Direct tax Weekly Digest

Weekly Digest #30 25 Jul to 31 Jul 2020 6 Rulings

Income tax Appellate Tribunal ITAT: CIT(A) not precluded from entertaining additional claims, not made in ROI; Remits matter for re-adjudication

Jul 27, 2020

In Favour of : Assessee
Citation Number : TS-359-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT: Land sale by assessee engaged in property liasoning, assessable as business income; Rejects Sec.50C applicability

Jul 28, 2020

In Favour of : Assessee
Citation Number : TS-364-ITAT-2020(RAN)

Income tax Appellate Tribunal ITAT:Gross revenue, not net income, relevant for calculating Trust's set apart amount u/s. 11(1)

Jul 28, 2020

In Favour of : Assessee
Citation Number : TS-367-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:Reverses LTCG offered on subsequently cancelled property-sale; Upholds assessee's right to claim reversal

Jul 29, 2020

In Favour of : Assessee
Citation Number : TS-368-ITAT-2020(Mum)

High Court HC:Sec. 40(a)(ia) amendment extending payment upto ROI due-date, curative and 'retrospective'

Jul 29, 2020

In Favour of : Assessee
Citation Number : TS-372-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:No TDS u/s. 194C on Newspaper co.'s payment for purchase of saleable advertising space in TOI publication

Jul 31, 2020

In Favour of : Assessee
Citation Number : TS-376-ITAT-2020(Bang)

Weekly Digest #29 17 Jul to 24 Jul 2020 4 Rulings

Income tax Appellate Tribunal ITAT:No further profit-attributable to PE if Arm's-length principles followed; Deletes 40(a)(i)-addition

Jul 22, 2020

In Favour of : Both, Partially
Citation Number : TS-348-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Textile Industry Confederation entitled to exemption u/s. 11, Sec.2(15) proviso inapplicable

Jul 22, 2020

In Favour of : Assessee
Citation Number : TS-349-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Allows Taxman Publications depreciation claim on software developed to maintain national IT website

Jul 24, 2020

In Favour of : Assessee
Citation Number : TS-356-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT: Costs reimbursed for provision of coordination services at group level, not FTS/ Royalty

Jul 24, 2020

In Favour of : Assessee
Citation Number : TS-357-ITAT-2020(Mum)

Weekly Digest #28 11 Jul to 16 Jul 2020 4 Rulings

Income tax Appellate Tribunal ITAT:Interest income eligible for Sec.80P deduction; Distinguishes Totagars ruling

Jul 14, 2020

In Favour of : Assessee
Citation Number : TS-334-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Quashes reopening proceedings absent AO's finding on income accrual from alleged overseas Trust

Jul 14, 2020

In Favour of : Assessee
Citation Number : TS-335-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:No notional rent addition u/s. 23 on property incapable of letting-out owing to legal restraint

Jul 16, 2020

In Favour of : Assessee
Citation Number : TS-338-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Holds conveyance-right as capital-asset; Surrender thereof, 'relinquishment' of property

Jul 16, 2020

In Favour of : Assessee
Citation Number : TS-339-ITAT-2020(Bang)

Weekly Digest #27 04 Jul to 10 Jul 2020 6 Rulings

High Court HC: Holds interest u/s. 234B,234C not leviable w.r.t MAT liability in pre-Rolta period

Jul 08, 2020

In Favour of : Assessee
Citation Number : TS-321-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Trust eligible to claim set-off of previous years brought forward losses against present year income

Jul 10, 2020

In Favour of : Assessee
Citation Number : TS-325-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT: Allows deduction for 'education cess', follows Bombay HC Sesa Goa ruling

Jul 10, 2020

In Favour of : Assessee
Citation Number : TS-326-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:Higher depreciation eligible only on cars used in hiring business; No benefit for car used in Advt.

Jul 10, 2020

In Favour of : Both, Partially
Citation Number : TS-327-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT: Construction completion cannot be construed as 'project completion', denies Sec.80IB deduction to property developer

Jul 10, 2020

In Favour of : Revenue
Citation Number : TS-329-ITAT-2020(Mum)

High Court HC: Quashes reassessment initiated on alleged 'bogus LTCG'; No failure by assessee to fully disclose facts

Jul 10, 2020

In Favour of : Assessee
Citation Number : TS-330-HC-2020(BOM)

Weekly Digest #26 27 Jun to 03 Jul 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Letter disputing stamp duty valuation of property doesn't invalidate DVO reference u/s. 50C(2)(b)

Jun 30, 2020

In Favour of : Assessee
Citation Number : TS-308-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Deletes addition u/s. 68 sans requisite approval for conversion of 'limited scrutiny' to 'complete scrutiny'

Jul 03, 2020

In Favour of : Assessee
Citation Number : TS-314-ITAT-2020(GAU)

