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Direct Tax Laws
  
 SC/HC
  
 [2014] 49 taxmann.com 437 (Kerala)
Comparables chosen by assessee couldn't be ignored merely if it had sustained losses in earlier years -IT/ILT: Comparable cases cannot be ignored merely on ground of loss suffered by assessee in some years Read Morenew
  
 [2014] 49 taxmann.com 331 (Andhra Pradesh)
No TDS liability of employer on sums remitted under approved VRS if value of benefits didn’t exceed five lakhs -IT : Once scheme for voluntary retirement is approved, occasion to effect deduction of tax at source would arise only if benefit of a particular employee exceeds Rs. five lakhs Read More
  
 [2014] 49 taxmann.com 336 (Bombay)
HC upheld reassessment as assessee had wrongly deducted interest on housing loan under sec. 57 -IT : Where in course of assessment proceedings relating to subsequent assessment year, Assessing Officer received information that assessee had wrongly claimed deduction of interest under section 57 in respect of loan taken for purchase of residential house property, he was justified in initiating reassessment proceedings for relevant assessment year Read More
  
 [2014] 49 taxmann.com 332 (Karnataka)
Income from letting out of factory alongwith Machinery was taxable as business receipt if both were inseparable -IT: Where assessee, engaged in manufacture and sale of IMFL products, let out entire factory alongwith excise licence and plant and machinery, in view of provisions of section 56(2)(iii), amount of lease rent was liable to be taxed as 'business income' Read More
  
 [2014] 49 taxmann.com 273 (Madras)[2014] 362 ITR 233 (Madras)
Cotton waste won’t come within the meaning of scrap to attract TCS under sec. 206C -IT: Where assessee obtained/filed Form 27C for non-collection of tax at source technical breach of submitting same by applying section 154 was liable to be condoned Read More
  
 [2014] 49 taxmann.com 267 (Delhi)
CIT couldn’t make revision alleging lack of inquiries by AO without proving that his findings were erroneous -IT : Commissioner must reach a finding that finding of Assessing Officer was erroneous, not because inquiries were not conducted, but because final finding was wrong and untenable Read More
  
 [2014] 49 taxmann.com 262 (Bombay)[2014] 365 ITR 160 (Bombay)
No reassessment to deny provision for doubtful-debts as application of income if it was disclosed in assessment -IT : Where in income and expenditure account, stock exchange had already reflected 'provision for doubtful accounts', reassessment after four years could not be made holding that same could not be treated as application income under section 11 Read More
  
 [2014] 49 taxmann.com 296 (Calcutta)[2014] 366 ITR 15 (Calcutta)
Seizure of goods was illegal as officer didn’t handover seized goods to jurisdictional AO within specified time -IT : Seized articles are required to be handedover within 15 days of seizure to Assessing Officer who has jurisdiction over searched person Read More
  
 [2014] 49 taxmann.com 217 (Gujarat)[2014] 362 ITR 328 (Gujarat)
No disallowance of interest on loan if firm extended interest free loan to partners from its funds -IT : Where assessee utilised borrowed fund in business and gave interest free advances to partners, etc. from interest free fund, disallowance of interest on borrowed fund would not be justified Read More
  
 [2014] 49 taxmann.com 221 (Gujarat)[2014] 270 CTR 83 (Gujarat)
Sec. 234D applicable in case of assessments completed after June 1, 2003 without considering year of assessment -IT : In case of any assessment completed after 1-6-2003, regardless of year of assessment, provisions of section 234D would be applicable to such assessment year Read More
  
 [2014] 49 taxmann.com 298 (Rajasthan)[2014] 362 ITR 483 (Rajasthan)
No sec. 32A relief for investment in hotel as preparation of food items therein couldn’t be deemed as manufacture -IT : Preparation of food in hotel is not manufacture, thus hotel building is not a plant entitled to investment allowance Read More
  
 [2014] 49 taxmann.com 212 (Gujarat)
No reassessment to change head of income if nature of income was duly scrutinized during assessment -IT : Where after scrutiny Assessing Officer treated a certain sum as capital gain, he could not treat said sum as business income by resorting to re-assessment Read More
  
 [2014] 49 taxmann.com 215 (SC)[2014] 364 ITR 686 (SC)
SC: HC can hear any question of law not formulated by it if it is satisfied that appeal involves such question -IT : High Court can hear appeal on any substantial question of law though not formulated by it if it is satisfied that case involves such question and records reasons therefor Read More
  
 [2014] 49 taxmann.com 216 (Gujarat)[2014] 362 ITR 502 (Gujarat)
Reassessment couldn’t be quashed if AO acted on opinion of audit party after satisfying himself -IT : Where Assessing Officer was convinced that depreciation was wrongly claimed at full rate, reassessment notice could not be quashed merely on ground that she formed opinion on basis of audit objection Read More
  
 [2014] 49 taxmann.com 326 (Bombay)
Revenue couldn’t deny belated filing of tax refund on basis of CBDT’s old circular which was modified later on -IT : Where subsequent to grant of TDS refunds, assessee received TDS certificates from its parties regarding which refund was not claimed, new refund claim was to be entertained Read More
  
 [2014] 49 taxmann.com 299 (Karnataka)
No deemed divided as recipient of loan/advance wasn’t a shareholder in lender-Co. -IT: Assessee was not liable to tax under section 2(22)(e) when it was not a shareholder Read More
  
 [2014] 49 taxmann.com 289 (Gujarat)
HC gives hearing chance to assessee against Show Cause notice alleging contravention of Sec. 269SS/269T -IT: Where assessee challenged issuance of show cause notice on ground of non-applicability of sections 269SS and 269T to relevant facts, assessee should be given ample opportunity to submit its case before Commissioner who had issued notice Read More
  
