against DDT paid dividend cannot be taxed u/s 2(22(e)

Dec 11, 2020

In Favour of : Assessee
Citation Number : TS-645-ITAT-2020(CHANDI)

Income tax Appellate Tribunal ITAT:Possession of property and non-cancellation of development agreement, taxable as capital gains

Dec 11, 2020

In Favour of : Both, Partially
Citation Number : TS-644-ITAT-2020(HYD)

High Court HC:Allows appeal withdrawal by Bharat Petroleum on availing benefit of Vivad se Vishwas Scheme

Dec 11, 2020

In Favour of : Assessee
Citation Number : TS-647-HC-2020(BOM)

Income tax Appellate Tribunal ITAT: Different views by HCs not rectifiable as 'mistake apparent from record' u/s 254(2)

Dec 10, 2020

In Favour of : Assessee
Citation Number : TS-639-ITAT-2020(SUR)

Income tax Appellate Tribunal ITAT:CIT(A) bound to decide appeal on merits even where assessee doesn't show up

Dec 10, 2020

In Favour of : Assessee
Citation Number : TS-641-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Deduction u/s 10A allowable as documents get STPI's acceptance; Onus to disprove exports on Revenue

Dec 11, 2020

In Favour of : Assessee
Citation Number : TS-646-ITAT-2020(VIZ)

Weekly Digest #48 28 Nov to 04 Dec 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Directs factual verification of income reflected by erroneous RoI and peculiar conditions

Dec 03, 2020

In Favour of : Assessee
Citation Number : TS-626-ITAT-2020(GAU)

Income tax Appellate Tribunal ITAT:Halvens taxpayer's claim of capital loss, treats daughter as 'joint owner'

Dec 03, 2020

In Favour of : Revenue
Citation Number : TS-625-ITAT-2020(PUN)

Income tax Appellate Tribunal ITAT:Deduction u/s 80P allowable to co-operative society despite delayed filing of ITR

Dec 04, 2020

In Favour of : Assessee
Citation Number : TS-627-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT: Interest received on enhanced compensation against compulsory acquisition of land not taxable

Dec 03, 2020

In Favour of : Assessee
Citation Number : TS-624-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Cost of acquisition of apartment to include cost of amenities covered by contemporaneous agreements

Dec 04, 2020

In Favour of : Assessee
Citation Number : TS-630-ITAT-2020(Mum)

Weekly Digest #47 21 Nov to 27 Nov 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Deletes entire disallowance u/r 8D on availability of sufficient owned funds

Nov 25, 2020

In Favour of : Assessee
Citation Number : TS-603-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Upholds 'cash basis' for taxing FTS under India-Germany DTAA; Follows Bombay HC

Nov 27, 2020

In Favour of : Assessee
Citation Number : TS-612-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Deletes penalty as non-disclosure of capital gain was inadvertent and bonafide

Nov 25, 2020

In Favour of : Assessee
Citation Number : TS-605-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Allows registration u/s 12AA to non-profit company on establishment and operation of incubation centre

Nov 25, 2020

In Favour of : Assessee
Citation Number : TS-606-ITAT-2020(Ind)

Income tax Appellate Tribunal ITAT:Date of registration irrelevant for Sec. 56(2)(vii)(b) as substantial obligation discharged on date of agreement

Nov 25, 2020

In Favour of : Assessee
Citation Number : TS-604-ITAT-2020(Mum)

Weekly Digest #46 14 Nov to 20 Nov 2020 4 Rulings

Income tax Appellate Tribunal ITAT: Possession of Insider information no ground for claiming exemption from dividend stripping provisions

Nov 20, 2020

In Favour of : Both, Partially
Citation Number : TS-597-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Contribution for 'reclamation and rehabilitation' of mines as per SC order allowable u/s 37

Nov 12, 2020

In Favour of : Assessee
Citation Number : TS-579-ITAT-2020(Bang)

High Court HC: Accepts assessee's accounting per AS-9 as Revenue couldn't establish distortion of profits

Nov 20, 2020

In Favour of : Assessee
Citation Number : TS-598-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Revised computation through letter acceptable before appellate authorities, applies NTPC ruling

