Direct tax Weekly Digest

Weekly Digest #31 18 Aug to 24 Aug 2018 6 Rulings

High Court HC:'Factual error' pointed out by Audit party, not 'tangible material; Quashes reassessment

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-485-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows deduction u/s 36(1)(viia) on rural advances despite branches situated within 8Kms of town

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-481-ITAT-2018(CHANDI)

Income tax Appellate Tribunal ITAT:Deletes LTCG addition on land transferred under development agreement sans project completion

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-487-ITAT-2018(Mum)

High Court HC:Share-sale income, not STCG; 80 shares held for less than 7-days

Aug 24, 2018

In Favour of : Revenue
Citation Number : TS-484-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:'Land' valuation as stock-in-trade to be lower of market value or cost including development-charges

Aug 24, 2018

In Favour of : Assessee
Citation Number : TS-482-ITAT-2018(CHNY)

Income tax Appellate Tribunal ITAT:Rejects assessee's bonafide claim for non-deduction of tax on software license u/s 195

Aug 24, 2018

In Favour of : Revenue
Citation Number : TS-486-ITAT-2018(Bang)

Weekly Digest #7 17 Feb to 23 Aug 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Restores Sec. 68 addition; Share applicant's meager income unable to justify creditworthiness

Feb 20, 2018

In Favour of : Revenue
Citation Number : TS-68-ITAT-2018(Mum)

Supreme Court SC:Reverses HC's quashing of Sec. 143(2) notice served beyond 12 months, considering peculiar circumstances

Feb 23, 2018

In Favour of : Revenue
Citation Number : TS-76-SC-2018

Income tax Appellate Tribunal ITAT:Deletes addition u/s 33AB despite delay in utilising NABARD deposits beyond stipulated date

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-77-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Interest on security deposit taxable in landlord's hand, despite benefit passed to tenant

Feb 23, 2018

In Favour of : Revenue
Citation Number : TS-78-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Allows deduction u/s. 37(1) for brand building expense; Follows Fine Jewellery (Mumbai ITAT)

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-79-ITAT-2018(CHNY)

High Court HC:Payment to National Stock Exchange for acquisition of membership, 'capital' in nature

Feb 23, 2018

In Favour of : Assessee
Citation Number : TS-80-HC-2018(DEL)

Weekly Digest #30 11 Aug to 17 Aug 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Deletes capital-gains adjustment u/s 115JB, accepts authenticity of accounts prepared under Companies Act

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-463-ITAT-2018(Mum)

High Court HC:Directs ITAT to examine whether Company incorporated under ROC Sikkim Act constitutes Indian co. u/s. 2(26)

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-464-HC-2018(DEL)

High Court HC:Upholds commission disallowance, ITAT's finding not perverse merely because another finding / conclusion possible

Aug 17, 2018

In Favour of : Revenue
Citation Number : TS-465-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Holds property not transferred in year of entering into JDA absent handing-over of possession

Aug 17, 2018

In Favour of : Assessee
Citation Number : TS-467-ITAT-2018(CHNY)

Weekly Digest #29 28 Jul to 10 Aug 2018 4 Rulings

Income tax Appellate Tribunal ITAT:Allows interest deduction to builder for loan taken for acquiring development rights

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-444-ITAT-2018(Mum)

Supreme Court SC:Dismisses SLP against HC rejecting capital-gains taxability on asset revaluation by firm

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-447-SC-2018

High Court HC:Treats payment for getting rid of encumbrances in property as part of 'acquisition cost'

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-446-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Allows deduction for 'freebies' to doctors, MCI regulations inapplicable to Pharma Co

Aug 10, 2018

In Favour of : Assessee
Citation Number : TS-445-ITAT-2018(Mum)

Weekly Digest #28 21 Jul to 27 Jul 2018 7 Rulings

Income tax Appellate Tribunal ITAT:Amount received under compromise agreement for surrendering rights in property - Capital Gains

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-410-ITAT-2018(PUN)

High Court HC:Directs AO to consider assessee's claim u/s 80HHC when SC had nullified retrospective amendment to 80HHC(3)

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-409-HC-2018(KER)

High Court HC:Interest on mobilization advance to contractors, a capital receipt; Dissents from co-ordinate bench

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-412-HC-2018(KER)

Income tax Appellate Tribunal ITAT:Disallows expenditure on free distribution of cigarettes to promote sale of IMFL & Beer

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-414-ITAT-2018(Mum)

High Court HC:ITAT's setting aside revisionary order u/s 263 'faulty', amounts to putting gloss over AO's glaring omissions

Jul 27, 2018

In Favour of : Revenue
Citation Number : TS-415-HC-2018(DEL)

Income tax Appellate Tribunal ITAT:Labour payments through maistries, not a contract, Sec. 194C inapplicable

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-416-ITAT-2018(VIZ)

High Court HC:Directs CBDT to allow filing of IT return without furnishing Aadhaar No.

