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Bogus capital gains from penny stocks: The fact that the Stock Exchanges disclaimed the transaction is irrelevant because purchase and sale of shares outside the floor of Stock Exchange is not an unlawful activity. Off-market transactions are not illegal. It is always possible for the parties to enter into transactions even without the help of brokers. Therefore, it is not possible to hold that the transactions reported by the assessee were sham or bogus
ACIT vs. Vineet Sureshchandra Agarwal
(2017) TaxCorp(LJ) 11930 (ITAT-AHMEDABAD)
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S. 9(1)(vi)/ 9(1)(vii): Important law explained on whether payment for use of equipment can be assessed as "royalty" and whether payment for rendering of services can be assessed as "fees for technical services" in the context of s. 9(1)(vi) and 9(1)(vii) and Article 12 of the India-Canada DTAA
DCIT vs. Bombardier Transportation India Pvt. Ltd
(2017) TaxCorp(LJ) 11929 (ITAT-AHMEDABAD) · Section 9(1)(vi), 9(1)(vii)
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Bogus capital gains from penny stocks: Long-term capital gains claimed exempt u/s 10(38) cannot be treated as bogus unexplained income if the paper work is in order. The fact that the Company whose shares were sold has violated SEBI norms and is not traceable does not mean that the assessee is at fault
Surya Prakash Toshniwal HUF vs. ITO
(2017) TaxCorp(LJ) 11907 (ITAT-KOLKATA) · Section 10(38)
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S. 9(1)(vii)/ Article 12: There is a difference between a 'contract of work' and a ‘contract of service’. In a 'contract of work', the activity is predominantly physical while in a 'contract of service', the dominant feature of the activity is intellectual. Fees paid with respect to a ‘contract of work’ does not constitute "fees for technical services" and consequently the assessee is not liable to deduct TDS u/s 195
ITO vs. Emami Paper Mills Ltd
(2017) TaxCorp(LJ) 11906 (ITAT-KOLKATA) · Section 9(1)(vii)
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ITAT - Assessee claimed deduction which they were not entitled, which fact came to the notice of the department only in 2010-11, this is a valid reason for reopening the assessment.
M/s. PALAKKAD DIST. CO-OPERATIVE BANK LTD. Versus ADDITIONAL COMMISSIONER OF INCOME TAX,P, ASSISTANT COMMISSIONER OF INCOME TAX
(2016) TaxCorp(LJ) 11887 (HC-KERALA) · http://taxcorp.in/FileOpenDT.aspx?ID=68215&Category=Judgment&CategoryType=Zip
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HC - Amount paid towards Technical know-how and Royalty to foreign company are in respect of a benefit which is not only of enduring nature but for the purpose of acquiring of an asset and hence a 'Capital Expenditure' and not 'Revenue Expenditure'.
Commissioner of Income Tax, Ghaziabad Versus M/s Honda Siel Cars India Ltd.
(2016) TaxCorp(LJ) 11886 (HC-ALLAHABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=68217&Category=Judgment&CategoryType=Zip
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ITAT - Income on account of licence fees and amenities provided to tenant will be business income and not income from house property income as it is a case of exploiting the asset commercially and not the case of mere letting it out.
DCIT – 1 (2) Mumbai Versus M/s. Nautilus Trading & Leasing Limited
(2017) TaxCorp(LJ) 11885 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54059&Category=ITAT&CategoryType=Zip
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ITAT - Compensation/settlement amount paid to the erstwhile MD is revenue expenditure as it is common practice in case of termination of employment to put forth the condition not to engage in act of competition for a year. This cannot be considered to treat the payment as capital in nature.
M/s Pfeiffer Vacuum India (P) Ltd. (Merged with Pfeiffer Vacuum India (P) Ltd.) Versus Dy. Commissioner of Income- tax, Circle – 16 (3), Hyderabad
(2017) TaxCorp(LJ) 11884 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=54060&Category=ITAT&CategoryType=Zip
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SC - SLP Dismissed - HC had held that sec penalty u/s 271D applicable for accepting cash-loan from director in violation of sec. 269SS.