Nov 20, 2020

In Favour of : Assessee
Citation Number : TS-596-ITAT-2020(Bang)

Weekly Digest #45 07 Nov to 13 Nov 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Allows expenditure on exhibition of movies through audio and TV u/r 9A(3)(c)

Nov 10, 2020

In Favour of : Assessee
Citation Number : TS-575-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Excess salary refunded by WTD as per Companies Act, not his income

Nov 12, 2020

In Favour of : Assessee
Citation Number : TS-583-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT: Quashes reassessment order passed on non-existent entity; Relies on Maruti Suzuki SC ruling

Nov 12, 2020

In Favour of : Assessee
Citation Number : TS-582-ITAT-2020(Mum)

Weekly Digest #44 31 Oct to 06 Nov 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Processing of gas by GAIL for marketability is manufacturing, eligible for deduction u/s 80I/IA/HH

Nov 06, 2020

In Favour of : Assessee
Citation Number : TS-571-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Allows Trilegal partner's expenses claim against remuneration from firm

Nov 04, 2020

In Favour of : Assessee
Citation Number : TS-564-ITAT-2020(DEL)

High Court HC: ISKCON eligible for exemption as trust's objectives are charitable in nature

Nov 04, 2020

In Favour of : Assessee
Citation Number : TS-562-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Sec.112 tax-rate applicable on long term depreciable asset-sale; Sec.50 deeming fiction limited to computation

Nov 05, 2020

In Favour of : Assessee
Citation Number : TS-566-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT: Developer's 'error' in MAT computation, bonafide; Deletes penalty levied u/s.271(1)(c)

Nov 06, 2020

In Favour of : Assessee
Citation Number : TS-569-ITAT-2020(Bang)

Weekly Digest #43 24 Oct to 30 Oct 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Sec.11 exemption denial doesn't tantamount to concealment/ furnishing inaccurate details; Deletes penalty for Jamsetji Tata Trust

Oct 29, 2020

In Favour of : Assessee
Citation Number : TS-551-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Leasehold rights not 'capital assets' for Sec.50C invocation; Deletes addition of Rs. 241Cr

Oct 30, 2020

In Favour of : Assessee
Citation Number : TS-556-ITAT-2020(DEL)

High Court HC:Reverses ITAT; Advance interest received on bills discounted against LoC taxable on accrual, not receipt basis

Oct 30, 2020

In Favour of : Assessee
Citation Number : TS-557-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:Penalty notice issued sans specific charge, 'non-curable' u/s.292B

Oct 23, 2020

In Favour of : Assessee
Citation Number : TS-542-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Allows depreciation on goodwill, customer contracts acquired from KPIT-Cummins; Follows Smif Securities

Oct 23, 2020

In Favour of : Assessee
Citation Number : TS-543-ITAT-2020(DEL)

Weekly Digest #42 17 Oct to 23 Oct 2020 4 Rulings

Income tax Appellate Tribunal ITAT: Investment in 'under-construction' property qualifies for Sec. 54F benefit, despite construction non-completion within 3 years

Oct 23, 2020

In Favour of : Assessee
Citation Number : TS-544-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT: No TDS default disallowance u/s. 40(a)(ia) for assessee opting presumptive basis taxation u/s. 44AD

Oct 21, 2020

In Favour of : Assessee
Citation Number : TS-539-ITAT-2020(SUR)

Income tax Appellate Tribunal ITAT:Interest on borrowed funds advanced to related concern, deductible u/s.57(iii); Cites nexus between income & expense

Oct 21, 2020

In Favour of : Assessee
Citation Number : TS-538-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT: Mitsui's Indian Subsidiary does not constitute DAPE in India, deletes consequent addition

Oct 23, 2020

In Favour of : Assessee
Citation Number : TS-545-ITAT-2020(DEL)

Weekly Digest #41 10 Oct to 16 Oct 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Stamp- valuation in year of JDA execution relevant for LTCG computation on land-transfer

Oct 15, 2020

In Favour of : Assessee
Citation Number : TS-528-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Service charges retained by payment gateways, not commission u/s.194H; Deletes disallowance for TDS non-deduction

Oct 15, 2020

In Favour of : Assessee
Citation Number : TS-526-ITAT-2020(HYD)

High Court HC:Disallowance u/s.14A cannot exceed exempt income; Rejects revenue's hypothetical” future income plea

Oct 15, 2020

In Favour of : Assessee
Citation Number : TS-525-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:TDS u/s.195 inapplicable on reimbursement of demurrage charges paid to NR Co.