 [2014] 49 taxmann.com 324 (Karnataka)
Payments made to retiring partners as per books without distribution of goodwill won’t trigger capital gains tax -IT: Where, on retirement, certain sum was paid to partners due to them as per books, and no portion of goodwill was paid to retiring partners, and goodwill remained with firm, section 45 was not attracted Read More
  
 [2014] 49 taxmann.com 167 (Delhi)
Mere booking of flat with builder within two years of transfer of house would provide relief under sec. 54 -IT : Where assessee having sold residential property, entered into an agreement with a builder within prescribed period of two years for purchase of flat payment of which was linked to stage of construction, assessee's claim for deduction under section 54 was to be allowed Read More
  
 [2014] 49 taxmann.com 171 (Gujarat)
CIT to consider only object of trust and not application of income while granting sec. 80G registration to trust -IT : At time of granting approval of exemption under section 80G, only object of trust is required to be examined and, therefore, assessee's application seeking approval under section 80G(5) could not be rejected on ground that it failed to incur expenditure to extent of 85 per cent of its income during relevant year Read More
  
 [2014] 49 taxmann.com 21 (Punjab & Haryana)[2014] 360 ITR 193 (Punjab & Haryana)
HC disallowed interest as borrowed funds were diverted to sister concern without any commercial expediency -IT: Where assessee after taking loan from bank gave interest-free advances to its sister concern which had gone into huge loss and there was no commercial expediency in advancing such loan, interest attributable to such loan was to be disallowed Read More
  
 [2014] 49 taxmann.com 19 (Karnataka)[2014] 361 ITR 183 (Karnataka)
Merely change in management of assessee wasn’t a valid ground to condone delay in filing refund claim -IT : Where accounts of assessee were audited well in time and assessee could have filed return of income within time stipulated under section 139(1), change of management could not be sufficient ground to condone delay in filing return and refund claim Read More
  
 [2014] 49 taxmann.com 18 (Bombay)
HC denies to admit writ as assessee had already availed of alternative remedy of filing appeal before CIT(A) -IT : Where assessee had already invoked an efficacious alternative remedy by filing an appeal before Commissioner (Appeals) against re-assessment order passed, there was no reason to entertain writ petition filed by assessee against notice issued under section 148 Read More
  
 [2014] 49 taxmann.com 201 (Karnataka)
No completion certificate is required to claim sec. 80-IB relief for housing projects located in Karnataka -IT : Where housing project of assessee builder was approved by local authority prior to 1-4-2005, benefit under section 80-IB could not be denied on ground that assessee did not comply with provisions of section 80-IB(10) Read More
  
 [2014] 49 taxmann.com 204 (Madras)
AO couldn’t deny stay of demand on non-compliance of certain conditions without considering merits of the case -IT : Where assessee filed an application seeking stay of demand during course of appellate proceedings which was dismissed by Assessing Officer on ground that assessee had not fulfilled conditions stipulated in instructions of C.B.D.T., without observing as to under what circumstances, assessee had not made out a prima facie case, impugned order so passed deserved to be set aside Read More
  
 [2014] 50 taxmann.com 240 (Bombay)
Sum paid to resident to advertise TV channels in India won't attract TP provisions even if it benefits NR Principal -IT/ILT : Payments made by resident agent to residents by way of ad spends are not international transactions u/s 92 Read More
  
 [2014] 49 taxmann.com 203 (Gujarat)
Sec. 158BD block assessment could be made against the Co. even if seized material related to its director -IT : Where in course of search proceedings in case of 'M' group, certain incriminating material relating to assessee-company was seized, initiation of block assessment proceedings under section 158BD against assessee could not be challenged by raising a plea that material seized related to director of assessee-company only and not to company itself Read More
  
 [2014] 49 taxmann.com 510 (Bombay)
Trust imparting training in area of pre-sea and post-sea activities is eligible for relief under sec. 11 -IT: Where assessee trust imparted education in area of pre-sea and post-sea training to seamen so as to prepare them for all duties, it would be liable for deduction under section 11 Read More
  
 [2014] 49 taxmann.com 208 (Bombay)[2014] 364 ITR 632 (Bombay)
ITAT had to consider legal effect of amalgamation and winding-up order while deciding penalty proceedings -IT: Effect of order of amalgamation and winding up of assessee on penalty proceedings being a legal issue to be answered by Tribunal which had admitted that question and additional evidence in that regard; remand to Assessing Officer was unjustified Read More
  
 [2014] 49 taxmann.com 400 (Calcutta)
Revenue couldn't plead that assessee was agent of NR without challenging non-taxability of NR in India -IT/ILT : Where revenue did not prefer appeal against order of Tribunal holding that amount received by non-resident from assessee was not taxable in India, question as to whether assessee could be treated as agent of said non-resident or not became academic Read More
  
 [2014] 49 taxmann.com 205 (Bombay)
Advance received on sale of holiday package can’t be taxed if it is to be refunded on non-utilization of package -IT : Where a holiday scheme introduced by assessee obliged assessee to refund not only advance but also surrendered value in case of non-utilization of scheme, assessee incurred liability and no income accrued to assessee on receipt of advance Read More
  
 [2014] 49 taxmann.com 15 (Gujarat)
HC quashed reassessment as it was initiated solely at instance of audit party’s objections -IT: Reassessment at instance of audit party on account of non-inclusion of excise duty refund in total income was unjustified Read More
  
