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Direct Tax Laws
 [2014] 49 315 (Allahabad)[2014] 360 ITR 598 (Allahabad)
No denial of sec. 11 relief on non-filing of Form 10 if details about sums set apart for next year is furnished -IT : Section 11 exemption cannot be denied merely on ground of furnishing Form 10 information by way of letter Read Morenew
 [2014] 49 320 (Bombay)
Exp. on installation of computer software and lift was in nature of revenue exp., rules HC -IT : Expenditure incurred on installation of computer software, electrical work and installation of lifts was to be allowed as revenue expenditure Read Morenew
 [2014] 49 316 (Gujarat)
Mere writing off of provision would not trigger sec. 41(1) if it wasn’t claimed as deduction in prior years -IT : Where assessee only made a provision for a possible expenditure or liability and neither an allowance nor deduction was claimed, section 41(1) would not apply Read Morenew
 [2014] 49 318 (Madras)[2013] 359 ITR 630 (Madras)
Legal exp. incurred by developer to recover interest-free deposit from tenants was allowable as business exp. -IT : Licence fee paid by assessee to group resource company providing centralized resources to all group companies for availing valuable benefits, was allowable as business expenditure Read More
 [2014] 49 601 (Madras)
Commission paid to foreign agents for procuring export orders wasn't covered under the ambit of 'FTS’ -IT/ILT : Where assessee company paid commission to its non resident agents for services rendered for completion of its export commitment, assessee would not be liable to deduct TDS on said payment made Read More
 [2014] 49 308 (Gujarat)
Assessee couldn’t claim business losses if all exp. had been incurred to earn income from house property -IT: Where expenses had been incurred for purpose of earning of house property income and not in doing business and consequently there was no business loss which could be set off against income from house property, set off was rightly disallowed Read More
 [2014] 49 437 (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 More
 [2014] 49 331 (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] 49 336 (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] 49 332 (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] 49 273 (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] 49 267 (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] 49 262 (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] 49 296 (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] 49 217 (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] 49 221 (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] 49 298 (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] 49 212 (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] 49 215 (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] 49 216 (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] 49 326 (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] 49 299 (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] 49 289 (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] 49 324 (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] 49 167 (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] 49 171 (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 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 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 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] 49 201 (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] 49 204 (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] 50 240 (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] 49 203 (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] 49 510 (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] 49 208 (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] 49 400 (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] 49 205 (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 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 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] 49 202 (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] 49 200 (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] 49 431 (Amritsar - Trib.)
Assessment to be made within 1 year of revival of proceeding if it got revived on non-payment of taxes to Setcom -IT : Tax being un-paid till specified date, proceedings before Settlement Commission was to be held abated Read Morenew
 [2014] 49 436 (Panaji - Trib.)
ITAT directs TPO to re-examine ALP as assessee was in first year of operation and had incurred high import duty -IT : Where variation in arm's length price took place because assessee company was in its first year of operation and it incurred higher expenditure on import duty on raw material, matter was to be remanded to TPO for re-consideration Read Morenew
 [2014] 49 478 (Mumbai - Trib.)
ITAT directs AO to decide whether receipt for customized research/retail management services would royalty or FTS -IT/ILT : Where assessee, a US based company, received certain amount from rendering customised research services and retail management services to its group concerns located in India, conclude as to whether consideration received by assessee company would fall within meaning of 'Royalty' or 'Fees for included services', matter was to be remanded back for disposal afresh in light of article 12 of India USA DTAA Read Morenew
 [2014] 49 577 (Delhi - Trib.)
No TDS on commission paid to foreign agent for carrying out export sales outside India -IT/ILT: Where a non-resident agent of an Indian company operates outside country and payment is remitted directly abroad, merely because an entry in books of Indian Company is made, it does not mean that the non-resident has received any payment in India Read Morenew
 [2014] 49 26 (Hyderabad - Trib.)[2014] 150 ITD 461 (Hyderabad - Trib.)
Cultivation of land and its classification as agricultural land in revenue records proved it as a agricultural land -IT-I : Where pursuant to search carried out in case of 'P', Assessing Officer recorded a satisfaction note that certain incriminating material seized belonged to assessee and, it was on basis of said satisfaction recorded in course of proceedings under section 153A, assessment proceedings were initiated in case of assessee under section 153C, there being no infirmity in procedure adopted by revenue, validity of impugned proceedings was to be upheld Read Morenew
 [2014] 49 576 (Ahmedabad - Trib.)