Oct 15, 2020

In Favour of : Assessee
Citation Number : TS-527-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Deletes Rs.82Cr addition for BNP Paribas on reversal of provision for diminution in investment value

Oct 16, 2020

In Favour of : Assessee
Citation Number : TS-530-ITAT-2020(Mum)

Weekly Digest #40 03 Oct to 09 Oct 2020 4 Rulings

Income tax Appellate Tribunal ITAT: Singaporean Co.'s income from bandwidth services, not taxable as royalty

Oct 09, 2020

In Favour of : Assessee
Citation Number : TS-517-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Expenditure incurred to acquire membership of stock exchange, a CAPEX eligible for depreciation

Oct 08, 2020

In Favour of : Revenue
Citation Number : TS-514-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Confirms Sec.68 addition on assessee's unsubstantiated 'agricultural income'

Oct 08, 2020

In Favour of : Revenue
Citation Number : TS-515-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT: Acer India not 'assessee-in-default' for TDS non-deduction on software purchase; HC's Samsung ruling inapplicable retrospectively

Oct 09, 2020

In Favour of : Assessee
Citation Number : TS-519-ITAT-2020(Bang)

Weekly Digest #39 26 Sep to 02 Oct 2020 3 Rulings

High Court HC: Sec. 80-IB restriction on multiple-flat allotment to single owner vide FA, 2009, prospective

Oct 01, 2020

In Favour of : Assessee
Citation Number : TS-502-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Late Fee u/s.234E for belated TDS-return filing to be reckoned from 'delayed' TDS payment date

Oct 01, 2020

In Favour of : Assessee
Citation Number : TS-504-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Short-charge of interest on subsidiary-loans not ground for interest disallowance once genuineness of borrowings established

Oct 01, 2020

In Favour of : Assessee
Citation Number : TS-501-ITAT-2020(DEL)

Weekly Digest #38 19 Sep to 25 Sep 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Vedanta not eligible for balance additional depreciation u/s. 32(1)(iia) in succeeding year pre- 2015 amendment

Sep 23, 2020

In Favour of : Revenue
Citation Number : TS-483-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT: Addition made merely on basis of Whatsapp messages, unsustainable

Sep 25, 2020

In Favour of : Assessee
Citation Number : TS-491-ITAT-2020(VIZ)

Income tax Appellate Tribunal ITAT:Sec. 56(2)(vii)(c) inapplicable in case of proportionate allotment of additional shares

Sep 24, 2020

In Favour of : Assessee
Citation Number : TS-488-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT: Date of agreement to sell, not sale deed relevant for determining period of holding; Allows LTCG claim

Sep 25, 2020

In Favour of : Assessee
Citation Number : TS-492-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:Sec. 143(2) notice limitation period commences from original return date, not defective return correction date

Sep 25, 2020

In Favour of : Assessee
Citation Number : TS-493-ITAT-2020(Bang)

Weekly Digest #37 12 Sep to 18 Sep 2020 5 Rulings

High Court HC:Allows Sec. 54F benefit for investment in residential property, subsequent use for non-residential purpose- irrelevant

Sep 18, 2020

In Favour of : Assessee
Citation Number : TS-475-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:Payments to NR co. for 'procuring orders' not FTS; Rejects TDS liability u/s. 195

Sep 18, 2020

In Favour of : Assessee
Citation Number : TS-479-ITAT-2020(Ind)

Income tax Appellate Tribunal ITAT:Deletes penalty levy for non-filing of return considering assessee's medical condition

