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Direct Tax Laws
  
 SC/HC
  
 [2015] 58 taxmann.com 264 (Bombay)
HC affirms Set Com order as application was rightly admitted and there was true disclosure of additional income -IT: Where at time of filing application before Settlement Commission, assessment proceedings were still pending and, moreover, disclosure of additional income appeared to be prima facie full and true, impugned order passed by Settlement Commission to proceed with application did not require any interference Read Morenew
  
 [2015] 58 taxmann.com 315 (Kerala)[2015] 273 CTR 582 (Kerala)(MAG.)
Offering additional income to end a scuffle couldn't be deemed as failure to make fair disclosure before SetCom -IT : Where there was no material with department to justify a demand of further amount from assessee and a sum was offered by assessee to put a quietus to matter, order passed by Settlement Commission to grant immunity from penalty and presecution in terms of section 245H could not be interfered with Read Morenew
  
 [2015] 58 taxmann.com 317 (Karnataka)[2015] 273 CTR 57 (Karnataka)
AO couldn't treat payer as assessee-in-default without examining his submission justifying non-deduction of tax -IT: Assessing Officer couldn't treat payer as assessee-in-default without examining his submission justifying non-deduction of tax Read Morenew
  
 [2015] 58 taxmann.com 333 (Karnataka)
Cost of additions or improvements on habitable house is also eligible for sec. 54F relief -IT: Where assessee while computing indexed cost of acquisition had taken value of sold asset as on 1-4-1981 at Rs. 280 per sq. ft. but as per Govt. notification value was at Rs. 45 per sq. ft., assessing authority was right in recording opinion that income chargeable to tax escaped assessment under section 147 Read Morenew
  
 [2015] 58 taxmann.com 374 (Gujarat)
After Delhi HC Gujarat HC also held that ITAT can extend stay beyond 365 days if delay isn’t due to assessee -IT : ITAT may extend stay of demand beyond 365 days if delay in disposing appeal not attributable to assessee Read More
  
 [2015] 58 taxmann.com 208 (Kerala)
No deduction of employee's contribution to PF if paid before due date of filing return but after due date of PF -IT: Belated payment of employees' contributions to provident fund cannot be allowed as deduction in terms of section 36(1)(va) Read More
  
 [2015] 58 taxmann.com 287 (Karnataka)
No disallowance of bad-debts just because it wasn't recognized as exp. in books of debtor -IT : Where assessee credited certain amount in its books and when it did not get any portion of it, wrote off same from books in subsequent year, claim of bad debts was to be allowed Read More
  
 [2015] 58 taxmann.com 204 (Calcutta)[2015] 371 ITR 17 (Calcutta)(MAG.)
ITAT rightly held that transaction in shares were investment and not business transaction: HC -IT: Where both appellate authorities concurrently on basis of evidence held that transaction in shares held by assessee was in nature of investment, no interference was called for Read More
  
 [2015] 58 taxmann.com 288 (Bombay)
Income from letting out of property of educational institution not taxable if same was used for educational purposes -IT : Where assessee-trust generated income by giving hall and premises of its educational institution on rentals and said income was used for educational institution itself, such income could not be brought to tax Read More
  
 [2015] 58 taxmann.com 210 (Delhi)[2015] 374 ITR 62 (Delhi)(MAG.)
Royalty paid to associated concern was allowable as revenue exp. -IT: Technical fees claimed by assessee to japanese assessee was allowable as business expenditure under section 37(1) Read More
  
 [2015] 58 taxmann.com 207 (Gujarat)
Advance received by contractor in excess of bill raised by him couldn't be taxed on receipt basis -IT: Where actual work carried out by sub-contractor during relevant year was to extent of bill raised, Assessing Officer was not justified in making prima facie adjustment of excess payment made by contractor under section 143(1)(a) Read More
  
 [2015] 58 taxmann.com 183 (Karnataka)[2015] 370 ITR 499 (Karnataka)
Sec. 10(10) relief given to SBI employee on ex-gratia received by him on 'VRS' as he satisfied conditions of rule 2BA -IT: Where assessee exercised option of voluntary retirement scheme and all conditions laid down in rule 2B were fulfilled, assessee would be entitled to exemption under section 10(10C) on ex gratia payment Read More
  
 [2015] 58 taxmann.com 181 (Delhi)
Filing of petition for recovery didn't mean that payee had obtained right to receive income; HC deletes addition -IT: Where there was no evidence on record that at any time during relevant period provisions of wages and salaries were ever made, assessee's claim for cost paid to 'H Ltd.' for wages and salaries pertained to earlier years was to be disallowed Read More
  