Supreme Court SC: Dismisses Revenue's SLP against Real-estate developer's LTCG claim on land-sale

Jul 03, 2020

In Favour of : Assessee
Citation Number : TS-315-SC-2020

Income tax Appellate Tribunal ITAT:Extension for special audit granted by CIT, invalid; Holds assessment as 'void ab initio'

Jul 03, 2020

In Favour of : Assessee
Citation Number : TS-316-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Rejects Sec.50C invocation w.r.t sale of property engulfed in litigation

Jul 03, 2020

In Favour of : Assessee
Citation Number : TS-317-ITAT-2020(HYD)

Weekly Digest #25 20 Jun to 26 Jun 2020 7 Rulings

Income tax Appellate Tribunal ITAT:Sale of windmills, 'separate' undertaking for Slump-Sale purposes u/s.50B

Jun 24, 2020

In Favour of : Assessee
Citation Number : TS-297-ITAT-2020(VIZ)

Income tax Appellate Tribunal ITAT:Holds assessee set-up its business during the year, considers substantial activities, investment

Jun 24, 2020

In Favour of : Assessee
Citation Number : TS-298-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Allows deduction u/s.57 against interest income; Passive nature of income not sole-criteria for disallowance

Jun 25, 2020

In Favour of : Assessee
Citation Number : TS-300-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:Question of audit doesn't arise where books of accounts not maintained; Deletes penalty u/s.271B

Jun 26, 2020

In Favour of : Assessee
Citation Number : TS-302-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Late fee u/s.234E, mandatory & consequential; 'Reasonable cause', no ground for deleting levy

Jun 26, 2020

In Favour of : Revenue
Citation Number : TS-303-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:Deduction u/s. 36(1)(viii) available only on short term housing-loan, denies deduction on commercial mortgages/loans

Jun 26, 2020

In Favour of : Both, Partially
Citation Number : TS-304-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Quashes reassessment proceedings for furnishing incomplete reasons for reopening to assessee

Jun 26, 2020

In Favour of : Assessee
Citation Number : TS-305-ITAT-2020(DEL)

Weekly Digest #24 13 Jun to 19 Jun 2020 6 Rulings

Income tax Appellate Tribunal ITAT:No TDS liability u/s. 194A on Provision for Interest” where interest payable to individuals doesn't exceed Rs.2500

Jun 17, 2020

In Favour of : Assessee
Citation Number : TS-283-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Confirms penalty u/s. 271A for non-maintenace of books u/s.44AA though not mandated for specified books under Rule 6F

Jun 18, 2020

In Favour of : Revenue
Citation Number : TS-286-ITAT-2020(CTK)

Income tax Appellate Tribunal ITAT:Allows deduction u/s. 80IE claimed vide belated return

Jun 19, 2020

In Favour of : Assessee
Citation Number : TS-289-ITAT-2020(GAU)

High Court HC:Allows bad-debts write-off towards advance to liquidated sister-concern, investment therein as capital loss

Jun 19, 2020

In Favour of : Assessee
Citation Number : TS-290-HC-2020(KAR)

High Court HC:Cash seized u/s. 132 adjustable against advance tax dues; Explanation 2 to Sec. 132B prospective

Jun 19, 2020

In Favour of : Assessee
Citation Number : TS-291-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Remits PwC's FTC claim, Sec. 14A issue to the file of AO

Jun 19, 2020

In Favour of : Assessee
Citation Number : TS-292-ITAT-2020(Kol)

Weekly Digest #23 06 Jun to 12 Jun 2020 4 Rulings

Income tax Appellate Tribunal ITAT: Genuineness of donation irrelevant for determination of 'anonymous' donations

Jun 08, 2020

In Favour of : Assessee
Citation Number : TS-266-ITAT-2020(DDN)

Income tax Appellate Tribunal ITAT: Holds assessment on non-existent entity post amalgamation unsustainable, non-curable u/s. 292B

Jun 10, 2020

In Favour of : Assessee
Citation Number : TS-268-ITAT-2020(Ahd)

Income tax Appellate Tribunal ITAT:Adopts income shown in Form-26AS over TDS Certificate in Form-16A issued by payer

Jun 11, 2020

In Favour of : Assessee
Citation Number : TS-272-ITAT-2020(Kol)

Income tax Appellate Tribunal ITAT:Rejects profits attribution to alleged DAPE considering arm's length remuneration to agent

Jun 12, 2020

In Favour of : Assessee
Citation Number : TS-275-ITAT-2020(Mum)

Weekly Digest #22 30 May to 05 Jun 2020 2 Rulings

Income tax Appellate Tribunal ITAT:Upholds Sec.14A disallowance on strategic investment made in Dabur; Cites SC Maxopp ruling