 [2014] 49 taxmann.com 17 (Allahabad)
HC deletes penalty as AO didn’t record his satisfaction regarding levy of penalty on non-compliance with sec. 44AB -IT : Where Assessing Officer had failed to record its satisfaction in assessment order that assessee had not obtained audit report well on time and further, there was no whisper in said assessment order regarding levy of penalty, no penalty would be leviable Read More
  
 [2014] 49 taxmann.com 202 (Madras)
HC extended limitation period for investment under sec. 54EC as specified bonds weren’t available in market -IT: Assessee's right to make investment within six months cannot be curtailed only for reason of non-availability of specified bonds in market for a period at time of expiry of stipulated six months Read More
  
 [2014] 49 taxmann.com 200 (Bombay)
Whole premium paid on Keyman Insurance policy was deductible even if policy cover extended to next year -IT-I : Where assessee earned certain income from sale of shares, in view of fact that assessee utilised its own funds to purchase shares and, moreover, it carried out only a few transactions in said shares during relevant year, income in question was liable to be taxed as capital gain Read More
  
 [2014] 50 taxmann.com 300 (Bombay)
Alleged short-fall in receipt of share premium couldn’t be charged to tax; Chapter X has no charging provision: HC -Alleged short-fall in receipt of share premium couldn’t be charged to tax; Chapter X has no charging provision: HC Read More
  
 [2014] 49 taxmann.com 16 (Gujarat)
Interest received by co-operative bank on its voluntary reserves with banks is eligible for sec. 80P relief -IT: Interest income received by a co-operative bank on its voluntary reserve in bank, bonds and small scale industrial corporation is eligible for deduction under section 80P Read More
  
 [2014] 49 taxmann.com 10 (Bombay)
Reassessment upheld as bogus purchases unearthed during survey weren’t subject matter of scrutiny proceedings -IT: Where in course of survey it was found that assessee made certain purchases under bogus bills, since occasion to consider genuineness of those purchase bills was never a subject matter of scrutiny in proceedings under section 143(3), initiation of reassessment proceedings in such a situation was justified Read More
  
 [2014] 49 taxmann.com 13 (Delhi)[2013] 263 CTR 714 (Delhi)
HC deletes sec. 68 addition as assessee had furnished records to justify creditworthiness of share applicants -IT: Where identity of share applicants had been established and their bank accounts, IT returns and balance sheet in addition to confirmation letters were produced, addition under section 68 was to be deleted Read More
  
 [2014] 49 taxmann.com 101 (Gujarat)
HC treated deposit in bank as unexplained money when assessee failed to show it as a business transaction -IT: Where assessee declaring income from salary and interest, was found in possession of certain cash, in view of fact that assessee failed to bring any evidence on record in support of his explanation that said amount belonged to his business transactions, AO was justified in adding same to assessee's taxable income as unexplained money Read More
  
 [2014] 49 taxmann.com 14 (Bombay)[2014] 268 CTR 429 (Bombay)
Incentive given to distributors under sales promotion scheme couldn’t be held as commission to attract sec. 194H -IT : Where assessee offered incentive to distributors/stockists on meeting of sales target on principal to principal basis, that incentive could not be treated as commission payment under section 194H Read More
  
 [2014] 50 taxmann.com 50 (SC)
Wait-listed candidate to be appointed as member of ITAT as vacancy arose when vigilance clearance denied to others -IT : Where in course of examination for appointment of Members of Tribunal, petitioner was placed in waiting list but his appointment was not confirmed on account of contention made by Union of India that it would make suitable amendment in Rules for said purpose, in view of fact that fresh selection process was started without making any such amendment in Rules, instant petition was to be allowed with a direction to consider appointment of petitioner on basis of his position in waiting list Read More
  
 [2014] 49 taxmann.com 182 (Delhi)[2014] 361 ITR 73 (Delhi)[2014] 265 CTR 332 (Delhi)
Payment of interest/penalty in first instance does not lead to waiver of penalty as waiver is at discretion of CIT -IT : In order to qualify for relief under section 273A, question of making payment of penalty and interest in first instance can not arise because if such a construction is adopted, object of conferring discretion on Commissioner itself would be defeated Read More
  
 [2014] 49 taxmann.com 57 (Allahabad)
Interest couldn’t be recovered through demand notice if it wasn’t charged in an assessment order: HC -IT : If assessment order does not specify charging of interest under a specific section, then it could not be charged or levied under section 156 Read More
  
 [2014] 49 taxmann.com 69 (Gujarat)
Block assessment under sec. 158BD doesn’t necessitate initiation of legal and valid search proceedings -IT: There is no requirement under provisions of Act that block assessment proceedings under section 158BD can be initiated only in pursuance of legal and valid search proceedings under section 132 Read More
  
 [2014] 49 taxmann.com 477 (Madras)
No TDS on sums paid for hiring of ships as resultant gain was taxable only in Singapore under India-Singapore DTAA -IT/ILT : Where JOPL, a Singaporean company, under an agreement, provided ships to assessee for transportation of coal between two Indian ports, transaction was covered by article 8 of Indo-Singapore DTAA and income of JOPL from Indian operations was not taxable in India Read More
  
 [2014] 49 taxmann.com 12 (Rajasthan)[2014] 264 CTR 204 (Rajasthan)
No penalty if AO had accepted revised return without stating any deliberate concealment on part of assessee -IT : Concealment penalty not imposable where income declared by assessee from long-term capital gain by selling agricultural land in his revised return was accepted by assessing authority and there was no material available on record by which there could be an inference drawn by authority that it was a deliberate concealment on part of assessee Read More
  