 [2015] 58 taxmann.com 176 (Rajasthan)
Failure to obtain proper sanction for reassessment notice can't be cured by resorting to sec. 292BB -IT: As per proviso to section 151(1) sanction of Commissioner or Chief Commissioner is pre-requisite condition for issuance of notice under section 148 and, therefore, notice issued with sanction of Joint Commissioner would be invalid and such invalidity cannot be cured by resorting to provisions of section 292B Read More
  
 [2015] 58 taxmann.com 177 (Bombay)
ITAT rightly allowed sec. 80-IB relief as assessee had satisfied the limit of commercial space in housing project -IT: Where assessee acquired development rights in respect of land, and criteria of minimum area was met by assessee and area was situated within 25 kms from limits of Mumbai city, deduction claimed under section 80-IB would be allowed Read More
  
 [2015] 58 taxmann.com 114 (Delhi)
No criminal prosecution against assessee due to having Swiss account if he had furnished its details to revenue -IT: Where assessee had already furnished all relevant details in reply of show cause notice under section 142(1), revenue cannot initiate criminal prosecution under section 279 against assessee for non-compliance of said notice Read More
  
 [2015] 58 taxmann.com 144 (Delhi)
AO couldn't justify reassessment by mentioning same reasons in different words which weren't sustained earlier -IT : A virtual assertion of same reasons in different words in second reassessment does not clothe reassessment notice, with any more sanctity Read More
  
 [2015] 57 taxmann.com 35 (Gujarat)[2015] 231 Taxman 526 (Gujarat)
High Court allows sec. 80-IB(10) deduction to developer even if it didn’t have title to lands -IT : A developer entered into development agreement with land owners and constructed a housing project at its own risk and cost, it was entitled to benefit under section 80-IB even when title of lands had not been passed to assessee Read More
  
 [2015] 58 taxmann.com 112 (Bombay)
No reassessment to treat share premium as unexplained if assessee didn't suppress any details at assessment stage -IT: Where assessee during assessment proceedings had explained and furnished working of share premium charged from subscribers, reopening of assessment for making addition on account of share premium receipt without providing valid reasons was not justified Read More
  
 [2015] 58 taxmann.com 10 (Rajasthan)[2014] 369 ITR 150 (Rajasthan)[2015] 273 CTR 76 (Rajasthan)
Wrong depreciation claim made by assessee, intentionally, would invite penalty -IT : Where assessee claimed depreciation on imported plant and machinery which it could not clear from port authorities, since assessee knew that said claim was never allowable, penalty was to be levied under section 271(1)(c) Read More
  
 [2015] 58 taxmann.com 231 (SC)
SC quashes CVC direction that pending a criminal investigation, departmental proceedings are to be held in abeyance -SC : quashes CVC direction that pending a criminal investigation, departmental proceedings are to be held in abeyance Read More
  
 [2015] 58 taxmann.com 111 (Bombay)
Interest paid on partner's cap was allowable if cap was used to construct property from which rental income was earned -IT: Rental income received from unsold portion of property constructed by assessee a real estate developer, is assessable as income from house property Read More
  
 [2015] 58 taxmann.com 113 (Bombay)
No denial of sec. 80P relief to society merely due to receipt of small portion of revenue from non-members -IT : Where assessee-co-operative society could not be regarded as 'Co-operative Bank' on, mere fact that an insignificant proportion of revenue was coming from non-members, and thus, was entitled for deduction under section 80P(2)(a)(i) Read More
  
 [2015] 58 taxmann.com 78 (Bombay)
No additions under sec. 153A if no incriminating material is found during search -IT: No addition can be made in respect of assessments which have become final if no incriminating material is found during search Read More
  
 [2015] 58 taxmann.com 86 (SC)
Vending fee payable to Govt. which will be used to repair machinery is covered under sec. 43B -IT: Vend fee collected by State Government from manufacturer for giving special benefit to repair or replace old machinery would be a 'fee' by 'whatever name called' to be allowed only on actual payment in previous year, relevant to assessment year Read More
  
 ITAT
  
 [2015] 58 taxmann.com 375 (Delhi - Trib.)
Addition of AMP exp. couldn't be deleted because profit margin of assessee matched with that of comparable -IT/ILT : Addition for AMP expenses cant be deleted only because assessee's profit margin matches those of comparables Read Morenew
  
