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Law on reopening u/s 147 pursuant to an audit objection opposed by the AO explained in the context of (i) the notice being silent on whether it was issued pursuant to the audit objection, (ii) there being a gap between the AO's opposition and the issue of notice and (iii) the reasons for reopening being supported by a subsequent Supreme Court judgement
CIT vs. Rajan N. Aswani
(2018) TaxCorp(LJ) 14457 (HC-BOMBAY) · Section 147
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S. 143(1)(a): Submission of Dept that decisions of Courts and Tribunals interpreting a provision is to be ignored by the AO will ring the death knell of Rule of law in the Country. It ignores the hierarchical system of jurisprudence in our country. The AO is bound by the views of the Court. Law on s. 36(1)(viii) (Bad debts) explained
Bajaj Auto Finance Ltd vs. CIT
(2018) TaxCorp(LJ) 14456 (HC-BOMBAY) · Section 143(1)(a)
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S. 147 Reopening: The grant of approval by the CIT with the words “Yes. I am satisfied” proves that the sanction is merely mechanical and he has not applied independent mind while according sanction as there is not an iota of material on record as to what documents he had perused and what were the reasons for his being satisfied to accord the sanction to initiate the reopening of assessment u/s 148 of the Act
ITO vs. Virat Credit & Holdings Pvt.Ltd
(2018) TaxCorp(LJ) 14455 (ITAT-DELHI) · Section 147
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Bogus Purchases: The fact that s. 133(6) notices could not be served upon the alleged vendors and they were not physically available at the given addresses does not falsify the claim of the assessee that the purchases are genuine if the assessee has produced other evidence and made payments through banking channels
Prabhat Gupta vs. ITO
(2018) TaxCorp(LJ) 14454 (ITAT-MUMBAI) · Section 133(6)
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ITAT - Application for grant of approval for exemption u/s 10(23C)(vi) rightly rejected since assessee is generating huge surplus from year to year, which are parked in FDRs instead of being redeployed into education.
I. K. Gujral Punjab Technical University Vs The CIT (Exemptions)
(2018) TaxCorp(LJ) 14437 (ITAT-CHANDIGARH)
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ITAT - No capital loss allowed as sale of shares to its second step down 100% subsidiary is not transfer u/s. 47(iv).
Emami Infrastructure Ltd. Vs ITO
(2018) TaxCorp(LJ) 14436 (ITAT-KOLKATA) · Section 47(iv)
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ITAT - Since no credit is allowable on ‘input tax credit’ relatable to exempt services, the ineligible input tax credit so charged to P&L A/c. is allowable as deduction even though assessee follows ‘Exclusive method’ for accounting of Service tax.
Morgan Stanley (India) Capital Pvt. Ltd. Vs Dy. CIT
(2018) TaxCorp(LJ) 14435 (ITAT-MUMBAI)
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S. 68 Bogus share capital: If the assessee has discharged the initial onus regarding the identity, creditworthiness and genuineness, the onus shifts to the AO to bring material or evidence to discredit the same. The fact that the shareholders did not respond to s. 133(6) summons is not sufficient to draw an adverse inference. There must be material to implicate the assessee in a collusive arrangement with person who are accommodation entry providers
Umbrella Projects Pvt. Ltd vs. ITO
(2018) TaxCorp(LJ) 14434 (ITAT-DELHI) · Section 68
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No more adjournments. No more ‘tareek pe tareek’. Enough is enough. That a Court will endlessly grant adjournments is not something that parties or advocates can take for granted. Nor should they assume that there will be no consequences to continued defaults and unexplained delay
Ram Nagar Trust No.1 vs. Mehtab L Sheikh
(2018) TaxCorp(LJ) 14433 (HC-BOMBAY)
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HC - The question as to whether sale of bare shell building is per se a deductible activity falling within Section 80IAB has not been adequately considered or addressed, proceedings u/s 263 allowed.
THE COMMISSIONER OF INCOME TAX-IV Vs DLF COMMERCIAL DEVELOPERS LTD.
(2018) TaxCorp(LJ) 14432 (HC-DELHI) · Sections 80IAB, 263
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HC - Since there was no 'corruption' allegations against MP/MLA, and pending such ‘investigation’, the information (including DG's responses) was exempt from disclosure u/s. 8(1)(h) of the RTI Act.