 [2014] 49 taxmann.com 429 (Karnataka)
Amount paid by Mc Dowell to regain ownership of the manufacturing unit couldn’t be allowed as revenue exp., says HC -IT : Where assessee filed its return claiming exclusion of unclaimed credit balances written off, in absence of any material on record showing that said amount was already included in sales turnover of earlier years and suffered tax, impugned order passed by Tribunal allowing assessee's claim was to be set aside Read More
  
 [2014] 49 taxmann.com 168 (Karnataka)
Transformation of assessee from small scale industry to large scale won’t lead to denial of sec. 80-IB relief -IT : Where a small scale industry in course of 10 years stabilizes early and makes further investments in business which results in its going outside purview of definition of a small scale industry, that does not come in way of its claiming benefit under section 80-IB for 10 consecutive years, starting from initial assessment year Read More
  
 [2014] 49 taxmann.com 174 (Delhi)
Gains arising to assessee from captive consumption of electricity would be eligible for sec. 80-IA relief -IT : 'Profit and gain' from captive consumption of electricity supplied only to assessee by power plant of assessee will qualify for deduction under section 80-IA Read More
  
 [2014] 49 taxmann.com 56 (Bombay)[2014] 266 CTR 594 (Bombay)
Losses arising from sale of shares of affiliates couldn’t be doubted it was incurred due to commercial exigency -IT : Where assessee sold shares of a company at a price quoted at stock exchange whereas shares of sister concern were sold at loss because said company was in red, there being no doubt about genuineness of share transactions, assessee's claim for set off of loss arising from sale of shares of sister concern against income arising from shares of other company was to be allowed Read More
  
 [2014] 49 taxmann.com 59 (Allahabad)[2014] 365 ITR 268 (Allahabad)
Case transferred to another city as money of assessee was seized from property of his in-laws located in that city -IT : Case transferred to another city as money of assessee was seized from property of his in-laws located in that city Read More
  
 ITAT
  
 [2014] 50 taxmann.com 350 (Bangalore - Trib.)
Assessment in hands of trust quashed as trust deed clearly defined beneficiaries and their share of interest -IT: Where assessee, a revocable trust, was formed with object of making investment in mezzanine fund, in view of fact that trust deed gave clear description of beneficiaries/contributories and thus, those beneficiaries were not uncertain and moreover, as regards share of each beneficiary, trustees were duty bound to follow distribution mechanism specified in trust deed, conditions regarding applicability of section 164(1) did not satisfy and, thus, assessment made in hands of assessee-trust in t Read Morenew
  
 [2014] 49 taxmann.com 288 (Bangalore - Trib.)
AO to consider sec. 54B relief after verifying revenue records indicating status of land as agricultural: ITAT -IT : Where in support of claim for deduction under section 54B, assessee produced revenue record showing that land acquired by State Government was used for agricultural purpose, since said evidence was not considered by authorities below while rejecting assessee's claim, impugned order passed by them was to be set aside Read Morenew
  
 [2014] 49 taxmann.com 183 (Mumbai - Trib.)
AO can’t seek to add notional interest for shares pledged by a co. to enable its sister concern to raise borrowings -IT : Where borrower issued shares to assessee-NBFC as a measure of repaying loans and, since interest was waived by assessee-NBFC, borrower had not booked liability toward current year's interest in its account books, such interest did not form income to assessee for year Read Morenew
  
 [2014] 49 taxmann.com 531 (Mumbai - Trib.)
No disallowance of TDS if tax liability arose subsequently due to retro-amendment to definition of royalty -IT/ILT: Where assessee had made payments for sales promotion activities, in foreign currency and tax authorities had failed to show that payment received by non-resident was liable to tax in India either in terms of Indian Income tax Act or in terms of Indo-US DTAA, assessee was not liable to deduct TDS on such payments made to a foreign resident Read Morenew
  
 [2014] 50 taxmann.com 323 (Delhi - Trib.)
Commercial expediency for an exp. is assessee's decision; TPO shall only compute its ALP in uncontrolled conditions -IT/ILT : TPO cannot treat Arm's Length Price of services paid for as 'Nil' by considering the services as worthless so long as the agreement under which they are rendered is not a sham and services are actually rendered under the agreement by the other party. All that TPO can see is at what price similar services, whatever be their worth, are actually rendered in uncontrolled conditions. Whether services are commercially expedient or not is a call for the assessee to take and not for the TPO to Read Morenew
  
 [2014] 50 taxmann.com 324 (Delhi - Trib.)
Sec. 144C assessment order had to be quashed if AO didn't furnish draft assessment order to assessee -IT/ILT : Assessment order u/s 144C is illegal and liable to be quashed if draft assessment order to which assessee is entitled to u/s 144C(15) is not furnished to the assessee by AO to enable assessee to approach DRP if he wants Read Morenew
  
 [2014] 49 taxmann.com 274 (Jaipur - Trib.)[2014] 31 ITR(T) 513 (Jaipur - Trib.)[2014] 160 TTJ 529 (Jaipur - Trib.)
Receipt on account of carbon credit given to assessee is a capital receipt -IT : Where a basket of 'market value' was available for computing profitability of an undertaking on captive consumption of power, assessee could choose any one of them as market value Read More
  
 [2014] 49 taxmann.com 361 (Mumbai - Trib.)
Assessee can’t escape from concealment penalty by declaring income pursuant to survey proceedings -IT : Where assessee, engaged filed a revised return pursuant to survey proceedings declaring certain undisclosed income, said return could not be regarded as a voluntary return and, therefore, assessee being guilty of concealment of particulars of income, was liable to pay penalty under section 271(1)(c) Read More
  