Sep 18, 2020

In Favour of : Assessee
Citation Number : TS-474-ITAT-2020(PUN)

Income tax Appellate Tribunal ITAT: Allows deduction for expenses for developer's newly 'set-up' business; Follows Delhi HC Dhoomketu Builders ruling

Sep 18, 2020

In Favour of : Assessee
Citation Number : TS-477-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT: Furnishing of 'completion certificate' for claiming Sec.80IB(10) deduction, not mandatory; Grants relief to developer

Sep 18, 2020

In Favour of : Assessee
Citation Number : TS-478-ITAT-2020(PUN)

Weekly Digest #36 05 Sep to 11 Sep 2020 4 Rulings

High Court HC:Upholds penalty u/s. 271(1)(c) for non-disclosure of capital gains rejecting assessee's reliance on CA's reporting

Sep 11, 2020

In Favour of : Revenue
Citation Number : TS-460-HC-2020(MAD)

High Court HC:Upholds Single Judge ruling setting aside ITSC's order as invalid in Hitachi Powers' case

Sep 11, 2020

In Favour of : Assessee
Citation Number : TS-461-HC-2020(MAD)

High Court HC:Advance received upon entering into development agreement, but returned subsequently - not IFOS

Sep 10, 2020

In Favour of : Assessee
Citation Number : TS-453-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:Interest paid for non-maintenance of SLR/CRR by assessee-bank, compensatory and not penal in nature; Allows deduction

Sep 11, 2020

In Favour of : Assessee
Citation Number : TS-456-ITAT-2020(PUN)

Weekly Digest #35 29 Aug to 04 Sep 2020 6 Rulings

Income tax Appellate Tribunal ITAT: Assessee disclosed details of depreciation claim on 'house property', concealment penalty u/s.271(1)(c) not sustainable

Sep 02, 2020

In Favour of : Assessee
Citation Number : TS-439-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Deletes interest u/s. 234C on advance tax shortfall arising on share-sale concluded after last instalment due-date

Sep 02, 2020

In Favour of : Assessee
Citation Number : TS-441-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Remits Sec.12AA registration matter considering assessee's acceptance to compensate for failure to intimate valid email-ID

Sep 02, 2020

In Favour of : Both, Partially
Citation Number : TS-442-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Rejects application of Sec. 56(2)(vii)(b)(ii) to property purchased before its insertion, but registered thereafter

Sep 03, 2020

In Favour of : Assessee
Citation Number : TS-443-ITAT-2020(VIZ)

Income tax Appellate Tribunal ITAT:Allows Sec.37 deduction to Honda for expenses debited under head 'CSR expenditure'; Considers nexus with business

Sep 04, 2020

In Favour of : Assessee
Citation Number : TS-445-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT: Sec. 54B deduction entitlement to HUF pre-2012, debatable issue, rectification u/s. 154 impermissible

Sep 04, 2020

In Favour of : Assessee
Citation Number : TS-446-ITAT-2020(CHANDI)

Weekly Digest #34 22 Aug to 28 Aug 2020 5 Rulings

Income tax Appellate Tribunal ITAT: Assessee-employer's belated payments of employees' contribution towards ESI, not deductible u/s. 36(1)(va)

Aug 25, 2020

In Favour of : Revenue
Citation Number : TS-425-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Allows deduction for royalty payments towards 'unregistered' trademark made to entity owned by director

Aug 26, 2020

In Favour of : Assessee
Citation Number : TS-430-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:No higher TDS as per Sec. 206AA in absence of PAN when DTAA benefit available

Aug 27, 2020

In Favour of : Assessee
Citation Number : TS-431-ITAT-2020(Bang)

High Court HC: Income from letting-out property with amenities in SEZ, taxable as business income; Cites CBDT circular

Aug 28, 2020

In Favour of : Assessee
Citation Number : TS-433-HC-2020(MAD)

Income tax Appellate Tribunal ITAT:Directs examination of alternate claim u/s. 10A; Rejects AO's Regency ruling reliance considering subsequent review by HC

Aug 28, 2020

In Favour of : Assessee
Citation Number : TS-435-ITAT-2020(COCH)

