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Direct Tax Laws
  
 SC/HC
  
 [2014] 52 taxmann.com 56 (Andhra Pradesh)[2014] 367 ITR 144 (Andhra Pradesh)
Provision made for enhanced power tariff pending dispute with power supplier wasn't deductible exp. -IT: Where except making a provision for enhanced power tariff, no amount was paid nor liability for same was acknowledged, deduction could not be allowed for such provision Read Morenew
  
 [2014] 51 taxmann.com 59 (Andhra Pradesh)[2014] 227 Taxman 202 (Andhra Pradesh)(MAG.)
No TDS credit available if assessee had failed to offer corresponding income to tax in relevant year -IT: Whenever an amount deducted as tax at source becomes incapable of being adjusted or counted towards tax payable, it acquires character of income Read Morenew
  
 [2014] 52 taxmann.com 166 (Bombay)
No deemed income on receipt of advance for assignment of development rights of land if transaction didn't complete -IT : Where assessee received certain advance on assigning development rights of a land, if transaction did not complete for some reason, no income would arise under section 28(iv), particularly when relevant MOU was not yet cancelled Read Morenew
  
 [2014] 51 taxmann.com 183 (Madras)
HC grants Sec. 80-IA relief on gains attributable to captive consumption of power generated from windmill -IT : Assessee was entitled to claim of deduction under section 80-IA in respect of income relatable to power generated by its own wind mill that was consumed by assessee Read Morenew
  
 [2014] 52 taxmann.com 301 (Karnataka)
HC directs AO to levy tax on interest received from banks after deducting related exp. incurred thereon -IT : Where Assessing Officer treated interest received from bank as income in hands of assessee and, he did not consider expenditure incurred in earning said income while computing income, matter was to be remanded back Read Morenew
  
 [2014] 52 taxmann.com 28 (Delhi)
No addition on basis of remand report by AO if he failed to verify authenticity of facts on merits -IT : Where Assessing Officer submitted remand report after a gap of more than six months and said report did not deal with merits submitted by assessee, addition was not to be allowed Read Morenew
  
 [2014] 52 taxmann.com 53 (Madhya Pradesh)[2014] 270 CTR 324 (Madhya Pradesh)
Sec. 127(3) denying hearing on transfer of case in same city won’t apply on transfer of case to other city -IT: Where case was transferred from one city to another city provisions of sub-section (3) of section 127 would not apply; opportunity of hearing to be granted Read More
  
 [2014] 51 taxmann.com 199 (Punjab & Haryana)[2014] 366 ITR 158 (Punjab & Haryana)
Assessee couldn't opt statutory remedy of filing appeal after its revision petition under Sec. 264 was rejected -IT : Where assessee had failed to produce any documentary evidence with regard to proof of agricultural land and sale of agricultural produce in order to substantiate his claim that income was agricultural income claim of assessee could not be accepted Read More
  
 [2014] 51 taxmann.com 137 (Punjab & Haryana)
Rule 27 doesn't allow fresh relief before ITAT after it was denied by CIT(A) and it wasn't raised before revenue -IT : Where assessee had failed to explain credit in question to be related to sale of goods; addition of said amount as cash credit was to be sustained Read More
  
 [2014] 50 taxmann.com 416 (Madras)
Share application money couldn't be treated as unexplained if shareholder conceded it as his investments -IT : Where share applicants of assessee-company had appeared when summons were issued and they had accepted their investment, share application money could not be treated as cash credit in hands of assessee Read More
  
 [2014] 52 taxmann.com 126 (Himachal Pradesh)
Manufacturer of paper insulated wire got sec. 80-IC relief as it was different from its raw material ‘wire’ -IT: Where assessees were manufacturing paper insulated wires and strips of copper and aluminium which were different from its raw material, same was manufacture in terms of section 80-IC, hence assessee were eligible to deduction Read More
  
 [2014] 51 taxmann.com 48 (Allahabad)
Sec. 68: Expression 'any sum found credited in books of account' covers both credit and debit entries -IT : Expression 'any sum is found credited in books of assessee' in section 68 not only means all entries on credit side but also entries on debit side in books of account Read More
  
 [2014] 52 taxmann.com 76 (Kerala)[2014] 366 ITR 542 (Kerala)
Loan received by shareholder taxed as deemed dividend as it wasn’t covered under exclusions of sec. 2(22)(e) -IT : Loan advance received by Managing Director from company would be deemed dividend Read More
  
 [2014] 52 taxmann.com 328 (Delhi)
No concealment penalty when assessee had wrongly claimed deduction of prior period exp. under a bona-fide belief -IT: Where assessee had given truthful and cogent explanation without concealing facts why interest relating to earlier years, which was capitalized, had been accounted for as a liability in current years, penalty under section 271(1)(c) was not to be levied Read More
  
 [2014] 52 taxmann.com 425 (Delhi)
Delhi High Court imposes cost on taxpayer for artificial splitting-up of sale consideration to avoid tax -IT : It is abusive tax avoidance if taxpayer artificially splits consideration for sale of shares to competitor involving transfer of controlling interest and termination of control and management into two parts Read More
  
 [2014] 52 taxmann.com 259 (Allahabad)[2014] 365 ITR 225 (Allahabad)
No concealment penalty for claiming excess deduction under I-T Act if assessee was liable to pay MAT -IT : Where assessee company had paid MAT, book profit disclosed by it was not income determined under Income-tax Act; therefore claim of extra depreciation did not lead to tax evasion and, hence, no penalty could be levied Read More
  
 [2014] 51 taxmann.com 132 (Delhi)[2014] 227 Taxman 146 (Delhi)(MAG.)[2014] 362 ITR 111 (Delhi)
No rectification under sec. 254 on issue of double addition if it wasn't raised in grounds of appeal before ITAT -IT : Where issue of double addition was not raised before Tribunal in grounds of appeal or in course of arguments, Tribunal was not bound to consider said issue; rectification of Tribunal's order would not be required Read More
  
 [2014] 51 taxmann.com 542 (Madras)
Interest on securities was to be taxed when it become due and not when it only accrued at end of assessment year -IT : Interest on securities would be taxable only on specified dates when it becomes due for payment, and not on that accrued as at end of assessment year Read More
  
 [2014] 51 taxmann.com 20 (Delhi)[2014] 227 Taxman 174 (Delhi)(MAG.)
Forex loss on Foreign Currency loan was in nature of revenue exp. as loan was raised for redemption of debentures -IT : Where assessee-company incurred loss on account of foreign currency non-resident loan and payment made on said loss in foreign currency was expenditure incurred to protect itself from foreign exchange fluctuation loss, therefore, said payment would be of revenue nature Read More
  
 [2014] 52 taxmann.com 110 (Calcutta)[2014] 365 ITR 480 (Calcutta)[2014] 269 CTR 209 (Calcutta)
HC treats application money of non-convertible debentures as cost of acquisition of detachable warrants -IT: Where assessee was issued non-convertible debentures with detachable warrants and debentures were sold at loss of application money, sale proceeds of detachable warrants would be assessed as business income after deducting amount of application money Read More
  
 [2014] 51 taxmann.com 197 (Punjab & Haryana)
Penalty for delay in furnishing of AIR upheld as assessee a habitual defaulter failed to explain reason for delay -IT: Where Assessing Authority on appreciation of material had concluded that assessee was a habitual defaulter, in absence of any satisfactory explanation having been furnished by him for delay in furnishing annual information return, levy of penalty under section 271FA could not be faulted Read More
  
 [2014] 52 taxmann.com 299 (Delhi)
No TDS on air freight paid to C&F agent besides his fees when he had raised separate bill for its reimbursement -IT: Where reimbursing clearing and forwarding agents amount of freight charges paid by them on behalf of assessee, on TDS liability would arise Read More
  
