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Direct Tax Laws
 [2014] 43 420 (Gujarat)
Tax dues couldn't be recovered from director if AO didn't make any efforts to recover it from company -IT : Provisions of section 179 can be invoked when any tax due from private company cannot be recovered from such company and, therefore, where Assessing Officer did not make any efforts for recovery of tax dues from company, question of inquiring with petitioner as a director of company to pay up said amount would not arise Read Morenew
 [2014] 43 430 (Madras)
Exemption disallowed as assessee failed to prove that his income was from agricultural operations -IT: Where assessee had not properly explained his receipt of income as agricultural income, exemption was to be disallowed Read Morenew
 [2014] 43 416 (Gujarat)
Matter remanded as AO didn't give an opportunity to assessee to explain genuineness of lease back transaction -IT : Where assessee-company claimed a certain amount by way of foreign travelling expenses of directors and employees and Assessing Officer disallowed such claim on ground that details called for were not furnished, but Tribunal following its order made in assessee's own case for earlier assessment years allowed claim of assessee, Tribunal committed an error in allowing travelling expenses without its full verification Read Morenew
 [2014] 43 415 (Gujarat)
TRO couldn't declare sale of property void under sec. 281 and attach property even if tax was overdue from seller -IT : Where assessee had purchased a property from one 'M' on 17-5-1995 and Tax Recovery Officer having found that 'M' inspite of several demand notices issued during years 1989 to 1994 had not paid income tax dues passed an order under section 281 declaring above sale transaction as void, Tax Recovery Officer had no power under section 281 to declare sale transaction as void Read Morenew
 [2014] 43 412 (Gujarat)
Interest for default in payment of advance tax couldn't be charged beyond stage of final order of Setcom -IT: Interest under sections 234B and 234C could not have been charged beyond stage of section 245D(1) Read Morenew
 [2014] 43 372 (Gujarat)
Reassessment to disallow sec. 80-IB deduction quashed as it was allowed originally after detailed enquiry -IT : Where Assessing Officer allowed assessee's claim for deduction under section 80-IB(10) after making detailed enquiries, he could not initiate reassessment proceedings on basis of same material taking a view that said claim was wrongly allowed Read Morenew
 [2014] 44 44 (Madras)
HC advises reference to articles and memorandum to identify principal business of co. for purposes of sec. 73 -IT : "Principal business" of a company has to be determined going by its memorandum and articles Read More
 [2014] 43 379 (SC)
Sec. 240 can't be triggered for assessment in search cases; no refund of taxes paid pursuant to block assessment -IT : Taxes paid pursuant to return filed in block assessment are not liable to be refunded Read More
 [2014] 43 317 (Gujarat)
Losses from off-market sale of shares allowed as no evidences were shown to establish their sale at below FMV -IT : Where there was no evidence to suggest that shares were sold at rates lower than prevailing market rates, disallowance of losses made by Assessing Officer was uncalled for and was to be deleted Read More
 [2014] 43 302 (Gujarat)
HC dismisses appeal against composite order as none of the assessees had minimum tax effect -IT : Where revenue filed composite appeals dealing with different assessees for different periods but in none of cases tax effect was higher than stipulated minimum threshold level, none of appeals would be maintainable Read More
 [2014] 43 371 (Delhi)
Assessment couldn't be reopened on basis of investigation report as it would amount to change of opinion -IT : Where Assessing Officer completed original assessment of assessee for assessment year 2005-06 under section 143(3) on 24-12-2007 and subsequently he issued on assessee a notice for reassessment on basis of investigation report dated 13-3-2006 received from investigation wing, since reasons to believe did not state that investigation report was not with Assessing Officer when he completed original assessment, attempt to reopen assessment was result of a change of opinion Read More
 [2014] 43 370 (Punjab & Haryana)
HC allowed wastage claimed by assessee as no doubt was casted on entries in stock register maintained by assessee -IT : Where assessee was engaged in manufacture of pins and steel bars and in assessment year 1990-91 it claimed wastage at 2.7 per cent and Tribunal allowed wastage at 2 per cent, when even slightest doubt had not been expressed with regard to genuineness of entries in stock register as also in other books of account of assessee, Tribunal was not correct in allowing wastage at 2 per cent instead of 2.7 per cent Read More
 [2014] 43 301 (Gujarat)
Excess warehousing charges invoiced to customer not taxable if it was disputed and pending before civil court -IT: Enhanced warehousing charges raised by assessee could not be added to income of assessee where such increase had been resisted by filing civil suit Read More
 [2014] 43 315 (Karnataka)
Exemption would be available to a trust even in respect of anonymous donations used for charitable purposes -IT : Any voluntary contribution received by a Charitable or religious trust shall be deemed to be income derived from property held under Trust to extent said contributions are used for charitable purposes even though assessee fails to disclose names and addresses of donors Read More
 [2014] 43 328 (Jharkhand)
Addition on basis of loose sheets found during search upheld as assessee failed to contradict same -IT: Where assessee has not adduced any rebuttal evidence to show that entries made in diary/loose sheets recovered during search are not income in hands of assessee, addition is to be upheld Read More
 [2014] 43 369 (Chhattisgarh)
Transfer order to ensure coordinated investigation was valid if opportunity wasn't denied to assessee -IT : Where case was transferred for centralized and coordinated investigation and there was no denial of reasonable opportunity to assessee, transfer order could not be set aside Read More
 [2014] 43 327 (Gujarat)
Additional depreciation allowable on machinery installed for purpose of manufacturing milk powder -IT : Where a distinct commodity, i.e., milk powder, was emerging from entire complex process and it could not be restored to original product (Milk), plant and machinery installed by assessee for purpose of manufacturing milk powder had to be allowed benefit of additional depreciation Read More
 [2014] 43 326 (Bombay)
Application for settlement rejected as assessment proceedings before AO had expired with efflux of time -IT: Application for settlement was rightly rejected, where on date of filing application before Settlement Commission there were no assessment proceedings pending with Assessing Officer as same had expired by efflux of time Read More
 [2014] 43 391 (Ahmedabad - Trib.)
