Direct tax Weekly Digest

Weekly Digest #29 07 Oct to 13 Oct 2017 3 Rulings

Income tax Appellate Tribunal ITAT:Rejects AO's backdoor entry to initiate re-assessment taking shelter of Sec 150's extended timeline

Oct 13, 2017

In Favour of : Assessee
Citation Number : TS-457-ITAT-2017(JPR)

Income tax Appellate Tribunal ITAT:Allows interest-deduction of closed units to operational unit in light of pending winding-up proceedings

Oct 13, 2017

In Favour of : Assessee
Citation Number : TS-458-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT: Sec 54B capital gains relief available though new property purchased without registration

Oct 13, 2017

In Favour of : Assessee
Citation Number : TS-459-ITAT-2017(CHANDI)

Weekly Digest #28 30 Sep to 06 Oct 2017 3 Rulings

Income tax Appellate Tribunal ITAT:Deletes Sec. 271(1)(c) penalty levied for unexplained credit addition u/s. 68 in quantum proceedings

Oct 06, 2017

In Favour of : Assessee
Citation Number : TS-445-ITAT-2017(Ahd)

Income tax Appellate Tribunal ITAT:Allows share trading loss set-off against non-delivery based F & O income

Oct 06, 2017

In Favour of : Assessee
Citation Number : TS-446-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Deeming fiction u/s. 50C not applicable to transfer of leasehold rights in land

Oct 06, 2017

In Favour of : Assessee
Citation Number : TS-447-ITAT-2017(Mum)

Weekly Digest #27 16 Sep to 29 Sep 2017 10 Rulings

Income tax Appellate Tribunal ITAT:Deletes capital gains addition; Handing over possession doesn't amount to 'transfer'

Sep 25, 2017

In Favour of : Assessee
Citation Number : TS-420-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Recording AO's satisfaction 'must' for rejecting assessee's calculation; Deletes Sec. 14A disallowance

Sep 25, 2017

In Favour of : Assessee
Citation Number : TS-421-ITAT-2017(Mum)

High Court HC:Miscellaneous Application before ITAT not 'alternate remedy' to HC-appeal; Refuses delay condonation

Sep 25, 2017

In Favour of : Revenue
Citation Number : TS-422-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:Quashes penalty u/s 271(1)(b) levied for non-compliance with statutory notices; Holds breach 'venial'

Sep 22, 2017

In Favour of : Assessee
Citation Number : TS-415-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT:Bogus donation cannot be a ground for cancelling registration u/s 12AA

Sep 22, 2017

In Favour of : Assessee
Citation Number : TS-412-ITAT-2017(Kol)

Supreme Court SC:Dismisses Revenue's SLP; Trust eligible for registration u/s 12A/12AA despite no formal deed

Sep 22, 2017

In Favour of : Assessee
Citation Number : TS-417-SC-2017

High Court HC:Disregards need to distinguish between capital and revenue expenditure while allowing deduction u/s. 35(2AB)

Sep 29, 2017

In Favour of : Assessee
Citation Number : TS-435-HC-2017(DEL)

High Court HC:Applies strict interpretation, duty paid but proof not submitted results in Sec 43B disallowance

Sep 29, 2017

In Favour of : Revenue
Citation Number : TS-436-HC-2017(ALL)

High Court HC:Dismisses assessee's writ; Upholds case transfer u/s. 127 to facilitate co-ordinated investigation

Sep 29, 2017

In Favour of : Revenue
Citation Number : TS-437-HC-2017(GUJ)

High Court HC:Pre-operative interest on FDR kept for LC, taxable; Follows Tuticorin

Sep 29, 2017

In Favour of : Assessee
Citation Number : TS-438-HC-2017(RAJ)

Weekly Digest #26 09 Sep to 15 Sep 2017 6 Rulings

Income tax Appellate Tribunal ITAT:Interest on housing loan taken to repay earlier home-loan, deductible u/s. 24(b)

Sep 11, 2017

In Favour of : Assessee
Citation Number : TS-384-ITAT-2017(Bang)

High Court HC:Dismisses Revenue's appeal; Casually urged ground of perversity without proper pleading, untenable

