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ITAT - Merilyn Shipping 136 ITD 23 (SB) should be followed in view of approval by Allahabad HC and dismissal of SLP by Supreme Court. In any event as two views are possible, view in favour of assessee should be followed. Amounts already paid without TDS cannot be disallowed
Jitendra Mansukhlal Shah vs. DCIT
(2015) TaxCorp(LJ) 5959 (ITAT-MUMBAI) · Section 40(a)(ia)
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ITAT - Disallowance of expenditure for failure to deduct TDS does not attract penalty because it cannot be said to be a case of concealment of income or furnishing of inaccurate particulars of income
Rushi Builders and Developers vs. ACIT
(2015) TaxCorp(LJ) 5958 (ITAT-MUMBAI) · Section 271(1)(c)
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ITAT - MCA regulation could not be applied in relation to transaction of the assessee with its AE, which is in foreign currency and its ALP should be evaluated as per LIBOR rates. Thus, delay in disbursal of share application money by AE would attract interest at LIBOR.
Videocon Industries Ltd. v. Additional Commissioner of Income-tax, Range 3(3), Mumbai
(2015) TaxCorp(LJ) 5935 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=40128&Category=ITAT&CategoryType=Zip
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ITAT - Penalty u/s 271(1)(c) is not only qua the misstatement of fact/s but also of law. Penalty confirmed in case rental income returned as ‘income from house property’ as against ‘business income’. Plea of mere ‘differential treatment’ rejected.
Shubhmangal Portfolio Pvt. Ltd vs. CIT
(2015) TaxCorp(LJ) 5909 (ITAT-MUMBAI) · Section 271(1)(c)
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ITAT - The two sections, i.e., section 271(1)(c) and section 271AAA are not only worded differently, with thus different concomitant scopes, are rather mandated to operate exclusively.
Assistant Commissioner of Income-tax, Central Circle-13, Mumbai v. Prakash Steelage Ltd.
(2015) TaxCorp(LJ) 5902 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=40118&Category=ITAT&CategoryType=Zip
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ITAT - (i) Growth mutual funds do not yield dividend and so s. 14A/ Rule 8D does not apply, (ii) S. 14A/Rule 8D disallowance for admin exp cannot exceed allocable exp debited to P&L A/c, (iii) ALP of funds lent to AE should be as per LIBOR, (iv) ALP of corporate guarantee to be at 0.5%
Manugraph India Ltd vs. DCIT
(2015) TaxCorp(LJ) 5895 (ITAT-MUMBAI) · Section 14A
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ITAT - Share application money cannot be treated as loan amount merely because there is a delay in issuance of shares by the subsidiary in the name of the assesse, which was duly explained by the assesse.
Aditya Birla Minacs Worldwide Ltd vs. DCIT
(2015) TaxCorp(LJ) 5893 (ITAT-MUMBAI)
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ITAT - Assessing Officer is directed to work out the disallowance u/s 14A as per Rule 8D2(iii) by taking average investment by excluding the investment in foreign subsidiaries.
Everest Kanto Cylinder Ltd. vs. CIT
(2015) TaxCorp(LJ) 5872 (ITAT-MUMBAI)
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ITAT - As assessee did not file any explanation for claiming depreciation at variance with the depreciation claimed by the previous owner of the asset, it was a fit case for imposing penalty u/s.271(1)(c). There is fundamental difference in a debatable claim and a patently wrong or false claim. Whenever any material fact, for correct computation of income, is not filed or if filed is inaccurate, then penalty has to be imposed.
DCIT vs. SM Energy Teknik & Electronics Ltd
(2015) TaxCorp(LJ) 5849 (ITAT-MUMBAI) · Section 271(1)(c)
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ITAT - Disclosing income but classifying it under a wrong head amounts to furnishing inaccurate particulars and attracts penalty
Shubhmangal Portfolio Pvt. Ltd. vs. CIT
(2015) TaxCorp(LJ) 5828 (ITAT-MUMBAI) · Section. 271(1)(c)
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ITAT - Companies, if authorized by the MoA & AoA, are competent to make and receive gifts. Natural love and affection is a not necessary requirement for a gift. The gift is neither taxable as income u/s 56 (pre-amendment) nor as capital gain nor as income u/s.2(22)(e) nor u/s.115JB
DCIT. vs. KDA Enterprises Pvt. Ltd.
