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Direct Tax Laws
  
 SC/HC
  
 [2014] 44 taxmann.com 130 (Delhi)
Interest income couldn't be adjusted with pre-operative exp. if investment had no nexus with business activity -IT: Where there was no inextricable link between investment and project, interest income on said investment could not be permitted to be adjusted against pre-operative expenses in respect of said project Read Morenew
  
 [2014] 44 taxmann.com 129 (Karnataka)
No sec. 80-IB relief to manufacturer of polyurethane foam as it is specified under prohibited list -IT : Where assessee was engaged in manufacture of polyurethane foam [PT foam] in different shapes of automobile seats and it claimed deduction under section 80-IB contending that PT foam was used by it as a raw material for manufacturing automobile seats and, therefore, end product was automobile seats, since assessee simply produced foam seats and did not undertake any further process to change its original character as PT foam, said item was covered by Entry No. 25 of Eleventh Schedule to Act Read More
  
 [2014] 44 taxmann.com 126 (Madras)
HC marked power tariff concession as revenue receipt as it was contingent to commencement of production -IT : Where grant of subsidy was contingent upon commencement of production, same had to be treated as revenue receipt Read More
  
 [2014] 44 taxmann.com 128 (Calcutta)
Appeal with ITAT is maintainable if an order of refund pursuant to order of CIT(A) wasn't followed by interest -IT: Where Commissioner (Appeals) deleted disallowance made by Assessing Officer and thereupon Assessing Officer passed an order on assessee granting refund, but no order for payment of interest under section 244(1A) on refund amount was passed and assessee aggrieved by order omitting to grant interest preferred appeal before Commissioner (Appeals), said appeal was maintainable under section 246 Read More
  
 [2014] 44 taxmann.com 127 (Allahabad)
Deemed dividend arises as assessee failed to show that sum was advanced in course of money lending business -IT: Where assessee had failed to establish that substantial part of business of company was money lending and loans and advances received by assessee were in ordinary course of money lending business, same were to be treated as deemed dividend under section 2(22)(e) Read More
  
 [2014] 44 taxmann.com 104 (Gujarat)
HC affirms ITAT's action of remanding case to decide whether exp. was 'deferred revenue exp' -IT: Where Tribunal remitted matter to Assessing Officer to consider issue with respect to addition of 'water and service charges' after verifying facts as to whether any deduction was allowed in earlier years on basis that same was deferred revenue expenditure, no interference was called for Read More
  
 [2014] 44 taxmann.com 101 (Allahabad)
Participation in reassessment proceeding ratified procedural lapse and validated notice served on assessee -IT : Where notice under section 148 was served on assessee-company at its registered office though not received by an authorised person, assessee, by participating voluntarily in proceedings, had rectified procedural irregularity Read More
  
 [2014] 44 taxmann.com 141 (Gujarat)
Trust activities couldn't be tainted as commercial even if it had earned profits from its charitable activities -IT: Where aims and objects of assessee-trust were charitable and profit earned from said activities was incidental in nature, assessee was not hit by proviso to section 2(15) Read More
  
 [2014] 44 taxmann.com 98 (Punjab & Haryana)
Delhi I-T Authority has jurisdiction over assessee residing and maintaining bank account in Delhi -IT: Where assessee was not only maintaining residence in Delhi but also had bank account in Delhi where dubious transaction had taken place, Income-tax authority of Delhi had jurisdiction over assessee Read More
  
 [2014] 44 taxmann.com 65 (Gujarat)
Taxes of Co. couldn't be recovered from director if it pertained to period after its conversion into public co. -IT : Where assessee was a director of a company against which tax demand for assessment year 1996-97 remained unpaid, provisions of section 179 could not be made applicable since said company was converted into public company from 5-12-1994 Read More
  
