-
Defunct companies: The fact that the assessee company stands dissolved as a defunct company u/s 560(5) of the Companies Act, 1956 does not mean that income-tax proceedings & appeals become infructuous. The liability against such companies has to be dealt with in accordance with s. 506(5) proviso (a) of the Companies Act and Chapter XV of the Income Tax Act which deal with "liability in special cases" and "discontinuance of business or dissolution"
CIT vs. Gopal Shri Scrips Pvt. Ltd
(2019) TaxCorp(LJ) 16844 (SC)
-
S. 37(1)/40A(2) Business expenditure vs. sharing of profit: The AO has to take into account the manner in which the business works, the modalities and manner in which SAP/additional purchase price/final price are decided and determine what amount forms part of the profit. Whatever is the profit component is sharing of profit/distribution of profit and the rest is deductible as expenditure
CIT vs. Tasgaon Taluka S.S.K. Ltd
(2019) TaxCorp(LJ) 16805 (SC) · Section 37(1)/40A(2)
-
S. 226 illegal Recovery - Strictures against DCIT: High Court was not justified in its remarks against the DCIT and in issuing directions that (i) ‘deadwood’ should be weeded out (ii) personal costs of Rs. 1.5 lakh should be imposed (iii) adverse entry should be made in the Annual Confidential Report (iv) Denial of promotion etc. The directions were wholly unnecessary to the lis before the Court & are expunged
Sanjay Jain vs. Nu Tech Corporate Service Ltd
(2019) TaxCorp(LJ) 16772 (SC) · Section 226
-
S. 80-HH/ 80-I/ 80-AB: There is a difference between 'income' referred to in s. 80-AB and 'profits & gains' referred in s. 80-HH/80-I. Deduction u/s 80-HH/ 80-I has to be computed on the ‘profits and gains’, without deducting therefrom ‘depreciation’ and ‘investment allowance’ & not from ‘income’ as computed under the Act. S. 80AB is prospective. Motilal Pesticides 243 ITR 26 (SC) reversed
M/s Vijay Industries vs. CIT
(2019) TaxCorp(LJ) 16771 (SC) · Sections 80-HH/ 80-I/ 80-AB
-
S. 68 Bogus share capital/ premium: The practice of conversion of un-accounted money through cloak of Share Capital/Premium must be subjected to careful scrutiny especially in private placement of shares. Filing primary evidence is not sufficient. The onus to establish credit worthiness of the investor companies is on the assessee. The Assessee is under legal obligation to prove the receipt of share capital/premium to the satisfaction of the AO, failure of which, would justify addition of the said amount to the income of the Assessee
PCIT vs. NRA Iron & Steel Pvt. Ltd
(2019) TaxCorp(LJ) 16764 (SC) · Section 68
-
SC - SLP dismissed - HC had held that two Initial Assessment Year is permissible in 80IC for 100 % deduction.
PR. COMMISSIONER OF INCOME TAX VERSUS M/S STOVEKRAFT INDIA
(2019) TaxCorp(LJ) 16743 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=75847&Category=Judgment&CategoryType=Zip
-
SC - Amendment made in Section 80AB, inserted by Finance (No. 2) Act, 1980 with effect from 1st April, 1981 have prospective effect.
M/S. VIJAY INDUSTRIES VERSUS COMMISSIONER OF INCOME TAX
(2019) TaxCorp(LJ) 16742 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=75848&Category=Judgment&CategoryType=Zip
-
SC - Sec. 80HH deduction is available on gross profits without deducting depreciation and investment allowances.
M/S. VIJAY INDUSTRIES Vs COMMISSIONER OF INCOME TAX
(2019) TaxCorp(LJ) 16735 (SC) · Section 80HH
-
SC - SLP Dismissed - Sub-section [1A] of Sec. 244A (inserted w.e.f June 1, 2016) not meant to have retrospective effect.