Satya Narain Shukla Vs CENTRAL BOARD OF DIRECT TAXES
(2018) TaxCorp(LJ) 14431 (HC-DELHI) · Section 8
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S. 68 Bogus Share Capital: Share premium received can be assessed as undisclosed income if (a) directors are allotted shares at par while others are allotted at premium, (b) the high premium is not justified by a valuation report, (c) the high premium is not supported by the financials, (d) based on financials the value of shares is less and no genuine investor would invest at the premium, (e) there are discrepancies & abnormal features which show transaction as "made up" to camouflage real purpose
Cornerstone Property Investments Pvt. Ltd. vs. ITO
(2018) TaxCorp(LJ) 14426 (ITAT-BANGALORE) · Section. 68
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S. 271(1)(c): Voluntary surrender of income after survey by filing a revised income does not save the assessee from levy of penalty for concealment of income in the original return if there is no explanation as to the nature of income or its source. SAS Pharmaceuticals 335 ITR 259 (Del) is not good law after MAK Data 358 ITR 593 (SC)
Pr. CIT. Vs. Dr. Vandana Gupta
(2018) TaxCorp(LJ) 14425 (HC-DELHI) · Section. 271(1)(c)
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ITAT - Hefty share premium received by a private limited company engaged in real estate business as a conduit to route the funds involved as a 'layering' process, is taxable u/s 68 as unexplained cash credit.
Cornerstone Property Investments Pvt. Ltd. Vs. ITO
(2018) TaxCorp(LJ) 14424 (ITAT-BANGALORE) · Section. 68
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HC - Writ allowed - Re-assessment initiated beyond 4 years in absence of failure to disclose full and true material facts quashed.
Gujarat Enviro Protection and Infrastructure Vs. DCIT
(2018) TaxCorp(LJ) 14423 (HC-GUJARAT)
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S. 143(2) service of notice: If the assessee is not available to take service of the s. 143(2) notice, service on the authorized representative is sufficient to draw inference of deemed service of notice on the assessee. The fact that the authorized representative is disowned by the assessee is irrelevant
ITO. Vs. Dharam Narain
(2018) TaxCorp(LJ) 14392 (SC) · Section. 143(2)
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S. 206AA TDS: The requirement (pre amendment) that TDS should be deducted at 20% on payments to non-residents even though the income is chargeable to tax at a lower rate under the DTAA is not acceptable because the DTAA has primacy over the Act. S. 206AA (as it existed) has to be read down to mean that where the non-resident payee is resident in a territory with which India has a Double Taxation Avoidance Agreement, the rate of taxation would be as dictated by the provisions of the treaty
Danisco India Private Ltd. Vs. UOI
(2018) TaxCorp(LJ) 14344 (HC-DELHI) · Section. 206AA
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Section. 12A: The CIT has no power to cancel/withdraw/recall the registration certificate granted u/s 12A until express power to do so was granted by s. 12AA(3). Though the grant of certificate is a quasi judicial function, s. 21 of the General Clauses Act cannot be applied to support the order of cancellation of the registration certificate
Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd. vs. CIT
(2018) TaxCorp(LJ) 14342 (SC)
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Service-tax on maintenance of property: Under the MOFA, the builder/ developer is under a statutory obligation to look after the day-to-day upkeep, maintenance and repair of the property till conveyance to the co-op society. Such maintenance of the structure is not rendering a taxable service as per s. 65 (64) of the Finance Act, 1994
CST. Vs. Shri Krishna Chaitanya Enterprises
(2018) TaxCorp(LJ) 14341 (HC-BOMBAY) · Section. 65 (64)
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GST Network: The regime is not tax friendly. GST was highly publicised and termed as popular but there has been great hue and cry because assessees are unable to obtain access to the GST website. Those in charge of implementation and administration must wake up and put in place the requisite mechanism to preserve the image, prestige and reputation of this country, particularly when we are inviting and welcoming foreign investment in the State and the country
Abicor and Binzel Technoweld Pvt. Ltd. vs. UOI
(2018) TaxCorp(LJ) 14330 (HC-BOMBAY)
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