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ITAT - Conditional grant received not to be reduced from the WDV of the plant & machinery for the purpose of allowance of depreciation as the same is in the nature of a financial arrangement and not subsidy.
Spectrum Coal & Power Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13408 (ITAT-MUMBAI)
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ITAT - Amendment was made by Finance Act, 2012 w.r.e.f. 01.6.1976. Amendment made with retrospective effect cannot fasten liability on the assessee.
Alok Industries Limited Versus Dy. CIT, (TDS) 1 (1), Mumbai
(2017) TaxCorp(LJ) 13405 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=57441&Category=ITAT&CategoryType=Zip
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ITAT - Bogus purchases sought to be taxed based on of list of hawala operators published by Maharashtra Sales-tax Department. Addition u/s 69C of reasonable net profit of 12.5% on total bogus purchases would be sufficient.
Dy. CIT, 14 (1) (2) , Mumbai Versus M/s Fagioli India Pvt Ltd.
(2017) TaxCorp(LJ) 13403 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=57448&Category=ITAT&CategoryType=Zip
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ITAT - Indian group company undertook agency activities for other entities and was also engaged in procuring/producing and supplying programs and acted as licensee for certain channels, to be treated as an independent agent, not PE for Dutch counterpart.
International Global Networks BV vs. ADIT (International Taxation)
(2017) TaxCorp(LJ) 13399 (ITAT-MUMBAI)
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ITAT - TDS u/s 194J OR 194I - No Tax Deduction at Source on payments towards internet & communication charges.
Destimoney Securities Pvt. Ltd. Versus The Income Tax Officer (TDS) (OSD) -1 (3), Mumbai
(2017) TaxCorp(LJ) 13397 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=57422&Category=ITAT&CategoryType=Zip
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ITAT - Recording a satisfaction u/s 14A(2) is a condition precedent to invoke Rule 8D to compute disallowance u/s 14A.
Smartchem Technologies Ltd. vs. ACIT
(2017) TaxCorp(LJ) 13389 (ITAT-MUMBAI)
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ITAT - While deciding the ALP of umbrella of services what has to considered is the right of assessee that it is entitled to avail. If it avails only a few services out of the boquet of services the TPO should not reject the TP study of the assessee on the ground that it did not avail all the services or the majority of services as mentioned in the agreement.
Dimension Data India Private Limited, (Formerly known as Dimension Data India Limited) Versus DCIT –Range- 6 (2) (2), Mumbai
(2017) TaxCorp(LJ) 13385 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=57400&Category=ITAT&CategoryType=Zip
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S. 43(1) Explanation 10: The law laid down in PJ Chemicals 210 ITR 830 (SC) that only a subsidy or grant given to offset the cost of an asset can be reduced from the "actual cost" of the asset and not a general subsidy continues to hold good even after the insertion of Explanation 10 to s. 43(1). A subsidy/ grant from a foreign sovereign Country does not fall within Expl 10 because the foreign Country is not a "person" as defined in s. 2(31)
Spectrum Coal & Power Ltd. vs. ACIT
(2017) TaxCorp(LJ) 13373 (ITAT-MUMBAI) · Section. 43(1)
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Imp law on theory of ‘preponderance of probability’ and to what extent it can be used to make adverse inferences and estimates of undisclosed income, the necessity of tangible material, the rejection of books of account and the scope of a best judgement assessment u/s 145(2) explained
GTC Industries Limited vs. ACIT
(2017) TaxCorp(LJ) 13332 (ITAT-MUMBAI) · Section. 145(2)
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S. 254(2): The amendment by the Finance Act 2016 w.e.f. 01.06.2016 to specify the time limit of 6 months to file a rectification application applies even to applications filed with respect to appeal orders passed prior to the date of the amendment. The Tribunal has no power to condone the delay in filing a Miscellaneous Application
DCIT. vs. Hita Land Private Limited
(2017) TaxCorp(LJ) 13284 (ITAT-MUMBAI) · Section. 254(2)
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S. 50C: The AO is not entitled to make an addition to the sale consideration declared by the assessee if the difference between the valuation adopted by the Stamp Valuation Authority and that declared by the assessee is less than 10%
John Fowler (India) Pvt. Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13239 (ITAT-MUMBAI) · Section. 50C
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S. 147/ 148: Entire law on reopening of assessments in the context of "change of opinion" vs. "failure to apply mind", with reference to s. 114 of the Indian Evidence Act, 1872 and all judgements on the point discussed
Crescent Construction Co vs. ACIT
(2017) TaxCorp(LJ) 13024 (ITAT-MUMBAI) · Sections 147, 148
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ITAT - Assessee is a Public Ltd. Company and having taken loan from a subsidiary which is also a public Ltd., provisions of section 2(22)(e) will not attract to the present case of the assessee.