 [2015] 58 taxmann.com 215 (Pune - Trib.)
No exclusion of comparable due to business restructuring if it doesn't affect segment comparable with assessee -IT/ILT : A company earning income from infrastructure management services and e-learning and digital consulting is incomparable to company providing software design and development services Read Morenew
  
 [2015] 58 taxmann.com 196 (Kolkata - Trib.)[2015] 37 ITR(T) 611 (Kolkata - Trib.)
'LED video display boards' are temporary structures; entitled to 100% depreciation -IT : Where pre-requisite conditions for allowance of deduction under section 80-IA(4) had been satisfied in initial year, same could not be questioned in succeeding years unless and until revenue disturbed finding for initial assessment year Read Morenew
  
 [2015] 58 taxmann.com 223 (Chennai - Trib.)[2014] 36 ITR(T) 300 (Chennai - Trib.)(MAG.)
Sum received on sale of carbon credit is capital receipt -IT: Amount received by assessee on account of clean development mechanism (Carbon credits) was capital in nature Read Morenew
  
 [2015] 58 taxmann.com 325 (Guwahati - Trib.)
No disallowance due to TDS default on reimbursement if agent had already deducted TDS while making payment -IT : No disallowance can be made under section 40(a)(ia) on account of reimbursement of expenses incurred by agent on behalf of assessee for transportation when obligation to deduct tax at source was complied with by agent for and on behalf of assessee Read Morenew
  
 [2015] 58 taxmann.com 289 (Chandigarh - Trib.)[2015] 38 ITR(T) 486 (Chandigarh - Trib.)
Cash deposit couldn't be held as unexplained if such amount was surrendered during search and reflected in WT return -IT: Where Assessing Officer made addition to income of assessee on account of cash deposited by assessee in bank, fact that such amount was surrendered during search and tax had been duly paid and cash had been duly reflected in wealth tax return, no addition was called for Read More
  
 [2015] 58 taxmann.com 291 (Mumbai - Trib.)
Arranger fee paid to bank for mobilizing deposits isn't 'FTS' and not liable to TDS -IT/ILT: Admissibility of head office expenditure of a PE is to be governed by article 7(3) of Treaty between India and UAE with effect from 1-4-2008 Read More
  
 [2015] 58 taxmann.com 297 (Cuttack - Trib.)[2015] 37 ITR(T) 564 (Cuttack - Trib.)
No sec. 68 additions without making detailed scrutiny of creditors -IT: Where assessee derived income from transportation work, keeping in view assessee's turnover and nature of business, assessee's business income was to be estimated at 5 per cent Read More
  
 [2015] 58 taxmann.com 227 (Mumbai - Trib.)
Illegally encroached land is not a capital asset; profit arising on its sale is taxable as income from other source -IT: Property illegally encroached by assessee would not be considered as 'Capital asset' under section 2(14) and, consequently, gain arising from transfer of such property could not be assessed as capital gain but as income from other sources Read More
  
 [2015] 58 taxmann.com 373 (Ahmedabad - Trib.)
Uniform allowance paid to employees isn’t exempt if no dress code has been specified for employees -IT : No exemption under section 10(14) shall be granted in respect of uniform allowance paid to employees if there is no dress code and the employees are free to wear any dress. ITAT has directed assessee-employer to include such allowance in salary of the employees for the purpose of deduction of tax under section 192 Read More
  
 [2015] 58 taxmann.com 283 (Guwahati - Trib.)
ITAT quashed reassessment as revenue failed to establish service of reassessment notice to assessee -IT : Service of notice under section 148, for purpose of initiating proceedings for reassessment is not a mere procedural requirement but it is a condition precedent to initiation of proceedings for reassessment Read More
  
 [2015] 58 taxmann.com 284 (Mumbai - Trib.)
Increased profit due to TP adjustment not brought into India in foreign exchange was excludible for sec. 10B relief -IT/ILT : Where assessee having under priced its services to AEs, made transfer pricing adjustment suo moto, in view of fact that assessee could not bring increased profit on account of said adjustment in India in convertible foreign exchange within stipulated time, assessee's claim for exemption under section 10B was to be recalculated after excluding aforesaid amount Read More
  
 [2015] 58 taxmann.com 286 (Pune - Trib.)
No denial of sec. 80-IB relief due to violation of condition of max built-up area by a few housing units -IT: Where assessee had violated provisions of section 80-IB(10)(C) in respect of two units of housing project, denial of deduction under section 80-IB would be limited only to said two units and for balance units assessee would be entitled to deduction Read More
  