 [2014] 49 taxmann.com 411 (Pune - Trib.)[2014] 162 TTJ 74 (Pune - Trib.)
CIT couldn't make addition on money lending activity if it wasn't a subject matter of assessment before AO -IT : Where money lending activity was not subject matter of assessment before Assessing Officer, Commissioner (Appeals) erred in making addition on said issue Read More
  
 [2014] 49 taxmann.com 358 (Chennai - Trib.)[2014] 32 ITR(T) 178 (Chennai - Trib.)
CIT had to verify only objects of trust for its registration even if it hadn’t commenced charitable activities -IT : Commencement of activity is not a pre-condition for registration of trust when objects of trust and its genuineness is not questioned Read More
  
 [2014] 49 taxmann.com 532 (Pune - Trib.)
ITAT directs AO to re-examine ALP as assessee had filed annual reports of comparables rejected by TPO -IT/ILT: Where TPO rejected comparables given by assessee on ground that annual report of those companies were not available, however, assessee filed financial summaries of those 9 companies and annual reports in case of 7 companies out of 9 companies, matter required readjudication Read More
  
 [2014] 50 taxmann.com 322 (Delhi - Trib.)
Adjustment for under-utilized capacity to be made in comparables and not in the profits earned by assessee -IT/ILT : In view of provisions of Rule 10B(1)(e)(iii) of Income-tax Rules, 1962, relief granted by Commissioner (Appeals) by making adjustments on account of capacity under utilisation in results shown by tested party i.e. assessee herein and thus computing hypothetical financial results which tested party would have achieved in perfect conditions was impermissible in law 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] 49 taxmann.com 362 (Delhi - Trib.)
ITAT directs revenue to grant wealth tax exemption in respect of one house property owned by assessee -WT: Wealth tax exemption is available to single residential property Read More
  
 [2014] 49 taxmann.com 323 (Kolkata - Trib.)
AO couldn’t invoke sec. 40A(3) to disallow cash payments if he had made additions by rejecting books -IT : Where Assessing Officer treated a part of sundry creditors as non-genuine taking a view that assessee could not file any details or no explanation was offered in respect to them, in view of fact that liability in question still existed in assessee's books of account, impugned addition was to be deleted Read More
  
 [2014] 49 taxmann.com 365 (Mumbai - Trib.)
Comparable co. couldn't be excluded from list of comparables even if it belonged to a group having high brand value -IT/ILT : A company engaged in financial reporting or NAV support services or investment accounting could not be compared with a company providing marketing and sales support services in respect of marine equipments Read More
  
 [2014] 49 taxmann.com 300 (Jodhpur - Trib.)[2013] 27 ITR(T) 773 (Jodhpur - Trib.)
Mere substantial hike in salary of directors won’t be enough to treat it as unreasonable without any evidence -IT-I : In absence of any material brought on record to show how and in what manner to show salary paid to directors was excessive or not comparable with market rates, no part of such remuneration could be disallowed under section 40A(2) Read More
  
 [2014] 49 taxmann.com 248 (Hyderabad - Trib.)
DIT(E) can’t function as AO to examine conditions stipulated under Sec. 11 while granting Sec. 12AA registration -IT : For achieving main charitable object if an institution carries on some commercial activity and generates profit therefrom such activities cannot be considered to be business activity with profit motive so long as profit earned is utilized for purpose of achieving charitable object Read More
  
 [2014] 49 taxmann.com 319 (Mumbai - Trib.)[2014] 160 TTJ 680 (Mumbai - Trib.)
ITAT treated gains from share transaction as capital gains as shares were held for relatively longer period -IT: Where no funds were borrowed for purchasing shares, scrips were not repeatedly and frequently sold and purchased, and there was relatively long holding period, activity of share transaction would be treated as investment activity and not as business activity Read More
  
 [2014] 49 taxmann.com 366 (Jodhpur - Trib.)[2014] 163 TTJ 1 (Jodhpur - Trib.)
No further hike in GP rate if earlier additions were made after considering the undisclosed income -IT : Where after including income surrendered during survey on account of excess stock, gross profit rate became more than that worked out by AO, no addition could be made on account of low GP rate Read More
  
 [2014] 49 taxmann.com 409 (Hyderabad - Trib.)
A Co. having high turnover and brand value excludible from list of comparables for TP study -IT/ILT : A comparable company should have comparable brand value, comparable turnover and comparable business activities; there should be no extraordinary events in relevant year Read More
  
 [2014] 49 taxmann.com 333 (Cochin - Trib.)
Sec. 12AA doesn’t require audit clause in trust’s deed; CIT directed to examine genuineness of trust’s activities -IT : Where Administrative Commissioner rejected assessee's application for registration under section 12AA without examining genuineness of activity of trust, matter was to be readjudicated Read More
  
 [2014] 49 taxmann.com 189 (Jaipur - Trib.)[2014] 160 TTJ 665 (Jaipur - Trib.)
No sec. 69B addition in hands of assessee when he was dealing in land as broker on behalf of investors -IT: Where assessee-broker was initially purchasing land in name of his associate and then transferring same to investor, no addition could be made on account of undisclosed investment Read More
  
 [2014] 49 taxmann.com 220 (Chandigarh - Trib.)[2014] 32 ITR(T) 181 (Chandigarh - Trib.)
No sec. 194C TDS if transportation charges received from parties were paid by AOP to its members for hiring trucks -IT : Where assessee-AOP paid transportation charges received from different parties to its members whose trucks were taken on hire for rendering transportation services, assessee was not liable to TDS Read More
  
