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ITAT - Since the loan money was shown to have been utilized for acquisition of the asset therefore assessee cannot be allowed the repayment of loan as application of the income.
M/s. Shriram Scientific and Industrial Research Foundation Versus JDIT (Exemptions) , Range-II, New Delhi-II
(2016) TaxCorp(LJ) 11478 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=52043&Category=ITAT&CategoryType=Zip
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ITAT - payment by an Indian company engaged in software development to USA company for providing internet and bandwidth services and also for providing to be installed at the customers’ premises for accessing network connection, is not royalty income.
Quaolcomm India Private Limited vs. ADIT
(2016) TaxCorp(LJ) 11477 (ITAT-HYDERABAD)
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ITAT - Even in case of mercantile liability, Section 40(a)(ia) clearly mandates that the expenditure cannot be allowed in the absence of corresponding TDS payment.
Hardik Jignishbhai Desai vs. DCIT
(2016) TaxCorp(LJ) 11476 (ITAT-AHMEDABAD) · Section. 40(a)(ia)
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HC - Branch office a 100% SEZ unit engaged in software development is eligible for exemption u/s 10A on profits arising on transfer of software to its foreign head office.
DDIT. vs. Virage Logic International
(2016) TaxCorp(LJ) 11475 (HC-DELHI) · Section. 10A
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HC - No penalty u/s 271(1)(c) where non- reporting of capital gains was on account of bonafide belief that it was eligible for relief u/s 54G based on CA’s advice.
Pr. CIT. vs. Machintorg (India) Ltd.
(2016) TaxCorp(LJ) 11474 (HC-DELHI)
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Bogus share capital: Interplay between s. 56(2)(viib) and s. 68 explained. Amendment to s. 68 casting onus on assessee and requiring it to explain source of source of share subscription is clarificatory and retrospective. Law in Lovely Exports 299 ITR 268, Sophia Finance 205 ITR 98 etc does not apply as they are prior to the Money Laundering Act 2002
Royal Rich Developers Pvt. Ltd. vs. DCIT
(2016) TaxCorp(LJ) 11473 (ITAT-MUMBAI) · Sections. 56(2)(viib), 68
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S. 41(1): Amounts shown as liabilities in the Balance Sheet cannot be deemed to be cases of "cessation of liability" only because the liabilities are outstanding for several years. The AO has to establish with evidence that there has been a cessation of liability with regard to the outstanding creditors
ITO. vs. Vikram A. Pradhan
(2016) TaxCorp(LJ) 11472 (ITAT-MUMBAI) · Section. 41(1)
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ITAT - AO is an Investigation Officer u/s 68 and if the assessee files some documents, it is within the investigation power of the AO to raise questions on those documents. It cannot be held to be amounting to exploring the source of source.
The ACIT, Circle-4, Ahmedabad Versus M/s. Greendiam Exim Ltd
(2016) TaxCorp(LJ) 11471 (ITAT-AHMEDABAD) · http://taxcorp.in/FileOpenDT.aspx?ID=52037&Category=ITAT&CategoryType=Zip
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ITAT - Additional consideration for the delay in the open offer as per the SEBI Regulations will be treated as part of capital gain and not the income from interest.
CitiGroup Global Markets Mauritius Private Limited Versus ADIT – (Intl. Taxation) , Range-1 (2), Mumbai
(2016) TaxCorp(LJ) 11470 (ITAT-MUMBAI) · http://taxcorp.in/FileOpenDT.aspx?ID=52038&Category=ITAT&CategoryType=Zip
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ITAT - Addition made on the basis of the statement collected at the back of the assessee and the right of cross examination was not provided to him, hence, delete the addition. Addition on account of commission out of accommodation business activities deleted
Atul Kumar Khandelwal Versus DCIT, New Delhi
(2016) TaxCorp(LJ) 11469 (ITAT-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=52018&Category=ITAT&CategoryType=Zip
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HC - Transfer of computer software by the Indian branch to the head office can be said to be ‘sale’ to the head office out of India. Entitled to claim benefit of Section 10A.
Deputy Director Of Income Tax Versus Virage Logic International
(2016) TaxCorp(LJ) 11467 (HC-DELHI) · http://taxcorp.in/FileOpenDT.aspx?ID=66697&Category=Judgment&CategoryType=Zip
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HC - Charging of higher fees by an educational trust running a school as compared to other schools by itself, would not establish that the school was running for profit making. Allows exemption u/s 11.
Shree Kamdar Education Trust Vs. Income Tax Officer
(2016) TaxCorp(LJ) 11466 (HC-GUJARAT) · Section. 11
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SC - Review petition dismissd - Share capital received by assessee on account of share capital from various shareholders towards allotment of flats is not business income.
M/S G. S. Homes And Hotels Pvt Ltd. Vs. The Deputy Commissioner Of Income Tax
(2016) TaxCorp(LJ) 11465 (SC)
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S. 35(2AB): The AO is bound to grant deduction if the R&D facility is approved by the competent authority. He has no jurisdiction in sit in judgement over the approval. The fact that the competent authority did not file the report with the department as prescribed is a technical lapse for which the assessee is not liable.
Efftronics Systems Pvt. Ltd vs. ACIT
(2016) TaxCorp(LJ) 11464 (ITAT-VISAKHAPATNAM) · Section 35(2AB)
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The pre-amended Explanation 5A to s. 271(1)(c) applies to non-filer assessees where a ROI is not filed before search and undisclosed income is not offered in the ROI. The amended provision of Explanation 5A, which is applicable to both filers and non-filers of returns, does not apply to searches conducted pre 13.08.2009. Penalty levied u/s 271(1)(c) to cases which are covered by s. 271AAA is void
Nukala Ramakrishna Eluru vs. DCIT
(2016) TaxCorp(LJ) 11463 (ITAT-VISAKHAPATNAM) · Section 271(1)(c)
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ITAT - Payment to UK parent for providing management services to advise and guidance on key management decisions is not FTS under Article 13 of India-UK DTAA in absence of ‘make available’.
Xansa India Ltd. Vs. DCIT
(2016) TaxCorp(LJ) 11462 (ITAT-DELHI) · Sections. 40(a)(i), 195
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HC - Writ Allowed - Assessment order and demand notice passed by ITO (Exemptions), quashed being absent in violation of the CBDT Notification No.52/14 and absent jurisdiction.
Gurukul vs. CIT
(2016) TaxCorp(LJ) 11461 (HC-PATNA)
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HC - Writ allowed - Threat by AO to initiate penalty u/s 271F and prosecution u/s 276CC on return-filing failure is not valid.
Vellore District Consumer Co-operative Wholesale Stores Ltd. vs. ITO
(2016) TaxCorp(LJ) 11460 (HC-MADRAS)
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SC - Income addition upheld for creation of accounts by way of ‘name-lending’.
CIT. vs. Karnataka Planters Coffee Curing Work(P) Ltd.
(2016) TaxCorp(LJ) 11459 (SC)
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HC - If the assessee has encountered certain hardhip or difficulty in uploading his return, as alleged by him due to technical snags in the website of Income Tax department due to last hour of rush of filing of returns, the delay deserves to be condoned.
CBDT and others vs. Regen Infrastructure & Services Pvt. Ltd.
(2016) TaxCorp(LJ) 11458 (HC-MADRAS) · Section. 119(2)
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