 [2014] 44 taxmann.com 102 (Karnataka)
TDS refund couldn't denied if delay in issue of TDS certificates caused delay in filing of refund claim -IT: Deduction of tax at source from any payment made for land acquisition on or after 1-6-2000 would be illegal and amount so deducted had to be returned to assessee Read More
  
 [2014] 44 taxmann.com 103 (Bombay)[2013] 358 ITR 408 (Bombay)
ITAT rightly remanded case to AO with a direction to decide on penalty after verdict of HC in quantum proceedings -IT : Where Tribunal finding that appeal against its order in quantum proceedings, was admitted by High Court, remanded penalty proceedings back to Assessing Officer with a direction to dispose of same subject to order passed in quantum proceedings, impugned direction issued by Tribunal being justified, it did not require any interference Read More
  
 [2014] 44 taxmann.com 66 (Gujarat)
HC quashed sec. 179 tax recovery notice as it related to later years in which co. was converted into a public co. -IT : Where company became public limited company vide certificate of incorporation dated 25-5-1992, notice under section 221 for recovery of dues of company for years 1995-96 to 1996-97 to assessee director of said company could not be sustained Read More
  
 [2014] 44 taxmann.com 138 (Delhi)[2014] 361 ITR 505 (Delhi)
CIT's order that order of AO was erroneous couldn't be questioned on grounds of possible different views -IT : Clause (i) of proviso of Explanation to section 115JA operates when an amount is withdrawn from reserve created but as per proviso adjustment could be made only when at time of creation of reserve or provision, such amount was duly accounted for by increasing book profits by said reserve or provision Read Morenew
  
 [2014] 44 taxmann.com 29 (Gujarat)
No addition if AO couldn't prove that some money was paid in excess of sale consideration specified in sale deed -IT : Where in course of assessment, Assessing Officer enhanced amount of taxable capital gain, in view of fact that there was no material on record indicating that sale consideration in excess of amount mentioned in sale deed was paid and, moreover, Assessing Officer could not substitute amount of FMV declared on basis of valuation report given by registered valuer, impugned addition was rightly deleted by Tribunal Read More
  
 [2014] 44 taxmann.com 30 (Karnataka)
Addition on basis of DVO's report deleted as no material was found during search to indicate unrecorded exp. -IT : Where no material was found during search to indicate that assessee had not recorded expenses incurred on construction in books of account, addition of undisclosed income under section 158BB could not be made solely on basis of DVO's report Read More
  
 [2014] 44 taxmann.com 21 (Jharkhand)
HC quashed addition for cash credit as creditors appeared and filed particulars of their income before AO -IT : Addition made after rejecting books maintained by assessee, be deleted when all quantitative details were available in books of account and accounts were regularly maintained Read More
  
 ITAT
  
 [2014] 44 taxmann.com 169 (Hyderabad - Trib.)
Higher salary bill couldn't be disallowed on pretext of odd trend if it was genuinely incurred for business -IT-I : Where assessee claimed deduction of higher salary expenditure on account of change in business profile, since said claim was supported by necessary statements and vouchers, disallowance of a part of said expenditure on basis of percentage of salary expenditure claimed on domestic turnover in earlier year, could not be sustained Read Morenew
  
 [2014] 44 taxmann.com 133 (Jaipur - Trib.)
ITAT set aside TP adjustments as functionally inappropriate comparables were selected by TPO -IT/ILT : Wherein transfer pricing proceedings, TPO made certain adjustment to assessee's ALP in respect of import of traded goods, in view of fact that some of comparables selected by TPO were inappropriate on account of functional difference and, moreover, after excluding certain unrelated expenses such as depreciation on let out building, write off of fixed assets etc., assessee's operating margin was higher than that of remaining comparable adopted by TPO, impugned adjustment made to assessee Read Morenew
  
 [2014] 44 taxmann.com 134 (Delhi - Trib.)
Presumptive taxation under sec. 44DA couldn't invoked if services were squarely covered by sec. 44BB -IT/ILT : Where services rendered by assessee squarely fall within scope of section 44BB, its income would be computed under section 44BB and not section 44DA Read More
  