Penalty set aside on revenue's failure to substantiate its claim of non-genuineness of wages paid in cash -IT: Where revenue had failed to prove that claim of expenses by assessee was not genuine or was inflated to reduce its tax liability, no penalty could be levied Read Morenew
 [2014] 44 22 (Mumbai - Trib.)
Wrong application of law calls rectification; interest connected with PE not taxable at concessional rate -IT/ILT: Where rate of withholding tax on interest under Indo-Japan DTAA was not in accordance with statutory provisions, rectification was just Read Morenew
 [2014] 43 426 (Pune - Trib.)
ITAT exempts capital gain on sale of self-generated trademark as its cost of improvement isn't ascertainable -IT/AAA: Where asset under transfer was self-generated trademark, its cost of acquisition being NIL and same is not capable of improvement at an ascertainable cost in terms of money, computation of capital gains is not possible and, thus, same is not taxable under section 45 Read More
 [2014] 43 377 (Mumbai - Trib.)
Revenue erred in denying registration to trust as it wasn't evident that sum was spent for non-charitable purpose -IT: Where from records it was evident that main and generic objects of Trust was 'education', being a charitable activity for general public utility and where income and expenditure statement filed did not indicate spending of same for objects narrated by Director (Exemption), proposition that it was premature to deny registration of Trust under section 12AA was correct Read More
 [2014] 43 380 (Mumbai - Trib.)
Forward contracts to hedge against forex losses from import or export of diamonds by jeweller aren't speculative -IT : Forward contracts which are integral part or incidental to core business of import/export of diamonds, in principle, constitute hedging transactions, and not speculative contracts Read More
 [2014] 43 399 (Hyderabad - Trib.)
CIT(A) couldn't cast TDS burden on foreign co. on purchase of Indian shares unless payment was taxable in India -IT/ILT : Where assessee, a French company, purchased shares of an Indian company from NRIs, Assessing Officer without ascertaining as to whether amount so paid was chargeable to tax in India, could not conclude that assessee was liable to deduct tax at source while making said payments Read More
 [2014] 43 368 (Amritsar - Trib.)
Sec. 80G approval denied to a society working for upliftment of Sikh community explicitly -IT: Approval under section 80G could not be given to a society which was working only for upliftment of a particular community and barred an outsider from becoming its member Read More
 [2014] 43 325 (Mumbai - Trib.)
Advance received for allotment of commercial space in an unapproved project held as deemed dividend -IT: Where assessee claimed a certain sum from companies as advance against allotment of some commercial space in a project but no approved plan of said project was produced, conduct of assessee clearly established concealment of facts and filing of inaccurate particulars and penalty was leviable upon assessee Read More
 [2014] 44 34 (Hyderabad - Trib.)
Co. with odd events of restructuring to be excluded from comparable list as it impacts its profitability -IT/ILT : Extraordinary events like merger and demerger have an effect on profitability of company in financial year in which such event takes place, and a company which is undergoing said events cannot be considered as comparable Read More
A Global Tax on the Superrich -A Global Tax on the Superrich [17-04-2014] Read Morenew
Pakistan publishes list of tax cheats -Pakistan publishes list of tax cheats [17-04-2014] Read Morenew
Scrap tax benefits of defaulter parties: EC -Scrap tax benefits of defaulter parties: EC [17-04-2014] Read Morenew
Five Points that Spook India Inc -Five Points that Spook India Inc [14-04-2014] Read More
No TDS on deposits doesn’t mean these are tax- free -No TDS on deposits doesn’t mean these are tax- free [15-04-2014] Read More