Jul 27, 2018

In Favour of : Assessee
Citation Number : TS-417-HC-2018(DEL)

Weekly Digest #27 14 Jul to 20 Jul 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Rules on Indian co.'s FTC entitlement on taxes withheld by US subsidiary .

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-390-ITAT-2018(DEL)

High Court HC: Disallows director's son higher education expenditure, absent nexus with business.

Jul 20, 2018

In Favour of : Revenue
Citation Number : TS-391-HC-2018(BOM)

Income tax Appellate Tribunal ITAT:Excludes service tax collected from total receipts u/s 44B

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-392-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Australian company's ONGC contract, divisible; Rejects composite taxability plea

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-393-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:No notional value on unsold shops held as stock in trade

Jul 20, 2018

In Favour of : Assessee
Citation Number : TS-394-ITAT-2018(Mum)

Weekly Digest #26 07 Jul to 13 Jul 2018 6 Rulings

High Court HC:Denies deduction for acquiring film distribution rights absent revenue realization on exhibitions

Jul 06, 2018

In Favour of : Revenue
Citation Number : TS-362-HC-2018(KER)

High Court HC:AO can entertain claim of erroneous deduction without revised ROI, relies on NTPC

Jul 13, 2018

In Favour of : Revenue
Citation Number : TS-375-HC-2018(KER)

Supreme Court SC:Dismisses Revenue's SLP; No re-assessment merely based on 'Sauda-Chitthi' for land-sale

Jul 13, 2018

In Favour of : Assessee
Citation Number : TS-376-SC-2018

High Court HC:Quashes order of attachment passed in name of assessee's deceased son

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-357-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Affiliation fee payment to US-company, not royalty absent transfer of technology

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-359-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Sale of hardware alongwith embedded software, not royalty; Installation/ support services, not FTS

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-358-ITAT-2018(DEL)

Weekly Digest #25 30 Jun to 06 Jul 2018 4 Rulings

High Court HC:Follows 'real-income' theory for valuing Bank's closing stock of securities

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-355-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Revenue's non-filing counter-affidavit, 'sufficient cause' for condoning taxpayer's over 2000 days delay

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-361-ITAT-2018(COCH)

High Court HC:Quashes TP-reassessment notice citing failure to mention income escapement exceeds Rs.1 lakh

Jul 06, 2018

In Favour of : Assessee
Citation Number : TS-364-HC-2018(KAR)

Income tax Appellate Tribunal ITAT:Reverses CIT(A) order, confirms concealment penalty for mala fide agricultural income claim

Jul 06, 2018

In Favour of : Revenue
Citation Number : TS-356-ITAT-2018(DEL)

Weekly Digest #24 23 Jun to 29 Jun 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Upholds FTS taxability on NRI based on recitals of TDS certificates

Jun 29, 2018

In Favour of : Revenue
Citation Number : TS-338-ITAT-2018(DEL)

High Court HC: No penalty u/s 271(1)(c) for inadvertent mistake in calculation of income

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-341-HC-2018(CAL)

Income tax Appellate Tribunal ITAT:Deletes Sec. 40(a)(i) disallowance; Allows MFN clause benefit on FTS payments to Swedish co.

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-340-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Inspection & Testing services not taxable sans 'make available' under India-UK DTAA

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-342-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows assessee's full exemption claim u/s. 54, despite property jointly held by spouse and son

Jun 29, 2018

In Favour of : Assessee
Citation Number : TS-344-ITAT-2018(DEL)

Weekly Digest #23 16 Jun to 22 Jun 2018 8 Rulings

High Court HC:Directs passing speaking order disposing assessee's objections against re-opening following GKN Driveshafts case

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-322-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Holds website development expenditure as revenue in nature, rejects 'enduring benefit' plea

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-324-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:AO to examine assessee's warranty provision claim considering the industry perspective

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-310-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Revised return filed u/s 139(5) after issuance of scrutiny notice, valid

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-325-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Confirms Sec. 271D/E penalty on film distributor for accepting / repaying booking advance in cash

Jun 22, 2018

In Favour of : Revenue
Citation Number : TS-326-ITAT-2018(ASR)

Income tax Appellate Tribunal ITAT:Share-sale profits, capital gains, not business income for NRI regularly drawing salary

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-327-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Assessee's share premium not bogus merely because subscriber held accommodation entry provider