 [2014] 52 taxmann.com 221 (Delhi)
Income arising to broker on sales of shares was capital gains as it was sold from investment portfolio of shares -IT: Where share broker held shares only of three companies as investment, kept them in a separate portfolio and sold them after a gap of 4 months, short-term capital gains would arise Read More
  
 [2014] 52 taxmann.com 330 (Bombay)
High consideration declared by DVO under Sec. 50C didn't amount to filing of wrong income details to levy penalty -IT : In terms of section 50C, higher sales consideration of property determined by DVO did not by itself amount to furnishing inaccurate particulars of income so as to levy penalty under section 27(1)(c) Read More
  
 [2014] 52 taxmann.com 327 (Kerala)
Assessee had sold capital asset and not agricultural land when it didn't declare agricultural income in his return -IT: In absence of declaration of agricultural income from land, land sold could not be treated as agricultural land Read More
  
 [2014] 52 taxmann.com 249 (SC)
SLP admitted against TP addition which was made on basis of cost-plus mark-up on FOB value of goods exported to AE -IT/ILT: SLP granted against order of High Court where it was held that in absence of any material on record showing that assessee bore significant risks and enjoyed some locational advantages, revenue authorities were not justified in making addition to assessee's ALP by applying cost plus markup of 5 per cent on FOB value of goods exported to AE located abroad Read More
  
 [2014] 51 taxmann.com 205 (Gujarat)
Loan couldn't be treated as unexplained when identity and creditworthiness of creditors were established -IT : Where Assessing Officer did not point out defect in details of expenditure submitted by assessee and personal elements in said expenditures were taken care in FBT, expenditure was to be allowed Read More
  
 [2014] 51 taxmann.com 543 (Karnataka)
Brokerage paid to mobilize public deposit was revenue exp. if interest was payable on it and deposit had fixed term -IT : Brokerage paid for mobilising public deposit is revenue expenditure Read More
  
 [2014] 51 taxmann.com 420 (Karnataka)[2014] 269 CTR 82 (Karnataka)
Petitioner was defaulter as it didn't comply with demand notice without disputing deposit held on assessee's behalf -IT : Where though petitioner did not dispute about deposits held by it on behalf of assessee and same being payable to assessee, but he did not comply with demand notice raised by department, it was to be treated as assessee in default Read More
  
 [2014] 52 taxmann.com 242 (SC)
SLP admitted to decide whether prosecution could be initiated against assessee for not filing timely return -IT:SLP granted against order of High Court where it was held that prosecution against assessee under section 276CC for not filing return of income timely could be initiated on presumption that there existed a culpable mental state as onus to prove that delay was not wilful was on assessee and not on department Read More
  
 [2014] 52 taxmann.com 248 (SC)
Penalty leviable on non-disclosure of income in respect of refundable deposit of empty bottles; SLP dismissed -IT: SLP dismissed against High Court's ruling that where assessee had disclosed income from refundable empty bottle deposits in profit and loss account and balance sheet both in earlier and subsequent assessment years but had failed to disclose same in current year, levy of penalty was justified Read More
  
 [2014] 51 taxmann.com 506 (Rajasthan)
No addition on protective basis against partner if same addition was already made on substantive basis on firm -IT : Addition once made on substantive basis in case of firm or other partners and same was sustained, same addition could not be made on protective basis in hands of assessee being partner of firm Read More
  
 [2014] 52 taxmann.com 90 (Madras)
Delay in filing appeal due to delayed payment of taxes condoned as assessee was facing financial crisis -IT : Where assessee faced financial hardship to pay tax due at relevant time and after making sufficient arrangements of funds could pay tax due, delay was to be condoned Read More
  
 [2014] 51 taxmann.com 423 (Gauhati)[2014] 266 CTR 592 (Gauhati)
HC denied stay on tax demand as assessee didn't disclose bank accounts having huge balances -IT : Where assessee had not truthfully disclosed existence of bank accounts, no prima facie case was made out for stay of outstanding demand Read More
  
 [2014] 52 taxmann.com 247 (SC)
Income from sale of shares was business receipt due to frequent and high volume of transactions; SLP dismissed -IT: SLP dismissed against High Court's ruling that where assessee was selling shares very frequently, volume and magnitude was very high and he earned only a meagre amount of dividend, income arising from sale of shares was assessable as business income Read More
  
 [2014] 52 taxmann.com 220 (Delhi)
AO has to satisfy that seized docs belongs to other person before issuing notice under sec. 153C -IT: Before a notice under section 153C could be issued, Assessing Officer is required to arrive at a conclusive satisfaction that documents belongs to a person other than searched person Read More
  
 [2014] 52 taxmann.com 227 (Madras)
Recording of land in books of trust when its possession was delayed by donor doesn’t lead to denial of registration -IT: Where trust received a registered land as donation and entered it into its books of account, and there was delay by donor in handing over property to trust, delay in handing over possession could not be attributed to fault of trust, hence, Department was at error in declining to grant registration on this ground Read More
  
 [2014] 52 taxmann.com 237 (Andhra Pradesh)
Assessee was entitled to claim deduction under secs. 80HH and 80-I independent of set-off and carry forward provision -IT : Assessee was entitled to claim deduction under sections 80HH and 80-I independent of set off and carry forward provisions Read More
  
 [2014] 52 taxmann.com 244 (SC)
Apex Court admits SLP of Infosys against HC’s order upholding revision made by CIT -IT : SLP was to be granted where High Court justified revisional order under section 263 as Assessing Officer had given tax relief to assessee in accordnace with relevant articles of DTAAs, without giving any indication of nature and extent of entitlement with reference to enabling provisions Read More
  
 [2014] 52 taxmann.com 231 (Madras)
Perpetual transfer of satellite rights of a film for 99 years is a sale; excluded from definition of ‘royalty’ -IT/ILT : Transfer of satellite right to assessee under an agreement for a period of 99 years is a sale and, therefore, excluded from definition of 'royalty' under clause (5) of Explanation 2 to section 9(1)(vi) Read More
  
 [2014] 52 taxmann.com 245 (SC)
SLP granted against HC’s order affirming reassessment on non-inclusion of payment to sub-consultant in income of NR -IT : SLP granted against order of High Court where it was held that reassessment of assessee-non residant technical consultant could be made only for those year in which fact of sub-consultancy contract entered by it was not brought to notice of Assessing Officer, however same could not be reopened where fact of sub-consultancy was duly recorded Read More
  
 [2014] 51 taxmann.com 531 (Karnataka)
ITAT to settle dispute of limitation period for completing block assessment after ruling by Supreme Court -IT : In view of pendency of appeal before Supreme Court in another case in respect of extending time limit for completing assessment under section 158BC, in view of drawing of panchnama matter was kept pending in instant case Read More
  
 [2014] 52 taxmann.com 59 (Andhra Pradesh and Telangana)[2014] 367 ITR 147 (Andhra Pradesh and Telangana)
Even where trust deed stipulates future beneficiaries only, assessment was to be completed u/s 21(1) -WT: Applicability of section 21(4) when trust-deed stipulated that on death of these two women their children would become beneficiaries Read More
  
 [2014] 52 taxmann.com 98 (Delhi)[2014] 367 ITR 723 (Delhi)
No violation of sec. 11(5) alleging investment in foreign co. if Will transferring foreign shares was under dispute -IT : Where will in question, transferring shares in a foreign company in favour of trust, was under legal dispute, there was no violation of section 11(5) Read More
  
 [2014] 52 taxmann.com 13 (Punjab & Haryana)
When quantum addition had been deleted, consequential interest under Sec. 234B was also to be deleted -IT : Where quantum addition in respect of which interest under section 234B was charged had already been deleted and matter of quantum addition had attained finality, interest under section 234B was not chargeable Read More
  
