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ITAT - Consortium was not taxable as AOP since there was a clear demarcation in the work and cost between the consortium members and the contract provided for consideration to be paid member-wise as well as component-wise. The contract was clearly divisible.
Vitkovice Machinery AS Vs. DCIT
(2017) TaxCorp(LJ) 13771 (ITAT-MUMBAI)
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ITAT - No additions towards alleged on money received by the assessee for sale of property based on third party statement.
M/s Riveria Properties Pvt Ltd. Versus ITO, Cir. 7 (2) (1) , Mumbai
(2017) TaxCorp(LJ) 13770 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59703&Category=ITAT&CategoryType=Zip
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ITAT - TPA - As there was uncertainty involved in collection of the technical knowhow fees from an associate enterprise due to its bad financial condition, the assessee has rightly not recognized the revenue.
The Bombay Dyeing & Mfg. Co. Limited Versus Dy. Commissioner of Income Tax, Range-2 (1) (1), Mumbai
(2017) TaxCorp(LJ) 13769 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59702&Category=ITAT&CategoryType=Zip
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ITAT - Waiver of loan not taxable u/s.41(1), as the loan received is a capital receipt and it does not lose its capital nature even when it is renounced or waived by the lender.
M/s. SHRM Food & Allied Services Pvt. Ltd. Versus ITO WD 8 (3) (1), Mumbai
(2017) TaxCorp(LJ) 13767 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59694&Category=ITAT&CategoryType=Zip
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ITAT - FMV of the property in the year of sale of property is to be considered.
Image Apparels Pvt. Ltd. Vs. ITO
(2017) TaxCorp(LJ) 13755 (ITAT-MUMBAI)
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ITAT - Receipt of earnest money consequent to an Agreement for Sale is not a relevant factor for construing ‘year of transfer’.
Maniar Injectoplast Pvt. Ltd. Vs. ITO
(2017) TaxCorp(LJ) 13754 (ITAT-MUMBAI)
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ITAT - Since amounts to be added to the book profit under clause (b) of Expl 1 to Sec. 115JB represents 'appropriation of profits' therefore, addition to book profit cannot be made towards revaluation reserve not created through P&L A/c.
The Bombay Dyeing & Mfg. Co. Limited Vs. Dy. CIT
(2017) TaxCorp(LJ) 13741 (ITAT-MUMBAI)
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S. 271(1)(c)/ 292BB: "concealment of particulars of income" and "furnishing of inaccurate particulars of income" referred to in s. 271(1)(c) denote two different connotations. It is imperative for the AO to make the assessee aware in the notice issued u/s 274 r.w.s. 271(1)(c) as to which of the two limbs are being put-up against him. The failure to do so is fatal to the penalty proceedings. The argument that the assessee was made aware of the specific charge during the proceedings is of no avail. S. 292BB does not save the penalty proceedings from being declared void
Orbit Enterprises vs. ITO
(2017) TaxCorp(LJ) 13740 (ITAT-MUMBAI) · Sections 271(1)(c), 292BB
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S. 254(2) Limitation period: The amendment to s. 254(2) to curtail the limitation period for filing rectification applications to six months from four years is prospective and applicable to appeal orders passed after 01/06/2016 and not the orders passed prior to 01/06/2016. The contrary view in Lavanya Land (Mum ITAT) is not good law in view of K. Ravindranathan Nair (SC)
Lucent Technologies GRL LLC vs. ADIT
(2017) TaxCorp(LJ) 13739 (ITAT-MUMBAI) · Section 254(2)
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ITAT - Considering Indian traditions deletes partial addition for investment in FDs out of gold and silver received as meher by close relatives without any supportive evidence.
Abida Mohammed Rakhangi Vs. ITO
(2017) TaxCorp(LJ) 13706 (ITAT-MUMBAI)
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ITAT - While computing capital gains holding period of the property is to be reckoned from the day on which the assessee got right over the property by virtue of a valid sale agreement.