ITAT directs AO to examine technicality of a service before treating it as 'FTS' -IT/ILT : Where by nomenclature of services provided by assessee, a foreign company, to its associate concerns, it was not clear as to what technicality was involved, Assessing Officer shall examine relevant documents to ascertain nature of services rendered Read Morenew
 [2014] 50 379 (Delhi - Trib.)
ITAT allows benefit of second proviso to sec. 40(a)(ia) in case of payment to NR; Non-discrimination clause invoked -IT/ILT: Rigour of disallowance of payment under Section 40(a)(ia) is relaxed in case of payment to resident if recipient pays taxes on such sum and files return of income - Whether it would be contrary to scheme of DTAA and discriminatory if similar relaxation is not allowed under Section 40(a)(i) in case of payment to non-resident without withholding of taxes if such non-resident pays taxes on such sum and files return of income - Held Yes, Whether relaxation under second proviso to Section 40( Read More
 [2014] 50 378 (Cochin - Trib.)
Hire charges paid to UAE ship operating in international traffic was taxable only in UAE as per India-UAE DTAA -IT/ILT: Where for purpose of export, assessee hired vessel owned by a UAE company which operated only in international traffic/waters between India and Maldives, in view of Indo-UAE DTAA, hire charges paid to UAE company had to be taxed only in UAE Read More
 [2014] 49 396 (Chennai - Trib.)[2014] 31 ITR(T) 154 (Chennai - Trib.)
No denial of registration to trust on non-commencement of charitable activities without considering its objects -IT: Application for registration under section 12AA could not be rejected on ground that assessee had not started its activities or its objects were mixed; objects of trust to be considered Read More
 [2014] 49 426 (Cochin - Trib.)
Sec. 12AA registration denied as medical trust was collecting sum on assurance of admission in college -IT : Where assessee trust formed with an object of running a medical college, started collecting unaccounted money on assurance of providing employment and admission in said college even before obtaining recognition from MCI and affiliation from concerned university, it was to be concluded that its purpose was to run medical college with profit motive and, therefore, assessee's claim for registration under section 12AA was to be rejected Read More
 [2014] 49 291 (Mumbai - Trib.)
Sec. 14A disallowance can be triggered even in respect of investments yielding no exempt income -IT : Disallowance under section 14A, read with rule 8D is to be made not only in respect of income which does not form part of total income but also in respect of income which shall not form part of total income Read More
 [2014] 50 350 (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 More
 [2014] 49 288 (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 More
 [2014] 49 183 (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 More
 [2014] 49 531 (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 More
 [2014] 50 323 (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 More
 [2014] 50 324 (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 More
 [2014] 49 274 (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] 49 361 (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] 49 411 (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] 49 358 (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] 49 532 (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] 50 322 (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] 50 321 (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] 49 362 (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] 49 323 (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] 49 365 (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] 49 300 (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] 49 248 (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] 49 319 (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] 49 366 (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] 49 409 (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] 49 333 (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] 49 189 (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] 49 220 (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] 49 294 (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] 49 295 (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] 49 476 (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] 49 185 (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 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] 49 259 (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] 49 340 (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] 49 408 (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] 50 221 (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] 50 150 (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] 49 334 (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] 49 325 (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] 49 271 (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] 49 352 (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] 49 293 (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] 49 314 (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] 49 270 (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] 49 272 (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
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
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
Govt. notifies revised 'Kisan Vikas Patra Rules' -IT : Kisan Vikas Patra Rules, 2014 Read More
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
Vodafone, Government to Name Third Arbitrator by November 17 -Vodafone, Government to Name Third Arbitrator by November 17 [22-10-2014] Read Morenew
Tax pressure eases on existing AIFs -Tax pressure eases on existing AIFs [22-10-2014] Read Morenew
Black money names will embarrass Congress: Jaitley -Black money names will embarrass Congress: Jaitley [22-10-2014] Read Morenew
Swiss to share info on black money, says FM -Swiss to share info on black money, says FM [18-10-2014] Read More
SC grants bail to Jayalalithaa -SC grants bail to Jayalalithaa [18-10-2014] Read More
NDA toes line of UPA on disclosing info -NDA toes line of UPA on disclosing info [18-10-2014] Read More
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