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S. 14A/ Rule 8D: (i) The computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s 14A read with Rule 8D of the Income tax Rules 1962, (ii) Only those investments are to be considered for computing the average value of investment which yielded exempt income during the year
ACIT. Vs. Vireet Investment Pvt. Ltd.
(2017) TaxCorp(LJ) 13060 (ITAT-DELHI) · Section. 14A
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Capital Gains: While a family arrangement/settlement does not amount to a "transfer" u/s 2(47) as it only recognizes "pre-existing rights" between the parties, the same applies only to members of the families and not to transfers made by corporate entities. The corporate veil can never be lifted at the instance of the company itself because that would amount to its denying its own corporate existence. The fact that the Company is wholly owned by the members of the family is irrelevant
B.A.Mohota Textiles Traders Pvt. Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13054 (HC-BOMBAY) · Section 2(47)
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S. 92C +/- 5%: The contention that there is an error because mere mathematical calculation shows that the arm's length purchase price as worked out by the TPO falls beyond (+)/(-) 5% range and consequently falls outside the scope of the second proviso to s. 92C(2) cannot be considered if it was not raised before the CIT(A) & ITAT
CIT. vs. Mettler Toledo India Pvt. Ltd.
(2017) TaxCorp(LJ) 13053 (HC-BOMBAY) · Section. 92C
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RTI Act: Even if the information has no public interest, it has to be disclosed. Nothing is personal with regard to a public servant discharging his duties. Citizens have right know about his working, honesty, integrity and devotion to duty. Information as to leave availed of, or trips undertaken, cannot be denied on grounds of being personal information. The Income-tax Dept is directed to conduct periodic seminars to familiarize officials about the RTI Act. CPIO warned to be extremely careful & vigilant when answering RTI applications failing which penal action would be imposed
Radha Raman Tripathy vs. CPIO/ JCIT
(2017) TaxCorp(LJ) 13052 (CIC)
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(i) S. 153A/ 153C: When the Addl CIT records that he is granting “mechanical approval” u/s 153D to the draft assessment order for want of time to have meaningful discussion, the assessment order is bad in law and has to be annulled (ii) The Respondent is entitled to raise an objection under Rule 27 even in respect of fresh issues. It is not necessary that the ground should have been decided against the Respondent by the CIT(A)
AAA Paper Marketing Ltd vs. ACIT
(2017) TaxCorp(LJ) 13025 (ITAT-LUCKNOW) · Sections 153A, 153C
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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 - Salary accrued to non-resident seafarers for services rendered outside India on foreign ships shall not be included in the total income merely because such salary was credited in NRE account in India.
Shyamak Gopal Chattopadhyay. vs. DDIT (I.T.)
(2017) TaxCorp(LJ) 13007 (ITAT-KOLKATA)
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ITAT - As per Rule 8D, AO is duty bound to record satisfaction for rejecting assessee’s explanation of not incurring any expenditure for earning exempt income, but no specific format is provided under the Act for recording the satisfaction.
G. E. India Exports Pvt. Ltd. vs. DCIT
(2017) TaxCorp(LJ) 13006 (ITAT-BANGALORE) · Section. 14A
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ITAT - Assumption of jurisdiction u/s 147 to 151 - Since no proceedings were pending before AO when he issued the letter of enquiry, therefore enquiry letter was not valid in eyes of law - Assessee not required to respond to this invalid and non est letter of inquiry issued by the AO.
Tajendra Kumar Ghai C/o M/s. RRA Taxindia Versus ITO – 1 (5) Rudrapur
(2017) TaxCorp(LJ) 13005 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=56550&Category=ITAT&CategoryType=Zip
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ITAT - Cash payments made to West Bengal State Electricity Distribution Company Limited (WBSEDCL) is covered by the exception Rule 6DD(b) - No disallowance u/s. 40A(3).
Narayan Rice Mill Versus Commissioner of Income-tax
(2017) TaxCorp(LJ) 13004 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenDT.aspx?ID=56547&Category=ITAT&CategoryType=Zip
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ITAT - Cancellation of recovery of the interest - If the income does not result at all, there cannot be a tax, even though in accounts, an entry is made about the "hypothetical income" which does not materialise.