Jun 04, 2020

In Favour of : Revenue
Citation Number : TS-257-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Upholds interest levy on TCS-default though taxes paid by buyers; Cites specific levy u/s. 206C(7)

Jun 05, 2020

In Favour of : Both, Partially
Citation Number : TS-263-ITAT-2020(JPR)

Weekly Digest #21 23 May to 29 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Allows deduction of bank charges against interest income u/s. 57(1)

May 26, 2020

In Favour of : Assessee
Citation Number : TS-245-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Movie distributor's 'minimum guarantee royalty' payment not Royalty u/s. 9(1)(vi); No TDS liability thereon

May 29, 2020

In Favour of : Assessee
Citation Number : TS-250-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Deletes addition u/s. 68 to extent of gross receipts from medical practice citing double addition

May 29, 2020

In Favour of : Both, Partially
Citation Number : TS-251-ITAT-2020(DEL)

Weekly Digest #20 16 May to 22 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Extends stay of demand citing HC-Directive owing to COVID-19 induced extraordinary circumstances”

May 22, 2020

In Favour of : Assessee
Citation Number : TS-241-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Assessment Order passed u/s.153A passed without valid approval, null and void

May 22, 2020

In Favour of : Assessee
Citation Number : TS-242-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Maintenance Income taxable as IFOS not House property income; Maintenance charges deductible

May 22, 2020

In Favour of : Assessee
Citation Number : TS-243-ITAT-2020(DEL)

Weekly Digest #19 09 May to 15 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Limitation period for Sec.263 starts from original assessment w.r.t matters not dealt in reassessment

May 15, 2020

In Favour of : Assessee
Citation Number : TS-232-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Investment in company with dissimilar object, a capital asset; Write-off thereof not business loss

May 15, 2020

In Favour of : Revenue
Citation Number : TS-233-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Company eligible for TDS-credit w.r.t commission received by director on its behalf

May 15, 2020

In Favour of : Assessee
Citation Number : TS-234-ITAT-2020(Mum)

Weekly Digest #18 25 Apr to 08 May 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Penalty levy u/s 271AAA after initiation of penalty u/s 271(1)(c), impermissible

May 08, 2020

In Favour of : Assessee
Citation Number : TS-224-ITAT-2020(VIZ)

Income tax Appellate Tribunal ITAT:CIT(E) to record reasons for accepting/rejecting request for condonation of delay in seeking Sec.12AA registration

May 08, 2020

In Favour of : Assessee
Citation Number : TS-226-ITAT-2020(JPR)

Income tax Appellate Tribunal ITAT:No capital gains taxation for assessee on property sale by GPA-holder of transferred property

May 08, 2020

In Favour of : Assessee
Citation Number : TS-227-ITAT-2020(HYD)

Weekly Digest #17 18 Apr to 24 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Allows Sec.37 deduction on forex loss arising on recovery of loan from foreign subsidiary

Apr 24, 2020

In Favour of : Assessee
Citation Number : TS-208-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:'Ownership' of more than one residential house renders deduction u/s.54F ineligible; 'Possession' irrelevant

Apr 24, 2020

In Favour of : Revenue
Citation Number : TS-209-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:No deduction u/s.80-IB(10) to builder absent completion certificate from concerned authority

Apr 24, 2020

In Favour of : Revenue
Citation Number : TS-210-ITAT-2020(PUN)

Weekly Digest #16 10 Apr to 17 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Deletes disallowance u/s 36(1)(ii) for commission paid to shareholder-director as per terms of employment

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-203-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Vacant land purchased by separate deed, 'appurtenant' to residential building; Allows deduction u/s.54

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-204-ITAT-2020(CHNY)

Income tax Appellate Tribunal ITAT:Finance Act 2016 amendment to Sec.50C, retrospective; 'Agreement to sell' date relevant for adopting guideline value

Apr 17, 2020

In Favour of : Assessee
Citation Number : TS-205-ITAT-2020(CHNY)

Weekly Digest #15 04 Apr to 09 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT:Saddles cost on assessee for failure to intimate change of address, rejects notice 'non-service' plea

Apr 09, 2020

In Favour of : Both, Partially
Citation Number : TS-198-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Payments to lorry/truck owners from market not subject to TDS u/s. 194C absent contract

Apr 09, 2020

In Favour of : Assessee
Citation Number : TS-200-ITAT-2020(Kol)

High Court HC:Income from Pharmacy incidental to dominant purpose of running hospital; Rejects invocation of Sec.11(4A)

Apr 09, 2020

In Favour of : Assessee
Citation Number : TS-201-HC-2020(BOM)

Weekly Digest #14 28 Mar to 03 Apr 2020 3 Rulings

Income tax Appellate Tribunal ITAT: Partner's property lease to firm not 'transfer' u/s.45(3) absent recording as 'contribution' in firm's books