 [2014] 49 taxmann.com 294 (Delhi - Trib.)[2014] 30 ITR(T) 277 (Delhi - Trib.)
No tax on receipt of development fee by charitable school if it was incurred for welfare of students -IT : Where society, running school, had received development fund as part of students fee which was utilised in amenities and welfare of students, same was to be regarded as capital receipt not chargeable to tax Read More
  
 [2014] 49 taxmann.com 295 (Cuttack - Trib.)[2013] 28 ITR(T) 530 (Cuttack - Trib.)
No sec. 69 addition merely due to difference found in reconciliation statements of suppliers and assessee -IT : Mere on difference in reconciliation of accounts of suppliers and assessee, it could not be presumed that assessee had made purchases outside books of account Read More
  
 [2014] 49 taxmann.com 476 (Mumbai - Trib.)
Cos involved in banking, finance services aren't comparable with a Co. providing investment advisory services -IT/ILT : Where TPO made adjustment to assessee's ALP in respect of rendering investment advisory services to AE on basis of average mean margin of his own set of comparables, in view of fact that some of those comparables were engaged in business of merchant banking, corporate finance etc. and, thus, there being functional difference, impugned adjustment was to be set aside Read More
  
 [2014] 49 taxmann.com 185 (Jodhpur - Trib.)[2013] 158 TTJ 260 (Jodhpur - Trib.)
No penalty on disclosure of income after search proceedings as time-limit for filing belated return wasn’t expired -IT : Where after search in case of husband, assessee-wife filed return in response to notice under section 153C and income declared was accepted in assessment, in view of fact that sufficient time was still available for filing return, under section 139(4), assessee could not be held guilty of concealment liable to penalty Read More
  
 [2014] 49 taxmann.com 91 (Ahmedabad - Trib.)
Transfer of shares under a family arrangement to equalize the wealth of family members won’t be deemed as gift -IT : An equalization of wealth has only monetary connotation; transfer of shares/assignment of right by members to a family company in terms of family arrangement for equalization of wealth among members in family company cannot be said to be voluntary and, hence, cannot be held to be gift; income therefrom to be considered in computing book profit Read More
  
 [2014] 49 taxmann.com 259 (Chennai - Trib.)[2014] 32 ITR(T) 309 (Chennai - Trib.)
Any reduction made from export turnover had to be reduced from total turnover as well to compute sec. 10B relief -IT : While computing deduction under section 10B whatever is to be reduced from export turnover has to be reduced from total turnover as well Read More
  
 [2014] 49 taxmann.com 340 (Mumbai - Trib.)
No denial of sec. 10(23EA) relief to NSE investor protection fund even if it had already claimed sec. 11 relief -IT : Where NSE Investor Protection Fund Trust claimed exemption under section 11 stating that none of beneficiaries were trading member of NSE which revenue did not accept, matter was to be decided afresh Read More
  
 [2014] 49 taxmann.com 408 (Mumbai - Trib.)[2014] 159 TTJ 706 (Mumbai - Trib.)
Sum received for laying and installation of pipelines couldn't be treated as 'FTS'; taxable under sec. 44BB -IT/ILT : Where assessee providing technical and engineer service, was given a turnkey project for laying and installation of pipelines, provisions of section 44BB would clearly apply Read More
  
 [2014] 50 taxmann.com 221 (Delhi - Trib.)
No tax on advance received by NHPC against depreciation as it was part of tariff and it would reduce future tariff -IT : Where assessee, a public sector company, engaged in selling electricity to State Electricity Boards, received Advance Against Depreciation (AAD) by way of tariff charges which was to be adjusted against future depreciation so as to reduce tariff in future years, amount so received was to be regarded as liability and, thus, not includible in computation of taxable income Read More
  
 [2014] 50 taxmann.com 150 (Cochin - Trib.)
ITAT interprets Formula prescribed under Rule 8D for allocating common interest exp. -IT : Interest expenses directly attributable to tax exempt income as also directly attributable to taxable income, are required to be excluded from computation of common interest expenses to be allocated under rule 8D(2)(ii) of Income-tax Rules, 1962 Read More
  
 [2014] 49 taxmann.com 334 (Pune - Trib.)
No TDS on sums paid to transporters if assessee had collected their correct PAN -IT : Where in respect of payments made to transporters, assessee rectified PAN of those transport operators who had given wrong PAN originally, Assessing Officer could not deny benefit of section 194C(6) in respect of said payments Read More
  
 [2014] 49 taxmann.com 325 (Kolkata - Trib.)
Sec. 80-IB relief allowed to assessee as it was treated as manufacturer under Excise Laws -IT : Where assessee was engaged in manufacturing LED based aviation signalling, warning, traffic lights, push buttons, selector switch, lamp holders, LED modules/lamps/indicators, in view of fact that Central Excise Department recognised assessee as manufacturer and callected excise duty from it, assessee's claim for deduction under section 80-IB was to be allowed Read More
  
 [2014] 49 taxmann.com 271 (Mumbai - Trib.)[2014] 160 TTJ 136 (Mumbai - Trib.)
No denial of sec. 80-IB(10) relief to JV partner in housing project if similar deduction was given to other partner -IT: No denial of sec. 80-IB(10) relief to JV partner in housing project if similar deduction was given to other partner Read More
  
 [2014] 49 taxmann.com 352 (Delhi - Trib.)
ITAT directs TPO to re-examine as to whether operations carried by NR outside India was related to its Indian PE -IT/ILT : Where in case of assessee, an Australian company, engaged in installation of infrastructure in form of platform and pipelines for ONGC, TPO made certain addition taking a view that certain services such as fabrication and designing were performed outside India but revenue earned from those operations were attributable to assessee's PE in India, in view of objection raised by assessee to proposed addition, matter was to be remanded back to TPO for disposal afresh after taking into consid Read More
  