Sep 13, 2017

In Favour of : Assessee
Citation Number : TS-391-HC-2017(DEL)

High Court HC:Quashes re-assessment on Yum Restaurants, cites non-application of mind while recording reasons

Sep 14, 2017

In Favour of : Assessee
Citation Number : TS-394-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:Order u/s. 132B(4) with respect to application of seized assets, not appealable before ITAT

Sep 15, 2017

In Favour of : Revenue
Citation Number : TS-398-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Net interest income, not gross, to be excluded while determining Sec. 10 deduction

Sep 15, 2017

In Favour of : Assessee
Citation Number : TS-400-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:No expense disallowance u/s. 14A absent nexus established between expenditure and exempt income

Sep 22, 2017

In Favour of : Assessee
Citation Number : TS-411-ITAT-2017(Mum)

Weekly Digest #25 03 Sep to 08 Sep 2017 2 Rulings

High Court HC:Characterizes lease-rentals from composite letting of building with furniture/fixtures as 'income from other sources'

Sep 08, 2017

In Favour of : Revenue
Citation Number : TS-380-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:No taxability in beneficiary's hands, once tax paid by investment trust

Sep 08, 2017

In Favour of : Assessee
Citation Number : TS-382-ITAT-2017(Kol)

Weekly Digest #24 25 Aug to 02 Sep 2017 8 Rulings

Income tax Appellate Tribunal ITAT:DRP empowered to make TP-adjustment not proposed by AO/TPO; Sec 263 remedy unnecessary

Sep 01, 2017

In Favour of : Revenue
Citation Number : TS-362-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT:Upholds Revenue's treatment of alleged immovable property 'gift' to daughter as 'sale'

Sep 01, 2017

In Favour of : Revenue
Citation Number : TS-363-ITAT-2017(DEL)

High Court HC:Cochin International Airport's agreement with AAI meets Sec. 80-IA requirement

Sep 01, 2017

In Favour of : Assessee
Citation Number : TS-364-HC-2017(KER)

High Court HC:Upholds ITAT; Written back provisions and liabilities qualifies for Sec. 80HHC deduction

Aug 31, 2017

In Favour of : Assessee
Citation Number : TS-359-HC-2017(KER)

Income tax Appellate Tribunal ITAT: Free air-travel, stay to doctors for prescribing pharam co.'s medicines, akin to 'commission'

Sep 02, 2017

In Favour of : Revenue
Citation Number : TS-366-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT:Where quantum addition is remanded to AO, penalty also should be remanded

Sep 02, 2017

In Favour of : Assessee
Citation Number : TS-367-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT:Research company's e-magazine subscription payment not royalty/FTS; Sec. 194J TDS inapplicable

Sep 02, 2017

In Favour of : Assessee
Citation Number : TS-368-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Allows deduction u/s. 43B for stamp-duty paid on demerger; Rejects Revenue's Sec. 35DD invocation

Sep 02, 2017

In Favour of : Assessee
Citation Number : TS-369-ITAT-2017(Mum)

Weekly Digest #23 19 Aug to 24 Aug 2017 7 Rulings

High Court HC:Allows trust's claim for depreciation and capital cost deduction before AY 2015-16

Aug 23, 2017

In Favour of : Assessee
Citation Number : TS-711-HC-2016(KAR)

High Court HC:Allows Trust's depreciation claim, Finance Act 2014 amendment not retrospective

Aug 23, 2017

In Favour of : Assessee
Citation Number : TS-345-HC-2017(MAD)

High Court HC:Allows deduction u/s. 37, commission-payment to Jordan-based agent not illicit under Volcker-report

Aug 23, 2017

In Favour of : Assessee
Citation Number : TS-347-HC-2017(BOM)

High Court HC:Converting 24-carat standard gold into 22 carat gold jewellery amounts to manufacturing

Aug 23, 2017

In Favour of : Assessee
Citation Number : TS-346-HC-2017(J & K)

Income tax Appellate Tribunal ITAT:Upholds CIT's revisionary order absent enquiry by AO, cites 2015 amendment in support