 [2015] 58 taxmann.com 372 (Mumbai - Trib.)
Auditor's certificate can't be a substitute for TP study to benchmark international transaction -IT/ILT : Auditor's certificate spelling out Head Office 'HO' overheads as a percentage of revenues of Indian Entity cannot be accepted as the basis for determining whether reimbursement for head office expenses received from overseas JV under agreement is on arm's length basis. The same will have to be benchmarked to an external comparable for determining Arm's Length Price. Auditor's certificate cant be substitute for Transfer Pricing study (TP Study) even though such certificate as basis for Read More
  
 [2015] 58 taxmann.com 205 (Cochin - Trib.)[2015] 37 ITR(T) 84 (Cochin - Trib.)
Trust's registration denied as building of educational institution is under construction -IT: Where assessee claimed registration under section 12A to administer educational institution but it was found that buildings for starting educational institution were under construction, assessee was not entitled for registration since no charitable activity was carried out during year Read More
  
 [2015] 58 taxmann.com 216 (Mumbai - Trib.)
Co. providing Pharma support services can't be compared with a Co. providing consulting in infra sector -IT/ILT : Where TPO made certain addition to assessee's ALP in respect of rendering pharma support services to its AE, in view of fact that some comparables selected by TPO were Government companies engaged in providing consultancy services in water, power and infrastructure development and thus there existed functional difference, impugned addition deserved to be set aside Read More
  
 [2015] 58 taxmann.com 211 (Mumbai - Trib.)
Just because assessee was employee of landlord couldn't mean that he was deriving perquisite u/s 17(2)(ii) -IT: Where assessee took accommodation on rent belonged to his employer and paid rent thereon, merely because assessee was employee of his landlord, no perquisite could be added in income of assessee Read More
  
 [2015] 58 taxmann.com 371 (Mumbai - Trib.)
Mumbai ITAT interprets Article 5 of India-Singapore DTAA to decide constitution of installation PE in India -IT/ILT: The assessee, a tax resident of Singapore, had undertaken installation and construction activity in respect of certain projects. The DRP held that the presence of assessee in India in excess of 90 days constituted PE in India under Article 5(6) of India-Singapore DTAA. The ld. Counsel of assessee argued that threshold limit of 183 days was applicable as activities of assessee would fall within Article 5(3).ITAT held that as activities related to construction or installation are specifica Read More
  
 [2015] 58 taxmann.com 168 (Pune - Trib.)
TNMM to get priority over CUP method if price of product varies due to volume of transaction and geographical location -IT/ILT: Where prices varies on account of various issues, i.e., timing of transaction, volume of order and geographical location, then CUP method cannot be applied and it is most appropriate to apply TNMM method Read More
  
 [2015] 58 taxmann.com 178 (Pune - Trib.)[2015] 168 TTJ 372 (Pune - Trib.)
No sec. 69 additions on basis of seized doc showing transaction in name of firm after its dissolution -IT : Where assessee firm had been dissolved with effect from 31-3-2002, alleged unexplained income from transaction found recorded in assessee's name in month of December, 2003 in a document recovered from third party could not be taxable in hands of assessee in current year Read More
  
 [2015] 58 taxmann.com 180 (Jaipur - Trib.)
No capital gain arose on sale of land as it wasn't treated as capital asset for other co-owners of such land -IT : Where Assessing Officer made addition to assessee's income in respect of capital gain arising from sale of land, in view of fact that in case of other co-owners said piece of land was not regarded as capital asset being situated 8 Kms. away from local municipal limits, impugned addition deserved to be deleted in assessee's case as well Read More
  
 [2015] 58 taxmann.com 169 (Pune - Trib.)
A Co. which had outsourced most of its work couldn't be compared with a Co. carrying out work by itself -IT/ILT : A company which has outsourced most of its work to third party cannot be compared to a company carrying out work by itself Read More
  
 [2015] 58 taxmann.com 167 (Delhi - Trib.)
A giant software development Co. not comparable with a Co. working as a captive unit with limited risk -IT/ILT : Giant company in area of development of software which assumed all risks leading to higher profits is not comparable with assessee which is a captive unit of parent company and assumed only a limited risk Read More
  
 [2015] 57 taxmann.com 117 (Hyderabad - Trib.)[2014] 33 ITR(T) 191 (Hyderabad - Trib.)
Mistake apparent from records if ITAT didn’t adjudicate on grounds of appeal properly -IT: Tribunal, while disallowing assessee's claim of scientific research expenditure under section 35(1), had not gone into applicability of section 35(3), such mistake was to be rectified Read More
  