 [2014] 52 taxmann.com 125 (Delhi)
Exp. incurred by assessee on installation of oil rig was revenue exp. as it was in business of drilling oil wells -IT: Drilling operations being very business of assessee, expenditure incurred to make rig operational would be covered and should be treated as 'revenue expenditure' Read More
  
 [2014] 52 taxmann.com 165 (Delhi)
HC remanded matter for fresh consideration since premise & reasoning on which tribunal passed the order was erased -IT: Where Tribunal passed order on assumption that DVO's report was under section 55A and, therefore, binding on Assessing Officer, once said premise and reasoning was erased, appeal required complete re-consideration and fresh hearing Read More
  
 [2014] 51 taxmann.com 190 (Rajasthan)[2014] 227 Taxman 181 (Rajasthan)(MAG.)
Exp. on civil structure/electrical fitting to install windmill is integral part of windmill; depreciable at 60% -IT : Where assessee-company had claimed depreciation for cost incurred in civil work and electric fitting, while installing windmill, was justified as said expenses are part and parcel of windmill and cannot be separted from same Read More
  
 [2014] 51 taxmann.com 244 (Bombay)
Unexplained cash and jewellery seized from partners couldn't be adjusted against tax liability of the firm -IT : Where unexplained cash and jewellery seized from partners of assessee-firm cannot be automatically adjusted against tax-liability of firm Read More
  
 [2014] 52 taxmann.com 243 (SC)
SLP admitted to decide whether any benefit accrued to interested persons leading to denial of Sec. 11 relief -IT : SLP granted against order of High Court where it was held that since assessee-trust cancelled sale agreement after a long time of paying advance money to person prohibited under section 13(3) without assigning any reason and without charging any interest, provisions of section 13(1)(c)(ii) were attracted with result that assessee could not be allowed exemption under section 11 Read More
  
 [2014] 52 taxmann.com 103 (Andhra Pradesh)[2014] 367 ITR 616 (Andhra Pradesh)
No income arises on allotment of shares at concessional rate till expiry of lock-in-period on such shares -IT : Where shares were allotted at concessional rate, no income would accrue or arise until expiry of lock in period Read More
  
 [2014] 52 taxmann.com 170 (Bombay)[2014] 368 ITR 505 (Bombay)
No reassessment after 4 years on basis of Apex Court's decision in absence of failure of assessee to disclose facts -IT : Beyond a period of four years from end of relevant assessment year, assessment could not be reopened to recompute deduction under section 80HHC on basis of a subsequent decision Read More
  
 [2014] 52 taxmann.com 162 (Karnataka)[2014] 265 CTR 385 (Karnataka)
Purchase of underperforming mutual fund at higher price by trustee of said fund was allowable as business exp. -IT : Where assessee-bank earned tax free income in form of dividends, interest on tax free bonds etc. since said income was directly credited to assessee's account by way of bank transfer, impugned disallowance made by revenue authorities representing 2 per cent of gross total income on account of expenditure incurred in realising said income was to be deleted Read More
  
 [2014] 52 taxmann.com 88 (Gujarat)[2014] 367 ITR 12 (Gujarat)
Interest received from debtors isn't excludible from profits of industrial unit to compute secs.80-I/80-IA relief -IT : Where business in question is continuation of existing business and not a new business and interest expenses was neither treated as pre-operative expenditure, nor had been capitalised, it would be allowed Read More
  
 [2014] 51 taxmann.com 508 (Allahabad)
No disallowance of interest under sec. 14A if borrowed funds were used in business and not for making investments -IT : Where borrowed funds were used for business purposes and no part thereof was used for making investment, interest expenditure could not be considered for proportionate disallowance under rule 8D Read More
  
 [2014] 51 taxmann.com 201 (Allahabad)
CIT had rightly made revision as assessee failed to explain reason for storage of physical cash found during survey -IT : Where assessee had shown cash in books of account but same was never found and explanation given by it was also not found acceptable revisions proceeding could be initiated under section 263 Read More
  
 [2014] 52 taxmann.com 175 (Andhra Pradesh)
Exp. incurred on interior decoration of office premises taken on lease is revenue exp. -IT : Allowance of expenditure incurred for travelling of employees would be limited under rule 6D by taking each trip of an individual employee and not with reference to total trips made by him in previous year Read More
  
 [2014] 51 taxmann.com 462 (Allahabad)
No penalty when assessee had voluntarily surrendered unexplained credit in return to avoid litigation -IT: Where assessee voluntarily surrendered a sum pertaining to cash credit inrevised return to purchase peace and to avoid litigation, penalty was to be deleted Read More
  
 [2014] 51 taxmann.com 279 (Allahabad)
Dividend income was taxable as income from other sources when shares were held for trading purpose -IT: Where assessee-company was in business of purchase and sale of shares, dividend income from shares held as stock-in-trade, would be 'Income from other sources' Read More
  
 [2014] 51 taxmann.com 49 (Bombay)
Revisionary order of CIT accepted with directions to modify it pursuant to decision of ITAT's special bench and HC -IT: Where Tribunal upheld exercise of revisional jurisdiction by Commissioner and sent matter back to him to modify his direction regarding computation of deduction under section 10A in light of certain precedents, Tribunal was not required to go into merit of case Read More
  
 [2014] 51 taxmann.com 46 (Delhi)
Additions upheld for cash credits as identity and creditworthiness of share applicants were doubtful -IT : Where in respect of share application money, assessee failed to provide complete address and PAN of certain share applicants whereas in case of some of share applicants, there were transactions of deposits and immediate withdrawals of money from bank, impugned addition made under section 68 was to be confirmed Read More
  
 [2014] 51 taxmann.com 281 (Bombay)
Sec. 80-IB(10); Cap on built-up area of commercial space doesn't apply to housing projects approved before 31-03-05 -IT : Amendment to section 80-IB(10) putting restriction on commercial area was prospective in nature and would not apply to housing projects approved prior to 31-3-2005 Read More
  
 [2014] 52 taxmann.com 157 (SC)
Apex Court directs Tribunal to consider period of lease before treating assessee as deemed owner under sec. 27 -IT : Where High Court and Tribunal without considering period of lease held assessee as deemed owner of a premises under section 27, matter was to be remanded for reconsideration Read More
  
 [2014] 51 taxmann.com 572 (Delhi)
HC deletes penalty as info and docs sought by TPO under Sec. 92D were duly furnished by assessee -IT/ILT: No section 271G penalty, if, specific details and documents sought by TPO were furnished Read More
  
 [2014] 52 taxmann.com 290 (Karnataka)
“Stake money” or “prize money” paid by race clubs to horse owners won’t attract TDS under sec. 194B -IT : The term 'any other similar game' found in Explanation (ii) to Section 2(24)(ix) is inclusive definition and has to be read ejusdem generis and as such, activity of owning and maintaining horses cannot by any stretch of imagination fall in the definition of 'card game or other game of any sort' found in section 194B.Therefore, the "stake money" or "prize money" paid by race clubs to horse owners would not attract the provisions of Section 194B of the IT Act. Read More
  
 [2014] 51 taxmann.com 454 (Madras)
Registration with Software Technology Parks of India is a pre-condition to claim sec. 10B relief -IT : Registration with Software Technology parks of India (STPI) is a pre-requisite for grant of deduction under section 10B Read More
  
 [2014] 51 taxmann.com 453 (Delhi)
Assessee providing recruitment services to NR clients by using info technology was entitled to sec. 10A relief -IT : Where assessee-company provide recruitment services to its foreign client using information technology, it would be entitled to benefit under section 10A Read More
  
 [2014] 52 taxmann.com 20 (Allahabad)
Change in mode/manner of driving income from commercial assets won't change its actual nature as business income -IT : Carry forward and set off of business loss is allowable against lease rental income derived from commercial assets Read More
  