 [2014] 49 taxmann.com 293 (Delhi - Trib.)[2014] 164 TTJ 1 (Delhi - Trib.)
Interest credited by SBI to deposits made under ‘Site Restoration Account’ won’t attract sec. 194A TDS -IT : Where a deposit is not in nature of time deposit, then it is not amenable to provisions of section 194A Read More
  
 [2014] 49 taxmann.com 314 (Kolkata - Trib.)[2014] 32 ITR(T) 336 (Kolkata - Trib.)
No TDS liability under sec. 194H if exp. incurred for rendering free services were wrongly recorded as commission -IT : Where payment of rent did not exceed limit of Rs. 1,20,000 specified under section 194-I, assessee was not liable to deduct TDS Read More
  
 [2014] 49 taxmann.com 270 (Mumbai - Trib.)
Investment in new residential house within a year prior to sale of capital asset would provide sec. 54F relief -IT: Investment made for purchase of new residential house within a year even prior to sale of capital asset raising LTCG would be entitled to section 54F exemption Read More
  
 [2014] 49 taxmann.com 272 (Amritsar - Trib.)[2014] 31 ITR(T) 186 (Amritsar - Trib.)[2014] 161 TTJ 28 (Amritsar - Trib.)(UO)
No sec. 69A addition in hands of buyer for cash received from builder if it was already taxed in hands of latter -IT : Where cash payment in sale of land was denied by both parties and said cash amount had already been taxed in hands of builder, addition of same in hands of assessee was not sustainable Read More
  
 [2014] 49 taxmann.com 62 (Mumbai - Trib.)[2014] 160 TTJ 70 (Mumbai - Trib.)
Sec. 80-IB relief available to assessee as its activity of clinical research was approved by prescribed authority -IT: Where activity of clinical trials was duly approved by prescribed authority, only after complete satisfaction as to nature of activity, infrastructure of company and its past record and extended further twice, deduction under section 80-IB could not be denied Read More
  
 [2014] 49 taxmann.com 74 (Chandigarh - Trib.)[2014] 161 TTJ 359 (Chandigarh - Trib.)
Acceptance of share application money in cash couldn’t be deemed as loan or deposit in violation of sec. 269SS -IT : Money accepted as share application money cannot be termed as loan or deposit for purpose of section 269SS read with section 271D Read More
  
 [2014] 49 taxmann.com 169 (Delhi - Trib.)
Addition due to unaccounted consignment sales was against the Accounting Standard issued by ICAI, says ITAT -IT : Addition made to assessee's income on account of consignment sales not included in turnover was against guidelines issued by ICAI and thus same deserved to be deleted Read More
  
 [2014] 49 taxmann.com 23 (Mumbai - Trib.)
No depreciation to assessee against income from house property as standard deduction was available on it -IT : Where rent received by assessee from leasing of business centre was treated as 'income from house property', assessee's claims for deduction of depreciation and administrative expenses against rental income could not be allowed Read More
  
 [2014] 49 taxmann.com 9 (Jaipur - Trib.)
ITAT adopts interest rate of corporate bonds to determine ALP of interest on loans granted to AEs -IT/ILT : Where assessee proposed interest rate to be charged at rate of 8.9 per cent on interest-free loan advanced to its subsidiary company to determine ALP, there being lower risk involved it was reasonable Read More
  
 [2014] 49 taxmann.com 188 (Chennai - Trib.)[2014] 29 ITR(T) 747 (Chennai - Trib.)
Full depreciation allowed on windmills as Electricity board affirmed beginning of operations for more than 180 days -IT : Where by State Electricity Board certified that assessee had generated power by using windmills for more than 180 days in relevant year, depreciation at full rate of 80 per cent was to be allowed on those windmills Read More
  
 [2014] 49 taxmann.com 70 (Hyderabad - Trib.)
CIT couldn’t exercise revisionary power if AO accepted book profit for MAT purposes after reducing prior period exp. -IT: Where Assessing Officer accepted book profit under section 115JB, no revision under section 263 could be done on ground that prior period expenditure had been reduced while computing book profit Read More
  
 [2014] 49 taxmann.com 184 (Hyderabad - Trib.)[2013] 28 ITR(T) 157 (Hyderabad - Trib.)
No disallowance of exp. under sec. 40(a)(ia) if TDS was deposited before due date of filing return -IT : Where assessee deposited TDS amount before due date of filing of return, no disallowance could be made under section 40(a)(ia) Read More
  
 [2014] 49 taxmann.com 96 (Cochin - Trib.)
ITAT directs CIT(A) to consider claim under sec. 10(23C)(iiiab) after getting details of Govt. grants received by trust -IT: Registration of a trust/institution under section 12A is a condition precedent for availing benefit under sections 11 and 12 Read More
  
 [2014] 49 taxmann.com 58 (Ahmedabad - Trib.)[2014] 160 TTJ 51 (Ahmedabad - Trib.)(UO)
Commission paid to proprietor’s son for acquiring sales order was allowable as deduction -IT : Where sub-agents, who were assessee's sons, acquired orders for assessee agent, commission paid to them was to be allowed Read More
  
 [2014] 49 taxmann.com 11 (Mumbai - Trib.)
No denial of sec. 36(1)(viia) benefit to rural branches considering population of panchayats located in said areas -IT : In terms of section 36(1)(viia), scope of definition of 'a place where branch of bank is situated' cannot be extended beyond rural unit being village as recognized in census report Read More
  