 [2015] 58 taxmann.com 108 (Hyderabad - Trib.)[2014] 36 ITR(T) 381 (Hyderabad - Trib.)(MAG.)
Provisions of sec. 292BB don't have retrospective effect -IT : Where notice under section 143(2) was served beyond 12 months from end of month in which block return was filed by assessee, subsequent scrutiny proceedings would be null and void Read More
  
 [2015] 57 taxmann.com 303 (Chennai - Trib.)
Commission paid to NR agent for procuring export orders couldn't be held as 'FTS' -IT/ILT: 'Export Sales Commission' payments to non-resident agents for procuring export orders are not assessable to tax in India Read More
  
 [2015] 58 taxmann.com 137 (Indore - Trib.)[2015] 167 TTJ 124 (Indore - Trib.)
AO couldn't levy penalty for furnishing 'inaccurate' particulars by invoking Explanation 1 to section 271(1)(c) -IT: Where Assessing Officer levied penalty on assessee for furnishing inaccurate particulars of income by invoking Explanation 1 to section 271(1)(c), same could not be sustained as Explanation 1 is applicable in respect of particulars which have been concealed and not for furnishing inaccurate particulars of income Read More
  
 [2015] 58 taxmann.com 138 (Chennai - Trib.)[2014] 36 ITR(T) 227 (Chennai - Trib.)
Deductions couldn't be denied if assessee submitted manual return, though e-filing was mandatory for him -IT: Where a manual return was furnished before due date while electronic return after due date, provision of section 80-IC so as to claim deduction under section 80-IC was complied with Read More
  
 [2015] 58 taxmann.com 133 (Bangalore - Trib.)
Foreign Co. wasn't taxable as its Liaison Office was set-up in India to purchase goods for purpose of export -IT/ILT : Following order passed by co-ordinate Bench of Tribunal in assessee's own case relating to earlier year holding that LO of assessee was not indulged in carrying on commercial activities in India and, thus, in terms of Explanation 1(b) to section 9(1)(i), assessee's income was not taxable in India, impugned addition made by Assessing Officer for assessment years in question was also liable to be deleted Read More
  
 [2015] 58 taxmann.com 136 (Delhi - Trib.)[2015] 38 ITR(T) 165 (Delhi - Trib.)
Business expansion exp. of 'HT' couldn't be held as capital exp. without any finding about nature of its new project -IT: Where assessee expanded its existing business and claimed deduction as revenue expenditure, since there was no finding of authorities below regarding nature of project being undertaken by assessee, matter was to be remanded back Read More
  
 [2015] 58 taxmann.com 104 (Pune - Trib.)[2015] 167 TTJ 33 (Pune - Trib.)(UO)
ITAT allowed sec. 10A relief as AO failed to prove that undertaking was formed by splitting up of an existing business -IT : Where deduction under section 10A was denied on ground that assessee-firm was formed by splitting up of an existing business, but nothing was there on record to suggest that business of assessee-firm was carried on by other entity including partners in individual capacity and subsequently business of said entity was split or there was a reconstruction, it could not be said that assessee had violated any of conditions of clause (ii) or (iii) in section 10A(2) Read More
  
 [2015] 58 taxmann.com 145 (Guwahati - Trib.)
Trust's registration not to be delayed due to delay of revenue in transferring application to concerned CIT -IT : Where assessee-trust filed application for registration under section 12AA with Chief Commissioner in March, 2011 itself who transferred same to concerned Commissioner in June, 2011, since assessee was not responsible for aforesaid delay, registration was to be granted to it with effect from 1-4-2010 Read More
  
 [2015] 58 taxmann.com 267 (Panaji - Trib.)
ITAT makes sec. 43B disallowance even when assessee opts for presumptive taxation scheme -IT: Non-payment of statutory liability before due date of filing of return would attract disallowance under Section 43B even if assessee had offered his income on presumptive basis. Read More
  
 [2015] 58 taxmann.com 268 (Amritsar - Trib.)
Sum paid on account of legal obligations instead of contractual agreement isn't subject to sec. 194C TDS -IT: Payment made to Punjab Water Supply and Sewerage Board which arose out of legal obligations rather than any contractual agreements couldn’t be subjected to TDS under section 194C Read More
  