Nima Specific Family Trust Vs ASSISTANT COMMISSIONER OF INCOME TAX
(2019) TaxCorp(LJ) 16734 (SC) · Section 244A(1A)
-
SC - SLP Dismissed - 'Factual error' pointed out by Audit party would not constitute objectionable/tangible material for AO to initiate re-assessment.
FIS GLOBAL BUSINESS SOLUTIONS Vs ASSTT. COMMISSIONER OF INCOME TAX
(2019) TaxCorp(LJ) 16733 (SC)
-
SC - HC's order remanded as it did not contain the reason(s)/ground(s) for arriving at a particular conclusion.
Rashtradoot (HUF) Vs Commissioner of Income TaxI
(2019) TaxCorp(LJ) 16725 (SC)
-
S. 80-IC: An assessee availing exemption of 100% tax on setting up of a new industry, which is admissible for 5 years, and either on the expiry of 5 years or thereafter (but within 10 years) from the date when these assessees started availing exemption, they carried out substantial expansion of its industry, from that year the assessees become entitled to claim exemption @ 100% again (Classic Binding Industries 407 ITR 429 held not good law and reversed)
PCIT vs. Aarham Softronics
(2019) TaxCorp(LJ) 16668 (SC) · Section 80-IC
-
SC - Outstation visit of counsel is not a ground to seek adjournment.
Ram Siromani Tripathi & Ors Vs STATE OF U.P. & ORS
(2019) TaxCorp(LJ) 16654 (SC)
-
An adjournment cannot be sought on the ground that Counsel is out of station. The appeal has to be dismissed for non-prosecution. Under no circumstances, application for restoration shall be entertained
Ram Siromani Tripathi vs. State of U.P.
(2019) TaxCorp(LJ) 16642 (SC)
-
SC - Assessee to comply with ‘PAN-Aadhaar linking’ requirement for return filing for AY 2019-20.
Shreya Sen & Anr Vs UNION OF INDIA & ORS
(2019) TaxCorp(LJ) 16629 (SC)
-
SC - For the assessment year 2019-20 there is mandation of linkage of PAN with Aadhar. Permission to file ITR without complying with the condition of providing Aadhar Card registration number or Aadhar Card Enrollment number denied. Upheld the vires of section 139AA.
UNION OF INDIA AND ORS. VERSUS SHREYA SEN AND ANR.
(2019) TaxCorp(LJ) 16598 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=75539&Category=Judgment&CategoryType=Zip
-
SC - HC order holding that one bogus donation would not establish that the activities of the trust are not genuine is erroneous and runs contrary to the plain language of Section 12AA(3).
Jagannath Gupta Family Vs Commissioner of Income Tax
(2019) TaxCorp(LJ) 16583 (SC)
-
SC - Cancellation of Registration u/s 12AA - - bogus donation - In view of the serious allegations made against the respondent trust, it is a matter for consideration of the issue, after giving opportunity as pleaded by the respondent but the High Court has committed error in entertaining the appeal against the remand order passed by the appellate- authority, and in quashing the order of cancellation of registration.
COMMISSIONER OF INCOME TAX (EXEMPTIONS), KOLKATA VERSUS JAGANNATH GUPTA FAMILY TRUST
(2019) TaxCorp(LJ) 16577 (SC) · http://taxcorp.in/FileOpenDT.aspx?ID=75516&Category=Judgment&CategoryType=Zip
-
SC - SLP Dismissed - HC had allowed sec.80-IB(10) deduction to assessee.
VRM (INDIA) LTD THROUGH ITS DIRECTOR Vs COMMISSIONER OF INCOME TAX-VI
(2019) TaxCorp(LJ) 16406 (SC) · Section 80-IB(10)
-
SC - PLI - Urges Govt. to relook into the provision contained in Sec. 80DD and explore the possibility of making suitable amendments regarding insurance payment for handicapped- dependents.
RAVI AGRAWAL Vs UNION OF INDIA AND ANOTHER
(2019) TaxCorp(LJ) 16405 (SC)
Headnote lines are open to everyone. The full headnote and the judgment text open with a subscription — see plans or sign in.