 [2014] 50 taxmann.com 417 (Madras)
HC directs AO to consider details furnished by legal representative of deceased before initiating penalty proceedings -IT : In case of deceased assessee, details given by legal representatives had to be considered by Authority before it proceeded to invoke section 271(1)(c) Read More
  
 [2014] 52 taxmann.com 151 (Himachal Pradesh)
Compensation awarded under Motor Vehicle Act and interest accrued thereon in bank weren’t taxable -IT : Compensation awarded under Motor Vehicles Act is in lieu of death of a person or bodily injury suffered in a vehicular accident and it cannot be said to be taxable income; Circular No. 8/2011, dated 14-10-2011 quashed Read More
  
 [2014] 51 taxmann.com 426 (Kerala)[2014] 364 ITR 689 (Kerala)
No TDS disallowance on payment of taxes by payee; proviso to sec. 40(a)(ia) effective prospectively from 1.4.2013 -IT : Benefit of second proviso to section 40(a)(ia) giving concession to assessee from deducting TDS in case receipient of amount in question had already paid taxes on such amount would be available with effect from 1-4-2013 only Read More
  
 [2014] 50 taxmann.com 308 (Madhya Pradesh)[2014] 265 CTR 427 (Madhya Pradesh)
TRO could pass garnishee order to freeze overdraft facility of a habitual tax defaulter -IT : Where on assurance given by assessee to pay amount due, garnishee order issued against it was uplifted but despite that assessee did not pay tax, authorities were competent to issue garnishee order/notices freezing /attaching credit facilities allowed by banks to assessee Read More
  
 [2014] 51 taxmann.com 246 (SC)
SC : Claim of 'BSE', being secured creditor of defaulting member, had priority over dues of Income-tax department -IT : By virtue of lien on securities under rule 43 of Bombay Stock Exchange Rules, BSE being secured creditor of defaulting member would have priority over dues of Income - tax department Read More
  
 [2014] 51 taxmann.com 512 (Andhra Pradesh)
Sec. 69C also covers exp. unearthed during search against which no explanation was given by assessee -IT : It is only such adverse material, as is unearthed during search, alone can be basis for purpose of completing block assessment, and not one, that is already disclosed in books of account in earlier assessment years Read More
  
 [2014] 51 taxmann.com 568 (Gujarat)
No reassessment due to change of opinion of AO when he failed to interpret materials disclosed during assessment -IT : Reassessment to disallow exercise depreciation allowed on reappreciation of facts not justified Read More
  
 [2014] 51 taxmann.com 571 (Delhi)
Sum received for five-year maintenance contract of equipments couldn't be taxed in one assessment year -IT: Entire amount of commission received on sale of medical equipments could not be offered for taxation in one assessment year when assessee had future obligation of maintenance service and necessary expenditure required for same Read More
  
 [2014] 52 taxmann.com 161 (Delhi)
‘Make available’ defined in India-USA DTAA can be imported to interpret FTS clause of India-Netherland DTAA -IT/ILT: Where Authority for Advance Rulings refused to look into Indo-Portugese DTAA or Indo-USA DTAA and memorandum of understanding between India and USA on ground that only Indo-Netherlands DTAA needed to be looked into, matter was to be remanded to consider entire matter afresh Read More
  
 ITAT
  
 [2014] 51 taxmann.com 570 (Lucknow - Trib.)[2014] 151 ITD 610 (Lucknow - Trib.)
AO had sufficient material to make reassessment when assessee didn't prove genuineness of share transactions -IT : Where in earlier assessment year assessee did not prove genuineness of transaction in shares and therefore credit entries in bank account was held as unexplained deposit and if also wrongly claimed deduction under section 54F on purchase of property, Assessing Officer had sufficient material for reassessment Read Morenew
  
 [2014] 51 taxmann.com 303 (Ahmedabad - Trib.)[2014] 33 ITR(T) 56 (Ahmedabad - Trib.)
AO directed to re-examine sec. 11 relief as it was given by CIT(A) relying on additional docs not filed before AO -IT: Where Commissioner (Appeals) had allowed exemption under section 11 to assessee-trust by placing reliance on additional document which was not filed before Assessing Officer, matter required readjudication Read Morenew
  
 [2014] 52 taxmann.com 104 (Bangalore - Trib.)[2014] 34 ITR(T) 472 (Bangalore - Trib.)
Society receiving/lending money to its members only couldn’t be held as co-operative bank to deny sec. 80P relief -IT: Where assessee was not a credit co-operative bank but a credit co-operative society, deduction under section 80P could not be denied by applying exclusion clause of sub-section (4) of section 80P Read Morenew
  
 [2014] 52 taxmann.com 306 (Pune - Trib.)
Co. engaged in e-publishing business can't be chosen as comparables for ITES service provider -IT/ILT: A comparable company should be functionally similar and there should not be any extraordinary events like merger in said company during relevant year Read Morenew
  
 [2014] 51 taxmann.com 207 (Agra - Trib.)[2014] 160 TTJ 522 (Agra - Trib.)
Order by Third Member of ITAT tantamounted to order of Special bench; division bench couldn't comment upon it -IT: Where order is passed after referring matter to Third Member, it is an order as if it is passed by Special Bench; hence, Division Bench cannot comment upon it Read More
  
 [2014] 51 taxmann.com 81 (Cochin - Trib.)[2014] 33 ITR(T) 251 (Cochin - Trib.)
Assessee wasn't entitled to interest on interest when interest was paid to him alongwith tax refund -IT: Where interest is paid along with amount payable as refund, there is no question of payment of interest on interest Read More
  
 [2014] 52 taxmann.com 69 (Chennai - Trib.)[2014] 34 ITR(T) 458 (Chennai - Trib.)
No denial of sec. 11 relief by AO without giving details of interested persons benefiting from trust -IT: Without giving details of prohibited beneficiaries, exemption cannot be denied to a society, matter was to be readjudicated Read More
  
 [2014] 52 taxmann.com 16 (Delhi - Trib.)
AO couldn't reduce subsidy from cost of asset in current AY when it was received in subsequent year -IT : Where amount of subsidy had actually been received by assessee in next financial year, actual cost of plant and machinery could not be reduced during year under appeal thereby reducing claim of depreciation Read More
  
 [2014] 52 taxmann.com 308 (Hyderabad - Trib.)
Co. providing geospatical services isn't comparable to a Co. engaged in call center services for TP study -IT/ILT: A company to be selected as comparable should have comparable services, comparable revenue earning and complete segmental details when it is involved in diverse nature of services Read More
  
 [2014] 52 taxmann.com 109 (Chennai - Trib.)[2014] 34 ITR(T) 633 (Chennai - Trib.)
Telecom charges incurred in forex are excludible from export turnover and total turnover for sec. 10A relief -IT : While computing exemption under section 10A, expenses on telecommunication, insurance and other heads incurred in foreign exchange are to be excluded from both, export turnover and total turnover Read More
  
 [2014] 52 taxmann.com 108 (Delhi - Trib.)[2014] 34 ITR(T) 709 (Delhi - Trib.)
Transfer of loan to spouse through journal entry won’t be deemed repayment of loan in violation of sec. 269T -IT : Transfer of loan to spouse through journal entry won’t be deemed repayment of loan in violation of section 269T Read More
  
 [2014] 52 taxmann.com 300 (Hyderabad - Trib.)
Interest on delayed payment by DISCOMs wasn't an income of assessee, as agreement was effective from next year -IT : Where power purchase agreement between assessee-company and DISCOMs was effective from subsequent assessment year, assessee was not entitled to claim any interest an delayed payments from DISCOMs for year under consideration Read More
  