Aug 23, 2017

In Favour of : Revenue
Citation Number : TS-349-ITAT-2017(CHNY)

Income tax Appellate Tribunal ITAT:Product testing fee to foreign AE, not FTS; Sec. 195 TDS inapplicable

Aug 23, 2017

In Favour of : Assessee
Citation Number : TS-348-ITAT-2017(DEL)

High Court HC:Dismisses second writ praying for reliefs identical to earlier writ withdrawn by taxpayer

Aug 24, 2017

In Favour of : Revenue
Citation Number : TS-350-HC-2017(BOM)

Weekly Digest #22 12 Aug to 18 Aug 2017 3 Rulings

High Court HC:Deletes addition u/s. 68; Documentary evidences adequate to prove share application money genuineness

Jul 27, 2017

In Favour of : Assessee
Citation Number : TS-304-HC-2017(BOM)

Income tax Appellate Tribunal ITAT:Quashes Rule 8D invocation absent express recording of dissatisfaction by AO

Aug 18, 2017

In Favour of : Assessee
Citation Number : TS-337-ITAT-2017(Mum)

High Court HC:Allows Dept.'s withdrawal of interest granted u/s 244A to deduce tax arrears u/s 90 of KVSS, 1998

Aug 18, 2017

In Favour of : Revenue
Citation Number : TS-338-HC-2017(P & H)

Weekly Digest #21 05 Aug to 11 Aug 2017 3 Rulings

High Court HC:Quashes penalty u/s 271AAA for AO's failure to seek manner of earning 'undisclosed income'

Aug 11, 2017

In Favour of : Assessee
Citation Number : TS-329-HC-2017(GUJ)

High Court HC:Confirms penalty; Trust's reliance on SC's Surat Art case, sheer excuse to avoid tax-liability

Aug 08, 2017

In Favour of : Revenue
Citation Number : TS-322-HC-2017(BOM)

High Court HC:Upholds wealth-tax assessment on amalgamating company; Notes assessment-completion before amalgamation effective-date

Jul 14, 2017

In Favour of : Revenue
Citation Number : TS-278-HC-2017(MAD)

Weekly Digest #20 29 Jul to 04 Aug 2017 3 Rulings

High Court HC:Quashes Sec. 153A assessment absent notice u/s 143(2)

Aug 04, 2017

In Favour of : Assessee
Citation Number : TS-316-HC-2017(ALL)

High Court HC:Upholds ITAT; Rule 8D(2)(ii) inapplicable, entire interest related to earning of taxable income

Aug 04, 2017

In Favour of : Assessee
Citation Number : TS-317-HC-2017(BOM)

High Court HC:Upholds ITAT's order; Compensation to sole-selling agent upon agreement termination, deductible u/s. 37(1)

Aug 04, 2017

In Favour of : Assessee
Citation Number : TS-318-HC-2017(GUJ)

Weekly Digest #19 22 Jul to 28 Jul 2017 6 Rulings

High Court HC:Linking seized-document with taxpayer's undisclosed income 'must' for invoking Sec. 292C presumption

Jul 27, 2017

In Favour of : Assessee
Citation Number : TS-303-HC-2017(CAL)

Supreme Court SC:HC larger bench to decide on Sec. 244A interest entitlement on self-assessment tax refund

Jul 27, 2017

In Favour of : Assessee
Citation Number : TS-302-SC-2017

High Court HC:Rejects Revenue's re-assessment of HCL's export tax-holiday on profits of foreign branches

Jul 28, 2017

In Favour of : Assessee
Citation Number : TS-305-HC-2017(DEL)

High Court HC:Wrong deduction claim cannot make earlier disclosure not 'true' to trigger re-assessment

Jul 27, 2017

In Favour of : Assessee
Citation Number : TS-301-HC-2017(DEL)

High Court HC:Upholds deduction u/s. 37 for legal expenses incurred to defend taxpayer's mining lease

Jul 24, 2017

In Favour of : Assessee
Citation Number : TS-297-HC-2017(KAR)

High Court HC: Multiple establishments in same complex, not prerequisite for 'commercial complex'; Grants wealth-tax exemption

