-
HC - Royalty payments under “know-how agreement” for 10yrs for use of technology license is allowable revenue expenditure u/s 37(1) as there was no enduring-benefit. In the automobile industry, technology upgradation is constant and rapid.
CIT vs. Hero Honda Motors Limited
(2015) TaxCorp(LJ) 5287 (HC-DELHI)
-
HC - Sale consideration for transfer of shares was artificially and deceitfully bifurcated under a sham agreement which was unreal.
CIT. Vs. Shiv Raj Gupta
(2015) TaxCorp(LJ) 5243 (HC-DELHI)
-
HC - Royalty/technical service fee paid to foreign principals for grant of technology license is allowable u/s 37(1) on the ground of commercial expediency. Commercial expediency means everything that serves to promote trade and commerce and includes every means suitable to that end…includes such expenditure as a prudent man may incur for the purpose of his business
CIT. Vs. Yum Restaurants (I) Pvt. Ltd.
(2015) TaxCorp(LJ) 5220 (HC-DELHI)
-
HC - The issue whether the assessee had held the mutual funds as investment or sold them for earning profits to be taxed as business income is a complex and vexed one. Matter remanded for fresh consideration by Tribunal
Commissioner of Income-tax v. Central News Agency (P.) Ltd.
(2015) TaxCorp(LJ) 5184 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58088&Category=Judgment&CategoryType=Zip
-
HC - For the purpose of section 278B, once the offence is shown to have been committed by the company, then the liability of the directors in charge of its affairs is attracted. The burden then shifts to such directors to show that the offence occurred without their knowledge or that they had exercised all due diligence to prevent the commission of such offence.
Income-tax Officer v. Anil Batra
(2015) TaxCorp(LJ) 5183 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58238&Category=Judgment&CategoryType=Zip
-
HC - Activities of compiling and collating text, designing the layout, scanning and digital image editing, constitute "manufacture" or "production". E-book development eligible for exemption u/s 10B
CIT vs. Kiran Kapoor
(2015) TaxCorp(LJ) 5163 (HC-DELHI)
-
HC - View in Alcatel Lucent that assessee must pay interest for short-fall of advance-tax if it induced payee not to deduct TDS cannot be followed. View in Jacobs has to be followed because obligation of payer to deduct TDS is absolute & not dependent on assertion of payee.
DIT vs. GE Packaged Power Inc
(2015) TaxCorp(LJ) 5161 (HC-DELHI) · Section 234B
-
HC - Entertainment tax subsidy is a capital receipt even though the source is the public who visit the cinema hall after it becomes operational
CIT vs. Bougainvillea Multiplex Entertainment
(2015) TaxCorp(LJ) 5158 (HC-DELHI)
-
HC - ‘Served from India’ brand can’t be construed to include only brands of Indian Companies, which are recognized as IndianIndian subsidiaries of foreign companies can claim SFIS benefit
Yum Restaurants (I) Pvt. Ltd. V. Union of India
(2015) TaxCorp(LJ) 5154 (HC-DELHI)
-
HC - If the definition of "charitable purpose" is construed literally, it is violative of the principles of equality & unconstitutional. If the dominant object is not to carry on business or trade or commerce, then an incidental or ancillary activity for which a fee is charged does not destroy the character of a charitable institution
India Trade Promotion Organization vs. DGIT
(2015) TaxCorp(LJ) 5141 (HC-DELHI) · Section 2(15), 10(23C)(iv)
-
HC - The sine quo non for action under Section 147 (to deal with escapement of income) is gathering or availability of some “tangible material” requiring the matter to be re-opened. Assessment cannot be reopened in the absence of "fresh material"
Donaldson India Filters Systems Pvt. Ltd vs. DCIT
(2015) TaxCorp(LJ) 5110 (HC-DELHI) · Section 147
-
HC - Valuation norms under the Excise Act not relevant for the purpose of allowing u/s 37(1). Hire charges incurred on plastic moulds, though given 'free-of-cost' to contract manufacturers, the same is allowable as hire charges incurred "for the purpose of business"
CIT. Vs. Tupperware India Pvt Ltd.
(2015) TaxCorp(LJ) 5085 (HC-DELHI) · Section. 37(1)
-
HC - There is no non-disclosure as the assessee-Australian company had made it clear in the computation that the rate of tax applicable was 15 per cent in view of the article 11(2). No reassessment on the ground that tax was to be levied at rate of 40 per cent.
Standard Chartered Grindlays (P.) Ltd. v. Deputy Director of Income-tax (International Taxation), Circle 2(2), New Delhi
(2015) TaxCorp(LJ) 5071 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58511&Category=Judgment&CategoryType=Zip
-
HC - The reasons must have live nexus and must disclose on what basis or evidence the Assessing Officer feels and has reason to believe that income chargeable has escaped assessment. The reasons must be germane and genuine
Commissioner of Income Tax - 15 (Erstwhile CIT-IX) Versus Shri Chintoo Tomar
(2015) TaxCorp(LJ) 5053 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=59110&Category=Judgment&CategoryType=Zip
-
HC - Penalty u/s 271G - Penalty cannot be imposed unless and until the Assessing Officer is sure and certain that there was a violation. Ambiguity or doubt in the mind of the Assessing Officer does not justify imposition of penalty, when the actus reas itself is not proved and established
The Commissioner of Income Tax-II Versus M/s. Johnson Matthey India P. Ltd.
(2015) TaxCorp(LJ) 5052 (HC-DELHI) · http://taxcorp.in/FileOpenINTL.aspx?ID=7802&Category=INTLDecisions&CategoryType=Zip
-
HC - The entitlement of an assessee to a deduction depends on the relevant provision of law and not on the manner of accounting followed by the assessee. No disallowance under sec. 43B on unpaid differential price of sugarcane as there was no clear and ascertained legal liability till the date that the Supreme court upheld the notification.
Commissioner of Income-tax (LTU) v. Dalmia Bharat Sugar & Industries Ltd.
(2015) TaxCorp(LJ) 5035 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=59085&Category=Judgment&CategoryType=Zip
-
ITAT - Cost of Furniture in Computation of Capital Gain on Property Sale is not deductible. Most of the items are primarily personal effects which are excluded from the definition of capital asset under Section 2(14) if they are meant for personal use.
Shri Sachinder Mohan Mehta Vs. ACIT
(2015) TaxCorp(LJ) 4990 (HC-DELHI)
-
HC - Expenditure incurred in credit card business on account of credit investigation to verify information and data provided by prospective customers for issue of credit cards, is part of running cost, to be allowed as revenue expenditure
Commissioner of Income-tax-III v. SBI Cards & Payment Services (P.) Ltd.
(2015) TaxCorp(LJ) 4963 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58471&Category=Judgment&CategoryType=Zip
-
HC - Since assessee was having two clearly separate portfolios for shares i.e., investment and stock in trade, gain arising on sale of shares couldn't be held as business income if sale was made from investment portfolio
Commissioner of Income-tax-II v. M.G. Share & Stock (P.) Ltd.
(2014) TaxCorp(LJ) 4894 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=58028&Category=Judgment&CategoryType=Zip
-
HC - Advertisement expense cannot be disallowed simply on the ground that these were exorbitant
CIT. Vs. Discovery Communication India
(2014) TaxCorp(LJ) 4893 (HC-DELHI)
Headnote lines are open to everyone. The full headnote and the judgment text open with a subscription — see plans or sign in.