Balkrishna Industries Ltd. Versus Addl. Commissioner of Income Tax, CIT Cir Rg 6 (1), Mumbai
(2017) TaxCorp(LJ) 13002 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=56538&Category=ITAT&CategoryType=Zip
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Bogus penny stocks capital gain: The s. 131 statement implicating the assessee is not sufficient to draw an adverse inference against the assessee when the documentary evidence in the form of contract notes, bank statements, STT payments etc prove genuine purchase and sale of the penny stock. Failure to provide cross-examination is a fatal error
Kamla Devi S. Doshi vs. ITO
(2017) TaxCorp(LJ) 12957 (ITAT-MUMBAI)
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S. 68 Bogus share capital: Entire law on the onus of the assessee and the department with regard to the genuineness of the share capital explained in the light of several judgements . Law on effect of not giving cross-examination to the assessee also explained
Arceli Realty Limited vs. ITO
(2017) TaxCorp(LJ) 12934 (ITAT-MUMBAI) · Section 68
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S. 54F: U/s 161, a trust which is for the sole benefit of an individual, has to be assessed as an “individual” and not as an “AOP”. Consequently, a trust is eligible for s. 54F deduction
Balgopal Trust vs. ACIT
(2017) TaxCorp(LJ) 12905 (ITAT-MUMBAI) · Section 54F
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S. 271(1)(c): 'Furnishing of inaccurate particulars of income' and 'concealment of particulars of income' have different connotations. The failure by the AO to specify in the s. 274 notice which of the two charges is applicable reflects non-application of mind and is in breach of natural justice as it deprives the assessee of an opportunity to contest. The penalty proceedings have to be quashed
Jehangir HC Jehangir vs. ACIT
(2017) TaxCorp(LJ) 12899 (ITAT-MUMBAI) · Section 271(1)(c)
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S. 69C Bogus purchases: (i) The AO is not entitled to treat the purchases as bogus merely on the basis of information from the sales-tax dept. He has to make independent inquiry, (ii) Fact that the vendors did not respond to s. 133(6) notices & the assessee did not produce them is not sufficient if the documentation is in order and payments are through banking channels
Geolife Organics vs. ACIT
(2017) TaxCorp(LJ) 12888 (ITAT-MUMBAI) · Section 69C
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S. 54/ 54F: There is no requirement that the investment in the new residential house should be situated in India prior to the amendment by the Finance (Nos.2) Act, 2014 w.e.f. 01/04/2015
ITO vs. Nishant Lalit Jadhav
(2017) TaxCorp(LJ) 12868 (ITAT-MUMBAI) · Sections 54, 54F
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ITAT - Cost of employment would include only internal costs incurred by organisation to employ individual, however any cost incurred over and above that to depute the individual for a particular assignment (i.e. travel, insurance etc.), would be external cost, not includible as FTS.
Gemological Institute International Inc. vs. DCIT
(2017) TaxCorp(LJ) 12856 (ITAT-MUMBAI)
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