Direct Tax landmark rulings

1. Delhi High Court · 03 Mar 2016
   HC - Despite belated TDS-deposit, salary payment deduction to be allowed in expense-year u/s 40(a)(iii).

   ANZ Grindlays Bank vs. DCIT

   (2016) TaxCorp(LJ) 9982 (HC-DELHI) · Section. 40(a)(iii)

2. ITAT Delhi · 03 Mar 2016
   ITAT - TDS u/s 194J applicable on amount paid to TV channels by DTH/Cable operator for acquiring right to distribute contents.

   Dish TV India Ltd. vs. ACIT

   (2016) TaxCorp(LJ) 9981 (ITAT-DELHI) · Section. 194J

3. Supreme Court · 03 Mar 2016
   SC - Where there is no assessment order passed, there cannot be a notice for re-assessment inasmuch as the question of re-assessment arises only when there is an assessment in the first instance.

   Standard Chartered Finance Ltd. vs. CIT

   (2016) TaxCorp(LJ) 9980 (SC)

4. ITAT Bangalore · 02 Mar 2016
   ITAT - No TDS u/s 194J on amount paid to MD for granting right of first refusal in respect of future business initiatives.

   WiFi Networks Pvt. Ltd. vs. DCIT

   (2016) TaxCorp(LJ) 9979 (ITAT-BANGALORE)

5. Karnataka High Court · 02 Mar 2016
   S. 44AB/ 271B: Belief that a mutual association like a club is not liable for tax audit is a bona fide one and constitutes reasonable cause u/s 273B

   Koramangala Club vs. ITO

   (2016) TaxCorp(LJ) 9978 (HC-KARNATAKA) · Sections 44AB, 271B

6. Delhi High Court · 02 Mar 2016
   S. 40(a)(iii): Salaries paid to expatriate employees overseas on which tax was paid in accordance with CBDT Circular dated 685 dated 17/20.06.1994 and Circular 686 dated 12.8.94 is permissible as a deduction even though the tax is not paid within the time limit but is paid subsequently

   ANZ Grindlays Bank vs. DCIT

   (2016) TaxCorp(LJ) 9977 (HC-DELHI) · Section 40(a)(iii)

7. ITAT Mumbai · 01 Mar 2016
   ITAT - Purchase of “shrink-wrapped” accounting software embedded in CD-ROM from Singapore entity does not constitute ‘royalty’ under India-Singapore DTAA.

   Capgemini Business Services (India) Ltd. vs ACIT

   (2016) TaxCorp(LJ) 9976 (ITAT-MUMBAI)

8. P&H High Court · 28 Feb 2016
   S. 14A/ Rule 8D: The disallowance of expenditure cannot exceed the amount of tax-free dividend

   Pr. CIT vs. Empire Package Pvt. Limited

   (2016) TaxCorp(LJ) 9975 (HC-P&H) · Section 14A

9. ITAT Bangalore · 28 Feb 2016
   S. 206AA: S. 90(2) overrides s. 206AA and so the assessee is required to deduct TDS as per the DTAA and not as per s. 206AA. The issue is debatable and so cannot be rectified by the AO u/s 200A

   Wipro Ltd vs. ITO

   (2016) TaxCorp(LJ) 9974 (ITAT-BANGALORE) · Sections 206AA, 90(2)

10. Karnataka High Court · 26 Feb 2016
    HC - Sec 40(a)(iib) inserted vide Finance Act, 2013 disallowing privilege fee payment was not clarificatory in nature and hence not applicable retrospectively.

    Karnataka State Beverages Corporation Limited. Vs. The Commissioner of Income-Tax

    (2016) TaxCorp(LJ) 9973 (HC-KARNATAKA) · Section. 40(a)(iib)

11. ITAT Mumbai · 26 Feb 2016
    ITAT - No TDS u/s 195 on reimbursement of recruitment charges payment by assessee to its group companies based in US.

    ACIT. Vs. Lehman Brothers and Advisors

    (2016) TaxCorp(LJ) 9971 (ITAT-MUMBAI) · Section. 195

12. ITAT Ahmedabad · 26 Feb 2016
    ITAT - Sec 40A(2) inapplicable to directors’ foreign travel expenses as payment not to ‘specified persons’.

    Ideal Sheet Metal Stamping & Pressing Pvt. Ltd. vs. ACIT

    (2016) TaxCorp(LJ) 9970 (ITAT-AHMEDABAD) · Section. 40A(2)

13. ITAT Mumbai · 26 Feb 2016
    ITAT - An Israel company's project office in India to oversee implementation of project constitutes assessee’s PE in India. Revenue earned is taxable in India.

    Orpak Systems Ltd. vs. ADIT

    (2016) TaxCorp(LJ) 9969 (ITAT-MUMBAI)

14. ITAT Mumbai · 25 Feb 2016
    ITAT - Sec. 112 being beneficial in nature, LTCG should be worked out scrip-wise and tax should be charged without indexation or with indexation whichever is beneficial to assessee.

    Parle Pet Pvt. Ltd. vs. DCIT

    (2016) TaxCorp(LJ) 9968 (ITAT-MUMBAI) · Section. 112

15. ITAT Jaipur · 24 Feb 2016
    ITAT - Section 44AB not applicable to an individual engaged in the business of speculative transactions in commodities through NCDEX.

    Anju Haldia vs. ITO

    (2016) TaxCorp(LJ) 9967 (ITAT-JAIPUR) · Section. 44AB

16. Madras High Court · 25 Feb 2016
    HC - Sec 251 conferrs wide powers on appellate authorities while deciding an appeal. SCN issued by CIT(A) proposing income enhancement upheld.

    Megatrends Inc represented Vs. The Commissioner of Income Tax, The Assistant Commissoner of Income Tax

    (2016) TaxCorp(LJ) 9966 (HC-MADRAS)

17. Gujarat High Court · 24 Feb 2016
    HC - Levying interest u/s 234B directly in the notice of demand u/s 156, without mentioning about the charge in assessment order is valid.

    ACIT. vs. Norma Detergent Pvt Ltd.

    (2016) TaxCorp(LJ) 9965 (HC-GUJARAT) · Section. 234B

18. Bombay High Court · 24 Feb 2016
    HC - For purpose of Sec 74, deemed STCG u/s 50 continues to be long term capital gain. Set off against long term loss allowed.

    CIT. vs. Parrys(Eastern) Pvt. Ltd.

    (2016) TaxCorp(LJ) 9964 (HC-BOMBAY) · Section. 50

19. Bombay High Court · 24 Feb 2016
    HC - Without passing draft assessment order as mandated by DRP provisions u/s 144C(1), final assessment order is invalid.

    International Air Transport Association vs. DCIT

    (2016) TaxCorp(LJ) 9963 (HC-BOMBAY)

20. Bombay High Court · 23 Feb 2016
    S. 271(1)(c): Penalty is not leviable on income declared during survey and offered in return. Law laid down in Mak Data 358 ITR 593 (SC) is distinguishable on facts and not universally applicable. A mere change of head of income does not attract penalty

    CIT. vs. Hiralal Doshi

    (2016) TaxCorp(LJ) 9962 (HC-BOMBAY) · Section. 271(1)(c)

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