 [2015] 58 taxmann.com 110 (Mumbai - Trib.)
ITAT isn't barred from handling question of law or fact just because it isn't raised at earlier stage of proceedings -IT: Tribunal is not precluded from handling a point, whether of law or fact, which relates to assessee's assessment merely because nobody else had handled it before or because assessee or department had not raised and urged that point at earlier stages of proceedings Read More
  
 [2015] 58 taxmann.com 106 (Hyderabad - Trib.)
Director couldn't challenge the order passed against Co. if dues of Co. weren't recoverable from him under sec. 179 -IT : Where assessee-director of company filed an appeal before Tribunal against penalty imposed on company, as no tax was payable by assessee, he could not be treated as an aggrieved party and would not be entitled to file instant appeal before Tribunal Read More
  
 [2015] 58 taxmann.com 109 (Mumbai - Trib.)
Sales of 'Coil' and 'liquid repellants' are closely linked transactions; should be clubbed together to compute ALP -IT/ILT : Where assessee sold various insecticide products such as coil, liquid repellants, etc., to its AEs in various countries, since all products fell in category of insecticides and were used as supplementary to each other, all insecticide products sold by assessee to its AE in each country would be clubbed and aggregated together for purpose of determining arm's length price of said transaction Read More
  
 [2015] 58 taxmann.com 232 (Kolkata - Trib.)
Profit arising to a German Co. from high sea sale of equipment to Indian Customer isn’t taxable in India -IT/ILT: Profit arising to a German Co. from high sea sale of equipment to Indian customer couldn't be taxed in India even if equipment was subjected to inspection in India. Read More
  
 [2015] 58 taxmann.com 73 (Kolkata - Trib.)[2015] 170 TTJ 129 (Kolkata - Trib.)
Cost of reworking reimbursed to NR wasn't FTS as re-working done abroad had no link with business of payer in India -IT/ILT : Where assessee engaged in manufacturing and export of printed circuit boards, paid certain repairing expenses to its parent company located abroad to complete manufacturing process before selling its products to final customers, since activities carried out outside India had no connection with assessee's operations in India, payment in question was not taxable in India under section 9(1)(vii) Read More
  
 [2015] 58 taxmann.com 107 (Bangalore - Trib.)
Sec. 14A disallowance has to be invoked even for computing book profits to determine MAT liability -IT : Where assessee declared an income being profit on sale and development of land in respect of a project carried out by assessee, even though said land belonged to sister company of assessee, assessee would be entitled for deduction under section 80-IB Read More
  
 [2015] 58 taxmann.com 105 (Mumbai - Trib.)
Salary paid to NR director for services rendered to US based branch of Co. wasn't taxable in India -IT : Where amount credited in profit and loss account was net of gross receipts after deducting various expenses and entire receipt in TDS certificate had been duly considered by assessee, addition made on difference between TDS certificate and income credited was not justified Read More
  
 [2015] 58 taxmann.com 85 (Bangalore - Trib.)
TPO couldn't consider ALP of technical service fee as nil without considering break-up of cost incurred by AE -IT/ILT : Where TPO made addition to assessee's ALP by taking value of technical service fee paid by assessee to its AE at nil, since in order to prove genuineness of payment in question, assessee had given breakup of costs incurred by parent company and basis of apportionment but same had not been considered at all by TPO, impugned addition was to be set aside and, matter was to be remanded back for disposal afresh Read More
  
 [2015] 58 taxmann.com 134 (Delhi - Trib.)
Failure to mention PAN of a few deductees in TDS return due to their non-availability won't invite penalty -IT : No penalty imposable u/s 272B if deductor fails to mention correct PAN of a few deductees in quarterly e-TDS return Form 26Q which in fact were not available with deductor at the material time and deductor had nevertheless deducted TDS and deposited the same with Govt and obtained correct PAN numbers and filed revised statement on receiving show cause notice from the Department. These circumstances come within the scope of "reasonable cause" for non-compliance u/s 273B. Also, absent contuma Read More
  
 [2015] 58 taxmann.com 158 (Mumbai - Trib.)
Interest on housing loan disallowed due to maximum limit of Sec. 24 couldn't be set-off against interest income -IT : Housing loan interest in respect of Self Occupied Property in excess of Rs.1,50,000 shall be disallowed u/s 24(b) and shall not be allowed to be deducted from interest income from loan given shown under income from other sources head. It cannot be argued that if own savings had not been given as loan and been invested in house instead, there would have been no income from loan given nor there would have been interest liability on housing loan and thus both should be netted off Read More
  