 [2014] 49 taxmann.com 83 (Bangalore - Trib.)
Interest under sec. 220 was to be computed from date of initial notice when revised demand notice was set aside -IT : Where pursuant to order of Tribunal, demand raised against assessee was revised, it could not be equated with actual payment of tax demanded in notice of demand and, therefore, when High Court reversed order of Tribunal, demand got revived from inception and, in such circumstances, Assessing Officer was justified in calculating interest under section 220(2) from date of notice of demand till date of actual payment Read More
  
 [2014] 49 taxmann.com 244 (Delhi - Trib.)
Royalty payments to AE allowed in prior years couldn’t be disallowed in later years without any change of facts -IT/ILT : Where TPO rejected assessee's claim for payment of royalty in respect of technical assistance rendered by AE, in view of fact that said payment had been allowed in earlier years, in absence of any change in circumstances, impugned disallowance made during relevant year deserved to be deleted Read More
  
 Statutes
  
PRESS RELEASE
Info on black money can't be disclosed due to confidentiality clause in treaties; MoF seeks clarity on SC's order -IT/ILT : Section 90 of The Income-Tax Act, 1961 – Double Taxation Agreement - Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign Countries – Press Release on Filing of I.A. NO.14 IN WP(C) NO.176 OF 2009 (Ram Jethmalani & ORS. V. Union of India), by Union of India Read Morenew
  
CIRCULAR NO.15/2014 [F.NO.133/50/2014-TPL]
CBDT prescribes conditions to get automatic approval for long term bonds for concessional TDS under Sec. 194LC -IT/ILT : Section 194LC of The Income-Tax Act, 1961 - Income by Way of Interest from Indian Company - Approval of Long Term Bonds and Rate of Interest for the Purpose of Section 194LC Read Morenew
  
PRESS RELEASE
CBDT extends due date of filing TDS/TCS returns in State of Andhra Pradesh, J&K, Odisha and Telangana -IT/ILT : Last Date of Filing of TDS/TCS Statements for Second Quarter of Financial Year 2014-15 for Deductors/Collectors in States of Andhra Pradesh, Jammu & Kashmir, Odisha & Telangana Extended Read More
  
NOTIFICATION NO. GSR 705(E) [F.NO.2/4/2014-NS-II]
Govt. notifies revised 'Kisan Vikas Patra Rules' -IT : Kisan Vikas Patra Rules, 2014 Read More
  
PRESS RELEASE
CBDT speeds up refund claims of taxpayers of J&K due to devastation caused by floods -IT : Section 139 of the Income-Tax Act, 1961 - Return of Income - Expeditious Process for Refunds Claims of Taxpayers Residing in State of Jammu & Kashmir - Where Refund Cheques Could not be Delivered at Address Indicated by Taxpayers in Their Returns Due to Dislocation Caused by Floods to Update Their Address for Delivery of Their Refund Cheques. Read More
  
NOTIFICATION NO.48/2014 [F.NO.142/8/2014-TPL]/SO 2
CBDT notifies I-T authority that shall possess power to demand info/docs from assessee for an enquiry/proceeding -IT : Income-Tax (Tenth Amendment) Rules, 2014 – Insertion of Rule 12D Read More
  
CIRCULAR NO. 14/2014 [F.NO.178/84/2012-ITA.I]
CBDT relaxes limit on existing manpower so transferred in new SEZ units; raises limit from 20% to 50% -IT : Section 10A, Read with Section 10AA of the Income - Tax Act, 1961 - Free Trade Zone - Clarification on Allowability of Deduction Under Section 10A/10AA on Transfer of Technical Manpower in Case of Software Industry Read More
  
 News
  
Swiss to share info on black money, says FM -Swiss to share info on black money, says FM [18-10-2014] Read Morenew
  
SC grants bail to Jayalalithaa -SC grants bail to Jayalalithaa [18-10-2014] Read Morenew
  
NDA toes line of UPA on disclosing info -NDA toes line of UPA on disclosing info [18-10-2014] Read Morenew
  
Revenue Secretary Sh. Shaktikanta Das and his Swiss counterpart, State Secretary Jacques de Watteville, sign Joint statement in Bern -Revenue Secretary Sh. Shaktikanta Das and his Swiss counterpart, State Secretary Jacques de Watteville, sign Joint statement in Bern [16-10-2014] Read More
  
Nokia hopes for early nod to sell facility -Nokia hopes for early nod to sell facility [15-10-2014] Read More
  
Govt likely to defer GAAR rollout from April 1, 2015: Srcs -Govt likely to defer GAAR rollout from April 1, 2015: Srcs [14-10-2014] Read More
  
Analysing HC order on Voda transfer pricing: CBDT -Analysing HC order on Voda transfer pricing: CBDT [14-10-2014] Read More
  
HC adjourns Shell tax case to Nov 18 -HC adjourns Shell tax case to Nov 18 [14-10-2014] Read More
  
Vodafone wins Rs. 3,200- cr tax dispute in Bombay HC -Vodafone wins Rs. 3,200- cr tax dispute in Bombay HC [13-10-2014] Read More
  
India, Japan to Sign APA to Untie Tax Tangles -India, Japan to Sign APA to Untie Tax Tangles [10-10-2014] Read More
  
CBDT Clears Air on Benefits to IT Cos for SEZ Operations -CBDT Clears Air on Benefits to IT Cos for SEZ Operations [10-10-2014] Read More
  
Net Direct Tax Collection up 7% at Rs 2.68 Lakh Crore -Net Direct Tax Collection up 7% at Rs 2.68 Lakh Crore [08-10-2014] Read More