 [2014] 52 taxmann.com 307 (Hyderabad - Trib.)
ITAT followed its earlier order and directs TPO to exclude functionally dissimilar comparables from TP study -IT/ILT : Exclusion of comparables was to be directed in view of earlier years' order of Tribunal on same facts and circumstances Read More
  
 [2014] 51 taxmann.com 534 (Chennai - Trib.)[2014] 34 ITR(T) 470 (Chennai - Trib.)
Electrical fittings and cables are integral parts of windmill; eligible for depreciation at 80%, says ITAT -IT : Electrical cables, fittings and other electrical works connected with windmill are a single composite unit and, hence, eligible for depreciation at rate of 80 per cent Read More
  
 [2014] 51 taxmann.com 209 (Jodhpur - Trib.)[2014] 29 ITR(T) 633 (Jodhpur - Trib.)
No concealment penalty if income surrendered by director during search was honoured by Co. by filing return -IT : When surrender of undisclosed income made by director under section 132(4) was honoured by assessee-company in return, assessee was not liable to pay penalty Read More
  
 [2014] 52 taxmann.com 305 (Kolkata - Trib.)[2014] 35 ITR(T) 715 (Kolkata - Trib.)
Receipt of share premium via banking route wouldn't prove it as genuine unless AO had made proper enquiries on it -IT : Where assessee-company received share application money with huge and unjustified share premium from corporate entities, merely because said amount was received through banking channel, Assessing Officer was not justified in accepting said transactions as genuine without making proper enquiries Read More
  
 [2014] 52 taxmann.com 176 (Panaji - Trib.)
Processing of waste of other units wasn’t manufacture; CIT made revision to deny sec.10B relief -IT : Allowing claim under section 10B to assessee without making an enquiry will indicate that order is erroneous and prejudicial to interest of revenue Read More
  
 [2014] 52 taxmann.com 22 (Bangalore - Trib.)
ITAT sets aside ex-parte assessment as there was no failure of assessee to comply with terms of Sec. 143(2) notice -IT : Where there was no failure in complying with notices issued under section 143(2), assessee could not have been fastened with consequences that arise out of a best judgment assessment under section 144 Read More
  
 [2014] 52 taxmann.com 79 (Chennai - Trib.)[2014] 33 ITR(T) 694 (Chennai - Trib.)
Sum paid by film producer to compensate for loss caused to exhibitors of its movies was capital exp. -IT: Where assessee, film producer, paid compensation to exhibitors of its films which did not do well in theaters resulting loss to exhibitors, such payment not being to discharge any legal obligations but to protect assessee's goodwill, would be treated as capital expenditure Read More
  
 [2014] 52 taxmann.com 111 (Bangalore - Trib.)[2014] 35 ITR(T) 239 (Bangalore - Trib.)
ITAT curtails disallowance of foreign travel expenses of directors involving personal expenses -IT: Though possibility of involvement of personal expenditure in foreign travelling expenses of directors could not be ruled out, disallowance, even if made on estimate basis, should be a fair and justifiable estimate considering surrounding circumstances Read More
  
 [2014] 52 taxmann.com 136 (Hyderabad - Trib.)
Co. engaged in software development or technical services not to be chosen as comparable for ITES service provider -IT/ILT : Company engaged in software development, KPO services or providing highly technical engineer's services or outsourcing its major services to third party vendors could not be selected as comparable to ITES service provider Read More
  
 [2014] 52 taxmann.com 411 (Mumbai - Trib.)
TP norms would not put fetters on selection of foreign comparables if Indian Cos didn’t satisfy test of comparability -IT/ILT : Indian Transfer Pricing Regulation does not put any fetters on selection of foreign comparables, if conditions are as such that the Indian comparables do not stand the test of comparability with the tested party. Read More
  
 [2014] 52 taxmann.com 352 (Delhi - Trib.)
No TP adjustment under TNMM when Co. had charged higher/lower amount of depreciation than its comparables -IT/ILT : No Transfer Pricing adjustment can be made under Transactional Net Margin Method (TNMM) for a simplictor higher/lower amount of depreciation in itself or as a percentage of total operating expenses nor does an otherwise comparable company ceases to be so because of these factors. Adjustment called for when there is a difference in rates of depreciation on similar types of assets under similar method of charging depreciation Read More
  
 [2014] 51 taxmann.com 538 (Cochin - Trib.)[2014] 33 ITR(T) 331 (Cochin - Trib.)
Merely wrong description of AO's designation in order won't invalidate assessment order -IT: In presence of documentary evidence Expenditure incurred by assessee on filling up land could not be denied, merely because vendor of that land had already claimed similar expenditure Read More
  
 [2014] 51 taxmann.com 301 (Delhi - Trib.)[2014] 33 ITR(T) 221 (Delhi - Trib.)
No concealment penalty on wrong claim if assessee had made full disclosure and accounting treatment of exp. -IT : Where assessee had made full disclosure of cost of website maintenance and proportionate writing off year wise, mere disallowance of expenses by Assessing Officer could not be ground to levy penalty Read More
  
 [2014] 52 taxmann.com 74 (Ahmedabad - Trib.)[2014] 33 ITR(T) 555 (Ahmedabad - Trib.)
Mere mentioning of country’s name and detail of exp. don’t indicate purpose of foreign travel exp.; disallowable -IT : In case of company, mere mentioning name of country visited by directors alongwith mentioning of total amount of expenditure under various heads of expenses like, hotel bills, air-ticket, etc., does not indicate or establish business purpose of foreign travel expenses incurred by assessee-company Read More
  
 [2014] 51 taxmann.com 540 (Hyderabad - Trib.)[2014] 33 ITR(T) 731 (Hyderabad - Trib.)
Sum received from sale of carbon credit is a capital receipt, says ITAT -IT : Receipt on sale of carbon credits is a capital receipt Read More
  
 [2014] 52 taxmann.com 233 (Delhi - Trib.)
ITAT directed TPO to choose comparables on basis of ruling of Motorola’s case as it contained similar facts -IT/ILT : Where facts of case of assessee were similar to facts of case of Motorola Solutions India (P.) Ltd. v. Asstt. CIT [2014] 48 taxmann.com 248 (Delhi) and comparables picked up by TPO in both cases were same, decision of Tribunal in Motorola's case on each of comparables had to be followed in case of assessee Read More
  
 [2014] 52 taxmann.com 258 (Pune - Trib.)
Interest income on NPA has to be recognized as per legal position and not on basis of presentation in financials -IT : Where assessee had credited gross amount of interest on NPAs on both side of profit and loss account and same was in compliance with requirement of statutes, rejecting claim of assessee for non-recognition of interest income on NPAs on basis of presentation in annual financial statement was not justified Read More
  
 [2014] 52 taxmann.com 262 (Mumbai - Trib.)
ALP of international transaction couldn't be deemed as 'Nil' without adopting any prescribed method -IT/ILT: Where significant costs had been incurred by assessee in respect of a project and assessee had also furnished relevant invoices raised in this regard, it was incumbent upon TPO to work out ALP of relevant transactions by following some authorized method and entire cost borne by assessee could not be disallowed by taking ALP at nil Read More
  
 [2014] 52 taxmann.com 264 (Delhi - Trib.)
ITAT sets-aside order of DRP as it passed order after rejecting objections of assessee without proper reasoning -IT/ILT : Where Dispute Resolution Panel had not decided and adjudicated objections of assessee against draft assessment order, order of Dispute Resolution Panel and consequential assessment order could not be sustained Read More
  
 [2014] 52 taxmann.com 83 (Kolkata - Trib.)[2014] 30 ITR(T) 619 (Kolkata - Trib.)
No sec. 14A disallowance when borrowed funds were utilized to purchase shares for trading portfolio -IT-I : When purchases of shares were accepted as investments, at time of sale thereof, income arising on sale had to be accepted as capital gains and it could not be assessed as business income merely for reason that quantum was high or number of transaction were high Read More
  