 [2015] 58 taxmann.com 76 (Mumbai - Trib.)[2015] 168 TTJ 244 (Mumbai - Trib.)
Sum received for making investment on behalf of payer couldn't be treated as gift under sec. 56 -IT: Where assessee received certain sum from another person in pursuance of a general power of attorney for making investment in mutual fund on behalf of latter, said sum could not be assessed in hands of assessee under section 56(2)(vi) Read More
  
 [2015] 58 taxmann.com 99 (Delhi - Trib.)
AO can determine actual cost of used asset after satisfying that its actual price is inflated for ulterior purposes -IT: Where an asset before acquisition by assessee was used by another person for his business and Assessing Officer was satisfied that actual price of such asset had been inflated or deflated for an ulterior purpose, then Assessing Officer had power to reject such declared price and determine correct actual cost Read More
  
 [2015] 58 taxmann.com 71 (Bangalore - Trib.)
Co. providing 2D/3D animation services isn't comparable with a Co. providing software development services -IT/ILT : A company engaged in services for 2D and 3D animation is functionally different from a company providing software development services Read More
  
 [2015] 58 taxmann.com 87 (Mumbai - Trib.)
An investment advisor can't be compared with a merchant banker for TP study -IT/ILT : Where TPO made addition to assessee's ALP in respect of rendering investment advisory services to its Associated Enterprise, since one of comparables selected by TPO was engaged in qualitatively different and diversified business activities of merchant banking, impugned addition was to be set aside Read More
  
 Statutes
  
NOTIFICATION NO. 52/2015 [F.NO.203/20/2015-ITA.II]
Govt. notifies Aditya Birla Nuva, Marico and DCM Shriram to undertake agriculture extension project under Sec. 35CCC -IT : NOTIFICATION NO. 52/2015 [F.NO.203/20/2015-ITA.II], NOTIFICATION NO. 53/2015 [F.NO.203/21/2015-ITA.II], NOTIFICATION NO. 54/2015 [F.NO.203/23/2015-ITA.II], DATED 26-6-2015 Read Morenew
  
OFFICE MEMORANDUM [F.NO.401/7/2015-ITCC]
CBDT invites suggestions from officials for augmenting tax collections and widening of tax base -IT : Suggestions on Augmenting Tax Collections Read More
  
NOTIFICATION NO.50/2015 [F.NO.142/9/2015-TPL]/SO 1
CBDT notifies nature of business relationship which CA can have with client to ensure his independence -IT/ILT : Income-Tax (Ninth Amendment) Rules, 2015 – Insertion of Rule 51A Read More
  
NOTIFICATION NO. 51/2015 [F. NO. 275/11/2015-IT(B)
Govt. grants TDS exemption on all incomes other than business profits received by Category I and II AIFs -IT : Section 197A of the Income-Tax Act, 1961 - Deduction of Tax at Source - No Deduction in Certain Cases - Specified Payment under Section 197A(1F) Read More
  
INSTRUCTION NO.5/2015 [F.NO.279/MISC./M-75/2011-IT
Govt. prescribes upper limit of Rs. 4,375 on Clerkage fee payable to Counsel of income-tax department -IT : Guidelines for Engagement of Standing Counsels to Represent Income-Tax Department before High Courts and Other Judicial forums; Revision of Their Schedule of Fees and Other Related Matters Read More
  
NOTIFICATION NO.49/2015 [F.NO.142/1/2015-TPL]/SO 1
Govt. notifies simplified ITR forms; now taxpayers earning exempt income above Rs 5,000 can file ITR-1 and 4S -IT/ILT : The Government substitutes ITR 1, 2 and 4S. A new Form ITR-2A is prescribed for the individuals or HUFs who don't have income from capital gain, business or profession or foreign sources. Read More
  
NOTIFICATION NO. 46/2015 [F.NO.200/17/2014-ITA-I]
'Dessault Aviation' gets tax exemption on royalty or FTS arising from retrofitting of Indian defence aircrafts -IT/ILT : Section 10(6c) of the Income-Tax Act, 1961 - Income Arising to Foreign Company by Way of Royalty or Fees for Technical Services - Notified Company – Dassault Aviation S.A., Paris Read More
  
LETTER [F.NO.279/MISC 52/2014-(ITJ)]
Jurisdictional CCIT can himself take decision of not filing appeal in HC even if station was having more than one CCITs -IT : Section 251 of the Income-tax Act, 1961 – Commissioner (Appeals) – Powers of – Issue of appellate order within 15 days of last hearing – Strict compliance thereof Read More
  
