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ITAT - Loss allowed on the basis of ‘mark to market’ open derivative contracts. Gain taxable on the balance (brought forward) contracts in its' entirety on settlement.
Mili Consultants & Investment Pvt. Ltd. vs. DCIT
(2016) TaxCorp(LJ) 10608 (ITAT-MUMBAI)
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S. 263: In challenging the validity of a s. 263 revision order, the validity of the underlying s. 143(3) assessment order which is sought to be revised can be examined even if the said assessment order has not been challenged and has become final. If the assessment order is passed on a non-existent entity, the revision order is void
Westlife Development Ltd vs. Pr. CIT
(2016) TaxCorp(LJ) 10474 (ITAT-MUMBAI) · Section 263
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ITAT - When entire income is brought to tax, as a corollary to the same, double taxation relief is to be given in respect of the same. Assessee is entitled to relief u/s 90 for the entire income.
Aker Powergas Pvt Ltd Versus Additional Commissioner of Income Tax, Range 10 (1), Mumbai
(2016) TaxCorp(LJ) 10403 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenINTL.aspx?ID=10272&Category=INTLDecisions&CategoryType=Zip
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S. 68: Long-term capital gains arising from transfer of penny stocks cannot be treated as bogus merely because SEBI has initiating an inquiry with regard to the Company & the broker if the shares are purchased from the exchange, payment is by cheque and delivery of shares is taken & given
ITO vs. Indravadan Jain (HUF)
(2016) TaxCorp(LJ) 10391 (ITAT-MUMBAI) · Section 68
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S. 10(38)/ 68: Long-term capital gains on sale of "penny" stocks cannot be treated as bogus & unexplained cash credit if the documentation is in order & there is no allegation of manipulation by SEBI or the BSE. Denial of right of cross-examination is a fatal flaw which renders the assessment order a nullity
Farrah Marker vs. ITO
(2016) TaxCorp(LJ) 10336 (ITAT-MUMBAI) · Sections 10(38), 68
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ITAT - Bogus purchases - Without conducting any enquiry, the Assessing Officer solely relying upon the investigation made by the Sales Tax Department cannot make the addition, that too, on the basis of untested material.
Adamji & Company Versus Income Tax Officer Ward–20 (1) (1), Mumbai
(2016) TaxCorp(LJ) 10318 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49499&Category=ITAT&CategoryType=Zip
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ITAT - When technicalities are pitted against the substantial justice, the course which advances substantial justice is to be preferred.
Shri Ram Nagar Trust Versus DDIT (Exemp) –I (1) , Mumbai
(2016) TaxCorp(LJ) 10316 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49423&Category=ITAT&CategoryType=Zip
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ITAT - Payment made to manpower deployed overseas is in the nature of salary and no TDS is required to be made u/s. 195.
The DCIT, Mumbai Versus Mrs. Supriya Suhas Joshi
(2016) TaxCorp(LJ) 10315 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49515&Category=ITAT&CategoryType=Zip
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ITAT - Sale of development rights under JDA agreement is to be taxable as long term capital gain and not as income from other sources. Deductions/exemptions u/s. 54 of the Act etc. will be allowed.
ITO Ward 21 (1) (1) , Mumbai Versus Shri Bharat Raojibhai Patel
(2016) TaxCorp(LJ) 10314 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49516&Category=ITAT&CategoryType=Zip
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ITAT - Expenses for obtaining ISO certificates held as revenue in nature.
Red Chillies Entertainment Pvt. Ltd. Versus Asstt. Commissioner of Income Tax
(2016) TaxCorp(LJ) 10313 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49517&Category=ITAT&CategoryType=Zip
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ITAT - Provision for doubtful debts to be added for the purpose of computing book profit u/s 115JB.
Reliance Industries Limited vs. ACIT
(2016) TaxCorp(LJ) 10302 (ITAT-MUMBAI)
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ITAT - Onus is on revenue to prove unreasonableness for making disallowance u/s 40A(2). No disallowance where incentives passed on to sister concern not “unreasonable”.
ICICI Securities Ltd. vs. ACIT
(2016) TaxCorp(LJ) 10295 (ITAT-MUMBAI) · Section. 40A(2)
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S. 254(1): The Tribunal cannot consider new material or information which comes to the possession of the AO after passing the assessment order. The appellate procedure is designed to adjudicate matters that were originally framed in the assessment order and new material cannot be considered
H. K. Pujara Builders vs. ACIT
(2016) TaxCorp(LJ) 10292 (ITAT-MUMBAI) · Section 254(1)
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ITAT - If an explanation added to a provision changes the law, then it is not to be presumed to be retrospective irrespective of the fact that the phrase used are ‘it is declared‘ or ‘for the removal of doubts‘.
DDIT (IT) -2 (1) , Mumbai and ITO (TDS) , Large Tax-Payer Unit, Mumbai Versus M/s. Reliance Industries Ltd. and M/s. Indian Petrochemicals Corporation Ltd., (Merged with Reliance Industries Ltd.) and Vica-Versa
(2016) TaxCorp(LJ) 10285 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49143&Category=ITAT&CategoryType=Zip
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ITAT - No TDS on premium/interest payable on redemption of FCCB by amortization on pro-rata basis of implicit rate of return over the period of bonds.
First Source Solution Ltd. Versus ITO (TDS) , Ward-1 (2) , Mumbai
(2016) TaxCorp(LJ) 10278 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49336&Category=ITAT&CategoryType=Zip
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ITAT - Tax authorities are not justified in bifurcating the selling price between the land and building without bringing any material to support their view. Price paid for purchase of flat will be taken as the cost of flats.
M/s. Bharat Homes Ltd. Versus Asst. CIT 9 (1) , Mumbai
(2016) TaxCorp(LJ) 10277 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49337&Category=ITAT&CategoryType=Zip
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Transfer Pricing: Arbitrary action of the AO in treating the payment by the assessee to the AE as "excessive/ unreasonable" deplored. Whims and fancies of an AO cannot decide tax liability of an assessee. Either the AO was ignorant of the TP provisions or he was adamant to make the disallowance at any cost. Either way, his action cannot be endorsed
ITO vs. Intertoll ICS India Private Limited
(2016) TaxCorp(LJ) 10271 (ITAT-MUMBAI)
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S. 37(1): (i) Product Trial expenses of a new product is revenue in nature as it does not provide the assessee with any enduring benefit, (ii) Compensation paid to supplier to ensure goodwill and continued relationship is revenue expenditure
Bayer CropScience Limited vs. ACIT
(2016) TaxCorp(LJ) 10270 (ITAT-MUMBAI) · Section 37(1)
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ITAT - No TDS u/s 194D on Service Tax element in respect of ‘insurance commission‘.
DCIT (TDS) -3 (2) , Mumbai Versus M/s. Reliance Life Insurance Co. Ltd.
(2016) TaxCorp(LJ) 10268 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=49324&Category=ITAT&CategoryType=Zip
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(i) Important law laid down on applicability of transfer pricing provisions to non-AEs, Law on (ii) deductibility of unpaid service-tax u/s 43B and (iii) carry forward of losses of amalgamating company u/s 72A and Rule 9C explained
DCIT vs. Alstom Projects Ltd
(2016) TaxCorp(LJ) 10255 (ITAT-MUMBAI) · Section 43B
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