Dy. Commissioner of Income Tax, Circle 11 (1), CR Building, New Delhi Versus M/s Ferrous Infrastructure Pvt. Ltd.
(2017) TaxCorp(LJ) 13003 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=56546&Category=ITAT&CategoryType=Zip
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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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SC - As per Technical Collaboration Agreement, technical fees for plant set-up as capital expenditure.
Honda Siel Cars India Ltd. Vs. CIT
(2017) TaxCorp(LJ) 13001 (SC)
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Technical know-how: Entire law explained on whether expenditure incurred under a Technical Collaboration Agreement for setting up of new plant for the first time to manufacture cars constitutes capital or revenue expenditure
Honda Siel Cars India Ltd. vs. CIT
(2017) TaxCorp(LJ) 13000 (SC)
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S. 139AA (inserted by the Finance Act 2017) which mandates quoting of Aadhaar number with the PAN is constitutionally valid under Articles 14 and 19(1)(g). The proviso to s. 139AA(2) (which deems the PAN void ab initio if the Aadhaar number is not quoted) is also valid. However, as the challenge under Article 21 is pending before the Constitution Bench, a partial stay is granted. Those who are already enrolled under the Aadhaar scheme should comply with s. 139AA (2). Those who are not enrolled need not do so for the time being and their PAN will not be treated as invalid. The said proviso to s. 139AA(2) cannot be read retrospectively as it takes away vested rights. It will only have prospective effect
Binoy Visam vs. UOI
(2017) TaxCorp(LJ) 12999 (SC) · Section. 139AA
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S. 271(1)(c) penalty cannot be levied unless there is "evidence beyond doubt" that there was concealment of particulars of income or furnishing inaccurate particulars thereof on the part of the assessee. The fact that the assessee did not voluntarily furnish the return of income, and that the merits were decided against it, does not per se justify levy of penalty. The bonafides of the explanation of the assessee for not complying with the law have to be seen
DDIT. vs. Metapath Software International Ltd.
(2017) TaxCorp(LJ) 12998 (ITAT-DELHI) · Section. 271(1)(c)
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S. 50C: Failure by the AO to refer the valuation of the capital asset to a valuation officer instead of adopting the value taken by the stamp duty authorities is a fatal error and the assessment order has to be annulled. The matter cannot be set aside to the AO for a second chance. The power of the ITAT to set aside cannot be exercised so as to allow the AO to cover up the deficiencies in his case
ITO. vs. Aditya Narain Verma (HUF)
(2017) TaxCorp(LJ) 12997 (ITAT-DELHI) · Section. 50C
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SC - Sec. 139AA constitutionality valid. Enforces Sec. 139AA for those assessees who possess an Aadhaar card but grants partial relief to non-Aadhaar holders by staying the operation of the provision for them.
Binoy Viswam Vs. Union Of India & Ors.
(2017) TaxCorp(LJ) 12996 (SC) · Section. 139AA
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ITAT - Merely because the assessee concerned was not able to pay dues to the bank where the property was kept as collateral security it cannot be considered as distress sale. Lower authorities were justified in applying Sec. 50C of the Act.
Shri. Subash Subramanian Versus The Income Tax Officer, Non Corporate Ward 2 (4) Chennai
(2017) TaxCorp(LJ) 12962 (ITAT-CHENNAI) · http://taxcorp.in/FileOpenDT.aspx?ID=56359&Category=ITAT&CategoryType=Zip
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ITAT - TPO and the DRP were in error in holding that the nature of services rendered by ANPAP were in the nature of stewardship activity or shareholder activity. Charges paid by the Assessee to ANPAP are at Arm’s Length.
M/s. Akzo Nobel India Limited Versus D.C.I.T., Circle-10, Kolkata, And Vice-Versa
(2017) TaxCorp(LJ) 12961 (ITAT-KOLKATA) · http://taxcorp.in/FileOpenDT.aspx?ID=56361&Category=ITAT&CategoryType=Zip
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