INSTRUCTION [F.NO.279/MISC/53/2003-ITJ]
CIT(A) shall issue orders within 15 days of last hearing; CBDT reiterates -IT : Section 143, read with section 142 of the Income-tax Act, 1961 - Assessment - Scope of enquiry in cases selected for scrutiny - Further steps towards a non-adversarial tax regime Read More
  
LETTER F.NO.DGIT(VIG.)/HQ/MISC./2015-16/1285
I-T department to follow ratio of Apex Court on extension of suspension order for its officials: CBDT -IT : Principles Laid down by Supreme Court in Judgment in Civil Appeal No. 1912 of 2015 in the Case of Shri Ajay Kumar Choudhary vs. Union of India [2015] 58 TAXMANN.COM 231 (SC) Read More
  
 News
  
Taxpayers to Get 24-hour Valid Password for E-filing -Taxpayers to Get 24-hour Valid Password for E-filing [30-06-2015] Read Morenew
  
India, Mauritius to Discuss Changes in Tax Treaty Today -India, Mauritius to Discuss Changes in Tax Treaty Today [29-06-2015] Read More
  
Reforms Must in Land, Labour & Taxation: FM -Reforms Must in Land, Labour & Taxation: FM [25-06-2015] Read More
  
Taxofficials can’t terrorise assessees of scrutiny: CBDT -Taxofficials can’t terrorise assessees of scrutiny: CBDT [25-06-2015] Read More
  
Draft Proposals for Facilitating Electronic Transactions -Draft Proposals for Facilitating Electronic Transactions [24-06-2015] Read More
  
Govt. releases 'draft Sovereign Gold Bonds Scheme' to reduce the demand for physical Gold -IT: Draft Sovereign Gold Bonds Scheme [24-06-2015] Read More
  
Finmin Notifies New ITR Forms -Finmin Notifies New ITR Forms [24-06-2015] Read More
  
Bombay High Court extends Aberdeen’s MAT stay -Bombay High Court extends Aberdeen’s MAT stay [24-06-2015] Read More
  
Tax benefits on debit card transactions will help -Tax benefits on debit card transactions will help [24-06-2015] Read More
  
I- T refunds to be deposited in bank accounts, says income tax department -I- T refunds to be deposited in bank accounts, says income tax department [24-06-2015] Read More
  
Scrutiny of refurbished return forms for Assessment year 2015-16 -In view of representation received from various stakeholders the Government has notified simplified version of ITR 1, 2 and 4S. It has also notified a new form ITR 2A. [23-06-2015] Read More
  
Black Money: 2-Month Compliance Window Likely -Black Money: 2-Month Compliance Window Likely [23-06-2015] Read More
  
Govt moots tax sops for card payments -Govt moots tax sops for card payments [23-06-2015] Read More
  
New norms make exit flexible for NPS investors -New norms make exit flexible for NPS investors [22-06-2015] Read More
  
Compliance window for black money in July -Compliance window for black money in July [22-06-2015] Read More
  
On Black Money Trail, Taxmen Lost in Orchard -On Black Money Trail, Taxmen Lost in Orchard [20-06-2015] Read More
  
Banks in Havens to Run Checks on Indians Looking to Open Black Money Account -Banks in Havens to Run Checks on Indians Looking to Open Black Money Account [19-06-2015] Read More
  
Govt proposes to raise Rs. 13,500 cr by sovereign gold bonds Scheme draft says govt will bear -Govt proposes to raise Rs. 13,500 cr by sovereign gold bonds Scheme draft says govt will bear [19-06-2015] Read More
  
Govt likely to tighten noose around NGOs by changing -Govt likely to tighten noose around NGOs by changing [19-06-2015] Read More
  
After MAT, indirect transfer woes for foreign investors -After MAT, indirect transfer woes for foreign investors [19-06-2015] Read More
  
Cairn India-Vedanta Merger Plan under Watch, says CBDT -Cairn India-Vedanta Merger Plan under Watch, says CBDT [17-06-2015] Read More
  
I- T to defend Rs. 20,495- cr claim on Cairn India -I- T to defend Rs. 20,495- cr claim on Cairn India [17-06-2015] Read More
  
India, Cyprus in talks for tax info exchange -India, Cyprus in talks for tax info exchange [17-06-2015] Read More
  
PAN- based database of taxpayers in the works -PAN- based database of taxpayers in the works [17-06-2015] Read More