Jul 28, 2017

In Favour of : Assessee
Citation Number : TS-306-HC-2017(DEL)

Weekly Digest #18 08 Jul to 21 Jul 2017 5 Rulings

Income tax Appellate Tribunal ITAT:Seconded employees' services, being technical in nature, taxable as FIS

Jul 21, 2017

In Favour of : Revenue
Citation Number : TS-294-ITAT-2017(Bang)

High Court HC:Allows protective assessment in block assessment proceedings u/s 158BC/BD; Follows Mahindra Finlease

Jul 21, 2017

In Favour of : Revenue
Citation Number : TS-295-HC-2017(ALL)

Supreme Court SC:Dismisses Revenue SLP against HC order quashing reassessment on General Insurance Corp.

Jul 21, 2017

In Favour of : Assessee
Citation Number : TS-292-SC-2017

High Court HC:Dismisses Revenue's writ, upholds Settlement Commission order granting immunity from penalties / prosecution

Jul 21, 2017

In Favour of : Assessee
Citation Number : TS-291-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:Allows sales promotion expenses; MCI guidelines not applicable to ayurvedic products

Jul 14, 2017

In Favour of : Assessee
Citation Number : TS-279-ITAT-2017(PAT)

Weekly Digest #17 01 Jul to 07 Jul 2017 4 Rulings

Income tax Appellate Tribunal ITAT:Follows co-ordinate bench's Zee Media ruling for amortizing 'content cost' to broadcasting company

Jul 07, 2017

In Favour of : Assessee
Citation Number : TS-266-ITAT-2017(Mum)

Supreme Court SC:Dismisses Revenue's SLP against HC order allowing privilege fee deduction

Jul 07, 2017

In Favour of : Assessee
Citation Number : TS-268-SC-2017

Income tax Appellate Tribunal ITAT:Grants partial benefit u/s. 54F, no relaxation for cheque returned un-encashed for technical glitches

Jul 07, 2017

In Favour of : Revenue
Citation Number : TS-267-ITAT-2017(Mum)

High Court HC:Taxpayer's revision application u/s. 264 against AO's rectification order u/s. 154, maintainable

Jul 07, 2017

In Favour of : Assessee
Citation Number : TS-269-HC-2017(CAL)

Weekly Digest #16 24 Jun to 30 Jun 2017 4 Rulings

Income tax Appellate Tribunal ITAT:No denial of charity exemption u/s. 11 for change in Trust's objects aiming pan-India presence

Jun 30, 2017

In Favour of : Assessee
Citation Number : TS-252-ITAT-2017(Mum)

High Court HC: Upholds Sec. 68 addition for unexplained share-application money, assessee failed to establish contributors' credit-worthiness

Jun 30, 2017

In Favour of : Revenue
Citation Number : TS-253-HC-2017(MAD)

Income tax Appellate Tribunal ITAT:Allows sharing of consideration between taxpayer and builder upon 're-developed flat' sale

Jun 29, 2017

In Favour of : Assessee
Citation Number : TS-249-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT:Deletes notional profit addition on property sale, quashes reference to DVO

Jun 30, 2017

In Favour of : Assessee
Citation Number : TS-255-ITAT-2017(CHANDI)

Weekly Digest #15 17 Jun to 23 Jun 2017 3 Rulings

Income tax Appellate Tribunal ITAT: Upholds Sec. 271(1)(c) penalty, confirms income concealment based on AIR details

Jun 23, 2017

In Favour of : Revenue
Citation Number : TS-238-ITAT-2017(CHNY)

Income tax Appellate Tribunal ITAT:Liquidated damages, though received as part of land-sale consideration, assessable as 'income from other sources'

Jun 23, 2017

In Favour of : Revenue
Citation Number : TS-239-ITAT-2017(Mum)

Income tax Appellate Tribunal ITAT: Bonus stripping u/s 94(8) not applicable on 'share-sale' transaction; Follows co-ordinate bench

Jun 23, 2017

In Favour of : Assessee
Citation Number : TS-240-ITAT-2017(PUN)