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-329-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Grants retrospective registration u/s 12A on revenue's failure to dispose within 6 months

Jun 22, 2018

In Favour of : Assessee
Citation Number : TS-328-ITAT-2018(Bang)

Weekly Digest #22 10 Jun to 15 Jun 2018 5 Rulings

Income tax Appellate Tribunal ITAT:Apportionment of R&D, ESOP cost to exempt units unwarranted; Quashes Pharma Co's reassessment

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-308-ITAT-2018(HYD)

High Court HC: Upholds deletion of Sec. 271(1)(c) penalty on actor Trisha Krishnan, absent 'deliberate' concealment of income

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-309-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Deletes capital gains addition where taxpayer filed suit for cancellation of sale deed

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-311-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Profit from vessel-sale under tonnage-division, not IFOS; Deletes addition

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-312-ITAT-2018(HYD)

Income tax Appellate Tribunal ITAT:Subsidy for modernizing textile industry, capital in nature ; Directs exclusion from book-profits u/s. 115JB

Jun 15, 2018

In Favour of : Assessee
Citation Number : TS-313-ITAT-2018(Mum)

Weekly Digest #21 02 Jun to 09 Jun 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Allows long term capital loss claim, group company's share transfer, not sham

Jun 08, 2018

In Favour of : Assessee
Citation Number : TS-298-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Raises alarm over illegal coercive recoveries, directs CBDT to take necessary action

Jun 08, 2018

In Favour of : Assessee
Citation Number : TS-296-ITAT-2018(CHANDI)

High Court HC:Denies deduction u/s. 37 to lawyer for settlement expenses incurred as company's MD / personal guarantor

Jun 08, 2018

In Favour of : Revenue
Citation Number : TS-295-HC-2018(DEL)

Weekly Digest #20 27 May to 01 Jun 2018 5 Rulings

High Court HC: No TDS u/s 195 on foreign agency commission absent chargeability under the Income-tax Act

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-277-HC-2018(GUJ)

Income tax Appellate Tribunal ITAT:Software payments not royalty under India-UK DTAA, follows Infrasoft ruling

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-279-ITAT-2018(DEL)

Supreme Court SC: Stays operation of HC judgment upholding deemed dividend taxability on advances

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-280-SC-2018

Income tax Appellate Tribunal ITAT:Capital-gains under JDA assessable in year of passing 'vacant' possession to developer

Jun 01, 2018

In Favour of : Revenue
Citation Number : TS-281-ITAT-2018(HYD)

Supreme Court SC:Dismisses SLP; No penalty u/s 271C for TDS default on 'debatable' nature of payments

Jun 01, 2018

In Favour of : Assessee
Citation Number : TS-282-SC-2018

Weekly Digest #19 19 May to 26 May 2018 5 Rulings

Supreme Court SC:Dismisses SLP; No Sec. 194C TDS by Transporter on third-party payments to truck-owners

May 21, 2018

In Favour of : Assessee
Citation Number : TS-257-SC-2018

Income tax Appellate Tribunal ITAT: No denial of exemption u/s. 11 for Trust advancing loan in violation of sec.13(1)(d)

May 25, 2018

In Favour of : Assessee
Citation Number : TS-266-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT: Deletes Sec. 271(1)(c) penalty, assessee under 'bonafide' belief for not returning capital gains

May 25, 2018

In Favour of : Assessee
Citation Number : TS-267-ITAT-2018(Ahd)

Income tax Appellate Tribunal ITAT:Deletes concealment penalty on SRK, Dubai villa income taxability not free from doubts

May 26, 2018

In Favour of : Assessee
Citation Number : TS-268-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Disallows excess depreciation claim than under Companies Act for MAT purposes

May 26, 2018

In Favour of : Assessee
Citation Number : TS-269-ITAT-2018(CHNY)

Weekly Digest #18 12 May to 18 May 2018 4 Rulings

High Court HC:Allows exemption u/s 10(10C) for VRS payment despite scheme not as per Rule 2BA

May 18, 2018

In Favour of : Assessee
Citation Number : TS-252-HC-2018(MAD)

Income tax Appellate Tribunal ITAT:Restricts disallowance u/s 14A to quantum of exempt income; Cites Article 265 of Constitution

May 18, 2018

In Favour of : Both, Partially
Citation Number : TS-253-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:AO can assess income lower than returned income despite resulting in refund

May 18, 2018

In Favour of : Assessee
Citation Number : TS-254-ITAT-2018(Kol)

Income tax Appellate Tribunal ITAT:Deletes concealment penalty despite assessee's stand in reassessment contradictory to SC ruling