Anu D Lohana Vs. ITO
(2017) TaxCorp(LJ) 13705 (ITAT-MUMBAI)
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ITAT - Income earned by a fund set up as a revocable trust is to be taxed only in the hands of the beneficiaries as per the provisions of section 61 to 63.
ITO – 23 (1) (2), Mumbai Versus India Innovation fund The IL & FS Financial Centre
(2017) TaxCorp(LJ) 13701 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59380&Category=ITAT&CategoryType=Zip
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ITAT - Loss suffered by a share broker on sale of shares held as investments is speculation loss as per Explanation to Sec. 73 even where loss was offered as short term capital loss.
Amol Capital Markets Pvt. Ltd. Vs. DCIT
(2017) TaxCorp(LJ) 13700 (ITAT-MUMBAI)
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ITAT - The purchases made cannot be held as bogus merely on presumption and surmises and on the sole reasoning that the assessee was unable to produce delivery challan / angadia receipts. In this context, assessee’s explanation that diamond did not require to be transported through vehicle appears plausible.
Dy. Commissioner of Income Tax Central Circle–2 (4), Mumbai Versus M/s. Ronak Gems Pvt. Ltd.
(2017) TaxCorp(LJ) 13695 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59304&Category=ITAT&CategoryType=Zip
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ITAT - Assessee should be allowed deduction in the year of retention or in that year in which it comes to know about the said deductions nevertheless it is pertinent to say that retention has to be taxed as and when received by the assessee.
Dy. Commissioner of Income Tax -28 (1) And Jt. Commissioner of Income Tax -22 (3), Mumbai Versus M/s Ashtavinayaka Construction
(2017) TaxCorp(LJ) 13693 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=59310&Category=ITAT&CategoryType=Zip
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ITAT - Income earned from running a departmental store is taxable as 'íncome from business' as it is not a case of exploiting the property simpliciter but where the objective of earning profits by conducting of the Department store is merely facilitated by the use of the property.
Asiatic Stores & Soda Fountain Vs. ITO
(2017) TaxCorp(LJ) 13687 (ITAT-MUMBAI)
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ITAT - Best judgement assessment u/s 144 is invalid as notice issued u/s 143(2) is clearly barred by limitation.
Dy. CIT 10 (2), Mumbai Versus M/s Mhatre Electronics Pvt. Ltd., C/o Kalyaniwalla & Mistry LLP And Vice-Versa
(2017) TaxCorp(LJ) 13662 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=58168&Category=ITAT&CategoryType=Zip
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ITAT - Where software is incorporated in a CD it becomes a tangible property and the payment made for acquiring the same is not a payment by way of royalty. No disallowance u/s 40(a)(i) for non payment of TDS.
Dy. CIT (IT) -4 (2) (2), Mumbai Versus M/s. Societe Generale
(2017) TaxCorp(LJ) 13644 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=58112&Category=ITAT&CategoryType=Zip
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S. 69C Bogus purchases: If the AO has not rejected the books of accounts and has only doubted the genuineness of the suppliers but not the genuineness of the purchases and if the payments are made by account payee cheques, s. 69C is not attracted. S. 69C cannot be applied where all purchase and sales transactions are part of regular books of accounts. The basic precondition for invoking s. 69C is that the expenditure incurred by the assessee should be out of books of accounts
M/s. Fancy Wear vs. ITO
(2017) TaxCorp(LJ) 13630 (ITAT-MUMBAI) · Section. 69C
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ITAT - Where account appeared to be in the nature of current adjustment accommodation account and there was movement of funds in both ways on need basis, amount cannot be regarded as deemed dividend u/s. 2(22)(e).
Ravindra R Fotedar Versus ACIT 10 (2), Mumbai
(2017) TaxCorp(LJ) 13614 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=58041&Category=ITAT&CategoryType=Zip
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