 [2014] 52 taxmann.com 105 (Jaipur - Trib.)[2014] 164 TTJ 215 (Jaipur - Trib.)
Provision for development exp. allowed as developer was liable to carry out work under development authority’s norms -IT : Where assessee filed detailed explanation justifying its claim for development expenses and same was allowed after proper examination, re-assessment could not be initiated on basis of mere change of opinion Read More
  
 [2014] 52 taxmann.com 228 (Delhi - Trib.)
Assessee, a sub-advisor to PE fund couldn’t be equated with PE fund to become incomparable with merchant banker -IT/ILT: A company cannot be considered as comparable or incomparable on generality of mere description of its overall category Read More
  
 [2014] 52 taxmann.com 261 (Delhi - Trib.)[2014] 34 ITR(T) 669 (Delhi - Trib.)
Wheeling charges paid for transmission of electricity would attract TDS under sec. 194C instead of sec. 194J -IT : Where Tribunal in earlier assessment held that assessee company was not required to deduct any tax under section 194J on payment of wheeling charges for transmission of electricity, provisions of section 194J would not apply on said payment made Read More
  
 [2014] 51 taxmann.com 202 (Jodhpur - Trib.)
CBDTs instruction specifying minimum tax effect for filing appeal would also be applicable to pending cases -IT : In view of Instruction No. 5, dated 10-7-2014, issued by CBDT, appeals filed by revenue having tax effect of less than Rs. 4 lakh were to be dismissed being non-maintainable; such instruction would also apply in pending cases Read More
  
 [2014] 52 taxmann.com 263 (Bangalore - Trib.)
Interest exp. was deductible from income earned on inter-corporate deposits by investing the borrowed funds -IT : Interest exp. was deductible from income earned on inter-corporate deposits by investing the borrowed funds Read More
  
 [2014] 52 taxmann.com 82 (Mumbai - Trib.)[2014] 34 ITR(T) 452 (Mumbai - Trib.)
Non-furnishing of books due to internal dispute in Co. won’t debar AO from making addition on estimated basis -IT : Even if account was not furnished due to internal dispute in company, estimation of profit was to be made Read More
  
 [2014] 51 taxmann.com 307 (Delhi - Trib.)[2014] 32 ITR(T) 186 (Delhi - Trib.)
No disallowance of rental charges of Moulds borne by Tupperware even if moulds were used by contract-manufacturer -IT : Payment of mould rental expenses borne by assessee-principal under contractual obligation with manufacturer was to be allowed as revenue expenditure Read More
  
 [2014] 52 taxmann.com 45 (Mumbai - Trib.)[2014] 33 ITR(T) 634 (Mumbai - Trib.)
Sale of water for cleaning engine of cargo was part of business of maintaining cargo; eligible for sec. 80-IA relief -IT : Where assessee operating and maintaining port, supplied water for cargo ships for their engine cleaning and other miscellaneous purposes, same was part of business of assessee; hence, assessee was entitled to deduction under section 80-IA Read More
  
 [2014] 50 taxmann.com 321 (Delhi - Trib.)
ALP of advertisement exp. reimbursed to foreign AE couldn't be taken at nil if it was incurred for Indian affiliate -IT/ILT : As long as expenses are incurred by AE under instructions from and on behalf of assessee, and assessee has reimbursed cost to AE without any mark up, arm's length price of said transaction cannot be taken at zero Read More
  
 [2014] 52 taxmann.com 383 (Lucknow - Trib.)
Term ‘advertisement’ includes publicity; printing ‘Sahara’ logo by group Co. on air tickets would attract sec. 194C TDS -IT: Payment towards 'publicity' bears the character of 'advertisement" for the purpose of deduction of tax at source under section 194C – However, no penalty could be imposed on assessee for non-deduction of tax at source if recipient was a loss making entity and it filed all its returns including the amount so received Read More
  
 [2014] 52 taxmann.com 115 (Bangalore - Trib.)
TDS liability couldn’t be fastened on assessee due to retro-amendment in any provision, says ITAT -IT/ILT : Payment made by assessee, an Indian company to a US company for utilizing telecom services in USA did not constitute fee for technical services Read More
  
 [2014] 52 taxmann.com 225 (Pune - Trib.)
Comparable having abnormally high profit margin is excludible from TP study -IT/ILT : Where assessee sought for exclusion of one concern from final set of comparables in Transfer Pricing Study as said concern had abnormally high profit margin, exclusion was to be allowed as inclusion of said concern in final set of comparables would not lend credibility to comparability analysis Read More
  
 [2014] 52 taxmann.com 223 (Kolkata - Trib.)
University aimed at promoting piety and learning among Christians was entitled to sec. 10(23C) if funded by Govt. -IT : Where assessee, university, established to promote piety and learning among native Christian population in India, claimed exemption of income, matter was to be remanded back to consider assessee's claim under section 10(23C)(iiiab) after taking into account as to whether assessee was wholly or substantially financed by Government Read More
  
 [2014] 51 taxmann.com 305 (Hyderabad - Trib.)[2014] 31 ITR(T) 244 (Hyderabad - Trib.)
No denial of sec. 80G relief for want of copy of registration if revenue had accepted return of assessee as trust -IT : Where revenue accepted return filed by assessee as charitable origanisation, recognition under section 80G could not be refused for want of copy of registration under section 12A Read More
  
 [2014] 52 taxmann.com 96 (Bangalore - Trib.)[2014] 35 ITR(T) 177 (Bangalore - Trib.)
No selection of comparable on basis of info under sec. 133(6) unless its details were furnished to assessee -IT/ILT: Where TPO had included a company in list of comparables only on basis of information obtained under section 133(6), non-furnishing of such information to assessee would vitiate selection of that company as comparable Read More
  
 [2014] 51 taxmann.com 422 (Kolkata - Trib.)[2014] 33 ITR(T) 66 (Kolkata - Trib.)
Mere shortage in jewellery found during survey wouldn't be deemed as undisclosed investment by jeweller -IT: Merely because shortages had been noticed as compared to books, it could not be said that any undisclosed investment/money was made by assessee Read More
  
 [2014] 52 taxmann.com 68 (Chennai - Trib.)[2014] 34 ITR(T) 92 (Chennai - Trib.)
Lease equalisation charge is to be added for computation of book profits for MAT purposes -IT: Position after 1-4-1998, after amendment to section 115JA by Finance (No.2) Act, 2009 with retrospective effect from 1-4-1998 lease equalisation charges would be added for computation of book profit under section 115JA Read More
  
 [2014] 50 taxmann.com 411 (Bangalore - Trib.)
Sum paid without deduction of tax shall not be disallowed if payee files Form No. 15G/H belatedly -IT : Section 40(a)(ia) not applicable where assessee had not deducted tax at source as it was well aware that recipient had no taxable income, though declarations in Form 15G/H were obtained late Read More
  
 [2014] 51 taxmann.com 128 (Mumbai - Trib.)
No TDS on reimbursement of exp. to holding-co. when tax was already deducted by it while making payment of exp. -IT : Where taxes have been deducted at source in respect of expenditure incurred by holding company, no disallowance can be made with reference to such expenditure in hands of subsidiary company while reimbursing same to holding company Read More
  
 [2014] 52 taxmann.com 137 (Mumbai - Trib.)
ITAT deletes TP adjustment as TPO hadn't taken any comparable for benchmarking international transaction -IT/ILT : Where TPO had not taken any comparable for benchmarking international transaction of assessee and TPO had not mentioned anything against benchmarking of this international transaction by assessee, TP adjustment by taking ALP at nil was to be deleted Read More
  