Mar 31, 2020

In Favour of : Assessee
Citation Number : TS-190-ITAT-2020(ASR)

Income tax Appellate Tribunal ITAT:Wealth Tax provision not required to be added back for book profit computation u/s.115JB

Apr 03, 2020

In Favour of : Assessee
Citation Number : TS-193-ITAT-2020(Mum)

Income tax Appellate Tribunal ITAT:Deletes penalty levy on Deloitte sans specific charge mention in notice u/s.274 r.w.s. 271(1)(c)

Apr 03, 2020

In Favour of : Assessee
Citation Number : TS-195-ITAT-2020(DEL)

Weekly Digest #13 22 Mar to 27 Mar 2020 5 Rulings

Income tax Appellate Tribunal ITAT:Imposes cost on assessee for availing appellate remedy and revision u/s. 264 simultaneously

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-185-ITAT-2020(Rjt)

Income tax Appellate Tribunal ITAT:Allows deduction u/s 57(iii) w.r.t interest expenditure incurred 'for the purpose' of earning income

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-186-ITAT-2020(DEL)

High Court HC:Quashes prosecution proceedings u/s.276D for non-production of cash book absent order for retention

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-188-HC-2020(P & H)

Income tax Appellate Tribunal ITAT:Disallows sole-proprietor's higher education expenses claim u/s. 37(1) incurred prior to business commencement

Mar 27, 2020

In Favour of : Revenue
Citation Number : TS-187-ITAT-2020(JPR)

High Court HC:Stay application rejected without application of mind, unsustainable; Directs AO to decide afresh on merits

Mar 27, 2020

In Favour of : Assessee
Citation Number : TS-189-HC-2020(BOM)

Weekly Digest #12 14 Mar to 21 Mar 2020 5 Rulings

High Court HC:Essar Shipping's loan waiver, not taxable u/s 28(iv);Cites Mahindra & Mahindra's SC decision

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-171-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Third Member - Deletes penalty u/s.271(1)(c) levied based on addition deleted by AO

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-173-ITAT-2020(ASR)

Income tax Appellate Tribunal ITAT: Allows appeal withdrawal to assessee availing benefit of 'Vivad se Vishwas' scheme

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-175-ITAT-2020(DEL)

High Court HC:Property sale proceeds taxable as 'business income' for assessee engaged in 'buying & selling properties'

Mar 20, 2020

In Favour of : Revenue
Citation Number : TS-176-HC-2020(BOM)

Income tax Appellate Tribunal ITAT:Perpetually leased property, covered u/s.55(2)(b); Entitled for 1981-FMV substitution

Mar 20, 2020

In Favour of : Assessee
Citation Number : TS-177-ITAT-2020(Mum)

Weekly Digest #11 01 Jan to 13 Mar 2020 9 Rulings

Income tax Appellate Tribunal ITAT:Provision for gratuity, an 'ascertained liability' for computing book profits u/s 115JB

Mar 11, 2020

In Favour of : Assessee
Citation Number : TS-146-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Scientifically computed warranty provision, not contingent liability; Allows deduction u/s 37 to Lenovo India

Mar 12, 2020

In Favour of : Assessee
Citation Number : TS-150-ITAT-2020(Bang)

Income tax Appellate Tribunal ITAT:Compensation received for not letting-out property for specified period, taxable as IFOS

Mar 12, 2020

In Favour of : Assessee
Citation Number : TS-151-ITAT-2020(Mum)

High Court HC:Interest paid by taxpayer for delay in allotment of shares, CAPEX not Revenue

Mar 12, 2020

In Favour of : Revenue
Citation Number : TS-153-HC-2020(KAR)

Income tax Appellate Tribunal ITAT:Education cess, not 'tax' for Sec.40(a)(ii) purposes; Deletes disallowance citing Chambal Fertilizers HC-ruling

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-154-ITAT-2020(DEL)

Income tax Appellate Tribunal ITAT:Allows deduction for loss suffered due to fraud and embezzlement by employee of assessee-bank

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-155-ITAT-2020(NAG)

Income tax Appellate Tribunal ITAT:Transfer of property through GPA by assessee in children's favour, not 'transfer' attracting capital gains

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-157-ITAT-2020(HYD)

Income tax Appellate Tribunal ITAT:Mere non-furnishing of TRC cannot deny treaty benefits; Cites Skaps Industries ruling

Mar 13, 2020

In Favour of : Assessee
Citation Number : TS-158-ITAT-2020(HYD)

Income tax Appellate Tribunal ITAT: "Internal decision” taken between related concerns, no ground for allowing advances write-off claim

Mar 13, 2020

In Favour of : Revenue
Citation Number : TS-160-ITAT-2020(Bang)