May 18, 2018

In Favour of : Assessee
Citation Number : TS-255-ITAT-2018(DEL)

Weekly Digest #17 06 May to 11 May 2018 3 Rulings

Income tax Appellate Tribunal ITAT:Micro-finance to poor at higher interest, not 'relief of poor'; Denies exemption u/s. 11

May 11, 2018

In Favour of : Revenue
Citation Number : TS-237-ITAT-2018(COCH)

Income tax Appellate Tribunal ITAT:Encashment of bank guarantee for non-fulfilment of contract work, a business expenditure

May 12, 2018

In Favour of : Assessee
Citation Number : TS-238-ITAT-2018(DEL)

High Court HC:Upholds reassessment, notes live-link between investigation wing data and income escapement

May 12, 2018

In Favour of : Revenue
Citation Number : TS-239-HC-2018(P & H)

Weekly Digest #16 28 Apr to 05 May 2018 4 Rulings

Supreme Court SC:Dismisses SLP; HC-appeal limitation period begins even if non-jurisdictional 'commissioner' receives ITAT order

May 04, 2018

In Favour of : Assessee
Citation Number : TS-225-SC-2018

Income tax Appellate Tribunal ITAT:Allows Sec. 80P deduction on co-operative society's interest income from investments with co-operative bank

May 04, 2018

In Favour of : Assessee
Citation Number : TS-227-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Denies deduction u/s. 57 for PMS, professional charges and salaries against dividend / interest income

May 04, 2018

In Favour of : Revenue
Citation Number : TS-226-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Tax deduction u/s. 194C no reason to treat genuine developer as contractor; Allows Sec. 80IA benefit

May 04, 2018

In Favour of : Assessee
Citation Number : TS-228-ITAT-2018(Mum)

Weekly Digest #15 21 Apr to 27 Apr 2018 3 Rulings

Income tax Appellate Tribunal ITAT: Payment for services involving evaluation of LNG vaporizers not FIS under India-US DTAA

Apr 27, 2018

In Favour of : Assessee
Citation Number : TS-212-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Activities for promoting Lord Krishna consciousness facilitate trust's objectives, grants Sec u/s 11 exemption

Apr 27, 2018

In Favour of : Assessee
Citation Number : TS-213-ITAT-2018(Mum)

Supreme Court SC:Dismisses assessee's SLP; 'Change of opinion' concept inapplicable when return accepted u/s 143(1)

Apr 27, 2018

In Favour of : Revenue
Citation Number : TS-214-SC-2018

Weekly Digest #14 14 Apr to 20 Apr 2018 6 Rulings

Income tax Appellate Tribunal ITAT:Payments to US- entity for providing support services from outside India, not taxable

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-190-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Deletes unaccounted cash sale receipts addition on a mining company

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-191-ITAT-2018(Bang)

Income tax Appellate Tribunal ITAT:Lease rental not capital expenditure despite lease period exceeding 12 years, allows deduction

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-192-ITAT-2018(Mum)

Income tax Appellate Tribunal ITAT:Sets aside re-opening u/s. 148 for assessing rental income in Trust's hands

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-193-ITAT-2018(COCH)

High Court HC:Demand on property purchaser towards defaulter seller's tax-dues, justified; Invalidates sales transaction

Apr 20, 2018

In Favour of : Revenue
Citation Number : TS-194-HC-2018(RAJ)

Income tax Appellate Tribunal ITAT:Export commission to non-resident agents not taxable even post Circular 7/2009

Apr 20, 2018

In Favour of : Assessee
Citation Number : TS-195-ITAT-2018(AGR)

Weekly Digest #13 30 Mar to 13 Apr 2018 5 Rulings

Income tax Appellate Tribunal ITAT: Confirms share premium addition u/s. 68 for routing accommodation entries through shell companies

Apr 13, 2018

In Favour of : Revenue
Citation Number : TS-175-ITAT-2018(DEL)

Income tax Appellate Tribunal ITAT:Allows capital gain exemption u/s 54, mere availing of housing loan not a disqualification

Apr 13, 2018

In Favour of : Assessee
Citation Number : TS-176-ITAT-2018(Kol)

High Court HC:No re-opening u/s. 147/148 to re-consider Sec. 80-IC deduction claim subjected to 'regular assessment' enquiry

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-178-HC-2018(BOM)

High Court HC:Deemed dividend u/s 2(22)(e) not attracted in absence of 'actual' payment

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-179-HC-2018(ALL)

High Court HC:Books rejection u/s 145 does not automatically lead to penalty-proceedings, absent independent findings

Apr 14, 2018

In Favour of : Assessee
Citation Number : TS-642-HC-2017(ALL)