 [2014] 52 taxmann.com 70 (Patna-Trib)[2014] 34 ITR(T) 717 (Patna-Trib)[2014] 164 TTJ 786 (Patna-Trib)
No sec. 69 addition on basis of DVO’s report in absence of any evidence of unexplained investment -IT : In absence of any evidence of unexplained investment, registered valuer's report, as submitted by assessee, cannot be rejected and addition cannot be made under section 69 on basis of DVO's report Read More
  
 [2014] 51 taxmann.com 349 (Delhi - Trib.)[2014] 33 ITR(T) 526 (Delhi - Trib.)
Reassessment quashed as it was made merely on basis of suspicion as per info provided by Enforcement Directorate -IT: Where AO recorded that all cash collected against sales of tickets by agent of airlines were duly recorded, he could not reopen assessment merely on basis of information of Enforcement Directorate that source of cash was not substantiated Read More
  
 [2014] 51 taxmann.com 412 (Mumbai - Trib.)[2014] 33 ITR(T) 470 (Mumbai - Trib.)
No rectification as taxability of NR's fee on services given to clients extending operations to India was debatable -IT/ILT : Issue of taxability of receipt in hands of non-resident for providing professional legal services to its clients whose operations extended to India, being debatable, not to be rectified Read More
  
 [2014] 52 taxmann.com 202 (Indore - Trib.)
Sec. 54EC deduction available even when part of consideration was invested in REC bonds prior to transfer of asset -IT : Even though prior to transfer of property, assessee invested part of consideration received on sale of property in REC bond, said amount would qualify for deduction under section 54EC Read More
  
 [2014] 51 taxmann.com 232 (Ahmedabad - Trib.)
ITAT directs TPO to make TP adjustment after examining variation in quantum/method of depreciation of comparable -IT/ILT : Matter be remanded back to file of Transfer Pricing Officer for proper verification of claim of assessee regarding huge difference in amount of depreciation between assessee-company and chosen comparable case and also difference in method of providing of depreciation in said two companies Read More
  
 [2014] 52 taxmann.com 204 (Cochin - Trib.)
No sec. 80P relief as society failed to fulfil objective of providing credit facilities for agricultural purposes -IT : Where assessees were engaged in primary objective of providing financial accommodation to its members for agricultural purposes, however they were doing banking business and provided only nominal amount of loan for agricultural purposes, same would not be liable for deduction under section 80P Read More
  
 [2014] 52 taxmann.com 89 (Mumbai - Trib.)[2014] 34 ITR(T) 505 (Mumbai - Trib.)
Claim made mistakenly under wrong provision doesn't lead to denial of genuine relief under sec.10A -IT: Deduction under section 10A cannot be denied merely because at time of filing of return, claim had mistakenly been made under section 10B Read More
  
 [2014] 51 taxmann.com 337 (Chennai - Trib.)
Sum paid to foreign Co. for using leased lines situated outside India couldn't be deemed as 'royalty' -IT/ILT-I : Where assessee-company reimbursed community expenses to foreign company for utilising leased lines and back up services situated outside India, said payment could not be regarded as 'royalty' within meaning of section 9(1)(vi) Read More
  
 [2014] 52 taxmann.com 114 (Cochin - Trib.)
No penalty if TDS default committed by partner on payments to firm due to bona-fide belief of non-deduction of tax -IT : No penalty if TDS default committed by partner on payments to firm due to bona-fide belief of non-deduction of tax Read More
  
 [2014] 52 taxmann.com 150 (Chandigarh - Trib.)[2014] 34 ITR(T) 617 (Chandigarh - Trib.)[2014] 165 TTJ 1 (Chandigarh - Trib.)(UO)
No sec. 194C TDS on freight paid to transporters when assessee was acting as agent on behalf of his principal -IT: Where assessee made payment for carriage of goods on behalf of his principal, in absence of separate agreement between assessee and transporters, assessee would not be liable to deduct tax Read More
  
 [2014] 52 taxmann.com 171 (Bangalore - Trib.)
ALP of royalty paid for know-how had to be determined separately, couldn't be mixed with other transactions -IT/ILT : Where royalty was exclusively towards use of know-how in manufacturing process undertaken by assessee and was not in any way interlinked with other international transactions, arm's length price of such royalty could be determined independently Read More
  
 [2014] 52 taxmann.com 154 (Mumbai - Trib.)
Payment made to put-up hoarding is an advertisement contract; attracts TDS under sec. 194C -IT: Contract for putting up a hoarding is in nature of advertising contract and provisions of section 194C would be applicable Read More
  
 [2014] 52 taxmann.com 206 (Pune - Trib.)
Sum paid for obtaining permanent right to use design engineering services won’t fall within the purview of royalty -IT/ILT : Where assessee was granted a permanent right to use and exploit design engineering, payment for obtaining plant know-how, i.e., designing, characterization of plant and machinery, etc., cannot be considered as payment falling within purview of 'Royalty' Read More
  
 [2014] 52 taxmann.com 17 (Bangalore - Trib.)
ITAT directs adjudication of TP issue afresh allowing assessee to prove that service had been rendered by AE -IT/ILT: Where assessee failed to produce any evidence to substantiate its claim of receiving services from its AE, however he submitted that he was in possession of relevant evidence to prove that relevant services had been rendered by AE, matter required readjudication Read More
  
 [2014] 52 taxmann.com 155 (Bangalore - Trib.)
ITAT directs fresh adjudication as assessee failed to file evidence showing services were received from AE -IT/ILT: Where assessee failed to produce any evidence to substantiate its claim of having received services from its AE for which management fee was being paid, matter required readjudication Read More
  
 [2014] 51 taxmann.com 346 (Delhi - Trib.)[2014] 34 ITR(T) 1 (Delhi - Trib.)
Salary paid to office bearers of trust wasn't excessive if it was paid on basis of report of Sixth Pay Commission -IT: Salary paid to office bearers of trust is an allowable expenditure if paid on basis of sixth pay commission guidelines Read More
  
 [2014] 51 taxmann.com 424 (Cochin - Trib.)[2014] 31 ITR(T) 248 (Cochin - Trib.)
Trees grown without any human effort don't have cost of acquisition/improvement; No capital gain on their sales -IT : Where trees grew on their own without any human effort there would be no cost of acquisition or improvement thereof; and, consequently, there could not be levy of capital gain tax Read More
  
 [2014] 52 taxmann.com 199 (Jaipur - Trib.)
Manufacturer of printer’s toners couldn’t be a comparable for co. engaged in manufacturing of printing inks -IT/ILT: Manufacturer of printer's toners couldn't be a comparable for co. engaged in manufacturing of printing inks Read More
  
 [2014] 52 taxmann.com 205 (Mumbai - Trib.)
Sec. 271AA penalty couldn’t be imposed when assessee had maintained docs required under sec. 92B -IT/ILT : Where clause by clause documentation required under rule 10D, had been maintained by assessee in respect of international transactions with AEs, levy of penalty under section 271AA was not justified Read More
  
 [2014] 52 taxmann.com 209 (Chennai - Trib.)
No revocation of registration and only sec. 11 relief was to be denied when commercial receipt threshold exceeded -IT : Where assessee trust's objects and activities were genuine, registration under section 12AA could not be cancelled merely because receipts exceeded threshold limit as provided under second proviso to section 2(15) Read More
  
 [2014] 52 taxmann.com 163 (Delhi - Trib.)[2014] 35 ITR(T) 262 (Delhi - Trib.)
Hiring of machinery for excavation work on monthly basis wasn’t work contract; not liable to sec. 194C TDS -IT : Machinery taken on monthly rental was not covered under term 'work contract' and hence, no disallowance could be made on account of non-deduction of TDS under section 194C on payment Read More
  
 [2014] 52 taxmann.com 203 (Chandigarh - Trib.)
Income from growing of mushrooms in residential area under controlled conditions isn’t agricultural income -IT: Where assessee had carried on entire activity of growing mushroom in residential area under controlled conditions, as basic element of agricultural activity was missing, income from same could not be treated as his agricultural income Read More
  