Chandra Cement Ltd. vs. CIT
(2017) TaxCorp(LJ) 11883 (SC) · Section. 271D
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ITAT - Commission paid to non-resident export commission agents by an Indian company engaged in manufacturing steel pipes not taxable in India and Sec 195 TDS not applicable.
Welspun Corporation Limited Vs. DCIT
(2017) TaxCorp(LJ) 11882 (ITAT-AHMEDABAD)
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ITAT - Payment towards IT support services by an Indian company to its AE in Canada is not royalty under u/s 9(1)(vi) and also not taxable under Article 12(3) of the India- Canada DTAA.
DCIT (International Taxation) vs. Bombardier Transportation India Pvt. Ltd.
(2017) TaxCorp(LJ) 11881 (ITAT-AHMEDABAD)
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ITAT - Foreign tax credit allowable in respect of taxes withheld in Singapore and Indonesia on receipt from software license sale and AMC on 'income' and not 'gross-receipts'.
Elitecore Technologies Private Limited vs. DCIT
(2017) TaxCorp(LJ) 11880 (ITAT-AHMEDABAD)
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ITAT -TDS u/s 194C and not u/s 194J applicable to supply and installation of HT and LT electrical installation equipments and services for effective and smooth working of the hospital, electrical installation and AMC thereof.
Income Tax Officer (TDS) Versus Mandke Foundation, (Kokilaben Dhirubhai Ambani Hospital)
(2017) TaxCorp(LJ) 11879 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54028&Category=ITAT&CategoryType=Zip
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ITAT - Deduction u/s 54 available where property sold was in the sole name of the assessee but the property purchased was in the joint names of the assessee and his wife as the consideration for acquisition of the new asset has flown from the assessee.
Shri Vishwanath Acharya Versus ACIT–11 (1), Mumbai and Vice-Versa
(2017) TaxCorp(LJ) 11878 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54031&Category=ITAT&CategoryType=Zip
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ITAT - Even where non-resident is not having PAN but the payment is covered u/s 115A(1)(b), special rate of TDS i.e. 11.33% was applicable and TDS @20% is not warranted.
Quick Flight Limited Versus ITO (International Taxation), Baroda
(2017) TaxCorp(LJ) 11877 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=54033&Category=ITAT&CategoryType=Zip
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ITAT - Activities of the assessee are not for the “advancement of any other object of general public utility” and hence is not for charitable purposes in view of the second limb of the first proviso to section 2(15).
Andhra Pradesh State Seed Certification Agency, Hyderabad Versus Director of Income Tax (Exemptions) Hyderabad
(2017) TaxCorp(LJ) 11876 (ITAT-HYDERABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=54007&Category=ITAT&CategoryType=Zip
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ITAT - Amount of disallowance under section 14A should be added back to book profits u/s 115JB but the amount of addition should be restricted to the actual disallowance made under section 14A.
Karnataka State Industrial Infrastructure Development Corporation Ltd. Versus Deputy Commissioner of Income-tax, Circle - 11 (5), Bengaluru
(2017) TaxCorp(LJ) 11875 (ITAT-BANGALORE) · http://taxcorp.in/FileOpenDT.aspx?ID=53978&Category=ITAT&CategoryType=Zip
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ITAT - No addition for notional interest as charging or not charging of interest is a discretion of an assessee-especially when the advance is made out of interest free funds.
DCIT, 5 (1) (2), Mumbai Versus M/s. ETHL Global Capital Ltd.
(2017) TaxCorp(LJ) 11874 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54038&Category=ITAT&CategoryType=Zip
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ITAT - Where AO failed to come to finding whether the assessee has carried out repetitive transactions of same share, same would be treated as capital gains.
ITO 25 (2) (4), Mumbai Versus Renu Gupta
(2017) TaxCorp(LJ) 11873 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54040&Category=ITAT&CategoryType=Zip
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ITAT - Revision u/s 263 justified where there was a mistake in the computation of income and assessee had also admitted that related documents were not filed during the assessment proceedings.
Persil Embroideries Pvt. Ltd. Versus Principal Commissioner of Income-tax-7, Mumbai
(2017) TaxCorp(LJ) 11872 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=54041&Category=ITAT&CategoryType=Zip
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