 [2014] 44 taxmann.com 123 (Panaji - Trib.)
Assessee won't be a co-operative bank if it isn't aiming to accept deposits for lending; ITAT allows sec. 80P relief -IT : Where assessee, a co-operative society, claimed deduction under section 80P(2)(a)(i) and Assessing Officer denied deduction taking view that assessee was a primary co-operative bank and, therefore, provisions of section 80P(4) were applicable, since none of aims and objects of assessee allowed it to accept deposits of money from public for purpose of lending or investment, it could not be regarded to be a primary co-operative bank and was entitled for deduction under section 80P(2)(a)(i) Read More
  
 [2014] 44 taxmann.com 99 (Mumbai - Trib.)
No depreciation to lessor on finance lease assets; guarantee commission to be recognized proportionately -IT : Depreciation is not allowable to bank leasing out assets on finance lease Read More
  
 [2014] 44 taxmann.com 124 (Mumbai - Trib.)
ITAT deleted TP adjustment and remanded case to re-fix profit margin after considering DEPB benefit in turnover -IT/ILT: Where in transfer pricing proceedings, TPO made certain adjustment to assessee's AP in respect of export of bathrobes to AE, following order passed by Tribunal in assessee's own case relating to earlier assessment year, impugned adjustment was to be set aside and, matter was to be restored to file of Assessing Officer with a direction to recompute profit margin of assessee after taking into consideration DEPB benefit as a part of its turnover Read More
  
 [2014] 44 taxmann.com 33 (Pune - Trib.)
Rejection of exemption to trust would be limited to income earned from investment in non-specified securities -IT : Provisions of section 12AA(3) relating to cancellation of registration inserted with effect from 1-10-2004 are not retrospective Read More
  
 [2014] 44 taxmann.com 23 (Amritsar - Trib.)
Case remanded to examine whether land would be covered under new definition of urban land introduced by FA, 2013 -WT : Where Assessing Officer included value of certain land in net wealth of assessee and after his death, legal heirs of assessee requested for admission of evidence to prove that subject land was agricultural land which had been excluded from definition of urban land as defined under amended provisions of section 2(ea), reasonable opportunity of being heard should be provided to legal heirs Read More
  
 [2014] 44 taxmann.com 125 (Delhi - Trib.)
ITAT rejects working of PLI when TPO took FOB value of goods as 'total cost' instead of cost incurred by assessee -IT/ILT: While working out PLI 'total cost' has to be taken as costs incurred by assessee and not FOB value of goods between third party enterprises sourced through assessee Read More
  
 Statutes
  
CIRCULAR NO. 09/2013
No depreciation on development of roads/highways on BOT basis; development exp. to be amortized - CBDT clarifies -IT : Section 119, Read With Section 32, of The Income-Tax Act, 1961 - Income-Tax Authorities - Instructions to Subordinate Authorities – Clarification On treatment of Expenditure Incurred for Development of Roads/Highways in Bot Agreements Read Morenew
  
NOTIFICATION NO F.4(10)- W&M/2003
Govt. notifies revised Form 'A' for 8% savings (taxable) bonds, 2003 -IT : 8% Savings (Taxable) Bonds, 2003 - Amendment in Paragraph 9 Read Morenew
  
 News
  
India in Pact with US on Tax Evasion under FATCA -India in Pact with US on Tax Evasion under FATCA [23-04-2014] Read Morenew
  
Diamonds Fall Between a Rock & a Polling Place -Diamonds Fall Between a Rock & a Polling Place [23-04-2014] Read Morenew
  
India to provide info on US tax evaders -India to provide info on US tax evaders [23-04-2014] Read Morenew
  
ICAI raises concerns over accountant definition in DTC Bill -ICAI raises concerns over accountant definition in DTC Bill [21-04-2014] Read More