 [2014] 52 taxmann.com 160 (Chennai - Trib.)
Forex loss couldn’t be considered while computing ALP of purchases if sale/purchase wasn’t at pre-determined rates -IT/ILT : Where assessee-company having purchased bearings and other products from its AE located abroad, sold said products to Indian customers, in absence of any documentary evidence to show that purchases and sales were made against pre-determined rates, foreign exchange fluctuation loss could not be adjusted in hands of assessee Read More
  
 [2014] 51 taxmann.com 515 (Ahmedabad - Trib.)[2014] 33 ITR(T) 230 (Ahmedabad - Trib.)
Mere decline in gross profit rate and uneven increase in exp. won't be a valid ground to reject audited book-result -IT : Where assessee maintained regular books of account which were duly audited, decline in gross profit and disproportionate increase in expenses in certain heads cannot, by itself, be ground to reject book results Read More
  
 [2014] 51 taxmann.com 347 (Delhi - Trib.)[2014] 35 ITR(T) 1 (Delhi - Trib.)
Sec. 44BBB: ITAT remands case as assessee didn't provide agreement from which nature of contract could be determined -IT/ILT : Where assessee offered income from supervisory service fee under section 44BBB, but relevant agreements were not placed for consideration, matter was to be readjudicated Read More
  
 [2014] 51 taxmann.com 505 (Mumbai - Trib.)
Sec. 80-IB relief available even if buyer can convert flats into duplex in excess of built-up limit after acquisition -IT : Where supply of design to merge flats into a duplex constituted only a marketing strategy to boost sale of flats and assessee constructed flats in accordance with plan approved by authorities it was entitled for deduction under section 80-IB Read More
  
 [2014] 51 taxmann.com 507 (Panaji - Trib.)
CIT(A) directed to pass order after hearing assessee and examining additional evidence on violation of sec. 269SS -IT : Where Commissioner (Appeals) admitted additional evidence but not called for remand report or had not examined said evidence matter was to be restored back Read More
  
 [2014] 51 taxmann.com 44 (Cochin - Trib.)
Applying one of possible views couldn't be said to be prejudicial to revenue; revision of order isn't justified -IT : Where two views were possible and Assessing Officer had taken one view with which Commissioner did not agree, it could not be treated as an order prejudicial to interests of revenue; therefore recourse could not be taken to section 263(1) Read More
  
 [2014] 52 taxmann.com 135 (Hyderabad - Trib.)
ITAT choose CUP method for medical transcription services as it was adopted in earlier assessment year as well -IT/ILT : Following CUP method adopted by Tribunal in earlier assessment year, impugned addition made by TPO to assessee's ALP by adopting TNMM in respect of rendering medical transcription services to its AE, was to be deleted Read More
  
 Statutes
  
LETTER [F.NO.285/35/2013 IT (INV.V)/108
CBDT issues new guidelines for compounding of offences -IT : Guidelines for Compounding of Offences under Direct Tax Laws, 2014 Read Morenew
  
NOTIFICATION NO. 90/2014 [F.NO. 178/63/2012-ITA-I]
Govt. notifies 'Reliance Retirement Fund' as pension fund for purpose of Sec. 80C deduction -IT : Section 80C(2)(XIV) of the Income-Tax Act, 1961 - Deduction in Respect of Life Insurance Premia, Deferred Annuity, Contributions to Provident Fund, Subscription to Certain Equity Shares or Debentures Etc. - Notified Pension Fund Read Morenew
  
NOTIFICATION NO. 84/2014 [F.NO.196/11/2014-ITA.I]
Govt. notifies certain entities for purposes of Sec. 10(46) exemption -IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission Read More
  
PRESS RELEASE
Govt. announces Citizens/Clients Charter of Department of Economic Affairs -IT/CL : OTHERS : Citizens/clients Charter of Department of Economic Affairs (Ministry of Finance) Read Morenew
  
PRESS RELEASE
Govt. keen on bringing "Good Governance": takes up initiative to launch an e-book on "Good Governance" -IT/CL : OTHERS : E-Book on Good Governance : Ministry of Finance Read Morenew
  
LETTER [F.NO.286/98/2013-IT (INV.II)]
CBDT directs AOs to stop coercing taxpayers for admitting undisclosed income during search/survey proceedings -IT : Section 132, read with Section 133A of The Income-tax Act, 1961 Search & Seizure - Admissions of Undisclosed Income Under Coercion/Pressure During Search/Survey Read More
  
NOTIFICATION NO. 80/2014 [F.NO.142/04/2014-TPL]/SO
CBDT lays guidelines for notifying semiconductor wafer fabrication units under Sec. 35AD -IT : Income-Tax (Fourteenth Amendment) Rules, 2014 – Insertion of Rule 11-OB and Form 3CS Read More
  
NOTIFICATION NO. 79/2014 [F.NO.142/12/2014-TPL]
CBDT notifies limit of 50% Govt. grant for deeming university/hospitals as substantially funded by Govt. -IT : Income-tax (Thirteenth Amendment) Rules, 2014 – Insertion of Rule 2BBB Read More
  
NOTIFICATION NO. 78/2014 [F.NO.196/22/2014-ITA.I]
Govt. notifies 'Karnataka Electricity Regulatory Commission' for the purpose of Sec. 10(46) exemption -IT : Section 10(46) of the Income-Tax Act, 1961 - Exemptions - Statutory Body/authority/board/commission - Notified Body or Authority – Karnataka Electricity Regulatory Commission Read More
  
ORDER NO. 224 OF 2014 [F.NO.A-35015/7/2012-AD.VI]
CBDT redistributes work among its chairperson and members -IT : Distribution of Work among Chairperson and Members of CBDT Read More
  
 News
  
A month more to sign tax info deal with US -A month more to sign tax info deal with US [27-12-2014] Read Morenew
  
Direct tax collections rise 5.7% -Direct tax collections rise 5.7% [24-12-2014] Read More
  
Rs.20k- cr ‘ laundered’ through penny stocks -Rs.20k- cr ‘ laundered’ through penny stocks [24-12-2014] Read More
  
Standing Committee unveils its first report on actions taken by Govt. on tax assessment/exemption of IPL/BCCI -IT : Tax Assessment / Exemptions and Related Matters Concerning IPL/BCCI [22-12-2014] Read More
  
Govt may more than halve MAT on SEZs -Govt may more than halve MAT on SEZs [22-12-2014] Read More
  
India signs its first Bilateral Advance Pricing Agreement with Japan -IT/ILT : Section 92CC of The Income-Tax Act, 1961 – Advance Pricing Agreement - Signing of First Bilateral Apa by CBDT [19-12-2014] Read More
  
Market Regulator Probing Listed Shell Cos' Role in Helping Tax Evaders -Market Regulator Probing Listed Shell Cos' Role in Helping Tax Evaders [18-12-2014] Read More
  
Black money in India not less than that stashed abroad: Govt -Black money in India not less than that stashed abroad: Govt [18-12-2014] Read More
  
Nokia again urges I-T dept to lift asset freeze order against Chennai facility -Nokia again urges I-T dept to lift asset freeze order against Chennai facility [17-12-2014] Read More
  
New- look Bipa won’t let MNCs milk tax havens -New- look Bipa won’t let MNCs milk tax havens [16-12-2014] Read More
  
Sebi Says No to Bonus Stripping -Sebi Says No to Bonus Stripping [15-12-2014] Read More
  
SIT chief on tax evasion -SIT chief on tax evasion [15-12-2014] Read More
  
‘We expect complete clarity, decisive actions on retrospective taxation’ -‘We expect complete clarity, decisive actions on retrospective taxation’ [15-12-2014] Read More