(2015) TaxCorp(LJ) 5825 (ITAT-MUMBAI) · Sections. 56, 2(22)(e), 115JB
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ITAT - Interest paid by assessee Indian branch of a Belgian bank to its head Office on subordinate debts and term borrowing, in view of domestic law as well as treaty same would not be chargeable to tax in India. No TDS required.
Antwerp Diamond Bank NV vs. ADIT
(2015) TaxCorp(LJ) 5820 (ITAT-MUMBAI)
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ITAT - The provisions of section 194H are not attracted in the case of discount, being passed to the customer. Therefore, discount offered by air travel agent to lure customers not liable for TDS u/s 194H.
Income-tax Officer (TDS) v. Kesar Travels Ltd.
(2015) TaxCorp(LJ) 5811 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=37993&Category=ITAT&CategoryType=Zip
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ITAT - Failure of to show that change of depreciation policy was in conformity with accounting standards as required under provisions of Companies Act, Reassessment upheld.
Intelenet Global Services (P.) Ltd. v. Deputy Commissioner of Income-tax-1 (2), Mumbai
(2015) TaxCorp(LJ) 5804 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=40044&Category=ITAT&CategoryType=Zip
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ITAT - For the purpose of grant of registration, the application of income in India is not a pre-condition, if its activities otherwise fall in the definition of charitable activities. Charity’ definition u/s 2(15) does not require charitable activity to be performed ‘in India’ only
M/s. Critical Art and Media Practices Vs The Director of Income Tax
(2015) TaxCorp(LJ) 5794 (ITAT-MUMBAI) · Section 12A
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ITAT - In the case of carried forward credit, which is from earlier year, provisions of section 68 cannot be applied. In the present case, the liabilities outstanding in the books of account of the assessee for the assessment year under consideration and only the provisions of the section 41(1) of the Act could be applied.
Bharat Dana Bera C/o., Jayesh Sanghrajka & Co. Versus The Income tax Officer
(2015) TaxCorp(LJ) 5790 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=40027&Category=ITAT&CategoryType=Zip
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ITAT - Even though contributions were received by Bombay Gymkhana from corporates, who were non-members, still concept of mutuality will apply to these receipts being‘Objects' test as prominent. corporate sponsorships not income.
DCIT vs Bombay gymkhana
(2015) TaxCorp(LJ) 5785 (ITAT-MUMBAI)
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ITAT - Since assessee was under bonafide belief that TDS was inapplicable and that assessee duly started deducting tax at source subsequent to the Bombay HC decision, benefit of doubt should be given to the assessee; no Sec. 40(a)(ia) disallowance for Stock-Exchange Transaction-Charges
DCIT vs Mehta Vakil and Co Pvt.Ltd
(2015) TaxCorp(LJ) 5772 (ITAT-MUMBAI) · Section 40(a)(ia)
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ITAT - Stamp valuation u/s 50C is not relevant while computing WDV on sale of asset forming part of the block of assets ‘Building’.
Bhaidas Cursondas and Company vs ACIT
(2015) TaxCorp(LJ) 5761 (ITAT-MUMBAI) · Section 50C
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ITAT - Mark-to-market loss on interest rate swap contracts is not a notional loss. Benefit against s. 40(a)(ia) disallowance conferred in Kotak Securities 340 ITR 333 (Bom) has to be extended to cases where ROI was filed pre-delivery of the verdict
IDBI Capital Market Services Ltd vs. DCIT
(2015) TaxCorp(LJ) 5749 (ITAT-MUMBAI) · Section 40(a)(ia)
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