Weekly Digest #33 15 Aug to 21 Aug 2020 6 Rulings

Income tax Appellate Tribunal ITAT:Grants stay of demand pending adjudication by Third Member

Aug 19, 2020

In Favour of : Assessee
Citation Number : TS-407-ITAT-2020(ASR)

Income tax Appellate Tribunal ITAT:Decision not cited during hearing not ground for rectification of ITAT-order; Dismisses Revenue's MP

Aug 20, 2020

In Favour of : Assessee
Citation Number : TS-412-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:Quashes reassessment on non-existent entity; AO's jurisdiction based on reasons recorded by different officer invalid

Aug 20, 2020

In Favour of : Assessee
Citation Number : TS-415-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Payment for procuring corporate box tickets of IPL matches,expended 'wholly & exclusively' for business

Aug 21, 2020

In Favour of : Assessee
Citation Number : TS-416-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Second Panchnama prepared one year after authorisation, merely for extending limitation period; Quashes block assessment

Aug 21, 2020

In Favour of : Assessee
Citation Number : TS-417-ITAT-2020(Mum)

High Court HC:Deletes penalty levied in absence of specific charge in standard-printed notice

Aug 21, 2020

In Favour of : Assessee
Citation Number : TS-419-HC-2020(BOM)

Weekly Digest #32 08 Aug to 14 Aug 2020 6 Rulings

Income tax Appellate Tribunal ITAT:Payments towards retirement benefits of 'seconded employees', not unascertained liability; Addition thereof unsustainable

Aug 10, 2020

In Favour of : Assessee
Citation Number : TS-392-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Renovation expenditure on trucks, eligible for higher depreciation relevant for special 'block of assets'

Aug 11, 2020

In Favour of : Assessee
Citation Number : TS-393-ITAT-2020(Ahd)

Supreme Court SC:Mere non-disclosure of receipts doesn't imply 'income escapement';Dismisses Revenue's SLP

Aug 12, 2020

In Favour of : Assessee
Citation Number : TS-395-SC-2020

Income tax Appellate Tribunal ITAT:Delivery-based share-trading, not speculative; allows set-off of loss with income from profession

Aug 14, 2020

In Favour of : Assessee
Citation Number : TS-398-ITAT-2020(HYD)

Income tax Appellate Tribunal ITAT:Second reopening notice issued during subsistence of earlier reassessment proceedings, invalid

Aug 14, 2020

In Favour of : Assessee
Citation Number : TS-399-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Quashes reassessment initiated beyond 4 years; No default by assessee to disclose facts

Aug 14, 2020

In Favour of : Assessee
Citation Number : TS-400-ITAT-2020(JPR)

Weekly Digest #31 01 Aug to 07 Aug 2020 6 Rulings

Income tax Appellate Tribunal ITAT: Quashes order u/s.201(1) as time-barred; Extended time-period u/s. 201(3) vide FA 2014 inapplicable to AY 2009-10

Aug 04, 2020

In Favour of : Assessee
Citation Number : TS-382-ITAT-2020(DEL)

High Court HC: Unexplained cash expenditure of land broker, neither allowable expenditure u/s.37 nor business loss u/s. 28

Aug 06, 2020

In Favour of : Revenue
Citation Number : TS-385-HC-2020(GUJ)

High Court HC:Pending finalisation of scrutiny assessment, not justifiable reason to withhold refund u/s.241A

Aug 07, 2020

In Favour of : Assessee
Citation Number : TS-386-HC-2020(DEL)

Income tax Appellate Tribunal ITAT:Allows Sec.54 benefit for investment made in wife's name

Aug 07, 2020

In Favour of : Assessee
Citation Number : TS-387-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:Software installation expenditure on abandoned project, revenue in nature

Aug 07, 2020

In Favour of : Assessee
Citation Number : TS-388-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:AO can't change assessee's share-valuation method under Rule 11UA; Follows HC decision in Vodafone M-Pesa

Aug 07, 2020

In Favour of : Assessee
Citation Number : TS-389-ITAT-2020(Mum)