Weekly Digest #14 26 May to 16 Jun 2017 4 Rulings

Income tax Appellate Tribunal ITAT: Sec. 10A tax-holiday period to be reckoned from date of re-locating to STPI unit

Jun 16, 2017

In Favour of : Revenue
Citation Number : TS-227-ITAT-2017(CHNY)

Income tax Appellate Tribunal ITAT:Restores case to AO for 'denovo' assessment; Denies assessee's illegitimate grievance

Jun 16, 2017

In Favour of : Both, Partially
Citation Number : TS-226-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT:Quashes assessment u/s. 153A, distinguishes Gunjan Girishbhai Mehta (SC) ruling

Jun 09, 2017

In Favour of : Assessee
Citation Number : TS-215-ITAT-2017(DEL)

Income tax Appellate Tribunal ITAT: Allows MTM losses deduction to Reliance Infra, applies Woodward Governor ratio

Jun 15, 2017

In Favour of : Assessee
Citation Number : TS-225-ITAT-2017(Mum)

Weekly Digest #13 20 May to 25 May 2017 3 Rulings

Income tax Appellate Tribunal ITAT:Grants stay of penalty proceedings pending disposal of quantum proceedings

May 25, 2017

In Favour of : Assessee
Citation Number : TS-198-ITAT-2017(DEL)

High Court HC:Upholds ITAT order quashing invocation of Sec.153A; Applies Kabul Chawla ratio

May 26, 2017

In Favour of : Assessee
Citation Number : TS-199-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:Holds land as agricultural as AO failed to prove commercial activities

May 26, 2017

In Favour of : Assessee
Citation Number : TS-200-ITAT-2017(CHNY)

Weekly Digest #12 29 Apr to 19 May 2017 4 Rulings

Income tax Appellate Tribunal ITAT:Training expense remitted to Chinese parent for payment to third party, not reimbursement

May 19, 2017

In Favour of : Both, Partially
Citation Number : TS-190-ITAT-2017(Kol)

Income tax Appellate Tribunal ITAT:Declaring undisclosed income vide revised return prior to notice issuance - not 'concealment'

May 05, 2017

In Favour of : Assessee
Citation Number : TS-172-ITAT-2017(CHNY)

Income tax Appellate Tribunal ITAT:Allows depreciation deduction despite TDS default on 'capitalised' software payment

May 05, 2017

In Favour of : Assessee
Citation Number : TS-173-ITAT-2017(Bang)

Income tax Appellate Tribunal ITAT:Restricts assessee's Sec. 54 deduction claim, observes diversion of sale proceeds into business

May 19, 2017

In Favour of : Assessee
Citation Number : TS-192-ITAT-2017(CHNY)

Weekly Digest #11 22 Apr to 28 Apr 2017 3 Rulings

Income tax Appellate Tribunal ITAT:Directs CIT(A) to admit additional evidence; non-cooperation from CA, 'reasonable cause'

Apr 28, 2017

In Favour of : Both, Partially
Citation Number : TS-165-ITAT-2017(Mum)

High Court HC:Quashes re-opening merely based on a 'Sauda-Chitthi' for land-sale

Apr 10, 2017

In Favour of : Assessee
Citation Number : TS-139-HC-2017(GUJ)

High Court HC: Upholds ITAT order granting charity registration to State development authority

Apr 28, 2017

In Favour of : Assessee
Citation Number : TS-167-HC-2017(ALL)

Weekly Digest #10 08 Apr to 21 Apr 2017 3 Rulings

High Court HC:Upholds unaccounted sales addition on account of excess gold consumption

Apr 21, 2017

In Favour of : Revenue
Citation Number : TS-154-HC-2017(GUJ)

High Court HC:Allows taxpayer's writ; Quashes AO's curtailment of 30 days period for demand payment u/s. 220

Apr 21, 2017

In Favour of : Assessee
Citation Number : TS-155-HC-2017(DEL)

Income tax Appellate Tribunal ITAT:No Sec. 194A TDS on Bank's interest provisioning under CBS software reversed subsequently

Apr 21, 2017

In Favour of : Assessee
Citation Number : TS-156-ITAT-2017(Bang)